What role can MNOs play in the utilities access space?

This blog post focuses on the key role that Mobile Network Operators (MNOs) can play in the mobile-enabled utilities space, drawing from the GSMA Mobile for Development Utilities Annual Report. It is the third in a series of blogs, highlighting the main findings from the Annual Report.

At the GSMA Mobile for Development, our mission is to uncover the opportunity for MNOs to develop new products and services that have both economic and social impact for underserved communities, while creating new revenue streams and improving uptake of mobile services.

Why would an MNO be interested in entering the utilities access space?

When it comes to utilities, start-ups have been leading the way, growing a space for mobile technology – from mobile payments to GSM machine-to-machine (M2M) technology and basic voice and mobile app services – to improve access to energy, water and sanitation in emerging countries.

Some of the benefits that we have noted highlight the undeniable, quantifiable (monetary) and qualitative (brand loyalty, reputation) benefits for MNOs, including:

  • New mobile money revenues: Pay-as-you-go (PAYG) solar home system providers have shown both uptake of and commitment to the Mobile Money services of their partnering MNO. In Rwanda, among Mobisol’s customers using their entrepreneurial system to sell phone and lantern charging, 20 per cent were new MTN Mobile Money users with at least 80 per cent of them transacting on a monthly basis on the platform;
  • GSM M2M as a gateway to further mobile services for utilities and grow data revenues: As the cost of GSM M2M decreases, the value proposition for mobile-enabled sensors strengthens. In this light, MNOs are provided with an entry point to develop further services for utilities, such as data and customer relationship management tools, and grow their revenues; and
  • New partnerships to strengthen MNOs’ reputation: Leveraging mobile for improved delivery of essential utility services has demonstrated benefits to utilities while allowing MNOs to improve their reach and reputation. As part of the M4D Utilities grant, Dialog Sri Lanka is partnering with the Lanka Electricity Company (LECO) to introduce prepaid metering to the country. Quoting LECO’s head of engineering Mr. De Silva, “Our project is unusual in that an MNO and a utility have moved out of their silos and are jointly developing a platform to innovate new solutions.”

 

Where do we take it from here: MNOs leading the usage of mobile for utilities access?

A few early movers have demonstrated that MNOs have a key, and possibly leading role to play in driving the development of mobile technology further in this sector.

Following M4D Utilities’ Feasibility Study on the potential for smart energy solutions in 2014, Orange have been developing smart metering solutions for utilities in West Africa. Orange Digital Utilities product manager, Alain Tales explains, “Utilities need to move to a new space where data will be key. With the arrival of decentralised energy, grid networks need to adapt to avoid becoming obsolete; it will have to not only be safe, but also become smart. Mobile network operators can help utilities in that respect by managing smart devices that need to be installed and by pre-processing data.”

Our objective, as the GSMA M4D Utilities programme, is to continue to grow the engagement of MNOs in this sector, demonstrating the wide range of benefits and identifying how best to engage in partnerships with the broad ecosystem of actors in the energy, water and sanitation sectors.

 

For further information about our work and engagement with MNOs see pages 49-59 of our Annual Report.

Download the Report

  • If you are an MNO interested in the M4D Utilities sector; and
  • If you are interested in leveraging innovative solutions to provide critical utilities services to your customer base while also improving your revenues.

Please get in touch with us at [email protected] or [email protected]:

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