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Orange You Glad You Have 3G?

3G is a game changer.

As I mentioned in my last post, new technologies are being introduced primarily by the mobile service providers.  And for as much as I’m developing bits and pieces of software, my research is to introduce these technologies to the healthcare service providers (HSPs), to educate them on their use, and to study how they are assimilated.

Brief aside: For you students out there, what makes this a vaguely experimental context is that I’ve manipulated the context by forcing the introduction of computers, Internet, and Internet-enabled mobile phones, so I can ask very specific questions.  It’s only vaguely experimental because there’s all sorts of exogenous variables that I can’t control and, well I only have 8 subjects that are ultimately wildly different from one another.   All the statistical data I presented in my last post was from a survey of 59 health facilities, so that’s slightly different… but also to be discussed.

Okay, now this is long overdue, since MTN changed their GPRS settings at least 6 months ago.  But this week and next I’m setting up my 8 facilities with mobile Internet, so yesterday I went to Warid, MTN, Orange, and Zain and purchased Internet plans from each of them.  (UTL has CDMA and DSL broadband services, so they don’t offer GPRS services by monthly subscription, although they do have 3G equipment installed on their masts in Mbarara. We don’t know what their deal is.) Here’s a run down of all the prices:

The prices listed are in Uganda Shillings (conversion varies from day to day, I think it is actually about 1950 UGX to USD, but I generally use 2000 as my conversion rate for this blog, for round numbers, and so I don’t have to get out a calculator.)  For Orange and MTN, they offer discounted rates if you subscribe for multiple months. You can view Orange’s price list and coverage area online, and MTN’s price list as well.  Warid calls their plan Smartlink.  A primary thing to note is that not only is Orange half the price of the others, but Orange has 3G coverage in many of the major towns throughout Uganda, including Mbarara.  Practically speaking, this means I can watch live streaming video on the BBC News website using my Orange modem, and use skype again. Yikes.  My one modem is faster than the entire Mbarara University VSAT connection.  At the same time… I took the modem to Kaberebere yesterday, about half an hour away to a health facility, where only EDGE coverage was available, and I was only getting 4Kbps instead of 100Kbps, and when I took it to Kanoni, it didn’t work at all, so it really depends on where you are.

I spent yesterday morning purchasing mostly just the SIM cards from each of the providers – which I get away with because I’ve previously purchased modems from them and they all know me.  Usually you’ll have to argue with them if you try to purchase a monthly subscription without a modem, and prove that you have a phone that’s capable of handling it.  They just don’t want to deal with third party modems.  Don’t tell them that you have one if you do.

For each one, if you know what you are doing the APN is listed above, and the username and password is blank. IP address and DNS settings are automatic, and there are no proxy settings.

With Warid, there’s a trick – there’s a current promotion, in which for all the airtime you load, you get bonus airtime, which can be used for calling, but not for things like Pakalast or Internet.  So I loaded my personal phone with the airtime for the Internet and then transferred the airtime to the Internet SIM.

You don’t have to go to a Warid office to activate Internet on your Warid line.  Just send an SMS with the words data 85 to 158. Warid will deduct 85,000 from your account, and you will get 30 days of Internet.  Make sure you have 85,000 UGX already loaded on your phone.   By my experience I usually just go to the customer care office because no one but them actually sells that much Warid airtime… You can also send the words data 5 to 158, and you will get one day of Internet instead for 5,000 UGX.  I was told also that you can check your SIM card: if you have a 32k SIM card rather than a 64k SIM card, you may have some difficulties with Internet, and you should get your card replaced.  I have, however, never had a problem with using a 32k SIM card on a pay-per-kb basis.

For MTN, if you already have a line, and you don’t have Internet, you can call customer care on 123 and tell them you want Internet to be enabled on your phone.  If you already have 90,000UGX on your phone, then you can ask them to deduct that from your balance and then they can subscribe you.  Or you can just enable Internet and start using it at the pay-per-kb rate.

For Zain, once you first connect to the access point, you will need to activate a plan before using the Internet.  If you go to the store, then they will do this for you.  Now, first, I will mention that yesterday and today, Zain has been very very flaky – the coverage has been okay (totally down in Ruharo) but the AP has been down more often than up.   However, once you are able to connect you need to use a web browser to connect to http://www.zain.com.  You will then be redirected to a page that will invite you to choose between three Zain plans, Zain Access, Zain 1GB and Zain True Unlimited.  Zain Access is the pay-per-kb plan, Zain 1GB is the monthly plan for 90,000UGX per month, and True Unlimited is another monthly plan with no bandwidth cap, at a price I don’t remember.  Click on the link corresponding to the plan you want and it will display the name of the plan, its validity, and the price.  Then click on the subscribe link.  From there it should take you back to the Zain page and you should be ready to go and use any mobile web application on your phone.  Note – if you select Zain Access, you won’t be able to switch to Zain 1GB for at least one month on that same SIM card without a LOT of hassle, so make sure you know which plan you want to be on.  Or just get two SIM cards.

