Escolar Documentos
Profissional Documentos
Cultura Documentos
September 2015
author: Collegiate School; 260 West 78th Street, New York, NY 10024, United States;
emax@collegiateschool.org; 1-(212)-722-5740
2 Collegiate School; 260 West 78th Street, New York, NY 10024, United States; jberman@collegiateschool.org
Contents
1
Introduction
3
3
4
4
Methods of Analysis
Results
Discussion
13
15
1. Introduction
There is a striking misalignment between cellular network coverage and electrification across
sub-Saharan Africa. While approximately 83 percent of sub-Saharan Africans have access to cellular
networks, only 33 percent have access to electricity (Population, total; World Development Indicators: Power; Access to electricity [percent
of population]). The problem particularly affects
rural areas, where electrification rates are lower
(World Energy Outlook 2014Electricity). The
coverage-electrification gap in these regions follows logically from the difference between network
and grid technologies: while cell phone coverage
can be expanded over large areas without dedicated
infrastructure between towers and covered populations, grid electricity cannot, limiting its efficiency
1 The
estimation of rural and urban smartphone penetration was derived through weighted multiple regression for
urban population size and rural population sizes relationship
to overall smartphone penetration in major sub-Saharan markets (Nigeria, Senegal, Ghana, Tanzania, and Uganda) with
positive-value constraints to produce an approximation of
theoretical constant rural and urban electrification in these
countries, with a .77 coefficient of determination.
2 There has been some controversy regarding phone penetration as a metric for sub-Saharan telecom markets, since
sub-Saharan phone users often own multiple handsets. Data
and calculations on phone penetration in this paper are based
on the number of connected people (not the total number of
handsets.) However, the World Banks work on phone penetration and GDP growth considers the number of handsets
in operation. For these calculations, we defer to the World
Banks view that either data set is acceptable, as phone sharing
often makes up for multiple-phone ownership (Qiang 8).
2. Methods of Analysis
To determine different technologies suitabilities to address the sub-Saharan coverage-electricity
gap, we outlined qualities necessary for solutions
to successfully serve in this capacity and analyzed
six technologies along these criteria. Technologies
assessed were phone shops with grid electricity, solar pay-as-you-go systems, solar handsets, kinetic
charging devices, tower-based charging systems,
and community wind systems.3
2.1 Criteria for Charging Solutions
We assessed potential charging solutions on
the criteria of cost, scalability, likelihood of receiving permission and funding, and community and
environmental impact using both quantitative and
qualitative data.
We outlined four changes in phone use resulting from greater rural electrification: the increased
use of extant basic phones due to reduced electricity
costs and greater accessibility, a shift from basic
phones to smartphones due to greater disposable
income and reduced electricity costs, new basic
phone users due to expanded electricity availability,
and new advanced phone users due to expanded
electricity availability. These changes each provide
positive benefits for telecoms profitability and GDP
growth (see Table 1). We calculated the incremental revenue increase per phone and the 5-year GDP
impact per phone with each change in phone use
(see Table 2, Table 3).
Table 1. Increases in ARPU and Annual GDP Growth from
ARPU
14%
Unavailable
Smartphones Substituted
32%
.15 pts
In calculating the costs and benefits of different charging systems for funders, we assumed that
telecom firms and NGOs would either pay to install
theoretical infrastructure and have users pay a reduced rate to charge their phones or would help subsidize charging infrastructure that users purchased
themselves.4 In either funding scenario, low costs
are important: since NGOs cash flows are dependent on their donors support and telecom firms
profit margins are particularly low (ARPU decline,
greater infrastructure costs, and more saturated markets have squeezed finances,) inexpensive systems
would allow for quicker and broader dissemination
in a limited funding environment; also, since users
would either purchase charging infrastructure along
with handsets or pay for electricity along with data,
minimizing consumers costs is essential in promoting the distribution of more advanced phone models
and higher data usage, which subsequently increase
ARPU and GDP growth (Zibi 3, 6).
114%
.8 pts
132%
1.38 pts
3 We
Green Power for Mobile 15; Reed et al. 12; What Is the
Impact 10; Qiang 8
Table 2. Monthly ARPU and 5-year Incremental Revenue from
13.2
96.0
Smartphones Substituted
15.32
222.7
13.2
792.0
15.31
918.6
Green Power for Mobile 15; Reed et al. 12; Poushter et al. 3;
Mobile Economy 10
Table 3. 5-year GDP Growth per
Basic/Advanced Phone
Phone Type
Sc.1 (USD)
Sc.2 (USD)
Basic
160
159
Advanced
8424
17107
improved ARPU values for new phone users subtracting all operating expenses; i.e., the net change
to telecoms revenue per system installed. Since
changes in phone distribution affect GDP growth
rates, the 5-year GDP expansion per phone is determined by the number of other phones in use (Qiang
8; What is the Impact 10). In calculating each
phones economic impact, we projected that greater
electrification would lead rural handset distribution
(53 percent basic handset penetration and near-zero
smartphone penetration) to match the distribution in
urban areas (18.4 percent basic handset penetration
and 50.6 percent smartphone penetration) (Poushter
et al. 3; Sub-Saharan Africa [Developing Only]).
