 Q&A: Magnus Mchunguzi
Director at Ericsson South Africa
Q: How does what Ericsson is doing in terms of networking, broadband and mobile connections benefit consumers?
A: We believe that communication and broadband can have a significant impact on societies as it helps boost human capital, improve healthcare and create new opportunities. By providing communication networks, telecom services and multimedia solutions, we believe we are changing the way people live and work, the way markets function, and the way societies operate. And this is not simply a pipedream! To this end, our key role in this evolution is to ensure Africa uses innovation to empower people, business and society.
Here’s a real example of how Ericsson is impacting consumers. A regional manager of one of Rwanda’s major banks has regained two working days a week thanks to mobile broadband. At the regional office, 14 employees share three PCs, one of which was connected to the internet via mobile broadband last year. The PCs are used to write reports on money transfers, loan repayments, etc., which are sent to the bank’s headquarters in Kigali. Before the internet, Robert used to save the reports on disc, walk to the business centre to print two hard copies and then make a six-hour round-trip to the headquarters twice a week by minibus. So in total, submitting the reports accounted for two full working days and travel costs of 8,000FRW per week. Thanks to e-mail, Robert can spend two more days per week working in the villages, giving information to clients, solving problems and ensuring people repay their loans. Delayed repayments have decreased from 10% to 4%, and the bank’s profit has increased by 30% in just 12 months. Clients also benefit from the improvement since it has become easier to get loans in time and the interest rate has decreased.
Q: What do you think is the biggest disadvantage of an always-on, always-connected world?
A: We believe the way of the future is broadband and mobility. In fact, most of Africa’s connectivity is and will continue to be via the mobile phone. Our market research shows that there is immense potential for the mobile phone as an internet access point and this evolution has contributed to personal efficiency to the level where young people now experience almost a 48-hour day if all the parallel activities are laid out in sequence. What’s more, with the increase in machine-to-machine communication, tangible benefits arising from internet access can be seen as these benefits apply across people, businesses and institutions, delivering substantial progress for the country as a whole. With the right vision, the benefits of an always-connected world are extensive. The biggest challenge is getting people and communities to fully understand the benefits and opportunities that an always-on world will provide.
Q: In Ericsson’s efforts to connect the next 50 billion people by 2020, how will the company make it more affordable for consumers?
A: It’s not a question of connecting 50 billion people by 2020, but rather 50 billion devices. There are many devices that could deliver better services to people if they were connected to mobile networks. Examples of this include utility meters, gaming consoles and traffic management services. These are a few examples to illustrate how we will get to 50 billion connected devices. Ericsson’s Consumer Lab has begun looking into what devices might soon be interconnected. It’s easy to imagine connecting consumer products such as your e-book reader, your portable music player and your game console, but what about the impact of machine-to-machine communications? Ericsson is looking at all the possibilities and what consumers might be willing to pay for, and as these connections become more widespread and demand increases, costs will decrease as speeds increase.
Q: In terms of a future where almost any electronic device will be connected to the internet, how do you think the world will change to incorporate this into everyday life?
A: The Life in 2020 project reflects Ericsson’s view of what the world of communications might look like in the future - we ask that you think with us and join the conversation. The change is coming and certainly the world and its people will change to incorporate these connections into everyday life. We need to get inspiration, from, and collaborate with, people outside our own business, with people that want to share and examine viable ways to shape the world. In doing so, a connected world will transform all sectors of life, providing benefits to health, education, businesses and our lifestyle.
Q: Explain what gains people in rural areas will have by being connected. How will being connected change their lives for the better?
A: According to McKinsey and Company, even a 10% increase in broadband penetration, can deliver a 0.1 to 1.4% boost in GDP. If mobile broadband in Africa reaches last year’s levels of fixed broadband penetration of Western Europe, i.e. 54%, it could add USD 300-420bn in GDP, equalling a total GDP increase of 0.8 to 1.2% in emerging markets. This would create millions of jobs across the continent. This, coupled with the fact that many of the fastest growing future markets are based in areas of the world suffering from high rates of poverty, points to a situation where mobile technology can play an important role in supporting the aims of the Millennium Development Goals.
Telecommunication addresses human needs and can support people's livelihoods, healthcare services, personal safety, access to a wide range of information from educational information through to warnings of natural disasters and relief, as well as bringing entertainment and personal interaction.
Being connected can change people’s lives and if you take the Millennium Villages project, some of the success stories that have been documented are remarkable and certainly point to the importance of connectivity to economic development and social upliftment. |
