full report - Commonwealth Telecommunications Organisation

COMARCI 

COMMONWEALTH AFRICAN RURAL 

CONNECTIVITY INITIATIVE 

The Commonwealth African 

Rural Connectivity Report

THE COMMONWEALTH AFRICAN 

RURAL CONNECTIVITY REPORT

Table of Contents 

2 

Acknowledgements 5 

Glossary 8 

Executive Summary 10 

A) National ICT Strategies for Rural Connectivity 10 

B) Liberalisation, Competition, 10 

Independent Regulation and their Impact 

on Rural Connectivity 

C) Technological Convergence 11 

and the Opportunities for Rural Connectivity 

D) Implementing Universal Access Regimes 11 

to Accelerate Rural Connectivity 

E) Harnessing Innovative 12 

and Cost-Effective Technology 

F) The Need for Human Capacity Building 12 

for Rural Connectivity 

G) Enhanced Role of ICT Consumers 12 

and Stakeholders 

H) Partnerships for Rural Connectivity 12 

1. Rural Connectivity in Commonwealth Africa 14 

1.1 Introduction 14 

1.2 Background 14 

1.3 The Global Context 16 

1.4 Rationale 16 

1.5Goals and Objectives 17 

1.6 Note on the Definition of Rural 17 

2. Rural Connectivity as Policy 18 

2.1 Rural Connectivity 18 

in the Global ICT4D Agenda 

2.2 National e-Strategies 18 


2.2.1 ICT strategy mainstreamed with 19 

the wider development agenda 

2.2.2 Specific rural connectivity targets 19 

2.2.3 The merits of PPPPs 20 

and local ownership 

2.2.4 Coordinate the various 22 

ICT initiatives 

2.2.5Enable a competitive environment 22 

for ICT service providers 

2.2.6 Promote human capacity building 24 

to effectively use ICTs 


RURAL CONNECTIVITY REPORT 

2.3 Case Studies of Rural Connectivity 24 

Policy in Commonwealth Africa 

2.3.1 Rural connectivity 27 

as policy in Botswana 

2.3.2 Rural connectivity as policy 27 

in Ghana 

2.3.3 Rural connectivity as policy 28 

in Kenya 

2.4 Policy Lessons Learnt 31 

2.5Policy Role of ICT 31 

Implementation Agencies 

3. Legislating and Regulating in Support 33 

of Rural Connectivity 

3.1 Rural Connectivity Legislation 33 

and Regulation in the Comparator 

Countries 

3.1.1 Legislation and converged 37 

regulation the comparator 

countries 

3.1.2 Regulatory mechanisms 38 

to promote competition in 

the U.S. 

3.1.3 Legislating for and regulating 39 

universal service in the comparator 

countries 

3.2 Rural Connectivity Legislation 40 

and Regulation in Commonwealth 

Africa 

3.2.1 Legislating for an independent 44 

regulator in Commonwealth Africa 

3.2.2 Legislating for converged 44 

regulation in Commonwealth Africa 

3.2.3 Legislating for competition, 45 

interconnection, tariffs 

and spectrum 

3.2.4 Universal Service 46 

and Access Funds in 

Commonwealth Africa



4. How Operating Companies Approach 48 

the Rural Challenge 

4.1 Operators Drive Rural Connectivity 48 

in Partnership 

4.1.1 Public-private partnerships 48 

facilitated by USFs 

4.1.2 A multi-stakeholder partnership 48 

targeting NGOs in India 

4.1.3 Partnering with competing 48 

operators to share infrastructure 

4.1.4 Community ownership and 49 

education initiatives 

4.2 How Liberalisation, Competition 49 

and Privatisation Drive Operators 

to Connect Rural Areas 

4.2.1 Case study: Effect of liberalisation 50 

in Kenya 

4.2.2 Technology-neutral licensing 50 

regime sparks competition and 

drives rural connectivity in Botswana 

4.2.3 Competition from VOIP drives 51 

telecom operators to innovate 

4.2.4 Competition drives operators 51 

to expand into regional markets 

4.3 Licence Conditions and Rollout 52 

Obligationsas Drivers of Rural 

Connectivity 

4.3.1 Meeting the licence obligations 52 

4.3.2 Failing to meet the 52 

licence obligations 

4.4 Impact of Interconnection 53 

and Tariff Policies on Penetration 

4.4.1 Operators’ interconnection policies 53 

4.4.2 Operators’ tariff policies 53 

5. Technology and the Rural Divide 55 

5.1 Wireless Technologies (Mobile/Cellular) 55 

5.2 Fixed-Wireless Networks 57 

5.2.1 Wireless local loops (WLL) 57 

5.2.2 Wi-Max 57 

5.3 Wireless Mesh 57 

5.4 Satellites (VSAT / Terrestrial) 58 

5.5 Internet Telephony 59 

5.6 Power Line Communication / 59 

Broadband over Power Lines 


5.7 Power and Electricity Availability 60 

and Rural Connectivity 

5.8 Renewable Energy Alternatives 60 

6. Building Human Capacity 61 


6.1 Building Rural Demand 61 

for ICT Services 

6.2 Status of Human Capital in the 61 

18 African Commonwealth Countries 

6.3 Examples of Training and Capacity 62 

Building Efforts/Initiatives 

6.3.1 Capacity building by bus 62 

6.3.2 SchoolNet 62 

6.3.3 The NEPAD e-Schools Initiative 63 

6.4 Needs/Gap Analysis with Respect 63 

to Human Capacity for Rural 

Connectivity 

7. Financing Rural Connectivity 65 

7.1 The Challenge of Rural Connectivity 65 

7.2 Government Funding 65 

7.3 Multilateral Development Partners 66 

7.3.1 The World Bank Group 66 

7.3.2 The African Development Bank 69 

7.3.3 International Telecommunication 69 

Union 

7.3.4 The European Commission 69 

7.3.5Development Bank 69 

of Southern Africa 

7.4 Bi-Lateral sponsors 69 

7.5The Private Sector 71 

7.6 Financial Institutions 71 

7.6.1 The Africa Finance Corporation 71 

7.6.2 Frontier Markets Fund Managers 72 

7.7 Microfinance Institutions 72 

7.8 NGOs and Private Philanthropy 73 

7.9 Universal Service and Access Funds 73 

7.10 The Digital Solidarity Fund (DSF) 74 

3


4 

8. ICT Consumers, Stakeholders 75 

and Rural Connectivity 

8.1 Role of e-Governance 75 

and Local Governments 

8.2 Post Offices 75 

8.3 Educational Institutions 76 

8.4 Medical Establishments 76 

8.5Agricultural Businesses 76 

8.6 Banks and Money Transfer Schemes 77 

8.7 CBOs and Civil Society 78 

8.8 Others 78 

9. Conclusions 79 

9.1 Recommendations to Stakeholders 79 

9.2 Criteria for the Selection of 80 

“Winning” ICT Pilot Projects 

9.3 The 10 “Winning” ICT Pilot Projects 81 

9.3.1 Motorola / Seaside 81 

Communications Rural Broadband, 

Nova Scotia, Canada 

9.3.2 NYnet Rural Broadband, 81 

North Yorkshire, UK 

9.3.3 Nokia Siemens Networks 81 

Village Connection, India 

9.3.4 Village Phone Uganda 81 

9.3.5Vodacom Community Services 82 

Phone Shops, South Africa 

9.3.6 Ghana eCare 82 

9.3.7 Ericsson Gramjyoti Rural 82 

Broadband Project, India 

9.3.8 Cyber Coaches and Caravans, 82 

Malaysia and Mauritius 

9.3.9 Vodacom and the Tanzania 83 

Agricultural Marketing Systems 

Development Programme 

9.3.10 Mobile Banking / M-PESA 83 

Model, Kenya 

9.4 The Way Forward 83 



COMARCI Bibliography 84 

Annex 1. Rural Connectivity in Commonwealth 

Africa: Comparator Country Profiles 

A1 Australia 100 

A2 Canada 106 

A3 India 109 

A4 Malaysia 118 

A5United States 126 

Annex 2. Rural Connectivity in Commonwealth 

Africa: African Country Profiles 

A6 Botswana 133 

A7 Cameroon 138 

A8 The Gambia 142 

A9 Ghana 145 

A10 Kenya 152 

A11 Lesotho 157 

A12 Malawi 163 

A13 Mauritius 169 

A14 Mozambique 174 

A15Namibia 179 

A16 Nigeria 184 

A17 Seychelles 189 

A18 Sierra Leone 193 

A19 South Africa 195 

A20 Swaziland 203 

A21 Tanzania 208 

A22 Uganda 215 

A23 Zambia 224

Acknowledgements 



In the spirit of public private peoples partnerships, this report is the product of a nine-month collaboration between a number 

of Commonwealth ministries responsible for telecommunications, Information and Communication Technologies (ICTs), 

regulatory authorities, universal service and access agencies, telecommunications service providers, the international donor 

community and the academic community. 

The Commonwealth African Rural Connectivity Initiative (COMARCI) and this report would not have been possible without 

the enthusiastic and tireless work of a large number of editors, in-country researchers, financial supporters and partner 

organisations. 

The Commonwealth Telecommunications Organisation (CTO) takes this opportunity to acknowledge and thank all those who 

contributed to this ongoing research effort. They include: 

The COMARCI Editorial Board 

Mr. Vishnu Calindi Telecommunications Development 

Bureau, International 

Telecommunications Union 

Dr. Rahul Tongia Carnegie Mellon University, USA 

Dr. Peter Ross Griffith University, Australia 

Dr. Jyrki Pulkkinen Information Society for 

Development, Ministry for Foreign 

Affairs of Finland 

Dr. Lawrence British Institute of Technology 

Akwetey and E-Commerce, UK 

Ms. Dot Field Vodacom Group Pty Ltd. 

Thanks also are extended to the Commonwealth Connects Steering Committee, then Chaired by the (former) Foreign Minister 

of Malta, Mr. Michael Frendo, and hosted by the Commonwealth Secretariat, for adopting this initiative. Appreciation goes 

to the following entities that have provided financial support to make this research and initiative possible: 

j The Government of Malta 

j BT Global Services 

j Telkom SA 

j Vodacom (Pty) Ltd 

5

6 



The wide breadth of research could not have been possible without the contributions and support from our member African 

Commonwealth countries. Particular acknowledgement is due to the following: 

Mr. Jericho Keletso Public Relations Officer, BTA, 

Botswana 

Mr. Gabriel Ndow Director, Policy, Strategy and 

Consumer Affairs, PURA, 

The Gambia 

Johanna E. Awotwi Director of Research, Centre 

for e-Governance, Ghana 

Mr. Pierre Kwaku FIMIS, Ghana 

Mr. Charles Internet Research Analyst, 

Amega-Selorm Centre for e-Governance, 

Ghana 

Mr. Ainsoh Manager International Affairs, 

Ghana Telecom 

Mr. Abraham Administrator, Ghana 

Kofi Asante Investment Fund for 

Telecommunications 

Mr. Phillip Prempeh Business Development 

Manager, Ghana Investment 

Fund for Telecommunications 

Mr. David Maldima CEO, Netafrique.com, Ghana 

Mr. Steve Gale MBCS 

Mr. Christopher Bennet 

Ms. Patience Accolor MSc, Dip M(UK) 

Ms. Hazel Mafatle Manager Communications 

Development, Lesotho 

Mr. Pearson ICT Development Manager, 

Kachepatsonga Malawi 

Mr. Vik Bhoyroo Assistant Manager and Head 

of the ICT Culture Promotion 

Division, Mauritius 

Dr. Magda Vercickt UNDP Senior Programme 

Manager, Mauritius 

Ms. Nariman Nabee UNDP, Mauritius 

Sr. Luis Jose Rego Director General, Instituto 

Nacional das Comunicações 

de Moçambique 

Mrs. Ibukun Odusote Ag Director, Information 

Technology Department, 

Ministry of Information 

and Communication, Nigeria 

Mr. Bashir Ayodeji Idris Assistant Director, Economic 

Analysis and Corporate 

Planning, NCC, Nigeria 

Mr. V. E. Idehen Assistant Director, Policy and 

Strategy, Universal Service 

Provision Fund, Nigeria 

Dr. George Ah-Thew Director General of 

Communications, 

The Seychelles 

Mr. Aubrey Mathinjwa Manager, USAASA, 

South Africa 

Mr. Dlamini Amon General Manager, 

SwaziTelecom, Swaziland 

Mr. Samson Mwela Executive Engineer, Tanzania 

Mr. Bob Lyazi Fund Manager, Rural 

Communications Development 

Fund, Uganda 

Mr. Moses Okello Project Coordinator, Rural 

Communications Development 

Fund, Uganda 

Mr. Katwamba Mwanza Deputy CEO, Communications 

Authority, Zambia 

Mr. Lotty Kabuko Director International and 

Public Relations, 

Communications Authority, 

Zambia



Supporting Partner Organisations of the CTO 

jThe Commonwealth Secretariat 

jThe Commonwealth Business Council 

jThe Commonwealth Broadcasting Association 

Supporting Member Entities of the CTO 

j Ministry of Communications, Nigeria 

j Bangladesh Telegraph & Telephone Board 

j Telecommunications Regulatory Commission 

of Sri Lanka 

j Pakistan Telecommunications Company Ltd 

j Fiji International Telecommunications Ltd (FINTEL) 

j Office of Utilities Regulation, Jamaica 

j Telecom Commission, Department of 

Telecommunications, India 

j Zambia Telecommunications Company Ltd 

j Telecom Vanuatu Ltd 

j Malawi Communications Regulatory Authority 

(MACRA) 

j Ministry of Communications and Competitiveness 

of Malta 

j Gambia Telecommunications Company Ltd 

j Mozambique Cellular Nigerian Communications 

Commission 

j Swaziland Posts & Telecommunications Corporation 

j Dept of Communications, South Africa 

j Government of Barbados 

j Ministry of Communications, Ghana 

j Cable and Wireless (Seychelles) Ltd 

j Ghana Telecoms 

Within the CTO, the staff who have worked in the research 

and production of this report include Bashir Patel, Lasantha 

de Alwis, Kojo Boakye, Rosemary Forest and Salim Binbrek. 

