wsis five years on- asia and the pacific

8/7/2019 WSIS five years on- Asia and the Pacific

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DMR A2008-000232 TP 190908 DP 190908 DI 220908 CICT_1E

UNITED NATIONS

ECONOMIC

AND

SOCIAL COUNCIL

GENERAL

E/ESCAP/CICT/125 August 2008

ORIGINAL: ENGLISH

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

Committee on Information and Communications Technology

First session19-21 November 2008Bangkok

WORLD SUMMIT ON THE INFORMATION SOCIETY FIVE YEARS ON:INFORMATION AND COMMUNICATIONS TECHNOLOGY

FOR INCLUSIVE DEVELOPMENT

(Item 4 of the provisional agenda)

Note by the secretariat

SUMMARY

The Asia-Pacific region has been facing challenges in fostering an inclusive- and development-oriented

information society, as envisioned in the outcome documents of the World Summit on the Information Society.

Some of the key challenges highlighted in the present document are: (a) regional trends in the development

of information and communications technology (ICT), including space-based technology and (b) key issues

earmarked for the consideration of the Committee in accordance with Commission resolution 64/1 of 30 April

2008.

In particular, a review of regional efforts towards the information society has been made, with specific

emphasis on issues related to ICT access and connectivity in under-serviced rural areas and Pacific island

countries, by summarizing successful initiatives on community e-centres to reach the under-served and the

ESCAP findings on Pacific connectivity. The secretariat identifies key priorities in promoting the expansion of

ICT access for inclusive development in the region, including strategic partnerships within the United Nations

system and with the private sector.

The Committee may wish to provide guidance on the secretariats future strategic direction in the area of

ICT for socio-economic development in the Asia-Pacific region, including possible outputs that could be

reflected in the programme of work for the biennium 2010-2011.


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- i -

CONTENTSPage

Introduction ...................................................................................................................................... 1

I. ICT ACCESS IN ASIA AND THE PACIFIC......................................................................... 2

II. WORLD SUMMIT ON THE INFORMATION SOCIETY: FIVE YEARSAFTER THE GENEVA PHASE ............................................................................................. 7

III. EXPANDING ICT ACCESS IN ASIA AND THE PACIFIC................................................. 10

A. Community e-centres........................................................................................................ 13

B. Pacific connectivity .......................................................................................................... 14

IV. ISSUES FOR CONSIDERATION .......................................................................................... 17

List of figures

1. Fixed telephone lines per 100 population for major world regions, index of change,1995-2007 ................................................................................................................................ 3

2. Mobile phone subscribers in selected Asian and Pacific country/area groupings,2000-2007 ................................................................................................................................ 4

3. Internet users per 100 population in Asia and the Pacific, 2001 and 2007 .............................. 5

4. Number of broadband users in selected country/area groupings, 2004 and 2007.................... 6

List of boxes

1. Geneva Plan of Action of the World Summit on the Information Society: objectives,goals and targets....................................................................................................................... 8

2. Malaysias Universal Service Provision Fund ......................................................................... 9

3. e-Sri Lanka............................................................................................................................... 11

4. Case study of a community e-centre in Panauti, Nepal ........................................................... 13


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E/ESCAP/CICT/1Page 1

Introduction

1. From 1998 to 2008, information and communications technology (ICT) 1 has significantly

transformed the Asia-Pacific region. The potential of ICT for economic growth and reducing poverty

in the region has increased considerably. In a short span of time, the Internet has become an integralpart of the Asian economy, while mobile communication has become the primary mode of

communication in the region.

2. This expansion of ICT into various spheres has been driven partly by the fact that Asia and

the Pacific have developed remarkable ICT resources. Some countries are recognized as world leaders

in terms of technological resources, be they research and development capabilities, innovation and

production or commercialization of ICT products and services. Also, some States have been very

successful in attracting business process outsourcing and foreign direct investment and are homes to

vibrant and dynamic ICT industries.

3. According to the ESCAP Economic and Social Survey of Asia and the Pacific 2008 , 2 in 2007

the region enjoyed the fastest economic growth in a decade, and growth is expected to continue at a

lower, but still robust, rate in coming years. In addition, several Asia-Pacific countries have

accumulated large foreign reserves. 3

4. However, disparities between more advanced economies and least developed countries,

landlocked developing countries and small island developing States, in terms of ICT penetration, are

not being reduced in the way envisaged by proponents of an inclusive and development-oriented

information society. This phenomenon the so-called digital divide exists not only between

developed and developing countries, but also within countries, where certain groups, such as women,

the poor and people who live in rural areas or with disabilities, among others, may be marginalized.

The worldwide recognition of this inequitable situation, along with the need to better understand the

widespread effects of ICT on society, led to the World Summit on the Information Society, held in

Geneva in 2003 and Tunis in 2005.

5. The Summit crafted a vision of a future information society and identified a series of activities and commitments 4 necessary to assess the impacts of ICT and to reduce the divide. To that

end, at the regional level, the ESCAP secretariat has been assisting member States in their

implementation of the outcomes of the Summit, through the Regional Action Plan towards the

Information Society in Asia and the Pacific (ST/ESCAP/2415), by initiating various activities to

1 The term information and communications technology, as used in the present document, should be understood toinclude space-based technology, as appropriate.

