global perspectives of the digital divide...1,0 1,2 1,4 1,6 1,8 senegal togo ghana tanzania uganda...

Member of

Member of

The Global Perspective of the Digital Divide- Satellite Services in Asia and Africa

Workshop „Digital Divide and Satellite: Chances, Difficulties and Actions“

Bonn, 11.02.2004

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Content

1. Overview

2. Demand for information and communication

3. Supply of Satellite Services in Africa and Asia

4. Political Action

5. Conclusions

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Overview1.

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1. Overview1.1 What is the digital divide?

Access to telecommunication and data services is distributed unevenly across the world, with Africa being especially affected by this “Digital Divide”.

Interregional Internet Bandwidth, 2003

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1. Overview1.1 What is the digital divide?

Source: ITU 1998

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ICT growth in developing countries is outpacing the West. The real challenge are internal urban-rural divides that leave many outside the information age.

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1. Overview1.2. Our view and experience on the Digital Divide

Tackling the Digital Divide has to take into account the dimensions and issues that influence deployment and use of ICTs in Developing Countries.

Supply of ICT Political Tasks

Demand for Information and Communication

Impact on the Digital Divide

• Disposable income• Social and cultural

context• Education

• Technology• Market• Sales• Regulation

• Political objectives• Universal Access• Regional development

• Provision of public goods• eGovernment• eLearning• eHealth

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2. Demand for information and communication

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2. Demand for information and communication2.1. Disposable income – the main driver for the actual demand for ICT services

The level of income is the major source of demand for ICT. Economic growth within the new EU member states should fuel activities in the ICT sector.

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Traff ic Volume (million minutes)

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P pe

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USD

Kyrgyzstan Moldova Armenia Angola

Sw aziland Egypt Serbia and Montenegro Albania

Namibia Kazakhstan Bulgaria Romania

South Africa Russia Turkey

GDP per Capita and Traffic Volume, 2002

Source: Telegeography

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2. Demand for information and communication2.2. Influence of the framework conditions

Whether the potential demand for communication and information can be satisfied depends on a variety of framework conditions.

Demand for communication and information

Culture

Regulation

ICT Infrastructure

Content

HumanResources

& Skills

Alternative InformationChannels

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3. Supply of Satellite Services in Africa and Asia

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3. Supply of Satellite Services in Africa and Asia 3.1 Market aspects

The market for satellite services in developing countries is characterized by shared access and the need for alternatives to deficient “orthodox” networks.

IP-based technologies and W-LAN offer alternatives to „orthodox“ telco and Internet access.ISPs are migrating up the value chain to become infrastructure providers. Satellite services have to provide service specifications for ISPs’ to offer shared voice as well as broadband data services.

The peculiar market characteristics in developing countries…

For large parts of the population access to telecommunication and the Internet means shared access (Public Call Offices, Internet browsing centers).Orthodox fixed and mobile networks do not cover population and area only partial.

…call for innovative solutions that can be met by satellite services…

… although to a differing degree in different markets.

Varying stages of market development and competition in African and Asian markets require a cautious approach to pricing and product development in each market

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3. Supply of Satellite Services in Africa and Asia3.2 Distribution and Sales

Due to increasing importance of low-cost VSAT and satellite-based voice services, Satellite operators have to cooperate with local distribution partners.

There is a tendency of satellite services to come closer to end-user markets.

Traditional satellite services

Usual customers for satellite operators in African markets are:• large corporations, • international

organizations,• PTOs and• ISPs.

=> Sales channels forlow volume markets.

Low-cost Ku-Band VSAT services

Main customers for broad-band via low-cost Ku-Band VSAT services are:

• Small and medium-sized enterprises (SMEs),

• Cyber cafés,• Educational institutions,• Health institutions.

=> Sales channels for largeend customer markets

Thuraya – “satellite-based GSM services”

Coverage in Northern & Central Africa, Middle East, South Asia and South & Central Europe:Customers are:

• individual end users• providers of rural public

phones (e.g. Nigeria)

=> Sales channels for (highend) end user markets

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3. Supply of Satellite Services in Africa and Asia 3.3 Technological aspects

The choice of appropriate technology options depends on a variety of factors. In developing countries satellite technologies have certain advantages.