Special thanks go to Ms. Deborah Miller, Research Associate 

at the CTO, for most of the work in coordinating the research 

effort, and for writing and editing vast sections of the report. 

j The Commonwealth Network for Information 

Technology 

j The International Telecommunication Union 

j Tanzania Communications RegulatoryAuthority 

j Ministry of Information Technology and 

Telecommunications, Mauritius 

j UK Office of Communications 

j Lesotho Telecommunications Authority 

j Ministry of Public Works and Communications, 

Guyana 

j Uganda Communications Commission 

j Tanzania Telecommunications Co Ltd 

j Telekom Malaysia Berhad 

j Department of Electronic Communications of the 

Ministry of Communications & Works, Cyprus 

j Solomon Telekom Company Ltd 

j Communications Commission of Kenya 

j Sierra Leone Telecommunications Co Ltd 

j Botswana Telecommunications Authority SENTECH, 

South Africa 

j Post & Telecommunications Corp., Papua New Guinea 

j Telkom South Africa 

j The Government of Canada 

j The Telecom Regulatory Board of Cameroon 

j The Government of Trinidad and Tobago 

COMARCI is the brainchild of the nocturnal reflections of 

the CEO of the CTO, Dr. Ekwow Spio-Garbrah, whose initial 

ideas on the subject of rural communication were the basis 

of a paper on Rural Tele-Coop presented to and approved by 

the CTO Council, in Colombo, Sri Lanka, in September 2004. 

Under his guidance, the CTO has also organised a series of 

rural communications conferences in Africa and Asia, to 

continue to focus sustained attention to this important 

remaining divide in ICT access in the developing world. 

7

Glossary of Acronyms 

3G Third Generation Mobile Technology 

ADB African Development Bank 

AMSDP Agricultural Marketing Systems Development 

Programme, Tanzania 

AUSAID Australia Agency for International Development 

AUU Association of African Universities 

BCO Building Communication Opportunities 

BDO Building Digital Opportunities 

BOCODOL Botswana College of Distance and Open Learning 

BPL Broadband Over Power Line 

BSNL Bharat Sanchar Nigam Ltd. 

BOTEC Botswana Technology Centre 

BTA Botswana Telecommunications Authority 

BTC Botswana Telecommunications Corporation 

CAP Community Access Programme, Canada 

CATIA Catalysing Access to ICT in Africa 

CIDA Canadian International Development Agency 

CBO Community-Based Organisation 

COMETES Technological Higher Education Institutions 

in Cameroon 

CCK Communications Commission of Kenya 

CDMA Code Division Multiple Access 

COL Commonwealth of Learning 

COMARCI Commonwealth African Rural Connectivity Initiative 

CRTC Canadian Radio-television and Telecommunications 

Commission 

CSIR Council for Scientific and Industrial Research 

CTO Commonwealth Telecommunications Organisation 

CSTS Cyber School Technology Solutions 

DBSA Development Bank of Southern Africa 

DFID Department for International Development, UK 

DOT Department of Telecommunications, India 

DRC The Democratic Republic of the Congo 

DSF Digital Solidarity Fund 

DSL Digital Subscriber Line 

EASSy East Africa Submarine Cable System 

ECOWAS Economic Community of West African States 

EDGE Enhanced Data Rates for GSM Evolution 

8 

EU European Union 



FCC Federal Communications Commission, United 

States 

FCS Foundation for Civil Society, Tanzania 

FET Further Education Training Institute, South Africa 

FWT Fixed Wireless Terminal 

G8 Group of Eight 

GAID Global Alliance for ICT and Development 

GCIS Government Communication and Information 

Services (GCIS) 

GIFTEL Ghana Investment Fund for Telecommunications 

GINKS Ghana Information Network for Knowledge Sharing 

GNI Gross Net Income 

GPOBA Global Partnership on Output-Based Aid 

GPRS Growth and Poverty Reduction Strategy 

GPRS General Packet Radio Service 

GSM Global System for Mobile Communications 

GSS Grameen Sanchar Sevak 

HHI Herfindahl-Hirschman Index 

HSPA High-Speed Packet Access 

HSDPA High-Speed Downlink Packet Access 

ICT Information and Communication Technology 

ICT4D Information and Communication Technology for 

Development 

ICTA Information and Communication Technology 

Authority, Mauritius 

ICASA Independent Communications Authority of South 

Africa 

IDRC International Development Research Centre 

IFC International Finance Corporation, World Bank 

IFDC International Centre for Soil Fertility and 

Agricultural Development 

ISDN Integrated Services Digital Network 

ISP Internet Service Provider 

IT Information Technology 

ITU International Telecommunication Union 

IXP Internet Exchange Point 

LDC Least Developed Country 

LOS Line of sight 

LRIC Long-Run Incremental Cost



MACRA Malawi Communications Regulatory Authority 

MCMC Malaysia Communications and Multimedia 

Commission 

MDGs Millennium Development Goals 

MIGA Multilateral Investment Guarantee Agency 

MIU Mobile Internet Unit, Malaysia 

MOE Ministry of Education, Malaysia 

M-PESA Mobile Money, Kenya 

MSC Multimedia Super Corridor, Malaysia 

MTNL Mahanagar Telephone Nigam Ltd. 

NCA National Communications Authority, Ghana 

NCB National Computer Board, Mauritius 

NEPAD New Economic Partnership for Africa’s Development 

IPPF Infrastructure Project Preparation Facility 

NGO Non-Governmental Organisation 

NITDA National Information Technology Development 

Agency, Nigeria 

NLOS Non Line of Sight 

NREN National Research and Education Networks 

NRTP National Rural Telephony Programme, Nigeria 

NTCA National Telecom Cooperative Association 

NTN Networking the Nation 

NTP New Telecom Policy (1999), India 

OECD Organisation for Economic Co-operation and 

Development 

OKN Open Knowledge Network 

PC Personal Computer 

PDA Personal Digital Assistant 

PLC Power Line Communications 

PPIAF Public-Private Infrastructure Advisory Facility 

PPP Public-Private Partnership 

PPPP Public Private Peoples Partnership 

PSTN Public Switched Telephone Network 

RASCOM Regional African Satellite Communications 

Organisation 

RCDF Regional Communications Development Fund 

RIC Remote Indigenous Community, Australia 

RCIP Regional Communications Infrastructure 

Programme, World Bank 

RBOC Regional Bell Operating Company 

RSWAN Rajasthan State Wide Area Network 

SIDA Swedish International Development Cooperation 

Agency 

SMS Short Message Service 

SNO Second National Operator 

TAPRIC Telecommunications Action Plan for Remote 

Indigenous Communities, Australia 

TCRA Tanzania Communications Regulatory Authority 

TMB Telekom Malaysia Berhad 

TRAI Telecommunications Regulatory Authority of India 

UA Unit of Account 

UNCTAD United Nations Conference on Trade and 

Development 

UNDP United Nations Development Programme 

UNECA United Nations Economic Commission for Africa 

UNESCAP United Nations Economic and Social Commission 

for Asia and the Pacific 

UNESCO United Nations Educational, Scientific and Cultural 

Organisation 

USAASA Universal Service and Access Agency of 

South Africa 

USAID United States Agency for International Development 

USAL Under-Served Area Licence 

USF Universal Service Fund 

USO Universal Service Obligation 

USOF Universal Service Obligation Fund, India 

USP Universal Service Programme 

VOIP Voice Over Internet Protocol 

VSAT Very Small Aperture Terminal 

VUSSC Virtual University for Small States of the 

Commonwealth 

WAP Wireless Application Protocol 

WATRA West African Telecommunications Regulators 

Association 

WI-FI Wireless Fidelity, based on IEEE 802.11 standard 

WI-MAX Worldwide Interoperability for Microwave Access, 

based on IEEE 802.16 standard 

W-LAN Wireless Local Area Network 

WLL Wireless Local Loop 

WSIS World Summit for the Information Society 

WTO World Trade Organisation 

9

Executive Summary 

The exigency of ensuring faster access to Information and 

Communication Technology (ICT) connectivity for most Africans 

is dictated by the need to ensure that Africa becomes fully 

part of the dynamic global knowledge society. Affordable use 

of ICTs in Africa is critical, not for the mere ability to conduct 

social intercourse by electronic means, or to improve the 

delivery of governmental and business services to isolated 

communities; rather, it is central to the core objective of 

empowering people through literacy, education, knowledge, 

employable skills, poverty reduction and wealth creation. It 

is these developmental objectives that have driven this report 

on the Commonwealth African Rural Connectivity Initiative 

(COMARCI). 

This study highlights numerous examples of how ICTs are 

already making a positive difference in the general development 

of rural communities in Commonwealth African countries. 

Notwithstanding these examples of visible success and 

progress, nowhere is access to and effective use of ICTs less 

pervasive and more needed than in the rural and isolated 

areas of sub-Saharan Africa. Fixed-line penetration in 

Commonwealth Africa has stagnated, and the existing 

infrastructure is concentrated in highly populated areas with 

perceived high return on investment, leaving the majority of 

rural areas totally unconnected. In fact, the International 

Telecommunications Union (ITU) estimates that some 55 

percent of the total population in rural sub-Saharan Africa 

is still without basic and effective telecommunications. 

However, the recent explosion in mobile telephony across 

the continent is evidence of the potential of mobile and 

innovative technologies to connect the millions of unconnected 

Africans. Mobile telephones already outnumber fixed lines 

by nine to one in sub-Saharan Africa, where mobile 

subscribership has grown an average of 52 percent per year 

from 2000 to 2006. As urban markets saturate, 

telecommunications operators have begun to look at rural 

communities as the source of new subscribers to maintain 

their impressive growth rates. 

At the same time, in countries where democracy and electoral 

politics are taking root, governments are keen to maintain 

their electability by encouraging the provision of basic services 

to the majority of the populace. 

For these reasons, African governments are making varying 

degrees of effort to ensure that ICT policy, legislation and 

regulation keep apace with the rapidly evolving 

telecommunications and ICT sector. Advancements in 

technology are blurring the line between broadcast and 

telecommunications services, while innovative technologies, 

financing schemes and business models are changing the 

way ICT stakeholders view the once-unprofitable rural 

communities. 

This research sheds light on how policies, trends and initiatives 

are either impeding or facilitating the process of improving 

rural connectivity in the 18 African Commonwealth countries. 

Moreover, best practices and lessons learnt are drawn from 

five selected, non-African, comparator countries, namely 

Australia, Canada, India, Malaysia and the United States, 

each selected because of the significant progress it has made 

in rural connectivity. 

10 



A) National ICT Strategies for Rural Connectivity 

The findings from this research support many of the action 

lines, regarding the creation and implementation of national 

ICT policies, or e-strategies, raised in the aftermath of the 

World Summit on the Information Society (WSIS). The 

comparator country experience suggests that national ICT 

strategies, which should be well integrated into the wider 

national development policy agenda, have been best 

implemented in partnership with the private sector and local 

communities. Moreover, national ICT policies should spell 

out specific provisions focusing on universal or rural access 

in order to solidify national commitment to the provision of 

basic telecommunications in areas where the market alone 

would not encourage investment. 

Now that Commonwealth African countries have made 

considerable progress in developing comprehensive ICT 

policies, these countries must ensure that their legislation 

and regulations are in harmony with their stated policy 

objectives. 

