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Company Example: Motorola

May 2007

Motorola logoAccording to The Center's new corporate citizenship framework, an important dimension of corporate citizenship is the way companies develop and align their products and services to create greater value for society as well as the company. Center member Motorola demonstrates this dimension with a number of initiatives that promote greater access to mobile communications in the developing world.

Motorola knows that fixed-line telecommunications are often inadequate or nonexistent in many parts of the world. Because of this, people in rural areas often have to travel large distances just to make a phone call.

New mobile networks are helping to solve this problem, and are overtaking the installation of fixed networks. The World Resources Institute estimates that by 2010, there will be 3 billion mobile phone users in developing countries – almost double from last year. The number of mobile customers in developing countries is growing twice as rapidly as in developed countries.

Motorola knows how important it is for people in developing countries to be connected to mobile networks. Studies have shown a developing country’s GDP can actually benefit from increased connectivity. This is due to the increased entrepreneurial opportunities that often become available due to access to a mobile network.

To both capitalize on and provide benefit to these markets, Motorola has tailored its products and pricing to the needs of people in the developing world. Through extensive research and field trials, Motorola is working to asses the appropriateness both in function and in price and potential for success of their products. The developing world presents different challenges than the developed world – such as fluctuating literacy rates and electricity supply – and therefore products must be adapted to meet those challenges.

Motorola initiatives that promote greater access to mobile telecommunications in the developing world include:

  • As the sole handset provider for the GSM Association’s (GSMA’s) Emerging Market Handset Program, in 2005 and 2006 Motorola delivered more than 16 million ultra-low cost (under $30) mobile phones to more than 50 developing countries. Motorola donates 25¢ for each phone sold to the GSMA Development Fund, which was established to demonstrate and raise awareness of the role mobile phones can play in social and economic development.

  • In November 2006, Motorola launched a new low-cost phone in India, which will be rolled out globally in 2007. The MOTOFONE handset is designed specifically to make navigation easier for first-time mobile users. Voice prompts in local languages help people with limited literacy by guiding users through the handset functions. Other features include high-contrast screens, which make the phones easier to use outside in bright sunshine, and durable casings to provide protection from dust and sun.

  • While low-cost phones are connecting many of the world’s unconnected, the GSMA estimates that more than onr billion people still won’t be able to afford a mobile phone for the foreseeable future. In December 2006, Motorola and the GSMA collaborated with SharedPhone to develop and pilot software that allows individuals to operate their mobile phones as payphones that can be used by community members for a fee. In Uganda, the December 2006 pilot distributed 400 PayPhone business-in-a-box handsets to local entrepreneurs. Another 10,000 will be distributed throughout Uganda in early 2007.

  • In 2006, Motorola worked with Voxiva in conjunction with the GSMA Development Fund and the World Health Organization to develop a mobile phone-based application for disease management in the developing world. Field health workers now can file patient reports and check drug supplies through a mobile phone, which transfers the data into a central database. Reports of new disease outbreaks or shortages of medicine will enable both the national and international health communities to recognize and respond to the emergence of new pandemics and direct life-saving drugs to needy areas. The application was piloted in Rwanda in September 2006 and is being rolled out throughout the country. Building on this successful pilot, a new Phones-for-Health program, including the GSMA Development Fund, the U.S. President’s Emergency Plan for AIDS Relief, Accenture Development Partnerships, Motorola, MTN and Voxiva, is focused initially on rolling out the disease management application to 10 African countries.

  • Motorola continues to use their wireless broadband solutions to increase connectivity in remote areas. This technology can be used to develop remote health, education, safety and other services that previously were unavailable. For example, in Africa, the Canopy® wireless broadband platform enables a teacher to conduct lessons to a number of schools from a remote center. This means that in rural areas where teachers are scarce, underprivileged children will enjoy improved access to quality education. At Periyar Maniammai College of Technology for women in rural India, the Canopy solution provides connectivity to facilitate learning for villagers and self-help groups in the Indian countryside. Under this plan, 600,000 villages will be connected across India.

  • In 2006, Motorola continued field trials in two Indian villages for a new communication system. Motopost uses kiosks and village buses equipped with wireless networks to carry text and voice messages, video and data for the equivalent of two cents or less. Motopost enables local commercial enterprise and the communication of information critical to protecting public health and mitigating the impact of natural disasters.

  • Motorola introduced Reach GSM Network Solutions in 2006 to address the challenges of network expansion in emerging markets. To overcome power connection issues, particularly in rural areas, solar cells and wind turbines are used to power remote base stations. The Reach solution can be manufactured locally, which has cost benefits for network operators and adds value to the local economy.

Through these initiatives, Motorola demonstrates its belief that access to mobile technology contributes to economic development, as well as access to many social benefits, including education, health care, and public safety.

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