analysis of public private private interplay frameworks in the development of rural...
TRANSCRIPT
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ANALYSIS OF PUBLIC PRIVATE INTERPLAY FRAMEWORKS IN THE DEVELOPMENT OF
RURAL TELECOMMUNICATIONS INFRASTRUCTURE
A MULTI-CASE STUDYI D O N G E S I T W I L L I A M S
C M I , A A U P H . D D E F E N S E ( 5 T H O C T O B E R , 2 0 1 5 )
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CONTENT
INTRODUCTION
RESEARCH QUESTION
SCOPE OF STUDY
METHODOLOGY
ANALYSIS OF THE FINDINGS
PPI FRAMEWORK DEVELOPMENT
CONCLUSION
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INTRODUCTION
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Public sector Private sector
SEARCH FOR OR EXPLORE A PUBLIC-PRIVATE INTERPLAY ( PPI ) FRAMEWORK
BROADBAND INTERNET INFRASTRUCTURE
Especially in developing countries
THE CORE ASSIGNMENT
RURAL AREAS
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THE PROBLEM
LOW FIXED BROADBAND PENETRATION IN SUB-SAHARAN AFRICA AND GLOBALLY
MODERATE PENETRATION OF MOBILE BROADBAND PENETRATION GLOBALLY AND IN SUB-SAHARAN AFRICA
19% USAGE OF THE INTERNET IN SUB-SAHARAN AFRICA
19% MOBILE BROADBAND INFRASTRUCTURE PENETRATION IN SUB-SAHARAN AFRICA
0.4% PENETRATION OF FIXED-BROADBAND INFRASTRUCTURE PENETRATION IN AFRICA
69% MOBILE TELEPHONY SUBSCRIPTION IN SUB-SAHARAN AFRICA
Source: ITU statshot 2014
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THE EXISTENCE OF BROADBAND ACCESS GAPS
TRUE ACCESS GAPS OR SMART SUBSIDY ZONES
THESE GAPS HAMPER THE ATTAINMENT OF UNIVERSAL ACCESS AND SERVICE OF BROADBAND INTERNET SERVICE GOALS IN MOST COUNTRIES
DEVELOPING COUNTRIES AFFECTED MORE
IMPLICATIONS OF THE PROBLEM
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PPI CAN BE A NECESSARY TOOL TO FILL THE ACCESS GAPS
Public sector Private sector
THE PROPOSED SOLUTION
Access GapAreas
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Universal Access and Service
Cities Rural Areas
Market PPI
Public sector Private sector Universal Access and Service
Has the potential
EXPECTED IMPLICATION OF THE SOLUTION
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PUBLIC PRIVATE INTERPLAY IS THE COMBINATION OR LEVERAGING OF PUBLIC AND PRIVATE SECTOR RESOURCES TO DEVELOP BROADBAND INFRASTRUCTURE
Public Sector Resources
Private Sector Resources
Contractual relationships Non-contractual relationships
Partnerships
PPP, PPPP, Joint Ventures etc.
Collaborations Co-orporations
Market reform arrangements
Public sector Private sector
THE PPI CONCEPT
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RESEARCH QUESTION
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WHAT TYPE OF PUBLIC PRIVATE INTERPLAY WILL ENABLE THE DEVELOPMENT OF BROADBAND INTERNET SERVICE IN RURAL AREAS OF DEVELOPING COUNTRIES?
THE MAIN RESEARCH QUESTION
Public sector Private sector
Narrow the developing country focus
Sub-Saharan Africa
Ghana, Nigeria
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2014 StatisticsPopulation: >25 Million citizensTotal Area: 239 460 Square KMGDP: $US 48.14 Billion
6 mobile GSM Network Operators: MTN, GLO, TIGO, Expresso, Vodafone, Airtel
Mobile Cellular penetration: >100%?
