1. The African Experience: Building both Supply & Demand InfoDev Workshop Monday, Mar 14, 2005 World Bank Office Paris Mike Jensen mikej@sn.apc.org

2. Lack of Fixed Lines - the Major Barrier - In 2004 there were about 25 million lines for the 800 million people in Africa. - In Sub Sahara outside South Africa, there were only about 4 million lines - 1 in 200 - 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

3. Sources: ESRI, GSM Association/Coversoft, ITU, Mike Jensen Teledensity in Africa http://www.idrc.ca/acacia

4. GSM Coverage Cost of calls are high, and data speeds low. Why so much better in Asia?

5. Need for International Fibre And National Backbones

6. Radio – the most widespread medium, but still few licenses Some countries have liberalised the sector and allowed some private sector radio & TV stations A few countries such as Mali, South Africa and Uganda, have issued notable numbers of community radio and non-profit licenses But outside of the capital cities, coverage is still usually limited to one or two state operated channels

7. Many external systemic factors: Electricity, Transport networks, Import duties, Education levels

8. Restrictive Regulatory Environment - The Key Barrier - State owned monopolies still dominate - Some foreign investment in monopolies in return for continued exclusivity - Limited introduction of competition - 1 or 2 additional 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 and other new technologies prohibited (VOIP, VSAT, WiFi etc)

9. Exploiting new technology developments Low cost Internet appliances – Thin clients, Mobile Phones & Handhelds Wireless - Local loop / WiFi/WiMax => Mesh networks Geo Satellites - Intelsat, RASCOM, PanamSat, Eutelsat, NewSkies New low cost VSAT systems Data Broadcasting - WorldSpace & DSTV Hybrid Systems  mixed technologies Using power grid infrastructure VOIP User Financed Infrastructure

10. 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

11. Increasing Demand Public access facilities – Telecentres, Cybercafes => Universal Service Objectives? Exploit User Financed Infrastructure in local loop 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)

12. - Accelerated liberalisation and expanded universal service goals - Support for Public Participation in Policy Development ==> - Integrated National Information & Communications Infrastructure (NICI) planning - 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 National Strategies

13. Capacity Building & Human Resource Development Training of National Regulators Centres of Excellence – e.g ESMT and AFRALTI 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

14. Other Considerations Develop a phased approach which priorises activities – infrastructure, connectivity of key decision makers in business and govt Exploit employment creation potential of outsourcing from the North Improve national collaboration of key actors Increase representation at global level

15. Key Barriers To Be Eliminated Restrictions on numbers of licenses for telecom operators, ISPs and broadcasters High fees and slow process for licensing Limitations on data-only private wireless and VSAT Excessive import duties on ICT equipment Limited skills and knowledge of options Lack of finance for small businesses

16. Actions Focus on two key areas: Open the markets Finance national/international backbones - set up a fund which has open markets as a condition for access to funds 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

17. Thank You mikej@sn.apc.org