Orange offers 1GB, 3GB, and 10GB plans, both with and without their modems.  If you choose not to purchase their modem (150,000 UGX) then you have to subscribe for a minimum of 3 months. I tried to purchase one instance of this plan yesterday and was told that they were sold out of modem-less Internet SIMs and would have to return the following week, so clearly modem sales are a priority.  And iPhone sales. At 3G speeds, 1GB gets used up really really quickly.  3GB is probably reasonable 10GB is pretty expensive…

If you are using your mobile phone, most networks will try to configure your phone over the air (OTA).  I haven’t had a lot of success with the OTA configurations on my Nokia, and none with the Palm phones. But whatever.

If you purchase a modem from one of these providers, you’ll find that the modems from MTN, Warid, and probably Zain (they have a new modem now that I haven’t tried) all include OSX-compatable software.  I don’t use it.  The Orange modem doesn’t come with software, but is made by the same manufacturer, a Taiwanese company called Huawei.  Basically, I go into my Network Preferences, select the “HUAWEI Mobile” device, and add a new configuration.  From there I click the “Advanced” Button, and the Modem window displays.  For Vendor, select “Generic”, for Model, select “GPRS (GSM/3G)”, and enter the APN as above.  All other settings under advanced can be left as default.  If you have any proxy settings, you might want to uncheck them.  Click Ok to save your advanced settings, and then enter *99# as the telephone number. Click Apply.  Then Click Connect.

On a Mac you can also share your Internet connection with other WiFi-enabled people in the room.  Once you are connected, click “Show All”, then double-click on “Sharing”.  If you click on the words “Internet Sharing” you will see options for “Share your connection from:” and “To computers using.” Select the appropriate options (i.e.  Huawei Mobile and AirPort respectively) and click on the checkbox next to Internet sharing.  If you are successful it should  1) turn on your airport if it is not already on 2) ask you to start Internet sharing  3) turn your little wifi icon into an up arrow.

Of course, now having one of each network (except UTL) and being able to test them side by side in multiple locations I’m learning their differences.  I’ve extolled Warid and Zain before as having better performance, probably because their network isn’t glutted by lots and lots of users.  However – now the situation is different.  Warid has a lot more users, and it seems that I can barely get the modem to connect.  Zain is just having technical difficulties right now – I’m not sure if that is temporal or endemic.  After my previous post, I discovered that both Warid and Zain are much better in Kampala.  But from my perspective – it doesn’t matter – it’s much more important to ICTD to know how all of these networks are performing in the villages and towns outside of Kampala, for rural health centers where our potential users are, where the so-called bottom billion are receiving health care (or not receiving health care, as the case may be).

I’ve been putting up coverage maps for the past year, claiming that wherever there is mobile coverage there is GPRS coverage.  This is only partially true.  I just went to Kanoni on Monday and found that I couldn’t get any of my phones to connect to the Internet successfully – there was extremely weak phone signal, and no GPRS coverage.  I even got the Orange software to connect.  To no avail. (it connected on windows, but not on OSX, or on my phones) We suspect, it might work on Zain, but I didn’t happen to have a Zain card on me… and I’m worried, given the quality of the Zain network here right now.

So there’s theory and reality.  Orange makes a claim “All areas covered by the Orange network have EDGE available with speeds of up to 236kbps.” And yet in Kanoni we had 2-3 bars of reception, with no Internet at all.  I travelled to Ibanda with the doctor finally, and we uploaded his attachment at a whopping 1-2kbps.  Yes, we were connected using EDGE, but it was a slow and painful (dare I say dull?) EDGE.

And yet it is the best we have.  The best I’ve seen Warid connect with out here is GPRS. MTN connects in general using EDGE, but always more slowly than Orange, unless we’re out of an Orange coverage area (e.g. in Ruharo). MTN’s fallback in rural areas is GPRS, Orange’s fallback in rural areas is EDGE.  Much of Isingiro, a district bordering Tanzania, the location of the Uganda UNDP Millenium Village Project, has very little Orange/Warid/MTN coverage, and is only accessible by Zain. In those locations, Zain is the only recourse – and 3G is available (or so it is rumored).

