Towards an Efficient ICT Sector Policy to Serve Remote Areas

TRA proprietary

Outline

• Efficient Broadband Policy to Serve Rural Areas

• Government’s Role in Achieving Broadband Connectivity

• Regulator's Role to Promote Broadband in Remote Areas

• Technology Innovations Utilized in Fast Rural Broadband Deployment

• Development of Local Content and Capacity Building – Case Study

TRA proprietary

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Introduction

Government

Regulator

Local content & applications

Technology

• Appropriate governance (policies, funds, taxes, etc.)

• Efficient regulation (licensing, network sharing, competition, etc.)

• Technology innovations• Local content and

applications

Efficient Broadband Policy to Serve Rural Areas

TRA proprietary

Government’s Role in Achieving Broadband Connectivity for Remote Areas

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Government as a Policy-Maker Must Take Measures and Initiatives to Increase Broadband Services in Remote Areas

• Issue a clear ICT Policy that provides clarity on the commitment of the government to foster Broadband connectivity in remote areas

• Allow access to government and municipalities-owned infrastructure (highways, ducts, sewers, etc..) by encouraging open access to passive infrastructure for service providers

• Reduce administrative burden for private investments in remote areas and subsidize the rollout of expensive passive ICT infrastructure

• Transform existing Universal Service fund programs into programs for digital inclusion that support broadband connectivity for all citizens to serve as :

a) Funding mechanism for broadband networks in rural and high-cost areas b) Facilitator of market entry and creating demand for advanced ICT services in rural areas

• Reduce taxes on broadband services/equipment through:

a) Fiscal incentives to broadband service providers such as relief from tax levies for a certain period (e.g. revenue share)

b) Exemption from value-added tax on imported equipment• Raise and increase awareness at municipal level on the importance of broadband

services in remote areas as well as the role of municipalities owned infrastructure in fostering broadband connectivity

• Ensure the implementation of infrastructure sharing regulations

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International Experience to Promote Broadband Services in Remote and Rural Areas

JapanCommitted in 2009 to fund broadband deployment ($1.9B )in ‘zero broadband areas’ not covered by private companies

Denmark Adopted Public Private Partnerships to fund projects at the municipal level

France Adopted local government investments to provide broadband in “white areas”

China & Tunisia

Subsidize standardized computers for poor and rural households

South Korea

Government intervention in broadband rollout is in the form of loans and tax breaks rather than direct government funding

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Cybercafés and Community Centers are Vital for Rural Areas

TRA proprietary

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In Rural Areas with Lowest Income Ranges, the Most Affordable Solution is to Deliver Collective Broadband through Cybercafés and Community Centres

TRA proprietary

Distribution of ICT expenses / income range

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Incomerange n°1

Incomerange n°2

Incomerange n°3

Incomerange n°4

Incomerange n°5

broadband internet /mobiles

broadband internet /fixed lines

voice telephony / mobiles

voice telephony / fixedlines

collective access/broadband Internet

collective access/telephony

Source: ITU workshop – Dr Miloud Ameziane – AREGNET 2011 – Beirut, Lebanon

Regulator's Role: Licensing Obligations to Cover Rural Areas, Network Sharing,

Competition, etc.

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Regulators Play a Major Role in Speeding-Up the Deployment of ICT Services in Remote Areas

• Ensure the adoption of access to the ducts, streets, sewers and infrastructure sharing regulation, which will incentivize private investments in rural areas by reducing the sunk costs and eliminating needless duplication of infrastructure

• Grant new licenses for rural areas with less regulatory conditions (e.g., throughput and and QoS conditions ) in order to reduce barriers that hinder broadband roll-out in rural areas

• Impose certain obligations on national service providers to enhance and foster broadband connectivity in rural areas such as:

a) Coverage roll out requirements in rural areas (e.g., 100% rollout coverage by all national service providers)

b) Commitment to achieve mutual national roaming agreements in remote areas

• Rebalance regulated tariffs and interconnection charges so that prices reflect the higher costs of providing services in rural areas

• Impose spectrum licenses with little or no usage fees for frequencies used in rural areas in order to encourage investment in such areas

Technology Innovations Utilized in Fast Rural Broadband Deployment

Technology Innovations Utilized in Fast Rural Broadband Deployment

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Mobile Broadband• The deployment of fixed broadband is time consuming and costly,

especially in rural areas where there is no feasible business case• On the other hand, mobile penetration is very high in rural areas

which results in fast acceptance for mobile broadband service• Mobile broadband deployment is more efficient in terms of time,

investment, ROI, etc. • New technology in mobile broadband is in place to promote fast

deployment• For instance, the Public Access Femtocell is designed to serve up to

64 phone calls at a time, with a range of more than a mile

12TRA proprietary

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Mobile Broadband Ecosystem: Mobile Beyond Voice

Utilities GovernmentConsumer ElectronicsTransportationHealthcare

Source: GSMA 2011

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Technology Innovations Utilized in Fast Rural Broadband Deployment – Cloud Computing

TRA proprietary

• Mobile cloud computing is defined as cloud computing accessed thru mobile devices

• Mobile users are provided with data storage and processing services on a cloud computing platform rather than on the mobile devices themselves

• Mobile cloud computing extends cloud computing by providing enhanced service availability and by exploiting information about a user’s location, context and network intelligence, thereby considerably improving user experience

• Leveraging the mobile device storage, sensing and processing resources for optimizing cloud-based applications adds to better user experience

• To address bandwidth limitations, data caching capabilities enable applications to work offline using HTML5, which also presents a host of other features that can be deployed in mobile applications making them platform independent

Cloud and Mobile Broadband for Startup Businesses in Rural Areas• The comfort level in the usage of mobile communications in rural

areas, combined with the modest broadband infrastructure, offers a unique opportunity for utilizing cloud computing

• Startup businesses now have an option to use Customer Relationship Management (CRM) applications which were prohibitively expensive in the traditional software world

• By moving their data to the clouds, these businesses (e.g., their websites) are not held hostage to power failures and broadband disruptions

• Their data is always available for easy access through their mobile devices using mobile broadband connections

• For example, a loan officer at a small microfinance agency in rural areas could simply use his mobile to log into a website to screen loan applications, manage existing loans, and track collections

15 TRA proprietary

Development of Local Content and Applications and Promotion of Capacity

Building of ICT Users

Case study: ICT-enabled Development in “Siwa”, the Egypt's Most Remote Oasis Town

Facts:• 23,000 inhabitants• 24 schools in SIWA (10,700 students)• Siwian people have their own culture & customs• Agriculture is the main economic activity• Handicrafts like basketry is prevalent• Tourism is also a vital source of income• Challenging conditions for women

o Early marriageo School drop-out at an early ageo No work outside home

17 TRA proprietary

Case study: ICT-enabled Development in “Siwa”, the Egypt's Most Remote Oasis Town

18 TRA proprietary

• Vodafone Egypt Foundation contributed 1M EGP for ICT development in Siwa in addition to establishing Mobile Broadband (thru 3G Connectivity for Siwa

• Using ICT to empower the community through:o Education & illiteracy eradicationo Supporting SMEs by marketing local products through a mini

marketplace portalo Improving child healthcare

THANK YOUwww.tra.gov.lb