Increasingly Information and Communication Technologies (ICTs) are becoming recognized as critical components of international development programs.  Yet at times the USAID Missions lack staff resources that can sort through the current in-country situation and local opportunities, and assess how ICTs can be embedded for maximum benefit within their development portfolios.

One of the common ICT-related services provided by EGAT’s ICT Team has been support to the Missions through a one or two week ICT Assessment.  These are typically undertake by a small team of two ICT professionals either from the ICT Team itself and/or made available through existing PASA or contractor resources.  Ideally this small team is supported by Mission Staff to ensure efficient and effective use of their time on-the-ground.

These ICT Assessments vary in scope depending on the requirements of the Mission.  The focus of these Assessments is to assist the Mission program staff to first gain a better understanding of the current in-country status, including; what other donors are doing in this arena, what the government is doing or planning to do, what the private sector is doing and possibly inhibitors they are experiencing, how the education is meeting the ICT challenges, etc.  Then upon gaining these insights, the Assessment Team then works with Mission Program personnel to determine if there are rich opportunities for possibly expanding or imbedding ICT-related elements within the program and projects.  Typically these ICT Assessments are carried out at two levels:

Countrywide ICT Assessments—a number of these assessments have been undertaken at a broad, countrywide level that includes all things ICT in nature. These Assessments look at both the public and private sectors–including the government’s ICT-related plans, policies as well as their use of ICT (e-government).  It includes a look across the private sector’s use of ICTs, but also includes a special focus on the local IT private sector.  The Assessment also looks at education relative to the use of ICT as well as ICT within its curriculum.  Another focus within this countrywide snapshot is gaining insights into what other donors are supporting in the ICT arena.

The approach taken for these broad ICT Assessments is to gain a fresh insight into “what is” and put forward to the Mission, ideas as to “what may be of value for consideration” relative to matching the assessment findings with the Mission’s development portfolio.  In virtually all of these past efforts, a number of potential opportunities surface, with the Missions often pursuing one or more ICT-related engagements as new initiatives, or as new components embedded within existing projects.

Targeted Sector ICT Assessments—another form of the ICT Assessment is that of a more narrow-targeted focus to a specific theme, topic, or sector.  Examples here include scopes such as: exploring the potential for telecom market liberalization; setting up or strengthening a Universal Service Fund; establishing an ICT-user training program; examining the potential for embedding ICTs into the country’s education program, or into an existing education project; exploring the potential for launching an e-Government initiative; launching a rural connectivity initiative such as the earlier Last Mile Initiatives; exploring m-Banking, etc.

The approach taken for these more targeted ICT Assessments is to assist the Mission in gaining insights into specific opportunities that are within their current or planned development portfolio.  At times these assessments result in the development of SOWs/PWS that are subsequently worked into future RFPs.  In other situations this preliminary work is aimed at establishing ICT-related public-private partnerships (PPPs) for embedding into future Mission projects.

Both forms of ICT Assessments are offered through the GBI Program in support of Missions that have a sense of ICTs potential, but may not have the in-house resources or expertise required for this more detailed examination.  Depending on the requirement, these ICT Assessments may be undertaken through a cost-sharing arrangement between the GBI Program and the Mission requesting the service.

Long range wi-fi box mounted to pole

Photo source: PCFastlane

Over the past several years a tremendous amount of progress has been made in narrowing the urban-rural “Digital Divide.”  This has primarily been accomplished through market liberalization and subsequent build out of mobile networks–some of which reach into rural localities.

While this urban-rural gap is being narrowed, this is not universal.  Further, it is primarily a voice phenomenon.  With regards to Internet and specifically broadband, this divide remains, and in relative terms it continues to grow even wider in most rural locations.