In my office, Orange is faster (and cheaper) than our VSAT connection, and doesn’t go out when there are power cuts.   We used it to download all of the Windows updates for the six deployed laptops in my research study, with little effect on the connection performance. Useful. And I can skype again, not that I have the time these days… =)

I am deploying these modems according to which network works the best for the various providers in their facilities.  Each of them will get a subscription for one month, after which they are free to continue subscribing on their own, or to return the modem to me.  After the second month, they will have to arrange to purchase the modem from me or from the appropriate mobile phone company.  They also are equipped with Internet enabled mobile phones, and are keeping logs of their usage and spending.  Hopefully by the end of two months they can make an informed decision as to whether they would prefer to use Internet on their phones (cheaper but limited) on subscribe to Internet on laptops (expensive but more flexible).

I know it is a little weird to be working in development but to still be telling people in Africa to spend money. But I’m also perfectly fine with any decision, whether they choose to forego the phones and laptops altogether, or to spend lots and lots of money for everything.  I just want to learn their preferences, and why they make these choices, and how what they learn changes their choices and how they communicate.

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Busha! Free just got more expensive…

I’ve been looking at information technologies and how they are changing here in Southwest Uganda, as well as how people are assimilating these changes.  Not surprisingly, a lot of these changes are promoted through the marketing campaigns of the mobile service providers.

The most popular campaign over the past year is Warid’s Pakalast promotion, in which they offer 24 hours of “FREE CALLS” for 1000UGX (~$0.50 USD). Based on my surveys so far, people in charge of the private health facilities in my study spend a little more than 20,000 UGX (min 1,000 UGX, max 80,000 UGX) per week on airtime.   So, 7,000 per week for unlimited calling has the potential to change calling and mobile usage patterns, to change how people conduct business.

The impact is clear.  Where MTN has been the dominant provider by far in the past, my survey has shown that 47.5% of my survey respondents also own Warid lines.

The graph above depicts three columns.  The first column which mobile networks are used by each of the health service providers (HSPs) as their primary phone line.  The second indicates the distribution of mobile networks used for the secondary phone line (often swapped into the phone on demand, if the HSP only owns one phone). The final column indicates total ownership of phone lines, since many HSPs own more than two phone lines.

Most of my survey respondents own one (59.3%) or two (28.3%) mobile phones. On average each subject carries 1.93 SIM cards (i.e. phone lines) and 1.49 mobile phones.

People love this campaign.  And the other providers have scrambled to copy it, with Orange offering “free calls this festive season”. Zain’s February promotion is seasonally appropriate: “Share UNLIMITED LOVE this Valentines!”, but costs 2000UGX and is valid only from 6am to 6pm.  We all can only surmise that Warid is bleeding profits in order to increase their customer base…. with some success. It’s not uncommon to hear Ugandans say “Pakalast, pakalast” just for the sake of saying the word.  While “busha” means “free” in Ruyankole, “Pakalast” doesn’t really have any meaning – it’s just a made up word that makes us think of something that lasts.

In any case, I’ll fully admit I’ve been taking advantage of Pakalast to talk to my fiance when he’s been out in the field.  When a 10 minute conversation can cost 1000UGX, it’s pretty amazing to be able to talk for an hour and only pay 1000UGX. But it’s not without its hiccups.  Often we’ll activate the service (send an SMS with the word “paka” to 149) and it won’t actually start working until 30 min, or sometimes even 3-4 hours later.  Sometimes it won’t even work at all.  The notification messages are garbled. And yet, I’ve never heard a complaint about this from anyone.  TIA. This Is Africa.

But speaking of bleeding, on January 26th, I received a message from Warid: “Now send PAKA to 149 to get 24 hrs of pakalast at Ush 1,500. To get 4 days at Ush 4,500 send PAKA 3 to 149. For help dial 100.”

The price was increased by 500 to 1,500 per day.  Okay so now – for 7 days of pakalast, if you don’t plan ahead is 10,500 (~5.25USD), or if you do plan ahead you can pay for 5 days at once, and get 2 days for free at 7,500 (~3.75USD).  Now, bear in mind, that this expense is only useful for calling people on Warid, and by my estimates, at least 50% of users are not on Warid, and for those that are on Warid, their Warid lines are not active most of the time.  So this uses up 50% of their weekly average budget for airtime.  This will either 1) force everyone to switch to Warid, or 2) make pakalast too expensive…

So far it seems like people are still using Pakalast.  The alternative: is too expensive to consider.  It almost costs more to call another mobile in Uganda than it costs for me to call someone in the States.  And yet – I find that now I am not using Pakalast anymore.  Most of the people I’m calling are on MTN, and if I’m only doing one call in a day to Warid, there’s just no value in activating Pakalast.  It’s easier to just keep my call short.  Perhaps that’s good for Warid..

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Entrepreneurship in Uganda

I’ve always thought that Africa was full of entrepreneurs – thousands of people eking out a living in container stores and markets selling goods a minimal profit, so they can support their families, send their kids to school, and, in general, survive.

