An Alternative, Practical, An Alternative, Practical, Plus Sustainable Approach to Plus Sustainable Approach to Addressing the Digital DivideAddressing the Digital Divide

Presented by: Cliff CourtPresented by: Cliff Court

2222ndnd February 2006 February 2006

ContentsContents

• Digital Divide definitionDigital Divide definition

• Current initiativesCurrent initiatives

• What’s the actual issue?What’s the actual issue?

• Proposed new approachProposed new approach

• Challenges it presentsChallenges it presents

• Discussion and feedbackDiscussion and feedback

Digital Divide Definition(s)Digital Divide Definition(s)

• First coined by Dr Simon Moores in 1996First coined by Dr Simon Moores in 1996• ““The socio-economic gap between communities The socio-economic gap between communities

in their access to computers and the Internet”in their access to computers and the Internet”• No clear definition that can divide society into No clear definition that can divide society into

two distinct groupstwo distinct groups• Importance of the DivideImportance of the Divide

• Civil equalityCivil equality• Social mobilitySocial mobility• DemocracyDemocracy• Economic growthEconomic growth

Current InitiativesCurrent Initiatives• $100 laptop from MIT$100 laptop from MIT

• Simputer in IndiaSimputer in India

• Nivo from NdiyoNivo from Ndiyo

• Refurbished PCs from Refurbished PCs from computers4africa.orgcomputers4africa.org

• Bicycle-powered PCs inBicycle-powered PCs inLaos villageLaos village

• PCtvt – Carnegie MellonPCtvt – Carnegie Mellon

• Telemedicine in the Amazon – Madrid Telemedicine in the Amazon – Madrid UniversityUniversity

What’s the Actual Issue?What’s the Actual Issue?

• The provision of cheap technology does not The provision of cheap technology does not directly benefit a communitydirectly benefit a community

• With Internet access, it does provide a new With Internet access, it does provide a new window of knowledgewindow of knowledge

• How do users pay for ongoing access?How do users pay for ongoing access?• How does such technology and access actually How does such technology and access actually

improve their lives?improve their lives?• What is really needed is initiation and promotion What is really needed is initiation and promotion

of of newnew economic activity in Divided communities economic activity in Divided communities

A New ApproachA New Approach

• Begin with the end in mind – generation of Begin with the end in mind – generation of sustainable new economic activitysustainable new economic activity

• Must include upliftment of social servicesMust include upliftment of social services

• Not yet tested in any wayNot yet tested in any way

• Accommodates social realities and Accommodates social realities and requirements – but must be able to pay for requirements – but must be able to pay for it on an ongoing basisit on an ongoing basis

A New ApproachA New Approach

Affordable/Cheap Communication

Social Services

Financial/banking services

Trade/Ability to transact economically

New ApproachNew Approach

• Four tiersFour tiers• Affordable communication – foundation to Affordable communication – foundation to

everythingeverything• Social services – a better channel to reach those Social services – a better channel to reach those

that are traditionally hard to reachthat are traditionally hard to reach• Financial tier – banking the un-bankedFinancial tier – banking the un-banked• Access to trade channels – entrepreneurs exist Access to trade channels – entrepreneurs exist

everywhere – but often do not have the mechanisms everywhere – but often do not have the mechanisms to executeto execute

Tier 1 – Affordable Tier 1 – Affordable CommunicationsCommunications

• The most basic enabler of economic activity is The most basic enabler of economic activity is communication between partiescommunication between parties

• Communications in ‘Divide’ areas has typically been Communications in ‘Divide’ areas has typically been hard or non-existent – until cell phones came alonghard or non-existent – until cell phones came along

• Cell voice calls are expensive and SMS’s are very Cell voice calls are expensive and SMS’s are very limitedlimited

• GPRS is suggested as the current ‘answer’ to GPRS is suggested as the current ‘answer’ to providing affordable communications (in SA, was providing affordable communications (in SA, was R50 per MB, now as low as R1 per MB)R50 per MB, now as low as R1 per MB)