A May 2008 report from the International Telecommunications Union (ITU) report entitled, “Measuring Information and Communication Technology Available in Villages and Rural Areas,” defines this challenge in the following manner:

  1. At the time of the report, the total population of developing countries stood at 5.1 billion;
  2. Of this total, approximately 56 percent, or 2.85 billion lived in rural areas;
  3. This rural population lived in 2.96 million discrete rural localities, with an average population of 1,826.

More recent data estimates while there are approximately 5.0 billion mobile subscribers world wide–out of a world population of 6.7-6.8 billion, somewhere between a population of 1.0 and 1.5 billion live in rural localities where they are without any mobile coverage.  A likely near-equal number are without “affordable” coverage.

The Global Broadband and Innovations (GBI) Program places a priority on addressing this urban-rural gap, with a focus on two key areas;

  1. Enhancing Universal Service Funds (USFs), and
  2. Promoting deployment of low cost connectivity solutions.

Universal Service Funds–A growing number of countries have established USFs, however, often these are not well designed to reach optimal benefit, nor are they managed such as to provide maximum value.  The GBI has been designed to provide targeted technical assistance (TA) to help countries with better design and operations of their USFs.  Current efforts are underway in partnership with Intel in carrying out a series of regional USF Workshops to move this agenda forward.  Another project is underway in Africa through support of the Africa Bureau, to provide TA to a number of countries where TA will make a near-term impact.

The focus of USFs is no longer simply placing a phone or two into a rural community, but rather seeking to leverage both broadband and voice connectivity for expanding socioeconomic opportunities into these rural communities.

Nor is the focus such as to create an approach for subsidizing on-going operations of carriers operating in rural localities.  There is also a focus on leveraging USFs to fund needed CapEx, where–where by working with the carriers and high tech firms producing low-cost solutions, financially sustainable approach can be deployed for connecting the lower-income, lower-density rural communities.

Low Cost Broadband and Voice Solutions–This parallel effort is also being undertaken by the GBI Program.  Here the GBI is engaged in research and dialog to identify low-cost rural connectivity solutions.  This focus is on providing wireless community-wide convergent networks that provide both broadband and voice services.

Preliminary research has uncovered a small but growing number of innovative solutions now being commercialized.  A potential new set of technologies, Femtocells, hold significant promise in lowering the capital and operating costs for reaching into lower-income, lower-density rural communities.  Several of these are solar powered solutions such they they can provide affordable coverage in areas where there is not access to a national power grid.

The GBI program has informally partnered with Femto Forum—a global Femtocell industry group and the Global VSAT Forum, a global satellite industry group, to further explore the technical and financial viability of these technologies.  Discussions are underway to build off of their respective strengths towards delivering scalable, replicable, and sustainable solutions that reach even further into remote rural locations.  And with this expanded connectivity, delivering access to a wide range of socioeconomic services.

Other lower-cost solution sets are being explored with regard to meeting this low-cost requirement.  This exploration has included proof-of-concept trial configurations here in the U.S., as well as working with satellite and femtocell firms on broader scale international deployments.

The combination of USFs and the emerging lower-cost solutions more suitable for rural settings, hold the promise of ultimately eliminating the urban-rural “digital divide.”  The GBI is working towards accelerating this where  possible.

What role should governments play in leading their citizens down the path to become actively engaged in the knowledge society? It varies greatly on the availability, motivations, and agenda behind the corresponding country’s use of ICTs.

Last week, the World Bank held the highly anticipated four ICT Days, which explored the multifaceted functions of ICTs and how governments can use them to, “Innovate, Connect and Transform” civil society in developing nations.

During the “Connectivity Infrastructure Day”, two speakers from different regions discussed their country’s distinctive agendas and how their government’s involvement of ICTs is enveloped within their economic development reforms.

While Korea Telecom’s (KT) Vice President, Dr. Hansuk Kim, discussed the prospects of nation wide interconnectivity in Rwanda; India’s Ministry of Communication and IT Secretary, Shankar Aggarwal, unveiled his country’s e-government initiatives.

