A communications policy perspective on

CTC sustainability in regional Australia: commercial viability and social good

Will TibbenUniversity of Wollongong

CTN Conference30 April 2008

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Introduction

• The presentation covers the following:• Why a communication policy analysis?

• A Sustainability framework derived from a communications policy analysis

• The framework applied to CTC case studies.

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What is a CTC

• A Community Technology Centre (CTC) provides public access to computers, Internet, printers, scanners and other forms of ICTs (information and communication technologies).

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They are also known as…

• Telecentres,

• teleservice centres,

• online access centres,

• community media centres

• telecottages

• ?

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CTCs have a rich history

• Earliest reference (1987) to a place called Faergelanda in Sweden – an adult education school provided training in using personal computers.

• Community centred and inspired with help from regional government and rural development organisations

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In the USA…

• CTC history is connected with social disadvantage in USA cities and the Internet

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In Australia…

• Rural development provided the impetus for CTC (telecentre) development.

• These early centres along with Rural Transaction Centres (RTCs) provided a useful platform for the CTC initiative between 2000-2005.

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CTCs - popular vehicle for international development

• CTCs are enormously popular throughout Africa, Asia and South America.

• Check out the website for telecentre.org - a public-private partnership between :• IDRC – International Development and Research

Centre • Government of Canada• Microsoft – Unlimited Potential Program• SDC - Swiss Agency for Development and

Cooperation

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CTCs and the Digital Divide

• CTCs are presented as an effective response to the Digital Divide. Why?

• CTCs are generally effective in engaging with communities at a local level.

• CTCs are effective in responding to a variety of information related needs

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CTCs in regional Australia

• The sale of telecommunications incumbent Telstra provided the funding for an ambitious plan to establish CTCs in regional areas of Australia in 2000 (Networking the Nation Scheme).

• On the presentation of a suitable business plan and an organisation to auspice the CTC, communities were granted funds to• purchase equipment;• rent premises; and• employ a manager

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CTCs in regional Australia

• Common to all proposals was the date from which funding would cease – June 2005

• My investigation of CTCs has been limited to NSW (CTC@NSW).

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CTC@NSW

• Two years on the net number of CTCs in NSW has increased.

• The CTCA (CTC Association in NSW) is in a relatively strong financial position to maintain a leadership role for a few years into the future.

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A successful outcome?

• The apparent success masks a considerable amount of work by CTC managers and the CTCA collective to manage very limited funds.

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A successful outcome?

• Only three CTCs out of (approximately) seventy are commercially independent.

• The majority rely on support from local government by way of• provision of premises;

• grants; and/or

• payment of utility costs (electricity and/or telecommunications)

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Diversity of needs – a diversity of outcomes

• Its amazing to witness the variety of strategies that have been instituted by CTC managers and committed groups of enthusiastic volunteers throughout NSW.

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Examples

• All provide public access to computers, the Internet, printers, scanners fax etc

• Email is a major application, as is word processing.

• Young people interact using social technologies such as My Space and Bebo

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Community Newspapers

• Community newspapers have been a natural extension of CTC activities.

• Provides a useful way to engage with community members.

• Generates revenue from advertising

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Other information products

• Book publications, websites, e-commerce portals, DVDs, CDs, photography exhibitions.

• Tourists information, oral histories, cook books, short stories, auto biographies• Time intensive so tend to be “one off”

rather than ongoing (cf newspapers)

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ICT Training

• Some CTCs offer training courses.

• In many cases, CTCs have become a “quasi-formal” training outlet catering for those who do not wish to attain formal certificates

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Community building

• Some CTCs contribute to the running of the local Chamber of Commerce.

• Homework centres for children

• Orders of Service for Funerals figure prominently in the case study accounts

• Business cards

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Community building

• CTCs are found to respond to local problems by running activities that meet local needs.

• CTC responses and programs are shaped by the background (expertise) of the manager.

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A one-stop shop for all of your ICT questions

• CTCs are often the first port of call for local business and private individuals experiencing problem with their PCs.

• Its not feasible to charge a fee for this kind of enquiry.

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In summary,

• CTCs provide an interface to the “ICT revolution” in regional Australia.

• CTCs are notable for the central place they hold in their town’s information economy.

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Normative Assumptions

• What ideas inspired the CTC@NSW program?

• My assessment…• a belief in entrepreneurship;

• a belief in economic markets; and

• no long term role for Government

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Normative Assumptions

• This represents a departure from the propositions laid in communications policy in Australia.

• Telecommunication and Broadcasting

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Normative Assumptions

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A key question

• In the light of current evidence (since July 2005) was the departure from established norms justified?

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Entrepreneurship was a winner

• The response of CTC managers and volunteers indicates high levels of creativity and commitment to their local communities

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The economic reality in regional Australia

• Drought in rural areas, structural re-adjustment to changing industry base (eg fishing and timber)

• Its illogical to think that a CTC will withstand circumstances that are closing banks, schools and supermarkets.

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The reality of the economics of information

• Information is a commodity but only to a limited extent (Arrow? and Lamberton).

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Market Failure

• The circumstances of the majority of CTCs reflects a situation of market failure – ie social good outcomes but insufficient commercial incentive

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Governments are no longer responsible for market failure?

• Federal governments claims they are no longer obliged to respond to market failure if suitable alternatives exist.

• In relation to CTCs they point to:• volunteers and

• Local Government.

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Social development theory

• Midgley outlines four alternatives in the development of development paradigms.

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Social development theory

1. Neo-liberal – let the market rule and three cheers for entrepreneurship

2. A new set of rules – fill in your ideas here

3. A combination of entrepreneurship and strategic intervention by the state.

4. Approaches that incorporate the paradigms from non-European traditions

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Thankyou

• Thanks to the managers, volunteers and customers of the CTCs who participated in these studies.

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• Its now time for your questions and comments.