Now, there’s clearly a difference between the startups of Silicon Valley that get venture capital and make millions, and the small business owners that run grocery stores or laundromats, and street hawkers that sell chewing gum from baskets on top of their heads. Profit margins are one.  But everyone has to start somewhere, and not everyone has the same connections; certainly environment and geography plays a large role in the probable capacity of an individual to aspire.

So what does it take to start a formal business in Uganda? To be a small business owner?  I’ve been encouraging some of my students along these lines, and thinking about the “Coded In Country” concept.  One thing that plays a large role in the ability to build local capacity is the country’s business environment; how hard is it to start and run a company in Uganda?

After a bit of word-of-mouth consulting, and talking to some small business owners here, I turned to google, and found the Doing Business Project, which provides indicators on 10 topics in 183 economies.  While the data itself is also very useful, from a very practical standpoint the fact that they’ve documented all of the (18) steps for starting a business in Uganda, and put them on the web is totally amazing to me.  This is not formal e-governance, since the government isn’t the one putting this information on the web, and in theory, the gov’t could change the policy, making this document out of date. However, this does make things easier for people… as long as they have Internet access and pick the right search terms (e.g. “starting a company in Uganda“).

Now, what does this information mean for my students?  Mostly it means that they need to hire a lawyer to incorporate as a partnership.  We’ve consulted with a friend of a friend of theirs, and it will cost about 365,000 UGX (180 USD) in licensing and lawyer’s fees to go through the entire process. Their hope is to start a company that uses information technology to support healthcare in Uganda, through the development of software and the support of IT systems. They are helping me by providing ongoing computer and mobile phone maintenance to the healthcare providers I’m working with, even after I go back to the States, and working on supporting the software we’re developing.

Now they just have to come up with a name for the company…

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Young Researchers in ITID

I’ve just had two papers published in the Journal of Information Technology & International Development’s special issue on Human Computer Interaction for Development (HCI4D) (Vol 5, Issue 4, Winter 2009).

The first is a lit review and historical overview of the area:
Ho, M., Smyth, T., Kam, M., & Dearden, A. (2009). Human-Computer Interaction for Development: The Past, Present, and Future. Information Technologies & International Development, 5(4). http://itidjournal.org/itid/article/view/420/188

Recent years have seen a burgeoning interest in research into the use of information and communication technologies (ICTs) in the context of developing regions, particularly into how such ICTs might be appropriately designed to meet the unique user and infrastructural requirements that we encounter in these cross-cultural environments. This emerging field, known to some as HCI4D, is the product of a diverse set of origins. As such, it can often be difficult to navigate prior work, and/or to piece together a broad picture of what the field looks like as a whole. In this paper, we aim to contextualize HCI4D—to give it some historical background, to review its existing literature spanning a number of research traditions, to discuss some of its key issues arising from the work done so far, and to suggest some major research objectives for the future.

The second is a paper drawing on the field experiences of all of the authors, a group of (mostly) graduate students:
Anokwa, Y., Smyth, T., Ramachandran, D., Sherwani, J., Schwartzman, Y., Luk, R., Ho, M., Moraveji, N., & DeRenzi, B. (2009). Stories from the Field: Reflections on HCI4D Experiences. Information Technologies & International Development, 5(4). http://itidjournal.org/itid/article/view/427/195

Human-computer interaction for development (HCI4D) requires considerable time in the field interacting with users. While this is true for most HCI work, fieldwork in developing regions presents unique challenges due to differences in culture, language, ethnicity, and socioeconomic status. As a group of nine HCI4D researchers, we have adopted a systematic approach to reflect on the challenges we have encountered in the field. Arising from this exercise are three contributions: The first is our research method itself, which uses a mix of qualitative and quantitative instruments to elicit and synthesize individual experiences. The second, intended for beginning researchers, is a set of lessons learned and suggested strategies for navigating the unique challenges of HCI4D research. The third, intended for the HCI4D community at large, is a critical reflection on the field itself, inspired by our findings. Topics covered include the incentives and agendas of the research world, the importance of managing expectations, the nature of “participation” in HCI4D, and the conflict between research and development more generally.

I really like researchers and the projects written about in the articles, so I encourage you to peruse the entire issue.

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Bringing ICTs and Solar to Rural Uganda

Dembbe Clinic WECARE Solar and Netbook Deployment

Dembbe Clinic WECARE Solar and Netbook Deployment

Kathe Medical Care Netbook Deployment

Kathe Medical Care Netbook Deployment

Barefoot Power PowaPak and Palm Treo Deployment

Barefoot Power PowaPak and Palm Treo Deployment


While my study hasn’t quite officially started yet (most of my equipment is en route via Cairo right now) I’ve started deploying some computers and mobile phones in a few health facilities, just to give them some time to familiarize themselves with the equipment, and to give myself and idea of what I’m going to run into with the other clinics when they get the equipment too.

