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

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Presentation on theme: "Achieving Rural ICT Access …Providing the Connectivity Darrell Owen 28 February 2008."— Presentation transcript:

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

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

3 Dynamics of the Last 10 Years Public Sector Private Sector Univ Access Telecom Reform & Market Liberalization Adv Mobile Tech Privatization, Competition, Multiple Carriers Explosive Mobile Build-out Rural Phones Telecom Law, Regs & Regulator

4 There is a Market: N4B

5 Broadband: Penetration & Costs Source: 2005 World Bank Development Indicators Users per 1,000 inhabitants: USA: 551 Latin America: 106 Sub Saharan Africa: 20 South Asia: 10 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% Use Cost

6 Challenges for the Next 10 Years Public Sector Private Sector Update Regs ICTs for Socioeconomic Development WSIS Adv IP Wireless Rural Community-wide Broadband w/Value-Added Content & Services LMI Lessons Learned Univ Service Reform Nat’l Plans Other Financing Gov Content & Services

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

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

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

10 Key driver is now enhancing socioeconomic development Key driver is now enhancing socioeconomic development Broadband Internet is an essential ICT component Broadband Internet is an essential ICT component Universal Service needs to move from subsidies to investments/loans Universal Service needs to move from subsidies to investments/loans “Service” needs to be redefined to include value- added content and services “Service” needs to be redefined to include value- added content and services Capturing the Opportunity Public Sector Private Sector Deploy community-wide wireless IP networks w/ VoIP Deploy community-wide wireless IP networks w/ VoIP More access with expanded services yields more value and generate more revenue More access with expanded services yields more value and generate more revenue Demonstrated rural community business models are profitable Demonstrated rural community business models are profitable Support small community-based microTelcos as franchisees 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 USAID: Joe Duncan (ICT Team) Phone: +1 (202) Contact Information: Darrell Owen Phone: +1 (703) SKYPE: darrelleowen

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

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

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


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