Presentation is loading. Please wait.

Presentation is loading. Please wait.

Teleuse by the Bangladeshi migrant worker This work was carried out with the aid of a grant from the International Development Research Centre, Canada.

Similar presentations


Presentation on theme: "Teleuse by the Bangladeshi migrant worker This work was carried out with the aid of a grant from the International Development Research Centre, Canada."— Presentation transcript:

1 Teleuse by the Bangladeshi migrant worker This work was carried out with the aid of a grant from the International Development Research Centre, Canada and the Department for International Development, UK, with contributions from Telenor Research & Development Centre Sdn. Bhd., Malaysia. Photo credits: CKS Consulting Pvt. Ltd.

2 background Objective: To understand how Bottom of the Pyramid interacts with ICTs (mostly phones) to better inform policy Large surveys of BOP conducted in 2005, 2006, 2008 Almost 20,000 face to face interviews in 6 countries since 2005 Bangladesh (2008) Pakistan India Sri Lanka Philippines Thailand Funded by the International Development Research Center (IDRC) of Canada, the Department for International Development (DFID), UK with contributions from Telenor Research and Innovation, Malaysia 2

3 Method Multi-stage stratified sampling, random selection of households and individuals Field research conducted by Nielsen; 12 languages; 6 countries Migrant worker teleusers at bottom of the pyramid –SEC groups C* + D + E –Overseas and domestic migrants that send money home 3 Quantitative 9,950 face-to-face interviews 1 week usage patterns via diary method (50% of sample) Sep-Oct 2008 Qualitative Focused group discussions Mini-ethnographies Depth interviews with migrant teleusers Feb-Mar 2009

4 Samples BangladeshPakistan [1] IndiaSri Lanka [2] Philippines [3] Thailand [4] Total BOP teleusers 2,0501,8143, ,540 Margin of 95% CL (%) + 3%+ 2% + 3%+ 4% Diary Sample 1, , ,775 Migrant workers ,550 4 [1] Pakistan: Excludes tribal regions [2] Sri Lanka: Excludes North and East [3] Philippines: Survey was undertaken only among SEC E [4] Thailand: Excludes Bangkok as the SEC DE population in Bangkok is very small

5 Sampling logic Multi-staged stratified sampling by probability proportionate to size –Regions (states/provinces/districts) randomly selected in 2006; kept the same for comparison in 2008 (except BD) –Stratification of cities within state, province etc –Geographical ordering of cities, villages –PPS selection of cities, villages Within PSU –Random starting points –10 HH per starting point; right hand rule –KISH grid to select respondent in HH

6 Agenda WHO ARE THE BOP? BOP TELECOM EXPANSION ACCESS OWNERSHIP MARKET POTENTIAL WHAT THOSE AT BOP DO WITH THEIR MOBILES? POTENTIAL FOR MOBILE 2.0? BENEFITS? THE UNCONNECTED… 6 back

7 Agenda WHO ARE THE BOP? BOP TELECOM EXPANSION ACCESS OWNERSHIP MARKET POTENTIAL WHAT THOSE AT BOP DO WITH THEIR MOBILES? POTENTIAL FOR MOBILE 2.0? BENEFITS? THE UNCONNECTED… 7 back

8 The study represents approx. 62 million in Bangladesh Teleusers at bottom of the pyramid –SEC groups D + E –Aged (Rural India: R2, R3, R4) 8 Among BOP teleusers

9 Link between SEC D+E and "$2 per day" definition BangladeshPakistanIndiaSri LankaPhilippinesThailand SEC D+E (% of population) [SEC E] 33 Less than $2 per day (% of population) Actual population proportions 9

10 Households earning ~USD per month (on average) 10 Among BOP teleusers

11 54% of Bangladeshi BOP households don't own a phone 54% BOP = 57% of BOP teleusers 80% of these non-owners can reach a phone in under 5 minutes –Urban: 89% can reach a phone in under 5 mins –Rural: 78% can reach a phone in under 5 mins Among all BOP teleusers

12 Main reasons for not owning are affordability and the lack of a need Among BOP non-owner teleusers

13 Bangladeshi BOP can afford USD23 to get connected, but think that it will actually cost them USD38 Among BOP non-owner teleusers

14 Once connected they can afford to spend USD1.80 per month on communication costs, while they think it will actually cost them USD Among BOP non-owner teleusers

15 31% of the current unconnected BOP in Bangladesh plan to get connected; 98% through a mobile Among BOP non-owner teleusers planning to get connected