We calculated the bounds of GDP impact per phone
given improved rural handset distribution in two
scenarios: 1) assuming no new advanced phone
purchases and a higher rate of smartphone substitution 2) assuming no new basic phone purchases
and a lower rate of smartphone substitution. The
first scenario is predicted to expand developing subSaharan economies by a total of 135 billion USD
over 5 years, the second by 199 billion USD assuming a baseline annual GDP growth of 4.3 percent
(Sub-Saharan Africa [Developing Only]; What
is the Impact 10; Qiang 8). Using these values,
we then calculated 5-year incremental revenues for
telecoms, the 5-year GDP improvement, and the
5-year consumer savings produced by each charging system, allowing us to compare the costs and
benefits of different charging solutions over time
across distribution models. In order to determine
the probability that charging solutions produced the
projected returns, we evaluated each systems scalability and the likelihood of it receiving permission
and funding; however, other factors should be taken
into account by potential funders that will further affect actual systems returns (see Section 4.2, Section
4.3).
2.1.2 Scalability
Output (w)
Cost (USD)
.85
47
244
1.21
93
257
1.48
138
267
3. Results
We assessed each technology and distribution
system on the outlined criteria, drawing data for
analysis from general trends and specific examples.
3.1 Phone Shops and Grid Electricity
Phone shops remain the most popular method
for phone charging in rural sub-Saharan Africa
(Community Power from Mobile-Charging 8). Phone
shops operate by reselling electricity to rural users
near grid limits. Grid inefficiencies, inefficiencies
of scale, and shop owners leverage over rural users
make electricity extremely expensive.
Shop users pay around 38 USD/kWh for electricity, compared with the average US grid rate of
.10 USD/kWh and the average sub-Saharan grid
rate of .14 USD/kWh (Wogan 2015; State Electricity Profiles; The High Cost of Electricity).
Travel costs make the real cost of phone charging
even higher: shop users travel up to 50km to access phone shops, risking safety and losing working
hours for each phone charge (Community Power
from Mobile-Charging 14). Despite high electricity prices, phone shops pay-as-you-go distribution
model is appealing for consumers, who enjoy being
able to buy electricity in discrete quantities according to their need and ability; one may consider that
phone data is similarly sold in minutes by most subSaharan vendors, rather than in contracts as in more
established telecom markets (Wogan 2015; Cheka
Bombastik). Improvements to grid capacity, grid
size, and transmission are necessary to bring phone
limitations of their cost and scalability, so the negative community impact will not be mitigated without technological improvements. Environmental
effects are not a primary concern with this technology; while grid electricity is often dependent
on fossil fuel, grid fossil fuels use represents the
OECD norm and present a cleaner alternative to
the diesel-based generators and biomass stoves that
contributes far more heavily to pollution and illness
on the continent (Hutton ix).
3.2 Solar Pay-as-You-Go Solar Systems
Pay-as-you-go solar systems provide electricity at the household level; panels are installed for
consumers at an up-front cost, after which point
users pay only for the electricity they require. Eventually, after the system cost has been paid off (generally within 18 months of purchase) electricity
is free for users (Wogan 2013). These models
are popular in more rural areas, and there are at
least 50,000 PAYG subscribers across the continent
(Wogan 2013).
Table 5. 5-year Incremental Revenue per PAYG
System
Change in Phone Use
195
Smartphones Substituted
445
1587
11837
Wogan 2013
System
Phone Type
Sc.1 (USD)
Sc.2 (USD)
Basic
281
280
Advanced
14818
30036
Wogan 2013
Savings (USD)
Basic
504
Advanced
424
could devote 10-12Wh of electricity to phone charging. If users were to devote more electricity than
this to phone charging, more household appliances
would have to be turned off unless PAYG systems
were purchased specifically for this purpose, in
which case their up-front cost (around 10 USD)
would limit telephony investment and subsequently
dampen impact on ARPU and GDP by reducing
the penetration of advanced phones. Using our
estimated 12Wh limit, we calculated the 5-year
incremental revenue, 5-year GDP growth, and 5year consumer savings per system for a joint NGOtelecoms-consumer purchase scenario (see Table
5, Table 6, Table 7). We assumed that consumers
would pay 10 USD of the 88 USD total as in the
current pricing scheme and that the rest of the systems cost would be shared by the telecom firm and
the NGO/NGOs, with continuing consumer spending for the first 18 months (approximately 1 USD a
weekthe standard rate) and phone purchase after
6 months (Wogan 2013).
As a solar technology, PAYG systems are highly
scalable. To operate at the optimal 5W output assumed above, they require approximately 1000
kWh/m2 of annual solar radiation; accordingly, they
could be expanded to nearly the entire continent
(Wogan 2013; Map: Meteotest Global Solar).
However, areas experiencing rainy seasons may find
lowered electricity output, forcing users to either
charge and operate phones less or turn off other appliances and creating a possible drawback for either
telecom firms or NGOs.