In 2008, KT made a US$40 million deal to collaborate with Rwanda’s government to construct a national backbone project expected to connect the country on a fiber-optic network. The contract obliges KT to provide the government with technology, equipment, relevant application materials and training and to manage the cable installation process. KT will also install a wireless broadband network that will be accessible to 10,000 people in Kigali.

Dr. Kim discussed how Rwanda’s proximity to other African countries, such as Burundi, Tanzania, and the Congo, can serve as a potential customer base. In the future, these countries could use Rwanda’s backbone infrastructure to serve as interconnect points.

 

Kim also argued that a top-down approach is necessary for large-scale investments in developing economies. He states that the supplier should be on location, and relying solely on private investment can result in fragmented connectivity, so “the government had to initiate the development cycle by giving it a jumpstart. It (the connectivity) has to start somewhere.” Please view the video below to see his argument against the common notion that a government subsidized infrastructure, would inadvertently produce a government owned monopoly:

Once completed, Rwanda’s national backbone will possess the capability to enable online activities requiring high speed, broadband Internet. This includes initiating e-government services, to integrate citizens in the governing processes, similar to the e-government proposal that India has been working on for some time.

 

Shankar Aggarwal, secretary of the Ministry of Communications and IT in India, spoke at the World Bank event about this new e-governance initiative by the government to make public services, and governance regulations, more inclusive and transparent.

 

India is a country that has experienced monumental economic growth in the last 5 years—but the distribution of wealth to its 1.2 billion residents remains extremely imbalanced. 70% of the total population lives in rural areas and survive off less than a dollar a day.

 

India is at a crossroads in their development, as aspirations and hopes increase, those left behind are no longer content to live out the remainder of their lives in poverty. E-governance presents the opportunity to include these individuals in the governance process.

 

Aggarwal noted that India’s growth will be harnessed without involving the rural poor in governing their country, “if we want to have a sustainable growth, if we want to have happy societies, we have to go in to an inclusive growth…where each and every resident of that country feels that they are part of the governance process”. He began his speech by arguing that the catalyst for the current protests in the Middle East were societies are not being inclusive of citizens in their governing processes.

 

Please view the following video where he discusses the future of India’s e-governance initiatives for citizen’s inclusion.

 

The role of these governments to actively expand their connectivity and infrastructure is one that has a common goal: to include their citizens in the knowledge society. Whether it is using public funds for a start up backbone infrastructure, or creating an e-government initiative to make government processes more inclusive, governments from around the world are channeling into the benefits of being interconnected.

 

 

Here’s a good indicator of the role of ICT in development.

BBC News – Afghan Taliban threat shuts Helmand mobile network.

One of the important considerations in extending connectivity, be it voice or data services, into small and rural communities, is the need to address scale into more remote locations.  This includes the elements of local support, sustainability, as well as replication.  While the technology elements have for the most part be successfully addressed, the business elements are often lacking–with the result being that once the donor funding comes to an end, all-to-often the initiatives come to an end.

In the summer of 2006, the Sri Lanka LMI project was initiated with the issuance of a Request for Proposal by USAID’s Mission in Colombo.  The RFP sought proposals for establishing at a minimum of 20 telecenters in rural communities across Sri Lanka.  The requirement was that these centers be fully installed and operational within one year of the contract award.  The RFP also required that partners be bought into the proposal on a 2:1 match.

Man sitting at a computer, with a child looking over his shoulder at a conputer screen

Photo Credit: USAID

The winning award to granted to SSG-Advisors who put forward a comprehensive approach for establishing an EasySeva franchise that would rollout the required 20 telecenters.  These EasySeva centers were to be individually owned and operated by local in-community entrepreneurs.  This initial rollout would subsequently be expanded beyond the USAID contract requirements.

