Road to Broadband Development in Developing Countries is through Competition Driven by Wireless and VoIP, The

In October 2005, the Annenberg Research Network on International Communication (ARNIC) at the University of Southern California (USA) held a workshop - "Wireless Communication and Development: A Global Perspective" - as part of a multi-disciplinary effort to study the emergence of new communication infrastructures, examine the transformation of government policies and communication patterns, and analyse the social and economic consequences.

Among the papers presented at the event was this one, by Francisco J. Proenza of the Food and Agriculture Organisation (FAO). In it, he provides an overview of the "significant role of Wireless and VoIP [Voice-Over-Internet Protocol] technologies in expanding low cost ICT services to rural communities in developing countries, highlights the importance of competition between rivalrous networks to increase investment in telecommunications, identifies regulatory and governance obstacles that need to be overcome, and outlines some strategic considerations for crafting donor and government interventions aimed at expanding rural broadband service."

Proenza argues that VoIP and wireless technologies "are radically transforming the telecommunications sector. By enabling rapid low cost deployment of service to traditionally underserved populations and expanding backhaul and last mile connectivity options, wireless technologies are making it easier for new competitors to arise and begin to challenge the traditional dominance of circuit switch operators..." Along these lines, fostering interactive services is a key strategy to address poverty; for Proenza: voice, chatting, videoconferencing, and short message service (SMS) "are fundamental to rural development. Rural people rely on a complex web of neighbors, public officials, associates, and friends, to obtain valuable and reliable information about income earning opportunities and better technology. Personalized attention, personal knowledge, confidence, and frequent interaction are fundamental to the sustainability and success of these networks in bringing about technology transfer and social and economic change..."

He goes on to cite some figures that indicate how valuable VoIP is to low-income users in developing countries. Peru, for example, has a network of about 5,000 cabinas públicas (cybercafés). Proenza reports that most of Lima's Internet users - 88% of those aged 8-70 - connect to the internet through these cabinas, and that 93% percent of low income users rely on these cabinas to connect to the internet. VoIP is used broadly by all income class users of cabinas públicas, Proenza notes, but is most highly prized by low-income users: "Vinueza and Rodríguez (2004) estimated there were 166 formally registered cybercafés in Quito in 2003. Cybercafés are also commonplace in Guayaquil and are also found in Ecuador's larger towns."

Proenza speculates that wireless technologies are going to play an increasingly prominent role in the expansion of rural telecommunications networks in developing countries. These technologies "have cost advantages for rural service and, perhaps more important, they are better suited to service the demand requirements of rural low income communities sustainably..." He notes that, where terrain allows relatively low cost of deployment of mobile base stations, e.g. in island countries like Jamaica and Sri Lanka, mobile telephony has penetrated rural areas very rapidly. New skills are not required in order to use a mobile phone, and mobile telephony's cellular form of deployment facilitate local communications and reinforce local networks.

The author notes that digital literacy campaigns are increasingly becoming "part of successful national efforts to further ICT development." For instance, "in Korea, Government carried out mass media informatization campaigns (Park [2001]) and established Education Information Centers in schools and post offices, used to provided free or low cost information education to an estimated 10 million people, mainly students, government staff, soldiers and housewives (Lee [2002]). In Chile, the country's national digital literacy campaign (Gobierno de Chile [2004]) provides for digital literacy training of 500,000 people in 2003-2005....The program runs in parallel with its telecenter program and includes digital literacy training to users of public library telecenter users...as well as specific efforts directed at farmers..."

In at least one case study that the author shares, participation is a key strategy for putting wireless and VoIP technologies into the hands of consumers, small companies and social activists. He references a project being carried out by the Department of Electrical Engineering of IIT-Madras and its research group, whose aim is to bring information and communication technology (ICT) services to all of India's villages as part of an effort to develop applications that add value to the ICT experience of low-income rural users and incubation of business enterprises. "The program relies on local initiative, and involves not only public schools but also qualifying private schools."

Build up of stakeholder capacity - "to broaden effective lobbying and increase competition at the edge" - is one of the communication-focused strategies discussed here. While "donor efforts to increase developing country expertise and understanding of regulatory issues include international training events, conferences, and forums" are "commendable", Proenza stresses that "the mores and norms that determine political and regulatory behavior take shape in national contexts". He cites 3 interventions with the potential to contribute to buildup of national constituencies that can speak up in an informed and qualified fashion in the interest of consumers and of small operators:

1. Training in wireless networking, including administration and management of
   sustainable networks.
2. Local wireless network projects that increase competition at the edge, filling a
   gap in rural broadband service;
3. Local observatories of "hot topics in telecommunications regulation, through
   which informed exchange, analysis and debate about regulatory issues takes place, and, whenever appropriate, incumbents, politicians and regulators are called to task..."

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