Achieving Rural ICT Achieving Rural ICT AccessAccess

……Providing the ConnectivityProviding the Connectivity

Darrell Owen28 February 2008

Dynamics of the Last 10 YearsDynamics of the Last 10 Years

Challenges for the Next 10 YearsChallenges for the Next 10 Years

Examples for the Future: Examples for the Future: Three from USAID’s Last Mile Three from USAID’s Last Mile InitiativeInitiative

Capturing the OpportunityCapturing the Opportunity

TopicsTopics

Dynamics of the Last 10 Dynamics of the Last 10 YearsYearsPublic Sector Private Sector

UnivAccess

TelecomReform &

MarketLiberalization

AdvMobileTech

Privatization,Competition,

MultipleCarriers

ExplosiveMobile

Build-outRuralPhones

TelecomLaw, Regs &

Regulator

There is a Market: N4BThere is a Market: N4B

Broadband: Penetration & Broadband: Penetration & CostsCosts

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

Challenges for the Next 10 Challenges for the Next 10 YearsYears

Public Sector Private Sector

UpdateRegs

ICTs forSocioeconomicDevelopment

WSIS

AdvIP

Wireless

RuralCommunity-wide

Broadbandw/Value-Added

Content &Services

LMILessonsLearned

UnivServiceReform

Nat’lPlans

OtherFinancing

Gov Content& Services

Large Land Mass; Few PeopleLarge Land Mass; Few People Small Pockets of PopulationsSmall Pockets of Populations Dominant Demand is VoiceDominant Demand is Voice No Universal Service FundingNo Universal Service Funding Legal VoIPLegal VoIP Trial: 4 Rural CommunitiesTrial: 4 Rural Communities Satellite BackhaulSatellite Backhaul WiFi and WiFi Mesh WiFi and WiFi Mesh

DistributionDistribution VoIP with Handheld PhonesVoIP with Handheld Phones Interconnection with PSTNInterconnection with PSTN Business Model: Flat Fee for Business Model: Flat Fee for

unlimited local calling; Per-unlimited local calling; Per-minute fee for Long Distanceminute fee for Long Distance

Instantly Profitable on <40 Instantly Profitable on <40 Phones per Soum CenterPhones per Soum Center

Mongolia LMIMongolia LMI

Highly Populated Rural AreasHighly Populated Rural Areas National Goals for Rural AccessNational Goals for Rural Access Legal Domestic VoIP; Illegal Legal Domestic VoIP; Illegal

InternationalInternational State Owned Telcos, but with State Owned Telcos, but with

CompetitionCompetition New Universal Service Fund – New Universal Service Fund –

LMI Provided Technical LMI Provided Technical AssistanceAssistance

USF includes Voice & InternetUSF includes Voice & Internet…Subsidies but also Loans…Subsidies but also Loans

Three Demonstration Three Demonstration Deployments using WiMAX and Deployments using WiMAX and WiFi MeshWiFi Mesh

All with VoIP and PCsAll with VoIP and PCs Backhaul: Fiber, P2P & SatelliteBackhaul: Fiber, P2P & Satellite Distribution: 2 WiMAX (Metro and Distribution: 2 WiMAX (Metro and

Rural) and WiFi Mesh (Rural)Rural) and WiFi Mesh (Rural) Served as Model for USFServed as Model for USF Key Results: Shaping of USF and Key Results: Shaping of USF and

Community-wide Community-wide ImplementationsImplementations

Vietnam LMIVietnam LMI

Reasonably Populated Rural Reasonably Populated Rural CommunitiesCommunities

Broad Coverage with MobileBroad Coverage with Mobile No Universal Service FundNo Universal Service Fund Domestic VoIP Illegal; Domestic VoIP Illegal;

International is LegalInternational is Legal Approach was Setting up a Approach was Setting up a

TeleCenter FranchiseTeleCenter Franchise Centers Individually Owned and Centers Individually Owned and

OperatedOperated Supported by MicroLeasing & Supported by MicroLeasing &

Microloans to EntrepreneursMicroloans to Entrepreneurs Broadband via WiMAX and Broadband via WiMAX and