To meet the partnership requirement, SSG-Advisors partnered with several firms, including Dialog Telekom, Sri Lanka’s largest mobile operator and who provided broadband access to the centers, and Qualcomm, who provided broadband access through their GSM-HSDPA technologies.  Other partners included Microsoft, the National Development Bank (NDB), Lanka Orix Leasing Company (LOLC), and InfoShare.

The EasySeva franchise built several innovative approaches into its business model.  These innovations included:

Scale—the EasySeva franchise was designed to scale well beyond the original 20 centers as reflected in the contract.

Replicable “Center in a Box”—a replicable configuration was adopted such that a new center with a full set of value-added services could be set up rapidly, with services immediately available to customers.

Locally Owned and Operated—each center is locally owned & operated by an entrepreneur vetted to ensure they are capable of managing the venture.

MicroLeasing—the NDB provided capital funding, with LOLC using these funds to buy PCs that were leased to the franchisees.

MicroLoans—LOLC also made MicroLoans available to the entrepreneurs where there was the need for start up capital and to cover initial operating costs.

Multiple Services & Revenue Streams—the EasySeva centers were constructed to derive revenue from access to content developed and placed on each PC, from local calling via community phones, from international calling via VoIP, from Internet access, copying, faxing, etc.  The centers were also positioned such that they could provide local support to microLending and microLoans services into the communities.

Management & Technical Support—the EasySeva franchise operation also provides management training and technical support to the center owners.

The EasySeva franchise ultimately rolled 55 centers, well beyond the initial target. These centers are typically reaching profitability within 3-4 months after opening their doors to the local community.  The model clearly proved successful in achieving scale, sustainability, and replicability.  For Dialog, the telecom carrier providing the connectivity, these EasySeva centers provided community access for services not otherwise extended to those living in these more remote communities.

The EasySeva example reaches beyond Sri Lanka by providing a proof-of-concept for a scalable and replicable business, financial, and technical approach for extending connectivity and value-added services into smaller rural communities world wide.

Cover for the Macedonia Connects project

Photo Credit: AED

Within the context of USAID, most often rural connectivity initiatives are undertaken within the context of a sector-specific program/project.  This was the case case with Macedonia Connects, or what is more frequently referred to as MK Connects.  This project may well be one of the more successful Last Mile Initiative (LMI) project undertaken by USAID.

In fact MK Connects is much, much more.  The LMI project was undertaken as but one component of a unique national commitment to improve education, as well as a unique partnering of a significant number of both public and private sector partners.

The foundation for the success of MK Connects was the government of Macedonia’s commitment to a program for delivering a computer for every child.  The result was a nationwide broadband network providing broadband into every primary and secondary school—many of which were in remote rural locations.  Further, the project incorporated native language education content being delivered over this network to over 460 primary and secondary schools nationwide.

The journey started in 2002 when China donated 5,000 personal computers to support what soon became the e-Schools Project of the Ministry of Education and Science–a project that ran between 2003-2008.  The MK Connects project was a piece of this larger initiative, which in 2006 was augmented by the Primary Education Project (PEP).  Both MC Connects and PEP were USAID supported initiatives executed through the Academy for Educational Development (AED).

While focused on supporting Macedonia’s commitment to improve and modernize their education system top to bottom, MK Connects went well beyond connecting the 460 primary and secondary schools along with university campuses.

Picture of students in school crowded around a computer

Photo Credit: AED

As the project got started in 2003, it was estimated that only 4 percent of the Macedonia’s population had access to the Internet.  As the project concluded in 2007, Macedonia was the first country on the planet to achieve universal nation-wide wireless broadband coverage.  Not only were all the nation’s schools connected, but the project design also provided coverage for access by private sector businesses, the government, individuals, etc.

This connectivity was undertaken through a competitive process where a local Internet Service Provider (ISP) was able to build this nation wide network in just 4 years.  Motorola provided the wireless technology solution set, Canopy, a pre-WiMAX solution.

