Mobile Powering Increasing Number of Energy, Water and Sanitation
Projects
The GSMA
Mobile for Development Utilities programme (M4D Utilities) released
a new report outlining progress in using mobile technology to deliver
energy, water and sanitation services to underserved communities. The
latest M4D Utilities annual report, ‘Unlocking access to utility
services: The transformational value of mobile’, was published today
at the GSMA Mobile 360 – Africa event being held in Dar es Salaam,
Tanzania, 26 – 28 July.
“Billions of people in emerging markets still lack access to essential
utility services such as energy, clean drinking water and basic
sanitation,” said Mats Granryd, GSMA Director General. “A new wave of
innovative mobile technology can improve and increase access to these
basic utility services, while at the same time stimulating markets,
empowering small businesses and even saving lives. The mobile industry
is dedicated to creating commercially sustainable partnerships that can
harness these emerging technologies.”
Mobile technology can unlock new service models, such as mobile money
for affordable and remote bill payments, mobile services to communicate
with customers, and machine-to-machine connectivity to remotely monitor
distributed services. These innovations in service delivery make
essential utility services accessible, affordable and reliable for
underserved communities.
The GSMA M4D Utilities programme, launched in 2013 with the support of
the UK Department for International Development (DFID), has awarded
grants to 34 organisations that offer mobile-enabled utility services,
which have directly benefited almost 2 million people. The innovative
trials funded to date have resulted in grantees raising an additional
£40.5 million in private-sector investments, underlining the commercial
viability of the projects. The programme has funded projects and studies
in 24 global markets in total, the majority (15) in Africa. This work
makes strong contributions to GSMA and the mobile industry’s support for
the 17 UN Sustainable Development Goals1, addressing Goal #6
(ensuring access to water and sanitation) and Goal #7 (ensuring
affordable energy).
The new report examines the mobile-enabled utility sector in depth and
identifies the following trends:
Mobile is unlocking rapid growth of PAYG utility services
Approximately 650,000 mobile-connected pay-as-you-go (PAYG) solar home
systems have been delivered worldwide, with over 30 companies operating
in at least 32 countries. Mobile channels are enabling this and other
prepaid/PAYG models to flourish, attracting significant investments in
the energy sector and enabling business models to emerge in the water
sector.
The Internet of Things is transforming utility models
The Internet of Things is already key to some off-grid energy models and
connected infrastructure is set to change the landscape for centralised
and decentralised utility systems, with several pilots already underway.
Challenges remain in powering telecom towers as an anchor business
for community power
Off-grid energy companies, particularly micro-grid providers, may seek
to anchor their businesses to powering telecom towers—a viable way to
power surrounding businesses and communities. “Community Power from
Mobile” models are seeing traction in some markets, but aligning the
incentives of all parties remains a challenge.
Mobile-enabled water services are advancing while sanitation
models are still nascent
Water and sanitation businesses have grown less rapidly than those in
the energy sector, but there are signs that information about service
delivery and new payment mechanisms are driving new business models and
government partnerships.
Partnerships with MNOs are growing
Many service providers have partnered to leverage MNO assets such as
mobile payment platforms or sales outlets to enhance their efficiency,
extend their reach and offer new services. Via these partnerships, MNOs
benefit from increasing uptake of mobile services and improved brand
perception. Furthermore, with the growing appreciation of the
opportunity, some MNOs are taking the lead in utility services.
Investment in PAYG energy is accelerating
The market opportunity for energy, especially PAYG energy, has attracted
the attention of investors with nearly $295 million awarded to PAYG
energy companies so far, mainly in Africa. However, levels of private
capital into the water and sanitation sectors have been weaker,
highlighting the continued critical role of grants in funding innovative
business models, where the risk of investing in early stage enterprises
remains high.
The GSMA M4D Utilities programme’s annual report, ‘Unlocking access
to utility services: The transformational value of mobile’, is
available to download at: http://www.gsma.com/mobilefordevelopment/programme/m4dutilities/unlocking-access-utility-services-transformational-value-mobile
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About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with almost 300 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces industry-leading
events such as Mobile World Congress, Mobile World Congress Shanghai and
the Mobile 360 Series conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter: @GSMA.
1 In September 2015, the UN introduced a set of 17
Sustainable Development Goals (SDGs) as part of the 2030 Agenda for
Sustainable Development. The 17-point plan aims to end poverty, combat
climate change and fight injustice and inequality. The GSMA is
supporting the SDGs as part of its #betterfuture campaign. http://www.gsma.com/betterfuture/
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