Enabling Affordable Broadband for Inclusive Growth

CONNECTING THE NEXT BILLION Beacon Events

2 – 4th, November 2010, Jakarta

Santanu Sengupta ACMFI Director , Corporate Affairs & Finance African Centre for Mobile Financial Inclusion

Broadband Today:Changing Definition

2nd Septemeber 2010, London

• ITU Chief Hamadoun Touré: "broadband technology will dominate this decade“

• "ICT and broadband are the decisive factors for the development of all industries, and encouraging private companies to develop infrastructure helps create profits and jobs, which will help nations around the world to meet the Millennium Development Goals," he said.

• Monday 20 September,2010

• Broadband is a basic human right, ITU tells UN –• Access to high-speed broadband should be a basic human right, the

International Telecommunications Union told world leaders at the UN's Millennium development goals conference in New York on Sunday.

The Shifting Focus t

• ITU Secretary General Dr HamadounTouré said broadband access was a "tipping point" for economic development. "It can generate jobs, drive growth and productivity, and underpin long-term economic competitiveness. It is also the most powerful tool we have to meet the Millennium Development Goals, which are now just five years away," he said

THE ACTION POINTS

• “1. Connecting broadband with the Millennium Development Goals and knowledge societies

• 2. Benefitting from transformational change

• 3. Using transparent, fair, competitive, technology-neutral models

• 4. Enabling content and applications creation

• 5. Employing broadband to help combat climate change

• 6. Accelerating broadband access for women and girls

• 7. Supporting wider broadband inclusion for all

• 8. Broadband modelling, evaluation and monitoring

• 9. Building a global partnership for broadband development

• 10. Next steps for broadband partnerships and projects”

THEN

Broadband

• 1.2 Why promote broadband? 2002-03

• Generally speaking, the main reasons for promoting broadband can be given as follows:

• • Benefits to users. Compared with narrowband, the increased speed and always-on4 nature of

• broadband enables the exchange of richer content, facilitates improved, expanded and more rapid

• communication, and allows the sharing of a connection with multiple users.

• • Benefits to the economy. Broadband connectivity is helping to establish an “information society”. It

• encourages innovation, stimulates growth in an economy, and attracts foreign investment.

• • Returns on investment. Broadband holds the promise of new applications and services that will

• attract users and help recover infrastructure development costs.

Genesis : Early Days

BB Penetration

THE DEVELOPING STORY

ICT Growth

Broadband 2 GDP

Lowering Access Charges

GDP CONTRIBUTOR

The Growth Dimension

WHYS

Broadband Journey

• FOUR PILLARS OF BROADBAND UPSURGE• INNOVATION & APPLICATION • ACCESS PRICE• CONTENT & LOCALISATION • INCREASING BANDWIDTH

and • IT ALL HAPPENED DUE TO STRUCTURED

FINANCING

WHYs :Leaders & Laggards

Various National Initiatives

Applications’ Impact

WHYs : Leaders

Content : Localisation

Title

ASIAN STORY

CHINA STORY

CHINA STORY

CHINA : Financing Growth

INDIA & INDONESIA

THE SLEEPING GIANTS

• Indonesia is the fourth largest country in theheworld with 240 Million population

• Ranked as one of the top four telecom markets in terms of scale and development potential

• Until 1989, the telecoms sector was Govt Controlled

• In 2000, policies governing the telecoms sector were amended in order to create a competitive environment for the entry of new telecom players

• 1994 :Internet services were first introduced commercially

Indonesia Stats

• With a total population of 240 million, Indonesia is ranked as one of the top four telecom markets in terms of scale and development potential. However, Indonesia faces some big challenges if it is to successfully continue the building of telecommunications infrastructure needed to support its uniquely complex geography - an archipelago that spans over more than 16,000 islands.

SLOW LANE TO FAST TRACK

• 190 MILLION strong Mobile subscriber base •Wimax Forum launched •The Palappa Ring Project •Early adoption of 3G • The IIX & IIPs

• The launch of mobile WiMAX combined with current mobile broadband services would certainly provide a much needed boost to broadband coverage in the country. BMI estimates that broadband penetration at the end of 2010 was just 1.4% and forecasts will reach just 5% as of 2014, emphasising the exceptionally high potential for growth.

