Innovation & Networking IDRC Partners Meeting

Transcription

1 Innovation & Networking IDRC Partners Meeting Alison Gillwald Executive Director Research ICT Africa Adjunct Professor, UCT GSB Management of Infrastructure Reform & Regulation Rio de Janeiro, December 2012

2 Outline The development problem addressed by your project Research Question(s) Methodology (very briefly) Main findings (if any) The relationship between your work and main outcome areas: openness, rights and inclusion

3 Network a response to the research vacuum on the continent in relation to ICT policy and regulation and dearth of capacity to respond to redress it.

4 POLICY INFLUENCE CAPACITY BUILDING Training Dissemination RESEARCH Networking Publication RESEARCH INFLUENCE Approach to policy influence TECHNICAL ASSISTANCE The key challenge on the continent is to create the necessary policy and regulatory capacity to address these problems and to develop the evidence on which to base informed decisions.

5 Research Capacity Building CPRafrica - Young Scholars Programme - building ICT policy intellectuals CPRafrica - forum for profile of African scholarship in field of ICT policy and regulation and publication PhD support and mentorship Collegial network development

6 Research statement ICT have potential to contribute to sustainable growth and democracy yet Africa lags other regions of the world Exponential growth in mobile communications means gap in voice services decreased but growing gap in broadband Cost of communication services also mean use suboptimal Providing price transparency and promote price competition in relation to retail, wholesale and spectrum pricing; Providing regulatory and policy transparency to promote effectiveness and innovation Address fundamental policy failures - institutional arrangement/market structure

7 Research questions ICT as tool for improved social, economic and political equality? Dependent on ubiquity and affordability of services what are the sufficient conditions for this? What sector reform/institutional development/ market structure required to create effectively regulated competitive markets? What do users want and how do we get more equitable access to full range of services inequitable? Under what conditions do we see innovations? How can ICTs be used to deliver other services more efficiently and innovatively to the poor? Moile money, micro-insurance? Gov serivces

8 Research questions How do we get data for evidence based ICT policy and regulation? With classical operator/regulator/researcher asymmetries of information how do we get up to date supply side data - particularly to assess affordability? How do we determine real/disaggregated access to determine equality and exact point of policy intervention required? How do we understand demand for ICT services, spend, usage? How do we assess policy and regulatory outcomes and on what basis propose solutions?

9 Evidence-based policy Telecom Regulatory Enviro (TRE) (stakeholder perception survey) NRA website analysis Indicators Regulatory & Policy Impact Assessment Data-mining and economic modelling - gender, mobile-banking, informal sector usage ICT Sector Performance Review Supply Side Data HH Survey SME Survey Demand Side Data

10 International bandwidth no longer a problem... electricity and backhaul national networks are... HH connected to main electricity grid HH with landline South Africa 89% South Africa 18,0% Ghana Cameroon Botswana Kenya Nigeria Namibia Tanzania Ethiopia Rwanda Uganda 73% 65% 60% 60% 58% 42% 19% 18% 16% 13% Botswana Namibia Ethiopia Cameroon Ghana Uganda Kenya Tanzania Nigeria Rwanda 15,0% 11,5% 4,0% 2,2% 1,8% 1,5% 0,6% 0,4% 0,3% 0,2% Country ISP Technology Product name Downstream bandwidth Usage cap Monthly cost (US$) India MTNL ADSL TriB 49 2 Mbps 200 MB 0,88 Sri Lanka SLT ADSL Entrée 2 Mbps 2.5 GB 3,78 Mexico Cablevision Cable Intense 3.0 Mbps 3 Mbps 10,56 Notes Speed reduces to 512Kbps after exceeding the usage cap + Additional charge INR1.00 per MB after exceeding usage cap Installation charge for the internet only package is taken as the connection charge South Africa MWEB ADSL Capped ADSL 384 Kbps 1 GB 17,55 Modem cost from ZAR 369 onwards, excludes voice line rentals. Kenya TelkomKenya ADSL Surf and Talk 256 Kbps 34,99 The cost of Livebox+Panasonic Handset is taken as the modem cost Cameroon Ringo Fibre Fibre Ringo 1 Mbps 47,29 XAF95000 is the charge for equipment and installation cost. Uganda Uganda Telecom ADSL 64 Kbps 90