16 Background to migrant study component being released for first time in Dhaka today

17 Method –SEC groups C* + D + E, aged between 15 – 60 –Migrant worker & migrant worker families (qualitative) interviewed. –domestic and overseas migrants –Domestic: Living and working away from home (within the same country) –Overseas: Returned (temporarily or permanently) from working in a foreign country –Had used a phone in the last three months –Had sent money to family in the last thee months Quantitative 1,500+ face-to-face interviews Oct-Nov 2008 Qualitative Depth interviews through home visits with migrant workers and/or families in location of origin Feb-Mar 2009 A small sample of SEC C users was taken in Pakistan

18 Quantitative sample 18 [1] Pakistan: Excludes tribal regions; includes SEC C [2] Sri Lanka: Excludes North and East [3] Thailand: Excludes Bangkok as the SEC DE population in Bangkok is very small BangladeshPakistan [1] IndiaSri Lanka [2] Philippines Thailand [3] Domestic migrant Overseas migrant Total

19 Sampling Random & purposive (non-random) sampling undertaken Random sampling Respondents randomly selected for main household survey who fit migrant sample profile were interviewed: – Randomly selected regions (States / Provinces / Districts) sampled for 2006 survey were maintained for comparability (Primary Sampling Unit) – Urban and rural centers randomly selected – Within selected centers, randomly selected starting points (number in proportion to population size) for conducting fixed number of interviews – Random Selection of household and respondent via the Right-hand rule and Kish Grid respectively Purposive sampling Snowballing, etc, used in high migrant population centers for booster interviews 19

20 Qualitative sample Home visits with media mapping India Urban0 Peri-urban4 Rural2 Bangladesh Urban2 Rural2 Pakistan Urban2 Rural2 Sri Lanka Urban2 Rural2 Philippines Urban1 Rural1 Thailand Urban1 Rural1 Total22 With migrant workers & migrant worker families

21 Outline > Migrant worker sample characteristics > Communicating home > Sending money home > Mobile remittances? 21

22 Migrant worker characteristics

23 Mostly SEC D and E, some C in PK Migrant workers (domestic or overseas) from bottom of the pyramid who remit money to family –SEC groups D + E mainly, some C in PK –Aged 15-60

24 Mostly males in BD, PK & IN; males + females in LK, PH and TH More educated migrants from PK* and PH * includes SEC C migrants

25 Migrants earning USD 417 (overseas) & USD 124 (domestic) per month on average BangladeshPakistan *IndiaSri LankaPhilippinesThailand OverseasMode Mean (sd) 485 (516) 346 (195) 413 (168) 294 (214) 475 (325) DomesticMode Mean (sd) 84 (44) 136 (142) 100 (56) 125 (56) 164 (110) 259 (143) BangladeshPakistanIndiaSri LankaPhilippinesThailand Bank account32%29%48%84%53%80% Credit card11%5%4%15%11%16% Ownership of bank account or credit card (% of BOP migrants surveyed) * Many refused to answer Monthly personal income (USD)

26 Majority of overseas migrants work in Middle East; Southeast Asia also popular among SeA migrants

27 Bangladesh destination countries

28 Communicating home

29 28% Bangladeshi overseas migrants make Internet calls; 8% Internet chat (everyone, except a few Filipinos, uses the phone!) Overseas migrants Domestic migrants

30 Own phones (mostly mobile) used most as primary phone, followed by public phones; primary use to keep in touch with loved ones at home, and for work (depending on job) Domestic migrants Overseas migrants

31 Simi | Farmer / housewife / mother of domestic migrant Jae Hom, Thailand (rural) Migration almost always results in mobile adoption, either the migrant purchases the handset and gives it to her family, or she passes down her handset and buys a new one for herself. Simis son is a domestic migrant. She has a mobile primarily to keep in touch her son who works outside of the city. After he migrated, the need to be in constant touch with her son arose. Before owning a mobile, communicating with her son involved lots of time, effort and constant mediation by others. - To call she had to travel (a considerable distance) by bike with her husband to a public phone, where she would often have to spend time waiting in line. - To receive a call from him, she would have to go by bike with her cousin to the cousins house where she could receive the call. After two years her son bought her a mobile phone.

