Applications Opportunity: On Emerging Mobile

B HUTA N
Bhut an Project Repor t on Emerging Mobile
A pp l i c at i o n s Opp o rtun i t y
Te l e c o m m u n i c a t i o n D e v e l o p m e n t S e c t o r
Bhutan project report on emerging mobile applications opportunity

June 2012
This ITU project responds to a request for ITU assistance to identify, evaluate and provide input to the emerging mobile applications opportunity in Bhutan, and includes policy recommendations on regulatory matters and technical standards. Chetan Sharma is the primary author of the report and Dr. S.K. Misra is the primary author for the m-health sections of the report.
ITU 2012 All rights reserved. No part of this publication may be reproduced, by any means whatsoever, without the prior written permission of ITU.
Table of contents
Page Acknowledgements ................................................................................................................................... 1. 2. Executive summary ........................................................................................................................ Introduction .................................................................................................................................... a. b. c. d. e. f. g. 3. 4. 5. 6. Background .......................................................................................................................... Objectives ............................................................................................................................ Role of ITU for promoting ICT applications.......................................................................... Mobile growth around the world ........................................................................................ Mobile apps usage around the world .................................................................................. How governments are using mobile apps to engage with citizens ..................................... What does it take to make the application ecosystem robust? .......................................... v 1 1 1 1 2 2 5 6 8 10 12 14 15 15 17 19 20 21 22 23 24 24 24 25 25 25 32 32 34 35 37 39
Key observations ............................................................................................................................ State of the Bhutan wireless market: Challenges and opportunities ............................................. Key stakeholders in the mobile applications market in Bhutan ..................................................... Priority mobile application areas ................................................................................................... 1. 2. 3. d. Mobile health....................................................................................................................... Mobile agriculture ............................................................................................................... Mobile finance and banking ................................................................................................ Mobile disaster management and communication .............................................................
7. 8. 9.
Mobile apps and GNH..................................................................................................................... Mobile and ICT roadmap ................................................................................................................ Technical architecture and best practices ...................................................................................... a. b. c. Underlying infrastructure and consumer expectations ....................................................... Platform interoperability ..................................................................................................... Interactive voice response ...................................................................................................
10.
Bhutans mobile app landscape and action plan ............................................................................ a. b. Whats present and already working? ................................................................................. Recommendations and suggestions to build a thriving mobile apps economy ..................
Annex 1: Mobile health ............................................................................................................................. M-health project 1 Empowering rural healthcare workers with m-health tools ........................ M-health project 2 Health information services over mobile handsets...................................... Annex 2: Mobile agriculture project ......................................................................................................... Annex 3: Mobile finance project ............................................................................................................... Annex 4: Mobile disaster management project ........................................................................................
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Bhutan project report on emerging mobile applications opportunity Page Annex 5: Mobile web vs. mobile apps....................................................................................................... List of Abbreviations.................................................................................................................................. 41 44
List of Figures
Figure 1: Global mobile industry growth 2000-2011 ................................................................................ Figure 2: Global mobile technology evolution 1980-2025 ........................................................................ Figure 3: Growth in mobile and data subscribers ..................................................................................... Figure 4: The mobile subscription distribution between developed and developing countries .............. Figure 5: Mobile services across various rural and urban user segments ................................................ Figure 6: Jobs app ...................................................................................................................................... Figure 7: Travel app ................................................................................................................................... Figure 8: Disaster management app ......................................................................................................... Figure 9: Mobile penetration of developing countries in Asia .................................................................. Figure 10: Bhutan telecom subscriptions .................................................................................................. Figure 11. Bhutan mobile market growth ................................................................................................. Figure 12: Mobile app for pest control information ................................................................................. Figure 13: Mobile app for soil information ............................................................................................... Figure 14: Mobile app for commodity futures and options ...................................................................... Figure 15: Mobile services framework ...................................................................................................... Figure 16: mHealth4u for rural healthcare ............................................................................................. Figure 17: Mobile agriculture application framework .............................................................................. Figure 18: Mobile Agriculture Application ................................................................................................ Figure 19: Mobile banking application framework ................................................................................... Figure 20: Mobile banking application ...................................................................................................... Figure 21: Mobile disaster management application framework ............................................................. Figure 22: AT&T Winter Olympics Application for the Vancouver 2010 Games ....................................... 2 3 3 4 5 7 7 8 12 13 13 18 18 19 24 33 36 36 38 39 40 41
List of Tables
Table 1: Characteristics of developing and developed countries mobile markets ................................... Table 2: Mobile applications launched by governments in different countries ....................................... Table 3: Mobile apps and GNH.................................................................................................................. Table 4: Pros and cons of mobile apps vs. mobile web............................................................................. 4 6 22 42
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Acknowledgements
Chetan Sharma is the primary author of the report. Dr. S.K. Misra is the primary author for the m-health sections of the report. Authors would like to thank the following individuals who provided input and guidance to the working sessions and for the preparation of the report: Bhimraj Chhetri Chandrika Tamang Chencho Tshering Choki Nima Chungku Dawa Pem Dechen Chhoeden Dechen Tshomo Deewaker Chhetri Dophu Dorji Wangmo Gaki Tshering Hari Prasad Kafley Jigme Nidup Jigme Tenzing Karma Choden Karma Dorji Karma Tenzin Kelzang Jurmey Kinley penjor Kinzang Namgay Lobzang Jamtsho Passang Wangdi Pema Choejey Pema Dorji Phub Dorji Phuntsho Tobgay Sameer Sharma Santosh Gurung Sarla Sharma Sashi Giri Sonam Choki Sonam Dendup Sonam Rinzin Suresh Nepal Bhutan Power Corporation Bank of Bhutan Royal Audit Authority Ministry of Economic Affairs Department of Information Technology and Telecom (DITT) PCE, Royal University of Bhutan DITT New Edge Technologies Bmobile, Bhutan Telecom Department of Civil and Citizenship Registration, MoHCA PPD, MoIC Ministry of Health iTechnologies National Statistical Bureau (NSB) DITT Ministry of Education eDruk DITT Royal Monetary Authority of Bhutan (RMA) Tashi Infocomm Ltd. Royal Insurance Corporation of Bhutan Ltd. DITT Bmobile, Bhutan Telecom DITT RUB Tashi Infocomm Ltd. DITT ITU Peljorkhang Pvt. Limited Chetan Sharma Consulting Tashi Infocomm Ltd. DITT Bhutan Power Corporation Election Commission of Bhutan Ministry of Human and Labour Resources
Bhutan project report on emerging mobile applications opportunity Tashi Tobgay Tashi Yezer Thukten Dhendup Tingting Dema Tshering Dorji Tshering Wangchuk Tshering Wangchuk Tshering Yangchen Uden Sherpa Ugyen Pem Ugyen Tshering Ugyen Tshering Yeshey Pelden Royal Civil Service Commission RMA, PSSD Athang Tech Supreme Court NSB Dept. of Disaster Management Royal Audit Authority Royal Audit Authority DITT BICMA FRSD, RMA Royal Institute of Management DITT
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1.
Executive summary
The mobile market is booming. The advent of data-centric networks, high-performing mobile devices, and engaging applications has put mobile at the centre of computing evolution around the world. Recognizing the opportunity, the Government of Bhutan requested ITU for assistance to better understand the landscape, the opportunities, the challenges, and the technology and policy framework required to launch a government-to-citizen initiative to reach more citizens in more places. The ITU team spent time in November 2011 with various ministries in Bhutan, conducting a mobile application workshop, understanding and gathering requirements for various applications, and forming consensus on application areas for initial launch. The key objective of the project was to understand the specific requirement of Bhutan and the conditions in the field and, based on the data and information, devise a mobile application strategy for the top four prioritized areas of interest. Each country has its own unique culture, consumer behaviour pattern, and consumer expectations, and technology evolution cycles. The report delves into an in-depth analysis of the Bhutan mobile market and follows-up with a series of specific requirements in Bhutan and presents a series of recommendations that can help launch a vibrant mobile apps market in the country. The four mobile application areas that are chosen for initial launch are agriculture, disaster management, financial services, and health. The report discusses each of the areas in detail as well as lays out the proposal and requirements for building these applications. The report also discusses the technology and policy framework for implementing the suite of mobile apps.
2.
a.
Introduction
Background
This ITU project aims to evaluate and provide input to the emerging mobile applications (apps) opportunity in Bhutan especially for government-to-citizen services. The Ministry of Information and Communications in Bhutan requested ITU to assist in identifying mobile apps for government in various vertical areas related to the different ministries and to suggest sound and coherent but implementable policy recommendations on regulatory regimes and technological standards that are relevant for the deployment of such mobile apps. The first phase of the project involved meeting with key stakeholders related to the mobile apps project and carry out an assessment of the needs of the various ministries. This phase also included a hands-on workshop on mobile applications and various ITU initiatives in the region and worldwide. The next phase of the project involved an assessment and study of the global trends in mobile application development, Bhutans regulatory and technological challenges and how they can streamline a process to gain maximum efficiency. The goal was to also analyse the information and data collected during the field trip and formulate suitable policy recommendations. The deliverable of this phase is this report with a detailed discussion of the various topics requested by the government, including the formulation and recommendation of technology and policy to expedite the development and implementation of mobile apps. The report also discusses the requirements for mobile apps in four key prioritized areas of health, agriculture, finance, and disaster management. The final phase of the ITU project will be to build the mobile apps in the prioritized areas of interest according to the requirements discussed in phase two.
b.
Objectives
The key objective of the project was to understand the specific requirement of Bhutan and the conditions on the field and based on the data and information devise a mobile apps strategy for the top four
Bhutan project report on emerging mobile applications opportunity prioritized areas of interest. Each country has its own unique culture, consumer behaviour pattern, and consumer expectations, and technology evolution cycles.
c.
Role of ITU for promoting ICT applications
The purpose of Programme 21 (Hyderabad, 2010) is to support the ITU membership in improving access to ICT applications and services, especially in underserved and rural areas, achieving trust and confidence in the use of ICTs, the Internet and next-generation networks, promoting fair and equitable access to critical Internet resources. The activities in the broad area of ICT Applications include promoting and implementing e-Services and e-Applications (e.g., e-Government2, e-Business, e-Learning, e-Health3, e-Employment, e-Environment4, e-Agriculture, e-Science, etc.) in developing countries.
d.
Mobile growth around the world
Mobile subscriptions have seen a tremendous growth in the last decade. In late 2011, the global total exceeded 6 billion accounting for roughly 86 per cent penetration with over 33 per cent of them being data subscribers (messaging not included). While the first billion took 19 years, this last billion only took 15 months. The significant acceleration in the last couple of years has been primarily due to the explosive growth in the developing markets led by India and China which have accounted for the bulk of the growth. Figure 1: Global mobile industry growth 2000-2011
Source: Author
In terms of revenue, mobile data has been the primary driver of growth as voice revenues are declining in almost all markets. Mobile data led by SMS and data access5 have also altered the device and network landscape. Most countries have already deployed 3G and are looking to upgrade to 4G. The insatiable
1 2 3 4 5
www.itu.int/ITU-D/cyb/app/docs/WTDC2010%20Final%20Report-%20Porgramme%202.pdf www.itu.int/ITU-D/cyb/app/e-gov.html www.itu.int/ITU-D/cyb/app/e-health.html www.itu.int/ITU-D/cyb/app/e-env.html Data access refers to the ability of the mobile device to access the Internet
Bhutan project report on emerging mobile applications opportunity demand for mobile data is forcing mobile operators to seek more spectrum or higher frequencies from government bodies, upgrade their networks, and look for ways to generate revenue from this demand. Figure 2: Global mobile technology evolution 1980-2025
Source: Author
In the next three years, mobile data subscription is expected to exceed 50 per cent. The advent of apps has helped fuel the growth in the number of data subscribers as the availability of flat fee pricing has attracted users to upgrade and try out new applications. In many countries, almost all smartphones and many feature phones are now required to have a data subscription. Figure 3: Growth in mobile and data subscribers
Source: Author
In developing countries, mobile data is primarily driven by SMS but it is starting to change as consumers buy smartphones on 3G+ networks, operators offer compelling data packages, and developers build apps
Bhutan project report on emerging mobile applications opportunity that are both useful and fun. Table 1 shows the key differences between the developed and developing country mobile apps ecosystems. 6 Figure 4: The mobile subscription distribution between developed and developing countries
Source: Author
Mobile apps have been around since the late nineties and the apps stores have been available for a quite some time as well. Operators have been offering content and applications on their app stores for most of the last decade. Table 1: Characteristics of developing and developed countries mobile markets
Developed Developing
Subscriber Penetration Network deployment Handsets Primary Usage ARPU Levels Apps for Vertical Industry
100%+ 3G/4G Smartphones, Connected Devices Apps, Web, Voice, Messaging USD 30-USD 55 Enterprise, Retail, Entertainment, Tourism
50-60% but growing fast 2G/3G Feature phones, smartphones Voice, Messaging < USD 20 Health, Financial low-end
Government entities have also taken notice and both developed and developing countries have launched services in the field of government to citizen services, education, employment services, tax payments, transportation, digital signature, elections, agriculture, disaster management, health and more.
Mobile App Ecosystem in this report refers to the group of companies participating in building the mobile apps for e.g. the operators, developers, device manufacturers, application tools providers, infrastructure providers, regulatory bodies, and others.
e.
Mobile apps usage around the world
The overall mobile apps downloads are expected to increase from over 7 billion in 2009 to almost 50 billion by 2012 growing at the rate of 92 per cent CAGR (compound annual growth rate). The revenue from mobile apps which includes both paid downloads and revenue from advertising and virtual goods is expected to increase from USD 4.1 billion in 2009 to USD 17.5 billion by 2012 at the rate of 62 per cent CAGR. Although on-deck (operator managed) mobile apps sales exceeded those from off-deck7 in 2009, by 2012, off-deck is expected to hold the lions share of the mobile apps revenue. The dynamics of the app market are quite different in emerging countries where to effectively generate revenue from significant app momentum (app downloads/active user and growth rates in some of these countries exceed those from the western markets, irrespective of the device type), creative strategies are needed to attract new consumers and different business models will be required to make the regional ecosystems viable. Figure 5 shows various mobile apps segmented by regional demographics. Overall, by enhancing discovery, improving user experience, dropping price barriers, and increasing developer revenue share, the apps ecosystem can continue to prosper. Figure 5: Mobile services across various rural and urban user segments
Utility Services for Rural and Urban User Segment
Majority of the utility services adopted by rural
Lifestyle / Entertainment segments enhance livelihood
Agriculture alerts and health support for cattle