Mobile broadband penetration: > 39.3%Fixed broadband penetration:0.3%
2014 StatisticsPopulation: >150 Million citizensTotal Area: 923 768 Square KMGDP: $US 521 Billion
4 mobile GSM network operators: MTN, GLO, Etisalat, Airtel2 active CDMA operators: Visafone, multilinks4 Fixed-wired operators: MTN ,GLO, Ipnx, 21st century2 Fixed-wireless operators: Visafone, multilinks
Mobile Cellular penetration: >91%?
Mobile broadband penetration: > 10.1%Fixed broadband penetration:0% (insignificant)
PROBLEM IN GHANA AND NIGERIA
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WHAT FORM OF PPI /PPPS EXISTS IN N IGERIA AND GHANA?
WHAT EXTERNAL INSPIRATIONAL BOTTOM-UP PPP IN IT IATIVES EXISTS?
HOW ARE THESE BOTTOM-UP IN IT IATIVES ORGANIZED AND FINANCED?
HOW CAN THESE PPI IN IT IAT IVES BE APPLICABLE TO GHANA AND NIGERIA?
HOW CAN THESE IDENTIF IED PPI BE ORGANIZED AND FINANCED
SUB-RESEARCH QUESTIONS
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SCOPE OF STUDY
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2 CASE STUDIES
PRIMARY CASE STUDIES
SECONDARY CASE STUDIES
PRIMARY CASES
o A L M H U LT M U N I C I PA L I T Y B R O A D B A N D I N I T I AT I V E ( S W E D E N )
o H A L L A R Y D B R O A D B A N D C O O P ( S W E D E N )
o D J U R S L A N D S N E T ( S W E D E N )
o M A G N O L I A R O A D I N T E R N E T C O O P ( U S A )
o D H A R A M S A L A W I R E L E S S N E T W O R K ( O W N E D B Y A I R J A L D I I N D I A )
o G H A N A W I R E L E S S P R O J E C T ( G H A N A )
o J O H A N N E S B U R G W I R E L E S S U S E R G R O U P ( S O U T H A F R I C A )
SECONDARY CASES
o U N I V E R S A L S E R V I C E P R O V I S I O N F U N D ( U S P F )
o G H A N A I N V E S T M E N T F U N D F O R E L E C T R O N I C C O M M U N I C AT I O N S ( G I F E C )
SCOPE OF STUDY
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METHODOLOGY
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INTERPRETIV ISM/CONSTRUCTIV ISM
MULTIPLE CASE STUDY
PRIMARY CASES INVESTIGATED USING ACTOR NETWORK THEORY AND GROUNDED THEORY
SECONDARY CASES INVESTIGATED USING THE STAKEHOLDER THEORY
METHODOLOGY
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ANALYSIS AND FINDING
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FINDINGS FROM PRIMARY CASE STUDY
ACTOR NETWORK THEORY
o T H E A C T O R S R E L E VA N T I N E A C H C A S E
o H O W T H E Y I N T E R A C T E D W I T H E A C H O T H E R
o P P I A R R A N G E M E N T S I D E N T I F I E D I N T H E P R I M A R Y C A S E S
o H O W T H E P R I M A R Y C A S E G R O U P S W E R E O R G A N I Z E D
o T H E F I N A N C I A L A R R A N G E M E N T S A D O P T E D I N T H E P R I M A R Y C A S E S
o I T P R O V I D E D I N S P I R AT I O N F O R T H E F I N A L P P I M O D E L
o P E O P L E O W N E D I N F R A S T R U C T U R E I S P O S S I B L E
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GROUNDED THEORY (STRAUSS AND CORBIN (1998) ) TRADIT ION
o O P E N C O D I N G
o A X I A L C O D I N G
o S E L E C T I V E C O D I N G
o O P E N C O D I N G F O R E A C H O F T H E 7 P R I M A R Y C A S E S ( 7 5 6 C O D E S )
o A X I A L C O D I N G F O R E A C H O F T H E 7 P R I M A R Y C A S E S ( 1 7 7 C AT E G O R I E S )