B) Liberalisation, Competition, Independent Regulation and 

their Impact on Rural Connectivity 

The research also supports the continued incremental and 

methodical process of liberalisation and privatisation of the 

telecommunications sector and the implementation of 

regulatory safeguards to foster competition thereafter. It is 

likewise imperative that countries establish an independent 

regulator, capable of establishing and enforcing impartial 

rules. Several of the regulatory authorities in Commonwealth 

Africa are still subject to direct oversight by the ICT Ministry, 

which can be particularly detrimental to competition and to 

an environment conducive to rural connectivity. This is a 

special challenge in those countries where the state still owns 

or has a significant financial stake in the incumbent operator. 

This report recognises that a number of tools are available 

to African regulators to promote competition and an enabling 

environment for universal access, ranging from mandating 

interconnection requirements, tariff structures and guidelines 

for spectrum management. It is up to the regulators-like 

referees in a sporting event-to have the courage to 

take necessary action, especially when any actor in the 

industry, including the government, is guilty of foul play. 

Incumbent fixed-line operators often have little incentive to 

allow new market entrants to access their networks at affordable 

interconnection rates. For rural areas, in particular, the 

economic viability of telecommunications depends on 

negotiating favourable interconnection terms, which reflect 

the substantially higher operation and maintenance costs of 

rural networks. Operators could also be encouraged to share 

infrastructure in order to reduce overall capital expenditure 

in rural connectivity rollout, through any number of policy 

and regulatory interventions, including preferential access to 

universal service funds or even tax credits. The research also 

finds that frequent interconnection disputes can delay 

the development of competition in the telecommunications 

sector, and legislation should therefore establish an 

independent dispute resolution body, either as a specialfunctions 

arm of the regulatory authority or as a separate 

entity.



Traditionally, telecommunications operators have crosssubsidised 

rural service, but economists now champion the 

virtues of tariff rebalancing so that prices of services reflect 

the underlying cost of providing the service. However, when 

operators rebalance their tariffs, regulators must have other 

tools in place to ensure the affordability of services in rural 

areas. For example, the regulator can give telecommunications 

operators some flexibility in setting prices by mandating an 

average price or range of prices for a basket of services. The 

operator can then choose to cross-subsidise services to rural 

areas on a slight scale but without distorting market prices 

too much. Alternatively, regulators can set price floors on 

services in the basket or place services in separate competitive 

and less competitive baskets. 

This report also encourages regulatory authorities to consider 

the allocation of spectrum for licence-free uses. The 

deployment of wireless local area networks (W-LANs) in the 

2.4GHz unlicensed band, for instance, has proven 

commercially successful and proves that unlicensed spectrum 

can open up opportunities for innovative technologies 

to provide more cost-effective services. The broadband 

deployment to rural communities in Nova Scotia, Canada, 

undertaken by Seaside Communications, used unlicensed 

spectrum ranging from 2.4 to 5.9 GHz and 90 MHz, and the 

service provider claims that the flexibility and cost-savings 

of using unlicensed spectrum is critical to the sustainability 

of its business model. 

C) Technological Convergence and the Opportunities for 

Rural Connectivity 

Technological convergence is increasingly playing a key role 

in competition and regulation of the telecommunications 

sector. The research illustrates how telecommunications and 

ICT service providers that operate in a converged regulatory 

environment can seamlessly deliver the services demanded 

by rural users with the most cost-effective technologies for 

rural deployment. 

When transitioning to a technology-neutral or unified licensing 

regime, each country must adapt its existing legal framework. 

Therefore, preferably, legislation should establish a single 

regulator with jurisdiction over both the telecommunications 

and broadcasting sectors, a single regulatory framework that 

applies to both sectors and a licensing regime that issues 

licences on a technology-neutral and service-neutral basis. 

The best timing and method of migration to a converged 

regulatory regime will be different for each country. For 

example, Kenya adopted a unified licensing framework in 

2004, permitting any communications technology to be used 

to provide any communications service. The former servicespecific 

licensing regime issued 46 different types of licences 

and the new regime is gradually being phased in during a 

transition period. Three licenses are now being issued, i.e. 

individual network operator licence, non-facility based service 

provider licence, and frequency licence, before completely 

migrating to the single unified license. India is migrating its 

technology-neutral regime to a fully unified one, which is 

expected to accelerate connectivity of rural communities. 

This research finds that national ICT strategies should aim 

to strike a balance between the provision of basic services 

and the provision of more advanced services, such as 

broadband, less rural communities be left further behind. 

The establishment of a converged licensing regime will also 

help drive this innovation and the provision of advanced 

services. 

CTO’s consultation with Indian stakeholders indicates that 

the lack of a fully unified licensing regime, which could 

facilitate the installation of a 3G network, for instance, is a 

key obstacle to the further development of the sector. Moreover, 

ICT stakeholders in India indicated that the requirement to 

apply for a special license to roll out a Wi-Max network was 

an impediment to further network rollout. 

In addition, with the phenomenal growth of mobile operators 

and the cost-efficiency of mobile technology for rural 

connectivity, the research finds that many of the incumbent 

fixed-line operators, who are excluded from operating wireless 

technologies, are at an inherent disadvantage. Therefore, 

technology-neutral regulatory regimes can also help create 

a level playing field among operators competing for universal 

service subsidies and/or universal service licences. 

D) Implementing Universal Access Regimes to Accelerate 


The report acknowledges that the 18 African Commonwealth 

countries are at different stages in the implementation of 

universal access policies. Ghana, Nigeria, South Africa and 

Uganda all have operational rural or universal access funds 

established in their respective telecommunications legislation. 

More countries, Kenya, Lesotho and Zambia, for example, 

have enacted legislation empowering their regulatory authorities 

to establish such a fund, but the authorities have yet to do 

so (or are still in the process of doing so). 

The research identifies a number of methods by which 

regulatory authorities can implement universal access regimes. 

Regulators often include universal service obligations in each 

operator’s licence and enforce penalties if the required targets 

are not met. However, in the view of the report, such licence 

obligations must be accurate and flexible to be effective. 

This research also highlights the virtue of technology-neutral 

licence obligations. 

Alternatively, universal access regimes can perhaps best be 

implemented through the competitive tender of universal 

service funds. This method has the added advantage of 

allocating subsidies to operators based on return on investment. 

Some operators may even determine that they require no 

subsidy at all in turn for the exclusive license for the 

underserved region. Gamos finds that telecom operators in 

Botswana, Ghana and Uganda tend to underestimate the 

demand and return on investment for network expansion 1 . 

Some potentially profitable expansion opportunities are 

considered commercially unviable, causing regulators to pay 

unnecessarily high subsidies for rollout in these areas and 

diverting universal service fund (USF) monies from areas 

where they are really required. 

For example, Ghana’s USF, the Ghana Investment Fund for 

Telecommunications (GIFTEL), provides basic communications 

and Internet services in rural areas by awarding grants on a 

non-commercial but competitive basis, with direct 

disbursements of up to US$50,000. These grants are awarded 

to applications relating to unserved rural areas or providing 

‘rural packages’ that aim to enhance access through public 

telephony kiosks or telecentres. Similarly, Australia and South 

Africa defined under-serviced areas and licensed fixed-line 

operators to provide service in each area. However, the underserviced 

areas licensees (USALs) are under increasing 

competitive pressure from mobile operators and the 

sustainability of the current USAL regime is uncertain unless 

modified to accommodate technology neutrality. 

1 Gamos, 2003. “Innovative Demand Models for Telecommunications Services” 

11

E) Harnessing Innovative and Cost-Effective Technology 

Many of the new technologies connecting rural communities 

around the world, especially those leveraging wireless and 

fixed wireless infrastructure are easier, quicker and cheaper 

to deploy than wired alternatives, meaning many rural 

communities now represent vast untapped markets 

for telecommunications and ICT operating companies. 

For example, wireless local loops (WLLs) can extend up to 

30km from the main network, and therefore reduce the 

investment required to provide wire based infrastructure in 

rural areas. The potential of Wi-Max has already been 

recognised by stakeholders across the continent. Many 

countries, such as South Africa, Kenya, Nigeria and the 

Democratic Republic of the Congo (DRC) have tested, and 

in many cases, rolled out Wi-Max on a commercial basis. 

The increasing use of wireless mesh technology across Africa 

is indicative of its applicability to rural connectivity and many 

communities are adapting the technology to create ad hoc 

chains of normal Wi-fi routers in order to multiply the reach 

of the signal. The main requirement for mesh networks is 

that each router in the chain can see the next, but in some 

instances rural communities are using mirrors to deflect 

signals when line of sight is not possible. 

At the May 2008 ITU Telecom Africa Conference in Cairo, 

the ITU stressed that infrastructure-sharing is particularly 

relevant in Africa, because of the critical need for increased 

investment in ICT facilities and lower access prices. This 

report encourages the sharing of telecommunications 

infrastructure among service providers in order to minimise 

duplication and share the initial capital costs of increasingly 

costly investments. For example, the Telecommunications 

Regulatory Authority of India (TRAI) has emphasised the 

need for cooperative efforts among telecom service providers 

to share infrastructure for faster rollout and higher quality 

of service. It recommended sharing of passive infrastructure, 

such as physical sites, towers and power supply, 

to the Department of Telecommunications and has also 

called for sharing of active and backhaul infrastructure. 

Despite the limited levels of electrification in the 18 African 

countries, advancements in technology and the success of 

recent pilot projects mean that power line communications 

(PLC) may help to increase connectivity in rural areas close 

to the power grid. The use of PLC in some of the comparator 

countries and the increasing number of electrification projects 

in countries such as Lesotho, Mozambique, Malawi, Namibia, 

Tanzania, Uganda and Zambia requires policymakers and 

regulators to encourage the technology’s potential for rural 

communications. 

F) The Need for Human Capacity Building for Rural 

Connectivity 

Operators cannot readily expand ICT infrastructure into Africa’s 

rural areas if there are inadequate numbers of ICT literates 

in the population to take advantage of services or shortages 

of skilled ICT technicians to perform basic installation, 

maintenance and repair of equipment. The gaps in general 

education and skills sets within most of Africa between urban 

and rural populations are to be felt in the ICT sector as well. 

There is a sizeable gap between the existing human capacity 

and that necessary to accelerate rural connectivity across 

Commonwealth Africa. The majority of urban-based universities 

in Commonwealth Africa lack adequate ICT hardware and 

endure poor access to affordable high-speed Internet 

connectivity. Many African secondary school leavers graduate 

without having used a computer. 

12 



By extension, rural schools are often even more ill-equipped 

and plagued with intermittent power supply, making 

ICT education and skills training next to impossible. 

Therefore, African ICT policy and implementation plans must 

address more urgently the need to build ICT human capacity. 

Although this impediment to rural rollout is well understood 

amongst African ICT policymakers, the current focus on ICT 

programme implementation still tends to focus on the 

installation of infrastructure, often under contracts by 

foreigners, while local human resource development and 

capacity building is given short shrift. More needs to be done 

by governments and other stakeholders in lCT literacy 

and related training programmes for local people. 

For example, Australia’s Telecommunications Action Plan for 

Remote Indigenous Communities (TAPRIC) encourages the 

incumbent, Telstra, to expand its training programmes in 

partnership with the government (building supply-side human 

capacity) and also launches an investigation of the most 

effective way to deliver ICT skills and training to community 

access centres (building demand-side human capacity). The 

past decade has also witnessed the rise of regional initiatives 

across many Commonwealth African countries, which should 

continue to nurture and replicate such partnerships across 

the continent. Examples include the New Economic Partnership 

for African Development (NEPAD) e-Schools Programme, 

SchoolNet Africa (SNA), African Virtual University (AVU), 

and the International Education Resources Network (iEarn). 

There is a growing recognition that greater cooperation and 

participation will yield stronger, more sustainable results. 

G) Enhanced Role of ICT Consumers and Stakeholders 

Various ICT consumers and stakeholders play a critical role 

in driving rural connectivity, be it local governments that seek 

better telecommunications infrastructure, or a private sector 

company providing information on weather, market prices 

and scientific farm practices to agricultural communities. 

This report recognises that the various tiers of decentralised 

government, the national postal service, educational 

institutions, medical establishments, money transfer schemes, 

agricultural businesses, law enforcement and revenuegenerating 

agencies, as well as civil society can have a 

demand-pull factor in driving rural connectivity. In addition, 

the research also finds that these local ICT stakeholders can 

help to create and supply online and mobile content that is 

relevant to the needs of rural communities. . 

H) Partnerships for Rural Connectivity 

Achieving universal service and access is not an easy task 

and cannot be implemented either by governments alone or 

private sector alone. Governments, regulators, operators and 

rural communities in the comparator countries have proven 

that rural connectivity is best implemented in partnership. 