increases the productivity of farmers
Entertainment Services Shopping & Payment Governance Education Agriculture alerts News alerts Job Listings Health support for cattle Financial Inclusion Push Email
LBS
In urban areas,
Health Support
Primary Value Proposition
Livelihood
majority of utility services are point solutions such as interview support, learn English, while few services such as job listings provides livelihood support
Rural Primary User Segment
Urban / Semi-urban
Source: Analysys Mason, 2010.
The business models for apps have evolved over time. Initially, the focus was entirely on the paid downloads or the subscription based models that bundled other forms of content like ringtones and pictures with applications.8 However, over the last 3-4 years, advertising based models have become both popular and successful with developers and the app ecosystem. In fact, for some developers, the advertising revenue on some platforms (like Android) is bigger than the revenues generated from the paid downloads.9 Some mobile players have focused on building loyal and vibrant communities which creates an audience for selling/up-selling/cross-selling virtual, digital, and even physical goods.
7
8 9
Off-deck refers to the applications that can be downloaded onto the mobile device from sites other than those offered by customers mobile operator Ringtones and graphics are not included in the definition of applications for the purposes of this report. In part, this also has to do with inefficient billing methods that often discourage consumers to complete the paid transaction.
Bhutan project report on emerging mobile applications opportunity The main forms of revenue generation for mobile apps are: 1. Paid a. b. a. b. c. Subscription In-app (within application) Impression-based Performance-based Promotion (or marketing)
2. Advertising
3. Virtual Goods 4. Up-selling/cross-selling other goods 5. Hybrid (combination of the above) For apps launched by government, the apps are either free or there is a service fee for usage to cover the cost.
f.
How governments are using mobile apps to engage with citizens
ICT plays a significant role in the development, growth, and economic success of any country. It plays a particularly important role in the evolution of a developing country. Technology can not only help solve some critical problems such as healthcare but also provide an efficient tool to the government to reach its citizens. Given that the penetration of computers in developing countries lags mobile penetration, mobile provides the most effective medium for governments to reach their citizens with services and important messages. This can be accomplished by using the tools such as SMS, mobile websites, and mobile apps and services. Many countries have been using these tools to inform, engage, and provide services to its citizens. The ITU M-Government report10 lists several government initiatives from around the world that show how mobile services are being used by governments to connect with their citizens, and some examples of this are given in Table 2. Table 2: Mobile applications launched by governments in different countries
Application Type Government to Citizens Countries Canada, Bahrain, Turkey, Korea, Spain, Italy Singapore, China, Oman, Hungary, Malta, Korea UK, Mexico, China, Netherlands, Philippines Education Employment Services Inquiry Services Tax payments Transportation Digital Signatures Elections Philippines, India Brazil, Sweden, Philippines Indonesia, Estonia, Spain, US India, Ireland, Korea, Spain Estonia, Finland, Austria Sweden, Austria France, Indonesia, Kenya, UK, Venezuela, Estonia, Korea Apps Wireless Portal SMS alerts Emergency alerts SMS apps
10
Source: M-Government Mobile Technologies www.itu.int/pub/D-STR-GOV.M_GOV-2011
for
Responsive
Governments and Connected Societies
Bhutan project report on emerging mobile applications opportunity Some of these application types are informational only to keep citizens aware of a process, ensuring transparency and accountability, while others try to tackle some basic need or issues in the region, like education, employment services, or financial services. Others aim to get more civic participation like election applications. Both developed and developing countries have embraced mobile as a channel for communication because it provides the best reach amongst all other media channels. Examples of such mobile apps are shown in Figure 6, 7 and 8. Figure 6: Jobs app
Source: iFedJobs (US Federal Government).
Figure 7: Travel app
Source: Gyeonggi Provincial Government in South Korea.
Bhutan project report on emerging mobile applications opportunity Figure 8: Disaster management app
Source: FEMA (Federal Emergency Management Agency), United States
Developing countries are also taking advantage of SMS and Interactive Voice Response (IVR) as they are better vehicles for communication due to device demographics. For example, Airtel in India launched its SMS based m-health pack where people can subscribe to various categories of alerts genres such as women, men, cardiac, diabetes, Tuberculosis, swine flu, typhoid, weight and diet, beauty and skin care, earthquake and tsunami alerts, etc. Over the next few years, the role of mobile enabled ITCs (Information and Communications Technology) will be central to any citizen application available from their government.
g.
What does it take to make the application ecosystem robust?
The gains mentioned in this report will not be realized unless the various players in the ecosystem come together to lay out an implementation roadmap in their respective regions. Laying out a vision is one thing, implementing it efficiently is another. There are significant hurdles to realizing an mServices (mobile enabled services) platform or service. First and foremost, such efforts require investment. How do such projects get funded? Whats the financial incentive? Is it a commercially-driven endeavour or something that is funded by government? Who is going to drive it? Answers to such questions will dictate the pace of deployment over the next ten years. In addition, the use of wireless technology for health-care, emergency services, agriculture, education and others will raise serious questions of security, privacy, regulation, legality, public policy, and cost. The introduction of mobile technology into the equation will help decentralize the efforts, infrastructure, and the costs. For instance, cell phones can turn into data collection devices in the case of a weatherbased emergency, health-care services can be provided to remote locations using mobile, and instead of going to a training class or school, lessons can be downloaded and completed in locations not requiring travel. Since, more resources can be pulled in and the available resources can be brought to more people, this helps lower the infrastructure costs while massively increasing the service and data availability.
Bhutan project report on emerging mobile applications opportunity Some entities will find their power and control in the ecosystem redistributed. Many will embrace it as an opportunity or a new reality, but some will resist the change fiercely and force the pace to slow down. How the information and success stories are shared and replicated will also be a key in realizing the vision of an mServices platform. Strong leadership is needed to distil and distribute information and best practices, and to promote the development of shared infrastructure to minimize costs. To reach the rural markets around the world, sub-USD 20 or free handsets will be needed. Regions where starvation is the primary challenge are not going to embrace mobile technology until the most basic needs are met. What business models will enable such deployment? Better user experience and increased access to information on mobile devices will also lead to changes in consumer behaviour and expectations. How fast will the various industries collaborate to respond to such needs?
Private-public partnerships
One of the most important elements to have an impact on the evolution of the mobile services platform, irrespective of the applications that are built on such an infrastructure, will be the collaboration between private and public enterprises. Profit-driven companies, research institutes, government agencies, notfor-profit entities, and charitable organizations each bring specific goals and talents to the creation of a coherent mServices platform. Partnerships between these organizations will be essential for the following reasons: Funding Without significant funding and focus, even the simplest of goals face challenges. The various participants in the ecosystem need to come together to serve common goals that impact people in their community. Financial and technical resources need to be pulled together to ensure that the best teams are in place and that resources are not wasted due to duplication of efforts or poor information dissemination. The deployment of emergency services in the state of Andhra Pradesh in India is a good example of private-public collaboration and funding to bring about change and have a lasting impact. The other two models of funding are either government or private. The Bhutan Foreign Direct Investment (FDI) policy allows for 100 per cent foreign investment. More awareness might be needed before the latter takes hold. In the interim, government has to drive projects either through initiating these projects on their own or by cultivating win-win partnerships with the private sector. Technical collaboration During the 2006 wildfires in San Diego, United States, that led to the biggest evacuation in the countrys history, the emergency command centre didnt have the capability to send SMS messages to citizens on the basis of location or severity of impact. The process required to work with the operators wasnt in place and would have taken weeks to work out. Similarly, the scientific community knew about the 2004 South-East Asia Tsunami hours in advance but didnt have a way to communicate to people in the impact zone. It is imperative that local agencies and operators work on a plan to enable instant communication from emergency command centres. Education and awareness Even the best technology and carefully crafted plans will fail unless there is sufficient education and awareness about the initiatives, capabilities, and expected responsibilities of those in the evolving communications landscape. Efforts should be put in place to make citizens aware of the various options and information available and how to use such resources. Regulations -The government and related entities have the responsibility to foster growth and remove impediments by keeping policies and regulations up-to-date. With respect to mobility, work needs to be done to ensure market competition, protect customer privacy, secure sensitive information, and clearly delineate liability as technology becomes more and more ingrained in our daily lives. As commerce will inevitably move towards mobile, the threat of fraud, money laundering, identify theft, and privacy will be of greater concern. Adequate laws and protection need to be in place.
3.
Key observations
In November 2011, the ITU team spent time with various ministries and key stakeholders in Bhutan to better understand the landscape, the requirements, and the needs of the local mobile market. This section discusses some of the observations from the mission. Mobile is the biggest digital channel Not surprisingly, mobile far outpaces other channels for information distribution and outreach. Compared to over 420 000 mobile subscriptions, there are only 40 000computers and 100 000 TV sets in Bhutan.11 As such, mobile represents a big opportunity for both the government sector but also the private sector in reaching people far and wide. 3G is in its infancy While 3G has been launched by both the operators, the uptake has been tepid due to high prices of devices and data services. For wide adoption of mobile apps, a robust 3G data strategy is essential or performance and affordability issues will drive consumers away from using the data services and apps. Limited mobile data/apps services Data applications are generally limited to SMS which is used by only 20-30 per cent of the consumer base. Mobile apps ecosystem needs to be cultivated and the awareness of such apps will need to go up for wider adoption. Lack of deeper industry KPIs Although there were some basic industry metrics like subscriptions are available, a deeper understanding of usage and subscriber demographics is lacking at both the operator and the regulator level. More emphasis on gathering data is required so any strategy can leverage such knowledge and build targeted solutions rather than building solutions in vacuum. G2C initiatives in progress but mobilization of services is not clear Government has an extensive ICT initiative that relates to government-to-citizen (G2C) services, however, the role of mobile and how some of the services might be mobilized is unclear. Community centre network: a great resource There are 20 districts with 205 villages in Bhutan. Government is investing heavily in building a community centre network equipped with computing resources that serve the local (and remote) communities of Bhutan. This resource along with some trained local experts can help educate the people on mobile apps and their usage, answer questions, and help them embrace mobile data services at a much faster pace than would otherwise happen. Limited ICT resources One of the areas of development is ICT resources. There are roughly 350 individuals who can qualify as a resource, as such most of the projects are outsourced with the internal resources involved in managing the project instead of actively participating in the development process. Even private software companies severely lack competent mobile apps programmers and developers. Mobile apps roadmap needs to conform to the existing guidelines and roadmaps There has been significant work done in developing the Bhutan ICT roadmap and the Gross National Happiness (GNH) guidelines (see Section 8). Any mobile apps project and future development needs to conform to these two guiding principles and operate within the confines of the vision set forth by these two documents.
11
BICMA, 2011.
10
Bhutan project report on emerging mobile applications opportunity Capacity building is essential As indicated above, the number of active mobile developer resources are fairly limited in Bhutan. To foster and cultivate a sustainable mobile applications industry, the public-private partnership needs to cultivate the applications developer industry locally, foster competitive environment and reward and encourage entrepreneurs. Network capacity needs to be expanded The mobile networks might not be built to handle peak demands. Many users expressed frustration with the slow speeds and the lack of consistent performance. Expansion of network capacity can address network clogging, congestion and service downtime. Hence it can provide a better user experience. Localization is a challenge While most of the urban population is fairly conversant with English, citizens in rural areas are not. However, localization is a challenge although the Ministry of Information and Communication (MoIC) is working on solutions. For some applications, text-to-speech solutions will be needed. Mobile health opportunities The Ministry of Health has considerable experience in carrying out various telemedicine projects and are currently involved in two operational projects. The Health Help Centre project has produced immense impact in terms of utilization. The Ministry of Health has shown a positive attitude towards ICT adoption to enhance the capacity and feels m-health will add value. The ICT policy of the government has an agenda of using mobile applications to improve service delivery for the citizens including health. Call-centre synergy and consolidation opportunity There are some good existing frameworks and case studies in place like the healthcare call-centre that helps facilitate the health emergency and regular medical calls from citizens especially in rural areas. The service is mobile enabled so that workers in the field can keep the call centre abreast of the progress in real-time. Such a technology setup can be easily extended to disaster management, other health services, and agriculture services. Ministry of Agriculture has an interactive voice response (IVR) app that connects users to the pricing database. A mobile app can leverage the existing framework and database setup to help build the applications quickly. Set of centralized databases can be leveraged across applications Since many of the government services require user authentication, these applications can leverage a common set of database resources for authentication. While banks, operators, and government have different needs for such databases, the basic authentication for such services can be leveraged through a single API (application programming interface) call. It will help to simplifiy the authentication process and will also give valuable insights into the those using the various mobile data services. A platform approach is needed for mobile apps Bhutan is a relatively small country and while the various ministries will have different requirements and needs with different timelines for mobile application development, there is an opportunity to consolidate some of the underlying requirements such as authentication, security, server, messaging, etc. under a common platform. This will enable the reduction of the cost of these solutions and as new ministries are looking to launch mobile apps, and they can leverage the existing framework.
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4.
State of the Bhutan wireless market: Challenges and opportunities
Bhutans mobile industry has grown rapidly in the last four years and is similar to neighbouring countries as far as mobile penetration is concerned. With roughly 428 000 subscriptions, mobile penetration has reached nearly 60 per cent just behind India, China, and Pakistan and ahead of Bangladesh. Bhutan also has one of the highest mobile to fixed telecom subscriptions ratio in the region meaning that mobile is the prime driver of telecom growth in the country. Figure 9: Mobile penetration of developing countries in Asia
140% 120% 100% 80% 60% 40% 20% 0%
Source: Author
Bhutans mobile market is controlled by two operators government backed BT and privately owned enterprise Tashi Telecom. BT has roughly three times the subscribers compared to Tashi. While 3G was launched by both operators in the last two years, the market is predominantly 2G because of low data usage. And just like other countries in the region, the market is primarily prepaid with less than 10 000 postpaid subscriptions. The average revenue per user (ARPU) is in the vicinity of USD 8 which is on the higher end of the scale for countries in the region. Approximately 20 per cent of the subscription base uses smartphones. Due to a 30 per cent surcharge on such devices, and most are bought from outside Bhutan. iPhones and Android devices are in use but not through official channels. Bhutans terrain is quite mountainous and difficult to navigate. As such, mobile devices will continue to be the primary way to connect people especially in remote villages and communities that are often days away from the capital city, Thimphu. Mobile devices are also going to be the primary vehicle for government and private interests to connect with civilians on a regular basis as well as during emergencies.
12
Bhutan project report on emerging mobile applications opportunity Figure 10: Bhutan telecom subscriptions
500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 2003
Source: BICMA, 2011.
Mobile Fixed
2004
2005
2006
2007
2008
2009
2010
2011
Figure 11. Bhutan mobile market growth

