Enabling Affordability, Ensuring Inclusive Development

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1 Enabling Affordability, Ensuring Inclusive Development ITU s Regional Connectivity Forum for the Caribbean and Central America Dominican Republic, December 1, 2014 Sonia N. Jorge Executive Director Alliance for Affordable Internet

2 Today s Agenda Who is A4AI and what do we do? Affordability: critical for inclusive development Affordability: facts and figures A4AI in action Building bridges for development

3 WHO IS A4AI AND WHAT DO WE DO?

4 A global multi-stakeholder coalition of 70+ members The World Wide Web Foundation hosts the Secretariat Mission: Meet UN Broadband Commission Broadband Target of entrylevel broadband services priced at less than 5% of average monthly income. Thereby: Enabling billions of users to come online (with a particular focus on low-income countries) Raising Internet penetration rates to least 40% in all countries

5 With a clear focus on policy and regulation The best technologies can t drive progress if they are hamstrung by regulation and policy. By creating the conditions for open, competitive and innovative broadband markets, regulatory and policy reform can leverage very large increases in Internet access.

6 Supported by members across public, private and civil society sectors Global sponsors Private sector

7 Strength in diversity Public Sector / Academia Civil Society / Foundations

8 Strength in diversity Local partners

9 All aligned around policy and regulatory best practices These diverse organizations have all endorsed nine best practices Practices aim to ensure open, competitive markets, plus policies and regulations in place to lower the cost structure for the industry Grounded on principles of Internet freedom and the fundamental rights of expression, assembly, and association online

10 How we do it: Policy, Engagement and Information Clear focus on Policy and Regulatory Reform Underpinned by: 1. Leadership at the national level 2. Coalition building 3. Impartial research & knowledge-sharing Engagement with up to 10 countries by end of 2015 across Latin America, Africa and Asia On-going research and production of an annual Affordability Report to provide robust evidence for the policy making process International advocacy (e.g., UN, ITU, UNCTAD-CSTD, CTO, AU, GSMA-MWC, SIF, and many other regional events) Facilitating South-South dialogue

11 AFFORDABILITY IS CRITICAL FOR INCLUSIVE DEVELOPMENT

12 Internet Access = Social and Economic Development Ø Broadband markets that price Internet access out of reach for the majority of people are neither socially nor economically efficient. Ø By restricting access to affluent segments of the population, they hold back progress in areas such as health and education, and sacrifice tangible GDP growth that would result from higher connectivity levels. Affordable access also promotes active citizenship: public participation in democratic processes, increased awareness of the rights of the citizen, access to government information and services

13 How does the Internet enable economic growth? (Source: Deloitte, Value of Connectivity: Economic and Social Benefits of Expanding Internet Access )

14 Economic impact of internet penetration (75%) (Source: Deloitte, 2013)

15 Entrepreneurship & the Web How can broadband create opportunities and growth in the business sector? Increase employment and entrepreneurship Mobile broadband will open up regional and global markets to local entrepreneurs Dominican Republic: A 10% increase in broadband penetration could reduce unemployment by 2.9% Small and medium enterprise (SME) growth Enables SMEs to generate more revenue, lower costs, higher productivity, and jobs SMEs that spend more than 30% of their budget on Web technologies grow their revenue 9x as fast as SMEs that spend less than 10% (Source: Broadband Commission, 2013)

16 Increased access to educational tools, information and materials Kids working together on a computer in Haiti. Photo: A4AI member Inveneo

17 Gender equality in broadband access: access to information, public participation Photo: A4AI member World Pulse

18 Ready access to agricultural prices and markets, facilitating better crop management Photos: A4AI member Grameen Foundation

19 Support and opportunities for local and national ICT entrepreneurship Photo: A4AI member Intel

20 Affordable public access via libraries, community centers Pucallpa Village Library, Peru. Photo: A4AI member IREX/Beyond Access

21 AFFORDABILITY AROUND THE WORLD

22 A bleak picture for developing countries Broadband Prices as % of GNI per capita Developed Developing Fixed Broadband 1.7% 30.1% Mobile Broadband 1.4% 11-25%* * dependent on plan Source: ITU Facts and Figures 2013 In Latin America and the Caribbean, mobile broadband prices still represent 5-11% of GNI per capita. Broadband Commission reported that over 90% of people in the world s 49 least developed countries are still not connected

23 Progress made is positive but not enough: at HH level Percentage of Households with internet access, by region, by 2014 Source: The World 2014 ICT Facts and Figures

24 Progress made is positive but not enough: or subs level Active mobile broadband subscriptions, by region, by 2014 Source: The World 2014 ICT Facts and Figures

25 In Latin America & Caribbean public access is key across region Internet Users Compared to Active Mobile and Fixed Line Subscriptions Mobile Broadband Subscriptions per 100 inhabitants (2013) Fixed-Broadband Subscriptions per 100 inhabitants (2013) Percentage Indviduals Using the Internet (2013) Percentage LAC Countries Source: ITU MIS 2014

