THE UNITED NATIONS COMMISSION ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT 15 TH SESSION May 2012 Geneva. Contribution by
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1 THE UNITED NATIONS COMMISSION ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT 15 TH SESSION May 2012 Geneva Contribution by United States Agency for International Development, Ghana Investment Fund for Electronic Communication, COMPARTEL, and Universal Service Fund Company Extending Rural Access, Universal Service & Rural Build Out - V2.0 Mr. Darrell Owen Senior ICT Consultant, Global Broadband and Innovations Program United States Agency for International Development Mr. Kofi Attor CEO Ghana Investment Fund for Electronic Communication Mr. Guillermo Cruz Former CEO COMPARTEL Mr. Parvez Iftikhar Former CEO Universal Service Fund Company Mr. David Townsend Universal Service Consultant The views presented here are the contributor's and do not necessarily reflect the views and the position of the United Nations or the United Nations Conference on Trade and Development
2 Extending Rural Access, Universal Service & Rural Build Out V May 2012
3 Perhaps better stated. Plus = THE FINAL BILLION + + 1B Voice B Broadband + Affordability + Sustainability + Adding Value Beyond Access 2
4 Broadband Commission Targets for 2015 Target 1: Making broadband policy universal national BB plan or BB included in USAF Target 2: Making broadband affordable less than 5% average income Target 3: Connecting homes to broadband 40% households in developing countries Target 4: Getting people online 60% world wide; 50% developing; 15% LDCs 3
5 WSIS Targets for Connect villages 2. Connect universities, colleges, secondary schools and primary school 3. Connect scientific and research centers 4. Connect public libraries, cultural centers, museums, post offices and archives 5. Connect health centers and hospitals 6. Connect all local and central government and websites and addresses 7. Primary and secondary school curricula 8. Access to television and radio services 9. Development of content in all world languages on the Internet 10. Half the world s inhabitants have access to ICTs 4
6 The Final Billion
7 Ecosystem for Change Shared Vision, Plans and Collaboration Public Sector Competition Regulation Universal Service and Access Funds Private Sector New Technologies New Business Models for Carriers 6
8 Today s Session: ü Setting the Stage v Universal Service and Access Funds v Ghana Kofi Attor v Colombia Guillermo Cruz v Pakistan Parvez Iftikhar v Recap & V2.0 David Townsend v New Tech & Build Out Darrell Owen v Group Discussion All of Us 7
9 Universal Service and Access Fund 8
10 Kofi Attor 9
11 Ghana USF: GIFEC 1. Overview of USF Projects: 2009 to Date 2. Public Private People s Participation (P4) 3. Specific Project Accomplishments 4. What is Ongoing 5. Adding Value to Projects by Providing Content 6. Challenges to Ownership & Sustainability 7. The Way Forward for USF in Ghana 10
12 Guillermo Cruz 11
13 Colombia USF: Compartel 1. Started in 1999; Approach: PPP, Top-Down 2. Voice-to-Broadband: 25,000 School-Libraries and 2,700 Telecenters 3. Backbone Projects: Fiber to Island and 4 States; Failed Satellite Project 4. Lessons : Budget execution, Scale, Visibility, Private Participation 5. But: Some inefficiencies, Low Use, Inflexibility, and Sustainability issues 12
14 Colombia USF: Compartel 6. Now: Vive Digital Plan (VDP) : National Fiber Project 7. VDP Access Projects: Areas with/without Fiber Backbone Goal 99% Population 8. VDP Mobile 3G-4G Infrastructure Expansion Project 9. Challenge 1 Articulation: VDP Projects National/Regional Initiatives 10. Challenge 2 Sustainability: Efficiency, Demand, Empowering Communities 13
15 Parvez Iftikhar 14
16 Pakistan USF: 1. The First 4 ½ Years 15
17 The First 4 ½ Years Program Served Total Un-served Rural Telephone 3,500 Villages 10,000 Optic Fibers 58 Sub-district HQs + 11 Towns 115 (4,000 kms of OFCs) Broadband 284 Towns (~ 350k subs) 450 For Education 1,042 HSSs, Colleges & Libraries 2,000 For Communities 291 Broadband Centers