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mobile as % of Telecom Subs
Source: BICMA, 2011.
% Mobile Penetration
As such the mobile market presents a significant growth opportunity in Bhutan and could have a transformative impact on the economy, including social growth, communications, and civic participation. So far the growth has been primarily in the area of voice communications. Data usage is in its infancy.
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Bhutan project report on emerging mobile applications opportunity Roughly 20-30 per cent of the consumers use SMS, amounting to < 1 message/subscriber/day (comparatively, consumers in the Philippines send messages at the rate of 18 messages/subscriber/day). Mobile data usage is tepid due to high data cost, lack of wide availability of cheap smartphones, a weak application market, and slow growth of the 3G network which will be essential for accelerating usage and adoption. To foster growth, the following recommendations and suggestions are made: Enable the use of cheaper smartphone devices. Operators should be allowed to bundle and offer handset packages without a surcharge. Mobile smartphones and tablets should be classified as computers and the 30 per cent surcharge should be reduced or eliminated. Lower data tariffs to promote usage. As consumers see the benefits of being connected and of accessing anywhere-anytime data services, usage will evolve from being seen as luxury services to necessity. Promote local application developer ecosystem. While apps developed for a wider market are available, the mobile data/app market will not grow unless there are locally relevant applications and services. Government and the private industry should take steps to encourage entrepreneurs to build applications, compete on quality, and be rewarded on successful implementations. Operators will have to play a strong role in such an endeavour. Look at application areas that can benefit from being customized in Dzongkha. While most of the urban population is quite conversant and fluent in English, to bring the broader population into the mobile data realm, applications will have to be adapted to local language as well as iconography for visual implementations. For critical application areas such as agriculture and disaster management, IVR-based applications can serve as a good intermediate step. Improve upon the reliability and performance of the data networks as well as the applications infrastructure. If consumer expectation can be met then mobile services usage and adoption will increase. Build local talent. The Bhutan IT market is relatively small, so bringing in overseas talent or outsourcing is not an ideal option. Since this is going to be a long-term sustainable industry, it is best to focus on growing the developer ecosystem locally and have enough work and projects for them that the ecosystem stays viable and sustainable. Build network for capacity especially for critical applications such as disaster management, health, and finance. The network should be robust enough to cope with sudden increases in traffic. Foster research and development on mobile apps by providing research grants, seed funds and business development funds. Bhutan Innovation and Technology Centre (BITC) in the IT Park can be leveraged and used as an innovation test bed.
5.
Key stakeholders in the mobile applications market in Bhutan
There are several key stakeholders in the development of mobile applications market in Bhutan. Several of the team members also participated in the ITU Mobile Applications Workshop held in Thimphu on 21 November 2011. Department of Information Technology and Telecom Regulatory Authority BICMA (Bhutan InfoComm and Media Authority) Mobile Operators Bhutan Telecom (B-Mobile) and Tashi InfoComm Department of Revenue Department of Health
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Bhutan project report on emerging mobile applications opportunity Department of Agriculture Department of Utility NSB (National Statistics Bureau) RMA (Royal Monetary Authority) Application Developers
The different ministries have specific needs in terms of applications and services that they want to provide to citizens. Regulatory authorities such as BICMA and RMA have the responsibility of overseeing the policy framework. Mobile operators play a critical role in connecting the fabric of applications to the consumers via the networks they maintain and the devices they sell. Though application developers are a very small community in Bhutan, they are likely to play an increasingly important role in the ICT growth in Bhutan.
6.
Priority mobile application areas
ITU in consultation with stakeholders in Bhutan agreed to focus its attention on four key areas that were prioritized collectively. The areas of interest are: 1. Mobile Health 2. Mobile Agriculture 3. Mobile Finance and Banking 4. Mobile Disaster Management and Communication
1.
Mobile health
Advances in mobile communications and medical technologies have facilitated development of innovative low cost mobile e-health tools having potential in applications for rural healthcare. Using ICTs and especially mobile eHealth applications is a promising way to improve user-friendliness of low cost mhealth tools for effective healthcare delivery by primary healthcare workers and also for remote monitoring and data collection for surveillance. Mobility as such brings in added value of continuous availability and timely information access. One additional benefit of ICT based solutions is the possibility for various types of customization, allowing support for a wider set of application requirements than was originally planned, and meeting changing needs and targets of individuals or larger user segments. Telemedicine is the use of medical information that is exchanged from one treatment site to another via electronic communications. The term tele-health is closely related to telemedicine. It describes remote healthcare delivery that may or may not include clinical services. Both telemedicine and tele-health may comprise videoconferencing, transmission of still medical images, document sharing, and remote monitoring of vital signs. Recent evolution of wireless communication technologies have enabled telemedicine systems to operate even in the remotest place for rural health practices hence expanding telemedicine benefits, applications, and services. In developing countries, the majority of the people are living in the rural and remote locations where even the basic facilities are not available. Due to various logistic reasons, public health system in Bhutan has not been able to provide basic medical services even at the level of first encounter i.e. Basic Health Unit. Recently, technical developments have taken place over and above the standard telemedicine system which has led to the development of ICT based tools using mobile broadband network enabling health systems to deliver care at remote health delivery points. Technical developments include: Computer systems: Low cost atom based processors were used for deploying large numbers of telemedicine terminals. Current technologies like unicast/ multicast works even using low bandwidth and resources.
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Bhutan project report on emerging mobile applications opportunity Communication technology: Low cost communication facilities can now be the alternative solution for transmitting the data, voice and video to the nearby telemedicine enabled service provider. With the advancement of communication technologies people are now gradually thinking of alternative methods like using both wired in the form of ADSL broadband and wireless broadband provided by various service providers in the form of high speed broadband plug in. Software based video conferencing system: mobility and lowering cost of devices can only be achieved by replacing hardware with software based a video conferencing system. Various software based video conferencing tools like webex, home meeting, people-link, vennfer and vidyo conferencing systems are now integrated in m-health tools. The minimum bandwidth required for hardware based video conferencing is 256 kbps but with software solution video conferences could be possible with lower bandwidth.
Evidence supporting m-health benefits