SLOW LANE TO FAST TRACK

• 190 MILLION strong Mobile subscriber base •Wimax Forum launched •The Palappa Ring Project •Early adoption of 3G • The IIX & IIPs •Internet users likely to cross 80 Million by 2010

SLOW LANE TO FAST TRACK • The Bottom Line

• It is easy to look at a country like Indonesia with a critical eye, and come up with lots of suggestions on how the country may more rapidly develop Internet broadband infrastructure. That is until you travel within the country and learn the true meaning of “rural.” Indonesia’s government understands the value of integrating eLearning, eGovernment, eBusiness, and eEverything into the Indonesian socio-cultural DNA. And the government is encouraging Indonesia’s private sector to invest.

• As foreigners looking in, we should step back and remember the Jakarta and Indonesia of the mid-1990s, and consider the remarkable development that has occurred over the past decade, and congratulate the government in its current success, while encouraging further growth. A well-educated, well-wired, and productive Indonesia is both important and valuable to the international community, and from what I have seen over the past few days the country is making great progress in meeting their goals.

INTERNET STATS

The Change Ahead POINT COUNTERPOINT

The Palappa Ring ProjectPOINT COUNTERPOINT

• Telecommunications is unusually plastic. It was shaped by behind-the-scenes bargaining. It can be reshaped by human leaders with the hopes of all Indonesians in their hearts.

• Palapa Ring, for example, is known to engineers as a project for laying a long fibre optic cable in Eastern Indonesia. But “Palapa” is a war cry that traces back to Indonesia’s 13th century Majapahit regime that achieved the impossible goal of united the vast archipelago into one Empire. Turning today’s fibre optic network into a tool for user empowerment must be understood as an equally heroic mission. Palapain the 21st century can convey the zeitgeist of broadband. Such ideas represent the true national awakening: Broadband, properly deployed, is capable of awakening productive capacities of more than 200 million consumers who nowadays wait patiently on the sidelines, hoping for the chance to be incorporated into Indonesia’s formal economy.

Palapa: Business case Prescription Solution

• Palapa Ring is a brilliant model for integrating Indonesia’s telecommunication sector and interconnecting the platforms of competing operators. But it lacks a business model.

• After all, Indonesia needs a broadband ecosystem that is usable, affordable and empowering – the three terms that explain what we mean by “meaningful.”

• Broadband investments could support the Republic of Indonesia’s efforts to move towards more sustainable energy policies

Result : State to help finance Palapa Ring project in 2010

INDIA

THINKING BIG

National Broadband PlanJune 2010 Why

• TRAI Launches

Consultation Paper On National Broadband Plan.

• “Although the National Broadband Policy, enunciated in the year

• 2004, envisaged coverage of 20 million broadband connections by the

• year 2010, the performance so far has not been up to the expectations.

• In order to ensure continued economic growth of the country, rapid

• spread of broadband both in the urban and rural areas is an imperative.

• The need of the hour is to evolve a National Broadband Plan, covering

• various aspects right from the definition of broadband to spread of

• infrastructure and various regulatory and other issues.

DRIVING ON BUMPY ROAD

BB BUSINESS CASE Factors For BRIDGING the GAP

• 600 MN plus mobile phone

• 2nd fastest growing economy in the world

• Growing regional power

• Aspiring Global Leadership

• FDI in torrents

• Bourgeoning Middle Class

• BIG Social Sector Spending

Not with standing High Growth

UN HUMAN DEVELOPMENT REPORT, 2008: From 127 in 2004, India has slipped to 132 in the Human Development Index, scoring below Equatorial Guinea and the Solomon Islands.

UNICEF STATE OFTHE WORLD’S CHILDREN, 2009: Infant mortality rates have improved from 67/1,000 to 57/1,000 live births since 2004, but India trails even Mali on this count.

IFPRI GLOBAL HUNGER REPORT, 2009: India, at 66th position, ranks below Bangladesh in underweight children and child mortality.

IFC/WB DOING BUSINESS REPORT, 2009: India is the most difficult country to enforce contracts in a court or otherwise.At 122, it trails Nepal and Bangladesh.

WEF GLOBAL COMPETITIVENESS REPORT, 2008: With its inadequate infrastructure, inefficient bureaucracy and tight labour laws, India, at 50th position, is no match for China.

UN MILLENNIUM DEVELOPMENT GOALS REPORT, 2008: India, where girls still wait for primary school access in some regions, trails Sri Lanka and Maldives in meeting targets set in the Millenium Development Goals.

GLOBALCORRUPTION PERCEPTION INDEX, 2008: India’s rank has fallen from 72 in 2004 to 85 even as China, with which it was on par till last year, maintained its position at 72.

UNIDO REPORT, 2009: India, at 54 (down from 51 in 2000), trails China by 28 positions on the Competitive Industrial Performance Index.

INDEX OF ECONOMIC FREEDOM, 2009: With a shackled judicial system, excessive regulation and a “mostly unfree” reputation, India, at 123, trails Gabon.