MK Connects, along with a number of important partners, was a unique experience with regards to modernizing Macedonia’s entire education system.  However, the fundamental approach taken in Macedonia holds promise for  application to countries around the world. The MK Connects model has been applied in neighboring Montenegro to bring more than seventy percent of the country on-line.  A similar project has been constructed in Georgia.  And  Senegal is the first African country seeking to replicate this model.

For more information, refer to the information on Macedonia contained in the GBI project database and MK Connects case study in the document library.

For the past several years there has been a virtual explosion of mobile networks across both developed and developing countries.  According to a recent ITU Report, Measuring the Information Society – 2010, at the end of 2009, globally 67 out of every 100 people were mobile subscribers.  For developing countries the numbers are 57 out of every 100—and growing.  The following graphic extracted from this ITU report shows the growth since 1998.

Within these numbers lies another somewhat hidden dynamic;

  1. Worldwide there are already more mobile Internet subscribers than fixed Internet subscribers, and
  2. This is supported by the market moving towards “smart phones.”  For developed countries the computer has been the dominant Internet access device.  For developing economies it is rapidly becoming the smart phone.

And with these dynamics come a number of rich opportunities for USAID as well as the larger international development community—opportunities for the most part that are just now starting to be explored.  These include:

Micro-Small Business Entrepreneurship—this mobile-smart phone-Internet ecosystem provides a rich opportunity for USAID to support the launch or strengthening of a local mobile application development industry.  This is replicable across countries, has low entry costs for entrepreneurs, is quick to market, and has near-instant countrywide market scale.  By its nature, it favors local development and content, with strong employment opportunity for youth.

Local Content Development—typically mobile applications are not only localized with regards to native languages, but also local with regards to content.  This creates an even a broader opportunity for local entrepreneurs and job creation—for both applications and content.

Public-Private Partnerships—the rich mobile-smart phone-Internet ecosystem is made up of handset manufacturers, mobile carriers, development toolset companies, hosting firms, etc.—all with local and international engagements.  Adding USAID and local government participation simply expands this ecosystem faster, further, and places a targeted focus socioeconomic development.

Sector-Specific Applications—for USAID’s various sectors, be it health, education, government, agriculture, etc., this ecosystem provides a rich low-cost platform for developing highly targeted solutions with rapid nationwide scale and with this, expanding USAID’s impact.

These, along with other dynamics reflect an expanding opportunity currently being explored by USAID where the Agency can provide a critical catalytic role to accelerate adoption.  A growing number of related blogs and documents posted on the GBI Portal provide additional information and examples of this exciting dynamic and its potential within the Agency’s development portfolio.

Group of attendees from Intel's Africa USF Conference

Photo credit: Eric White, Integra LLC

Universal Service Funds (USF) hold the promise of extended rural connectivity for millions throughout Africa, but governments often lack the technical capacity and know how to utilize these private enterprise models. Through GBI, USAID will work with private sector partners to further the use of USFs in sub-Saharan Africa, determining both the best practices and the barriers that inhibit successful performance. This project will build the host country’s capacity to deploy USFs, evaluate potential solutions and create a value chain of local ICT, ISP, and telecommunications partners who can harness the power of USFs to close the digital divide and fulfill the promise of rural connectivity.

In recent years there has been explosive growth in the global subscription rate for mobile services.  However, estimates are that there remains a gap in coverage somewhere on the order of 1.0-1.5 billion potential subscribers.  There is likely in addition to a gap of another 1.0+billion that have coverage but is not affordable  Of these, the overwhelming proportion live in rural communities.  Several reasons account for this lack of connectivity;

  1. Economics—for the carriers, there is relatively low revenue compared to cost of delivery,
  2. Lower hanging fruit—for most carriers, there are simply more profitable markets,
  3. Universal service funds—often these are not in place or are not effective in addressing this urban-rural gap, and
  4. Lack of electricity—in many rural localities there is simply the lack of power.

Fortunately this situation is beginning to change, with the following dynamics making this rural expansion increasingly practical.