Here’s how my research works: There’s a lot of complicated stuff about claims and claim processing. However, what I actually do is a lot of qualitative research on how people do their work, perceive information technology, and manage information. Then I introduce new technologies, and then ask them what they think of them, and see what they do with them. Sometimes I’ve done weird things with these technologies (like umm.. written them or installed specific software), and I definitely have a specific approach – I interfere with my subjects a lot in terms of computer training, and in the case of my partnering agency, being an IT consultant in this office for 15 months.

My baseline studies and are showing that my target user base 1) has a high interest in using information technology for patient information management but 2) very little training (for the most part). So if I were to introduce a new system, let’s say a laptop/netbook, 1) they would be very interested in learning how to use it, even paying for it but 2) they would have little to no background knowledge on where to start.

This has deep implications for user interface design. For many people, they choose a “kiosk” approach, making computers that have only one application (also known as the “appliance”). However, this has implications on sustainability. For private health facility owners who need additional skills, or for programs that cannot be expected to finance the equipment externally – paying for purpose-built machinery when the computers are capable of general purpose applications is impractical.

In this case – Claim Mobile is probably not a sufficiently valuable application to motivate purchase of laptops or phones. However – the phones, bundled with a camera, medical calculators, bible readers, internet browsing capabilities, etc, and the netbooks, with Microsoft Office, and Hesperian ebooks, and other medical resources, Barack Obama’s speeches, and the ability to access the Internet are of great value to the health facilities, and to the program management of the Uganda OBA project, even without the claims processing component.  However – we hope to find out in this study how this value will actually play out against real purchasing decisions: laptops vs phones, Internet subscriptions vs pay per kb Internet use.  In addition, we will observe over time how the health facilities and the Uganda OBA project will make use of their ownership of these devices, and how the new uses play into relationships, communications, and the management of the OBA program in general.

Some caveats about the deployments so far.  Out of the first three deployments, two facilities did not have power.  In one location, we donated a solar suitcase to Dembbe Clinic through WE CARE, an organization I’m involved with that seeks to provide improved electricity and communications for maternal health care.  The two 20W panels provide sufficient power to charge the netbook, phone and lights for the facility.

In the second location, we are experimenting with the Barefoot Power Powapak, which provides solar led lighting sufficient for rooms (not quite surgery), and a cigarette adapter to charge phones. However I went back on Monday to check on the solar deployment, and discovered that the battery was completely discharged – probably because the solar panel was failing to charge the battery.  I’ll introduce some solar logs to have them track usage more closely in January. The phone is being charged every few days from the clinician’s other place of work, which has access to electricity.

The third location, Kathe Medical Care, has very reliable access to electricity, because they are on the power line connecting to Rwanda. However, what interests me about this particular clinic is their innovative uses of ICTs prior to the study.

IMG_1312

Kathe Medical Care analyzes output indicators by local sub-districts

During my baseline surveys, I was introduced to Kathe Medical Care’s many colorful computer generated graphs and charts, all produced from the government-mandated monthly summary data.

There were charts showing trends of increasing numbers of antenatal visits over the past year, since the beginning of the OBA program, charts, comparing non-OBA deliveries to OBA deliveries, and charts showing from which  sub-counties patients were coming.

I learned that the clinician did all of these from an Internet cafe, taking his monthly reports to Mbarara each month, entering them into Excel, to produce the charts.

Based on these charts, I assessed this clinic, and had high hopes that I would be able to learn from him how other clinics could use their data to benefit from computers.

I also assumed that he had a usb flash drive.

But to my surprise – one of his statements upon entrance into this study was that he had been giving people these charts for a while and hoped that at some point  someone would think to give him a flash drive. You see it turned out that each time he produced one of these charts, he was entering in another year’s worth of data, all over again – he had nothing on which to save the Excel spreadsheet that he was using to create this chart. I think none of us ever imagined he could achieve so much without a flash drive in the first place!

This sort of begs a question: clearly he has enough income to purchase a flash drive, if he’s willing to purchase a netbook, and even a printer… What stopped him? (This is another blog entry entirely, maybe a paper or two).  There’s a lot to be said at this moment about 1) trust in electronics purchased in Uganda and 2) the perturbation that I am as a ethnographic researcher in this environment.  But I won’t say it now.

In the meantime… given what he was doing without a flash drive, and with the nearest Internet cafe an hour away at $1.50/hour,  let’s just imagine what he’ll do with his own netbook and Internet access.  Or perhaps not imagine… we can wait and see.

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WE CARE Solar on PRI

One of WE CARE’s solar suitcases (www.wecaresolar.com) was recently
deployed by Catapult Design in the Minazi Health Post in Rwanda (
http://bit.ly/59j9G ), and PRI included  some of the photos in an
article about the project.

