Communications Commission of Kiribati Universal Access Plan 2015 David N. Townsend, Universal Access Consultant

2 Overview Objectives Program I: Outer Island 3G Mobile Telephone Service Program II: Public Internet Access Program III: Affordable ICT Devices CCK Universal Access Plan

3 Objectives Promote the availability of: a)the communications services identified under Section 67 (4) of the Act; b)ICT programs that increase access to PCs and other digital devices, localized content and services, including eGovernment services and other social services; c)community ICT centers, Internet kiosks, and other community access points. Programs designed to meet the immediate social and economic needs of the citizens, businesses, and institutions of the Outer Islands, for information and communication. Provide financial “smart subsidies” to close uneconomic “Access Gaps” and establish viable commercial ICT markets. CCK Universal Access Plan

4 Key Features Establish and/or upgrade mobile telephone service on designated Outer Islands:  Provide 3G quality voice and data service covering as many inhabitants as possible. Utilize Microwave backhaul links to existing networks where technically feasible; satellite backhaul where necessary. The Universal Access Fund will provide financial support for infrastructure, facilities, and equipment, and start-up operations.  One-off subsidy to ensure commercial viability of services. Licensed service provider, subject to CCK regulation, responsible for all aspects of customer service, retail sales, service quality, etc. CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service

5 Key Features Three Island Groupings (first 2 year Plan):  Southern 1: North TabiteueaSouth Tabiteuea Nonouti Beru  Southern 2: OnotoaNikunau TamanaArorae  Central: AbemamaKuria Aranuka CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service

6 CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service

7 Rationale Initial priority to islands that have little or no communications infrastructure or service.  However, not all islands can be covered with the available funding and capacity of the first 2-year program.  Line Islands will be included within the next program. Islands with only 2G service that are near unserved islands are included to serve as connectivity hub to surrounding islands.  Their infrastructure will be upgraded to 3G. Geographically nearby islands are grouped together to take advantage cost savings on supply and inter-island links It is expected that some Outer Islands will be commercially viable without subsidy; CCK will monitor market developments. CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service

8 Implementation Approach Infrastructure and service will be built, owned, and operated by private service providers, which will submit competitive bids for UAF subsidies.  CCK UAF rules will apply Program implemented in stages, to groups of islands in combined bid lots or packages: CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service Group #IslandsTime frame Southern 1Nonouti, Tabiteuea/North, Tabiteuea/South, BeruMid-late 2015 Southern 2Onotoa, Nikunau, Tamana, AroraeEarly 2016 CentralKuria, Aranuka, AbemamaLate 2016

9 Implementation Approach For each island grouping, CCK will issue a public RFP, identifying:  Scope of services to be provided  Maximum available subsidy for the group as a whole  All technical and contractual requirements CCK will oversee and regulate the bidding process and project implementation, in collaboration with Ministry, World Bank, and/or other key stakeholders. CCK will promote competition, technology neutrality, transparency, and innovative solutions.  Subsidized providers must offer interconnection and infrastructure sharing. CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service

10 Cost Estimate A market and economic assessment yields the following estimated net subsidy cost ranges (combined total subsidy for each group): CCK Universal Access Plan Program I: Outer Island 3G Mobile Telephone Service Group #Islands Est. total subsidy range (AUD 000) Southern 1Nonouti, Tabiteuea/North, Tabiteuea/South, Beru 1,700-1,900 Southern 2Onotoa, Nikunau, Tamana, Arorae 2,050-2,250 CentralKuria, Aranuka, Abemama TOTAL 4,575-5,125

11 Key Features Improve public access to the Internet in the Outer Islands through Community Internet Centers (CICs).  Either construct new CICs or rehabilitate existing centers Each CIC will be equipped with:  Standard set of computer equipment  Related hardware and software  Broadband Internet connection (likely VSAT or 3G) CICs will also provide local WiFi signals, to allow users to connect on their own devices. CCK Universal Access Plan Program II: Public Internet Access

12 Key Features Use of the CIC and WiFi will be based on commercial subscription and usage charges.  Bandwidth costs may be subsidized to allow for affordable pricing to a wide set of community users. CIC projects will also provide ICT technical support and training.  Assist CIC operation to ensure effective performance  Support public users to understand and use Internet services and applications citizens local businesses, SMEs local government offices CCK Universal Access Plan Program II: Public Internet Access

