Business model for a world-wide social problem

Affordable mobile Internet is out of reach for citizens of many developing countries. As a percentage of Gross National Income (GNI) per capital pre or postpaid mobile Internet costs on average are larger than 10% of GNI per capita.

These numbers can reach much higher levels for poor citizens, living on $2 or less per day. At the same time mobile Internet is becoming more and more important in daily life and a key driver in upward mobility. In fact, there is a correlation between GDP and mobile Internet penetration as shown below.

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Figure 1:
Mobile-broadband prices as a percentage of GNI p.c., world and by level of development, 2012

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Figure 2:
Correlation between GDP and mobile internet penetration

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Figure 3:
Mobile-broadband and mobile-cellular prices as a percentage of GNI p.c.

As the spread of mobile devices is set to increase, the mobile phone is the tool of choice to aid the spread of access to the Internet.

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Figure 4:
Smartphone, mobile PC‘s, tablets and mobile routers with cellular connections

Falling device costs, furthermore, are driving increased smartphone adoption, with the sub $100 device on the horizon. In fact the mobile phone is quickly becoming the device of choice for accessing the Internet.

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Figure 5:
Device costs and share of total shipments

As a result the high costs of mobile Internet data are creating a need for alternative solutions for accessing the Internet.

Of course, Wi-Fi hotspots play a critical role for Internet access. However, coverage is limited and often contained to certain venues. In addition, many hotspot providers require expensive memberships.

With ISP-in-the-Box, we are addressing this need with flexible user generated hotspots that work well within the local ecosystem.

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