m-health applications show great promise in improving health services and outcomes. However, there is a lack of evidence concerning the wide-scale impact of m-health projects. The limited scale and scope of evaluation in m-health projects is partly due to the newness of the technology but also to the desire to have results quickly. A robust evidence base about the effectiveness of mobile health technology is important not only for cost-effectiveness and scale-up purposes, but also to share information about what works and what doesnt work. John Hopkins form the Bloomberg School of Public Health has launched an m-health toolkit (toolkits@k4health.org) which gathers evidence by carrying out literature search and provides links to abstracts of journal articles that share results of robust randomized trials of a number of m-health projects. Some examples are reproduced here: 1. An Analysis of mHealth in Maternal and Newborn Health Programs and Their Outcomes Around the World12 A total of 34 articles and reports contributed to the findings with information about the use and limitations of m-health for prenatal and neonatal healthcare access and delivery. Health systems have implemented m-health programmes to facilitate emergency medical responses, point-ofcare support, health promotion and data collection. However, the policy infrastructure for funding, coordinating and guiding the sustainable adoption of prenatal and neonatal m-health services remains under-developed. The integration of mobile health for prenatal and newborn health services has demonstrated positive outcomes, but the sustainability and scalability of operations requires further feedback from and evaluation of ongoing programmes. 2. The effect of mobile phone text-message reminders on Kenyan health workers' adherence to malaria treatment guidelines: a cluster randomized trial13 Health workers' malaria case-management practices often differ from national guidelines. The study assessed whether text-message reminders sent to health workers' mobile phones could improve and maintain their adherence to treatment guidelines for outpatient pediatric malaria in Kenya. With a computer-generated sequence, health facilities were randomly allocated to either the intervention group, in which all health workers received text messages on their personal mobile phones on malaria case-management for six months, or the control group, in which health workers did not receive any text messages. The study showed, in resource-limited settings, malaria control programmes should consider use of text messaging to improve health workers' case-management practices. 3. The development and evaluation of a PDA-based method for public health surveillance data collection in developing countries14
12 13 14
Maternal Child Health Journal, 2011. Lancet, 2011. International Journal of Medical Informatics, 2009.
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Bhutan project report on emerging mobile applications opportunity Epidemiological data and Information are often used together by public health agencies around the world, particularly in developing countries, to meet their needs of low-cost public health data management; however, the current open source data management technology lacks a mobile component to meet the needs of mobile public health data collectors. The goal of this project is to explore the opportunity of filling this gap through developing and trial of a personal digital assistant (PDA) based data collection/entry system. It evaluated whether such a system could increase efficiency and reduce data transcription errors for public surveillance data collection in developing countries represented by Fiji. A generic PDA-based data collection software eSTEPS was developed. The software and the data collected using it directly interfaces with EpiData. A field trial was conducted to test the viability of public health surveillance data collection using eSTEPS. The design was a randomized, controlled trial with cross-over design. The trial results prove that eSTEPS is a feasible solution for public health surveillance data collection in the field. Several deficiencies of the software were also identified and would be addressed in the next version. 4. Case Study from India: Maternal and Child Tracking System15 When a mother dies, children lose their primary caregiver, communities are denied the paid and unpaid labour, and countries forego her contributions to economic and social development. A woman's death is more than a personal tragedy--it represents an enormous cost to her country, her community, and her family. Any social and economic investment that has been made in her life is lost. Her family loses her love, her nurturing, and her productivity inside and outside the home. More than a decade of research has shown that small and affordable measures can significantly reduce the health risks that women face when they become pregnant. Most maternal deaths could be prevented if women had access to appropriate health care during pregnancy, childbirth, and immediately afterwards. Keeping this philosophy in mind the National Rural Health Mission, Ministry of Health and Family Welfare, the Government of India has launched web based system for tracking pregnant mother and new born to ensure institutional delivery and care of new born.
2.
Mobile agriculture
Agriculture in Bhutan has a dominant role in the economy of the country accounting for over 20 per cent of countrys GDP. The primary goals of agriculture in Bhutan is to raise the per capita income as well improve self-sufficiency of people living in remote and rural areas. Farmers who sell their produce are looking for accurate pricing information, have questions about pests and weather conditions,
Learning from other implementations

Figure 12 shows a mobile app that provides guidance on current effective management options for insects and other arthropod pests affecting soybeans growth in certain states in the United States. Figure 13 shows a mobile app from Soilweb which is GPS based, giving real-time access to USDA-NRCS soil survey data. The application retrieves graphical summaries of soil types associated with current iPhone location, based on user defined horizontal precision. Sketches of soil profiles are linked to their official soil series description (OSD) page. Figure 14 indicates a mobile app from KIS Future used to track prices on commodity futures and options for grains, livestock, etc.
15
http://nrhm-mcts.nic.in/MCH, http://e-mamta.gujarat.gov.in
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Bhutan project report on emerging mobile applications opportunity Figure 12: Mobile app for pest control information
Source:?
Figure 13: Mobile app for soil information
Source: Soilweb
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Bhutan project report on emerging mobile applications opportunity Figure 14: Mobile app for commodity futures and options
Source: KIS Future
3.
Mobile finance and banking
Many of the citizens in the developing countries dont have access to banking and financial services. Given that most of these people have mobile phones, it makes perfect sense to use mobile as a vehicle for conducting financial and banking transactions. There are three key challenges that need to be addressed in any mobile banking/payment initiative:
Building the agent network

Looking at other similar initiatives around the world, one of the key success factors is building a robust agent network that is motivated to work hard to create and fulfil demand, that is connected deeply into the fabric of the society and there is an incentive for them to work hard and be a fierce advocate of the service not only because it is good for the citizens but also because it is good for them personally. Without the proper incentives or the adequate reach, such initiatives flounder before they can get any traction. Typically, operators and the postal department are in the best position to leverage their existing distribution network.
Policy of telecom and banking collaboration

Mobile operators and financial institutions both have a stake in a robust mobile finance and banking ecosystem. Financial institutions want to extend their reach and services to the underserved or citizens who do not have their own bank account, and mobile operators want to facilitate the transactions, help in mitigating risks and fraud and provide a reliable experience so that consumers can keep on using the service without reservations. Collaboration of both sectors is therefore essential.
Awareness of services
It is critical for any new service or application to be simple to use and reliable so that customers can expect it to work most of the time. Given that the application is of a financial nature, privacy and security are of paramount concern for consumers. As these services spread, users should have easy access to help and answers to basic questions, as well as to be able to report issues when needed.
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By far the biggest success story in the field of mobile finance and payments has been that of MPESA in Kenya. Some of the salient features that made it successful are: lack of alternatives/traditional banking infrastructure; simple implementation using SMS; safaricom domination for coverage and will to implement a nationwide solution; incentives for Agents, distribution network of 32 000 agents key to success training, incentives, education; wide availability; consumer motivation as a real problem was solved; M-PESA deeply embedded in everyday life; service focus on customer loyalty rather than application profits
The Philippines has also been a pioneer in this field, launching mobile money services over the course of the last decade. The salient features of its service are: launched by Smart Money (2001), Globe Gcash (2004); 75 per cent of the population do not have their own bank account(unbanked); using it for savings, insurance, loans; 50 per cent of active mobile users are unbanked 26 per cent of active users have incomes below USD 5 per day On average, unbanked mobile money users spend USD 1.9 more per month than their peers.
d.
Mobile disaster management and communication
No country, developed or developing is immune to natural or man-made disasters. However, mobile technology will have a significant impact on how we detect, monitor, analyse, and respond to small- and large-scale disasters. One of the areas where mobile technology will have the most significant impact is emergency response. The always-on capability of mobile devices will allow a channel of communication with the populace in an emergency situation. The channel can not only be used to inform but also to guide the affected in a very personalized way, and in the process save millions of lives. Mobile technology will have an impact in the following areas of public safety: Early detection Just like life-threatening diseases, the chances of survival from a disaster are greatest if detected very early. To gain an upper hand on any crisis, the command-centre must be in a position to take inputs from a variety of sources human, machine, and sensors through a variety of channels, including mobile devices, emails, phone calls, etc. By using such an infrastructure of early detection, many serious crises could be averted, lowering the human cost. Data gathering the biggest impediment in effective command-and-control during an emergency is lack of data. Command centres are often operating in the dark without any real-time feeds that can help them prioritize and direct resources effectively. By placing various sensors in the impacted area as well as using the available cellular connections as sensor objects, officials will have a much better grasp on situational awareness that can have significant impact on planning and execution of a strategy. For example, by having the data inputs of GIS, GPS, wind flow, temperature, humidity, fuel load, topology, satellite imagery, citizen response, traffic status, and evacuation response, first responders to fires can be better prepared to quickly grasp the situation and respond appropriately.
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Bhutan project report on emerging mobile applications opportunity Modelling and predicting disasters Disasters dont announce their arrival. As such, significant effort must be put in to model and predict behaviour of emergencies such as epidemics, terrorist attacks, wildfires and earthquakes. Mobile technologies can help officials form an evacuation plan and inform all affected citizens by feeding modelled data into a real-time emergency response. Guidance in emergency response The effectiveness of a response is determined by how rapid it is and how good the communication is. By coordinating well with application platforms and operators, command centres can issue very specific guidance and information to end-users so that they know exactly what to do, which route to take, how to contact the authorities, etc. The guidance platform is not only for the end-users, but for the authorities as well. They will be better able to coordinate their response by tracking their assets and resources, providing up-to-the second status reports, and most important, based on real-time modelling, what to expect in the next few minutes and hours.