11 Research components Component 1 up to date, accurate supply side data ( reliable repository of data and analysis) Pricing transparency - wholesale & retail Component 2 demand side survey: ICT SME household and individual access and usage and comparative Component 3 Telecommunications Regulatory Environment Survey Component 4 Case studies in innovation & inclusion Service innovation - mobile transactions / regulatory challenges Social Networking & Mobilisation Strengthening National Statistical Frameworks

12 Research component 1 Supply side - Pricing transparency

13 Conceptual framework for Sector Performance Review

14 Price Transparency Portal Monitoring price developments and facilitating price transparency Prices are the most effective measures of the competitiveness of markets and the efficient allocation of resources through them The challenge for international agencies specialising in statistical analysis is to demonstrate that the more competitive the market, the wider the range of products and lower the prices. Imperfect nature of infrastructure markets requires regulatory intervention To overcome the complexity of product pricing, OECD has developed pricing baskets methodology. OECD basket Definition 2010 Basket Total Volume per month SMS 30 calls basket calls basket calls basket calls basket calls prepaid basket messages basket 8 400

15 Mobile prepaid prices database

16 Mobile prepaid prices database

17 Mobile prepaid prices database

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19 Broadband Pricing Comparison OECD/SA Broadband subscription price ranges, Sept (SA July 2011), all platforms, logarithmic scale, including line charge (or 3G modem), USD PPP

20 Price per MB in US cents for MTN - June 2012 MTN Ghana MTN Cameroon N Rwanda (RwandaCell) 2,1 4,0 5,1 MTN Uganda MTN Benin 9,3 9,9 MTN South Africa MTN Swaziland 13,6 15,3 MTN Zambia 20,5 MTN Nigeria 33,5

21 Price per MB in US cents for SA and Namibia 8ta Cell C MTN South Africa 13,6 13,5 13,6 Virgin Mobile 8,2 Vodacom South Africa 10,7 MTC Namibia 7,8 Telecom Namibia 6,8 MTC has already 4G - LTE is 100 Mbps compared to max of 21 Mbps in SA

22 Impact of Termination rate reduction in Kenya Leverage outcomes in other jurisdictions in which we have had success and share experiences The reaction to the termination rate reduction was immediate, leaving no doubt about the causal relationship Retail prices dropped by 60%, immediately the day after reduction was announced - Opposite effect to the waterbed effect! 9.5% more subscribers in last quarter or 2010 quarter Safaricom is a good example for what happens if a dominant operator does not respond to competitive pressure or tries to increase price after cutting them In both instance Safaricom lost market share and traffic to other operators

23 Demonstrate links between wholesale and retail data gathering and analysis. Termination Rates April 2009 MTR ZAR India 0,04 Cyprus 0,24 Austria 0,54 Sweden 0,55 Finland 0,59 Kenya 0,62 Tanzania 0,63 Botswana 0,71 Slovenia 0,77 France 0,83 Uganda 0,86 UK 0,93 Namibia South Africa Peak South Africa Off peak 0,75 1,06 1,25

24 Namibia now among the 10 cheapest countries in Africa: moved from rank 22 to 9 Cheapest Low User USD Mar-11 Jun-11 1 Egypt 1,54 D.R. Congo 1,36 2 Sudan 1,89 Egypt 1,54 3 Kenya 1,90 Sudan 1,89 4 Tanzania 2,21 Kenya 1,9 5 Algeria 2,25 Algeria 2,09 6 Uganda 2,30 Tanzania 2,21 7 Mauritius 2,39 Mauritius 2,39 8 Ghana 2,87 Ethiopia 2,61 9 Sierra Leone 3,09 Namibia 2,81 10 Ethiopia 3,16 Ghana 2,87 22 Namibia 7,67 Source: Research ICT Africa

