Transcript UNIVERSAL ACCESS STUDY/FUND

NATIONAL ICT
CONVENTION
UNIVERSAL ACCESS AS A
MEDIUM-TERM STRATEGY
FOR ICT.
PRESENTATION BY
Mr. ALEX KAHINDI
CCK
24th March 2004
SAFARI PARK HOTEL
Universal Access



Until recently the concept of Universal Access was
limited to access to a telephone line. However, this has
now changed and is now defined as “community access
to affordable and efficient information and
communications facilities”.
It entails a deliberate effort by governments and
regulatory authorities to make communication services
available at affordable prices, to as many people as
possible through such facilities as community
telecentres, public call offices (telebureaus, public pay
phones, etc).
Universal Access also includes provision of advanced
services such as Internet, tele-education, telemedicine,
etc.
Universal Service



Universal Service refers to household access to
telephone services.
Universal service policies are more commonly
found in developed countries.
Universal service is aimed at increasing the
number of individual residences with infocommunication services, including those in
rural, remote and high cost locations.
Access Gaps




In developing countries, Universal Access as opposed
to Universal Service is the most feasible way of
dealing with access gaps that exist.
In Kenya as in most developing countries, two access
gaps are identifiable i.e. market efficiency gap and
true access gap.
The market efficiency gap can be bridged through
legislation and policy interventions.
On the other hand, the true access gap can only be
addressed through mobilizing additional investments
e.g. through Universal Access Fund and similar
mechanisms.
Successful Funds



Universal Access Funds have been established in
many different countries across the world. Some of
the most successful funds are in Latin America.
In Chile for example, the fund has enabled the
country to reduce the access gap from 15 per cent in
1995 to 1 percent in 2000.
In Africa, rural communication development is
becoming a reality in some countries like South
Africa, Nigeria and Uganda where the respective
Governments through donor assistance have
established Universal Access Funds
Sources of Funds





Direct funding from general government revenues (e.g. between 1995 – 2000,
the Government of Chile allocated a total of US$ 2.8 million for rural
communication).
Contribution from telecommunications operators (e.g. 0.16 % and 1% of
operators’ gross revenue in South Africa and Uganda respectively).
Proceeds from telecommunications privatization, spectrum auctions and/or
license/concession payment, etc.(e.g in Colombia and Bolivia).
A subscriber levy (e.g. on per access line basis) collected by telecommunications
operators (e.g.in Costa Rica and Dominican Republic).
Funding from international development agencies (e.g World Bank provided
seed capital in Uganda, Nigeria, Nepal, Bolivia and Nicaragua)
Other Access Mechanisms

Market based reforms: privatization, competition and cost-based pricing.
 Mandatory service obligation: imposed by license conditions or other
regulatory measures.
 Cross subsidies: between or within services provided by incumbent operators.
 Access Deficit Charges: paid by telecommunication operators to subsidize the
access deficit of the incumbent.
Situation in Kenya


Telecommunication
 TKL like PCK is mandated with the provision of USO.
 TKL has exchange capacity of 492,222 but only 70 % is utilized.
 In order to meet the Government’s teledensity objective, the
Commission has licensed one RTO, two local loop operators and in
the process of licensing the second National Operator to spread the
services.
 Two licensed mobile operators with a coverage of about of 50% of
the population but only 2.2 million subscribers have been connected
(or mobile teledensity of 7 per cent).
 A third mobile operator will be licensed soon. This may lower the
cost and increase coverage to other areas.
Information Technology
 In 2003 there were only 252,000 computers in the country (0.76 computers
per 100 persons) .
 There are about 80 ISPs in the country with local nodes in about 14 towns.
 550,000 Internet users in the country (90 % in Nairobi).
 The government is in the process of developing an ICT policy to improve the
sector.
Universal Access Project
Collaborative funding of US$ 220,000 between CCK and IDRC.
Objectives of the Project
The main objective of the study is to conduct research and consultations leading
to the definition and articulation of a policy, plan and mechanisms for Universal
Access (UA) strategy for the country’s communication sector
The Project will specifically aim at: Conducting research to support the definition of the overall policy goal and
interrelation of the fundamental sector policy, universal access policy,
regulatory and financial mechanisms including interconnection.
 Establishing rural demand and user preferences by undertaking a baseline
survey.
 Conducting market assessment and articulate/recommend supply strategy.
 Proposing/recommending mechanisms and strategies for the realization of
Universal Access
Progress
 The Project officially commenced on 8th December 2003 and runs until July
2004.
 First stakeholders workshop was held on 4th February 2004.

Linkages to other Projects
 Education and Human Capital Development (KENET, SchoolNet,





Kenya National Library Services)
Environment and Natural Resources Management.
Rural Financial Services (Pride Africa, Post Bank, K-Rep, etc).
Health (Rural Clinic, Community Health Services, Telemedicine)
Rural Communications Projects through telecenters.
Conclusion
The development of universal access strategies, the creation of and
operationalization of a Universal Access Fund hold a tremendous promise
for the country, particularly for the majority of Kenyans (80%) who live
in the rural areas. As indicated earlier, the overriding objective of UA
initiative is to expand and maintain availability of affordable
communication services to those who would otherwise not be served and
ensure that all communities draw maximum benefits from these services.
The results of the Universal Access study will therefore go a long way in
the realization and convergence of the various ICT initiatives .