The types of partnerships and strategies in action now are 

diverse, and range from public-private partnerships in Malaysia 

to the engagement of strategic non-governmental organisation 

(NGO) partners in India. The incumbent operators in both 

Malaysia and Australia have recognised that partnering with 

the communities they serve is essential to the success of 

their rural sustainability and have both adopted community 

ownership strategies. Moreover, this report finds that the key 

to successful partnerships is to nurture local ownership that 

keeps the community enthusiastic and the project relevant 

to the diversity of local needs.



One such example highlighted in the report is the Mobile 

Internet Unit (MIU), or Cyber Coach, in Malaysia, which is 

bringing ICT literacy training programmes to students, teachers 

and parents in rural schools, while simultaneously collecting 

data to help develop national ICT policies. The initiative is 

only possible due to collaboration and adoption of the “smartpartnership” 

between Malaysia’s government organizations, 

private sector/NGOs and the various local communities. 

Examples of public-private partnerships to increase rural 

connectivity in Africa are prolific as well. The successful pilot 

of PLC in Ghana offers an alternative innovative solution to 

rural power and telecommunications connectivity, but it is 

imperative that effective and robust collaborative mechanisms 

are established between energy companies, the Ministries 

responsible for ICT and regulatory authorities to ensure that 

new or improved power lines can provide enhanced connectivity. 

Once pilot projects have made rural communities aware of 

ICTs and their associated opportunities, this report recommends 

that relationships between the local community and the 

various ICT stakeholders must be established to foster 

continued productive use of the technologies and generate 

demand for their content and services. Happily, public-private 

partnerships (PPPs), amongst educational institutions, one 

or more ministries, donor and development agencies and 

private ICT companies, such as Microsoft and Cisco, have 

begun to sprout up across Commonwealth Africa. 

Many of these partnerships are in the form of ICT trusts, 

designed to increase investment and involvement of stakeholders 

in ICT infrastructure for development in education and human 

capacity. For example, in Mozambique the NEPAD demo project 

was initiated in six schools with private sector participation. 

HP and Microsoft formed a consortium to support the project, 

which supplied each of the six schools with computer labs 

and trained the teachers in the use of PCs. 

This report has confirmed that rural connectivity remains a 

central defying challenge to the efforts of ICT policymakers, 

legislators, regulators, operators, technology suppliers and 

other stakeholders in Africa. Each of these stakeholders has 

an independent reason to want rural communities to become 

connected. However, these stakeholders are yet, to work more 

collaboratively, harmoniously, methodically and constructively 

together to achieve their mutually inter-dependent objectives. 

The CTO hopes that the information, evidence, data and 

arguments adduced, and the recommendations made in the 

report will contribute to the process by which millions of 

Africa’s rural poor can be further liberated and their livelihoods 

improved through better connectivity with the rest of the 

world through ICTs. 

13

1 

Rural Connectivity in Commonwealth Africa 

1.1 Introduction 

Access to information is increasingly being seen as a basic 

human right, alongside access to potable water, food, basic 

healthcare and primary education. Regardless of the priority 

placed on each, there are now well-known initiatives like 

GrameenPhone, as well as numerous lesser-known but 

remarkable success stories, that showcase how information 

accessed through information and communication technologies 

(ICTs) alleviates poverty and drives economic growth in 

developing countries 2 . As the 2015 deadline for the Millennium 

Development Goals (MDGs) approaches, there is a growing 

realisation that ICTs must be utilised to their fullest potential. 

The challenge of rural connectivity remains at the heart of 

the Commonwealth Telecommunications Organisation’s (CTO) 

effort to utilise ICTs for the accelerated achievement of the 

MDGs in developing countries. 

There are numerous examples that depict how ICTs are already 

making a positive difference in the general development of 

rural communities in Commonwealth African countries. Today, 

farmers and traders in West Africa, for example, can use their 

mobile phones to access daily market prices and post buy/sell 

offers at the website www.tradenet.biz. South Africans in the 

Western Cape can access information about social grants and 

pensions over a local government-run web portal. Students 

in 100 Ugandan schools are enjoying improved education in 

the sciences due to the Ugandan Government’s Cyber School 

Technology Solutions (CSTS) programme. And, one farmer 3 

in Macha, Zambia, has used the Internet to learn how to grow 

sunflowers in his rural community. 

Notwithstanding these examples of visible success and 

progress, nowhere is access to and effective use of ICTs less 

pervasive and more needed than in the rural and isolated 

areas of sub-Saharan Africa. Despite the recent explosion in 

mobile telephony and the expansion of satellite networks in 

the region 4 , the International Telecommunication Union (ITU) 

estimates that some 55 percent of the total population in 

rural sub-Saharan Africa is still without basic and effective 

telecommunications. The numbers for Internet penetration 

are even more startling. In 2006, less than 5 percent of 

Africans had ever used the Internet 5 . Recognising the current 

infrastructure hurdles, access difficulties, illiteracy rates and 

associated high costs, the penetration figures are not likely 

to double by 2015, the MDG deadline, without a targeted 

effort. 

Large-scale investment in ICT infrastructure, an appropriate 

policy framework, sound legislation, liberalisation and 

competition, and effective regulation are all recognised as 

necessary pre-cursors to the acceleration of rural connectivity. 

However, beyond these basic pre-requisites, other challenges 

exist; for example, the lack of access to electricity, the low 

income of rural areas, high operational and maintenance 

costs of infrastructure and high rates of illiteracy, to name 

a few. 

2 The SADC World Economic Forum Consultation Report on e-Readiness argues 

that “ICT is a key weapon in the war against poverty. Properly used, it offers 

huge potential to empower people in developing countries to overcome 

development obstacles and achieve economic 

viability and dependence.” 

3 He experienced a ten-fold increase in productivity in just one year and taught 

his neighbouring maize farmers how to follow suit. To learn more about Fred 

Mweetwa’s story, see http://link.net.zm/files/20070316, percent20Paper 

percent20on percent20Sun percent20Flower percent20Production percent20at 

percent20Macha.pdf. 

4 The African mobile market grew from 16 million subscribers in 2000 to 198 

million subscribers in 2006 -- an average of 52 percent annual growth over 

the six years (“Towards a Vision to Connect Africa”, Connect Africa Summit, 

2007). 

14 



The core findings of this report suggest that governments, 

regulators, telecom operators, investors, financial institutions, 

community and village leaders, civil society actors and 

educational institutions need to work more closely together 

to identify and implement the appropriate business models 

that will give birth to sustainable and relevant ICT access. 

These challenges are more prevalent on the continent of 

Africa than anywhere else in the world. 

1.2 Background 

Fixed-line penetration in Commonwealth African countries 

has experienced little growth in the last decade and has even 

suffered decline in the recent years of mobile telephone 

expansion. The fixed-line infrastructure is concentrated in 

the more populated areas, leaving the majority of rural areas 

totally unconnected. For example, in 2005, the least connected 

Commonwealth African country, Mozambique, had only 0.35 

main telephone lines per 100 inhabitants 6 . The ITU estimates 

that in 2007 less than 3 percent of all sub-Saharan African 

villages had access to a fixed-line service and less than 0.5 

percent of sub-Saharan African villages had access to a public 

Internet facility. 

The poor performance of fixed-line operators is at least partly 

due to the lack of competition in the market. Thirteen of the 

18 African Commonwealth countries are still under 

monopolistic control of a single fixed-line operator. Of the 

remaining 5 countries with licensed Second National Operators 

(SNOs), South Africa’s Neotel is yet to roll out the full 

repertoire of services and Zanzibar’s Zantel has limited reach 

in mainland Tanzania. Similarly, more than ten years after 

starting operations, Ghana’s SNO, WESTEL, has captured 

less than a one percent share of the telephony market. 

It is common for SNOs to concentrate their initial rollout of 

services to corporate customers in major cities, offering little 

or no competitive benefits in rural areas. According to the 

former Executive Director of the International 

Telecommunications Users Group, Ewan Sutherland 7 , there 

is no financial incentive for the installation of fixed-line 

copper local loops, when the construction of Global System 

for Mobile (GSM) networks and wireless local loops (WLLs) 

are more cost-effective. For example, Uganda’s SNO, MTN 

Uganda, captured an initial 27 percent of the fixed-line 

market, using GSM and Code Division Multiple Access (CDMA) 

fixed wireless technologies. 

5 Statistic includes Northern Africa with relatively high number of Internet 

users. The number of Internet users per 100 inhabitants in Central, Eastern, 

Northern, Southern and Western Africa was .80, 2.37, 10.17, 9.87 and 4.16, 

respectively, in 2006. 

6 The 2007 ITU ICT Yearbook. 

7 Sutherland, E., 2007. “Multinational Operators in African Mobile Markets,” 

in Diversifying Participation in Network Development, eds. A.K. Mahan and 

W.H. Melody



In contrast to the fixed-line market, mobile telephone 

penetration has experienced significant growth. The 2007 

World Information Society Report refers to mobile telephony 

as the “leapfrogging technology” with the greatest potential 

to bridge the digital divide. Mobile telephones already 

outnumber fixed-lines by nine to one in sub-Saharan Africa 8 , 

where mobile subscribership has grown an average of 52 

percent per year from 2000 to 2006. Also in contrast, the 

mobile market in Africa is primarily a pre-paid one. At least 

90 percent and often more than 95 percent of customers 

are on pre-paid plans, a characteristic that stakeholders 

should leverage when designing business models to accelerate 

rural connectivity. 

That said, the rural areas continue to be untapped markets, 

with many potential users that have both the desire and 

ability to pay for services living in unconnected rural areas. 

Among the 900 million Africans, about 760 million were still 

without a mobile telephone at the start of 2006 (about 84 

percent of the population). The World Bank estimates that 

about 57 percent of the sub-Saharan African population lives 

in an area covered by a mobile signal 9 , but other restraining 

factors (such as prohibitively high costs for mobile handsets 

or airtime) mean that only 7 percent of rural households 

subscribe to mobile services 10 . 

Recognising this urban / rural dimension of the digital divide, 

the Commonwealth Connects programme, a collaborative 

effort amongst the Commonwealth Secretariat, Commonwealth 

partner agencies and member countries 11 , commissioned 

the CTO to undertake the Commonwealth African Rural 

Connectivity Initiative (COMARCI) to engender and assure 

greater ICT access by accelerating connectivity of 

Commonwealth Africa’s rural populations. 

COMARCI is a comprehensive endeavour to understand how 

telecommunications and ICT policy, legislation, regulation, 

business models (operational, technological and financial), 

and human capacity building efforts affect the establishment 

and expansion of cost-effective rural connectivity in the 

18 African Commonwealth countries. To do this, COMARCI 

has pulled the best practices and lessons learnt from the 

experiences of five selected comparator non-African countries. 

These countries are Australia, Canada, India, Malaysia and 

the United States and have been selected because each has 

implemented unique and innovative policies to make significant 

progress in rural connectivity. 

Based on this knowledge, COMARCI has constructed a set of 

specific criteria, indicating what characteristics of ICT initiatives 

are necessary for their success and sustainability. These criteria 

have been used to identify 10 promising ICT pilots, already 

in operation, and will be used to inspire adaptation and 

replication across Commonwealth Africa, by leveraging Public 

Private Peoples Partnerships (PPPPs), and by bringing together 

the unique strengths of governments, regulators, 

telecommunications operators, technology manufacturers, 

development partners, financiers, investors and the beneficiary 

communities themselves. 

8 World Report on the Information Society 2007 

9 Winrock International and Pyramid Research (2007): “Costing ICT Infrastructure 

needs for Africa”, a Report for the World Bank 

In addition, a number of events, such as the annual Connecting 

Rural Communities African Forum and the annual 

Commonwealth Regulators and USF Forum, together with 

the imminent launch of the COMARCI e-platform and incountry 

capacity building and training workshops, will facilitate 

an ongoing exchange of ideas and provide for continued 

information-gathering and best-practices sharing. After 

completing the replicated projects, the CTO will continue to 

use the COMARCI channel over the next 10 years to encourage 

member states to fully consolidate a culture focussed on 


This report is the outcome of nine months of research 

undertaken at CTO headquarters, in collaboration with the 

ministries responsible for telecommunications in 

Commonwealth Africa, ICT regulatory authorities, universal 

service and access agencies, as well as a number of 

telecommunications operators and relevant members of civil 

society, academia and other stakeholders. As noted above, 

this report aims to establish how policy, legislation, regulation, 

operational, technological and financial models affect the 

development of cost-effective rural connectivity in the 

18 African Commonwealth countries. To accomplish this, 

each country’s ICT stakeholders assisted CTO staff in 

developing their respective country profiles. These country 

profiles are included in the annex. 

