[kictanet] Bringing down the cost of Internet

Thu Oct 10 09:18:53 EAT 2013

Congratulations Dr Ndemo for the  appointment as the Honorary Chair in A4AI
. I have worked with Sonia in the past and the two of you make a formidable
team  to fight a formidable battle for humanity . thanks also for driving
change from  where Sir Tim Bernard-lee started off .The battle lines as
expressed in the write up are very clear 

I only have one  problem with your strategy -- that build they will come  as
a strategy need to be re-jigged. As an example, in all countries in Africa,
the signal coverage 2G/3G etc is  30-40% more  than penetration , the same
case for fibre - there are more homes 'passed' than connected . Cost is not
the only factor  affecting use,  indeed empirical research for the
communities  that can afford the challenge is use value. Content,
applications  and dynamics of the demand side are  very important . I would
like to understand A4AI is incorporating demand side component in its
strategy . The consumer should not be a passive  bystander in your strategy 

Cheers 
MM

-----Original Message-----
From: kictanet
[mailto:kictanet-bounces+muriukimureithi9=gmail.com at lists.kictanet.or.ke] On
Behalf Of Bitange Ndemo
Sent: 09 October 2013 20:21
To: muriukimureithi9 at gmail.com
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Bringing down the cost of Internet

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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