25 Impact of Termination rate reduction in Namibia Challenged conventional wisdom on negative effects of termination rate reductions in developing countries and prompts outcry about SA pricing and Parliamentary Public Hearing on Mobile Termination Rates No waterbed effect Dominant mobile operator More subscribers EBITDA margin 50+% 3rd cheapest dominant operator in Africa

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27 Other BDFM titles Quick Links Site Search Log in Register Subscribe to E-Edition Johannesburg Hi 20 C Low 14 C Pretoria Hi 23 C Low 16 C Bloemfontein Hi 27 C Low 14 C View more cities View 7 day forecast Home Opinion & Analysis Companies Markets Economy & Business Mining Management Sport Lifestyle Tech National News World News Business Education Blogs Mobile Advertising Weather News Headlines Euro crisis of survival as EU mulls Irish lifeline Law firms in Tools ALLISON GILLWALD: Cellphone rates Lower termination fees may spark telecoms turnaround Published: 2010/11/17 07:36:18 AM Ghana, Kenya, Tanzania and Uganda have already seen increased usage with more affordable prices MUCH has been made of Vodacom s R800m loss of revenue in the six months to September, owing to the reduction in termination rates from R1,25 to 89c in March, reported in its interim results last week. As if to confirm the dire warnings by MTN and Vodacom following the decision by the Independent Communications Authority of SA (Icasa) late last month to cut further the rates of dominant operators, this loss of revenue has been used to flag the threat of a future loss of earnings that would have been received from terminating the calls of their competitors on their networks. Currencies Commodities JSE Today RAND/US$ % ZAR/GBP % RAND/EURO % ZAR/AUD CALC % EUR/USD CALC % GBP/USD % JSE data provided by INET. Markets Data delayed by 15 minutes. Find Share From a policy and regulatory perspective, these results demonstrate a far more positive outcome than was widely reported in the media. Despite the loss of earnings from interconnection an expected outcome of the introduction of regulated cost-based pricing following years of extractive pricing overall revenue and operating profits have continued to grow. It is true that this was at a slower rate, with Vodacom s earnings before interest, tax, depreciation and amortisation (ebitda) increasing by only 7% in the first six months of this year, compared with 10,5% for the whole of last year. But ebitda margins remain constant at a healthy 33,2% over the past three years, and Vodacom s share price is constantly on the rise. Historically, prices have been exceptional as a result of unregulated pricing in a duopoly market. In the five years before the impending entry of the third cellphone operator, Vodacom and MTN increased their termination rates by 500%, where they have remained since 2002, despite world prices dropping to a fraction of this. Cost-based termination rates limit these pricing distortions in the market and reduce barriers to fair competition. The transfer between operators caused by above-cost termination rates is generally to the disadvantage of fixed-line operators, small cellphone operators and new entrants to the markets, while it is to the advantage of the dominant cellphone operators. While the focus has been on the loss of revenue, reduced termination rates of course also decrease the costs of termination for operators. This produces efficiencies in the network that can reduce end-user prices and offset losses in interconnection revenue through increased demand and usage, and the more productive use of the network. Management(Tip!When!the!job!market!picks!up,!the!first!to!leave!are often! a! company s! most! valuable! employees. Unfortunately,! you! may! be! inadvertently!encouraging these! future! leaders! to! say! their! goodbyes! by!treating them!as!cogs!in!a!wheel!rather!than!the!individuals!that they!are.!!!!!,(harvard(business(review(and(hbr.org