Although the COMARCI report focuses on the current 

experiences and prospects for rural connectivity of the 

18 African countries, it is obvious that the lessons to be 

learnt and shared from this report go well beyond Englishspeaking 

Africa. Governments, regulators and ICT operators 

and manufacturers in other regions such as the Caribbean 

and Asia-Pacific regions, will also find useful lessons and 

examples of success stories in this report. After all, the 

problems, challenges and opportunities for rural connectivity 

are no respecter of continent, race, creed or colonial experience. 

The research unearthed a vast amount of knowledge and 

experience in rural connectivity accumulated in other 

Commonwealth and more developed countries outside of 

Africa. For example, the “Jaagruti (Awakening) Project for 

Rural India” installed Intel-powered Community PCs, specially 

developed to withstand difficult environmental conditions; 

a customized power supply unit to maintain continuous load 

power in case of a power outage; and low power consumption. 

Canada, Australia and Malaysia all have large proportions of 

their populations living in rural and disadvantaged communities 

and have made impressive progress in rural connectivity. 

Outside the Commonwealth, thousands of small rural telephone 

companies in the United States are not only successfully 

competing against the massive incumbents, but are efficiently 

providing services to rural communities that incumbents redflagged 

as economically unviable. 

This report, therefore, recognises and highlights the experiences 

and initiatives in these non-African countries to serve as 

comparators. Lessons learnt from their experiences and best 

practices supply benchmarks and real examples in successful 

rural connectivity, as well as place the African countries 

within the larger global context. India, Canada, Australia, 

Malaysia and the United States will, hereafter, be specifically 

and collectively referred to as the comparator countries. 

These country profiles are also included in the annex. 

10 Measuring Village ICT in Sub-Saharan Africa”, ITU, 2007 

11 Commonwealth Connects was mandated by the Commonwealth Heads 

Government in 2005 to support and implement programmes and projects 

that help to bridge the digital divide between and within Commonwealth 

nations and thereby enhance the global effort of the World Summit on the 

Information Society and the MDGs. 

1 

15

1 

1.3 The Global Context 

The 2007 World Information Society Report announces that 

the digital divide between the Organisation for Economic Cooperation 

and Development (OECD) countries and the 

developing countries is shrinking. However, the progress in 

fixed line penetration, mobile telephone subscriber penetration, 

Internet usage and broadband penetration ascribed to 

developing countries as a whole is largely due to accelerated 

growth in the telecom sectors of India and China. The Least 

Developed Countries (LDCs), the category to which most of 

the African Commonwealth countries belong, are making 

some inroads in mobile telephony and Internet access, but 

are being left behind in the number of fixed-lines and 

broadband access. 

The Report heralds the impact of mobile phone growth in 

Africa in narrowing the digital divide. Because of the low 

penetration of fixed lines, mobile phones are often the only 

means by which rural users connect to friends, family and 

business partners outside their villages. Moreover, many of 

the mobile telecom operators in Africa (such as MTN, Vodacom, 

Orascom, Econet and Zain) have their origins and bases in 

the Middle East or Africa. The upshot of this is that revenue 

growth is more likely to be reinvested in the continent. 

These operators are enjoying much higher subscriber growth 

than their developed-country counterparts, and the market 

is still nowhere near saturation. New services, such as mobile 

banking and instant messaging, as well as innovative pricing 

models for lower-income subscribers, could possibly sustain 

their high subscription growth rates in the future and make 

rural connectivity solutions profitable and sustainable for 

operators. The current debate on the digital divide centres 

on the number of people with basic access to 

telecommunications - universal access; however, as advances 

in technology continue to push the frontiers, the debate in 

advanced economies is shifting towards quality, capacity and 

speed of telecommunications access. 

High-income countries make up nearly 75 percent of the 

world’s broadband subscribers. Low-income countries account 

for less than 1 percent, and nearly all these live in India and 

Vietnam. Africa’s broadband subscriber numbers remain 

below 1.18 subscribers per 1,000 inhabitants 12 . Therefore, 

discussions on universal access in low-income countries 

should account for speed and quality of communications in 

the future. 

Both India and Malaysia, the two emerging economies studied 

in the research phase of COMARCI, have made significant 

progress in closing the digital divide in terms of both basic 

access and broadband connectivity, and are therefore 

particularly useful comparators in this regard. As in many 

African countries, there is virtually no competition in the 

Indian fixed-line rural market, with formerly state-owned 

operator Bharat Sanchar Nigam Ltd. (BSNL, now owned by 

Tata) serving 99.98 percent of the rural fixed-line subscribers 13 . 

However, the burgeoning mobile sector in India is home to 

12 competing operators, 10 of which are private competitors 

who together account for 79 percent of all GSM subscribers 

and 92.66 percent of all CDMA subscribers. 

12 Statistic for 2006, ITU World Telecommunications/ICT Indicators Database 

2007 

13 TRAI September 2007 Quarterly Report, available at 

http://www.trai.gov.in/trai/upload/Reports/38/report1jan08.pdf 

16 



This report analyses how the dynamic mobile sector, the 

extensive Universal Service Support Policy, full utilisation of 

universal service funds 14 , the relaxing of foreign direct 

investment restrictions, the unique Shared Mobile 

Infrastructure Scheme and the introduction of tailored and 

innovative technology solutions by forward-thinking technology 

suppliers have all boosted India’s rural connectivity. 

Malaysia’s progress is also due to a number of factors, 

including the joint venture between the fixed-line incumbent 

Telekom Malaysia (TMB) and the national rail company, the 

pioneering efforts to supply broadband over power lines, its 

well-defined universal service policy, and special financial 

incentives for foreign direct investment and for companies 

to acquire information technology assets. This report analyses 

Malaysia’s experience for its adaptability and applicability to 

current and future African progress in rural connectivity. 

It is important to note here that both India and Malaysia have 

sophisticated knowledge and information society strategies, 

and both have made massive educational investments to 

foster the human capacity necessary to both enable and 

benefit from massive rollout of ICT infrastructure and services. 

1.4 Rationale 

The digital divide, as described in the global context above, 

highlights the main disparities between the advanced and 

developing countries; however, the digital divide has many 

dimensions. As approximately three-quarters of all Africans 

live in rural areas, closing the urban/rural divide within Africa 

is one step towards closing the divide between Africa and 

the rest of the world. 

The COMARCI research project is predicated on the belief 

that further insight into the ICT challenges of rural communities 

in Commonwealth Africa is needed, in order to design suitable 

solutions for more rapid access to ICTs for these disadvantaged 

communities. COMARCI champions the notion of PPPPs. 

ICT solutions should not be handed to rural people from on 

high, but should be developed as a collaborative effort by 

government, private sector and the rural people themselves, 

through their various community organisations. COMARCI 

will facilitate the match-making between those investors, 

donors and agencies with funding and resources, those that 

have the innovative technology solutions and sustainable 

business models, those that are demanding ICT services, and 

those that can see the “wealth at the bottom of the pyramid” 15 . 

This report is the first major step within the Commonwealth 

of Nations to foster a full understanding of the range of rural 

ICT challenges, particularly in sub-Saharan Africa, and to 

build the broad-ranging, multi-stakeholder partnerships that 

are required to quickly overcome them. 

14 According to India’s Department of Telecommunications, the entire budgetary 

provision of Rs. 5081.435 Crore allocated for the financial years 2002-03, 

2003-04, 2004-05, 2005-06 and 2006-07 was fully utilized (Rs 300.00, 

200.00, 1314.585, 1766.85 and 1500.00 Crore). See : 

http://www.dot.gov.in/uso/implementationstatus.htm 

15 Prahalad, C.K., 2004. The Fortune at the Bottom of the Pyramid: Eradicating 

Poverty Through.

1.5 Goals and Objectives 



This report contributes to the effort to map the state of rural 

connectivity in Commonwealth Africa. The mapping is based 

on research undertaken by the CTO in collaboration with 

all the Commonwealth African ministries responsible for 

ICT, regulatory authorities, universal service and access 

agencies, as well as a number of ICT operators and relevant 

members of civil society, academia and other stakeholders. 

This report aims to uncover how policy, legislation, and 

regulation as well as operational, technological and financial 

models impact the potential for cost-effective rural connectivity 

in the 18 African Commonwealth countries. In order to 

accomplish this, the report: 

j Identifies the current trends in African rural connectivity 

policies, within the context of the Global Information and 

Communication Technology for Development (ICT4D) 

agenda and in comparison with rural communication 

policies in the selected comparator countries; 

j Cites the key trends in African legislation and regulation 

in support of rural connectivity, comparing and contrasting 

with examples from the comparator countries; 

j Examines how telecommunications operators have achieved 

universal service and access through a number of 

mechanisms, such as rollout obligations, asymmetric 

interconnection agreements, infrastructure 

sharing and innovative business models; 

j Discusses how different technologies can facilitate or 

impede rural connectivity in Commonwealth Africa, with 

special attention to wireless and fixed-wireless solutions, 

satellite and powerline communications, and the 

complementary role of electrification and research in 

renewable energy alternatives; 

j Identifies the status of human capacity as it affects rural 

connectivity in Commonwealth Africa, notable examples 

of capacity-building efforts and the enduring capacity 

building needs; 

j Argues for enhanced roles of a wide range of ICT consumers 

and stakeholders in driving rural connectivity and the 

development of local e-content, in particular. These 

stakeholders include local governments, postal services, 

financial institutions, money-transfer schemes, traditional 

rulers, religious and community leaders, non ICT businesses 

such as mining and agro-processing,educational institutions 

and medical facilities; 

j Identifies the rural connectivity initiatives (and their 

respective business, financial and technological models) 

that are already being successfully implemented, to serve 

as candidates for large-scale adaptation and replication 

throughout Commonwealth Africa. 

16 “New Technologies for Rural Applications”, Final Report of ITU-D Focus Group 

7, 2000 

1.6 Note on the Definition of Rural 

COMARCI focuses on ICT connectivity in rural areas, and 

thus a satisfactory definition of rural must be established. 

Most often, the term is not explicitly defined and taken to 

be synonymous with countryside or in opposition to urban. 

However, this initiative will use a definition commensurate 

with that of the ITU-D Focus Group 7 16 . A rural area is an 

isolated and poorly served area where a number of factors 

interact to make telecommunication services difficult to 

establish. 

For example, a rural area may comprise of numerous scattered 

villages, located relatively close to a populated city, but is 

inaccessible due to mountainous terrain, a low GDP per 

capita and an economy dependent solely on subsistence 

agriculture. 

Potential factors that interact to classify a settlement as rural 

are specified in Box 1.6 (right). All the characteristics are 

a challenge to the provision of quality telecommunication 

services at affordable prices and reduce the area’s 

attractiveness to investors. 

Factors of Rural Classification 

A rural area exhibits one or more of the following 

characteristics: 

1) Scarcity or absence of public facilities, such as 

reliable electricity, water, access roads and regular 

transport; 

2) Scarcity of technical personnel; 

3) Difficult topographical conditions, e.g. lakes, rivers, 

hills, mountains or deserts, which render the 

construction of wire telecommunication networks 

very costly; 

4) Severe climatic conditions that make critical 

demands on the equipment; 

5) Low level of economic activity mainly based on 

agriculture, fishing, handicrafts, etc.; 

6) Low per capita income; 

7) Underdeveloped social infrastructures (health, 

education, etc.); 

8) Low population density; 

9) Very high calling rates per telephone line, reflecting 

the scarcity of telephone service and the fact that 

large numbers of people rely on a single telephone 

line. 

Source: “New Technologies for Rural Applications”, Final Report 

of ITU-D Focus Group 7, 2000 

1 

17

2 

Rural Connectivity as Policy 

2.1 Rural Connectivity in the Global ICT4D Agenda 

The Millennium Declaration of the year 2000 announced the 

now well-known eight Millennium Development Goals (MDGs). 

The fast approaching 2015 deadline sets serious challenges 

ranging from the alleviation of poverty to ensuring 

environmental sustainability. The last of the MDGs aims to 

develop a global partnership for development, specifically 

“in cooperation with the private sector, to make available the 

benefits of new technologies, especially information and 

communication technologies (ICTs).” 

In 2003, world leaders met in Geneva at the World Summit 

on the Information Society (WSIS) to make a commitment 

to “build a people-centred, inclusive and developmentoriented 

Information Society, where everyone can create, 

access, utilize and share information and knowledge. 17 ” To 

harness the power of ICTs to realise the MDGs, the WSIS 

Plan of Action focuses efforts on the establishment of national 

e-strategies, the development of public-private partnerships 

promoting ICT access and the creation of a “trustworthy, 

transparent and non-discriminatory legal, regulatory and 

policy environment 18 ”. 