Heritage Infrastructure

Technical Development

Regulatory Framework Service Demand

General Political and

Security Situation

Environment (Geography /

Climate)

Market Size / Population

Density

SatelliteWirelessFixed

TransportAccessTechnology mix

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3. Supply of Satellite Services in Africa and Asia 3.4 Regulatory aspects

Broadcast property and a huge variety of potential services makes (spectrum) regulation and the licensing of satellite services a complex issue

Regulatory issues to be addressed by providers and usersLicensing of end-users as well as network operators and service providers.Requirements for end-users and resellers to access different operators.Determination of licensing categories – Broadband satellite is a convergent technology.Telecommunications legislation and the actual state of the market, especially the existence of guaranteed monopolies or duopolies (e.g. for international connection).

Requirements: Internet access; On-line courses; Video feeding and conferences. The African telecom landscape is a complicated mosaic of many different legal and regulatory frameworks a unified market entry strategy proved to be impossible.Major problems that occured: Licenses to transmit voice; Interconnection; License fees; Time to acquire permit licenses.

Example:AVU

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4. Political Action

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4. Political Action4.1 Narrowing the „Digital Divide“ as an political objective

The “Digital Divide” discussion has come to a stage where scalable and sus-tainable concepts are on high demand. In this context VSAT gains importance.

Efforts to bridge the Digital Divide

Deficiency in large scale deployment of technological solutions.

Lack of economical and technological scalability, sustainability and relevance

International initiatives

G8 dotforceUN ICT Taskforce WSIS. International organizations(UNDP, IDRC, IICD etc.)Local and international NGOs.

National ICT PoliciesUniversal Access regulationRural development plansMarket liberalization

National action

Many LocalPilot

Projects

In serious attempts to overcome these problems, especially VSAT plays an increasing role (e.g. the connection of 400 post offices in Kenya).

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4. Political Action4.2 Narrowing the „Connectivity Divide“ – a necessary but not sufficient condition

Mobile telephony has improved connectivity indicators in Africa and Asia dramatically.

Due to its specific properties cellular mobile appears to be the most appropriate choice for communication in these countries.

Mobile telephony is still basically a voice application. GSM networks in most countries are not yet able to provide certain services, e.g. broadband internet.

Telephony and the Internet are still urban phenomena, although some trickling down can be observed to semi-urban areas.

Universal access obligations force many operators to serve remote locations. For example, the license for South African‘s Second National Operator requires the company to provide 15,000 Community Service Phones in rural areas and to cover 80% of the territory after ten years of operation. Bidders offer VSAT as a solution.

Providing connectivity to rural areas does not guarantee that information is helpful and meaningful to rural population. The „Digital Divide“ goes deeper.

Although connectivity indicators have caught up and will continue to do so there is still a need to provide content that is relevant in the rural context.

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4. Political Action 4.3 Narrowing the „Digital Divide“ in the public sphere – eGovernment, eLearning, eHealth

The public sector is not solely an enabler to digital development by setting framework conditions and regulations. ICT offer opportunities for the provision of goods and services in the public domain.

eGoverment: – Services become more transparent; improved communication and flow of information

within the administration; enhanced information gathering and procession.

eHealth:– Health information systems; wider information base for doctors and nurses.

– Example: Satellife‘s HealthNet, extensive network of health workers. Uses LEO-Satellite for a store and forward mail service as part of the network covering remote areas.

eLearning:– New options for distance education; wider knowledge base for teachers and learners.

– Example: African Virtual University – linking tertiary education on the African continent.

Satellite technologies’ properties are suited to provide these services.

Administration, health and education are important fields for ICT use. The required services properties can often be offered by satellite technologies.

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5. Conclusion

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5. Conclusion

Even in remote areas of developing countries there is demand forcommunication and information services. This demand can be satisfied by offering first of all connectivity but as well content fitted for the context of these markets.

There is a strong demand for ICT in developing

countries…

In African and Asian markets satellite-based communications and data services have a higher potential than in developed Western communication markets because there is a severe lack of substituting technologies. Especially VSAT is already high on demand and will grow further.

… that offers high potentials for satellite-

based services …

The potential can only be tapped exhaustively when regulation does not constrain satellite services. Satellite operators and service providers have to consider the peculiarities of developing communications markets and distribution channels when designing their services.

… when the right regulation is in place and

the market is properly addressed.

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Your Contact

Gebhard WeissDetecon International GmbH

Industry Practice International Carriers

Oberkasseler Str. 253227 Bonn (Germany)

Phone: +49 228 700 1600Fax: +49 228 700 1607

Mobile: +49 171 2006329 e-Mail: [email protected]

global perspectives of the digital divide...1,0 1,2 1,4 1,6 1,8 senegal togo ghana tanzania uganda...

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