Use of Mobile Phones by Microentrepreneurs in Kigali, Rwanda (The): Changes to Social and Business Networks

In October 2005, the Annenberg Research Network on International Communication (ARNIC) at the University of Southern California (USA) held a workshop - "Wireless Communication and Development: A Global Perspective" - as part of a multi-disciplinary effort to study the emergence of new communication infrastructures, examine the transformation of government policies and communication patterns, and analyse the social and economic consequences. Among the papers delivered at that event was this 24-page study, which seeks to assess trends in the way that microentrepreneurs - "a growing community of first-time telephone owners" - are using mobile telephones in Rwanda.

The study uses two analyses to contribute to theoretical discussions about the role of telecommunications in economic development, and the broader role of mobile information and communication technologies (ICTs). First, it examines the evolution of mobile ownership over time, tracking how a device first used by the elites for business purposes has found wider acceptance and a greater range of uses. Second, it explores how mobile use is associated with changes the social networks of microentrepreneurs by analysing patterns of calls with people who are new to the users' social networks. In the words of author Jonathan Donner, "The results of both analyses suggest that mobiles are allowing microentrepreneurs in the developing world - particularly those for whom the mobile is the first and only telephone - to develop new business contacts."

Donner begins by providing some data to indicate the extent of mobile penetration in Rwanda. For instance, the International Telecommunication Union (ITU) estimates that in 2003 there were 16 mobile users per 1000 people, roughly 134,000 subscribers. Since mobiles were introduced to Rwanda in 1998, their adoption has eclipsed that of landlines. There are only 23,000 landlines in the nation. Donner notes that, while calls are still expensive - with a local off-peak mobile-to-mobile call costing 125 Francs (about 25 cents) per minute - "mobile use is becoming a fixture of daily life is for a wide range of urban users, not just the elites."

Donner's analysis draws on two "frames" to understand ICTs: productivity
(the ability to do the same or similar things faster, more frequently, or at lower cost), and behavioural (and consequently structural/social) change, where changing patterns of ICT use are associated with transformations in the availability of information, contacts, customers, associates, and in the constitution of communities, networks, or organisations.

Using these frames, he draws on a December 2003 research project in which 6 tri-lingual Rwandan interviewers recruited microentrepreneurs in Kigali, Rwanda (those who had a mobile, were at least 18 years old, and owned a business with no more than 5 employees). The survey asked about 3 types of calls recorded on the mobiles' call logs: outgoing voice, incoming voice, and short message service (SMS).

The survey's findings reveal that the mobile phone has increased communication among Rwandan microentrepreneurs, particularly among those whose first and only phone is the mobile. Overall, respondents reported communication increases with roughly 40% of those individuals who appeared on their mobile phone call logs. These so-called "call alters" were most frequently categorised as friends (45%), followed by business contacts (32%) and family members (26%). Donner stresses that, "Though researchers (and journalists) interested in the economic impacts of the mobile may be tempted to ignore the personal calls, and though researchers (and journalists) concerned with the evolution of a mobile society may be tempted to focus on personal calls, each kind of call is important..."

In addition to finding that earlier adopters of the mobile have a higher proportion of business-related calls, Donner's research revealed that "the proportion of new entrants was highest (a predicted 38%) among the business-related call alters of those who own only a mobile phone [as opposed to those who also own a landline]." Donner explains that "For those users with easy access to landlines, the most important benefits of the mobile may be a mixture of mobility, constant availability, and display/status. Those whose first and only phone is the mobile may experience all these same benefits, but will also experience a dramatic increase in the ease and affordability of basic mediated communication. Even if the bulk of calls end up being with friends and family, it is difficult to underestimate the importance to an entrepreneur of simply having a reliable and affordable telephone connection, which is what the mobile finally brings."

In conclusion, Donner notes that "The call logs of the new mobile owners, with a high proportion of new business contacts, may provide evidence for businesses which are growing or changing more rapidly; the mobile enables this growth partially by enabling new contacts (an effect unique to the low-teledensity developing world), and partially by amplifying communication with repeat customers (an effect shared in the low and high-teledensity regions of the world)."

Click here for the full paper in PDF format.

Click here for the full paper in PowerPoint format.