o S E L E C T I V E C O D I N G D O N E F O R E A C H O F T H E 7 C A S E S
o C A S E S G R O U P E D U N D E R D E V E L O P E D C O U N T R Y, D E V E L O P I N G C O U N T R Y, A N D P U B L I C S E C T O R C O N T E X T
o C R O S S C A S E C O D I N G F O R P R O C E S S W A S C A R R I E D O U T
FINDINGS FROM PRIMARY CASE STUDY
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*
DEVELOPED COUNTRY MODELSVital Resources
Perceived Usefulness of the Technology
Deployment Possibilities
Trial/Mini-Implementation Mobilization/Union Formation Implementation
Mobilization/Union Formation Implementation
Vital Resources
Perceived Usefulness of the Technology
Deployment Possibilities
Trial/Mini-ImplementationMobilization/Union Formation Implementation
Vital Resources
Perceived Usefulness of the Technology
Deployment Possibilities
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T H E R E W E R E M A J O R T E S T S A S W E L L A S L O T O F M I N O R T E S T S
Vital Resources
Usefulness of Technology
Usefulness of Services
Accepted User Need
Intention to deploy Trial/mini-implementation Mobilization of Critical mass Implementation
DEVELOPING COUNTRY MODELSVital Resources
Usefulness of Technology
Usefulness of Services
Accepted User Need
Intention to deploy Trial/mini-implementation
Mobilization of Critical mass
Organization and Implementation on a large scale
Successful trial
Critical mass achieved
Failed trial
Abandon idea
Retrial
Retrial failure
Retrial success
Critical mass not achieved
Search for more potential users
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PUBLIC SECTOR MODEL
Municipality planning Enrolment of partners
Municipality decision
Coop decision to partner municipality
Private sector desire to invest
Infrastructure Development
Municipality planning Enrolment of partners
Municipality Decision
Identification of municipality partners
Infrastructure Development
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FINDINGS FROM SECONDARY CASE STUDY
S TA K E H O L D E R T H E O RY S A L I E N C E ( M I T C H E L L , A G L E A N D W O O D ( 1 9 9 7 )
Stakeholder Attributes
Type of Stakeholder
Definitive Expectant Latent
High Salience Medium Salience - Pay attention to Low Salience - Ignore
Dormant , Demanding, Discretionary Dangerous , Dependent, Dominant
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U S P F ( N I G E R I A ) A N D G I F E C (G H A N A ) C O L L A B O R AT E W I T H C O MM U N I T I E S ( V I L L A G E S T R U C T U R E ) , I D A S , I G O S A N D N G O S
T H E C O MM U N I T I E S A R E D E F I N I T E S TA K E H O L DE R S I N B O T H C O U N T R I E S
N G O S , I D A S A ND I G O S A R E D E P E N D E NT S TA K E H O L D E R S I N N I G E R I A
N G O S A N D I D A S A R E D O MI N A N T S TA K E H O L D E R S I N G H A N A
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N G O S , I D A S A ND I G O S A R E T H E R E F O R E E X P E CTA N T S TA K E H O L D E R S TO T H E I R R E S P E C T I V E U N I V E RS A L I T Y F U ND S
A P P I F R A ME W O R K B E T W E E N C O M MU N I T I E S , N G O S , U N I V E R S A L I T Y F U N D S W I L L W O RK
A C TO R C H A R A C T E R I S T I C S I N P R I MA RY C A S E A L S O E X I S T I N T H E S E C O N D A RY C A S E S