The i-mode Disaster Message Board Service launched by NTT DoCoMo was one of the first disaster management mobile services of its kind. It was launched in 2004 in Japanese and English languages. The purpose was simple to permit i-mode subscribers (their mobile data users) within the disaster area to place and check messages in order to inform relatives and associates of their security and situation. The goal and desire was that the timely information released in the public domain will help reduce panic and network congestion during time of emergency. It was to help both the authorities and citizens. Similarly, in UK and Hong Kong, China, SMS based alerts applications were launched to alert consumers about the threats within 30 seconds of the alert being received by the police. During the SARS incident, the Hong Kong, China, Government used the SMS channel to send text messages to 6 million mobile phones to dispel any rumours or misinformation about the planned government action to stop the syndrome. Other countries like Czech Republic, France, and Turkey have used mobile to release information in postdisaster scenarios as well. An effective disaster management system requires coordination between the various agencies and ministries and the mobile operators to ensure delivery of the right message at the right time. From simple applications such as alerts to releasing timely information can go a long way in assisting distressed citizens in desperate times of need.
7.
Mobile apps and GNH
Bhutan has pioneered the concept of Gross National Happiness (GNH). The GNH commission is tasked with the responsibility of ensuring that any major initiative is looked at through the lens of the 72-point GNH programme to ensure that it helps broad national goals set by the planning commission as well improves citizens lives across nine key dimensions. Table 3 illustrates how the four key application areas of mobile health, mobile finance and banking, mobile disaster management, and mobile agriculture intersect the GNH.
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Bhutan project report on emerging mobile applications opportunity Table 3: Mobile apps and GNH
Disaster Management Mobile Agriculture
Psychological well being Ecology Health
General Well Being Names and species of plants and animals Self-Reported Health Status # of healthy days in the past 30 days BMI Knowledge of transmission of HIV/AIDS virus Duration for a child to be breast fed only Walking distance to health care centre
Living standards Community Vitality Good Governance
Purchase of second hand clothes Victim of crime Amount of donation in cash value Performance of central government in reducing income gap
Additionally, these apps can help increase commerce, provide better healthcare services while improving the reach of such services, and save lives in disaster and emergency situations.
8.
Mobile and ICT roadmap
The Ministry of Information and Communications outlines its vision16 as follows: The vision of the Bhutan information sector (with MOIC at the helm) is to nurture an information society bonded by a shared national consciousness. This consciousness will be the foundation of a national identity that is built on the values of Gross National Happiness. In the Bhutan ICT Roadmap report, the ICT Vision for Bhutan is laid out as an ICT-enabled, knowledgebased society as a foundation for Gross National Happiness, with the following key outcomes: ICT for good governance
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Transparency and Accountability Effectiveness and Efficiency Citizen and Business Centricity Citizen Participation and Engagement ICT Lifestyle
ICT for Bhutanese Information Society
Vision for Information Society Bhutan in the 21st century.
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Mobile Finance
Mobile Health
Bhutan project report on emerging mobile applications opportunity Equal and Ease of Access of Information Learning Society Preserving, Evolving and Promoting Culture Environmental Consciousness Develop ICT Infrastructure Promote Economic Development Innovation and Creativity Industry/Business Sector and Institution Leveraging ICT
ICT as a key enabler for sustainable economic development
The application areas of health, finance, disaster management, and agriculture are chosen for their impact and they also conform to the most immediate needs of Bhutan and are aligned with the ICT goals under the GNH framework. Mobile disaster management will offer good governance by enabling the government to be more responsive, efficient, and effective under emergency situations when lives are at risk and the need for information dire. Mobile health will provide equal and easy access to information as well spread learning faster. It will also promote ICT lifestyle enabling Bhutan to adopt an information lifestyle much quicker. Mobile finance will promote economic development through innovation, spread the banking infrastructure to the unbanked and the underserved by leveraging the ICT framework. Agriculture is one of the most critical industries in Bhutan that has a direct impact on commerce and the revenues. By providing a mobile application catered towards the agriculture sector, timely information can be made available for better decisions and higher overall revenue.
9.
Technical architecture and best practices
Given that there are four distinct projects, one might consider a more modular approach of having the four entities build their own application but considering the size of Bhutan (approximately 700 000 citizens) and that the developer market is still immature, a common services framework approach will be most suited for the market. In such a scenario, the various stakeholders can share commonly required components such as messaging, security, webserver, authentication, and others while building the application specific technology on top of the common layers. The middleware platform is key to building innovative services in the mobile ecosystem. In this section we will discuss a high-level framework that can form the basis of developing new applications and services. The best way to think of the long term mobile services platform is to imagine a modular and decentralized framework that enables plug-and-play functionality and integration through software-as-a-service (SaaS) architecture. In this framework, each module is available on-demand (as opposed to a tedious integration effort with individual or multiple operators or other service providers). As shown in Figure 15, a mobile services framework is built on an operator network (which in addition to mobile might also have fixed online and cable networks). The operator network may be built on different access technologies, from mobile standards such as WCDMA, LTE, EV-DO, 802.11x, and WPAN to fixed-access networks like cable, DSL, or FTTH (fibre to the home). On top of the access layer is the service enablement layer a set of network features that help build applications and services modules on top. The service enablement layer will have the most fundamental capabilities enabled by the network such as messaging and browsing, security and authentication, payment, banking, and billing, personalization and customer relationship management (CRM), video and music streaming, location, presence and contextawareness, and much more. Using these capabilities, operators, third parties and other service providers can then build application modules that can either be operator-specific or can run independent of the operator. In an ideal world, the capabilities of the network will be abstracted from the access network
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Bhutan project report on emerging mobile applications opportunity such that applications can take advantage of these features without time-consuming and complex integration. By building modular components at each level and by abstracting and exposing the service enablement layer to third parties, operators can help build a compelling framework that accelerates the introduction of new services and applications. Figure 15: Mobile services framework
Source: Author
a.
Underlying infrastructure and consumer expectations
There are two key infrastructure layers whose reliability and performance is critical to the overall adoption of mobile apps in Bhutan. The first layer is the access layer for mobile data services GPRS/WCDMA layer needs to perform reliably and over regulatory/industry accepted KPIs (key performance indicators). It should also be able to withstand peak demands in case of emergency or peak service demand. The second layer is the suite of basic modules such as messaging, authentication, billing, security, analytics, etc. Since these components will form the bedrock foundation of the mobile apps ecosystem in Bhutan. These modules should be able to scale to demand, the codebase should be kept to up-to-date, and the enhancements, revisions, and upgrades should be quickly approved.
b.
Platform interoperability
Since the recommendation is to use a common platform for the Bhutan mobile apps infrastructure, platform and module, interoperability is going to be essential for this strategy to work. For example, there might be multiple user databases one with the operator, one with the disaster management system, one with the Ministry of Health, etc. To avoid duplication, the applications run by different organizations using these databases should be able to interoperate for basic things like authentication, messaging, etc. This will allow quicker time to market and reduction in cost structure for any new app that is launched.
c.
Interactive voice response
Interactive voice response (IVR) applications might be required to cover rural and portions of the population that might not be conversant with English.
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10.
Bhutans mobile app landscape and action plan
With the right incentives, policies, and initiatives; Bhutan can accelerate the growth of mobile data and the introduction of mobile data apps into the market. However, the present state of the private sector means that the government will have to play a significantly stronger role in jump starting the market. This section of the report discusses the recommendations around technology, policy, and ecosystem development that can enable a more robust mobile data apps infrastructure in Bhutan.
a.
Whats present and already working?
With almost 60 per cent mobile penetration, a good foundation for launching mobile apps has been laid. Given that a good majority of the population can understand enough English to interact with mobile apps, this can help kick-start a suite of apps without looking to launch apps in multiple languages initially. Also, there is already a basic framework in place in some of the ministries for mobile apps like the IVR app run by the Ministry of Agriculture and the mobile app run by the Ministry of Health. Some basic framework also exists for some of the areas of interest like the regulations for branchless banking in Bhutan by the Royal Monetary Authority in Bhutan.
b.
Recommendations and suggestions to build a thriving mobile apps economy
Bhutan can accelerate its growth towards a thriving mobile apps ecosystem by working on a set of policy, technology, and ecosystem development goals over the course of the next 12-24 months. 1) Establish a central coordinating authority Given that the mobile apps initiative is in its infancy, resources are constrained, and a lot of the ministries will be seeking similar functional requirements for their specific applications, a central coordinating authority should be designated to coordinate the development and evolution requirements, the launch and communication of the government-to-citizen mobile apps. Given that the MoIC is at the centre of many of the ICT initiatives, it makes sense to have MoIC coordinate the development of apps amongst the various government ministries. The role will encompass the following: a) Form a committee to draw up the roadmap for commonly used modules. During the first phase, the focus should be on messaging and authentication since virtually all apps will use this functionality. The goal is to have all the ministries use a common framework to build their own applications where feasible. The committee would consist of representatives from the concerned ministries (with the participation of at least the following ministries Health, Disaster Management, Financial Regulator, and Agriculture), the two operators, MoIC, and any development firms that might be involved in building the modules. The role of the committee will be to gather the requirements and formulate a product roadmap that incorporates and prioritizes the requirements from disparate ministries. The committee will also be responsible for resolving conflicts and competing requirements. Additionally, the committee will ensure that the functional components will be able to scale with future demand. The committee will maintain the documentation of functional requirements and APIs, and best practices. The committee or individuals from the committee will also act as advisors to other ministries on the specific mobile apps requirements that are planned by other government bodies/ministries so as to minimize repetition and help coordinate similar efforts to effectively maximize developer resource output.
b)
c) d)
e) f)
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Bhutan project report on emerging mobile applications opportunity It will be important that central coordinating authority is quick in making decisions, is efficient in considering the requirement requests, and doesnt become a bureaucratic roadblock for others. 2) Build on existing policy framework There are already a few regulatory and framework documents in place namely, Vision for Information Society Bhutan in the 21st century Regulations for branchless banking in Bhutan by Royal Monetary Authority of Bhutan Bhutan ICT Roadmap
The mobile apps framework needs to build on the guiding principles laid out in these documents. 3) Actively involve mobile operators The role of the mobile operators will be critical to the development, launch, and promotion of these applications. In some of the apps like disaster management and financial services, their role will be central. For mobile disaster management, the app should rely on operators ability to locate a mobile device based on cell-tower or GPS and send the necessary message during an emergency. For financial services, mobile operators should be allowed to: operate as non-bank branchless banking financial service provider; have the financial resources to launch the services and compete in the market place; offer some other services to competing entities like the banks e.g. fraud prevention, authentication, profiling, etc.
For other apps, mobile operators can act as an authentication clearing house for verifying the subscriber before and during a given session or transaction. 4) Focus on enabling and opening up the key infrastructure building blocks Since both messaging and authentication will involve the operators, it will be important to get their input into the process of how these two modules will work seamlessly with both the operators and hide the complexity of different networks from the application. As more components are added, the goal should be to build them so multiple parties can use them using open APIs. The APIs should be flexible enough for simple requests and mature enough to incorporate complex inputs. 5) Put a process in place to review and approve requirements and updates All parties involved should agree on how the requirements are submitted, reviewed, and approved so this can be integrated into the planning process of individual apps by ministries. 6) Reuse and share Often apps have similar sub-components (beyond the common platform components mentioned earlier) like logging, analytics, UI rendering, etc. Efforts should be made to promote reuse of these software components when feasible. As such, common source code repository and documentation should be maintained which will help promote this practice. 7) Documentation It is essential to keep both the specification requirement and source code documentation up to date as new resources become available. 8) Analytics and data For any app, programmers should embed the code that logs customer interactions with the apps. The analytics and data component of the apps are essential to understand how consumers are using the applications and if the various features of the application are working as anticipated. So
