The Global Perspective of the Digital Divide - Satellite Services in Asia and Africa
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1 Member of
2 The Global Perspective of the Digital Divide - Satellite Services in Asia and Africa Workshop Digital Divide and Satellite: Chances, Difficulties and Actions Bonn, Member of
3 Content 1. Overview 2. Demand for information and communication 3. Supply of Satellite Services in Africa and Asia 4. Political Action 5. Conclusions Page 3
4 1. Overview Page 4
5 1. Overview 1.1 What is the digital divide? Access to telecommunication and data services is distributed unevenly across the world, with Africa being especially affected by this Digital Divide. Page 5 Interregional Internet Bandwidth, 2003
6 1. Overview 1.1 What is the digital divide? ICT growth in developing countries is outpacing the West. The real challenge are internal urban-rural divides that leave many outside the information age. 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 Source: ITU 1998 Page 6 0,0 Senegal Togo Ghana Tanzania Uganda Main lines per 100 inhabitants Urban m ain lines per 100 inhabitants Rural m ain lines per 100 inhabitants
7 1. Overview 1.2. Our view and experience on the Digital Divide Tackling the Digital Divide has to take into account the dimensions and issues that influence deployment and use of ICTs in Developing Countries. Technology Market Sales Regulation Disposable income Social and cultural context Education Demand for Information and Communication Impact on the Digital Divide Political objectives Universal Access Regional development Provision of public goods egovernment elearning ehealth Supply of ICT Page 7 Political Tasks
8 2. Demand for information and communication Page 8
9 2. Demand for information and communication 2.1. Disposable income the main driver for the actual demand for ICT services The level of income is the major source of demand for ICT. Economic growth within the new EU member states should fuel activities in the ICT sector. GDP per Capita and Traffic Volume, ,00 GDP per Capita in USD 2500, , , ,00 500,00 0, Traffic Volume (million minutes) Source: Telegeography Page 9 Kyrgyzstan Moldova Armenia Angola Sw aziland Egypt Serbia and Montenegro Albania Namibia Kazakhstan Bulgaria Romania South Africa Russia Turkey
10 2. Demand for information and communication 2.2. Influence of the framework conditions Whether the potential demand for communication and information can be satisfied depends on a variety of framework conditions. Culture Content ICT Infrastructure Demand for communication and information Alternative Information Channels Human Resources & Skills Page 10 Regulation
11 3. Supply of Satellite Services in Africa and Asia Page 11
12 3. Supply of Satellite Services in Africa and Asia 3.1 Market aspects The market for satellite services in developing countries is characterized by shared access and the need for alternatives to deficient orthodox networks. The peculiar market characteristics in developing countries For large parts of the population access to telecommunication and the Internet means shared access (Public Call Offices, Internet browsing centers). Orthodox fixed and mobile networks do not cover population and area only partial. call for innovative solutions that can be met by satellite services IP-based technologies and W-LAN offer alternatives to orthodox telco and Internet access. ISPs are migrating up the value chain to become infrastructure providers. Satellite services have to provide service specifications for ISPs to offer shared voice as well as broadband data services. Page 12 although to a differing degree in different markets. Varying stages of market development and competition in African and Asian markets require a cautious approach to pricing and product development in each market
13 3. Supply of Satellite Services in Africa and Asia 3.2 Distribution and Sales Due to increasing importance of low-cost VSAT and satellite-based voice services, Satellite operators have to cooperate with local distribution partners. There is a tendency of satellite services to come closer to end-user markets. Traditional satellite services Low-cost Ku-Band VSAT services Thuraya satellitebased GSM services Usual customers for satellite operators in African markets are: large corporations, international organizations, PTOs and ISPs. => Sales channels for low volume markets. Page 13 Main customers for broadband via low-cost Ku-Band VSAT services are: Small and medium-sized enterprises (SMEs), Cyber cafés, Educational institutions, Health institutions. => Sales channels for large end customer markets Coverage in Northern & Central Africa, Middle East, South Asia and South & Central Europe: Customers are: individual end users providers of rural public phones (e.g. Nigeria) => Sales channels for (high end) end user markets
14 3. Supply of Satellite Services in Africa and Asia 3.3 Technological aspects The choice of appropriate technology options depends on a variety of factors. In developing countries satellite technologies have certain advantages. Regulatory Framework General Political and Security Situation Fixed Wireless Satellite Heritage Infrastructure Technology mix Access Transport Technical Development Service Demand Page 14 Environment (Geography / Climate) Market Size / Population Density
