The paper, entitled Mobile end-user applications for developing countries, states it  has now been proven that established mobile communications can be a major step toward industrialization in developing countries.

Co-authored by Joachim Bildt and Nils Sahlberg as part of their degree project on behalf of Ericsson Mobility World, the paper goes on to state that if people in poorer regions were provided with mobile phones - for example, non-government organizations (NGOs), companies and members of the local business community, such as fishermen and farmers - development could be significantly hastened. It states the positive effect of mobile services for society has been shown to be twice as great in the Third World, compared with industrialized countries.

Bildt and Sahlberg say they discovered that mobile applications in the areas of mobile banking, business to business trading, healthcare information, education and information are beneficial in developing countries. Apart from traditional reports and studies, and interviews conducted with the parties involved, the report is based on surveys undertaken during a period of several weeks in Tanzania, an African country that shares the same situation as many other developing countries.

The starting point for the report was to identify applications that would help all parties in developing countries, from operators to individuals in rural areas. It was also recognized at an early stage that the services and applications offered should be low-tech.

"Given the current situation, voice and SMS services are the best way to raise living standards in Tanzania," Sahlberg says. "Being able to call a family member or friend in another part of the country is an eagerly anticipated opportunity."

Modern technology and the latest terminals can be found in affluent areas, but the vast majority of the Tanzanian population makes do with "no-name" or village telephones that are lent to residents. A combination of a SIM card and lender phones is common in developing countries, creating unique user needs.

Bildt adds: "Missed-call notification is an application that is available but seldom used in the Western World today. But we know that in Tanzania there is a high demand for this service."

To give some idea of the situation in Tanzania, it should be remembered that 90 percent of the inhabitants of the capital Dar es Salaam have moved there from rural areas. This is creating considerable demand for communications and the exchange of information between the city and outlying areas. For the individual, the inability to communicate with relatives and friends in other parts of Tanzania is a major social problem.

Health issues also create special communication needs. Africa has been fighting HIV/AIDS for many years, with as much as 70 percent of the world population infected by this disease living on the continent. Malaria is another widespread problem. Mobile applications could be invaluable in helping health professionals and care providers get vital information out to people living in isolated areas. Conditions for aid organizations and foreign companies active in the region could also be improved in an efficient way.

Another area where mobile communications could help is obituary information. At present, death notices are announced via daily radio broadcasts and attract a large number of listeners. Access to this type of information via a mobile phone could make daily life easier.

For local business people - usually fishermen or small-scale farmers - the applications within mobile banking and business to business have major potential because of the challenges posed by large geographic distances and infrastructure deficiencies.

"Opportunities for small companies and banks to gain access to the capital they require, which they lack today, will also be improved," Sahlberg says. There is also the aspect of being able to safely transfer funds to one's family in a remote area.

Serious crime can quickly take root in areas that have to contend with poverty, minimal education standards and unemployment. For many developing countries, crime is a major social problem. The mobile banking application includes services such as mobile wallet and money transfer, which could reduce the risks involved in handling large sums of cash.

The paper's findings are backed by reports from the Swedish International Development Cooperation Agency (SIDA) and other organizations that indicate that mobile communication is the technology that has the greatest effect on the development of society. Ten extra telephones per 100 inhabitants in a developing country increases GDP by 0.6 percent, meaning the positive effect of mobile communication is twice as great in the Third World than it is in industrialized countries.

"Our own studies and those of several others clearly show that mobile phones create improved conditions for companies, which in turn creates better economic and social conditions. Living standards can be raised significantly for the average Tanzanian," Bildt says.