The Dirt Road to the Information Superhighway

Admittedly, Microsoft’s inexpensive, pay-as-you-go “Flexgo” personal computers might not be the most efficient way to introduce computer technology to the developing world. However, as evidenced by the explosion of mobile phones in such areas, affordable technology can always find a vast market in developing and underdeveloped regions. As US economist C.K Prahalad pragmatically puts it, “the high tech industry cannot keep expanding if it continues to sell only to 2.5 million wealthy customers.” Business models for the developing world emphasize affordability. The Flexgo computer costs $300, but requires pre-paid use cards. Users who make payments on time eventually own their computers. The pay-as-you-go system nurtures reliance on technology, and stories abound about entrepreneurs making money with businesses that rely on cell phones and computers. Eventually, some innovations could even wind their way back to Western markets. – YaleGlobal