management of usafs: interventions models and formats

Management of Universal Access Funds for Telecommunications Regulatory Board of Cameroon

Module 7: Intervention models and formats

7 – 9 February 2011

© Commonwealth Telecommunications Organisation

Non Financial Interventions by USAF

• Demand Aggregator– Even in unserved localities there is an unmet demand– Particularly the public sector need connectivity and can

afford market rates – If this demand is aggregated, an operator may find it

commercially viable to connect the locality

• Power Aggregator– Lack of power is a key impediment to network

rollout– Power is required by many others; hospitals, schools

etc– If the requirements are aggregated, a common

power facility can be built from which the network operator can draw power

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Access Gap Model

• The resources of USAFs are limited but the needs are enormous

• Effectiveness of a USAF will depend on how well it utilises its resources to address these needs

• For that it is imperative to focus the intervention strategies of the USAF on areas/services that provide the greatest benefit to the largest number of people

• Access Gap analysis provides an analytical framework to develop intervention strategies that has the highest impact

• The Model will help identify not only the geographical areas that need support but the types of services

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Access Gap Model

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UniversalService

Market Gap

High income households Low income households

Universal Access

Affordability Frontier (3d)

Market Efficiency Frontier (3s)

Sustainability Frontier (4s)

Access Gap

Current Penetration(1)

Demand

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100% of Communities100%

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UniversalService

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Universal Access

Affordability Frontier (3d)

Market Efficiency Frontier (3s)

Sustainability Frontier (4s)

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Access Gap Model

• Market Gap - where market conditions should be able to provide service on a cost-effective, commercially profitable basis

• Access Gap - areas where access cannot be provided entirely by market forces

• Market Efficiency Frontier - the theoretical boundary where commercial viability reaches its limit

• Sustainability Frontier – boundary between areas where services can become sustainable after some initial one-time subsidy, and those where supply and demand conditions cannot, at present, yield sustainable service without ongoing subsidies.

• The best start is the identification of existing “gaps” in rural ICT access, usage, applications, and ultimately, benefits for citizens

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Process of Access Gap Study

1 Data Collection: collect geographic and demographic data which define the structure of the country and its ICT markets;•Distribution of population centres by population and geographic size (sq. km);•Estimate of current degree (%) of availability of and usage of different networks/services within each geographic/population group: Fixed; Mobile; public access; internet etc •Indicators of demand potential for services, including public awareness, interest, and capacity to utilize these services;•Status of other basic infrastructure: roads, electricity, etc.;•Other market and economic factors, such as household income, employment, education, etc.

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2 Model Development: •A spreadsheet model to simulate and estimate the economic characteristics of the various ICT market segments•Broken down by geographic districts and population centers•Resulting in identifying market and access gaps for each major category of ICT service, by region•Calculate the approximate net subsidy cost to close the identified gaps

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3 Analysis of Market Conditions and Access Gaps: Using the model and data, the USAF conduct an in-depth analysis of the various ICT market segments in the country and find out•How effectively has the market penetrated and what are the opportunities for growth•Where, and how large, are the current gaps for services•To what extent are these gaps within the market efficiency frontier (market gap), and what factors are preventing commercial delivery of services in these locations?•Where are the true Access Gaps•How much subsidy is required to close the Gaps•To what degree can services become sustainable

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Access Gap Model – the CTO Approach

• Currently the CTO is carrying out an Access Gap study in Sierra Leone for the National Communications Commission

• CTO’s approach is to conduct the study on a Competency Transfer Basis by training the local staff to handle the model themselves

• It allows the USAF to update the model by themselves • Over a period of time the USAF will develop a competency

to keep the Access Gap analysis relevant to fast changing market conditions and to adopt strategies accordingly

• Thus assuring the effectiveness of the Universal Service/Access framework

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Access Gap Model – the CTO Approach

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Phase CTO Member/USAF

Data Collection

Support roleDevelop the data collection methodology Monitor progress and provide advice

