2 Agenda ICT Development Vs Digital Strategy Plan / Policy This session will assess the long-term potential of Uganda’s developing ICT network and will explore the investment potential of such projects in Uganda ICT Development Vs Digital StrategyAdministrative and legislative policy that may hinder or enhance development in this sector.How to ensure long-term returns on investments and making joint venture partnerships work.Plan / PolicyHow to ensure it is working?
3 Three Major Trends are Reshaping the Global Landscape Social DemographicsEnvironmental/ EnergyEconomicsAgingShrinkingHypergrowth
4 Cities are Already Being Managed Using the Intelligent Network Real EstateGovernmentSports & EntertainmentPublic SafetyEducationI’d like to share with you a real example of how you can run a city using the network as the platform.Many of you have heard about Songdo in korea quite a bit over the past few years.Let me tell you…this is not a vision, it’s not a fantasy. It’s real.10s of thousands of residents are already living here.It’s the world’s first smart+ connected city that has been built with all of the sustainability elements in mind…economic, social and environmental.It has been built with citizen services and needs in mind.All essential items – healthcare, government, transportation, utilities, safety and security, citizen services such as healthcare/education – are all within a twelve minute walk.Studies have shown that if it’s further, people will get in their cars and drive which defeats the purpose.Built on reclaimed land, the first truly sustaina ble greenfield city built.CLICKWhat what how does this city run with the network as the platform?Providing real-time traffic information to citizens… they can plan their commute to work or use public transportation… efficiency, reduced emissionsIt provides Providing remote healthcare services/info to citizens… proactive health care, extending healthcare access, reducing health-related city expenses, etc.Automating and remotely monitoring building security… higher security, lower costSo it’s really about a mindshift…thinking differently about how cities are being built. We can’t keep doing the same things. There must be a fundamental change in the way that cities are built. And its happening now…ICT master planning is a critical element of any greenfield or brownfield development.INTEGRATED OPERATION CENTERS, and access to BIG DATAEnvironmentalEconomicSocialTransportationUtilitiesHealthcare
5 Connected Sports & Entertainment New Cloud Consumption Models Are EmergingConnectedReal EstateEducationConnected Sports & EntertainmentHealthcareTransportationGovernmentUtilitiesChild Locator / Elder CareExecutive Suite*Office Resource Management*Green aware*On-premises Safety and Security*Digital LibrarySmart Business CentreInfo signage (I, II)*Smart Card (I, II)*Smart KiosksResidential Service*Energy dashboardSmart Connected Maintenance*Integrated Building Management*Triple PlayOffice in a BoxConvention in a boxCollaborationTelepresenceVirtual Concierge (residential)*Integrated Operation Center for in-building*Private Virtual Office*Asset Tracking*Virtual AttendantCar Park Management (I, II) *Mobile ConciergeLocation based push advertisingUnified Communication for SchoolsMobility for SchoolsConnected LearningVirtual ClassroomsMobility for Schools and Higher EducationResearch and Education NetworksRescue Wireless…HD videoScreen Level Dynamic Power ControlCar Park ManagementDigital Media SolutionsMulticast Video DistributionTargeted AdvertisementsDigital SignageConnected ImagingCare at a distanceClinical CollaborationMedical Grade NetworkConnected HospitalPersonal travel AssistantIdentity ManagementDigital transportation hubIntelligent traffic control and managementSmart Road PricingAsset ManagementSmart work CenterService EfficiencyCitizen ExperienceCity ManagementCity BicycleConnected Municipal BuildingGovernment tele-workerMobile Government Inspection and Asset ManagementGovernment WebExCity-wide WirelessCity PortalUrban Monitoring & MeasurementRenewable & co-GenerationCitizens Energy EfficiencyIntelligent Power ManagementGrid monitoring and controlMore Utilities for more PeopleReduce Carbon EmissionsIntelligent HVACPower back-up DistributionEnergy OptimizationEducationHealthcareFuture of Work
6 ICTs Contributes to Growth— Broadband Even More Incremental Annual GDP Growth from Every Ten Percent Points Difference in ICT PenetrationBroadband adoption encompasses the expansion of broadband availability as well as the use of devices, applications, content, and services that leverage high-speed IP communications. Government policies can impact all facets of adoption. Countries that do not consider the need to make progress on broadband risk significant loss of competitiveness.The rationale for increasing broadband adoption, through both expanding infrastructure and increasing broadband usage, is based on both short- and long- term impacts. In the short term, the construction of high-speed networks stimulates local economies by immediately employing labor and purchasing materials. Several studies have identified short-term employment effects stemming from (1) direct labor employed to build broadband infrastructure and (2) indirect and induced jobs that are created by suppliers and services supporting the construction activity. One review of six studies that estimate various employment impacts suggests that, on average, direct and indirect jobs result per employment opportunity focused on broadband network construction; this figure rises to for direct, indirect, and induced jobs created.3 In the long term, business utilization of broadband can result in network effects and gains in productivity.In the United States, the employment impacts caused by network effects are estimated to be 1.17 jobs per direct and indirect job.4 Recent research by Qiang and Xu at the World Bank examined cross-country time-series and firm-level data; they determine that broadband has “long-term effects on growth, and contributes to the growth of a number of non-telecom industries, especially high-tech industries.Source: World Bank, 2009