15 3. Supply of Satellite Services in Africa and Asia 3.4 Regulatory aspects Broadcast property and a huge variety of potential services makes (spectrum) regulation and the licensing of satellite services a complex issue Regulatory issues to be addressed by providers and users Licensing of end-users as well as network operators and service providers. Requirements for end-users and resellers to access different operators. Determination of licensing categories Broadband satellite is a convergent technology. Telecommunications legislation and the actual state of the market, especially the existence of guaranteed monopolies or duopolies (e.g. for international connection). Example: AVU Requirements: Internet access; On-line courses; Video feeding and conferences. The African telecom landscape is a complicated mosaic of many different legal and regulatory frameworks a unified market entry strategy proved to be impossible. Major problems that occured: Licenses to transmit voice; Interconnection; License fees; Time to acquire permit licenses. Page 15
16 4. Political Action Page 16
17 4. Political Action 4.1 Narrowing the Digital Divide as an political objective The Digital Divide discussion has come to a stage where scalable and sustainable concepts are on high demand. In this context VSAT gains importance. Efforts to bridge the Digital Divide International initiatives G8 dotforce UN ICT Taskforce WSIS. International organizations (UNDP, IDRC, IICD etc.) Local and international NGOs. Many Local Pilot Projects National action National ICT Policies Universal Access regulation Rural development plans Market liberalization Deficiency in large scale deployment of technological solutions. Lack of economical and technological scalability, sustainability and relevance In serious attempts to overcome these problems, especially VSAT plays an increasing role (e.g. the connection of 400 post offices in Kenya). Page 17
18 4. Political Action 4.2 Narrowing the Connectivity Divide a necessary but not sufficient condition Although connectivity indicators have caught up and will continue to do so there is still a need to provide content that is relevant in the rural context. Mobile telephony has improved connectivity indicators in Africa and Asia dramatically. Due to its specific properties cellular mobile appears to be the most appropriate choice for communication in these countries. Mobile telephony is still basically a voice application. GSM networks in most countries are not yet able to provide certain services, e.g. broadband internet. Telephony and the Internet are still urban phenomena, although some trickling down can be observed to semi-urban areas. Universal access obligations force many operators to serve remote locations. For example, the license for South African s Second National Operator requires the company to provide 15,000 Community Service Phones in rural areas and to cover 80% of the territory after ten years of operation. Bidders offer VSAT as a solution. Providing connectivity to rural areas does not guarantee that information is helpful and meaningful to rural population. The Digital Divide goes deeper. Page 18
19 4. Political Action 4.3 Narrowing the Digital Divide in the public sphere egovernment, elearning, ehealth Administration, health and education are important fields for ICT use. The required services properties can often be offered by satellite technologies. The public sector is not solely an enabler to digital development by setting framework conditions and regulations. ICT offer opportunities for the provision of goods and services in the public domain. egoverment: Page 19 Services become more transparent; improved communication and flow of information within the administration; enhanced information gathering and procession. ehealth: Health information systems; wider information base for doctors and nurses. Example: Satellife s HealthNet, extensive network of health workers. Uses LEO-Satellite for a store and forward mail service as part of the network covering remote areas. elearning: New options for distance education; wider knowledge base for teachers and learners. Example: African Virtual University linking tertiary education on the African continent. Satellite technologies properties are suited to provide these services.
20 5. Conclusion Page 20
21 5. Conclusion There is a strong demand for ICT in developing countries Even in remote areas of developing countries there is demand for communication and information services. This demand can be satisfied by offering first of all connectivity but as well content fitted for the context of these markets. that offers high potentials for satellitebased services In African and Asian markets satellite-based communications and data services have a higher potential than in developed Western communication markets because there is a severe lack of substituting technologies. Especially VSAT is already high on demand and will grow further. when the right regulation is in place and the market is properly addressed. Page 21 The potential can only be tapped exhaustively when regulation does not constrain satellite services. Satellite operators and service providers have to consider the peculiarities of developing communications markets and distribution channels when designing their services.
22 Your Contact Gebhard Weiss Detecon International GmbH Industry Practice International Carriers Page 22 Oberkasseler Str Bonn (Germany) Phone: Fax: Mobile: gebhard.weiss@detecon.com
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