Ericsson (Nasdaq: ERIC) and United Nations Development Programme (UNDP) Today Entered into a Partnership to Help Raise the Standard of Living in Rural Areas of China Using Affordable, Innovative Mobile Solutions for Development
BEIJING, March 24 /Xinhua-PRNewswire/ -- In a memorandum of understanding signed at a high profile event at the UN's Beijing office, Mats H Olsson, President of Ericsson China, and United Nations Resident Coordinator/UNDP Resident Representative in China Khalid Malik agreed to explore ways for mobile telephony and networks to improve access to health, government, education and financial services.
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The agreement marks a new milestone in Public Private Partnerships (PPP), with greater collaboration between development organizations and leading businesses that have common social interests. The three-year partnership, starting immediately, will showcase the potential for growth in emerging markets, particularly in low-income, rural regions.
The partnership aims to foster growth and bridge the digital divide, using business-led solutions that accelerate and sustain access to services and livelihood opportunities in rural areas. Guided by China's national development priorities, Ericsson and UNDP will identify promising ways to use mobile technology to achieve social aims and develop pilot projects.
One example is access to rural financial services, which is high on the agenda of China's government. Geographical isolation can make it expensive and difficult for Chinese in rural areas to get credit, send remittances or make deposits. A mobile phone can change the nature of rural finance by making banking services immediately accessible. Farmers and entrepreneurs can also use mobile communications to get up-to-date market information.
Olsson says: "This is an example of a genuine partnership between public and private sectors that has the potential to lift communities around the world despite location. Working with UNDP provides Ericsson an opportunity to apply its cost-effective and innovative mobile solutions to create sustainable rural connectivity and mobility to achieve the targets of the UN's Millennium Development Goals, and China is one example of where we have put this commitment in action. This agreement also reflects Ericsson's vision of an all-communicating world."
Malik adds: "There is huge potential for mobile phones to transform people's lives in the developing parts of the world. By opening the doors to concrete, innovative, affordable and effective mobile services, we can provide a whole range of tools to better meet the needs of the poor."
With slight adaptations of existing business models, the private sector can develop large new market segments in areas with low average revenue per user. Initiatives set in motion by the partnership are intended to establish incentives that private and public entities will seize upon, helping expand these segments further.
Ericsson is leading the market with sustainable energy solutions for telecoms, and applying these solutions to the rapid growth of the communications sector in China will have a positive contribution to China's overall sustainability goals. China is also an ideal place to develop new technologies and services: widespread mobile network coverage and use of mobile phones demonstrate that the foundations are in place for the successful introduction of a range of telecom services that will improve socioeconomic conditions.
"This type of innovation at the frontier is precisely what this new partnership aims to foster," Malik says. "By uniting UNDP's vast experience in development with Ericsson's cutting-edge telecoms expertise, I am confident that we can find solutions that really make a difference -- for China and for the world."
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Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges.
For more information, visit http://www.ericsson.com or http://www.ericsson.mobi .
About UNDP in China
UNDP fosters human development to empower women and men to build better lives in China. As the UN's development network, UNDP draws on a world of experience to assist China in developing its own solutions to the country's development challenges. Through partnerships and innovation, UNDP works to achieve the Millennium Development Goals and an equitable Xiao Kang society by reducing poverty, strengthening the rule of law, promoting environmental sustainability, and fighting HIV/AIDS.
For more information, visit http://www.undp.org.cn .
