Business Models for the Last Billion: Market Approaches to Increasing Internet Connectivity

The authors, Steve Schmida, Isaac Williams, and Caitlin Lovegrove, sought input from over 100 industry and technology leaders, entrepreneurs, investors, government officials, and development practitioners. The report aimed to identify innovative, low-cost business models that could enable the world's lowest-income consumers to participate in the emerging digital economy. The report highlights the potential market for Internet connectivity in low-income populations, with over four billion people worldwide lacking access. Current approaches to providing Internet connectivity have their limits, and network operator-driven business models that rely primarily on subscriber revenue have brought the first 3 billion people online but are not commercially viable for rural, low-income markets. Innovative business solutions that reach the most challenging markets already exist, relying on innovative strategies to supplement customer revenue and drive down costs. These business models tend to keep costs low, have a local presence, and diversify revenue streams. They lower costs by using commoditized technologies, renewable energy, local switching, and content servers, among other cost-saving elements. The report advocates a collaborative approach to address Internet connectivity gaps for remote and low-income populations. It highlights the need for innovative, cross-sector partnerships that bring together diverse organizations with an interest in universal connectivity. By offering early-stage blended finance and incubation services to emerging connectivity business models, public and private partners can work together to bring high-impact, viable ventures to scale. The report's key findings emphasize the importance of a collaborative approach to address Internet connectivity gaps. It highlights the need for innovative business models that can sustainably provide connectivity to low-income consumers and the importance of cross-sector partnerships in scaling these solutions. The report also emphasizes the need for focus, leadership, and collaboration to bring high-impact, viable ventures to scale. The report's authors conducted a several-month outreach and analysis effort focused on the future of Internet connectivity for marginalized populations. They consulted with over 100 industry leaders, entrepreneurs, investors, government staff, and development practitioners worldwide. The report's final form reflects the views of SSG Advisors and the authors alone. The report's methodology involved a combination of interviews and highly interactive small-group sessions held in five global locations. The authors sought to identify innovative, low-cost business models that could enable the world's lowest-income consumers to participate in the emerging digital economy. The report's findings highlight the potential market for Internet connectivity in low-income populations and the need for innovative business models that can sustainably provide connectivity to these populations.