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Achieving Rural ICT Access

This article explores the dynamics and challenges of rural ICT access in the last 10 years and provides examples from USAID's Last Mile Initiative. It emphasizes the need for national-scale and scope, central-shared services, and community networks.

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Achieving Rural ICT Access

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  1. Achieving Rural ICT Access …Providing the Connectivity Darrell Owen 28 February 2008

  2. Topics • Dynamics of the Last 10 Years • Challenges for the Next 10 Years • Examples for the Future: Three from USAID’s Last Mile Initiative • Capturing the Opportunity

  3. Dynamics of the Last 10 Years Public Sector Private Sector AdvMobileTech TelecomReform &MarketLiberalization Privatization,Competition,MultipleCarriers TelecomLaw, Regs &Regulator ExplosiveMobileBuild-out UnivAccess RuralPhones

  4. There is a Market: N4B

  5. Broadband: Penetration & Costs Use • Users per 1,000 inhabitants: • USA: 551 • Latin America: 106 • Sub Saharan Africa: 20 • South Asia: 10 Cost • Cost of 20 hours of Internet: • USA: 0.5% of monthly GNI/Capita • Latin America: 30% • Sub Saharan Africa: 64% • East Asia and Pacific: 68% Source: 2005 World Bank Development Indicators

  6. Challenges for the Next 10 Years Public Sector Private Sector AdvIPWireless ICTs for SocioeconomicDevelopment WSIS LMI LessonsLearned Nat’lPlans UpdateRegs RuralCommunity-wideBroadbandw/Value-AddedContent &Services Gov Content& Services UnivServiceReform OtherFinancing

  7. Mongolia LMI • Large Land Mass; Few People • Small Pockets of Populations • Dominant Demand is Voice • No Universal Service Funding • Legal VoIP • Trial: 4 Rural Communities • Satellite Backhaul • WiFi and WiFi Mesh Distribution • VoIP with Handheld Phones • Interconnection with PSTN • Business Model: Flat Fee for unlimited local calling; Per-minute fee for Long Distance • Instantly Profitable on <40 Phones per Soum Center

  8. Vietnam LMI • Highly Populated Rural Areas • National Goals for Rural Access • Legal Domestic VoIP; Illegal International • State Owned Telcos, but with Competition • New Universal Service Fund – LMI Provided Technical Assistance • USF includes Voice & Internet…Subsidies but also Loans • Three Demonstration Deployments using WiMAX and WiFi Mesh • All with VoIP and PCs • Backhaul: Fiber, P2P & Satellite • Distribution: 2 WiMAX (Metro and Rural) and WiFi Mesh (Rural) • Served as Model for USF • Key Results: Shaping of USF and Community-wide Implementations

  9. Sri Lanka LMI • Reasonably Populated Rural Communities • Broad Coverage with Mobile • No Universal Service Fund • Domestic VoIP Illegal; International is Legal • Approach was Setting up a TeleCenter Franchise • Centers Individually Owned and Operated • Supported by MicroLeasing & Microloans to Entrepreneurs • Broadband via WiMAX and GSM/HSDPA • Services: Int’l VoIP, Content,Internet Access, Local Calls,MicroLeasing-Loan Outlet • Initial Round was 20 Centers with another 30 in Progress • Centers Profitable < 6 Months

  10. Capturing the Opportunity Public Sector Private Sector • Key driver is now enhancing socioeconomic development • Broadband Internet is an essential ICT component • Universal Service needs to move from subsidies to investments/loans • “Service” needs to be redefined to include value-added content and services • Deploy community-wide wireless IP networks w/ VoIP • More access with expanded services yields more value and generate more revenue • Demonstrated rural community business models are profitable • Support small community-based microTelcos as franchisees Sought-After USF and Telco Synergy; reorient USFs from subsidies to investments and encourage Telcos to deploy community broadband networks

  11. Achieving Rural ICT Access Comments & Discussions Contact Information @ USAID: Joe Duncan (ICT Team) E-mail: jduncan@usaid.gov Phone: +1 (202) 712-0474 Contact Information: Darrell Owen E-mail: darrell_owen@msn.com Phone: +1 (703) 980-4053SKYPE: darrelleowen

  12. Need for National Scale and Scope: Architecture for Technology, Content-Services & Business Model Central-Shared Services Backhaul – Satellite &/or P2P Wireless VoIP Switching, PSTN & Mobile Interconnection Internet Access & Services (e-Mail & Web Service) Key Rural-Focused Content, Applications & Services Pre-Payment and Billing Technical Support National Platform Community Networks mT mT mT mT TC TC mT mT TC mT TC mT mT mT mT mT mT mT mT

  13. National Technology Platform • Shared Backhaul (Satellite or P2P Wireless) • Switching-Related Services • VoIP Switching • Interconnection to the PSTN • Billing • Internet Access • Technical Support • Start up Cost: $100K++ • Key: Lower Coststhrough Economiesof Scale and Scope

  14. Community Technology Network • Satellite Terminal (or P2P Wireless) • Community-level Edge-Switch • Community Wireless Network • VoWiFi Phones, PDAs & PCs • Off-Grid Power Options (Solar and/or Wind) • Start up Costs:$10-20K+ • Keys: RapidDeployment, Replicable& ScalableApproach

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