Perceived Impacts of Access to Telecom at the Bottom of the Pyramid

Abstract

Much has been said of the benefits of access to telecommunication especially at the ‘Bottom of the Pyramid’. The economic as well as social benefits from such access can, in theory allow people to improve their life conditions, and also contribute more widely to development. Many in the ‘ICT for development’ forum specifically highlight the benefits that telecommunication, the Internet and other information and communication technologies (ICTs) can have on income levels at the BOP. A number of studies have attempted to demonstrate the impacts of access on income at the macro-level and by using anecdotal evidence. However supporting statistical evidence for these arguments at the household level is limited at best.This paper looks at the perceived impacts of access to telecom services at a household level at the ‘Bottom of the Pyramid’ (BOP) in India, Pakistan, Philippines, Sri Lanka and Thailand using a large and representative sample. It looks, inter alia, at the impact (positive or negative) of access in terms of the potential to increase income generation or save on expenditure.The findings reveal that while a host of benefits are seen to be availed of, telephone owners do not perceive the economic benefits of telecom access to be as high as some previous studies seem to suggest. The paper does not argue that such benefits are nonexistent, but that users do not perceive the benefits as directly originating from access to telecom services. Reasons for this are discussed.