2 United Nations publication, Sales No. E.08.II.F.7.3 According to the ESCAP Economic and Social Survey of Asia and the Pacific 2008 , developing economies in the

Asia-Pacific region had accumulated $3.4 trillion in foreign reserves by October 2007, up from $2.7 trillion at the end of 2006.

4 The Declaration of Principles and the Geneva Plan of Action (A/C.2/59/3, annex) and the Tunis Plan of Action (seeA/60/687).


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promote and build ICT capacities, to facilitate policy debate and to create an enabling policy

environment for ICT for development. Five years has passed since the first phase of the Summit

began. Considering that many development projects have a two- or three-year lifespan, 2008 is an

appropriate time to assess the progress and gauge the impact of initiatives at the regional level and tolearn the lessons necessary to guide future activities, especially as 2008 marks the halfway point to the

2015 target date of the Millennium Development Goals.

6. The secretariat is mindful that a series of review initiatives have recently been undertaken by

various international and regional organizations to mark the fifth anniversary of the Geneva phase,

take stock of relevant activities and measure the progress made. To supplement these analyses, the

present document describes achievements in terms of ICT for development the ICT indicators of the

Millennium Development Goals, which are at the heart of the goals and targets of the Summit. The

document presents findings being compiled by the secretariat for the forthcoming ESCAP Statistical

Yearbook for Asia and the Pacific 2008 , which tracks progress towards the Goals, including

achievements associated with the ICT indicators. The document then identifies gaps and proposes

responses to reduce the disparities in ICT access, for consideration by member States.

I. ICT ACCESS IN ASIA AND THE PACIFIC

7. Mention of firm names, commercial products and specific technologies does not imply the

endorsement of the United Nations.

8. Since the Geneva phase of the World Summit on the Information Society was held in 2003,

the ICT landscape of the Asia-Pacific region has undergone significant change. The region, which is

home to two thirds of the worlds population, now hosts over half of the Internet and mobile

connectivity in the world. Should current trends continue, the region could account for two thirds of

global mobile phone users within a decade.

9. This remarkable achievement has been driven by national ICT policies, many formulated or

enhanced in response to the World Summit on the Information Society. Following the Regional

Action Plan, many Asian countries renewed strategic ICT policies to establish enabling regulatory

environments, which facilitated progress in liberalization, privatization and competitive practices in

ICT.

10. Countries in the region have combined a series of ICT policy instruments for developing the

information society. Telecommunications, mobile and Internet policies address key elements such as

universal service, interconnection, the unbundling of local loops, licensing, numbering schemes,

portability, price cap regimes, roaming conditions, significant market power, spectrum allocation, and

Internet service providers, as well as cyberspace regulations, such as spam controls, information

security and digital rights management.


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11. ICT policy has also been influenced by multilateral regulatory frameworks, including the

World Trade Organization Agreement on Basic Telecommunications, Information Technology

Agreement and Financial Services Agreement. In addition, some countries in the region formed

subregional initiatives for e-strategy and ICT policy driven by the Association of Southeast AsianNations, the Pacific Islands Forum Secretariat, the South Asian Association for Regional Cooperation

and the Shanghai Cooperation Organization, among others.

12. As a result, ICT policy in the region as a whole has led to significant expansion of

connectivity. Within that context, three main aspects of connectivity can be highlighted. First, mobile

phone subscriptions have surpassed those of fixed-line systems, as shown by the proportion of mobile

phone lines, which now accounts for 80 per cent of total phone lines, up from 30 per cent in 2003.

Second, fixed-line connectivity has shown sluggish expansion, from 13 lines per 100 people in 2003

to 17 per 100 people in 2007. Third, broadband networking is set to become an important platform;

while the average penetration rate in the ESCAP region is still low, at 5 per cent in 2007, such

networking is growing rapidly in some countries of the region.

13. The Asia-Pacific region has experienced phenomenal ICT development compared with other

regions. At the same time, the number of fixed telephone lines showed a decline for the first time

among ESCAP member States (figure 1). This reflects the rapid growth in mobile subscriptions

(figure 2).

Figure 1. Fixed telephone lines per 100 population for major world regions, index of change,1995-2007

Source : ESCAP calculations based on International Telecommunication Union data.


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Figure 2. Mobile phone subscribers in selected Asian and Pacific country/area groupings,2000-2007


14. From an economic policy perspective, this aspect can be explained as follows. First, due to

lack of investment, the traditional fixed-line infrastructure has not significantly expanded in lower-

income countries. Rather, gaps have been filled through significant investment in mobile networks in

urban areas. Second, in middle-income countries, investment in mobile systems has outpaced

investment in fixed-line systems. Finally, the traditional fixed-line network shrank somewhat in high-

income countries, with migration into mobile and broadband networks. In these countries, investmentsare made in both mobile and broadband infrastructures.