26 Averages are misleading at 5% of incomes, price is not low enough for the majority Price as % of GNI pc - Mobile and Fixed Broadband Percentage of GNI pc Price of 500MB Prepaid Mobile Broadband as % of GNI pc (2013) Price of Fixed Broadband as % of GNI pc (2012) 0.0 LAC Countries Source: ITU MIS 2014

27 For a large percentage of the population, prices are above the 5% Price of Pre-paid Mobile Broadband as % of Disposible Income for the Lowest 20% of HH and % of the Population for which Price is >5% Price of 500MB Prepaid Mobile Broadband as % of lowest 20% of HH Disposible Income (2013) % of Population for which pre-paid handset based mob BB >5% (2013) 0.0 LAC Countries Source: ITU MIS 2014

28 And 3G subs are a small fraction of total mobile subs G Subscriptions as % of Total Mobile Subscriptions (GSMA Q4 2013) Percentage G subscriptions per 100 inhabitants (GSMA Q4 2013) Mobile subscriptions per 100 inhabitants (2013) LAC Countries

29 The A4AI Affordability Report provides a closer look at the true picture For the approximately two billion people living on less than $2/day in the 46 countries studied, the UN Broadband Commission target of entry-level broadband services priced at less than 5% of average monthly income remains far from attainable. (A4AI Affordability Report 2013)

30 The Affordability Report: An innovative index Affordability Around the World

31 The Affordability Index: top ranked countries Bringing together robust quantitative data with primary research assessing where countries are on the path to best practice outcomes.

32 Cost of broadband is prohibitive when living in poverty Country Affordability Index Rank Total pop. Living on less than $2/day Fixed broadband as % of income at $2/ day Mobile broadband as % of income at $2/ day Brazil 3 20,536, Peru 4 3,577, Colombia 5 7,016, Ecuador 8 1,466, Costa Rica 9 265, Mexico 10 4,958, Argentina , Source: A4AI Affordability Report, 2013 Gender gap in incomes presents an even bleaker picture Women earn on average 30-50% less than men in many countries throughout the developing world Limits women s purchasing power & ability to benefit from broadband

33 Affordability Report Conclusions Public, private and civil society stakeholders have a role to play Competition Is Not A Silver Bullet. Well-rounded policies and regulations that stimulate both supply of and demand for broadband are a must. Overcoming the Infrastructure Barrier Remains a Priority to Ensure Affordable Universal Access. This can be done by facilitating resource sharing across network operators and other infrastructure providers as well as by creating public-private partnerships (PPPs) to subsidize infrastructure projects. Reducing Prices and Closing the Access Gap for Under-Served Populations is Critical for Development. Universal Access/Service Funds are critical to support broadband deployment as well as public access to information and content online. National leadership is a critical ingredient to maximize the positive impact of broadband on jobs, productivity, economic growth and innovation. Many countries have developed broadband policies, but many of these are far from being comprehensive enough to address the barriers to improving affordability.

34 A4AI IN ACTION

35 Advocacy focused on action and implementation Country engagement Africa: Nigeria, Ghana and Mozambique came on board and currently have multi-stakeholder coalitions actively working to address selected priority areas LAC: Dominican Republic is the 1 st Latin American country to join the Alliance Asia: Myanmar (December 2014) More in 2015! Robust research to build the evidence base First affordability report released December 2013 Case studies published (Ghana, Nigeria, Mozambique, Peru, Brazil) Thematic briefings being developed Affordability Report 2014 out soon!

36 National Coalitions: Selected Areas for Engagement Country Ghana Nigeria Identified Priority Issues (1 st. Phase) Data collection/research to develop solid evidence for policy decision making Taxation Infrastructure sharing and open access Pricing transparency; user awareness of services Pricing transparency; consumer awareness Open access framework and infrastructure sharing Spectrum policy: availability, fair allocation, and innovative uses, availability of free/unlicensed spectrum Data collection and indicators (M&E) Mozambique Data collection/research to develop solid evidence for policy decision making Taxation Infrastructure sharing 36

37 BUILDING BRIDGES FOR DEVELOPMENT

38 Affordable Internet Access is a Bridge to Development Blue Nile River, Ethiopia. Image: Kenneth Franz via Wikimedia

39 but all too often bridges are controlled Image: Sonata via Wikimedia

40 Build robust, affordable and equitable bridges Ø Access to information is the key ingredient in the journey from poverty to power! No one should be denied that. "It is critical to expand access and connectivity in order to address the post-2015 agenda. Secretary-General's Special Adviser on Post-2015 Development Planning, Amina J. Mohammed of Nigeria, at the opening of the 17th CSTD meeting

41 Join A4AI in our journey to affordable universal access to the internet Ø Active participation of all stakeholders in defining a concrete plan of action is the single most important step to move from high prices and low uptake to low prices and high demand. Ø Join the Alliance and support our global advocacy work Ø Advocate for affordable internet!

42 Join the Alliance and advocate for affordable internet! Thank you! Sonia Jorge Executive Director Alliance for Affordable Internet

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