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Bhutan project report on emerging mobile applications opportunity Care should be taken to secure the data and protect the privacy of the users. Policies should be in place to govern the use of data (see also the policy framework in recommendation 9) 9) Build the mobile (apps) policy framework The policy framework for mobile apps centres on transparency, privacy and security of data and how the data is used and shared amongst various entities and different apps. Automatic data collection Mobile device browsers and apps can collect a lot of user information automatically like the IP address, sites they have visited, user authentication data, location of the user, transaction amount etc. The policy should ensure that mobile application developers clearly articulate what information is going to be collected and how it is going to be used by the application developer. This information should be available both on the mobile device as well as on the web. Opt-in/opt-out The mobile apps especially the messaging apps SMS and Email should have a clear opt-in/optout policy for non-emergency applications. It is for the regulator to set out the policy for optin/opt-out depending on the evolution of the market. Typically, more mature markets have optout (by default) policies. Some of the developing markets like India have had a flexible opt-in (by default) but they had to tighten up the regulations recently to reduce spam. These regulations will also be complimentary to the national SPAM (email) regulation for application developers. There should also be the mechanism for users to opt-out of services and a clear indication to the user who is paying for the messages. If the application developer is paying, the message should clearly indicate that the message is FREE if not it should be clearly indicated that the consumer is expected to pay for engaging in messaging apps. Security Application developers should ensure that their security procedures are reasonable and should provide an overview of their security procedures to maintain confidentiality. The access to information should be to authorized employees and contractors only. In case of security breaches, efforts must be made to contain the damage and then inform the requisite agencies, entities and consumers whose information has been compromised. Children Mobile application developers should conform to child online privacy protection laws of the country. These will be for solicitation of commercial services from children as well as gathering data about them without the consent of their parents. Data retention policy Applications should clearly state how long the data will be stored. For example, it is reasonable to assume that the developer will need the data (some or all) as long as the user is using the application. It should also be made clear if the data is stored in for the individual user or in aggregate and for how long. Users should also have the ability to request deletion of the privacy data if they so desire at any given time. Third party access to information Mobile applications have to share data, for example during user authentication, commerce transaction, location information, etc. The third-party access to the user data should also conform to the same standards as followed by the application developer themselves concerning data retention, security, and data collection. Changes If the privacy policies are updated for any reason, users consent is generally required or at a minimum, users should be informed of the changes and its implications.
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Bhutan project report on emerging mobile applications opportunity User consent User consent should be obtained when the application is presented to the user the first time or when an application is starting to collect some new data or if there are changes to the existing privacy policy. Liability and penalty for fraud Laws/rules should determine penalties in case of failures to prevent security/privacy breaches of consumer data. These will be similar to the online regulations. The launch of mobile financial services will inevitably attract fraud. The existing framework for financial fraud should encompass fraud on mobile payments and mobile finance. 10) App ecosystem is interlinked and requires collaboration between ministries and private entities Most of the government apps will require collaboration between different ministries for e.g. mobile finance and payment services will involve the financial institutions (banks, credit card companies), monetary authority, and mobile operators; mobile health services will involve Ministry of Health and mobile operators; etc. There is also going to be synergies between apps for example, consumers can pay for mobile health services using mobile payment/banking applications. Similarly, mobile health and disaster management services can have significant overlap. 11) Regulators should collect more detailed data about the industry Both operators and regulators should invest more time and resources into identifying some key industry metrics that can be collected to both understand the industry and such data can be used by developers to fine tune and target their apps more effectively. Some of the basic KPIs would be: net additions, urban/rural subscribers and teledensity, usage per subscriber voice minutes, SMS, data (MB), subscriber by technology 2G/3G, subscriber by prepaid/postpaid, churn, active prepaid users, mobile subscribers by device type, mobile subscribers by demographics, ARPU voice, data, ARPU by device type, usage by regions.
12) Operators should work on improving data network reliability and performance Operators should work to make the mobile data experience reliable and seamless. Regulators should measure the data network performance on a monthly basis and establish some minimum benchmarks for data network availability and performance. Similar regulatory benchmarks should apply to the use of key mobile apps like finance, agriculture, disaster management, and health where users will come to rely on them on a day-today basis. Developers should build the apps assuming different load scenarios. 13) Focus on SMS apps and mobile web first (mass market apps) One of the most basic questions that needs to get answered is for which mobile OS (operating system) is the app going to be developed for. Since there was no reliable data available for the
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Bhutan project report on emerging mobile applications opportunity Bhutan market concerning the OS distribution, a mobile web application might be the best approach given the lack of smartphones and desire to reach the widest audience. However, if more data becomes available, this decision can be revisited. Developing SMS17 apps where the user engages in a series of response/command operators to retrieve the requisite answers is also possible, but some users might find it too cumbersome and a fairly comprehensive SMS short code strategy will need to be developed to avoid confusion and streamline the applications. It is recommended to consider a combination of mobile web and SMS applications as a starting point. The same platform can always be extended to any native OS development such as Android, iOS or Windows. 14) Focus on Android (for limited user apps) In cases where the app is not for the mass market but is for a limited number of users for a specific purpose e.g. health workers, financial agents, survey collectors, etc., focus can be on higher-end OS like Android, iOS, and Windows. Android is widely available, has some good development tools available, is supported by multiple OEMs (original equipment manufacturers) and the price of devices (both smartphone and tablets) is more accessible. iOS devices can be expensive and there is an issue of credit card based iTunes account. Windows phone ecosystem is still in its infancy and it is not as widely supported by OEMs so the choice of devices will be limited and the cost may be higher.
15) Seek input from users before rolling out the apps Since government will seek active participation from the users, it will be necessary to involve a group of users to get input on functionality and the user interface. One must remember that the communication/marketing of the app is as important as the development of the app and if it is not launched with proper care, the reception will be tepid and unsatisfactory. By involving the actual users, not only will the chances of success improve but these users are likely to become the ambassadors of these apps and help spread the information by word of mouth. 16) Smartphone duty should be reduced or lifted While it is necessary to start by involving the greatest number of users for the platform and devices (SMS and Web), true power of app requires native applications on iOS, Android, and other relevant platforms. The penetration of these devices is low in Bhutan. One of the contributing factors is the duty of 30 per cent that is levied upon such devices. Government must balance the desire for generating revenues with the spread of smartphones in Bhutan that will greatly benefit the overall economy in the long run. Duty is being avoided when consumers buy these devices from other countries.I Increasingly, smartphones and tablets (and similar connected devices) are being classified elsewhere as computing devices, and if this were the case in Bhutan they would be given the same duty treatment as traditional computers. Operators should also be able to provide some interesting bundles to the consumer and thus help promote both data services as well as mobile apps.
17
In the case of mobile financial services, USSD is likely to be involved.
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Bhutan project report on emerging mobile applications opportunity 17) Prioritization of projects As the infrastructure and the framework for mobile apps evolves, there is likely to be a deluge of requests for apps from the ministries, civilians, the private sector and industry. Given the constraints on resources, projects should be prioritized by the urgency and impact prism. 18) Incentivizing developer community and capacity building The overall developer community in Bhutan is limited. The mobile developer base is even smaller. To foster excitement, competition, and entrepreneurship, the Government of Bhutan should create incentive programmes, grants, training camps, and app competitions to help create a generation of developers who are excited about investing their time in learning mobile app development. Without such effort, Bhutan will always have to rely on external resources which will not be good for the economy or the ecosystem in the long term. 19) Localization Like in many multi-lingual countries, there is a growing need for localization for apps in Bhutan especially to cover the remote and rural areas. Localization in Dzongkha is not trivial and it will take time to develop a universal solution that can be used by all apps and this effort should continue. In the meantime, IVR based apps can be a stop-gap until a complete solution emerges. This will be true for all of the four application areas discussed in this report. 20) Training and partnerships There should be an ongoing programme to conduct onsite or remote training (along with online) for current and aspiring developers to keep up to speed with the latest trends and development strategies. With the help of ITU, the government should seek opportunities to partner with other development companies and ecosystem participants. Given that mobile operators are going to be beneficiaries of the mobile data usage and mobile data growth in the country, they should play an active role in building the local developer talent. 21) Use available knowledge and resources There are a number of available resources for training18 as well as building apps such as Remindem19 which is an open/free platform for building notification apps. Additionally, the United Nations and other NGO (non-governmental organization) entities have case studies of successful implementations that can be looked at for future reference or to seek inspiration and guidance. 22) Recommendations on apps Here are the high level recommendations for the four app areas. The apps are discussed in more detailed in Annexes 1 to 4. Mobile Health Empower rural healthcare workers with m-health tools. Improve current capacity of health help centres and enable more health care information services over mobile handsets. Mobile Disaster Management Put in place an alerting SMS application for disaster management that informs citizens before, during, and after a disaster. The application can be gradually enhanced by providing more advanced features such as location-based alerting, companion mobile website for further information, etc.
18 19
For example see: www.educause.edu/Resources/Browse/MobileApplicationDevelopment/35075 http://remindem.instedd.org/
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Bhutan project report on emerging mobile applications opportunity Mobile Agriculture Provide pricing lookup application for commodities. The application will need to be localized for rural use. The application can be further enhanced by incorporating personalized alerts and expanding product categories. Mobile Finance Launch USSD/SMS and/or mobile web based application to enable mobile payment and banking services using cell phones. This will require tight collaboration between financial institutions, regulatory authorities, and the mobile operators for the effort to be successful. 23) Getting Started Messaging and authentication are two of the basic steps that almost all applications will need and it will be a good first step to iron out the technology involved, the APIs, the processes and protocols to access these APIs for various applications, and the processes to detect and prevent fraud and abuse. Typically, in other markets an aggregator plays the role of the middleware that connects the operator networks and the application universe. Given that there are only two operators in Bhutan, the role of the aggregator can be absorbed by one of the operators or the two operators can jointly put a set of APIs that helps translate a phone number to the appropriate operator for further processing. Same aggregator function can be deployed for authentication as well. This might be the quickest way to get the two fundamental building blocks completed. Any necessary development work can either be completed by the developer resources at the operators or perhaps some local developers can be sourced to build the aggregator framework. Once this framework is ready for use, application developers both private and from the government can regularly tap into it. The aggregator framework is something that the Central Coordinating Authority should help to coordinate but quickly delegates it to the operators since they are in the best position to get something done quickly.
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Annex 1: Mobile health