On PRI’s The World


Solar medical system
http://www.pri.org/business/social-entrepreneurs/solar-energy-clinics1583.html

A self-contained, solar-powered system for operating rooms ensure clinics in the developing world aren’t impaired by blackouts.

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Zap: Much more than Money Transfer

Zap BrochureSo MTN Money is not the only mobile-phone based money transfer service (mobile banking services not-withstanding), Zain Uganda also offers Zap, with marginally lower prices, and what seems to be slightly less restrictive than MTN Money – no 1M UGX limit on the balance to be held by the mobile service provider being the one thing that stands out, although the transaction limit still remains at 1M.

My main exposure to Zap is through advertising, prominently featuring a cross-section of the different populations in Uganda, from shopkeepers, to middle income urban young adults, to villagers dressed in traditional clothing.  This particular brochure I’m looking at features a young man dressed in a polo shirt in a modern apartment using a smartphone to “Zap” money to an older  women in a village dressed in traditional clothing, holding a basic nokia candybar  phone.

Rumor has it, and the tv and billboard advertising go to support the rumor (“What can i do with Zap? … Pay for goods and services and so much more”), that Game and Shoprite – two large consumer stores in Kampala, both accept Zap in lieu of cash. Which, if the rumor is true, means that Zap has found an alternative to credit cards in a market where credit doesn’t work due to  lack of addresses, lack of ability to track individuals, and lack of bank accounts to support the debit card intermediary step that has worked in the States.  (One day I will go and verify this, but this isn’t my area of research, and I don’t live in Kampala, so bear with me. An astute reader living in Kampala is welcome to verify for me…)

Another interesting thing about Zap is that they’ve also deployed it in Tanzania and Kenya - and news reports say that they are working with Western Union to allow international money transfers. Which reminds me – locally in each country they partner with Standard Chartered, a prominent bank, which by my assessment tends to charge fairly high fees, but offers very good services, including online banking.  People complain that if they don’t pay attention they quickly end up with a negative balance- but if you are employed, and direct deposit your salary, then it is often the bank of choice here.  In Kenya, it seems they are partnering with both Standard Chartered and Citigroup (remember, this is a blog, so I have exactly one source for this information).

Some nitty gritty details:

Registration is in any of the authorized agents – Zain shops country-wide, who also can cash-in and cash-out Zap Money. To register, you need:

  1. A Zain SIM card
  2. Original and copy of an ID document, either a passport, voter registration card, recommendation from a village chairperson, employee id or a pension card
  3. Fill out an application form (so customer service may not always be perfect in africa, i haven’t tried this yet)

Zap also has a feature in which you can specify a “nick-name” in order to protect the privacy of your phone number – so you can give your nickname to the person with whom you are exchanging money instead of your phone number, and then you can change your nick-name afterwards. Every transaction must be confirmed by a password, and the sender and recipient each receives an SMS confirmation of the transaction.  All the services are accessible from the phone menu directly, and if you forget your password you can call customer care to reset the password. Lost phones/SIM cards can be replaced without impact to the account.

Now for costs:

Zap M-Commerce Account Restrictions

  • Max transfer amount: 1,000,000 UGX (~500USD)
  • Max tx Buy Zap per day: 50
  • Max tx Sell Zap per day: 50

Zap Service

  • Zap to Zap Account Transfer (to Number or Nickname): 250 UGX
  • Zap to TopUp Airtime:  No Cost
  • Zap Tools: Balance Check, Change Password, Change Nickname, etc: No Cost

Recommended Cash In& Cash Out Fees (Actual rates to be determined by supply and demand)

  • Amount: Buy/Sell
  • 1-5000: 250/250
  • 5001-30,000: 200/1,000
  • 30,001-60,000: 300/1,200
  • 60,001-125,000: 400/1,600
  • 125,001-250,000: 500/2,500
  • 250,001-500,000: 1,000/3,000
  • 500,001-1,000,000: 2,000/5,000

The interesting thing about this pricing model is that there is a fixed transfer fee of 250UGX per individual transfer, but the cash in and cash out fees are  the primary transaction costs that are comparable to MTN money are only incurred when they choose to take money in and out – so Zap clients are actually encouraged to use this as a bank account, and to take out and put in money as a lump sum in increments of as high  as they are able, especially given that there is no maximum balance of 1Million UGX, as there is with MTN Money.

What I think would be great is if Standard Chartered and Zain (and MTN) could start tracking individuals who are using this, and to give them a credit history based on their ability to maintain a balance successfully.  Those who have a good credit rating might be eligible for loans through Standard Chartered or other banks.