13 Key Features CIC projects will initially be supported in five islands: 1.Butaritari 2.North Tarawa 3.Abaiang 4.Marakei 5.Maiana CCK Universal Access Plan Program II: Public Internet Access

14 Rationale Selection of initial islands based on:  Relatively close proximity of South Tarawa will facilitate delivery of technologies, equipment and expertise  Greater ease of project monitoring  Objective to improve access to communications for all/most Outer Islands as soon as possible. As these islands are not included in Program 1, this program ensures that most Outer Islands will have some improved communications within 2 year time frame. CCK Universal Access Plan Program II: Public Internet Access

15 Rationale This program is intended to expand and reinforce availability and advantages of 3G Internet access on the Outer Islands.  Provide a wider scope of resources, higher-speed connectivity, technical support and training, and options for improved institutional access.  Help to stimulate overall demand for and utilization of Internet services throughout the Outer Islands. Technical support and training is a key component.  CICs will serve as technical resource for Internet users, to help them learn and benefit from ICT services and devices.  Also help entrepreneurs with on-line business functions.  Collaborate with local government, including schools, to support connectivity and service needs. CCK Universal Access Plan Program II: Public Internet Access

16 Implementation Approach Program will be implemented first in a pilot phase on one or two islands e.g. Butaritari and North Tarawa.  Following successful completion, subsequent projects will be deployed in Marakei, Abaiang and Maiana.  CCK will consult with local officials, interested entrepreneurs, and other stakeholders in development of these projects. Projects will be implemented via competitive bidding among prospective service providers.  One award (single business entity or consortium) per island. CIC operations will be managed by the successful bidders according to their preferred business plans.  Responsible for meeting all mandatory performance standards. CCK Universal Access Plan Program II: Public Internet Access

17 Cost Estimate Average capital cost will differ from one island to another, based on various factors: New vs. existing VSAT terminals New or available buildings, furnishings Equipment, devices, software needs Bandwidth costs as a function of user demand Staffing, security, electric power, etc. Estimated Baseline cost range:  Start-up capital = AUD 25,000 to 100,000 per island  Initial operating expense subsidy per year = AUD 5,000 to 10,000 for 5-year planning horizon  Combined net subsidy estimate = AUD 50,000 to 150,000 CCK Universal Access Plan Program II: Public Internet Access

18 Key Features Provide discounted or free ICT devices for qualified recipients throughout Kiribati. The UAF will work with service providers and other providers to establish the criteria and parameters for the program. The program can include a variety of components, but the initial priorities will be:  Free laptops for students and teachers at schools that have an ICT policy in place,  Discounted smart phones and/or tablets for 3G subscribers  Discounted PCs for local small businesses. Program will be implemented in tandem with 3G and public CIC services, to ensure affordable devices to target users. CCK Universal Access Plan Program III: Affordable ICT Devices

19 Rationale This program intends to provide extra support to adoption of 3G and Internet services, by ensuring that a critical mass of users will be able to afford smart devices. The enhanced experience of higher quality smart phones, tablets, PCs or laptops will improve benefits and increase demand for Internet services throughout the country. CCK Universal Access Plan Program III: Affordable ICT Devices

20 Implementation Approach This program will be initially implemented in a pilot stage, to test mechanisms and develop appropriate relationships among suppliers and distributing agents. CCK will issue an RFP for delivery of a limited number of subsidized ICT devices to one or two islands, in coordination with the establishment of 3G services. A competitive bidding process will select the provider that will be responsible for purchasing and distributing the devices. The pilot projects will also incorporate measures to determine beneficiary eligibility, pricing and discount levels, and security precautions CCK Universal Access Plan Program III: Affordable ICT Devices

21 Cost Estimate Initial budget will be modest during the first UA Plan, but may be increased upon successful demonstration of its outcomes in future plans. For this Plan, estimated allocation of approximately AUD 50, ,000 in total. CCK Universal Access Plan Program III: Affordable ICT Devices

22 Project Scope What services should be required? Are the proposed programs appropriate? What should be the service model for the Internet Centers (program 2)? How should ICT devices be provided (program 3)? Implementation What should be the priority islands for 3G and Internet? What time frames are appropriate, realistic? How much competitive response will there be to the projects? Market Structure What are the major cost factors? Are the estimates provided realistic? What are the expected levels of demand and revenues for 3G and Internet services? CCK Universal Access Plan Discussion Questions