What does a smartphone state about the social well-being of a country?

It is beyond doubt that mobile phones, especially smartphones, are transforming India. It has improved our income and hence our standard of living. Its ownership and effective use not only have an enormous economic impact, also resulted in significant improvements to the socio-economic fabric of our society at large. It is no longer limited to being only a communication tool. It has evolved to become a critical platform to deliver essential services. Hence it can be safely concluded that increased smartphone ownership will naturally bring-in socio-economic benefits.

In fact, for the first time in India, household ownership of mobile device is being used as an indicator of societal and economic wellbeing as it serves as an ideal proxy for mobile usage.

Next time you see a person with a mobile phone, you can clearly draw the following conclusions about his/her social status. Read on to know what.

1. Mobile Ownership and the Human Development Index

Households that own a mobile phone appear to be enjoying an economic consumption premium over those who do not own a mobile. It has been observed that as smartphone usage has increased in India, there has also been a corresponding improvement in the Human Development Index (HDI). Therefore, it can be said that mobile ownership is one of the important determinants that have a multiplier effect on the HDI.

• It is interesting to note that the state of Kerala, which has the country’s highest HDI at 76.4, enjoys a 79 percent rural mobile ownership, also amongst the highest in the country. It is important to mention here that Kerala is the only state with almost 100 percent literacy, which is an important composite of the Human Development Index.

• Andhra Pradesh, India's fourth-largest state by area and fifth-largest by population, reports a HDI of 59 percent and a rural mobile ownership at 55.1 percent. The state reports a lower HDI as well as rural mobile ownership compared to neighbouring southern states of Karnataka and Tamil Nadu. With a population of 84 million where 2/3rd live in rural areas, indicates that nearly 55 million rural households do not own a mobile.

• Uttar Pradesh, one of the oldest states in the country with the fourth largest economy in India reports an HDI of 53 percent and a rural household mobile ownership of 55.4 percent.

2. Mobile Ownership & the Economic Consumption Expenditure Premium

It is observed that mobile owning households in India enjoy economic premium prosperity over households that do not own a mobile in India (2009-2010).

• Indian households that own a mobile device enjoy a 62 percent economic prosperity premium compared to those without a mobile.

• This premium is even more pronounced with respect to urban communities where mobile phone-owning households are – on average – 85 percent better off in economic terms.

3. Literacy

Literacy, which an important indicator of social development in a nation, also reveals interesting trends and depicts covariance with mobile ownership.

• It is observed that mobile ownership touches 80 percent on an average once a household attains secondary education.

• It can also be observed that mobile ownership increases by 10 percentage points once a household becomes just literate i.e. the head of the family can read and write but as not attended any formal schooling.

• Furthermore, the probability of owning a mobile is more than 1.5 times in case of a post graduate household compared to a household that is not-literate.

• On the other hand, the proportion of rural not-literate households owning a mobile is 40 percent whereas it is 20 percent higher in urban not-literate households. The rural-urban divide in terms of mobile ownership narrows down as educational attainment improves amongst Indian households.

4. Healthcare

Owning a mobile has made it possible for households to instantly access basic healthcare services that have contributed to reduced mortality rates.

A good example of how the mobile device can be used to deliver basic healthcare services would be SPARSH - India’s first sexual and reproductive health services application launched by Tata Docomo in association with the Family Planning Association of India. For individuals seeking advice with puberty, menstruation, pregnancy and contraception, the service disseminates information via Interactive Voice Response (IVR), SMS and Out Call technologies, giving users privacy and providing timely information (critical in life-threatening situations).

Note: The study has been jointly conducted by Tata Institute of Social Science (TISS) and Tata Teleservices Ltd.

Image credits: indiatimes, mobile multipliers