28 R E S E A R C H I C T A F R I C A P O L I C Y B R I E F N O. 1 Africa Prepaid Mobile Price Index 2012: South Africa Among 46 African countries studied, South Africa ranks poorly for prepaid mobile telephony affordability. Ranked 30th out of 46 African states, South Africa is now far behind countries where the regulator, has enabled competition by enforcing cost-based mobile termination rates. The resulting competition has in many cases driven down prices for consumers. Not long ago, South Africa and Namibia shared the same mobile termination rates and had similar end-user prices. Today, Namibia enjoys amongst the cheapest mobile prepaid prices in Africa, as a result of the slashing of its termination rates to close-to-cost, which pressured the incumbents towards cost-based pricing, thereby increasing demand and remaining highly profitable. RIA Policy Brief No 1 March 2012 SA ranks 30th Mobile prices are cheaper in over 30 African countries than they are in South Africa with prices in Kenya, Mauritius, Egypt and Namibia only a fraction of the price of even the lowest priced services in South Africa. Neighbouring countries several times cheaper South African prepaid mobile prices are three times more expensive than in Namibia. Lack of pass-through of price reductions to endusers In South Africa, even the modest reductions imposed on termination rates have generally not been passed on to end-users. Cell C and 8ta Two relatively late market entrants, Cell C and the most recent entrant 8ta, have attempted to introduce cheaper mobile prepaid products, but these products have not forced down the general price level. SA operators do not compete for price The dominant mobile operators, Vodacom and MTN, have been able to withstand the pricing pressure from price cuts by later entrants, and all operator s prices have settled around the levels set by the dominant operators.

29 January 2012 OECD Low User Basket costs in USD (FX= average 2010) Country Name Cheapest product from Dominant Operator Cheapest product in country Rank US$ Rank US$ % cheaper than dominant Mauritius 1 2,39 5 2,39 Dominant is cheapest Ethiopia 2 2,61 7 2,61 na Namibia 3 2,74 8 2,74 Dominant is cheapest Kenya 4 2,85 1 1,90 33,4% Egypt 5 2,91 9 2,91 Dominant is cheapest Sudan 6 3,53 6 2,46 30,5% Ghana 7 3, ,28 15,1% Libya 8 3, ,90 Dominant is cheapest Rwanda 9 4,28 3 2,16 49,4% Guinea 10 4,62 2 1,93 58,1% Sierra Leone 11 5, ,88 23,1% Uganda 12 5, ,94 46,6% Congo Brazaville 13 5, ,63 Dominant is cheapest Tanzania 14 5, ,75 35,7% Algeria 15 6,21 4 2,28 63,3% Tunisia 16 7, ,46 10,9% Senegal 17 8, ,11 Dominant is cheapest Botswana 18 8, ,66 6,0% Sao Tome &Principe 19 8, ,21 Dominant is cheapest Nigeria 20 8, ,22 37,8% Madagascar 21 8, ,45 Dominant is cheapest Mali 22 8, ,78 Dominant is cheapest Burkina Faso 23 8, ,53 4,0% Benin 24 9, ,92 13,0% Mozambique 25 10, ,00 Dominant is cheapest Chad 26 10, ,14 Dominant is cheapest D.R. Congo 27 10, ,62 26,5% Côte d Ivoire 28 10, ,41 Dominant is cheapest Cameroon 29 10, ,28 1,5% South Africa 30 11, ,83 11,2% Togo 31 11, ,18 Dominant is cheapest