U S P F A N D G I F E C W E RE N O T AV E R S E TO P P I / P P P S
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PPI FRAMEWORKS DEVELOPMENT
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P O S S I B L E P E O P L E G R O U P S I D E N T I F I E D I N G H A N A A N D N I G E RI A
C O MM U N I T I E S , S O CI A L E N T E R P R I S E , N G O S , B R O A D B A N D C O O P,
I D E N T I F I E D A C TO R S , S I M I L A R TO T H AT O F P R I M A RY C A S E S
P O S S I B L E P U B L I C O R G A N I Z AT I O NS I D E N T I F I E D I N G HA N A A N D N I G E R I A (U NI V E R S A L I T Y F UN D S )
P P I F U N D I N G A N D O R G A N I Z AT I O N I N S P I R AT I O N G AT H E RE D F R O M P R I MA RY C A S E S T U D Y
P O S S I B I L I T I E S F O R O R G A N I Z I N G P E O P L E I DE N T I F I E D
S T I C K I N G P O I NT – I T S H O U L D B E A P E O P L E - O W N E D I N F RA S T R U C T U R E
POSSIBILITIES FOR A BOTTOM-UP PPI/PPP
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Design Ownership Building Management/Operations
Maintenance Finance
1 Non-profit private (people)
Non-profit private (people)
Non-profit private (people)
Non-profit private (people)
Non-profit private (people)
Non-profit private (people)
2 Public sector (Universality fund,)
Private sector
Private sector Private sector Public sector (Universality fund,)
3 External funding
ORGANIZATION AND THE FINANCING OF THE PPI
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INFRASTRUCTURE FINANCING
o E X P E N D I T U R E : T H E N O N - P R O F I T P R I VAT E S E C T O R , P U B L I C S E C T O R , E X T E R N A L F U N D I N G
o L O N G T E R M P E O P L E F I N A N C I N G
o R E V E N U E : “ U S E R PAY ” ( T H I S I S W H E R E T H E M O B I L I Z AT I O N M O D E L S C O M E I N T O P L AY )
IT IS IMPORTANT TO NOTE THAT SOME PUBLIC INSTITUTIONS MAY NOT REQUIRE REPAYMENT AS PART OF THEIR LEGAL OBLIGATION
PROFIT MAKING PRIVATE SECTOR IS H IRED BY THE PEOPLE
INFRASTRUCTURE AFFORDABILITY
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BANKABILITY
o E L I M I N AT E D F R O M T H I S F R A M E W O R K
o P R O F I T M A K I N G P R I VAT E S E C T O R , N O T D I R E C T LY I N V O LV E D I N F I N A N C I N G T H E P R O J E C T
REGULATORY RISK
o G H A N A A N D N I G E R I A A R E M A R K E T O R I E N T E D C O U N T R I E S ,
o I N C O U N T R I E S T H AT A R E N O T M A R K E T O R I E N T E D , T H E R E I S T H E N E E D F O R P R O T E C T I O N F R O M N AT I O N A L I Z AT I O N
COMMERCIAL RISK
o I N G H A N A A N D N I G E R I A , T H E U N I V E R S A L I T Y F U N D S W I L L B E A R M O R E O F T H E S U P P LY R I S K S
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SUPPLY RISK
o C O S T O F C R E AT I N G AWA R E N E S S
o I N S O M E C A S E S A I D I N F U N D I N G S O M E O F T H E S E B O T T O M - U P I N I T I AT I V E S
DEMAND RISK
o B O R N E B Y T H E P E O P L E A S T H E U S E R PAY M O D E L I S P R O P O S E D
HENCE PEOPLE HAVE TO BE MOBIL IZED USING THE MOBILIZATION MODELS IN THE THESIS
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PPI/PPP FRAMEWORK 1
Private Sector (Profit making)
Universality Fund / Public Institution
