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How to establish broadband markets in rural areas.

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Presentation on theme: "How to establish broadband markets in rural areas."— Presentation transcript:

1 How to establish broadband markets in rural areas

2 2 Tanzania ICT4RD Project (Costech, DIT, KTH) Population (2002- census) Mara=1,369,000 Bunda=260,000 Serengeti=177,000 Coast = 900,000 Bmoyo=230,000

3 Broadband vs Internet local versus international connectivity Local content exists! Administration: Budgeting, economic control, district-schools-healthcare units Education: In-service teacher training curricula Healthcare: Sentinel surveillance, remote consultations, patient records Static part of Internet on local cache server Narrowband Internet connection to reach the dynamic information in the world

4 Enabling factors National policies related to ICT (relevant ministries) Telecom regulations (Independent regulator) Other legal issues: Joint facilities and their management, right of way Availability of infrastructure: National backbone, access networks, last/first mile Human resources – Education and training, Supply chain – distribution and maintenance

5 Enabling factors cont.. ICT Awareness – ICT as an Enabler, ICT is cross cutting, etc Political will – Support the adoption of ICT in their Communities Institutional mechanisms – Involving all players in the community – A platform to facilitate local participation

6 Market actors Producers – maximize profit under the market constraints – Service providers, network providers, infrastructure owners – Supply chain: equipment distribution, deployment, maintenance Consumers/Consumer agents – maximize the quality/cost ratio Policy and regulations – Policy makers generate legislation – Regulators arbitrate and balance between market actors and society interests

7 Getting Started Market sizes Dar - Bunda – Nata, Stockholm – Jokkmokk – Tarfala Who will deploy the last/first mile connectivity Commercial interest? Request For Tenders! What is in it for the districts ? If no one else, it will have to be left to local entrepreneurs, NGOs, interested community members

8 Economic considerations Facilitating investments – Public sector services constitute 30-40% of traffic volumes in developed countries and substantially more in developing countries – Initial focus on Local administration, Education and Healthcare Operating costs – Turn all stones to find paying customers, both public and private

9 ICT4RD Coverage Serengeti Pilot 1GE Bunda-Nata-Mugumu 2 District Councils, 2PHCs, 2Dhs, 2Schools, 1TTC,.. Private individuals Local ownership Wami pilot 1GE Chalinze-Lugoba-Wami-Miono 2 Schools, 3PHCs,ICT Center Local ownership*

10 Serengeti Pilot Diagram here

11 Wami Pilot

12 Local Govt Involvement

13 Different Business models PPP – Private include both consumers and producers!! Private Supported Individuals Cooperatives Government subsidized

14 Challenges Political Operational Rural

15 Operational Challenges Maintenance Lack of Qualified Technical Staff ICT devices not available in rural Proper working environment

16 Political Challenges Government readiness to support Misunderstanding of the PPP Rigidness of LG to cooperate

17 17 Rural - Challenges Availability and reliability of power supply Rural Low purchasing power Low density Computer illiteracy Etc..

18 Conclusions ICT makes a difference Leadership and ownership Use emerging technologies Outline of the rest of the day

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