30 8ta 8ta struggles in in competitive market Home» Search results for Research ICT Africa pricing Busting myths about SA s high mobile prices lifts lid on insurance pla HOME IN-DEPTH NEWS OPINION PEOPLE PODCASTS REVIEWS START-UPS WE About Advertise Contact The reaction of various interest groups to a year-long study by Research ICT Africa into prepaid mobile prices across the continent and SA s relatively poor showing in it are perhaps not surprising. They nevertheless prompt clarification and hopefully further debate before the issue of the high price of communications in SA is again swept Coverage in Business Day, Mail & Guardian (weekly), Tech Central, IOL, and News April Comments Read More How ANC is squandering SA s digital future The release last week of Research ICT Africa s report on mobile phone pricing in Africa has provoked a little controversy. The facts are quite damning. SA has some of the highest mobile costs on the continent. This is odd given the country s comparative wealth and infrastructural advantages. By rights, SA ought to have the cheapest phone 19 April Comments Read More Icasa tackles critics over telecoms prices The Independent Communications Authority of SA (Icasa) has hit back at a recent report by Research ICT Africa, which criticised the authority over higher retail and wholesale mobile call rates, saying the report fails to consider various costs that affect SA operators. SA s prices are comparatively high;; the authority has no 16 April Comments Read More SA mobile prices among the highest in Africa A new research study has found that SA has some of the least affordable prepaid mobile tariffs on the continent and is falling behind many of its neighbours because of high wholesale call rates between operators. The findings are contained in a Research ICT Africa policy brief, with research conducted over the past year

31 Budget vote May 2012 Minister of Communications ask for transparency in mobile pricing in Budget Vote 2012 Head of Parliamentary Portfolio Committee on Communication (ANC) cites Policy Brief in opening response and announces Parliament to hold public hearing on pricing in June Official Opposition Party response draws verbatim on brief request on challenges within sector. Opposition Party (COPE) extensively quotes RIA SA Sector Performance Review. Results in Parliamentary Portfolio Committee Public Hearing on Cost of Communication where financial analysis reveals positive outcome of MTR and call for further reductions.

32 R E S E A R C H I C T A F R I C A P O L I C Y B R I E F S A N O. 2 South Africa s Mobile Termination Rate Debate: What the Evidence Tells Us South Africa s (SA s) mobile termination rate (MTR) reductions of March 2011 and March 2012 have not, contrary to the claims made by operators, hurt the industry or led to higher retail prices, lower investments or retrenchments. While end-user prepaid mobile telephony prices have come down to some extent, the prices are still high, and SA s MTRs are still far above the cost of an efficient operator. The regulator s (ICASA s) glide path is too slow and will not take the MTRs down to the cost of an efficient operator. As a consequence, South Africa continues to be among the most expensive countries in Africa for prepaid mobile usage. Fair competition is needed in order to ensure a decrease in mobile tariffs, and above-cost MTRs are one of the main obstacles to fair competition. RIA Policy Brief SA No ! November 2012 Retail price cuts Retail prepaid mobile telephony prices have started to drop, but only since the second MTR reduction, which moved the MTR closer to the cost of an efficient operator and allowed smaller players to reduce their off-net prices. SA still expensive Prepaid mobile prices remain high. South Africa s mobile affordability is ranked 33rd out of 44 African countries surveyed for cheapest price available from dominant operators. SA s dominant players are still able to retain customers with low on-net and high off-net prices. Cell C lowers off-net prices Cell C dropped its offnet rates to R0.99 per minute to match its onnet price, a move only possible after the second MTR reduction (and which was briefly matched by Vodacom). 8ta doubles up airtime 8ta increased its nominal tariffs in September 2012 but offered double-value on airtime recharges, improving SA s affordability ranking to 19th out of 44 in terms of cheapest product in the country. Telkom biggest winner Telkom s annual net termination payment (termination revenue minus termination expenses) was R1.9billion less in the financial year than in , contradicting its complaints about the impact of MTR cuts on its bottom line. Vodacom a net beneficiary Vodacom netted R66million more from call termination in than in the previous year, despite claiming, when the MTR cuts were announced, that it would suffer a R500million net loss.