15. Stark variations in Internet usage and growth continue to exist between more advanced and

less advanced countries. Overall, between 2001 and 2007 the region witnessed phenomenal growth in

the number of Internet subscribers. The number of countries with fewer than 10 Internet users per 100

population decreased from 43 in 2001 to 26 in 2007 (figure 3). However, the disparity between high-

income countries and the last 20 countries is wider than for fixed and mobile phones.

16. Numbers of Internet users have been observed to increase in connection with the expansion of

fixed-line systems. In low-income and middle-income countries, which have limited broadband

infrastructure, Internet connectivity is through the existing copper-based fixed lines and has a


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relatively greater component of shared accounts through Internet cafes and community e-centres. In

such cases, Internet use is almost constrained by the availability of fixed lines. In contrast, high-

income countries and economic centres within middle-income countries are beginning a migration to

fibre optics, which explains the diminishing use of traditional fixed lines, and are expandingbroadband connectivity, which currently reaches 25 per cent of all Internet subscribers.

Figure 3. Internet users per 100 population in Asia and the Pacific, 2001 and 2007



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17. In economies such as China and India, new investment in fixed-line systems is increasingly

driven by broadband, especially by fibre-to-the-home or fibre-to-the premises. In market growth terms,

the opportunity cost of investing in next generation networks 5 is deemed higher than that of existing

copper line-based technologies.18. Disparities between high-income and low income countries are striking in regard to the

uptake of broadband technologies. Although high-income economies in the region are leaders in the

usage and diffusion of various technologies, the ESCAP region as a whole is still lagging (figure 4).

Figure 4. Number of broadband users in selected country/area groupings, 2004 and 2007


5 A next generation network (NGN) is an Internet Protocolbased network that enables a wide range of services (suchas voice, and data) over a single network. This forces traditional telecom operators to migrate from a traditional telecommodel (users are billed for what they consume) to an Internet model (users are billed a flat rate) and to adopt a new businessmodel. Customers, particularly small and medium-sized enterprises, benefit the most, by getting a wider range of options forcommunication at a cheaper rate. NGNs presents an opportunity for developing countries lacking current ICT infrastructureto leapfrog directly to broadband and mobile NGN: almost paradoxically, a country with poor ICT infrastructure might beable to benefit more and faster from an NGN, provided that good regulatory environments and financing measures are inplace .


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19. In order to make significant progress towards the Millennium Development Goals and the

goals of the World Summit on the Information Society, expanding connectivity and ICT access will

remain one of the main priorities in Asia and the Pacific. With such enhanced access, especially in

least developed countries, landlocked developing countries and small island developing States,various ICT applications will be able to deliver the developmental gains envisaged in the outcome

documents of the Summit in a more systematic and sustainable manner.

II. WORLD SUMMIT ON THE INFORMATION SOCIETY: FIVE YEARS AFTERTHE GENEVA PHASE

20. At the World Summit on the Information Society, countries focused their deliberations on the

use of ICT for socio-economic development and achieving the Millennium Development Goals. In

defining objectives, goals and targets, the Geneva Plan of Action specified a number of prioritiesrelated to connectivity and access, as indicated in box 1. In order to systematically take stock of

progress and achievements made towards the targets of the Summit, a series of initiatives were

undertaken recently by international agencies, such as the International Telecommunication Union

(ITU), the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the

United Nations Development Programme (UNDP), which have been leading the follow-up activities. 6

21. The latest results of this stocktaking exercise, which began in 2004, are presented in an ITU

report entitled Report on the World Summit on the Information Society Stocktaking 2008 . A database

managed by ITU collects information on various initiatives spearheaded and implemented by

Governments, international agencies and other players in the field of ICT for development, including

ICT human resource development. A cluster of events related to the Summit were held in Geneva in

May 2008. 7

22. At the global level, the follow-up to the World Summit on the Information Society is

coordinated by the Economic and Social Council through the Commission on Science and

Technology for Development. A report of the Secretary-General on progress made in the

implementation of and follow-up to the outcomes of the World Summit on the Information Society atthe regional and international levels (A/63/72-E/2008/48) was submitted to the Commission at its

eleventh session, held in Geneva from 26 to 30 May 2008. 8

23. As part of the stocktaking exercise, ITU collected information on the implementation

mechanisms established at the national level in 2007. 9 Of the ESCAP member States, nine reported

6 For a list of ITU initiatives see www.itu.int/wsis/follow-up/index.html ; for UNESCO initiatives see http://portal.unesco.org/ci/en/ev.php-URL_ID=1543&URL_DO=DO_TOPIC&URL_SECTION=201.html.

7 International Telecommunication Union, Report on the World Summit on the Information Society Stocking 2008 (Geneva, 2008) (available online at www.itu.int/wsis/stocking/docs/2008/WSIS-Stocking2008-e.pdf ). The database isavailable at www.itu.int/wsis/stocking/scripts/search.asp . The list of related events is available at www.itu.int/wsis/ implementation.

8 See Official Records of the Economic and Social Council, 2008, Supplement No. 16 (E/2008/31).9 National reporting on WSIS implementation, available at www.itu.int/wisd/2007.


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having established national implementation mechanisms. 10 Most of these countries concluded that

connectivity, ICT access and ICT human resource development remain their major priorities.