In response to the WSIS global consensus, the Secretary 

General of the United Nations established the Global Alliance 

for ICT and Development (GAID) to catalyse action-oriented 

partnerships amongst governments, international organisations, 

civil society, the private sector, media and other stakeholders 

to better harness ICT for development (ICT4D). 

The WSIS database (www.itu.int/wsis/stocktaking) lists about 

3,300 WSIS-related projects underway across the globe 

and estimates that about 55 percent of these projects 

are implemented in multi-stakeholder partnerships. 

Moreover, in 2007 the GAID Steering Committee decided to 

focus efforts on African connectivity in particular, and the 

Connect Africa Initiative was launched in Kigali that October 

(see Box 2.1.1). Other UN agencies, such as the United 

Nations Development Programme (UNDP), ITU and the United 

Nations Educational, Scientific and Cultural Organisation 

(UNESCO), as well as the various regional economic 

commissions, are all implementing various aspects of the 

WSIS Action Plan. 

2.2 National e-Strategies for Rural Connectivity 

The national e-strategies, called for in the WSIS Plan of 

Action and Connect Africa Initiative, have been actively 

promoted by key international organisations, including the 

CTO, the United Nations Economic Commission for Africa 

(UNECA), ITU and UNDP, for the last five years. By 2008, 

14 of the 18 African Commonwealth countries have developed 

such e-strategies for the telecommunications, ICT and/or 

information technology (IT) sectors and many include specific 

provisions on rural ICT access. 

The WSIS Plan of Action also provides guidelines on the 

development of an effective e-strategy. For example, an estrategy 

should address sustainability issues and include a 

universal access policy with specific universal access targets 

for the ICT connectivity of schools, universities, medical 

centres, libraries, post offices, community centres, etc. (see 

next section for more on this). 

18 

The importance of public-private partnerships in achieving 

many development goals is well established in today’s 

developing world. However, the expansion of rural connectivity 

is dependent on bottom-up efforts and demand for services; 

therefore, rural people must also join the multi-stakeholder 

partnerships. Thus, this report emphasises the role of public 

private peoples partnerships (PPPPs), which is founded on 

the belief that the solution to poor rural connectivity will be 

the result of a collaborative effort by government, private 

sector and the rural people themselves. 

By extension, the national e-strategy has an important role 

to play in facilitating the development of PPPPs. 

In turn, the PPPPs should play an important role in designing, 

developing, implementing, monitoring and evaluation of the 

national ICT strategy. 

The WSIS Plan of Action bestows the responsibility to initiate 

a national dialogue and devise the best e-strategy upon 

governments and all ICT stakeholders. Governments may 

have a leading role, but the private sector and civil society 

have “an important consultative role to play 19 ”. The result 

is the positive feedback loop depicted in Figure 2.2 below. 

Figure 2.2 

National ICT 

Strategy 



Facilitates 

Public Private 

People Partnership 

(PPPP) 

Develops in Dialogue 

The importance of a clear and coordinated national ICT 

strategy in promoting a development-oriented and informationreplete 

society cannot be overstated. Success of rural 

connectivity in the five non-African comparator countries 

can, at least in part, be attributed to their respective ICT 

policies (identified in Table 2.2) and their ability to act on 

and enforce these policies with effective legislation and 

regulation. There are a number of commonalities amongst 

the comparator countries’ policies, suggesting that certain 

elements of a national ICT strategy (or e-strategy) help to 

make it more effective for the expansion of rural connectivity. 

17 WSIS: Declaration of Principles, Geneva 2003: section 1 

18 WSIS: Declaration of Principles, Geneva 2003: section 13 

19 WSIS Plan of Action 2003



These common elements are identified in Box 2.2 below and 

then explained in greater detail with specific country examples 

in the following sub-sections. 

Table 2.2 

Country e-Strategy / ICT Policy Established in 

Australia The Telecommunications 2002 

Action Plan for Remote & 

Indigenous Communities 

(TAPRIC) 

Canada Connecting Canadians 1997 

India National Telecoms Policy 1994 

New Telecom Policy 1999 

(NTP) 

Broadband Policy 2004 

Malaysia The National 1994 


Policy of Malaysia 

(1994-2020) 

The National Information 1996 

Technology Agenda 

(NITA) 

USA No explicit policy, rather 

FCC regulations & 

initiatives targeting rural 

or tribal lands 

Box 2.2 Elements of an Effective National ICT Strategy for 


A national ICT strategy should: 

1. Be mainstreamed with the wider development 

agenda 

2. Include specific rural connectivity policy targets 

3. Promote multi-stakeholder partnerships and local 

ownership through Public Private People 

Partnerships (PPPPs) 

4. Coordinate the various ICT initiatives 

5. Enable a competitive environment for ICT providers 

6. Promote human capacity building to effectively 

use ICTs 

2.2.1 ICT strategy mainstreamed with the wider development 

agenda 

It is not the installation of communications infrastructure 

and delivery of ICTs to rural areas that is of particular value. 

Rather, it is the information, knowledge and services, enabled 

by access to ICTs, that bring developmental benefits and will 

drive the achievement of the MDGs. Therefore, the ICT 

strategy must be mainstreamed with the greater national 

development goals and ensure the inclusiveness of rural 

people. 

For example, Malaysia’s National Telecommunications Policy 

(1994-2020) encourages interaction between the country’s 

various regions and ethnic groups to create an educated and 

information-rich society, thereby enhancing industrial and 

economic growth. Its National IT Agenda incorporates five 

strategic “thrusts”, each relating to a different development 

objective, e-Economy, e-Public Service, e-Community, 

e-Learning and e-Sovereignty. The Government of India 

developed its New Telecom Policy (NTP) in 1999, in 

recognition of the fact that the provision of world class 

telecommunications infrastructure and information holds the 

key to its economic and social development. Like Malaysia, 

India expects a large proportion of its economic growth and 

national GDP to be attributable to a burgeoning ICT sector, 

and its New Telecom Policy aims to create an enabling 

framework for the development of the ICT sector, as well as 

the economy as a whole. 

2.2.2 Specific rural connectivity targets 

A provision in national policies focusing on universal or rural 

access indicates a government’s commitment to provide 

access to basic telecommunications in areas where the market 

alone would not encourage investment. In many Commonwealth 

African countries, this specific provision for rural populations 

is often just one or two lines in national ICT policy or strategy 

documents or altogether absent. However, in other countries, 

the provision for rural access is more extensive, and often 

includes concrete targets to be met by operators and/or other 

stakeholders. 

In many cases, the power of rural communities paves the 

way for legislation to establish universal service and access 

agencies and funds in order to implement the policy. It could 

be surmised that the relative absence of specific policy, 

legislative and regulatory provisions for rural access may be 

linked to the generally disempowered status of most of Africa’s 

rural populations. 

Often, policies set a blanket target objective for the expansion 

of rural connectivity, such as an increase in telephone or 

mobile penetration as a percentage of the population. Instead, 

these blanket targets should be replaced or accompanied by 

more specific and tangible targets, indicating how the increase 

in rural connectivity will be achieved and what kind of 

connectivity (basic service and/or broadband Internet) will 

be delivered. For example, targets should indicate how many 

community access points will be established and how many 

universities, schools, libraries, post offices, health centres 

and local and central government departments will be 

connected. In June 2008, at COMARCI Day in London, the 

Chief Executive of the Uganda Communications Commission 

(UCC), Mr. Patrick Masambu 20 , explained that targets for 

Universal Access in most countries are focused on four areas: 

1) A public payphone for each community of a designated 

size 

2) A minimum walking distance to a public payphone 

3) An Internet Point of Presence in every “district” 

4) A public Internet café in every “district” 

Moreover, Masambu indicated that if a country has a Universal 

Service and Access Fund, it is essential that the country 

decide on more specific targets for different categories 

(individuals, households, communities, institutions, youth) 

with specific attention to people with prohibitively low income, 

the elderly and people with disabilities. 

20 See www.cto.int to download the COMARCI Rapporteur Report with a full 

summary of Mr.Masambu’s presentation. 

19 

2

2 

For example, Table 2.2.2 below illustrates accomplishments 

in expanding rural connectivity as a result of subsidies from 

Uganda’s Rural Communications Development Fund (RCDF), 

since its establishment in 2003. 

Table 2.2.2 Accomplishments of the RCDF as of 2008 

As the ICT sector rapidly evolves, it is now necessary to set 

separate targets specifying the type of service to be extended 

to rural areas. The e-strategy should include specific targets 

for the provision of basic services to completely uncovered 

areas, but must also include targets for the provision of more 

advanced services, such as broadband, that are necessary 

for meeting the country’s wider development objectives and 

sparking economic growth. For example, in the United States, 

the universal service goals indicate the provision of advanced 

services to all people, including low-income and rural citizens, 

with targeted funding and programmes to provide services 

to all schools, libraries and rural health care facilities. 

A case study of Canada’s CAP, undertaken as part of the 

Harvard Information Infrastructure Project, details how Canada 

continually set new ambitious targets for connecting schools 

and community access points to establish, as the SchoolNet 

and Community Access Programme (CAP) rapidly expanded 

provision of rural broadband connectivity 21 . The SchoolNet 

Advisory Board first aimed to connect 300 schools to the 

Internet during the 1993-94 school year. However, having 

attracted private-sector investment and support at all levels 

of government, as well as stimulated school demand, 

3000 schools were connected by the end of the year. 

20 

Programme Area Completed Under 

Development 

1. Internet Points 52 24 

of Presence 

2. Internet Cafes 55 45 

3. ICT Training Centres 70 2 

4. Web Portals 78 0 

5. Public Pay Phones 1704 895 

6. Research Projects 4 0 

7. Postal Support 1520 

Projects 

8. MCTs 4 20 

9. School ICT Projects 8 87 

10. Health ICT Projects 0 43 

11. Call Centres 0 1 

Source: RCDF, COMARCI Day presentation 

21 Connecting Canadians: Canada’s Community Access Program: A Case 

Study of Government Strategic Investment on the Internet. Harvard 

Information Infrastructure Project, John F. Kennedy School of Government, 

Harvard University. 

22 CRTC Telecommunicaitons Monitoring Report 



Transitioned from pilot project to full-scale federal programme 

in 1994, the government budgeted an annual $13 million 

to SchoolNet for the succeeding four years, and set a new 

target of connecting all 16,000 Canadian schools by March 

1999. In addition, the government approved Industry Canada’s 

request for 1000 CAP sites across the country and by the 

end of 1995, readjusted its target goal to 1500 CAP sites, 

committing additional government funds. 

In 2006, Canada had achieved a 98.6 percent fixed-line 

and/or wireless penetration rate, but there is still an urban/rural 

divide in terms of advanced services. Virtually all urban 

households have access to broadband services, compare to 

just 78 percent of rural households. As a result, a number 

of government initiatives, such as the Canadian Strategic 

Infrastructure Fund and the Broadband Pilot Programme, 

and private sector initiatives are working to increase broadband 

connectivity in rural, remote, northern and First Nations 

areas 22 . 

India’s 1999 New Telecommunications Policy also sets 

specific targets balancing the provision of basic services with 

the provision of advanced services. The policy aimed to 

connect all villages to basic telephone services by 2002 and 

increase rural teledensity from 0.4 in 1999 to 4 by the end 

of 2010. While the country did not make its ambitious 

universal access targets, considerable progress was made 

and rural teledensity increased from 0.4 to 2 by mid-2007 23 . 

The 1999 policy also aimed to connect all district headquarters 

to the Internet by 2000 and connect all towns with a population 

greater than 200,000 to high-speed data and multimedia 

services using the Integrated Services Digital Network (ISDN) 

by 2002. In an effort to meet such targets (however belatedly), 

India released its 2004 Broadband Policy. The policy indicates 

that BSNL and MTNL are expected to use their copper loop 

infrastructure aggressively to provide broadband services. 

Noting that the cable television infrastructure is more expansive 

than the copper, the policy encourages the use of the cable 

last mile infrastructure for broadband provision. VSAT services 

are promoted, especially in the provision of broadband to 

remote and inaccessible areas. This policy declares the 

government’s intention to make transponder capacity available 

at competitive rates and to increase the data transmission 

rate. Furthermore, the policy de-licenses spectrum to 

allow for upcoming terrestrial wireless technologies. 

2.2.3 The merits of PPPPs and local ownership 

The importance of multi-stakeholder partnerships is a 

reoccurring theme throughout this report. While prevailing 

wisdom has generally promoted public-private partnerships, 

such partnerships have not necessarily involved the local 

ownership, management and/or participation necessary to 

accelerate and sustain rural connectivity. In contrast, the 

Public Private Peoples Partnership (PPPP) has harnessed 

this local element in order to drive rural connectivity in several 

of the comparator countries. 

“Connecting Canadians,” Canada’s national ICT strategy, 

helped it to become the country with the highest percentage 

of its population online of any country in the world by 2000 24 . 