32 Bangladeshi and Pakistani overseas migrants call home most frequently: 87% in BD call home at least once a week; 34% daily Based on respondent recall Overseas migrants The primary need for communication was to keep in touch with loved ones at home. Depending on the type of job (e.g., client-driven, delivery-based, etc.) some need to communicate with local contacts. Often, the communication needs of overseas migrants are limited to communication with family and friends at home, rather than contacts within their destination country. However once they return home for holidays, the need to stay in touch with supervisors/bosses/colleagues in increases, in order to ensure they have a job (or the same position) to return to. At least once a week Daily

33 Domestic migrants call more frequently than overseas migrants; again highest in BD Based on respondent recall Domestic migrants Per-minute peak tariffs (pre-paid) BangladeshPakistanIndia*Sri LankaPhilippinesThailand Mobile (on-net) Mobile (off-net) Fixed (Local/National) Source: LIRNEasia (2008, October). Mobile Price Benchmarks * Refers to local charges only; national per-minute tariff is At least once a week Daily

34 SMS popular among PK and PH overseas migrants, and PK, LK and PH domestic migrants Overseas migrants Domestic migrants SMS charges (prepaid; USD) BangladeshPakistanIndia*Sri LankaPhilippinesThailand SMS (on-net) SMS (off-net) Source: LIRNEasia (2008, October), Mobile Price Benchmarks. * Refers to local charges only; national per-minute tariff is 0.034

35 Bangladeshi overseas migrants spend most: USD48 per month on average; thrice that in IN/PH; most overseas Bdeshis spend USD 40-50/month, most others spend USD10-20 Bangladesh Mean: USD 48 Most spend USD Pakistan Mean: USD 36 Most spend USD India Mean: USD 15 Most spend USD10-20 Overseas migrants

36 Mean monthly expenditure on communicating home (cont'd) Sri Lanka Mean: USD 38 Most spend USD10-20 Philippines Mean: USD 16 Most spend USD10-20 Overseas migrants

37 Domestic migrants Bangladesh Mean: USD 7.08 Most spend less than USD 5 Pakistan Mean: USD 8.52 Most spend less than USD 5 India Mean: USD 3.34 Most spend less than USD 6.67 Domestic migrants

38 Sri Lanka Mean: USD 8.60 Most spend less than USD 6.67 Philippines Mean: USD 4.40 Most spend USD Domestic migrants Thailand Mean: USD 9.68 Most spend USD5-10

39 Large variation in communication expenditure among overseas migrants (USD50+ for some) Overseas migrantsDomestic migrants USD Ave. monthly communication expenditure (USD) Ave. monthly communication expenditure (USD)

40 Cost of calling home from 4* of top 5 destination countries: Off-peak * International calling rates from Kuwait not available Per minute cost of calling home using largest mobile operator (except UAE: second largest) Calling from To USD1.20 USD1.17 USD0.58

41 Cost of calling home from 4* of top 5 destination countries: Peak * International calling rates from Kuwait not available Per minute cost of calling home using largest mobile operator (except UAE: second largest) Calling from To USD1.34 USD1.24 USD0.65

42 Bangladeshi overseas migrants make longer calls Based on respondent recall Longer calls, more often higher costs

43 Sending money home

44 Lourdes | Grandmother 57 | Metro Manila, Philippines

45 USD 9b overseas remittances to Bangladesh in 2008 (AFP, )http://www.google.com/hostednews/afp/article/ALeqM5jyBqlJab_jioB-w9Mnn1lhf55lIQ Nearly 10% of GDP; significant contributor to foreign reserves May 2009 saw record of USD 890m in remittances Official estimates: 6.3m overseas migrants (unofficial: 9m)

46 Bangladeshi overseas migrants remit USD203 per month on average (highest in S Asia); domestic remit USD27 BangladeshPakistanIndiaSri LankaPhilippinesThailand Overseas Mean (sd) 203 (143) 198 (182) 182 (89) 137 (129) 249 (208) Mode DomesticMean 27 (20) 93 (111) 51 (38) 60 (96) 91 (88) 54 (51) Mode

47 Most BD overseas migrants send money home every 1-2 months; less frequently than in PK Overseas migrants

48 Overseas migrants mostly send money through banks or in cash (low cost option) Overseas migrants Sending money through banks is seen to be cheap and reliable; often migrants open bank accounts for their family in order to receive money. Drawbacks are that a visit to the bank is necessary (though some migrants befriend bank workers –often countrymen– who facilitate transfers without the migrant needing to visit), and banking facilities should be easily accessible to the migrants family too Though many in the Philippines use money transfer services (e.g. Western Union), it is seen to be more expensive, therefore used as a second option, to bank transfers Hundi can be costly, but is capable of doorstep delivery in rural areas; additionally, loans can also be taken from the vendor (at high interest rates); it is seen to be reliable in IN and PK, but not BD and LK