7 Intensity of Broadband Use Also Contributes to Economic Growth New Deloitte Report Demonstrates (Nov. 2012):Doubling of mobile data use leads to an increase of 0.5 percentage points in GDP per capita growth rates;Countries characterized by a higher level of data usage per 3G connection have seen an increase in their GDP per capita growth of up to 1.4 percentage points;In developing markets, a 10 per cent expansion in mobile penetration increases productivity by 4.2 percentage points.New research mobile data use…
8 Broadband Policies Worldwide Countries with National Broadband Plans/ Policies (2011)The UN Broadband Commission estimates that 119 countries have implemented broadband policies; during the global economic crisis of 2008 and 2009, at least a dozen countries included broadband network investment in their countercyclical fiscal stimulus measures.Source: UN Broadband Commission “The State of Broadband 2012”8
9 ICT and Growth Frameworks developed by Cisco in 2008 through 2011 Global IT Reports (WEF)
10 Cisco Analysis of National BB Plans In WEF Global IT Report 2013 (April) Methodology:Analyzed the extent of supply- and demand-side policies focused on increasing broadband adoption10
11 Competitiveness and Network Readiness is Highly Correlated LowHigh
12 Supply- and Demand- Side Policy Options Competition and InvestmentAffordability of Devices and AccessSpectrum Allocation and AssignmentGovernment Leadership in Broadband Use and Online ActivityReducing Infrastructure Deployment CostsICT Skills Development1. Competition and investment policies. These policies encourage private-sector entry and investment in broadband networks, as well as technology- or service-neutral rules that give operators the greatest degree of flexibility. In addition, they can include policies that promote effective competition in international gateways and/or wholesale nondiscriminatory access. For example, the United States’ Connecting America: The National Broadband Plan (2010) included a wide range of recommendations to provide greater clarity on its broadband market and encourage investment; the recommendations in that plan ranged from reviewing wholesale competition regulations and clarifying interconnection rights and obligations to recommending balance in policies around copper retirement.102. Spectrum allocation and assignment. These policies allocate and assign spectrum to allow both existing and new companies to provide bandwidth-intensive broadband services. These policies also encourage the implementation of rules to allow operators to engage in spectrum trading3. Reducing infrastructure deployment costs. These include policies that allow for access to rights-of-way, infrastructure sharing, and/or open access on critical infrastructure. Public rights-of-way can include existing infrastructure owned by public entities, such as railways or electricity grids. Open- access policies can include government-sponsored or dominant-operator networks to enable greater competition in downstream markets4. Core network expansion: Market led, government led, or a mix. This category includes explicit and implicit strategies for core network infrastructure expansion that are: (1) market driven with few government directives, (2) a government-led (or majority-owned) network company, or (3) some combination of public and private cooperation in core infrastructure buildout that can encompass an official public- private partnership or a division in roles between public and private entities to provide the core network. Australia’s National Broadband Network (2009) is an example of a national plan where a government-owned entity will provide national core network infrastructure5. Inclusive broadband availability. These policies focus directly on closing broadband availability gaps for remote or marginalized populations. Options here include actions to build out infrastructure to underserved and/or rural areas, possibly utilizing universal service obligations and/or universal service funds1. Affordability of devices and access. These policies include, but are not limited to, targeted subsidies for device purchases by low-income households, decreasing or removing luxury taxes on ICT devices, and low-cost leasing programs.Morocco’s Digital Morocco 2013 (2008) strategyhighlights programs to subsidize computers and Internet connections for teachers and students. The strategy also emphasizes public-private partnerships to offer similar low-cost device- and-access packages to different sections of the population.2. Government leadership to utilize and promote broadband. These include policies that encourage the deployment of e- government services and portals, as well as the government operating as an “anchor-tenant” for broadband service. Japan’s New Strategy in Information and Communications Technology (IT) (2010) highlights recommendations for improving and increasing the availability of e-government services and for driving efficiency in government ICT systems. These services include an emphasis on cloud technology and promoting citizen participation