• Low-cost mobile data channel will allow useful levels Low-cost mobile data channel will allow useful levels of communication for personal and business useof communication for personal and business use

Tier 2 – Social ServicesTier 2 – Social Services

• Where a channel exists to ‘Divided’ peoples, it Where a channel exists to ‘Divided’ peoples, it should be used for social benefitshould be used for social benefit

• Social services will be dispensed using the new Social services will be dispensed using the new Tier-1 communication channel Tier-1 communication channel

• Services include:Services include:• eHealth – HIV/AIDS, malaria, TB, local epidemic, vaccination infoeHealth – HIV/AIDS, malaria, TB, local epidemic, vaccination info• eAgriculture – planting, harvesting, market price infoeAgriculture – planting, harvesting, market price info• eGovernment – voting, tax, services infoeGovernment – voting, tax, services info

• Services are customised based on location and Services are customised based on location and regional languagesregional languages

Tier 3 – Financial/Banking ServicesTier 3 – Financial/Banking Services

• Majority of African banking services are Majority of African banking services are problematicproblematic

• A trustworthy, borderless financial service provider A trustworthy, borderless financial service provider or bank is neededor bank is needed

• Due to migrant labour, the need to transfer money Due to migrant labour, the need to transfer money ‘back home’ is important‘back home’ is important

• Any trade that does occur will require financial Any trade that does occur will require financial ‘comfort’ for both parties‘comfort’ for both parties

• Microloans are a key instrument of initiating Microloans are a key instrument of initiating economic activity in a communityeconomic activity in a community

• The Tier 1 communication layer should be used to The Tier 1 communication layer should be used to access such financial servicesaccess such financial services

Tier 4 – Trade/Economic ActivityTier 4 – Trade/Economic Activity

• With the Tier 1 communication and Tier 3 With the Tier 1 communication and Tier 3 banking services in place, trade is enabled banking services in place, trade is enabled between distant partiesbetween distant parties

• ‘‘Divides’ can now promote their wares and Divides’ can now promote their wares and interact with potential buyers i.e. as sellersinteract with potential buyers i.e. as sellers

• ‘‘Divides’ can now also have contact with Divides’ can now also have contact with suppliers of raw materials i.e. as buyerssuppliers of raw materials i.e. as buyers

• Tier 4 is the ultimate goal of the bridging the Tier 4 is the ultimate goal of the bridging the divide – enabling new economic activitydivide – enabling new economic activity

The Proposed ModelThe Proposed Model

• Yet another device – but with special Yet another device – but with special considerationsconsiderations

• Use of GPRS mobile data channelUse of GPRS mobile data channel• Built-in social services applicationsBuilt-in social services applications• Built-in mobile banking account – access to Built-in mobile banking account – access to

virtual bank at no costvirtual bank at no cost• Built-in email, web browsing, IMBuilt-in email, web browsing, IM• Free submission of products to ‘Africa’ web Free submission of products to ‘Africa’ web

trade portaltrade portal• Wherever possible, use tried and proven models Wherever possible, use tried and proven models

to reduce riskto reduce risk

The DeviceThe Device

• Based on Hiptop device from Danger Research Based on Hiptop device from Danger Research • GSM/GPRS device – use normal mobile operatorsGSM/GPRS device – use normal mobile operators• Intelligent but very thin clientIntelligent but very thin client• Licenceable technology for cheap manufactureLicenceable technology for cheap manufacture• Customisable with Java applicationsCustomisable with Java applications• CameraCamera

EmailEmail Instant MessengerInstant Messenger ‘‘Proper’ Web BrowserProper’ Web Browser

Key Device IssuesKey Device Issues

• Device must be ultra-efficient in use of Device must be ultra-efficient in use of bandwidth – both for cost of data and load on bandwidth – both for cost of data and load on network operatorsnetwork operators