GSM/HSDPAGSM/HSDPA Services: Int’l VoIP, Content,Services: Int’l VoIP, Content,

Internet Access, Local Calls,Internet Access, Local Calls,MicroLeasing-Loan OutletMicroLeasing-Loan Outlet

Initial Round was 20 Centers Initial Round was 20 Centers with another 30 in Progresswith another 30 in Progress

Centers Profitable < 6 MonthsCenters Profitable < 6 Months

Sri Lanka LMISri Lanka LMI

Key driver is now enhancing Key driver is now enhancing socioeconomic developmentsocioeconomic development

Broadband Internet is an Broadband Internet is an essential ICT componentessential ICT component

Universal Service needs to Universal Service needs to move from subsidies to move from subsidies to investments/loansinvestments/loans

““Service” needs to be Service” needs to be redefined to include value-redefined to include value-added content and servicesadded content and services

Capturing the OpportunityCapturing the OpportunityPublic Sector Private Sector

Deploy community-wide Deploy community-wide wireless IP networks w/ VoIPwireless IP networks w/ VoIP

More access with expanded More access with expanded services yields more value services yields more value and generate more revenueand generate more revenue

Demonstrated rural Demonstrated rural community business models community business models are profitableare profitable

Support small community-Support small community-based microTelcos as based microTelcos as franchiseesfranchiseesSought-After USF and Telco Synergy; reorient USFs from subsidies to Sought-After USF and Telco Synergy; reorient USFs from subsidies to

investments and encourage Telcos to deploy community broadband investments and encourage Telcos to deploy community broadband networksnetworks

Achieving Rural ICT Achieving Rural ICT AccessAccess

Comments & DiscussionsComments & 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

Need for National Scale and Scope: Need for National Scale and Scope: Architecture for Technology, Architecture for Technology, Content-Services & Business ModelContent-Services & Business Model

National Platform

Community Networks

Central-Shared ServicesBackhaul – Satellite &/or P2P Wireless

VoIP Switching, PSTN & Mobile InterconnectionInternet Access & Services (e-Mail & Web Service)

Key Rural-Focused Content, Applications & ServicesPre-Payment and Billing

Technical Support

TCmT

mT

mT

mT

TC

TC

mT

TCmT

mT

mT

mT

mT

mT

mTmT

mT

mT

Shared Backhaul (Satellite or P2P Shared Backhaul (Satellite or P2P Wireless)Wireless)

Switching-Related ServicesSwitching-Related Services VoIP SwitchingVoIP Switching Interconnection to the PSTNInterconnection to the PSTN BillingBilling

Internet AccessInternet Access Technical SupportTechnical Support Start up Cost: Start up Cost:

$100K++$100K++ Key: Lower CostsKey: Lower Costs

through through EconomiesEconomiesof Scale of Scale and Scopeand Scope

National Technology PlatformNational Technology Platform

In-CountryPSTN-Mobile

Networks

SharedSatelliteServices

CommunitySatelliteTerminal

VoIPServer

In-Country Hub

In-CountryPSTN-Mobile

Gateway

PSTNGateways in OtherCountries(optional)

OtherCountries’

PSTN

Internet

Satellite Terminal (or P2P Wireless)Satellite Terminal (or P2P Wireless) Community-level Edge-SwitchCommunity-level Edge-Switch Community Wireless NetworkCommunity Wireless Network VoWiFi Phones, PDAs & PCsVoWiFi Phones, PDAs & PCs Off-Grid Power Options Off-Grid Power Options

(Solar and/or Wind)(Solar and/or Wind) Start up Costs:Start up Costs:

$10-20K+$10-20K+ Keys: RapidKeys: Rapid

Deployment, Deployment, ReplicableReplicable& Scalable& ScalableApproachApproach

Community Technology NetworkCommunity Technology Network

SharedSatelliteServices

WirelessAntenna

In-CountryHub

CommunitySatelliteTerminal

VoIPSessionBorderController