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Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre (IDRC), South Africa African Preparatory Meeting for The Internet Governance Forum: Africa: On the Road to Athens Theme II: ACCESS 18 th – 21 st September 2006 Mövenpick Cairo Media City, Egypt Organized by The National Telecom Regulatory Authority, Egypt

Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

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Page 1: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Policy Strategies for Improved Access to ICTs in Africa –

Current Developments and Future Challenges

Mike Jensen, International Development Research Centre (IDRC), South Africa

African Preparatory Meeting for The Internet Governance Forum: Africa: On the Road to Athens

Theme II: ACCESS18th – 21st September 2006

Mövenpick Cairo Media City, EgyptOrganized by

The National Telecom Regulatory Authority, Egypt

Page 2: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Lack of Telecom Infrastructure: Still the Major Barrier

- In 2005 there were about 26 million fixed lines for the 900 million people in Africa

- In Sub Sahara outside South Africa, there were only about 4.5 million lines - 1 in 150

- In many countries more than 90% of these lines are in the capital city and secondary towns, while 70-80% of the people live outside these areas:

E.g. Malawi has 8 000 fixed lines for the 10 million people living outside the 4 major towns: 1 line for every 1250

Page 3: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Sources: ESRI, GSM Association/Coversoft , ITU, Mike Jensen

Teledensity in Africa

http://www.idrc.ca/acacia

Page 4: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

GSM Coverage

Cost of calls are high, and data speeds low

Page 5: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Current Backbones and

Demand Centres in Africa

Page 6: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

The Access challenge• Bandwidth costs 100s of times more than EU/NA

– Carnegie Melon found that cross-Atlantic transit prices dropped $20/Mbps/month in mid 2005. African international prices are at least $2000/Mbps/month ==>

• Bandwidth is extremely limited and insufficient to meet demand - Internet links are usually congested/running at maximum capacity

• Decision-makers are inundated with demands for more bandwidth

• Under-utilisation of national ICT and economic resources - expensive investments are wasted

• Only 20-24 million Internet users (2.5% penetration)

Page 7: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Bandwidth Trends

Page 8: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Many systemic factors:- Economics- Electricity-Transport

-Taxes- Education

Page 9: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Restrictive Regulatory Environment - The Key Barrier

Lack of telecom competition creates high costs and low investment in infrastructure: ● State owned monopolies still v common● Some foreign investment in monopolies in return for continued exclusivity● Limited introduction of competition - 1 or 2 new fixed line players in a few countries● The limited number of GSM operators (2-3 in

each country) making big profits while fixed line operators increasingly redundant & other new technologies prohibited (VOIP, VSAT, WiFi etc)

Page 10: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Other Issues

- No benefit in Africa from Dot-Com bubble burst

- So far little use of alternative infrastructure, e.g rail/electricity/gas lines

- Operators do not want to provide to dark fibre

- Few national peering points, no regional IXs

- E-Rate (discount for education) only present in a few countries, e.g Senegal, South Africa

Page 11: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

NEPAD’s ICT STRATEGY FOR AFRICA:

Ensure affordable access to international communications by assisting African countries to connect to one another by broadband fibre-optic cable systems that in turn link them to the rest of the world through existing or planned submarine cable systems. The strategy should promote: – Collaboration amongst African countries – African ownership and leadership – Regional and continental integration – UN Millennium Development Goals and other

targets for the upliftment of African Society – Building competitiveness of African economies

Page 12: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

NEPAD MODALITIES- Submarine cable systems must form integral part of regional networks- All land-locked countries to have an alternative connection to a submarine cable system- All in place and operational by 2010

Principles:- Equality of ownership and participation by

countries of the region- Cooperation in technology transfer and skills

development among countries - New international infrastructure to be built according to Open Access policies

Page 13: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Open Access Networks: Key Features

- Any registered service provider is free to deliver services over the Open Access Network- The OAN operator does not compete with its customers (service providers) by offering services directly to end users ==> Separation of wholesale from retail- All service providers are offered services on fair and non-discriminatory terms and conditions- Consumers are free to choose any service provider Also: Capacity pricing is independent of distance and amount of capacity purchased

Page 14: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

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Page 15: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Addressing the Last Mile Challenges

•User Financed Infrastructure

• Low cost Internet appliances – Thin clients, Mobile Phones & Handhelds

•Wireless - Local loop / WiFi/WiMax => Mesh networks

•New low cost VSAT systems

•Data Broadcasting, e.g WorldSpace, DSTV

•Using electric power grid infrastructure for voice and data

•VOIP

Page 16: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Alternate Power Sources- Promote knowledge of Solar, Wind, Biogas

alternatives

- Need for financing, plus IPP policies

- Incentives, carbon credits?

- Elimination of Import duties

- Reduced power consumption

Page 17: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Increasing Demand

• Public access facilities – Telecentres, Cybercafes => Universal Service Objectives

• Build more relevant content – Electronic Funds Transfer, Agricultural/market info, e-govt

• Voucher systems• Access to credit for purchasing ICT equipment• Capacity building

• To use and manage comms & information facilities

• To use be aware of and to use new technologies – VOIP, WiFi, VSAT etc..

❐ Exploit potential of offshoring/ outsourcing from the North (esp via diaspora & African-Americans)

Page 18: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Human Resource Development

• Capacity building for Policy Makers and National Regulators

• Creation of Regional Centres of Excellence

• National Internet Training Centres – e.g. CITI

• Standards for User Training in Computer Applications - Computer Drivers License – ICDL

• Improved ICT Training programmes at schools, universities, research networks, workplace and informal environment

Page 19: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

- Accelerated liberalisation and expanded universal service goals

- Support for Public Participation in Policy Development ==>

- Integrated National Information & Communications Infrastructure (NICI) planning

- State support for Telecentres & Multipurpose Community Access, and Community Radio Stations

- Universal Smart Cards & E-Commerce policies- Government Content and Applications

Development- Access to credit for purchase of ICTs- Adopt a phased approach which priorises

activities – infrastructure, connectivity of key decision makers in government

National Strategies

Page 20: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Key Barriers To Be Addressed

•Lift restrictions on numbers of licenses for telecom operators, ISPs and broadcasters

•Drop high license fees and speed processes for licensing

•Allow data-only private wireless and VSAT

•Eliminate import duties on ICT equipment

•Reduce the high cost of international Internet transit in Africa

Page 21: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Other Priority Actions

• Ensure more resources given to transport and power supply networks, alternative energy sources, and smoothing cross-border links

• Promote other demand building strategies: voucher systems, access to credit for SME ICT businesses

• Use an agreed set of progress benchmarks• Stay technology neutral – let market decide• Encourage infrastructure sharing (eg. Masts, rights

of way, pylons, gas pipelines etc)• Encourage (in interim) price capping for monopoly

supplied bandwidth• Do not use developed country models

Page 22: Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre

Thank You

Mike Jensen

[email protected]