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Pyramid Schemes in Uganda: Together as One Community Project

People have long been prey to pyramid schemes all over the world, and it seems that Uganda is not an exception. (Apparently South Africa has already made pyramid schemes illegal, according to Wikipedia.) I was in my office today and I overheard my co-workers discussing a finance club, some disparaging, others curious, so I asked about it – and was told, “Melissa, they will steal your money!”

tacop-fronttacop-frontThe Together as One Community Project (TACOP) claims a mission “To enable the community to raise investment Capital through net work saving” and encourages members to recruit more members to deposit money into specified bank account.  Each new member deposits 10,000 UGX (~5USD) into the TACOP bank account (Post Bank 1630003000139), and 5,000 UGX into each of seven (7) other member bank accounts, all listed on a numbered page (the paper I’m looking at is numbered 169).  Thus, joining entails a cost of 45,000 UGX (~25USD), but with the “promise” of earning 5,000UGX per person recruited to the project by their recruits.

There’s a very nice chart on the back, explaining that “your one form will turn into 3 forms, 9,27,81,243,729,and 2187, as you earn UGX 5,000/= from each form,” and showing that at level H they will have an income of 10,935,000/=. They of course forget to mention the detail that each level requires the recruitment of 3 times as many people , and that at level H, if you get there,  the so-called the community project has earned 32.8M UGX (16,400USD) from your “descendants” alone.  There’s no information on who runs this project, or how they plan to use this money.

They even suggest you can rejoin the program – presumably by paying another 45,000 UGX.

Apparently the “company” has just reached Mbarara, and are claiming that they just arrived in Kampala a month ago (so people don’t believe that the population is saturated, presumably), but my intern notes that it’s been in Kampala for over a year.

So let’s say that the #169 indicates that this is the 169th member of the company to be recruited. That puts this potential member at level 6 or level F in the overall company. To get to their level H (level 12 overall), over 797,161 people will have to have been recruited. At level 16, they will have exceeded the population of Uganda.

What really gets me though is that the fact that maybe 168 people have been recruited already means that some 120 people have probably put in money without actually receiving any deposits, and another 50 have only gotten a little back – whereas the 4 people that started the scheme already have 1,680,000 and 840,000 UGX in their banks.

At least they haven’t figured out yet how to use MTN Money and Zap for these schemes… which I’m guessing might make them largely untraceable given how easy it is to get new sim cards out here.

This isn’t the only pyramid scheme out here, a new one has also started up, with a higher buy in (I think around 95,000 UGX), possibly targeting higher income people.  We suspect also that it’s making its circuits right now because the students are returning to start classes, and may have cash on hand for their living expenses and tuition money, so both schemes might be targeting students.

Now here’s the thing that I’m thinking about.  What can we do about it?  What is the role of development in dealing with pyramid schemes in Uganda? Besides informing the banks and the Ministry of Finance so that they can do something about it?

1. I think we should think about ways in which mobile technologies and other ICTs might be misappropriated to propagate these schemes – not as a reason for not using these technologies, but so we can design better and more secure mechanisms. Do pyramid schemes have an implication for m-Pesa and other mobile finance programs? Or are they irrelevant?

2. I think we should think about how people access information, how they ask questions when they encounter new things like these “finance clubs”. For my coworkers, a lot of information is spread by word of mouth – they know things by rumor, by discussion and stories shared within the office during breaks and at lunch. Very different from our “new culture” of looking everything up on wikipedia, or the culture we might be trying to create by telling people they can query google for information.

3. Rights to information: how can we give people access to the information they need to decide for themselves whether a program is a good or a bad program.  Of course this slip of paper doesn’t have “Google Keyword: pyramid scheme” written on it anywhere. So how do they link information resources to the questions they might have?  Question Box tries to be a general purpose unspecified answer of whatever questions might come up – but hasn’t come into general usage yet. By American experience I’m not sure that this type of solution would become mainstream – Google Answers and Yahoo Answers seem to only serve particular audiences. Google search is more mainstream, but sometimes requires a some technical skill to get the required answers – and has severe limitations in the types of knowledge one can acquire.  Would Google search be adequate for the answers needed by our audiences in developing regions?  I can’t tell you how frustrated my colleagues at Mbarara University are by finding academic papers via Google search (they generally aren’t familiar yet with Google Scholar) only to be stymied by restricted access journals.

So, what is the role of ICTs in addressing the day to day issues of Ugandan poverty? Information about pyramid schemes in this case has already clearly benefited the scam artists involved – how can we use ICTs to also prevent pyramid schemes from propagating further?

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Tethered Computing

At long last I have my personal MTN sim working for both voice and data on my android phone, *and* I can connect the my computer to the Internet using mtn’s gprs connection using JuneFabric’s PdaNet software.