Box 1

Geneva Plan of Action of the World Summit on the Information Society: objectives, goals andtargets

Based on internationally agreed development goals, including those in the Millennium

Declaration, which are premised on international cooperation, indicative targets may serve as global

references for improving connectivity and access in the use of ICTs in promoting the objectives of the

Plan of Action, to be achieved by 2015. These targets may be taken into account in the establishment

of the national targets, considering the different national circumstances:

(a) to connect villages with ICTs and establish community access points;

(b) to connect universities, colleges, secondary schools and primary schools with ICTs;

(c) to connect scientific and research centres with ICTs;

(d) to connect public libraries, cultural centres, museums, post offices and archives with ICTs;

(e) to connect health centres and hospitals with ICTs;

(f) to connect all local and central government departments and establish websites and e-mail

addresses;

(g) to adapt all primary and secondary school curricula to meet the challenges of the information

society, taking into account national circumstances;

(h) to ensure that all of the world's population have access to television and radio services;

(i) to encourage the development of content and to put in place technical conditions in order to

facilitate the presence and use of all world languages on the Internet;

(j) to ensure that more than half the worlds inhabitants have access to ICTs within their reach.

Source : A/C.2/59/3, Annex, Section B, para. 6.

24. To achieve the goals and targets of the World Summit on the Information Society as well as

internationally agreed development goals, countries in the region have made various efforts, in areas

such as improving connectivity and expanding access to ICT. Some countries have established policy

instruments for universal service obligations, including the extension of services to rural and remote

areas through plans that rely only minimally, if at all, on subsidies, as well as the application of

10 The countries are: Azerbaijan, Bhutan, Indonesia, Japan, Mongolia, Philippines, Thailand, Turkey and Viet Nam.


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reduced customs duty on equipment imported by telecommunications service providers to offer

services to the rural areas, among others. 11

25. Several countries have established special rural telecommunication development funds to help

underwrite their universal service obligations (see box 2). For instance, in India a 5 per cent universallevy on adjusted gross revenue has been imposed on all telecommunications operators in order to

compensate less-viable rural-remote telecom operations and finance investment in such areas.

Box 2

Malaysias Universal Service Provision Fund

The Universal Service Provision Fund (USP Fund) was initiated to provide financing for the

establishment of telecommunication facilities in rural areas identified for USP; major industry players

responsible for USP have already received contributions. The fund aims to ensure an equitable distributionand access to ICT infrastructure in rural and less developed areas. The rollout of the communication

services in designated areas is financed by the USP Fund, and all licensed service providers in Malaysia

must contribute.

According to the Universal Service Provision Annual Report 2006 of Malaysia, a a total of

approximately 800 million Malaysian ringgit ($ 245 million) was collected for the USP Fund in 2006. The

funds made available through the fund contributed to the expansion of connectivity and ICT access, by

facilitating Internet access to libraries and the establishment of USP Communication Centres in remote

and rural areas of the country.

Source : Collection of Cases of Financing ICT for Development in Asia and the Pacific (United Nations publication, Sales No.E.05.II.F.18), available online at www.unescap.org/ publications/detail.asp?id=1050 .

a See www.skmm.gov.my/what_we_do/ysp/pdf/USP06.pdf.

26. Direct government ICT policies have promoted ICT use for socio-economic development in a

number of cases in the region. Several newer initiatives have been implemented within the context of

World Summit on the Information Society. The rapid expansion of mobile phones into rural and

remote areas in the region means that some communication needs among previously unconnected

people are being met. However, development gains arising from ICT have not materialized as fully as

expected, due to the limited telecommunications infrastructure and access to ICT among least

developed countries, landlocked developing countries and small island developing States. This

indicates that ICT for development applications, such as e-health, e-education and e-governments, for

poverty reduction and socio-economic benefit in remote and rural areas, especially in countries with

special needs, should be designed and implemented taking such challenges into consideration.

11 For more information on relevant financial mechanisms and policy instruments, see the ESCAP publication Best Practices in Financial Mechanisms for ICT for Development in Asia and the Pacific available at www.unescap.org/ publications/detail.asp?id=1198.


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III. EXPANDING ICT ACCESS IN ASIA AND THE PACIFIC

27. The challenges and opportunities involved in expanding ICT infrastructure vary among

subregions. ASEAN countries have pursued the creation of a common marketplace of half a billion

people for ICT products and services. To enhance its competitiveness, the subregion pursuesintegration of the ICT sector. This calls for a strong commitment from ASEAN member States to

narrow their internal digital divides. An integrated ASEAN ICT sector requires integrated policies

and regulations on the use of ICT, a subregional physical infrastructure that includes adequate Internet

connectivity, a pool of skilled ICT professionals and an integrated ICT labour market.

28. Similarly, SAARC countries have acknowledged that the changing technological scenario

requires new skills to compete in the world market. Home to 23 per cent of the worlds population,

but only about 6 per cent of its Internet users and 8 per cent of its mobile subscribers, the SAARC

subregion presents immense market growth opportunities. Bangladesh, India and Pakistan, for

example, are amongst the worlds top countries in terms of annual growth of mobile subscribers.