TRAVEL & TOURISM COMPETITIVENESS REPORT, 2009: India ranks low at 62 with inadequate tourism infrastructure. Smaller countries like Puerto Rico and Panama are way above India

Impact Perspective

Plethora of Initiatives

National Unique Identity Scheme : The Biggest Data Handling Initiative in the World : 1,180,000,000 Dynamic Data

Parallel National Developmental Initiatives :

Rural Roads Rural Health Mission National Employment Gurantee Scheme

Negp

SWAN

CSC

SDC

NBP

National E Governance Plan : 3 flagship Programmes

• Common Services Centres : 100000 ( 250,000 ) • State Wide Area Network : 26 states + Union

Territories• State Data Centre & now National Broadband

Plan

Broadband Architechture

Instead of earlier 3 layer it is now a 6 layer architechture at Village level

A. SCA State HQ

B. District Office

C: Sub Divisional Office

D :Block Level Office

E: SBA at TEIR 5

Router

Data Center

2 Mbps LL

nX64/2 Mbps LL

nX64/2 Mbps LL

Internet Bandwidth

Dial Up Connectivity/Vi Sat Wimax /3g NOW

BROADBAND

Broadband as a Catalyst

• Education Health , Governmen services, Financial Services

ONE STOP ICT

CSCs 100000 originally , now 250 000 in all out of 600000 villages , providing G2P , G2C, B2C & C2C services

Will now act as BANK ‘S ARM as BC

Manages SBA, of Comm 1 stores Service Provider Accounts

Provides Internet Payment Gateway

Manages Cash

BANK

Manages Comm 1Network

Provides Portal Services

Makes Payment to Service Providers

Study & Jobs Worldwide

Service provider

BANK

Broadband Enmeshed Network

• Will use Mobile Communication with embedded Frames

WILL ALSO WORK ON Capacity Bulding

& augmenting resources locally for training , survey , colletion of data & Finanacial Literacy programme

WILL BE ON Back Bone Core with Back up VSAT & 3G

BANK

Manages Comm 1Network

Provides Portal Services

Makes Payment to Service Providers

Study & Jobs Worldwide

Service provider

BANK

NREGA Process Flow

BANK

Study & Jobs Worldwide

Service provider

GOVT Apply for Registration in CI

Apply for Services

Record Daily Services provided

Verification and approval of

registration by CI

Issue ID Card

Provide the Services through On &Off line

Collect Service Requisition & Process

Send it to CI for Supply the

services

Calculate Monthly

Commission

Make Payment through Online Banking against

the Services

If Any Due After Adjustment, Pay Rest

Amount To DBA/ZBA/BBA/SBA

Register Grievance

Acknowledge

Addressed by Competent Authority

SBA

BBA/ ZBA/ DBA

Service Deployment

BANK

Study & Jobs Worldwide

Govt. service –health, education, transport

Services

Top Down

Bottom

up

Education , Small

Buinesses, Bill pay

Land records

Insurance

Service Provider/ Government/service provider

Villager/Kiosk/NGO/CSC & field level

ENTRPRENEUR

Bill payments, E-commerce Service provider

BROADBAND LIFELINE

Education

• Massive Progamme to augment School education

to be driven centrally through Broadband usage

• 270,000 secondary & Higher secondary schools to be brought under this.

• Total outlay by MHRD is about Rs 4700 Crore where the monetary provisons are there to interconnect where GovT pays

Services

• Huge Combined efforts of

E Gov services & allied change management effects , total combined outlay of in USD 10 BN

SWAN : 26 states upto GP

SDCs : Each state as repository

CSCs : Ist phase 100000 15000 more

NBN : to lay Optical Fibre with a combnation of 3G,Wimax, LTE with an additonal capacity of USD 6.5 BN

SBA

TRANSPORTATIONTRANSPORTATION

TRAINERS TRAINERS

Godown

Schools Schools

Godown

Sub-Centre

Sub-Centre

Sub-Centre Sub-Centre

Sub-Centre

Sub-Centre

Sub-CentreSub-Centre

Communication

Communication

Communication

Communication

Communication

Communication

Communication Communication

The Great Knowledge Wheel

TOWARDS A Knowledge Economy

• India is currently the 5 th biggest economy & will become effectively the 3rd biggest after USA & China by 2025.

• It will be the youngest of the top 5 nations

• Broadband will be the lifeline for inclusive & widespread growth & will probably the best structured development model PROVIDED WE SURMOUNT the old bogeys

Broadband for Inclusive Growh

THANK YOU ALL