Sigh, well PdaNet only works for windows, not my MacBook Pro, but since my MBP is currently out of commission with an inexplicably inoperable motherboard (the graphics card seems to have fried itself, so it’s being serviced – side note: by some miracle there’s a shop that does warranty repairs on apple computers in Kampala, but it takes a while bc they have to order parts from Cupertino), not working on a MBP is a moot point at the moment. And I can always switch back to my Palm phones if I want to tether the Mac via bluetooth.

Anyways the point being that I spent hours trying to get this sim card enabled for the 90k/month data plan last March, and they kept saying a new plan was in the works – and apparently now it is available. Whee!

I also noticed that while I’ve been having trouble connecting to the internet on pay as you go internet using this sim card for a while, recently it started connecting using the modem APN instead of the standard APN, so I am using MTNDATA as my apn setting instead of yellopix.mtn.co.ug.

Zain is also pretty easy to get configured for internet – you can either go into a shop in Kampala or just top up with 90k shillings and do it yourself. Set the apn to web.ug.zain.com and connect. From there you will need to go to a browser and try to open a website, which will redirect you to a zain site, where you will be able to choose from three plans: Zain Access (the pay per kb plan), Zain 1GB (the 90k plan), and Zain Unlimited, which doesn’t charge additional fees for usage over 1GB in a given month. If you choose Zain Access you will be stuck with it – and have to talk to customer service for several hours in order to get switched back to Zain 1GB. Once you click one of the links, it will show you the prices for the plan, then you can confirm, and you’ll be in.

With Zain I haven’t in general had technology issues with any of my phones, although the sim no longer works with my old falcom modems. They will sell you a usb modem (locked) made by huawei for 360,000 ugx (180 USD) which works reliably at fairly decent speeds. In the past I have been able to roam in dr congo on my 1GB plan, but recently was told that we can only roam on Zain Access, because they haven’t worked out payment policy.

So this is what works. It’s not the most stable connection in the world, tethering the android. Nor the speediest. But it hits a price point and I can check email and download files.

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MTN Money: Long Lines and Bank Competition

A long hiatus, but now I’m back! I’ve been a bit swamped with teaching and travel – but still there’s so much going on here that I want to share.

One thing I’ve noticed recently is that the MTN Service Center has become swamped lately – there are frequently crowds of people there waiting in line.  And the explanation is MTN Money, a program that was launched early this year (or was it late last year?). Similar to SimbaCash, MTN Money allows people to send up to 1 million Uganda Shillings at a time (approximately 500USD) to people with identification and mobile phones (either on the MTN Network or on other networks) for a small fee via an MTN Money agent. It’s less expensive than Western Union, and more accessible than banks.

The fee schedule is graded based on the amount of money being transferred, and generally paid by the reciever, unless they aren’t registered as an MTN money user, in which case, it is paid by the depositor in advance and is moderately cheaper.

  • Sending UGX to a Registered User: 800 UGX
  • Sending UGX to a Non-Registered User
    • 5000-30,000: 1600
    • 30,001-60,000: 2000
    • 60,001-125,000: 3700
    • 125,001-250,000: 7200
    • 250,001-500,000: 10,000
    • 500,000-1,000,000: 19,000
  • Withdrawal of UGX by a Registered User
    • 5000-30,000: 700
    • 30,001-60,000: 1000
    • 60,001-125,000: 1600
    • 125,001-250,000: 3000
    • 250,001-500,000: 5000
    • 500,000-1,000,000: 9000
  • Withdrawal of UGX by a Non-Registered User: 0 UGX

There’s a daily limit of 1 Million UGX, an a maximum balance of the same, which probably helps put a cap on how much cash the agents are expected to carry on a daily basis. The minimum transaction is 5,000, and there is no minimum balance.

Who is the market for Mobile Money users?  Well – car conversations here tell me that the competition being killed first is Western Union – it’s much less expensive to transfer money than Western Union, and that they will have to bring their prices down to compete. So families sending money back to the village may use MTN Money now instead.  Another friend needed to send money to his wife last weekend – after the banks had closed.  MTN was still open, and so despite the fact that she was not yet registered as an MTN Money user he was able to send her cash – also he was not happy to learn that it would cost him more money to send cash to non registered users than to send money to registered users! Perhaps it would comfort him to realize that the overall transaction cost was lower…

Are they competing with banks?  Unclear to me.  It’s not the banks’ core service to offer money transfer services – often they don’t charge for within-bank transfers.  Indeed – ATM withdrawals cost me 500UGX and although my bank account might only usually have about 1M UGX in it and doesn’t charge fees, I think most banks make their money off of fees and other services.  This is filling a gap for a market that wasn’t quite being served, perhaps due to the identification restrictions common for the larger banks.  It’s difficult to open a bank account here without a letter from an employer and a show of regular income.

I’m curious to know also how MTN Money will fare in more peri-urban areas, and how it can be accessed by more rural users.

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