Lead roleUse local personnel to collect primary data

Model Development

Lead roleCustomise the generic model to suit the specific country

Support roleProvide country-specific information for customisation

Analysis & Identification of Access Gap

Joint lead Operate the model to identify Gaps

Joint lead Feed the data in to the model

Training Lead role Train local staff to operate the model in future

Support roleProvide competent staff to be trained


Interventions Methodologies

RCDF

Allocation Smart subsidies /Reverse Auction

Identification of localities

Where service provision is unlikely to be provided by operators within the next 1-2 years without subsidies

Types of projects financed

- Telephony- Telecentres- Internet PoPs- Internet exchange points- Internet cafes- Public payphones-Content development-School Internet Access

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USPF

Allocation Reverse Auction

Competitive Bidding Process

Top-Down Process for some project initiations

Bottom-Up Process for some project initiations

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GIFEC

Allocation Competitive Bidding Process

Some Projects are Open Tender

Public-Private-Partnerships used

Requires Minimum Number of Bidders

Supports Initial Capital Investments and Start-Up Costs

Subject To Long-Term Sustainability Assessment

Types of projects financed -Rural Telecentres -Public Telephony-Internet PoP

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RCDF Areas of Focus

RCDF projects have been implemented in all districts of Uganda under

the following program areas:

• Internet Points of Presence (POP)• Public payphones• Research projects• Postal support projects• Multipurpose Community Tele-center (MCTs)• Schools ICT facilities• Health Care ICT facilities• Portals • Local governance enhancement projects • GSM Network Expansion projects

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ICT Training centers and Internet cafes

Pastoral Media ICT and Internet Café in Amuria district

• Separate @RCDF but present as combined on the ground

• Offer standard services(common packages training, internet/min,)

• Total number = 229

• In all viable small towns of Uganda

• Multiplier factor = 5 in 3 years

• Power + Internet reliability a critical factor

• Business acumen of implementers also a CSF

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Internet PoPs

MTN mast at Tororo town, Tororo district

• At all district towns except Kampala and Mukono (78)

• 400/100kbps

• CDMA/WiMax overlays on GSM networks

• Small number of optimal users

• Quality of Service often not satisfactory

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District web portals

The Mityana district web portal home page

• For all districts except Kampala and Masaka

• Includes a national web portal

• Format = districtname.go.ug

• Handed over to districts

• Some districts not fully appreciating the value of the portals

• Perceived too technical for some districts

• Include a translated version

• Districts like Lira & Rukungiri have even redesigned theirs

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Public Pay Phones

A Standard public pay phone at Oyarotonge, Pader district

• Two main types• 1- Standard type (Call only)

– Solar powered/grid powered– Card/Coin based

• 2- CICs ( Call and Receive)– Included n/w expansion to 154

underserved sub counties, with 60 sites– Solar powered/grid powered– Card/Coin based– Call termination support facilities(Bicycle,

notice board, etc)– Battery charging services– Etc included

A CIC in Kisozi, Kamwenge district

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Research

Research done so far

Demand driven

Provides guidance for rural ICT implementation

Results available to all

• A Profile of Uganda's Internet and ICT Usage

• Rural Socio Economic Networks and Mobile Cellular Telephones

• Electronic Library Study• Baseline Survey on Postal

Services in Uganda• Study on the Socio-Impact of

the ICT in Uganda/of RCDF Projects

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Multi-Purpose Communities Tele-centres

Alliance High School MCT in Soroti district

• Modified from the standard format (Nakaseke type)

• Not a popular model

• Has sustainability issues

• Suited for the very remote places (Bottom up roll out)

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School ICT Laboratories

ICT Lab architectural designs• Scope= Govt S.S. = 1,000, Pvt =

4,000; Pri sch = 12,000

• Baseline = 1% covered

RCDF

• 206 ICT lab covered

• Govt Sec sch a priority

• Two models used– 1Solar powered (10 computers)

– Standard grid powered (40 w/stations)

• High risk of burglary

• Schools have fully embraced

• Still a politically sensitive project

Standard ICT Lab

Solar powered ICT Lab

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Sample School ICT Laboratories

Bubulo Girls ICT lab in Manafwa district

Pilikington College, Kamuli district

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Health Facilities ICT Projects