33 100 8ta MTN South Africa Virgin Mobile Cell C Vodacom South Africa Jan 11 Mar 11 May 11 Jul 11 Sept 11 Nov 11 Jan 12 Mar 12 May 12

34 Telkom Fixed-line operating revenues and expenses in ZAR million (Telkom 2011, Telkom 2012, FY ending March) Change Total Revenues Mobile Domestic Interconnection Mobile International Revenues Fixed International Total Expenditure Mobile network Interconnection operators Expenses Fixed International network operators Interconnection Loss Total Interconnection Loss Mobile only Interconnect revenue up, expenses down, net improved by ZAR432 million Telkom past on MTR cuts 100% to customers (as did Neotel)

35 MTN South Africa Revenue up 7.7% EBITDA margin up by 1.2% CAPEX up 5%

36 Vodacom Revenue up 7.8%, profits up 27.9%

37 Vodacom 10.2% increase in traffic from Telkom due to pass through of MTR cuts Interconnect revenue down 10.3%, expenses down 13.4%, net interconnect profit up 6.2% in South Africa, additional ZAR 66 million

38 Websites defaced, not hacked: Sita Free Wi- Fi on Mango flights HOME About IN- DEPTH Advertise NEWS Newsletter OPINION PEOPLE PODCASTS REVIEWS START- UPS WEEKEND Contact ADVERTISE Tuesday, December 11, 2012 Incumbents not hurt by rate cuts Gillwald Research ICT Africa executive director argues that Vodacom and MTN have been able to withstand short- term pricing pressures because reductions in termination rates have been too small to allow smaller rivals to undercut them sufficiently. By Duncan McLeod. 1 Like 1 2 MAIL & GUARDIAN PRINT FRIENDLY PAGE SEE ORIGINAL ARTICLE Report damns mobile operators' price hike claims Mobile operators' claims that reducing inter-connection fees between networks would hurt their businesses, and hike prices for consumers are false. 29 Nov :59 - Lynley Donnelly Samsung's latest phone in the company's Galaxy line. (Samsung, AP) Research published in a policy brief by Research ICT Africa, and presented by executive director Alison Gillwald, was heard during public hearings on the cost of communications in South Africa, currently held by Parliament's portfolio committee on communications. Connect with TechCentral Follow TechCentral o n Twitter Connect with TechCentral o n Facebook Connect with TechCentral o n Google+ Latest Tweets not- hurt- by- rate- cuts- gillwald/36685/ 1/3

39 Research component 2 Demand side - Household /Individual / SME survey

40 Household & Individual ICT survey Lack of data - decision relevant data for ICT policy making and regulation PARTNERSHIP ON MEASURING ICT FOR DEVELOPMENT: delivers all indicators required by the Partnership for household, individuals, and businesses COST EFFECTIVE: Using Enumerator Areas (EA) of national census sample frames and samples households, small business simultaneously minimizes costs. SCOPE :Apart from delivering ICT indicators required by international bodies the survey delivers data and analysis for several regulatory functions such as pricing regulation, number portability and universal access. LINKAGES:explains interactions between households, individuals and informal and small businesses on ICT access and usage.

41 Household & individual ICT survey methodology 2011 COUNTRIES Botswana Cameroon Ethiopia Ghana Mozambique Namibia Nigeria South Africa Rwanda Tanzania Uganda

42 Census and RIA national ICT survey Census Data RIA Survey Data Households with Fixed Line 18,5% 14,5% 18,2% 18,0% Households with Computer 15,6% 21,4% 14,8% 24,5% Household with Radio 76,5% 67,5% 77,7% 62,3% Households with Television 65,5% 74,5% 71,1% 78,2% Households with Internet 35,2% 4.8% (Household) 15.0% (Individual) 19.7% (Household) 33.7% (Individual) Cellphone Ownership 72,7% 88,9% 62,1% 84,2%

43 Using mobile to browse the Internet South Africa Kenya Namibia Botswana Nigeria Rwanda Ghana Cameroon 8% Uganda 8% Tanzania 5% Ethiopia 5% 15% 13% 16% 25% 24% 23% 28% Using mobile for Facebook etc. South Africa Kenya Botswana 18% Namibia 17% Nigeria 16% Rwanda 14% Ghana 11% Cameroon 8% Uganda 7% Tanzania 5% Ethiopia 2% 25% 25% Internet use among mobile phone owners: Social networking more popular than in some countries Using mobile for ing South Africa Kenya Botswana Namibia Nigeria Rwanda Ghana 10% Cameroon 4% Uganda 6% Tanzania 5% Ethiopia 10% 12% 13% 15% 17% 17% 20%