Private Sector (Non-Profit) – (NGO, Broadband coop, Village, Neighbourhood groups)
o Selection of private sector participant
o Regulation on terms of engagement with civil society
Outsource Infrastructure management and operations
Provide Finance and Regulation
Infrastructure Finance, maintenance & infrastructure financing
Infrastructure owners
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MunicipalityPeople/non-profit private
sector
Financing Public entity (eg. universality funds)
Private sector model
PPI/PPP FRAMEWORK 2- MUNICIPALITY MEDIATED MODEL
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POSSIBILITY FOR THE ADOPTION OF PPI FRAMEWORK
EXTENSIVE FIBRE OPTIC BACKHAUL DEVELOPMENT
THE POTENTIAL FOR RURAL CONNECTIV ITY
AFFORDABLE LOW COST BROADBAND INFRASTRUCTURE
THE POSSIB IL ITY FOR RURAL DWELLERS TO MOBIL IZE THEMSELVES
THERE IS ROOM FOR PUBLIC ASSISTANCE
THE PROJECT IS ONLY MEANT FOR AREAS WHERE MARKET FORCES MAY NOT CATER FOR ( PATCHES )
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IMPLICATIONS OF THE PPI FRAMEWORK
REGULATORY IMPLICATIONS
o I N T E R C O N N E C T I O N T O E X I S T I N G F I B R E N E T W O R K
o TA X AT I O N ,
o I N C E N T I V E S
TECHNICAL IMPLICATIONS
o D E P L O Y M E N T P O S S I B I L I T I E S
o T Y P E O F I N F R A S T R U C T U R E o T R A I N I N G O F P E O P L E
FINANCIAL IMPLICATIONS
o A B U S I N E S S M O D E L N E E D E D O N A C A S E B Y C A S E B A S I S
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CONTRIBUTION OF THE THESIS
CONTRIBUTION TO LITERATURE
THE THESIS AGREES WITH o T H E A D O P T I O N O F T H E H Y B R I D A P P R O A C H T O B R O A D B A N D
I N F R A S T R U C T U R E D E V E L O P M E N T ( S A L E M I N K A N D B O S W O R T H , 2 0 1 4 )
o I T C O N C U R S W I T H T H E N E E D F O R A R E G U L AT O R Y A P P R O A C H E M P O W E R I N G C O M M U N I T Y O W N E R S H I P ( K A K E K A S PA N , 2 0 1 4 )
THE THESIS CHALLENGES THE NOTION THAT
o C O O P S H AV E N O E X P E R T I S E T O D E V E L O P B R O A D B A N D I N F R A S T R U C T U R E ( YA R D LY 2 0 1 2 )
o C O O P S L A C K F I N A N C I A L A B I L I T Y T O FA C I L I TAT E B R O A D B A N D N E T W O R K S ( YA R D LY 2 0 1 2 )
o C O O P O W N E R S H I P O F B R O A D B A N D I N F R A S T R U C T U R E I S N O T P O S S I B L E W I T H O U T H Y B R I D O W N E R S H I P ( S A L E M I N K A N D B O S W O R T H , 2 0 1 4 )
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LIMITATIONS
FEW CASES
LANGUAGE BARRIER
GREATER EMPHASIS ON BROADBAND INFRASTRUCTURE DELIVERY THAN SERVICE DELIVERY
LIMITATIONS POSED BY DISTANCE
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FUTURE WORKS
QUANTITATIVE VALIDATION OF THE IMPLEMENTATION MODELS
THE IMPACT OF TELECENTRES TO ICT IN RURAL AREAS
FIELD TEST OF THE PPI MODEL
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CONCLUSION
FACIL ITATING BOTTOM-UP APPROACHES IS POSSIBLE
THE PPI DESIGN SHOULD ASSIGN INFRASTRUCTURE OWNERSHIP TO THE PEOPLE
THE PUBLIC SECTOR OUGHT TO CARRY OUT PROPER RISK ASSESSMENT WHEN DESIGNING THE PPI
UNDERSTANDING USER NEEDS AND THE UNIQUE V ITAL RESOURCES IN THE COMMUNITY IS IMPORTANT
BOTTOM-UP PPI IN IT IATIVES ACTUALLY POSE THE POTENTIAL OF FACILITATING UNIVERSAL SERVICE