Transcript An Alternative, Practical, Plus Sustainable Approach to

An Alternative, Practical,
Plus Sustainable Approach to
Addressing the Digital Divide
Presented by: Cliff Court
22nd February 2006
Contents
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Digital Divide definition
Current initiatives
What’s the actual issue?
Proposed new approach
Challenges it presents
Discussion and feedback
Digital Divide Definition(s)
• First coined by Dr Simon Moores in 1996
• “The socio-economic gap between communities
in their access to computers and the Internet”
• No clear definition that can divide society into
two distinct groups
• Importance of the Divide
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Civil equality
Social mobility
Democracy
Economic growth
Current Initiatives
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$100 laptop from MIT
Simputer in India
Nivo from Ndiyo
Refurbished PCs from
computers4africa.org
• Bicycle-powered PCs in
Laos village
• PCtvt – Carnegie Mellon
• Telemedicine in the Amazon – Madrid
University
What’s the Actual Issue?
• The provision of cheap technology does not
directly benefit a community
• With Internet access, it does provide a new
window of knowledge
• How do users pay for ongoing access?
• How does such technology and access actually
improve their lives?
• What is really needed is initiation and promotion
of new economic activity in Divided communities
A New Approach
• Begin with the end in mind – generation of
sustainable new economic activity
• Must include upliftment of social services
• Not yet tested in any way
• Accommodates social realities and
requirements – but must be able to pay for
it on an ongoing basis
A New Approach
Trade/Ability to transact economically
Financial/banking services
Social Services
Affordable/Cheap Communication
New Approach
• Four tiers
• Affordable communication – foundation to
everything
• Social services – a better channel to reach those
that are traditionally hard to reach
• Financial tier – banking the un-banked
• Access to trade channels – entrepreneurs exist
everywhere – but often do not have the mechanisms
to execute
Tier 1 – Affordable
Communications
• The most basic enabler of economic activity is
communication between parties
• Communications in ‘Divide’ areas has typically
been hard or non-existent – until cell phones
came along
• Cell voice calls are expensive and SMS’s are
very limited
• GPRS is suggested as the current ‘answer’ to
providing affordable communications (in SA, was
R50 per MB, now as low as R1 per MB)
• Low-cost mobile data channel will allow useful
levels of communication for personal and
business use
Tier 2 – Social Services
• Where a channel exists to ‘Divided’ peoples, it
should be used for social benefit
• Social services will be dispensed using the new
Tier-1 communication channel
• Services include:
• eHealth – HIV/AIDS, malaria, TB, local epidemic, vaccination info
• eAgriculture – planting, harvesting, market price info
• eGovernment – voting, tax, services info
• Services are customised based on location and
regional languages
Tier 3 – Financial/Banking Services
• Majority of African banking services are
problematic
• A trustworthy, borderless financial service provider
or bank is needed
• Due to migrant labour, the need to transfer money
‘back home’ is important
• Any trade that does occur will require financial
‘comfort’ for both parties
• Microloans are a key instrument of initiating
economic activity in a community
• The Tier 1 communication layer should be used to
access such financial services
Tier 4 – Trade/Economic Activity
• With the Tier 1 communication and Tier 3
banking services in place, trade is enabled
between distant parties
• ‘Divides’ can now promote their wares and
interact with potential buyers i.e. as sellers
• ‘Divides’ can now also have contact with
suppliers of raw materials i.e. as buyers
• Tier 4 is the ultimate goal of the bridging the
divide – enabling new economic activity
The Proposed Model
• Yet another device – but with special
considerations
• Use of GPRS mobile data channel
• Built-in social services applications
• Built-in mobile banking account – access to
virtual bank at no cost
• Built-in email, web browsing, IM
• Free submission of products to ‘Africa’ web
trade portal
• Wherever possible, use tried and proven models
to reduce risk
The Device
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Based on Hiptop device from Danger Research
GSM/GPRS device – use normal mobile operators
Intelligent but very thin client
Licenceable technology for cheap manufacture
Customisable with Java applications
Camera
Email
Instant Messenger
‘Proper’ Web Browser
Key Device Issues
• Device must be ultra-efficient in use of
bandwidth – both for cost of data and load on
network operators
• Customisable for multiple languages and locales
• OTA updatable
• Content ‘push’ capability is critical
• Content auto-formatted (and compressed) for
form factor
• Device is the Tier 1 solution – useful
communication at affordable cost
Provision of Social Services
• Engage suitably skilled NGOs for each of the
service envisaged
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eHealth
eAgriculture
eGovernment
Others…
• Use device ‘push’ capability and local language
support in order to reach widest audience
• No cost to recipient for these services
• This provides the Tier 2 requirement
Virtual Bank – ‘African PayPal’
• Based on eBay’s PayPal virtual bank model
• PayPal info
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96 million accounts
55 countries
High security
Person-to-person transfer/Person-to-business transfer
• ‘AfPal’ account built into device with rich transactional
functionality
• AfPal provides trustworthy financial services and low
transactional costs
• Virtual bank hosted in S Africa or Europe
• ‘On ramp’ and ‘Off ramp’ provided through traditional
banks
• This provides the Tier 3 requirement
Web Trade Portal
• Free, catagorised access for device users to promote
manufactured goods
• Goods are submitted with photo from camera, short
description and price wanted
• Portal staff format submissions for web site
• Any purchases can be made through traditional web
transaction (credit card)
• Revenues are transferred directly to seller’s AfPal
account
• Portal can be used for purchase of raw materials for
manufacturers or through normal web browser
• Substantive difference to the ‘Divide’ is now achieved as
new economic activity is enabled with Tier 4 in place
The Model
Content
Providers
GPRS
Medical NGO
Markets and
sells goods
pay taxes
Government NGO
Content collation
system
Divided
SME Manufacturer
Content Push
System
Receives monies
Health services
Agriculture NGO
Central
Operations
Supplier on
Internet
Divided
Communities
Mobile
Operators
Web Trade
Portal
Sends money
home
Migrant worker
AfPal Virtual
Bank
Interne
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Links to
Other
banks
Buyer on
Internet
Challenges
• Where’s the money?
• Who is the target?
• How can they afford the device and ongoing access?
• Hang on! You said it was sustainable!
• If AfPal is needed because other banks
are not trustworthy, how can you rely on
them as on and off ramps?
• What’s next?
Discussion and Feedback
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Why is this a non-starter?
What are the show-stoppers?
How would you do it?
Where would you go for funding?
Is this worth more research within UCT?
Many thanks for
your time today!
Cliff Court
Email: [email protected]