49 Domestic migrants mostly remit once a month (when they go home) Domestic migrants

50 Domestic migrants send/take money in cash; "mobile payments" used by 6 % in BD and 2 % in PH Domestic migrants Sending money with friends and relatives is free and reliable and thus popular; it is often reciprocal; includes sending money through (known) bus or ferry drivers Post office money transfers, are extremely popular among domestic migrants in India due to the low cost, doorstep delivery, perceived extensive coverage of the postal network, but also the reliability, since it is operated by the government Remittances are also delivered through bus drivers in India and Philippines, and ferry drivers in Bangladesh; often the driver is an acquaintance, so no charge is levied and he knows who exactly to deliver the money to

51 Most who remit via banks are satisfied, though complaining of cost in LK and PH Transfer charges? Bank wire transfers were seen as more expensive and thus resorted to only emergency situations since transfer takes only minutes

52 Bank and wire transfers were among those most popularly used, and was seen as one of the cheaper and convenient options –E.g., In Dubai, the worker need not have a bank account. The Etisalat Bank provides workers with a bank ID using which they can send money to any account of their choice and the nominal service fee is paid by them in cash. Service charge amounts to 2.5% of the total amount sent or AED 100 (USD 27.2) for transactions less than AED 5,000 (USD 1,360).

53 Mobile remittances?

54 Higher awareness among BD migrants compared to other S Asian migrants; overseas migrants more aware

55 3% BD migrants* are using "mobile remittances" * 6% of domestic migrants Operating guidelines for mobile payments proposed (Jan 2009) Regulatory framework for mobile banking drafted (June 2008) Services offered: Smart Padala, G- Cash ) Proposed services (Venyon and Kasikornbank) Proposed services (Bharti Airtel, Western Union) Services not offered; transfers possibly via e load

56 Some current & proposed m-remittance/payments services Bangladesh – Proposed Grameen-Obopay Bank A Billion Initiative to provide cross-border remittances, money transfer, payments etc initially in Mumbai, India and in Bangladesh. Proposed start date was October, 2008 (Aug 2008) India – –Bharti Airtel and Western Union announced proposed development and piloting of Mobile Money Transfer service in India (Nov 2007) –Obopay (which currently provides mobile-to-mobile money transfers) working on service to handle remittances between US and India (Dec 2008); –plans to link mobile transfers in India to electronic-payment services in India so that consumers can refill prepaid minutes or pay utility bills ( Dec 2008) The Philippines - – SMART Padala (Smart Telecom) – operates in Hong Kong, Yokohama, Abu Dhabi, etc. –G – Cash (Globe Telecom) – operates in the US, UK, Australia, and Taiwan. Pakistan – Has drafted a Regulatory Framework for Mobile Banking (June 2008) Sri Lanka – Central Bank proposes to issue operating guidelines for mobile payments (Jan 2009) Thailand – Venyon and Kasikornbank to cooperate on providing mobile payment services (Feb 2009)

57 Zayed | Shopkeeper 21 years | Sonargaon, Bangladesh Once facilitated money transfer through mobile for the village maulavi who was away in Dhaka; the maulavi sent BDT1,000 in load to Zayeds mobile; once the load was received, Zayed then paid the same in cash to the maulavis family in the village Once facilitated money transfer through mobile for the village maulavi who was away in Dhaka; the maulavi sent BDT1,000 in load to Zayeds mobile; once the load was received, Zayed then paid the same in cash to the maulavis family in the village Other respondents seemed to be doing the same. It is only available internally, but useful to send money to rural areas. Other respondents seemed to be doing the same. It is only available internally, but useful to send money to rural areas. Migrants try to maintain good relations with shopkeepers in their village who provide this service Migrants try to maintain good relations with shopkeepers in their village who provide this service Transactions of up to BDT5,000 (USD70) can be made, however this is dependent upon the shopkeeper having cash available to give the intended recipient in one go Transactions of up to BDT5,000 (USD70) can be made, however this is dependent upon the shopkeeper having cash available to give the intended recipient in one go Commissions can be as high as 20%; the shopkeeper also makes commission on reselling the load Commissions can be as high as 20%; the shopkeeper also makes commission on reselling the load

58 Lack of know-how is key barrier to greater use in BD

59 Other barriers to the use of mobiles for financial transactions Low levels of literacy lack of confidence –Lack of English literacy (mobile content predominantly in English) Except for Philippines, respondents cited difficulty navigating mobile interface, especially older respondents Perception that a certain set of soft skills are needed in order to use such services, none of which they have For the immediate future, banks, hundi, social networks, etc offer sufficient reliability. Open to the idea of new services, though concerns of credibility of service providers prevail; unwilling to invest until results are shown

60 PK and BD most willing to use services, if affordably priced; not so much enthusiasm in PH!

61 The future? Existing methods provide sufficient reliability, are convenient and are affordable BOP migrant workers unwilling to pay large service charges/commissions to transfer remittances BOP migrant workers open to learning about new services, but place premium on trustworthiness Would prefer if banks are involved Even when mobiles remittance services not used, mobiles used to coordinate remittances Sending transaction codes over SMS; calling to confirm receipt, etc.