All of Canada’s schools and libraries are connected to the 

Internet, and the country’s Community Access Program (CAP) 

has established 8,800 public access centres that provide 

Canadians with affordable Internet access and the skills to 

use it effectively. 

23 http://telecomsector.blogspot.com/2007/05/growth-in-indian-rural-tele-densitynot.html 

24 Internet Industry Almanac, September 2000.



The Harvard case study explains that the key to Canada’s 

success in extending schools’ connectivity under the SchoolNet 

initiative was the leveraging of partnerships with private 

industry, volunteer groups, local ownership and government 

organisations 25 . The private sector was eager to connect 

schools because it improved company visibility, while the 

company laid infrastructure that could later connect residences 

and more lucrative markets. Under the CAP, private operators 

donated long distance service to participating SchoolNet 

schools and provided modems and equipment at a discount. 

Moreover, the principle of SchoolNet and CAP was not only 

about mere partnership, but a very specific kind of partnership 

that keeps ownership local. The Director-General of Science 

Promotion and Academic Affairs at the time, Doug Hull, 

explains, “The way we designed the program, it’s really run 

by local groups. You have to apply. We don’t care where you 

locate it or how you get it done. We give you resources to 

make it happen and here is what we want in general terms: 

public access, training help, convenient location, and so 

many hours per week.” 26 The consequence of local ownership 

is that the community is enthusiastic and that the local 

community access centre meets the diversity of local needs. 

“We are giving them money to accomplish a local project 

rather than shoving some pre-conceived program into their 

face that was dreamed up in Ottawa. There is a high degree 

of flexibility in these programs. We don’t expect them to all 

be the same. That is really a cornerstone of the success of 

the program,” said Hull. 

The case of Malaysia is equally as instructive. Malaysia’s 

National IT Agenda (NITA) was developed by the National IT 

Council (NITC) in 1996. The NITC is the national planning 

body responsible for driving ICT for development and 

coordinating the roles of the various ICT stakeholders. The 

NITA outlines how ICT development is being driven in Malaysia. 

According to Mimos Berhad (the research and development 

organisation that advises the Malaysian government on ICT 

development), NITA adopts a people-centred approach to 

development and highlights the importance of comprehensive 

human development with universal access and equity alongside 

economic growth. 27 

In Malaysia, Figure 2.2.3 depicts the role that the NITC plays 

in facilitating multi-stakeholder cooperation. The private 

sector and the government ministries participate in the 

Council, which in turn advises the decision-making cabinet 

and provides feedback to the ministries on all IT issues. All 

tiers of government, the private sector, civil society, the nonprofit 

sector, NGOs and the media all feed into the ICT-fordevelopment 

agenda in this figure. The three interlinking 

rings indicated the private, public and community sector 

partnerships. 

One of the first initiatives of the Malaysian NITC is the 

Multimedia Super Corridor (MSC), which was established in 

1995 and has since developed a dynamic industrial cluster 

of 1,792 innovative ICT companies and 61 institutions of 

higher learning. Mimos Berhad points out that “smart 

partnerships are a must to move fast, since one may have to 

buy technologies, work with others for mutual gain, or hire 

talents. The MSC is about building industrial clusters, and 

the foundation for this is collaboration and cooperation 

between various players.” 28 

25 Connecting Canadians: Canada’s Community Access Program: A Case Study 

of Government Strategic Investment on the Internet. Harvard Information 

Infrastructure Project, John F. Kennedy School of Government, Harvard 

University. 

26 Zachary Tumin, “Connecting Canadians: Canada’s Community Access Program: 

A Case Study of Government’s Strategic Investment on the Internet”, Harvard 



Malaysia has implemented numerous policies to attract foreign 

and domestic investment in this 15 x 50 km tract of land 

sandwiched between Kuala Lumpur City Centre and the 

international airport. Financial incentives and the world-class 

global telecommunications services and good physical 

infrastructure combine to attract investors to settle in. 

While the MSC has propelled development of the ICT sector 

in the urban and suburban areas outside Kuala Lumpur, it 

has also nurtured the use of ICTs for greater social and 

economic development with direct benefits for rural 

connectivity. The MSC has implemented seven flagship 

applications to drive both ICT sector growth and the growth 

of the wider national economy. These initiatives include e- 

Government, the ‘MyKad’ multipurpose smart card, Smart 

School, Tele-health, the Research and Development cluster, 

e-Business and Technopreneur Development. 29 

The Smart School initiative, in particular, has recognised the 

need to engage local participation to meet the country’s social 

and economic development goals. It aims to build the 

specialised ICT workforce required to fulfil the country’s 

Vision 2020 and National IT Agenda. Internet access is 

included in the country’s definition of universal service, and 

the Ministry of Education aims to make all schools ICT-smart 

by 2010. These smart schools focus on ICTs, as well as 

maths, sciences and the English language at the primary and 

secondary level. Rural schools are visited by Mobile Internet 

Units (MIUs), schoolbus telecentres outfitted for rough terrain 

and their own electricity generators. They travel to 20 schools 

per year, teaching students basic computer and Internet 

skills. If there is no Internet connection available, students 

practice on cached Internet sites to taste what the Internet 

has to offer. The MIU only stays at each school for one day, 

but at the end of the day, it leaves behind at least one 

personal computer (PC) and a fixed connection to the Internet, 

if possible. 

Figure 2.2.3 

Private Sector 

Private 

Sector 

NITC 

Community 

Sector 

G 

Public 

Sector 

Society, Non-profit Sector 

NGOs and Media 

Source: MIMOS, Malaysia, 

Presented at SitEXPO 2004 in Casablanca 

Cabinet 

assign feedback 

Ministries 

Federal 

Government 

State 

Government 

Local 

Government 

All Public 

Sector 

Agencies 

27 National ICT Policy Planning and Strategic Intervention in Malaysia, Dr. Tengku 

Mohd Azzman Shariffadeen, President and CEO, MIMOS, Malyasia, Presented 

at SitEXPO 2004 in Casablanca. 

28 National ICT Policy Planning and Strategic Intervention in Malaysia, Dr. Tengku 

Mohd Azzman Shariffadeen, President and CEO, MIMOS, Malyasia, Presented 

at SitEXPO 2004 in Casablanca. 

29 Technopreneur Development is an initiative that aims to catalyse and nurture 

a cluster of advanced ICT small- and mediumscale enterprises (SMEs) 

21 

2

2 

2.2.4 Coordinate the various ICT initiatives 

An examination of the situation in Australia in the first half 

of the decade illustrates why an ICT strategy is especially 

useful to coordinate the various ICT initiatives of a government 

and place them within a policy context. 

Australia’s policy was one of slow transition to privatisation, 

with the Australian incumbent, Telstra, remaining in majority 

government ownership until 2006. “This relatively slow 

transition to privatization reflected a number of political 

considerations, including Telstra’s Universal Service Obligation 

(USO) to provide customers with reasonable access to 

telephone services throughout Australia,” according to 

Dr. Peter Ross from Griffith University. Because rural Australia 

is populated and powerful enough to cause political problems 

for federal governments seeking re-election, each proposal 

to privatise Telstra provoked rural voter backlash. 

The rural population was concerned that the private sector 

would concentrate on urban profit and give a lower priority 

to the provision of services in less profitable areas, thereby 

disenfranchising rural dwellers. The result of this drawn-out 

tension between the urban and rural poles of political pressure 

in Australia is “a relatively large number of often disjointed 

initiatives to bolster telecommunications in country areas, 

with money often being thrown at various rural and 

regional initiatives shortly before federal elections.” 30 

Nevertheless, it seems that through The Telecommunications 

Action Plan for Remote and Indigenous Communities (TAPRIC), 

established in 2002, the Australian Government recognised the 

need to coordinate the numerous worthy ICT initiatives and to 

bring them under a single comprehensive strategy 

and plan of action. The third objective of TAPRIC heralds the 

belief that a coordinated and holistic effort by governments and 

other stakeholders is needed to provide telecommunications 

services to remote and indigenous communities. TAPRIC outlines 

15 strategies, which are listed in Box 2.2.4,(right) to achieve 

this objective. 

In the case of Canada, the Community Access Programme 

(CAP) case study finds that Canada’s national e-strategy 

played a similar role as TAPRIC did in Australia. Hull argues 

that “Connecting Canadians” was crucial because “it situated 

a lot of the stuff we were doing in a policy and strategic 

context, which we didn’t have.” Some of the things they were 

doing were successful initiatives such as SchoolNet, CAP, 

Digital Collections 31 and Youth Employment.” 32 “Connecting 

Canadians” brought all these “disparate Information Highway 

initiatives under a single strategic pavilion, with the defined 

purposes of achieving global connectivity, stimulating electronic 

commerce, fostering Canadian content, and providing 

ubiquitous local linkages.” 33 Moreover, because CAP was 

one element of a coordinated policy, budget resources remained 

available as the project grew in scale. 

30 Dr. Peter Ross, Griffith University, CTO correspondence 

31 Digital Collections is an Industry Canada programme that employs young 

workers to digitize national cultural treasures from Canada’s archives, museums 

and libraries, and put them up on the Web. 

32 Industry Canada hired youth to work in the Digital Collections programme and 

in the Computers for Schools programme, in which young graduate technicians 

work in the computer repair workshop, gaining on-the-job experience, while 

they look for permanent jobs. 

22 



Box 2.2.4: Objectives and Strategies of Australia’s 

TAPRIC 2002 

Objectives 

j Improve telecommunications services and online 

content 

j Improve information flow 

j Improve coordination and support, and facilitate 

partnerships 

Strategies to achieve Objective 3 

j Indigenous Community Phone Program 

j Investigate, promote and support more appropriate 

products 

j Improve payphone services 

j Build the case for viable community access centres 

in “hub” communities 

j Subsidise community Internet access points 

j Investigate alternative delivery of Internet services 

j Support online content development 

j Develop a communications framework 

j Public awareness information campaign 

j Improve monitoring and reporting on service 

j Improve government coordination 

j Promote collaboration and information sharing 

j Facilitate community involvement, coordination and 

capacity building 

j Coordinate training and support 

j Coordinate service provision 

2.2.5 Enable a competitive environment for ICT service 

providers 

There is general recognition that governments must foster 

an enabling environment for the required investment in 

ICT infrastructure, in the framework of its national 

development policy, 34 as well as the provision of affordable 

and reliable ICT services. The processes of privatisation and 

liberalisation and the establishment of an independent 

regulatory authority and converged licensing regime are 

critical to the development of an enabling environment for 

rural connectivity in the ICT sector. 

33 Zachary Tumin, “Connecting Canadians: Canada’s Community Access Program: 

A Case Study of Government’s Strategic Investment on the Internet,” Harvard 



34 WSIS Plan of Action



In the Canadian telecommunications market, the process of 

promoting an enabling environment for competition has been 

incremental, methodical and cautious, according to the OECD’s 

2002 Report on Regulatory Reform in Telecommunications. 

Liberalisation of all telecommunications markets in Canada 

was not completed until 2000, but some de jure monopolies 

still exist in rural areas.” 

The slow process of liberalisation meant that regulatory 

safeguards were put in place and local competition built up 

relatively rapidly thereafter. Moreover, there are relatively 

fewer complaints about the liberalised regulatory regime and 

safeguards from new entrants in Canada, and the incumbents 

seem to be more willing to focus on competing rather than 

creating advantages for themselves, thereby facilitating the 

prospects for adequate rural coverage. 35 

Today, there are five incumbent operators, including Bell 

Aliant Regional Communications, Limited Partnership (Bell 

Aliant), Bell Canada, MTS Allstream Inc. (MTS Allstream), 

Saskatchewan Telecommunications (SaskTel) and TELUS 

Communications Company (TCC), 36 who compete against 

43 independent telephone companies that provide local 

services to rural areas and four national mobile operators, as 

well as numerous local wireless companies. Likewise, Australia 

followed a policy of slow privatisation of its incumbent Telstra, 

to ensure an enabling environment for rural access, prior to 

full competition. 

Telstra was privatised in 1996, and the country’s second 

national operator, Singtel Optus, has competed with the 

incumbent since 1992. However, as infrastructure owned by 

Optus is limited, especially in rural and remote regions of 

the country, the SNO depends greatly on the purchase of 

bandwidth from Telstra Wholesale to provide much of its 

service. 

While competition in infrastructure ownership and provision 

is scarce in Australia, competition in services is strong. Figure 

2.2.5a shows the market shares of the Australian licensed 

telecommunications carriers in 2005. The Herfindahl- 

Hirschman Index (HHI), a measure of market concentration, 

is just 1414 and indicates relatively high service-based 

competition. The Telecommunications Service Inquiry (TSI)a 

policy review process of the Australian Government-indicates 

that competition is the best means of delivering long term, 

sustainable outcomes, but the TSI is “a little less optimistic 

about the feasibility of facilities-based competition developing 

in regional, rural and remote markets in the short term.” 37 

That said, service is less competitive in rural areas and key 

service providers, Optus and Vodafone, argue that the current 

universal service obligation (USO) regime has negative 

implications for competition developing in rural areas. 