• Customisable for multiple languages and localesCustomisable for multiple languages and locales• OTA updatableOTA updatable• Content ‘push’ capability is criticalContent ‘push’ capability is critical• Content auto-formatted (and compressed) for Content auto-formatted (and compressed) for

form factorform factor• Device is the Tier 1 solution – useful Device is the Tier 1 solution – useful

communication at affordable costcommunication at affordable cost

Provision of Social ServicesProvision of Social Services

• Engage suitably skilled NGOs for each of the Engage suitably skilled NGOs for each of the service envisagedservice envisaged

• eHealtheHealth• eAgricultureeAgriculture• eGovernmenteGovernment• Others…Others…

• Use device ‘push’ capability and local language Use device ‘push’ capability and local language support in order to reach widest audiencesupport in order to reach widest audience

• No cost to recipient for these servicesNo cost to recipient for these services• This provides the Tier 2 requirementThis provides the Tier 2 requirement

Virtual Bank – ‘African PayPal’Virtual Bank – ‘African PayPal’• Based on eBay’s PayPal virtual bank modelBased on eBay’s PayPal virtual bank model• PayPal infoPayPal info

• 96 million accounts96 million accounts• 55 countries55 countries• High securityHigh security• Person-to-person transfer/Person-to-business transferPerson-to-person transfer/Person-to-business transfer

• ‘‘AfPal’ account built into device with rich transactional AfPal’ account built into device with rich transactional functionalityfunctionality

• AfPal provides trustworthy financial services and low AfPal provides trustworthy financial services and low transactional costs transactional costs

• Virtual bank hosted in S Africa or EuropeVirtual bank hosted in S Africa or Europe• ‘‘On ramp’ and ‘Off ramp’ provided through traditional On ramp’ and ‘Off ramp’ provided through traditional

banksbanks• This provides the Tier 3 requirementThis provides the Tier 3 requirement

Web Trade PortalWeb Trade Portal

• Free, catagorised access for device users to promote Free, catagorised access for device users to promote manufactured goodsmanufactured goods

• Goods are submitted with photo from camera, short Goods are submitted with photo from camera, short description and price wanteddescription and price wanted

• Portal staff format submissions for web site Portal staff format submissions for web site • Any purchases can be made through traditional web Any purchases can be made through traditional web

transaction (credit card)transaction (credit card)• Revenues are transferred directly to seller’s AfPal Revenues are transferred directly to seller’s AfPal

accountaccount• Portal can be used for purchase of raw materials for Portal can be used for purchase of raw materials for

manufacturers or through normal web browsermanufacturers or through normal web browser• Substantive difference to the ‘Divide’ is now achieved as Substantive difference to the ‘Divide’ is now achieved as

new economic activity is enabled with Tier 4 in placenew economic activity is enabled with Tier 4 in place

The ModelThe Model

AfPal VirtualBank

Migrant worker

DividedCommunities

DividedSME Manufacturer

GPRS

Content PushSystem

Medical NGO

Content collationsystem

Agriculture NGO

Government NGO

ContentProviders

Mobile Operators

Web TradePortal

Internet

Internet

Buyer onInternet

CentralOperations

Links toOtherbanks

Supplier onInternet

Sends moneyhome

Receives moniesHealth services

Markets and sells goodspay taxes

ChallengesChallenges

• Where’s the money?Where’s the money?• Who is the target?Who is the target?• How can they afford the device and on- How can they afford the device and on-

going access?going access?• Hang on! You said it was sustainable!Hang on! You said it was sustainable!• If AfPal is needed because other banks If AfPal is needed because other banks

are not trustworthy, how can you rely on are not trustworthy, how can you rely on them as on and off ramps? them as on and off ramps?

• What’s next?What’s next?

Discussion and FeedbackDiscussion and Feedback

• Why is this a non-starter?Why is this a non-starter?

• What are the show-stoppers?What are the show-stoppers?

• How would you do it?How would you do it?

• Where would you go for funding?Where would you go for funding?

• Is this worth more research within UCT?Is this worth more research within UCT?

Many thanks for Many thanks for your time today!your time today!

Cliff CourtCliff CourtEmail: cliff@vine.co.zaEmail: cliff@vine.co.za