Players in SAARC countries have also established several good practices on community e-centres,

which provide shared ICT access as well as services that support the achievement of development

goals.

29. Countries in East and North-East Asia have experienced tremendous growth in their ICT

infrastructure. The subregion continues to dominate the top spots in all broadband density rankings.

Broadband subscriber growth continues to soar, thanks to competitive pressure and the push of policymakers. It is estimated that the number of broadband Internet subscriptions worldwide had

reached about 280 million by the end of 2006; one third of these came from China, Japan and the

Republic of Korea. Policies and programmes must promote further innovation if the subregion is to

remain a leader in ICT development.

30. ICT infrastructure has developed rapidly in some Central Asian countries as well. The

numbers of mobile subscribers per 100 population in Azerbaijan and Kazakhstan have grown steadily

and are now higher than the ESCAP average. However, further improvements in ICT connectivity in

the subregion are needed to overcome unique challenges, such as the digital isolation of landlocked

countries, difficult terrain and dispersed populations. The development of a subregional ICT

infrastructure, with broadband networks that connect countries to each other and to the world, is a

unique opportunity for transnational cooperation.

31. Improving connectivity infrastructure, services and benefits is also a challenge for Pacific

island States. Of some 500 populated Pacific islands, about half lack telecommunications access;

several islands still rely on two-way radio for connectivity. There is an urgent need to connect Pacific

islands with affordable ICT. To achieve this objective, innovative institutional and financialarrangements should be developed through closer cooperation among Pacific States and with other

stakeholders in this arena.


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32. The construction and improvement of national and subregional ICT infrastructures present

challenges that the market is unlikely to solve unaided. Governments may take leading roles as

coordinators, policy and regulatory reformers, adopters and demand stimulators, while also forming

partnerships with the private sector, civil society, and regional and international institutions (see box 3for an example of a progressive and comprehensive ICT for development programme: e-Sri Lanka).

33. ICT policies and programmes should aim to stimulate sustainable and environmentally

friendly growth, make markets more efficient, improve social inclusion and facilitate political

involvement. They should consider telecommunication reforms, the expansion of the physical

infrastructure, the regulatory environment and legal framework, public-private partnerships and

universal service, and should encourage pilot projects with replication in mind. Countries should keep

ICT policies flexible enough to adapt to the changing technology environment and shifting global

markets and trade patterns. Such policies should also aim to reduce inequalities and take advantage of

digital opportunities afforded by globalization.

Box 3

e-Sri Lanka

Launched in 2003 with financial and technical support from the World Bank, e-Sri Lanka

uses ICT for economic development, poverty reduction and improvement of the quality of life

of the people. a The initiative comprises six main programmes (a) re-engineering government, (b)

information infrastructure, (c) ICT investment and private sector development, (d) e-Society, (e) ICThuman resources capacity development, and (f) ICT policy, leadership and institutional development.

It served as a model in designing other World Bank assisted programmes, such as e-Bharat (in India),

e-Brazil, e-Ghana, e-Pakistan and e-Rwanda. b

Coordinating the implementation of the programme is the Information and Communication

Technology Agency (ICTA) of Sri Lanka. c ICTA is the countrys executive ICT agency, created as a

wholly government-owed company under Section 6 of the Information and Communication

Technology Act, No. 27 of 2003. d With a flexible staffing policy and organizational structure, the

newly created company was able to draw talent from not only the public sector but also civil society,

the private sector, and academia, facilitating a broader response to the dynamic ICT environment and

the populations growing need for ICT.

A key condition for successful ICT policy and programme implementation is political

commitment from top-level authorities. e The ICTA Board of Directors is responsible to the

Parliament; the chairman of the Agency reports directly to the secretary to the president. This direct,

high-level communication has helped raise the ICT profile within the government and in the eye of

various stakeholders, and has established the credibility of the new agency. It also facilitates thecoordination of efforts to reengineer the Government through various e-government projects.


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Another notable aspect of the e-Sri Lanka programme is its e-Society Fund, which helps support

local innovations and empower communities in order to establish viable ICT initiatives in rural areas. f

The fund provides small grants the most vulnerable groups through its Community Assistance

Programme and Partnership Assistance Programme. The programmes focus on building social capitaland ensuring that the needs and aspirations of the rural poor, women and displaced persons are taken

into account. To maximize the success of the Community Assistance Programme, calls for

applications are preceded by awareness-raising campaigns and community capacity development is

made available to applicants, as representatives of poor communities might not otherwise have the

capacity to apply, manage and monitor ICT initiatives. In order to ensure ownership, grants under that

programme requires a 25 per cent matching contribution from the community.

By the end of 2006, 18 months into the operation of the fund, 64 projects had been initiated under

the Community Assistance Programme (out of 190 applications) and eight under the Partnership

Assistance Programme (out of 247 applications). Demand for grants has been increasing, due to

media exposure of the programme and the engagement of non-governmental organizations as process

consultants. Most applications have focused on setting up telecentres.