18 Pakistan USF: 1. The First 4 ½ Years 2. What s Been Accomplished 17
19 Commitments and Disbursements Operators ' 100 Total Investments underway in unserved areas US$ 370 M Ready for signing 70 USF Subsidy 200 Million US$ 18
20 Pakistan USF: 1. The First 4 ½ Years 2. What s Been Accomplished 3. What s On Going: New Projects 4. Challenges 19
21 Challenges for Pakistan USF Reluctant Cellcos - Areas have low revenues & high costs War-like situation in some USF Areas Reluctant smaller operators avoiding getting in the hassle Perception - since it involves hundreds of millions, there must be wrong-doing! Fear - Government will take the funds away! 20
22 Pakistan USF: 1. The First 4 ½ Years 2. What s Been Accomplished 3. What s On Going: New Projects 4. Challenges 5. Secrets to Success: The Model 21
23 The Model: How it Works Public Side Private Side Various Ministries Finance Ministry 1 Rep. each Cabinet Division Licensed Telcos IT & T Ministry USF Policy Committee USF Account Funds come from Operators.and go back to them! Government acts as a trustee! USF Co. Following an Open Bidding Process A Company under Companies Act
24 A Balanced Board: With ALL Stakeholders PUBLIC Minister of IT Federal Secretary IT Member Telecom MoIT Chairman PTA USF Company Board of Directors CEO USF PRIVATE Nominee Cellular SPs Nom. Fixed-Line SPs Nominee ISPs Nom. Consumer Groups Minister of IT Federal Secretary IT Member Telecom MoIT Chairman PTA Nominee of Cellular Telcos Nominee of Fixed Line Telcos Nom. of Internet Service Providers Nominee of Consumer Interests Political Leadership Bureaucrat Technocrat Telecom Regulator Nominee: Cellular Mobile Operators Nominee: Fixed Line Operators Nominee: Internet Service Providers Nominee: Consumer Interest Groups
25 Pakistan USF 1. The First 4 ½ Years 2. What s Been Accomplished 3. What s On Going: New Projects 4. Challenges 5. Secrets to Success: The Model 6. Secrets to Success: The Implementation 24
26 The Implementation: Key Principles & Policies Open, Transparent Auctions Technology Neutral Infrastructure Sharing - No local Monopolies Performance Guarantees Lien on Equipment Cap on total accumulated Subsidies Retail Tariffs same as in rest of the country Six-monthly Audits for USFCo. 25
27 DR Eastern Caribbean Colombia Latin America Nigeria Kenya Tanzania Ghana Moldova Armenia Morocco Egypt Saudi Arabia Mozambique Madagascar Vietnam Laos Thailand Philippines Indonesia David Townsend 26
28 USF: Version Market Gap vs. True Access Gap 2. Universal Broadband? 3. Sustainability: The New Imperative 4. Fostering local full-service networks 5. Linking schools, e-government, e-health 6. Rethinking the role of Telecenters 7. Demand-side stimulation: capacity and awareness building 8. Subsidies for ICT devices 9. Applications and Content support via USF 10. USF as Venture Capital / Investment Fund 27
29 Darrell Owen 28
30 New Tech & Build Out 1. Backhaul (supporting convergence): v Shared Fiber Backbone v Unlicensed Wireless Terrestrial Backhaul v Ku and Ka Band Satellites 2. Small Cells Low Cost & Low Power Demand 3. Off-Grid Clean Energy Solutions 4. Base Stations as Anchor Tenants for Clean Community Electricity 5. Smart Devices and Cloud Services 6. Innovative Business Models: v MicroTelco Franchise Model v Shared Distribution Networks v Build-Own-Operate, Build-Own-Transfer 29
31 Access To Social & Econ Services Rural Telecom Access Sustainable Business Models Off-Grid Clean Energy
32 Today s Session: ü Setting the Stage ü Universal Service Programs ü Ghana Kofi Attor ü Colombia Guillermo Cruz ü Pakistan Parvez Iftikhar ü Recap & V2.0 David Townsend ü New Tech & Build Out Darrell Owen v Group Discussion All of Us 31
33 Can We Bend the Trend?
34 What Else Is Needed? Shared Vision, Plans and Collaboration Public Sector Competition Regulation Universal Service and Access Funds Private Sector New Technologies New Business Models for Carriers 33
35 Conversation!! 34
36 THANKS!! v UNCTAD/CSTD v Kofi Attor v Guillermo Cruz v Parvez Ishtikar v David Townsend v Audience 35
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