M-health project 1 Empowering rural healthcare workers with m-health tools
Project objectives
Deployment of low cost portable m-health tools in basic health units. Empowering health assistants posted at basic health units with m-health tools enabling them to access doctors/specialists in remotely located hospitals for decision support.
Scope of the project

The m-health/mobile health is still in its initial phase but it has already begun to transform the health delivery system in low resource countries. Projects throughout the developing world are demonstrating concrete benefits for the rural population. The use of m-health terminals in this project will enable: Access to healthcare and health-related information in the remote places for fresh encounters and second visits to maintain continuity of care. Tele-follow up and per-referral screening of the patient. Improved ability to diagnose and track diseases on time at their local places. Timely delivery of services to underserved segment of society there by developing an actionable public health information system. Expanded access to ongoing medical education and training for health workers. Reduce healthcare cost through better communication and a reduction of visits. Improved quality of care. Reduced disparities in the delivery of healthcare. Young people to live healthier and old people to live longer. The healthcare system to become more convenient and efficient. Addressing the anticipated shortage of family physicians through a system that will facilitate delivery of care through more communication and fewer visits. Overcoming the patient load of the hospital through the tele-follow up. Chronic disease management. Early detection of non-communicable diseases. Providing the support for awareness programmes through multimedia content. Capacity building of the medical / paramedical, health workers.
Proposed technical solution

Many mobile portable e-health solutions are available and are been tested in many countries such as the mHealth4U used in India.
mHealth4U case study

mHealth4U is a mobile tele-health solution designed, developed and validated by the School of Telemedicine and Biomedical Informatics, Lucknow, India. It is available both in aluminum polycarbonate case (aeroplane cabin bag size) and standard backpack model. The unit consists of an atom processor based laptop with Windows Vista platform and Microsoft Office, non-invasive blood pressure monitor, ECG, pulse oxymeter, Spirometer, Glucometer, Digital Thermometer, Digital Weighing Machine, Digital
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Bhutan project report on emerging mobile applications opportunity Stethoscope. Mobile high speed broadband data card is used to transmit data from remote rural area to tele-consultation centre. All medical equipment is integrated with Curesoft software. IP based video conference software is used for telemedicine interactive session. Figure 16: mHealth4u for rural healthcare
Source: Author adapted from mHealth4U
The system was evaluated in field trials. The following features were taken into account for evaluation Quality of video and audio, Option of VoIP (Voice over Internet Protocol) and support most of the industry standard protocols, installation setup, user friendliness and machine dependency, conference recording, features of desktop and application sharing, file transfer and power point sharing, and optimum bandwidth requirement. Different types of connectivity modes i.e. both wired and wireless based on IP were used during the video-conference session. Currently available IP based video-conference solutions integrated into a low cost telemedicine platform using both wired and wireless broadband were included for the technical trial. Telemedicine platform based on a video conferencing system is ideal for rural and mobile healthcare setting and would be cost-effective over and above hardware based video conferencing solutions. Anyone can use internet web conferencing software based video conferencing system to communicate with others. There is no restriction of using a particular PC or location. Evolving software solutions will help to further the growth, acceptance and adoption of telemedicine initiatives. Keeping telemedicine costs low will enable providers to reach out to a broader audience, including those in rural regions and low-income patients who cant afford to travel long distances for care. The developing countries like Bhutan may develop policy to integrate this low cost solution in its existing healthcare delivery system. This solution could be sustained once policy makers/stakeholders are convinced about the potential of the technology and solution. It requires very low cost investment and maintenance.
Suggested mechanism for operation

Deployment of portable m-health terminals is aimed at rural/remote/inaccessible health posts to empower healthcare professionals and healthcare workers involved in public health including collection of public health related data on communicable diseases. This system of m-health needs to be owned by public healthcare delivery agencies of the Ministry of Health.
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Bhutan project report on emerging mobile applications opportunity Mobile broadband using 3G GSM will be in place soon in Bhutan which will provide solutions for video calls. Currently SMS based services can be introduced in addition to voice calls to health help centres.
M-health project 2 Health information services over mobile handsets

(Enhancing current capacity of health help centres.)
Objectives
Access to right information at right time to save lives in an emergency. Access to information on availability of healthcare facilities, professional expertise, diagnostic services. Access to information on preventive and promotional health. Psychological support in stressful situations like students during examination time, elderly citizens, stressed citizens. Scheduling and re-scheduling hospital appointments.
Scope
National, around the clock access to health related information on mobile phones (information on care facilities, professional expertise, emergency response including ambulance services, information related to preventive health and health promotion, etc.). Developing a business and societal model on value added services for mobile telephony.
Rationale and impact

The value of right information at the right time in improving health outcomes in both emergency and routine situations needs no further explanation. In low resource countries, it has proved valuable not only bringing added value to mobile services but also immense satisfaction of citizens living in far flung areas like rural mountainous areas of Bhutan where the majority of the population is illiterate, such a system will prove beneficial. Two existing service providers have expanded various types of services in the course of the expansion of their networks which has resulted in significant increases in geographical coverage. Operational projects in Bhutan where the system has been launched recently, initial response and benefit has brought in evidence based on the usage statistics. 1) How can it integrate in existing national health system? Information, Communication and Education (ICE) to country citizens is one of the strong pillars in any health system, Bhutan is no exception. ICE is one of the tools used to achieve success in health related MDGs (Millennium Development Goals). Health help centre is already in operation at Jigmi Dorji Wangchuk (JDWNRH) campus, Thimphu. Scaling up with technical re-configuration is all that is needed. The Government of Bhutan is required to provide free health service to its citizens. Could be easily be integrated with health help centre infrastructure which is fully supported by the government.
2) Implementation feasibility
3) Sustainability and economic viability
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Annex 2: Mobile agriculture project

Objectives
Citizens involved in the agriculture sector have several informational needs that can assist in increasing their revenue from sales, protect their produce from pests using accurate detection leading to prevention and protection of crops, weather forecasts, and other relevant topics. The need is also to provide this information in almost real-time. The best digital channel available to such demographics is mobile devices. The goal of a mobile agriculture app is connect farmers and agriculture industry participants especially in the remote areas with real-time data on pricing, disease, weather, etc. The application should also seek to be localized so that people who are not well conversant with English can also take advantage of the application.
Scope
The scope of the project is to provide latest pricing information on commodities to farmers.

By giving the pricing information on the mobile devices, farmers can time their visit to the wholesale markets to sell their produce and garner best prices rather than living with uncertainty in pricing and traveling distances without having a good understanding of the prices in the market. By having access to real-time pricing, farmers can be more efficient and they can improve their overall revenues.
App requirements
Overall, mobile agriculture is a simple application but is critically important to the farmers. It will also be relatively easier to build unlike other applications because the basic framework already exists. Of course, it can be improved upon with time. Focus should be on enabling the existing IVR application. The mobile app has the following key components: 1. Mobile Client. 2. Mobile Agriculture Application Server. 3. User Authentication Database. 4. Pricing Database. The IVR application already has the Mobile Agriculture Application Server and the Pricing Database in place although the server will need to be modified to server to communicate with mobile devices. Figure 17 shows the basic functional diagram of the mobile agriculture application. The user requests pricing of a certain commodity or item, the request goes to the application server which first authenticates the user and then prepares the query for pricing lookup. The pricing data is updated manually or through automated means. The application server receives the results and packages them for display on the mobile phone. The input and/or output can be voice-based as well. The current system is completely based on IVR and it covers five markets in Bhutan.
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Bhutan project report on emerging mobile applications opportunity Figure 17: Mobile agriculture application framework
Source: ?
App user interface

Figure 18 shows the sample screenshots of such an application on the mobile phone. As a next step, the application can be customized further so that the user may select items of interest and when the page loads up; the results are shown instantly instead of running a query. The basic mechanism of the application will work the same way however. Figure 18: Mobile Agriculture Application
Source: Authors
The application can be further enhanced by offering alerts capability wherein users can setup alerts if certain criteria are met for example if the price of the commodity reaches a certain level, the system could proactively send the required alerts. The application server should also log each and every user activity in detail so the resulting logs can be used to understand how users are using the application and the system can be further refined.
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Bhutan project report on emerging mobile applications opportunity One of the challenges of the current system is that of awareness. Not everyone is aware that such a utility exists or even if they have a mobile phone are apprehensive about using the app. The Ministry of Agriculture can use the mobile network to promote the application. By working with the operators they can target districts and villages where the awareness is low and use both the physical means (posters, word of mouth) and the electronics means (SMS, Mobile Web) to promote the applications. By actively promoting the applications, consumers will start to both use them and spread the word about the availability of the agriculture application.
Annex 3: Mobile finance project

Objectives
Bhutans citizens are dispersed across the mountainous terrain that is difficult to reach and as such not all financial services are available in remote areas. Mobile financial services range from limited to nonexistent both due to the difficult terrain as well as due to the demographics. The goal of the mobile finance app is to help the unbanked get access to financial services without directly maintaining an account with a physical banking institution.
Scope
The goal of this mobile app is to provide some basic finance services such as: Creation of bank account where the customer can convert cash into electronic money for further transactions. Conversion of electronic money into cash with authorized outlets. Use of SMS for conducting financial transactions.
To enable this, customer bank accounts will be correlated to the mobile phone number which is uniquely linked to a subscriber.

A significant portion of the Bhutan population is not able to avail banking services. Given that mobile services are more pervasive, it becomes the most likely vehicle for providing such services. As has been proven in other regions like the Philippines and Kenya, mobile financial services can have a significant impact on lifting the economic conditions of citizens especially in rural areas.
Requirements
Given that this application will have a significant impact on the broadest set of citizens, it is important to design the application that reaches the maximum number of end users at launch. Just like other regions where such applications have been successful, a combination of USSD/SMS provides the best way to launch such services in Bhutan. The application should be simple and it should involve all parts of the value chain to be successful. The application will provide the following basic banking services to: 1. Deposit Money. 2. Withdraw Money. 3. Transfer/Send Money to another subscriber (any operator). 4. Buy goods and services using their mobile banking account.
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Bhutan project report on emerging mobile applications opportunity 5. Pay bills (could be just operator bills to start with but can easily expand to any form of bills utilities, taxes, duty, etc.). The mobile app focused on making financial services available will be a combination of technology and the human network as illustrated in the framework in Figure 19. The human network of agents is key to two important functions they help deposit and withdraw cash for citizens without a bank account. These agents need to be pervasive in Bhutan so that such agents are not far from any citizen no matter how remote the area is. These agents should be adequately compensated for playing the key role. Typically, a small commission is paid to them for every transaction. This gives them an incentive to increase the number of transactions for their base. The technology is obviously what enables agents and customers to carry out the financial transactions, some involving physical cash and others will be completely electronic. Figure 19 shows the basic outline of the functionality available on the app. As indicated, the transaction involving physical cash involves a human agent who facilitates the transaction for either converting cash into electronic money or electronic money into cash. Once the customer has a balance, they can send money to other subscribers.20 They can also use the balance to pay off bills and taxes if they so desire. This app will save time for citizens and introduce efficiency in the banking system. Figure 19: Mobile banking application framework
Source: Authors
Figure 20 shows some sample screen shots of a USSD session of a mobile financial application (sending money to another subscriber).
20
Though the long-term goal is that this is a cross-carrier operation, due to inherent complexity, the first phase might only include transactions with customers of the same operator.
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Bhutan project report on emerging mobile applications opportunity Figure 20: Mobile banking application
Source: Authors
The same application can also be designed using SMS, although this will lack the real-time nature of USSD. In the future, the app can be made available through IVR, mobile web, and native mobile apps depending on how consumers adopt the application during the first phase. Efforts should be made to coordinate the marketing and communication campaign with the app release. Naturally, the mobile financial agent network will become the ambassadors of the app.
Annex 4: Mobile disaster management project