Early in the implementation of the Fund, the theme of promoting indigenous knowledge attracted

unexpected attention from communities, which applied for assistance to document folklore, artifacts

and traditional medicines, with a view to attracting tourists. Other communities applied for assistance

to develop websites to promote their local produce and assist rural entrepreneurs in marketing. Oneproject aimed at networking 20 rural farming communities to coordinate the prices of local produce

and exchange information on pests and diseases. Under the Partnership Assistance Programme, two

projects were approved to assist people with disabilities. The other projects focused on combating

violence against women and addressing the special information needs of women suffering from abuse

in conflict areas. One project developed a trilingual radio disaster-warning system.

One successful project which is being scaled up and replicated in other parts of the country is

e-Village, g based on the experience of Mahavilachchiya, one of the poorest villages. The project was

started by a teacher who trained youth in ICT. These youth then created employment opportunities by

marketing the local products. Based on the evaluation, the ICTA decided to replicate the initiative in

300 villages throughout the country.

a See www.icta.lk/Insidepages/e-srilanka/e-srilanka.asp .b Nagy K. Hanna, Transforming Government and Empowering Communities: The Sri Lankan Experience with

e-Development (World Bank, 2008).c See www.icta.lk/DefaultEnglish.asp .d Information and Communication Technology Agency, Milestones 2006: Annual Report.e National Information and Communication Infrastructure (NICI) e-Strategies: Best Practices and Lessons Learnt

(United Nations publication, Sales No. E.08.II.K.1). available at www.uneca.org/AISI/nici/Documents/NICI-Book.pdf .f See http://icta.lk/insidepages/programmes/e-Society_Development_initiative.asp.g See www.icta.lk/Insidepages/programmes/e-Village.asp.


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A. Community e-centres

34. One mechanism being implemented by member States to expand ICT access in remote and

rural areas is the establishment of community e-centres (CeCs), also known as community

information centres or telecentres. Despite high expectations, there have been debates on theirsustainability and the role that they play in accelerating socio-economic development in remote and

rural areas. Although mobile phones have been spreading rapidly in many previously unconnected

areas, another mechanism for sustainable and versatile data communication will be required in order

to fulfill the information needs of people and make significant progress towards the Millennium

Development Goals and other socio-economic development goals.

35. Despite reports of CeC successes in Asia and the Pacific, there are several challenges to

understand and overcome. One involves ensuring financial, technological and social sustainability,

especially in remote and rural areas. An integrated policy and programmatic approach would be

required to address the needs of a number of independent CeC initiatives in the region whose

resources and usage could be further enhanced. Box 4 presents a case study of a telecentre in Nepal.

36. Another challenge is scalability. According to ESCAP estimates, there are about 13,000 CeCs

in the Asia-Pacific region. To provide one CeC per 5,000 rural people in the region, it would be

necessary to establish more than 450,000 new centres. The public-private partnership that is being

implemented in India to establish 100,000 common services centres is an innovative initiative that

addresses the challenge of scalability. Countries can gain leverage from this and other experiences todevelop and strengthen their own rural ICT programmes.

37. CeCs have been one of the recurrent themes of international discourse within the wider

context of ICT for development. Despite efforts by various researchers and ICT-for-development

practitioners to document and analyse success and challenges, the actual effectiveness and efficiency

of grass-roots ICT projects are largely unknown. The role of CeCs could be further examined in the

context of expediting the process of expanding connectivity and ICT access in unconnected and

underserviced remote and rural areas at the regional level, drawing on the experience of member

States which promote a comprehensive and integrated policy and programmatic approach.

Box 4

Case study of a community e-centre in Panauti, Nepal

ESCAP selected a telecentre in Panauti, Nepal as one of the case studies in the publication

entitled Collection of Cases of Financing ICT for Development in Asia and the Pacific .a ESCAP has

been undertaking a follow-up study on the performance of the centre, and the summary of the

preliminary findings is described below.

The telecentre featured in this case study, formally known as a rural information centre, is an

organization operated by the local user communities. Located about 30 kilometres east of Kathmandu,


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it was established in June 2004 with support from the High-Level Commission on Information

Technology. In the above mentioned ESCAP publication, the secretariat of ESCAP highlighted the

innovative financial mechanisms proposed for the operation of such centres in the country, including

an information technology bond and a venture capital fund based on a public-private partnershipmodel.

The follow-up study was undertaken to identify the successes and challenges the centre has

experienced since the publication was compiled in 2005. The preliminary findings describe the

difficulties the centre has been facing in the area of sustainability. Previously, the local users

committee was responsible for the operation of the centre. The Management Board, with the

Executive officer of the Panauti Municipality as chairman, and the Working Committee have since

been established and currently run the centre. In terms of the facilities, the follow-up study found that

only computers are in operation, while other equipment, such as a photocopy machine and a fax

machine, need repair. One of the major challenges is the lack of Internet connectivity. Due to the

limited income, the centre has been unable to pay for Internet services, and as a result, the number of

users has fallen dramatically. Accordingly, the membership of the centre is decreasing. Despite the

difficulties, the centre has continued to provide services, including computer and other vocational

training, to a wider range of users, such as government officials, students, housewives, non-

governmental organization staff and farmers.