• E-health = HMIS + Telemedicine

• (HMIS = MoH + DMO)

• (Telemedicine = Hospitals+ referrals)

• Solar powered

• Three phased approach

• Isingiro district pilot for full scale Telemedicine

• Main constraint = broad band and medical staff

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BPO - Call Centres

Architectural arrangementOne pilot call centreplanned

• 50 Agents• 200 Seats

Designed around 4servers

• Communication Server• ERP Application Server• Data Base Server• Gateway Server

Email Server

Quality & Productivity Checkers

Power

Dedicated Backup

UPS

* suitable interface devices depending upon the services

Internet Leased Line 128Kbps

DRS

Firewall

Data Centre

IT Infra-structure

PABX *

Phone Equipments *

CT Infra-structure

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Content Development - Emerging

Determination of acceleration due to gravity ,g, using a spring employing virtual tools

A focus for RCDF Policy II

Areas of focus:

• Science school virtual laboratories

• School resource sharing• Agricultural content• Medical/medicinal content

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USAASA Mandate

• For South Africans:– A need exists to ensure equality in access to the ICT

services by all people in SA including the Internet for education and sustainable livelihood purposes

– A Sustainable rural upliftment relies on the infrastructure underpinning any business – ICT is a key success factor

• For Government:– Must show tangible or radically restructure the service

delivery infrastructure– Economic growth and socio-economic development

including educational goals will be highly dependent on ICT infrastructure across the country


USAASA Interventions and Areas of Focus

Community Access Centres• Over 12500 community members connected through the Thusong Service Centre

Programme,• Through the Thusong Service Centre Programme – 8 new centres deployed• Handover of access centre strategy completed• Assessment of 31 business plans on ownership currently being finalised

Cyberlabs• A total of 68 schools were connected - 2720 computers and related equipment supplied

giving access to over 40 000 learners and 700 educators • A total of 33 schools were rehabilitated (this include installation of new ICT infrastructure

such as computers, photocopiers, internet, etc)• Payment of subsidy to Mindset Network to rollout equipment and training in 15 schools


Further Education and Training Colleges• 18 FET Colleges subsidised at R150 000 (internet

connectivity) for a total of R2,5m• Monitoring and Evaluation of the project as part of

assessing future subsidy is continuing.

Training• 100 Access Centre personnel trained on business

management, entrepreneurship and advanced technical computer skills

• 50 Access Centre personnel trained to assist in the accreditation of access centres as recognised by ISETT SETA



Universal Service Obligations

• 50% E-rate subsidy payments to 344 for internet connectivity to schools were made

• Reviewed the current licence obligations conducted in collaboration with the Department of Communications , ICASA and the MDDA.

Under Serviced Area Licences

• Subsided under –serviced area licences.



GIFEC Mandate, Interventions and Areas of Focus

• GIFEC is to provide financial resources for the establishment of universal service and access for all communities

• And to facilitate the provision of basic telephony, internet service, multimedia service broadband and broadcasting to these communities

04/08/23

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GIFEC is implementing the following projects under the UAECP

• Common telecommunications facility project.• Community information centers project• The last mile initiative project• The schools connectivity project• Rural payphone project• Easy business centres


GIFEC Interventions and Areas of Focus

PROJECT PLAN FOR 2010 PLAN FOR 2012

CTF 20 90

LMI 5 12

SCP 80 200

LIBRARY PROJECT 20 83

POST OFFICE CON 20 80

EASY BUSINESS 40 100

RURAL PAY PHONES

ICT INCLUSIVENESS

2,500

5000 PERSONS TRAINED IN BASIC ICT SKILLS

15,000

15,000 PERSONS TRAINED

04/08/23

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USPF Mandate, Interventions and Areas of Focus

• USPF was formed under the Nigerian Communications Commission (NCC) by telecom Act 2003 to facilitate rapid achievement of national policy goals for universal access, coverage and service to telecommunications information and communications technologies (ICTs). The agency began operations in 2006.

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USFP Interventions and Areas of Focus

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management of usafs: interventions models and formats

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