Permissibility may be an issue for PAYG systems near existing grid infrastructure, particularly
if grid consumers switch from unreliable utilities
and high tariffs to off-grid solar technology, as has
been observed in some sub-Saharan communities
(Parker). However, these issues become less signif-
Handset
Change in phone use
89
Smartphones Substituted
174
785
870
Handset
Phone Type
Sc.1 (USD)
Sc.2 (USD)
Basic
160
159
Advanced
8424
17107
Charger
Change in Phone Use
91
Smartphones Substituted
217
787
913
Phone Type
Savings (USD)
Basic
288
Dugdale
Advanced
248
Charger
Phone Type
Sc.1 (USD)
Sc.2 (USD)
Basic
160
159
Advanced
8424
17107
Dugdale
Savings (USD)
Basic
290
Advanced
250
did not assess hand-crank chargers due to their inefficiency (at maximum, .5kWh of electricity can be produced
daily.)
these data, we calculated the incremental revenue, cost at 1.5 USD/kWh, end-users subsidized rate at
GDP impact, and consumer savings per unit (see .5USD/kWh, and overhead for a single employee to
Table 11, Table 12, Table 13).
distribute the electricity at 50 USD/month (Mebane;
Bicycle charging scalability is moderate, with Standing Still but Going). From these numbers,
an approximate 10 million sub-Saharan bicycles on we calculated the 5-year incremental revenue for
the road and the highest bicycle concentrations in telecom and 5-year GDP impact per tower and the 5East Africa (Hamilton; Green Power for Mobile 23). year consumer savings from tower-based charging
However, bike owners tend to be wealthier than non- systems (see Table 14, Table 15, Table 16) assuming
bike owners, which might make phone ownership 41 users per tower (see next paragraph.)
and the likelihood of phone or smartphone purchase
Table 14. 5-year Incremental Revenue per Tower
slightly higher (Hamilton).
Charging System
Politically, kinetic charging is a non-disruptive
Change in phone use
Incrl Rev (USD)
technology, and western technology firms investMore Basic Phone Use
990
ments in developing it further demonstrate faith that
Smartphones Substituted 6127
its electricity directly impacts phone charging.
New Basic Users
29527
While charging distances are eliminated with
New Smartphone Users
34663
kinetic charging devices, their ability to integrate
Standing Still but Going; Access Methods in
seamlessly into bike owners lifestyles seems to be
GSM 15; De Wit, Carvalho, and De Miguel 3; Mebane
somewhat overstated. The inconvenience of charging phones with bicycles has led some owners of
kinetic charging devices to hire others to peddle Table 15. 5-year GPD Growth per Tower
their bike and keep their phones charged for them, Charging System
suggesting a disconnect between predicted perforPhone Type Sc.1 (USD) Sc.2 (USD)
mance and the kinetic chargers usefulness in real
Basic
6544
6519
world application (Green Power for Mobile 23). EnAdvanced
345364
701387
vironmentally, the chargers effects are negligible.
3.5 Tower-based charging systems
Tower-based charging is a proposed solution
to poor electrification in areas around cell towers
wherein telecom firms sell off electricity from standalone cell towers to local users. Under this plan,
electricity for charging would be offered at subsidized pay-as-you-go rates, making electricity more
affordable for end-users.
Towers mostly operate from diesel power, although there has been some effort to shift to renewable energy in recent years. Renewable energy
entails a high up-front cost and slow payoff; since
telecom firms are expected to sell off tower infrastructure in the medium-term as the sub-Saharan
telecom market matures, they may be hesitant to
invest in renewable power installations (Keohane).
Accordingly, our cost estimations for tower-based
charging assume that diesel generators are used
and have already been purchased. We place diesel
Savings (USD)
Basic
292
Advanced
252
If tower-based charging systems provide electricity more efficiently than phone shops, scalability
is inherently limited, since phone users must live
near towers if they are going to avoid the difficulties of travelling to charge phones. Therefore, each
tower can only provide electricity to a fixed proportion of the mobile users it covers. With 7,0009,000 users per tower and a maximum GSM range
of 35km, each tower only has approximately 41
people within a 2.5km radius (assuming even user
738
Smartphones Substituted
5875
29274
34411
Charging System
Phone Type
Sc.1 (USD)
Sc.2 (USD)
Basic
281
280
Advanced
14818
30036
Savings (USD)
Basic
292
Advanced
252
Exact data on small-scale wind energy scalability are unavailable. As stated, reliable wind data
are scarce and anomalous pockets supporting wind
installations are many, making it impossible to calculate the population living in areas with sufficient
wind conditions based on current data resolution
(about 50km). We did find a correlation between
windy nations and nations exhibiting large coverageelectrification gaps, however; of the 14 windiest
countries in sub-Saharan Africa, 7 had more than
twice the sub-Saharan average ratio of people with
4. Discussion
4.1 Selecting Charging Solutions
We found the strongest development potential
for solar PAYG systems, kinetic charging devices,
and community wind systems.
All assessed charging solutions produced similar incremental revenues per handset, although solar
PAYG systems lagged in GDP impact and consumer
savings somewhat. Given the theoretical nature of
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