The technological, social and financial sustainability of telecentres, or CeCs, has been a persistentissue for the whole region and is not unique to this centre or Nepal. This case shows the importance of

expanded ICT access among rural areas and highlights the need for a more comprehensive and

consistent policy and a programmatic approach in expanding ICT access and providing information

and services.

a See www.unescap.org/icstd/pubs/ict.pdf.

B. Pacific connectivity

38. Connectivity and ICT access among the small Island developing States are limited, compared

with other subregions. Growth has been considerably slower. In this context, the Special Body on

Pacific Island Developing Countries at its ninth session recommended, among other things, that the

possible setting up and operation of improved dedicated satellite communication infrastructure for

Pacific small island developing States be considered (see E/ESCAP/1373, para. 31) in the context of

the follow-up to the Mauritius Strategy for the Further Implementation of the Programme of Action

for the Sustainable Development of Small Island Developing States. 12

12 Report of the International Meeting to Review the Implementation of the Programme of Action for the SustainableDevelopment of Small Island Developing States, Port Louis, Mauritius, 10-14 January 2005 (United Nations publication,Sales No. E.05.II.A.4 and corrigendum), chap. I, resolution 1, annex II.


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39. Currently, the Pacific is served mainly by communications satellites, mostly evolved from

1970s approaches using analogue systems designed for telephone and broadcasting. Opportunities for

improved cost-effective, higher-bandwidth services exist, in the form of IP-based systems pioneered

in Asia, Australia and North America by many commercial telecommunications satellite operators.But before such potential can be tapped, the questions of how to economize the construction, launch

and operations of such new technology, and how to generate enough revenue to successfully

implement such an approach for the Pacific, must be answered. The study and subsequent discussions

offered some suggestions, including proposals in which satellites are owned or operated by Pacific

institutions, or where user consortia lease traditional satellite capacity on improved terms.

40. Undersea cables cross many parts of the Pacific but currently serve few Pacific economies.

Fortunately, this is about to change with several planned initiatives, which have the potential to

connect most population centres in major Pacific island States by further expanding terrestrial

networks. However, this process has demonstrated that Pacific leaders might benefit from resources to

support decision-making and improve their collective negotiating ability, with a view to obtaining the

best possible results from such cable opportunities.

41. Terrestrial wireless is the fastest-growing connectivity modality in many developing countries

around the world. Though usage rates are generally low in the Pacific, often attributed to non-

competitive rates and services (or blamed on claims that economies are too small, despite the

successful rollout of services on many small island economies elsewhere), usage has grown

significantly in a few Pacific economies that have reformed their mobile telecommunications

regulatory structures. For example, one company, which played a major role in newly competitive

mobile communications in the Caribbean a few years ago, has demonstrated its interest in serving

Pacific economies. Terrestrial wireless has also been used for networking in such economies as

Tonga and Niue.

42. Based partly on a study undertaken for the Pacific Plan for Strengthening Regional

Cooperation and Integration,13

ESCAP data suggest that a competitive, less constrained marketplacecould save customers an estimated $66 million to $80 million annually. Over the 10- to 20-year

lifespan of a communications satellite or undersea cable, this equates to about $1.5 billion potentially

available to pay for telecommunications infrastructure, products and services. An investment of half

this amount could deliver significant satellite, cable and wireless infrastructure, as well as the services

they support. With such estimated savings from telecommunications restructuring, and with or

without supplementation from potential developmental and commercial partners, the Pacific should be

able to pay for enhancements.

13 Pacific Islands Forum Secretariat, October 2005 (available online at www.pacificplan.org).


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43. The study suggests that, for an average Pacific community, per capita funds available for

telecommunications might be $12 to $20 per month. When combined in family or clan groupings,

this could become $25 to $100 per month. At prices elsewhere in Asia and the Pacific, this is enough

for one or more phones, an Internet connection and some services. In poorer communities, someservices might be shared among neighbours, or through Internet cafes, e-centres or other modalities

that promote shared use. In more wealthy communities, more individual options, products and

services might be used.

44. It is worth noting that lower costs of satellite mobile phones, including solar-charged handsets

and pay phones, and business models involving partnering with local service providers can help

Pacific States pursue universal service while generating revenue and providing connectivity for

emergency management, particularly during major disasters.

45. In the short term, reductions in the cost of existing communications satellite capacity may be

achieved if Pacific States join together to lease one or more full transponders, as opposed to small

States leasing parts of transponders at higher rates. Leasing in units of one or more full transponders,

for relatively longer terms (for more than two to three years where possible), should markedly reduce

per-byte rates. An extension of the OPT French Polynesia / Telecom Cook Islands shared leasing

example might serve several Pacific island States well.

46. Potentially valuable examples which the Pacific can look to include the deregulation and

services of the Eastern Caribbean Telecommunications Authority, gratis wireless Internet in Niue,domain-name revenue for Tuvalu and Tokelau, economical reuse of first-generation undersea cables

by a telecommunications company in Papua New Guinea, new-style club partnerships to build

undersea cable systems, and other modalities. Some Governments and/or operators continue to pursue

policies or practices that hinder progress in connectivity infrastructure, services and pricingto

considerable social cost. Others, such as Samoa, are making progress in these arenas, to considerable

social benefit.

