How the poor use their mobile data: A field experiment in India

Can less flexible data plans make users better off?

As a ‘force multiplier’ to deliver services and information to isolated markets, smartphones are a key tool for slum-dwellers, but their effectiveness depends on how users engage with them and the accessibility of practical information. To identify ways to increase the impact of development-related, smartphone-based interventions, this project analyses the dynamics of smartphone usage of the poor to show how restrictions in data plans can actually make users access more useful information providers and engage with more practical content.

SOUTHERN ASIA

India

The challenge

Through their increased prevalence, smartphones have become a key social development tool for slum-dwellers. Particularly, they are considered as a ‘force multiplier’ to effectively deliver services and information to isolated markets.

Although smartphones carry great potential, accessibility alone may not be enough to make a significant impact on reducing poverty. Success heavily depends how users engage with their mobile devices and the accessibility of practical information.

The intervention

This project addresses the question of how the design of data plans – in particular, smaller data-replenishment cycles – can create value for both user and provider.

To study this issue, the researchers conduct a randomized controlled trial in an urban slum community in India. They provide slum- dwellers with restrictive and flexible data plans, and measure ICT-usage on smartphones.

The impact

This research aims to shed light on the dynamics of smartphone usage of the poor in order to show how restrictions in data plans can make users engage with better content and make them more accessible to information providers. It may help us identify ways to increase the impact of development-related, smartphone-based interventions; based on the assumption that, in resource constrained environments, design of mobile data plans can mitigate undesired consequences of user behaviour.