Objectives
Disaster management is an essential service that any government provides to its citizens. It is often a lifeline to many during the various disasters. Given that mobile is the biggest digital channel; its role in enhancing disaster management services cant be understated.
Scope
The scope of the project is to keep all mobile customers in Bhutan abreast of emerging emergencies as well as provide them with latest information and guidance during and after a disaster. The mode of communication is primarily using SMS messaging with the support of mobile web if needed (in cases where more information needs to be provided and can be concatenated with the SMS message using URL)

Since the desire is to reach as many citizens as possible, the recommendation is to build an SMS application that takes advantage of location of the cell phone. In the most commonly used application scenario, the disaster management agency will work the two operators to send out the alerts before, during, and after disaster based on users interest and/or users location. Certain disasters might be localized and it might not be prudent to blast an entire database of users. Additionally, some alerts might have to be tailored to users location or the region of domicile.
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Requirements
The basic architecture of the mobile disaster management application is shown in Figure 21. It contains six major components: 1. User client (on the device). 2. Carrier network (for location information). 3. Disaster management application server. 4. Emergency Alerts database. 5. User Authentication database. 6. Disaster Management Agency. The disaster management agency determines that an alert needs to be sent to all the users or a subset of the user base. The alert database is updated with the message and any requisite information. The update triggers the disaster management application server to correspond with the user database as well as the carrier networks. If the alert is to be issued nationwide without any segmentation, then the server passes on the request to the mobile operators to issue the alerts to the requisite users. Figure 21: Mobile disaster management application framework
Source: ?
The user database can reside with the operator network but will need to work closely with the disaster management agency for customized requests and specific queries for example the requirement might be to send the alerts quickly to the users in the Paro area of Bhutan regarding imminent storm warnings. Messages could be concatenated with URLs for more information. In an event of a disaster like an earthquake, information immediately after the event is extremely important. Different citizens might have different needs for example; citizens living in areas not impacted by the incident might only be interested in finding out the safety of their loved ones while people who are in the affected area might be more concerned about food and water supplies or medical aid.
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Bhutan project report on emerging mobile applications opportunity The disaster management system should have the ability to direct and respond to specific queries from the citizens. In such cases, a bulletin board or a mobile website dedicated to the incident might be necessary wherein the information about missing people, aid sources, directions for what to do next, etc. can be placed and it can become the central source for information dissemination. In certain instances, it might be necessary to collect data from the citizens to get a better understanding of disaster so that the disaster recovery and assistance efforts can be better planned. These efforts can be initiated by both SMS and mobile web based applications.
Annex 5: Mobile web vs. mobile apps

There is a lot of discussion and debate in the industry on the topic of mobile apps vs. mobile web in the industry and three critical factors will determine how this plays out over the next few years: 1. Penetration of HTML5+ browsers on mobile. 2. Difference between the native OS support and browser access to the same APIs. 3. Implementation differences between various browsers. As things stand in early 2012, there are pros and cons to both approaches and as such it is not an either/or situation but rather the decision is based on the type of the applications. Developers will choose native vs. browser direction for their apps based on the business and technical goals for their apps. Today, native provides much richer functionality and access to capability and as such much richer experience than a browser does. For example, the recent Winter Olympics app by AT&T combines different elements of image, text, news feeds, social networking, video, and in-app advertising in a seamless fashion. To accomplish that in the browser will be difficult. The user experience wont match the performance of a native app. Figure 22: AT&T Winter Olympics Application for the Vancouver 2010 Games
Source: AT&T
On the other hand, the fragmentation issue in mobile only gets worse with each year with new devices, different implementations and operating systems, the cost of rolling out an app across multiple devices
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Bhutan project report on emerging mobile applications opportunity around the world can increase exponentially.21 As such, the browser provides the prospect of being the great unifier so you can truly design once and run everywhere (where the browser is available). For the simple apps that are less interactive and require less multimedia capability, like the popular social networking and news/weather apps, browser provides the perfect avenue to maximize impact with least amount of development. However, when considering a global market, one needs to be mindful of the rate at which HTML5+ browsers will penetrate the market (or in other words whats the effective reach). While things might move relatively quickly in the western markets, in many of the developing markets, the penetration of devices with HTML5+ browsers (and fast broadband mobile networks) will only increase gradually over the course of this decade. As such, the HTML5+ browser reach will be limited, so developers will weigh against the technical and business requirements of the applications with cost to build such applications and how that fits in with their business strategy and revenue goals. Some might decide to build both versions with web version for some markets and native apps for the others. Table 4: Pros and cons of mobile apps vs. mobile web
Mobile Apps Portability Needs to be developed for each platform Link to webpage will typically mean losing control over the app Appstores provide a way to be discovered but unless associated with marketing budgets, apps can easily get lost in the sea Access to all device capabilities GPS, camera, voice, RFID, addressbook, etc. Limited by distribution of the app platform Supporting/Upgrading of apps across multiple platforms/versions can be tedious and expensive Tighter control over the UX Higher performance due to local use Possible with data storage Mobile Web Can have the same web page displayed on multiple devices with minimum investment Web thrives on links with no problems in going back and forth Search or external promotion/marketing is the only way to let people discover the site Some APIs are starting to become available to the browser e.g. GPS, voice, camera, storage Covers all devices with decent browsers One update does it all
Hyperlinks Discoverability
Using Device APIs/Capability
Distribution and Market Size Supportability
User Experience Performance Offline Browsing
Less control esp. if graphics and interactivity is involved Can suffer due to network and device performance Limited
While there is hope that browser will have same access to APIs that any native apps does, native support is generally always ahead of the browser support and the leading developers looking for an edge in user experience are likely to go native. For some it is a matter of semantics. For example, many web shortcuts or URLs are available as app icons which primarily link to a website. A good percentage of the downloads
21
Another aspect that plays into the decision is that developers no longer worry about supporting apps on devices that dont have a big base, so they generally focus on only the platforms and devices with maximum reach and ignore the others.
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Bhutan project report on emerging mobile applications opportunity for the most popular social networking app Facebook is via an app icon that can be downloaded as an app. Finally, it is a misconception that there wont be fragmentation in the implementation of the mobile browsers by OEMs. There will always be differences due to the primal urge to differentiate and as such developers can expect to have these differences in the future though the fragmentation in browsers is only marginal to that created by the native OSs. Given the above, we are likely to see both worlds (native and web) coexist on handsets for a long time to come. Depending on the needs of the applications and business models, both models will stay in place for the foreseeable future. The dominance of one over another will largely depend on the device capabilities and reach in any given region. In fact, a larger focus should be on app search and discovery, quality of content, end-to-end user experience, zero billing friction, developer ecosystem and how to make developers more profitable and successful. These issues are important to tackle to keep the app economy vibrant and healthy. Operators and OEMs can play a crucial role by opening up the network and device APIs and building a fair and sustainable business models that help the smaller developers.
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List of Abbreviations
3G 4G API Apps (Mobile) ARPU BICMA CAGR CRM FFA FTTH G2C GDP GNH GPS ICT ITU IVR KPI LTE MoIC NRCS NSB OEM RMA SFA SMS USDA USSD VoIP W-CDMA WPAN Third Generation (WCDMA, HSPA+) Fourth Generation (LTE) Application Programming Interface Application(s) / software for mobile devices/platforms Average Revenue Per User Bhutan InfoComm and Media Authority Compound Annual Growth Rate Customer Relationship Management Field Force Automation Fibre to the Home Government to Citizen Gross Domestic Product Gross National Happiness Global Positioning System Information and Communication Technologies International Telecommunication Union Interactive Voice Response Key Performance Indicator Long Term Evolution Ministry of Information and Communication Natural Resources Conservation Service National Statistics Bureau Original Equipment Manufacturer Royal Monetary Authority Sales Force Automation Short Messaging Service US Department of Agriculture Unstructured Supplementary Service Data Voice over Internet Protocol Wideband Code Division Multiple Access Wireless Personal Area Network
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International Telecommunication Union Telecommunication Development Bureau Place des Nations CH-1211 Geneva 20 Switzerland www.itu.int
Printed in Switzerland Geneva, 2012
06/2012

Applications Opportunity: On Emerging Mobile

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Applications Opportunity: On Emerging Mobile

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B HUTA N

Bhut an Project Repor t on Emerging Mobile

Bhutan project report on emerging mobile applications opportunity

Bhutan project report on emerging mobile applications opportunity

Bhutan project report on emerging mobile applications opportunity

Bhutan project report on emerging mobile applications opportunity

Role of ITU for promoting ICT applications

Mobile growth around the world

Bhutan project report on emerging mobile applications opportunity

Mobile apps usage around the world

Agriculture alerts and health support for cattle

Primary Value Proposition

Rural Primary User Segment

Source: Analysys Mason, 2010.

How governments are using mobile apps to engage with citizens

Source: M-Government Mobile Technologies www.itu.int/pub/D-STR-GOV.M_GOV-2011

Governments and Connected Societies

Source: iFedJobs (US Federal Government).

Figure 7: Travel app

Source: Gyeonggi Provincial Government in South Korea.

Source: FEMA (Federal Emergency Management Agency), United States

What does it take to make the application ecosystem robust?

Bhutan project report on emerging mobile applications opportunity

Bhutan project report on emerging mobile applications opportunity

State of the Bhutan wireless market: Challenges and opportunities

Figure 11. Bhutan mobile market growth

Key stakeholders in the mobile applications market in Bhutan

Priority mobile application areas

Evidence supporting m-health benefits

Learning from other implementations

Figure 13: Mobile app for soil information

Source: KIS Future

Mobile finance and banking

Building the agent network

Policy of telecom and banking collaboration

Bhutan project report on emerging mobile applications opportunity

Learning from other implementations

Mobile disaster management and communication

Learning from other implementations

Mobile apps and GNH

Psychological well being Ecology Health

Living standards Community Vitality Good Governance

Mobile and ICT roadmap

ICT for Bhutanese Information Society

Vision for Information Society Bhutan in the 21st century.

ICT as a key enabler for sustainable economic development

Technical architecture and best practices

Underlying infrastructure and consumer expectations

Interactive voice response

Bhutan project report on emerging mobile applications opportunity

Bhutans mobile app landscape and action plan

Whats present and already working?

Recommendations and suggestions to build a thriving mobile apps economy

In the case of mobile financial services, USSD is likely to be involved.

For example see: www.educause.edu/Resources/Browse/MobileApplicationDevelopment/35075 http://remindem.instedd.org/

Bhutan project report on emerging mobile applications opportunity

Annex 1: Mobile health

Scope of the project

Proposed technical solution

mHealth4U case study

Source: Author adapted from mHealth4U

Suggested mechanism for operation