Monday, March 3, 2008

Bridging the Digital Divide - The Mobile ULC2 Alliance Solution

By Adi Gavish, Director of Business Development, Tjat

The GSM World organization is promoting "Universal Access" projects in developing countries. The goal is to ensure access for emerging markets to mobile technologies. One of the main efforts of the initiative is removal of cost barriers, exemplified by. The much celebrated "$20 phone", or to use the industry buzz word – the ULC (Ultra Low Cost Phone).

The problem to date with ULC initiatives has been the concentration on voice services only. 2G networks that are capable of some data access are deployed, with more and more 2.5G and 3G data networks becoming common. With no data capabilities in ULC devices targeted to the (majority) lower-end market, the current ULC devices are inadequate in fulfilling the stated goal of "Bridging the Digital Divide". Data Services are essential for ULC devices, leading to the ULC2 Alliance.

The Mobile ULC2 Alliance consists of Infineon Technologies, Jurong Technologies, TJAT Systems and Brightstar Corp. Infineon developed the technology platform, TJAT Systems enabled all mobile messaging and integrated services, and Jurong Technologies combined Infineon's technology platform with other systems to produce the Smart Entry Phone (SEP). Brightstar is the worldwide distributor of the new handset.

The Mobile ULC2 Alliance believes that the SEP will remove the affordability barrier, while incorporating high-end functions like email, localized services, and Instant Messaging. The ULC2 Alliance believes that the SEP offers both network operators and consumers in emerging markets a groundbreaking new development by combining exceptionally low operational costs with no requirement for additional infrastructure purchases.

By leveraging TJAT's unique platform of services and its worldwide deployment, the messaging services are tailored to maximize the benefits available to the targeted communities, while keeping device and operations costs to a minimum. The Tjat services have a surprisingly small foot print to minimize device resources, and do not require special data networks, and even 2G networks with data access are more than sufficient.

A study from 2005 has shown that an increase of only ten mobile phones per hundred people increases GDP growth by 0.6 percent, and these are the voice-only benefits! It is expected that the web based Instant Messaging and Email, together with innovative, localized, programs based on new data capabilities, will dramatically increase the social and economical development of the communities enjoying even modest penetration of the new ULC2 handsets and services.

Examples of the planned services based on the introduced messaging and localized services include:

- Propagation of agricultural information between communities.

- Introduce remote areas to E-Banking, extending bank accounts to new population sectors, and allow for "micro payments" for goods and agricultural needs.

- Job markets for day laborers and transportation bulletins.

- Local (up to the village level) user generated and managed content.

All this translated into actual participation in the data world, and not just consumption.

The ULC2 alliance is planning to distribute tens of millions of these new data enabled handsets in the next one to three years, introducing new social and economical benefits derived from being integrated into the world of digital communications, along with huge opportunities for mobile network operators, handset vendors and service providers tapping into new consumer segments when growth in the developed, saturated markets is slowing.