The digital divide is the inequality between individuals who have access to technology, such as cell phones and computers with Internet access, and those who do not. The digital divide can also be used to include those with higher and lower incomes relative to the level of technology they can afford or how often they use it.
The digital divide has long existed between developed and developing countries. Compared to the second, the first has better access to technology. However, SaaS mobile device financing platforms are helping to bridge the gap, enabling people in underdeveloped countries to purchase mobile devices they otherwise could not afford.
Mobile device finance companies offer mobile devices to low-income households at a reduced price in exchange for paying for the device over time with lower monthly bill payments. In doing so, these companies strive to help bridge the digital divide.
What is the digital divide?
The digital divide describes the disparity in access to information and communication technologies (ICT) between individuals who have access to them and those who do not.
The term also encompasses differences in Internet connectivity between nations and within socio-economic strata of a given nation.
The United Nations frequently calls for action to promote equality in these areas. Rich countries generally have faster broadband connections and less latency than underdeveloped countries. Mobile technology has been a game changer, bridging the digital divide in developing countries.
How can financing mobile devices reduce the digital divide in developing countries?
Despite this, many people still lack access to affordable internet devices and services. Therefore, they cannot benefit from all that mobile networks offer, including communication and commerce.
Mobile network operators (MNOs) can make these services more accessible to more people by reducing the upfront expense involved and gradually lowering the barriers associated with cost of ownership.
What are the benefits of bridging the digital divide?
Closing the digital divide has many benefits, including improved health care, opportunities for small businesses, and better educational outcomes. Telemedicine services, which allow users to interact with doctors and receive prescriptions through mobile devices, have benefited the healthcare sector.
Mobile payment systems such as mPOS (mobile point of sale) software also benefit small businesses. Attempts to bridge the digital divide can also help the education sector by making educational resources and programs more accessible.
A study estimates that by 2025, approximately 3.7 billion people worldwide will have access to smartphones. As mobile phones become more affordable, carriers are using financing options to reduce upfront costs for end users in developing countries, enabling even more customers to be part of an evolving digital society.
Integrate mobile financing solutions on smartphones
Mobile device financing options can be integrated into phones or other connected devices, providing many benefits to users, service providers and manufacturers. These financing options can also help reduce turnover and protect against fraud and theft.
In conclusion, mobile device financing options for carriers help bridge the digital divide. For low-income people, the added flexibility of buying a new handset without paying upfront can be game-changing for those at the lower end of the income scale.
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