How to establish broadband markets

in rural areas

2

Tanzania ICT4RD Project(Costech, DIT, KTH)

Population (2002- census)

Mara=1,369,000

Bunda=260,000

Serengeti=177,000

Coast = 900,000

B’moyo=230,000

Broadband vs Internetlocal versus international connectivity

Local content exists! Administration: Budgeting, economic control,

district-schools-healthcare units Education: In-service teacher training curricula Healthcare: Sentinel surveillance, remote

consultations, patient records Static part of Internet on local cache server Narrowband Internet connection to reach the

dynamic information in the world

Enabling factors

• National policies related to ICT (relevant ministries)

• Telecom regulations (Independent regulator)

• Other legal issues: Joint facilities and their management, right of way

• Availability of infrastructure: National backbone, access networks, last/first mile

• Human resources – Education and training, Supply chain – distribution and maintenance

Enabling factors cont..

• ICT Awareness

– ICT as an Enabler, ICT is cross cutting, etc

• Political will

– Support the adoption of ICT in their Communities

• Institutional mechanisms

– Involving all players in the community

– A platform to facilitate local participation

Market actors

• Producers

– maximize profit under the market constraints

– Service providers, network providers, infrastructure owners

– Supply chain: equipment distribution, deployment, maintenance

• Consumers/Consumer agents

– maximize the quality/cost ratio

• Policy and regulations

– Policy makers generate legislation

– Regulators arbitrate and balance between market actors and society interests

Getting Started

Market sizes Dar - Bunda – Nata, Stockholm – Jokkmokk – Tarfala

Who will deploy the last/first mile connectivity Commercial interest?

• Request For Tenders! What is in it for the districts ? If no one else, it will have to be left to local entrepreneurs,

NGOs, interested community members

Economic considerations

• Facilitating investments

– Public sector services constitute 30-40% of traffic volumes in developed countries and substantially more in developing countries

– Initial focus on Local administration, Education and Healthcare

• Operating costs

– Turn all stones to find paying customers, both public and private

ICT4RD Coverage

Serengeti Pilot 1GE Bunda-Nata-Mugumu 2 District Councils, 2PHCs, 2Dhs, 2Schools, 1TTC,.. Private individuals Local ownership

Wami pilot 1GE Chalinze-Lugoba-Wami-Miono 2 Schools, 3PHCs,ICT Center Local ownership*

Serengeti Pilot

Diagram here

Wami Pilot

Local Govt Involvement

Different Business models

• PPP– Private include both consumers and producers!!

• Private Supported Individuals

• Cooperatives

• Government subsidized

Challenges

Political

Operational

Rural

Operational Challenges

Maintenance

Lack of Qualified Technical Staff

ICT devices not available in rural

Proper working environment

Political Challenges

Government readiness to support

Misunderstanding of the PPP

Rigidness of LG to cooperate

17

Rural - ChallengesAvailability and reliability of power supply

Rural

Low purchasing power

Low density

Computer illiteracy

Etc..

Conclusions

• ICT makes a difference

• Leadership and ownership

• Use emerging technologies

• Outline of the rest of the day