[kictanet] Bringing down the cost of Internet

[Kivuva]

At the concluded African Internet Governance Forum in Nairobi, we had
some very fruitful discussion on increased Access, and ways to bring
the prices down.
Some of the key areas identified across Africa were:
1. Proper use and monitoring of USF. Some providers in Kenya play
mischief by asking to be exempted from USF so that they can run
community based projects. Let funds ment for USF go to that kitty
without any exceptions.
2. Sharing of resources by service providers. Masts, fibre cable,
e.t.c. The end user will foot the bill if every provider has to
compete laying infrastructure that has less than 10% utilization
overall
3. Governments to allow competitors ride on infrastructure setup
through taxpayers. This is more so through the legacy Telecom
monopolies that litter the landscape across Africa, some with excess
resources and power.
4. Energy. There cannot be access without availability of electricity
in whichever form. Computer laboratories through solar farms were some
of the suggestions.
5. Education. Can we loop in more users who appreciate the value of
the internet and how it can improve their lives?
6. Content. Develop relevant content that users will feel the need to consume.
7. Move from talking to acting.

Others who were present like Mr. Poncelet can add into this.

Regards

On 09/10/2013, 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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Mwendwa Kivuva
twitter.com/lordmwesh
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