47. At a consultation meeting between ESCAP and Pacific island leaders on 13 March 2008, 14

leaders agreed that the proposed combination of partners, including the Pacific Plan Digital Strategy

Task Force, might constitute a sufficient mechanism to pursue further progress toward improved

telecommunications progress. In addition, the High Representative for Least Developed Countries,

Landlocked Developing Countries and Small Island Developing States, and the Director of the

Special Unit for South-South Cooperation, both expressed interest in working with ESCAP on this

important issue.

48. It is also noted that several findings of the ESCAP Pacific connectivity study may apply to

other parts of the ESCAP region.14 See the report of the Consultative Meeting of Executive Heads of Subregional Organizations and ESCAP: Twelfth

Session and Consultation Meeting of the Under-Secretary-General of the United Nations and Executive Secretary of ESCAPwith Pacific Island Leaders , Noumea, New Caledonia, 13 March 2008.


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IV. ISSUES FOR CONSIDERATION

49. The secretariat has herein covered some key issues that the Asia-Pacific region faces, namely,

the issues of ICT access and connectivity. Despite various efforts at the national and regional levels,

the current level of ICT access, especially among least developed countries, landlocked developingcountries and small island developing States, might not be sufficient to achieve the goals of the World

Summit on the Information Society or the Millennium Development Goals. In this context, the paper

identified community e-centres (CeCs) and Pacific connectivity as key priorities in advancing such

expanded access to unconnected and underserviced people.

50. In terms of improving ICT connectivity to the people living in most Pacific islands, a

dedicated satellite system is one available option that could provide all ICT services. The economic

scale of Pacific island countries suggests that such countries must cooperate among themselves and

with outside stakeholders in such efforts. There is a need to further develop the concept of a dedicated

satellite system for the Pacific island countries, particularly through an in-depth study of the possible

financial and commercial options, taking into consideration opportunities for South-South cooperation.

51. In addition, the secretariat has herein examined recent initiatives to review the

implementation of the outcomes of the World Summit on the Information Society. Although other

regions, such as Latin America, have set up mechanisms to systematically follow up on the

implementation of the outcomes of the World Summit on the Information Society, the Asia-Pacific

region has not yet initiated a review process. Such a review and follow-up could help to identify acoordinated and concerted approach to fill gaps in ICT access at the regional and subregional levels.

At the same time, the secretariat hopes that the present document will lead to further discussion on

how Asia and the Pacific as a whole could share and use available technological, financial and human

resources at the regional level to address challenges and disparities.

52. In its resolution 62/5 of 12 April 2006, the Commission requested the Executive Secretary,

among other things, to undertake actions to promote the exchange of information and best practices at

the regional level and to facilitate policy debate on the use of ICT for development, to assist member

States with technical and relevant information for the development of regional strategies, and to

promote cooperation of all stakeholders in collectively transforming the digital divide into digital

opportunities and bringing the benefits of ICT to all.

53. In addressing such challenges, regional cooperation might play a critical role. Especially

important is enhanced connectivity at the subregional level, which is key for enabling the majority of

people to access online knowledge and resources at an affordable price and a meaningful speed. At

the same time, regional cooperation could highlight how the Asia-Pacific region could maximize the

use of available resources, such as vetted and professionally developed knowledge and resources ine-education, e-health, e-agriculture and e-business applications, so that least developed countries,


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landlocked developing countries and small island development States might prioritize their expansion

of connectivity and ICT access at the national level.

54. In this sense, strengthened partnership with various stakeholders, including the private sector,

should be considered as a critical vehicle for accelerating such expansion. The secretariat has been indiscussion with various partners in search of ways of leveraging their expertise and strengths to

address challenges and seize opportunities.

55. In this process, the Asian and Pacific Training Centre for Information and Communication

Technology for Development can play a catalytic role in developing the capacity of policy- and

decision makers, Government officials and various stakeholders among member States. The

secretariat will further synchronize efforts made by the Centre to address such challenges.

56. In this context, the Committee may wish to consider the following recommendations:(a) That in-depth and focused analysis, research and policy options and recommendations

on how to ensure the sustainability and scalability of community e-centres as part of expanding rural

ICT access be undertaken by the secretariat and shared widely among policy- and decision makers

and various stakeholders; the focus will be on the unconnected and underserviced remote and rural

areas of least developed countries, landlocked developing countries and small island developing

States;

(b) That support continue for the secretariats efforts in expanding Pacific connectivity,

especially for an in-depth study on financing mechanisms and options for deploying satellite

technologies; the secretariat will also assist members and associate members in the establishment of

an early warning system as a critical application of ICT to address the immediate needs of countries;

(c) That the secretariat be mandated to prepare for the conclusion and final review of the

implementation of the outcomes of the World Summit on the Information Society in 2015 and

accordingly to put in place various review and follow-up mechanisms at the regional level; this

includes undertaking research and analysis on the national and regional implementation of the Geneva

Plan of Action, organizing a regional forum, and coordinating with United Nations agencies and

partners.

. . . . .