This paper examines the growth of mobile phone technology over the past decade and its potential impact on the quality of life in low-income countries, particularly sub-Saharan Africa. It provides an overview of mobile phone coverage patterns and determinants in sub-Saharan Africa, describes the characteristics of primary and secondary adopters, and discusses the channels through which mobile phone technology can impact development outcomes. While current research suggests that mobile phone coverage and adoption have had positive impacts on agricultural and labor market efficiency and welfare in certain countries, empirical evidence is still somewhat limited. Mobile phone technology cannot serve as the "silver bullet" for development in sub-Saharan Africa. Careful impact evaluations of mobile phone development projects are required to better understand their impacts on economic and social outcomes, and mobile phone technology must work in partnership with other public good provision and investment. Mobile phone coverage in sub-Saharan Africa has grown dramatically over the past decade. In 1999, only 10 percent of the African population had mobile phone coverage, but by 2008, 60 percent of the population had mobile phone coverage. Mobile phone subscriptions increased by 49 percent annually between 2002 and 2007, compared with 17 percent per year in Europe. Mobile phones have brought new possibilities to the continent, connecting individuals to information, markets, and services. In rural Africa, mobile phones have represented the first modern telecommunications infrastructure of any kind. Mobile phones have greatly reduced communication costs, allowing individuals and firms to send and obtain information quickly and cheaply on a variety of economic, social, and political topics. An emerging body of research shows that the reduction in communication costs associated with mobile phones has tangible economic benefits, improving agricultural and labor market efficiency and producer and consumer welfare in specific circumstances and countries. As telecommunication markets mature, mobile phones in Africa are evolving from simple communication tools into service delivery platforms. This has shifted the development paradigm surrounding mobile phones from one that simply reduces communication and coordination costs to one that could transform lives through innovative applications and services. The rapid adoption of mobile phones has generated a great deal of speculation and optimism regarding its effect on economic development in Africa. Policymakers, newspapers, and mobile phone companies have all touted the poverty-eradicating potential of mobile phones. However, such sentiments and slogans may not reflect the reality of the consequences of the mobile phone for economic development in Africa. This paper first examines the evolution of mobile phone coverage and adoption in sub-Saharan Africa over the past decade. It then explores the main channels through which mobile phones can affect economic outcomes and appraises current evidence of its potential to improve economic development. It concludes with directions for future research and outlines the necessary conditions for mobile phones to promote broader economic development in Africa.This paper examines the growth of mobile phone technology over the past decade and its potential impact on the quality of life in low-income countries, particularly sub-Saharan Africa. It provides an overview of mobile phone coverage patterns and determinants in sub-Saharan Africa, describes the characteristics of primary and secondary adopters, and discusses the channels through which mobile phone technology can impact development outcomes. While current research suggests that mobile phone coverage and adoption have had positive impacts on agricultural and labor market efficiency and welfare in certain countries, empirical evidence is still somewhat limited. Mobile phone technology cannot serve as the "silver bullet" for development in sub-Saharan Africa. Careful impact evaluations of mobile phone development projects are required to better understand their impacts on economic and social outcomes, and mobile phone technology must work in partnership with other public good provision and investment. Mobile phone coverage in sub-Saharan Africa has grown dramatically over the past decade. In 1999, only 10 percent of the African population had mobile phone coverage, but by 2008, 60 percent of the population had mobile phone coverage. Mobile phone subscriptions increased by 49 percent annually between 2002 and 2007, compared with 17 percent per year in Europe. Mobile phones have brought new possibilities to the continent, connecting individuals to information, markets, and services. In rural Africa, mobile phones have represented the first modern telecommunications infrastructure of any kind. Mobile phones have greatly reduced communication costs, allowing individuals and firms to send and obtain information quickly and cheaply on a variety of economic, social, and political topics. An emerging body of research shows that the reduction in communication costs associated with mobile phones has tangible economic benefits, improving agricultural and labor market efficiency and producer and consumer welfare in specific circumstances and countries. As telecommunication markets mature, mobile phones in Africa are evolving from simple communication tools into service delivery platforms. This has shifted the development paradigm surrounding mobile phones from one that simply reduces communication and coordination costs to one that could transform lives through innovative applications and services. The rapid adoption of mobile phones has generated a great deal of speculation and optimism regarding its effect on economic development in Africa. Policymakers, newspapers, and mobile phone companies have all touted the poverty-eradicating potential of mobile phones. However, such sentiments and slogans may not reflect the reality of the consequences of the mobile phone for economic development in Africa. This paper first examines the evolution of mobile phone coverage and adoption in sub-Saharan Africa over the past decade. It then explores the main channels through which mobile phones can affect economic outcomes and appraises current evidence of its potential to improve economic development. It concludes with directions for future research and outlines the necessary conditions for mobile phones to promote broader economic development in Africa.