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With all ICT4D approaches it is important to focus on sustainable services right from the start. For example, if one offers a service with free SMS, then people are much likelier to participate. How can these expenses be financed in the long run? What is the business model behind it?\ This needs serious consideration in strategies for generating sufficient revenue to maintain services where needed. During the ICT observatory, it was suggested that harnessing multiple stakeholder support was essential. However not all services can be financially self sustaining such as public services, which need continuous funding, such as HIV / AIDS counselling through mobile phones.

 

An interesting business model comes from India and is called SMSOne. It invests in local citizen reporters, who gather local data for potential information services, which are then sent out with additional advertisements in a short message. Thus the information service gives an income to the local reporter, the company and the subscriber get relevant news, for example when a local water pipe is running again.

 

On the other hand, some donor funding is often short term, and characterized by abrupt termination and it frequently places an unrealistic emphasis on the rapid scaling up of project innovations An important step is achieved when a critical mass of people use a mobile service and it addresses certain needs. That is one step towards a sustainable project, but revenue of some terms is essential too, if the project cannot (or must) be solely publicly funded.
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