Smaller-Lower Cost Pico-Micro Solutions—most rural communities have an average population of less than 2,000, and equipment companies are just recently starting to deliver solutions that address this market

Lower Cost Backhaul Solutions—historically mobile backhauls have been proprietary—further adding to the delivery cost.  The shift now is to a pure IP backhaul.  And with this, edge switching is possible for keeping local calls local—a critical element when the backhaul is via satellite.  IP backhaul also provides a single convergent solution that delivers both voice and broadband to the rural communities.

Solar panel displayed at Mobile World Congress

Photo Credit: VNL

Solar Powered Solutions—many of these small rural solutions are capable of being powered by solar, both at the tower-base station, as well as for the mobile handsets.  This is an absolute requirement as the number of communities not connected to a national grid is very similar to those without mobile/broadband coverage.

MicroTelco Business Model—the emerging technical and business model needed to address the rural challenge is that of a massively parallel approach.  This requires a technology that can be installed and supported by non-technical staff.  It also requires an approach by the carrier that move primary support to the rural community–possibly through a local community operator under the license of a carrier.

While the industry is just now beginning to focus on this market, a number of firms are starting to deliver low cost rural mobile solutions.  There is considerable variance in these solutions, but some are beginning to get the monthly average revenue per unit (monthly ARPU) required for sustainability of voice services, down to the $3-5/month range.  The following reflect several:

VNL—VNL is a company from India that has introduced a WorldGSM product line and community business model

Altobridge—Altobridge is an Irish company with a unique set of technologies and business model

STM Group—The STM Group offers complete backhaul and local distribution through their SuperPico GSM products

Ubiquisys—Ubiquisys one of a growing number of Femtocell firms delivering rural low-cost rural solutions

Nokia Siemens Network—NSN’s Village Connection solutions deliver low Monthly ARPU solutions for rural settings

Alcatel-Lucent–Alcatel-Lucent has been making recent investments in their arena and are poised to introduce a new line of low-cost solutions suitable for rural areas within this new year (CY2011).

The above represent an exciting opportunity for ultimately eliminating the urban-rural divide.  The GBI program is actively researching and engaging the above firms, along with others, to better position these within the overall context of USAID’s focus on addressing the rural gap.

Eric Youngren, founder of Solar Nexus International, serves as a catalyst for reliable, rural power solutions in the developing world.  The Solar Nexus power center is an innovative solution for electricity that brings the quality tested North American off-grid solar installations to areas of the world where similar systems are rarely found.

The SolarNexus is an all-encompassing system, where all the high quality electronics necessary to convert the energy generated by the solar PV panels (or any other source of renewable energy) into power that is stored in batteries for later use.

SolarNexus power centers are sold as part of a complete package, shown here. The package includes PV panels, deep cycle batteries, mounting hardware, code-compliant wiring, and instructions

SolarNexus power center is designed for permanent indoor installation and includes instructions, training and support to ensure successful installations and build capacity in local communities. To understand how the Solar Nexus system operates, view this great introductory explanation on the Solar Nexus International website

Installation was performed by Ensol, of Dar es Salaam, TZ Photo Credit: Eric Youngren

A project was launched in April 2010, Solar Nexus International shipped 30 complete SolarNexus systems — including PV panels and deep cycle batteries — to Tanzania for a project run by the U.K. based charity SolarAid. The systems would be used to provide light and power to schools that were beyond the radius of the electricity grid.  The mission was to replace the old, smokey, and potentially dangerous kerosene lanterns with effective, compact fluorescent light. This improved visability would allow more local children to attend the schools.

Eric traveled to Tanzania to assist in the training of local installation crews and help facilitate aptitude.  One main goal of the founder and his company is to improve the knowledge, skills and capacity of the solar installers in the developing world to ensure the system’s sustainability and overall impact.

Visit the Solar Nexus International website and their blog for more information on current projects

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