62 Saleem Afeez | Dispensary owner Saeeda Begum I Housewife 53 years | Dhaka, Bangladesh 46 years | Dhaka, Bangladesh Saleem and Saeedas eldest son is an overseas migrant working in Singapore Saleem and Saeedas eldest son is an overseas migrant working in Singapore He sends his parents BDT 10,000-15,000 per month. He transfers the money from his bank account to his fathers. He sends his parents BDT 10,000-15,000 per month. He transfers the money from his bank account to his fathers. He calls on the day that the transfer is made. After four days Saleem goes to the bank and withdraws the money through a cheque He calls on the day that the transfer is made. After four days Saleem goes to the bank and withdraws the money through a cheque They find this process the most reliable; money has never been delayed or lost. They find this process the most reliable; money has never been delayed or lost. Saleem is aware of the hundi system but does not trust it Saleem is aware of the hundi system but does not trust it He is open to trying financial services but would need substantial proof of its reliability for him to take it up He is open to trying financial services but would need substantial proof of its reliability for him to take it up

63 Migrant definitions Domestic migrant: Individuals belonging to SEC D or E*, who have left there home towns and are currently based in another town / state / province for employment purposes. They should be individuals who: –Still keep in touch with family in their hometown; and –Send money to their family Domestic migrants were selected from key sectors which contribute significantly to towards the countrys GDP Interviews took place in the city they were working in. Overseas migrant: Individuals belonging to SEC D or E*, who have left there home country for employment purposes and have returned (temporarily or permanently) within the three months preceding the survey. They should be individuals who: –Remained in touch with their family in their home town; and –Sent money to their family while overseas Interviews took place at their home in their native country *SEC group C was included in Pakistan because of the difficulty in finding SEC E group migrants; with migration, often housing is improved, which leads to an improvement in SEC category

64 Policy implications: ILDTS policy is counterproductive and unfair Harms overseas workers and is shortsighted with respect to real source of money –Those who call Bangladesh include many who are poor; they work hard to support their families and provide foreign exchange earnings for Bangladesh They spend more money than those from comparator countries on communication (USD 48 v USD 15 for Indians) They have been pushed to use less-convenient Internet mode The government is not taking 52% of the money of IGW operators; it is taking 52% of the hard-earned money of its overseas workers

65 ILDTS policy harmful in other ways: Why are IN, PK & LK earning from BPOs, and BD not? 1. India (position in 2007 GSLI: 1) 2.China (2) 3.Malaysia (3) 4.Thailand (4) 5.Indonesia(6) 6.Egypt (13) 7.Philippines (8) 8.Chile (7) 9.Jordan (14) 10.Vietnam (19) 11.Mexico (10) 12.Brazil (5) 13.Bulgaria (9) 14.United States (Tier II)* (21) 15.Ghana (27) 16.Sri Lanka (29) 17.Tunisia (26) 18.Estonia (15) 19.Romania (33) 20.Pakistan (30) 21.Lithuania (28) 22.Latvia (17) 23.Costa Rica (34) 24.Jamaica (32) 25.Mauritius (25) 26.Senegal (39) 27.Argentina (23) 28.Canada (35) 29.United Arab Emirates (20) 30.Morocco (36) 31.United Kingdom (Tier II)* (42) 32.Czech Republic (16) 33.Russia (37) 34.Germany (Tier II)* (40) 35.Singapore (11) 36.Uruguay (22) 37.Hungary (24) 38.Poland (18) 39.South Africa (31) 40.Slovakia (12) 41.France (Tier II)* (48) 42.Ukraine (47) 43.Panama (41) 44.Turkey (49) 45.Spain (43) 46.New Zealand (44) 47.Australia (45) 48.Ireland (50) 49.Israel (38) 50.Portugal (46) AT Kearny 2009 rankings


Download ppt "Teleuse by the Bangladeshi migrant worker This work was carried out with the aid of a grant from the International Development Research Centre, Canada."

Similar presentations


Ads by Google