[kictanet] Bringing down the cost of Internet

[McTim]

Bwana,

I have been following A4AI for a couple of months now, am glad to hear
you are on board.

Listers, FYI, here are the policy positions they are taking:

http://a4ai.org/wp-content/uploads/2013/09/A4AI-Best-Practices-launch1.pdf

-- 
Cheers,

McTim
"A name indicates what we seek. An address indicates where it is. A
route indicates how we get there."  Jon Postel

On Wed, Oct 9, 2013 at 1:21 PM, Bitange Ndemo <bitange at jambo.co.ke> wrote:
> Listers,
>
> I am in Nigeria for the launch of the Global Alliance for Affordable
> Internet (A4AI) which I was appointed the Honorary Chair.  This is a
> diverse and truly global coalition committed to driving down the cost of
> internet access in less developed countries. We believe that, while
> technological solutions are advancing rapidly, policy and regulations
> remain a significant barrier to affordable internet. A4AI seeks to create
> the conditions for open, competitive and innovative broadband markets
> through a combination of advocacy, research and knowledge-sharing. When we
> succeed, we will help to lower access costs to meet the UN Broadband
> Commission target of broadband access priced at less than 5% of monthly
> income, thereby helping billions more to come online and unlocking
> significant socio-economic benefits.
>
> Why is A4AI needed?
> “Estimates suggest that as much as two-thirds of the world’s population is
> not connected to the internet, with penetration rates in less developed
> countries averaging around 31%. In Africa, this figure drops to 16% (while
> in in Kenya we are approaching 40% Liberia is at .5%) and in the world’s
> 49 least developed countries, over 90% of people are not online. (Source:
> ITU 2013) and (Broadband Commission 2013)
>
>  “Most often, this is for affordability reasons. In developed nations, the
> average cost of broadband internet access is around 1-2% of monthly
> household income - less than a daily coffee. In less developed countries,
> this figure skyrockets to over 30%, and in 17 countries a basic internet
> connection can cost well over 100% of average monthly income. Overcoming
> this digital divide is critical so that technology and innovation can be
> harnessed to accelerate progress in areas such as education, food
> security, job creation, public health, and gender equity.”
>
> On A4AI’s goals:
>
> “Our primary focus is to reach the UN Broadband Commission Broadband
> Target of entry-level broadband services priced at less than 5% of average
> monthly income. In doing so, we hope to enable billions of people to come
> online (with a particular focus on low-income countries) and make
> universal access a reality.
> On Strategy:
>
> “Innovative technological solutions to affordability challenges are
> progressing apace. However, the best technologies in the world can’t drive
> change if quasi-monopolies or regressive policies prevent them from being
> implemented. Changes to policy can deliver impressive results, fast. So,
> through a combination of advocacy, research and knowledge-sharing, A4AI
> will drive policy change by seeking to create the conditions for open,
> competitive and innovative broadband markets. We are unique in pursuing
> this approach.”
>
> On Specific Activities:
>
> “A4AI is focused on creating conditions for open, competitive and
> innovative broadband markets via regulatory and policy change. Activities
> include: original research (including the publication of an annual
> Affordability Report); publication of regulation and policy best
> practices, and illustrating these via case studies; and in-country
> engagements including networking and knowledge-sharing. We will work
> closely with national governments – three to four countries in year one,
> expanding to 10 - 12 in years two and three.”
>
> How are policies keeping prices high?
>
> There are numerous examples of how policies keep prices high. Here are
> just a handful:
> • Luxury taxes: Tax accounts for more than 20% of the total cost of mobile
> ownership in at least 13 African countries. (Source: GSMA 2011)  Tax
> reductions on PCs in Colombia have increased PC penetration by 100% in 2
> years, and Internet penetration increased 466% from 2005-2008, versus 161%
> across the region (source: IDC Colombia 2009).
> • Access to international gateway: In 8 of 20 African countries surveyed
> by ISOC there is little or no competition on the international gateway. In
> the same survey, only one of the 20 countries has fully privatized their
> incumbent telecoms company. In South Africa firms began deploying
> open-access metro fibre in 2009, and also furnished a link from
> Johannesburg to the SEACOM (undersea cable) landing station in order to
> avoid very high charges proposed by Telkom (the state-owned operator).
> This helped to slash international capacity prices by over 60%.
> • Universal Service Funds (USF) for Broadband (example of how policy can
> lower prices): USFs and similar subsidies improve the availability and
> affordability of broadband for unserved or underserved citizens.
> Historically focused on basic telephony services in remote areas, USFs are
> now being adapted to promote the adoption of broadband by subsidizing
> content, devices, services, and digital training, as well as
> infrastructure. USFs can serve as a tool to stimulate demand and increase
> adoption and use.
>
> About A4AI’s membership base:
>
> “A4AI is a diverse coalition of over 30 private sector, public sector, and
> not-for-profit organizations who have come together to advance the shared
> aim of affordable access to both mobile and fixed-line Internet in
> developing countries. We are the first truly global coalition to tackle
> this issue and our members are from both developed and less developed
> nations. The World Wide Web Foundation, established by web inventor Sir
> Tim Berners-Lee, initiated the Alliance.”
>
> 1. What, exactly, will A4AI do?
>
> A4AI will undertake a blend of international advocacy and research,
> coupled with on-the-ground work. We’ll be working in three pioneer
> countries by the end of 2013, and will bring together in-country
> stakeholders to identify obstacles, how to tackle them and we’ll then help
> to drive implementation. We will be developing advocacy and policy
> proposals in conjunction with these stakeholders in each country. We will
> also continue to press at international level on these issues and our work
> will be informed by original research – with the first edition of our
> Annual Affordability report being released in December 2013.  We’ll also
> publish case studies, position papers and briefings on lessons learned
> throughout the year to share knowledge.
>
> 2. What is the relationship between Internet.org and A4AI?
>
> While A4AI and Internet.org are two separate organisations, there is a
> common goal (in addition to common partners in Facebook and Ericsson) of
> making internet access available to more people around the world.  A4AI
> has a clear focus on policy and regulatory issues surrounding access while
> Internet.org is focused on identifying technical innovations and new
> business models that can help drive down the cost of data.  Wherever
> possible, we will we collaborate to maximise impact.
>
>
> Regards.
>
>
> Ndemo.
>
>
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