44 Where the Internet was used in past 12 months Mobile phone Work Place of education Internet cafe 74% 80% 85% 51% 35% 58% 32% 51% 33% 21% 36% 50% 31% 52% 63% 24% 45% 45% 20% 29% 72% 39% 31% 42% 21% 17% 51% 55% 23% 36% 48% 20% 10% 30% 61% 64% 71% 71% 75% 75% 78% 81% 81% 87% Cameroon Ghana Botswana South Africa Rwanda Tanzania Nigeria Kenya Ethiopia Uganda Namibia ga

45 Where was the Internet used first? Computer Mobile phone Cameroon Rwanda Botswana Ghana Kenya South Africa Namibia Tanzania Nigeria Ethiopia 82,1% 70,8% 70,6% 70,5% 68,9% 65,1% 50,1% 45,8% 45,2% 33,3% 17,9% 29,2% 29,4% 29,5% 31,1% 34,9% 49,9% 54,2% 54,8% 66,7% Uganda 28,2% 71,8% ga

46 Mobile gone Internet conclusion The mobile is closing the voice and the data gap in Africa First wave of Internet access through PCs and fixed-line / modem dial-up. Mostly through work, school or public access (Internet cafes) Second wave is through mobile phones: Easier to use Cheaper device compared to computers Prepaid (modem dial-up was postpaid) Internet enabled mobile phones, low bandwidth applications, and social networking are the key drivers Mobile Internet reduces the cost of communication: Facebook Zero, whatsapp,

47 Social media is replacing traditional ways of communicating, including , voice and SMS Cost is a major obstacle Sensitivity to price changes Mobile phones are replacing computers as the preferred means to access the Internet Distrust of m-apps Table 13: Key findings from household surveys and focus groups 36% of the BoP use social media Mxit is the most used social media platform in South Africa by the BoP Mobile phone's purpose is to maintain contact between friends and family High prices for Internet services represent still a major obstacle for Internet usage and access. For 48% of the population at the BoP, Internet is too expensive. Both people at the RoP and at the BoP are sensitive to a change in the cost of the mobile phone services While earlier adopters of the Internet still rely on the as a communications means of the Internet, late adopters of the Internet have been substituting the with social media platforms as their main communications tool of the Internet. The mobile phone is becoming a multi-media access channel and voice and SMS services are increasingly being replaced by a wide range of different multimedia services. Participants from rural focus groups were suspicious to use mobile applications as they thought that applications may damage their phones Internet illiteracy a key obstacle As many as 86% of individuals at the BoP who do not use the Internet do not know how to use it Among non-users, few individuals are aware of the function of the internet

48 Research component 3 Telecommunications Regulatory Environment Survey

49 Comparative TRE 2011/2012 Rwanda Namibia Tanzania Kenya Ghana Nigeria Uganda Botswana Cameroon Mozambique South Africa Ethiopia Highly ineffective Highly effective

50 RIA research agenda 2013 aligns with openness, rights and inclusion

51 Component 4 Case studies and thematic datamining and modelling - SME,Mobile Money, Gender, Open ICT data, Social networking and mobilisation

52 Conceptual framework

53 Inclusion & Rights Undertake demand side ICT access and user survey in order to understand communication needs and usage of citizens and consumers and producers to identify inequalities and points of policy intervention for social development and inclusive

54 Openness & Rights Extension of pricing transparency index from voice calls to data/broadband with Quality of Service assessment Open government - open data, support development of indicators and analysis in public domain, BOP & M-gov/apps Return to political economy issues & method - governance/institutional analysis