inpolitical activities by electronic voting.3. ICT skills development. This category includes programs to increase ICT-related skills and familiarity across the population, such as digital literacy programs. ICT skills development policies also target actions intended to increase community usage and access through “telecenters” and public- access sites as well as increasing technical skills, such as computer science and network engineering. Nigeria’s National Information Communication Technology (ICT) Policy DRAFT (2012) emphasizes the introduction of ICT training at all school levels through the development of specialized training institutes.17 It also provides for computer and Internet access in public facilities such as post offices, schools, and libraries.4. Facilitating online and local content, applications, new technologies, and services. These policies include programs such as targeted campaigns to increase and localize online content, sometimes with a focus on translation into local language(s).This category also includes actions and legislation that can foster new applications, technologies, and services by supporting e-transactionsor online payments and enforcing intellectual property protection to foster innovation in online services and applications. Qatar’s National ICT Plan: 2015 (2011) recommends policies to accelerate small- and medium-sized enterprise use and involvement in ICT services.18 The plan also emphasizes local content creation, technology to recognize Arabic characters, and a focus on an e-health system that employs broadband and ICTs to enhance healthcare services.5. Consumer protection and empowerment. These policies protect consumers and enhance transparency between businesses and customers. They include clear regulations around personal data, privacy, and truth in advertising of broadband offerings. These actions help to ensure consumer trust in conducting private and business activity online. The Philippine Digital Strategy: Transformation 2.0 (2011) calls for onlineconsumer protection, consumer awareness, and the creation of data security as well as data privacy regulations.Core Network Expansion: Market-led, Govt-led, or a MixOnline & Local Content, Applications, New Technologies & ServicesInclusive Broadband Availability (e.g. with USOs or USFs)Consumer Protection and Empowerment
13 From Two Dimensions of the ICT Map … … to Six Keystones for a Net Strategy Market/CompetitionMapping ICT DevelopmentEcosystemInfrastructurePolicy/RegulationsApplications & ContentGovernment BudgetsSkills for ICTInfrastructure Investment
14 Evaluation & Assessment MARKET STRUCTURE/ COMPETITIONSP Market Structure/CompetitionPlatform Diversity/DifferentiationPOLICY/REGULATIONSEase of Entry (Infrastructure)Ease of Entry(Promoting Applications)APPLICATIONS& CONTENTBusiness/Innovation EnvironmentICT Entrepreneurship/ClustersGOVERNMENTBUDGETSeGovernment & Gov ICT PioneeringDemand Aggregation/eProcurementICT SKILLSIndividual/Teachers/SMEs’ IT ‘Literacy’Technical/Advanced CapabilitiesPrivate & PublicINFRASTRUCTURE INVESTMENTCore NetworkAccess NetworkIP Device AvailabilityEase of Investment/Access to CapitalA Digital Strategy is a comprehensive government lead plan that outlines the goals, stakeholders, process, budget, and monitoring mechanisms to make a country’s digital future a reality.Digital strategy/agenda does not mean telecommunications policy and should not be limited to infrastructure.A digital strategy relates to an ecosystem where public citizens and communities, local and federal government, and small and large enterprises (the three agents) take advantage of the country’s ICT infrastructure, skills, and content (the three enablers) to increase economic welfare.It is a delicate environment where demand and supply factors across all elements interact looking to reach equilibrium. However, the existing ICT ecosystem (business climate, quality of ICT regulations, ICT market competition) and ICT infrastructure (telecommunications networks infrastructure) in many countries could lead to an inferior equilibrium where the ICT sector would growth at a slow slope, perhaps just a few points above the country’s GDP growth.A digital strategy is necessary to find the ICT ecosystem and infrastructure market failures that are limiting growth in order to identify enablers’ accelerators that can quickly move the country exponentially to the digital future.
15 Cisco Networking Academies in Africa 49,345 Students894 Instructors180,988 Students from Program Start52,531 Cisco Certifications
16 Cisco and Africa: Growing Together Long period of Involvement in African countries including Kenya and Nigeria1Committed to Being a Key Partner in Africa’s Transformation into a Connected Nation2Rich Multi-Layered Partnership in the Areas of Education, Health , and Services3
17 How We Are Enabling the Creation of a New ICT IndustryGlobal Open StandardsSmartRegulationPublic PrivatePartnershipsNew EcosystemVisionary LeadershipSo how can we enable a new participative democracy?we needvisionary leadership by political and key business leaders to visualize a different way to build and operate a cityopen global standards so that it can become a globally interconnected city, technologically and economicallySmart regulation by governments to redefine infrastructure development and city operationsPublic private partnerships with governments and private enterprises and I would add to that now a 4th P – PeopleGlobal ecosystem of partners that include academia, business, and social networks.It takes all five of these factors…without one, it changes completely.