The current USO regime requires all operators to contribute 

to the universal service fund, while only the default universal 

service provider, Telstra, has access to the funds to provide 

service to remote and indigenous communities (RICs). 38 

The argument is similar to those made in African ICT regimes 

that require mobile companies to contribute to the universal 

service fund but that does not impose similar obligations on 

the incumbent fixed-line operator. 

35 Regulatory Reform on Telecommunications: Canada, OECD 2002 

36 Each of these former monopoly service providers controlled different provinces, 

as was the case in the U.S. before the break-up of AT&T. 

37 Connecting Regional Australia, Regional Telecommunications Inquiry, 2002 

38 Connecting Regional Australia, Regional Telecommunications Inquiry, 2002 

Figure 2.2.5a: Market Shares of Australian Licensed 

Telecommunications Carriers 2005 

EFTel 

1.0% 

Broadwing 

1.0% 

NTT 

1.5% 

Webcentral 

2.0% 

Sprint 

2.0% 

Comindico 

2.0% 

Agile 

Comms 

2.0% 

Swiftel 

3.0% 

MacquarieCo 

4.0% 

AAPT 

4.0% 

Others 

16.9% 

MCI 

5.0% 

Source: TRAI Sept 2007 Quarterly Report 

ASX 200 : Dedicated Access Market Share Oct-05 

Powertel 

8.0% 

Telstra 

31.8% 

Singtel 

15.9% 

Competition has also been a major driver of rural access in 

India, especially in the mobile sector. From a subscriber base 

of 240 million in early 2008, the Indian Government and 

mobile operators expect to double these numbers in less than 

two years, as a result of improved rural penetration and lower 

prices for both handsets and voice services. 39 Table 2.2.5 

shows the market share of each wireless operator in the third 

quarter of 2007, and Figure 2.2.5b illustrates the market 

share of each provider operating a GSM network. In July 

2008, state-run BSNL announced its intention to invest 

about US$10 billion in network expansion over the following 

three years in order to compete better against the major 

private mobile operators like Airtel, Reliance and Vodafone 

Essar. 40 

Table 2.2.5: Market Share of Wireless Operators 

in 3rd Quarter of 2007 

Operator Market Share 

Bharti Group 23.38 

Reliance Group 17.37 

Vodafone/Hutchison 17.06 

BSNL 16.32 

Tata 9.32 

Ideal Group 8.93 

Others 7.62 


39 See http://www.cto.int/Default.aspx?tabid=109&ModId=464&CategoryID= 

1&CatalogID=321&View=1&MainView=ViewOne&cat_fk=0 

40 “BSNL Plans US$10-bil. Investment for Network Expansion over Next Three 

Years - Report” Global Insight 23 July 2008. 

http://communicationsdirectnews.com/do.php/140/31762?12848 

23 

2

2 

Figure 2.2.5b 

Aircel 

5.22% 

Idea 

12.12% 

Reliance 

3.27% 

Spice 

2.26% 

MTNL 

1.80% 

BPL 

0.75% 

Bharti 

31.74% 

BSNL 

19.68% Vodafone 

23.16% 


In contrast, the fixed-line market, dominated by the two 

state-owned incumbents BSNL and Mahanagar Telephone 

Nigam Ltd. (MTNL), was opened to competition in 2001, 

but private operators have since only captured 9.41 percent 

of the market, as seen in Figure 2.2.5c. Moreover, privately 

owned Videsh Sanchar Nigam Ltd. (VSNL) held a monopoly 

on international telephony until it lost its exclusivity in 2002 

and the international market was finally opened to competition. 

The state of fixed-line competition in rural areas is even 

bleaker as BSNL still serves 99.88 percent of rural subscribers. 

Figure 2.2.5c: Total Market Share of Wireline Subscribers as 

on 30th September 2007 

24 

Other Private 

9.41% 

Source: TRAI Sept 2007 Quarterly Report 41 

BSNL 

81.43% 

MTNL 

9.16% 

41 Available at: http://www.trai.gov.in/trai/upload/Reports/38/report1jan08.pdf 



2.2.6 Promote human capacity building to effectively 

use ICTs 

A certain level of technical and professional ICT knowledge 

and skills is necessary to develop an Information Society, 

and in turn, every citizen should have the basic ICT skills 

necessary to benefit fully from the Information Society. 

Examination of the various ICT policies includes aspects of 

both supply-side and demand-side human capacity. The 

country must have the professional workforce to install the 

telecommunications infrastructure, and the community access 

centre attendant must be able to upkeep and repair his or 

her equipment and help his or her customers operate the 

equipment (supply-side). At the same time, the primary 

school teacher, farmer and fisherman need to know how to 

dial numbers on a mobile or how to use an Internet search 

engine in order to use ICTs for their personal developmental 

gains (demand-side). 

For example, the fourth strategy in Australia’s TAPRIC 

addresses the need to build the demand-side human capacity 

by launching an investigation into the most effective way to 

deliver ICT skills and training to community access centres. 

The 14th strategy addresses supply-side by encouraging the 

fixed-line incumbent Telstra to expand its training programmes 

in partnership with the government. 

The Indian New Telecom Policy, in line with the country’s 

wider development goal of being a global IT exporter, focuses 

on the development of supply-side human capacity. It states 

that “human resources are considered more vital than physical 

resources.” Therefore, the policy encourages the development 

of telecommunications expertise, the expansion of this 

expertise to other industries, and its export to other countries. 

Consequently, India has many world-class education, research 

and management institutions, despite the high rates of 

illiteracy across the country, especially in rural areas. The 

government has established Indian Institutes of Technology 

to continually replenish the pool of technical skills and offers 

incentives for research and development in manufacturing 

computers, all of which have spill-over benefits to rural 

communities. 

Similarly, Malaysia emphasises the supply-side human capacity 

building in its Telecom Policy. It encourages telecommunications 

providers to operate human resource training programmes and 

has announced the country’s intention to establish a national 

human development institute to coordinate the incumbent 

operator’s human capacity building programmes with those of 

new emerging companies. 

2.3 Case Studies of Rural Connectivity Policy in 

Commonwealth Africa 

This section of the report discusses the policies affecting 

rural connectivity in three selected Commonwealth African 

countries. It finds that many of the above 10 themes, which 

have had a show of support in the successful ICT strategies 

of the comparator countries, are also present in some of the 

higher performing African countries.



Fifteen of the African Commonwealth countries have developed and are implementing at least one national telecommunications 

or ICT strategy. Table 2.3a identifies each country’s policy and the year it was established. 

Table 2.3a 

Country Strategy/Policy Established in 

Botswana Botswana Telecommunications Policy 1995 

Maitlamo National ICT Policy 2005 

Cameroon Plan NICI Cameroun 2004 

The Gambia NICI policy and plan 

Ghana A National Communications Policy 1998 

Ghana ICT for Accelerated Development Framework 2003 

The National Telecommunications Policy 2005 

Kenya Telecommunications and Postal Sector Policy Guidelines 1998 

Updated Guidelines 2001 

National Information & Communication Technology (ICT) Policy2006 

Lesotho Lesotho ICT Policy 2005 

Malawi Communications Policy 1998 

Malawi Rural Communications Policy 2002 

Malawi National ICT for Development Policy 2005 

Mauritius The National ICT Strategic Plan (NICTSP) 1998 

National Telecommunications Policy 2004 

Mozambique ICT Policy 2000 

ICT Policy Implementation Strategy 2002 

Namibia Telecommunications Policy and Regulatory Framework 1999 

Nigeria National Policy on Telecommunications 2000 

National Policy for Information Technology 2001 

The Seychelles No national ICT policy 

Sierra Leone No national ICT policy 

South Africa National ICT R&D Strategy 2002 

Swaziland National Information and Communication Infrastructure 2006 

(NICI) Policy and Plan 

Draft National ICT Policy 

Draft Telecommunications Policy 

Tanzania The Rural Development Strategy (RDS) 2003 

National ICT Policy 


National Information and Broadcasting Policy 

National ICT Implementation Policy Strategy 

Uganda Telecommunications Policy 1996 

National ICT Policy 2003 

Uganda’s Rural Communications Development Policy 2006 

Zambia Zambia National ICT Policy 2006 

2 

25

2 

It is important to note that both fixed-line penetration and 

mobile penetration are highly correlated with a country’s per 

capita GNI. Holding all other factors constant, 87.8 percent 

of the variation in fixed-line penetration in our sample of 

18 countries can be explained by the variation in per capita 

GNI. The relationship between mobile penetration and 

GNI per capita is even stronger, with 93.3 percent of the 

variation in mobile penetration in our sample explained by 

per capita GNI. These relationships are depicted in 

Figures 2.3a and 2.3b below. 

Causation is likely in both directions 42 ; however, a few 

countries lay well above the trend lines, suggesting that some 

other factor(s), such as a relatively effective ICT policy, has 

led to a higher fixed and/or mobile penetration. The latter 

part of this section will focus on the ICT policies in some of 

these well performing countries. 

The countries detailed have been selected because each 

country has tackled its unique challenges of rural connectivity 

in very different ways (with varying degrees of success). 

Botswana, a country with relatively high per capita gross 

national income (GNI) but with vast expanses of desert land 

and rural communities, is only now making plans to privatise 

its incumbent fixed-line operator, but has introduced 

competition in the mobile market to achieve a relatively high 

percentage of the population covered by a mobile signal. 

In contrast, Ghana is one of the more liberalised countries, 

with five licensed mobile operators, the introduction of a 

second national operator in 1996, the proposal for an imminent 

sixth license, and the country’s continued privatisation efforts. 

The country has achieved a relatively high mobile penetration, 

as well as a fixed-line penetration slightly higher than expected 

for its level of per capita GNI. Kenya is likewise undergoing 

privatisation efforts, having sold Kenya Telecom in late 2007 

to France Telecom, to revive a failing fixed-line incumbent 

and its achievements in rural connectivity are largely due to 

the success of its two competing mobile operators. 

The following sub-sections focusing on Botswana, Ghana and 

Kenya discuss the implementation of the countries’ respective 

ICT strategies with reference to the roles and responsibilities 

of the various institutional stakeholders. A major drawback 

to effective rural communications rollout in several of the 

18 African Commonwealth countries is the confusion of such 

roles, for example, between a Ministry in charge of policymaking 

for telecommunications and a Ministry in charge of 

broadcasting, or between a ministry and a regulator. 

The ICT sector is relatively new in most developing countries; 

often younger than 10 to 15 years as a sector of government 

interest and separate functional responsibility. Consequently, 

many African governments are still grappling with how best 

to harness its potential. 

Many Commonwealth countries are still unsure where to place 

the ICT function within government, what to name the ministry 

responsible for ICT, which ICT agencies should report to which 

ministries, how the sector should be regulated, and which of 

several alternative governance structures would work best for 

the sector. 

Thus, while some Commonwealth African countries, like 

Ghana and Zambia, quickly recognised the merits of a 

converged regulator, many other sub-Saharan African countries, 

notably Nigeria and Namibia, have debated for far too long 

the question of institutional roles, reporting relationships and 

structures for ICT ministries and regulators. 

42 Higher GNI increases a country’s ability to invest in ICT infrastructure and 

the population’s ability to demand services. In turn, higher connectivity leads 

to productive opportunities. 

26 



These prolonged ICT policy and governance debates are 

accountable in some countries for the delay in evolving 

coherent national rural connectivity strategies, accompanied 

by plans of action that can help accelerate actual rural access. 

The current ownership details of all the fixed-line 

telecommunications operators in Commonwealth Africa are 

listed in Table 2.3b.The details of each country’s regulatory 

authority are listed in Table 2.3c. The three countries 

selected for discussion here are from different regions of the 

continent, face various rural connectivity challenges, and are 

at different stages of privatisation and liberalisation (as can be 

seen from Tables 2.3a and 2.3b); but all three have 

both a telecommunications policy and an ICT policy. 

Therefore, the following sub-sections discuss each country’s 

unique experience in implementing its respective ICT strategy, 

in light of the six elements of an effective e-strategy identified 

in section 2.2 of this chapter, and with reference to the roles 

each institutional stakeholder plays in that implementation. 

Figure 2.3a: Fixed Line Penetration v. GNI/Cap for the 

18 African Commonwealth Countries (2005) 

Main Telephone lines per 

100 persons (ITU) 

35 

30 

25 

20 

15 

10 

Mauritius 

5 

0 

Gambia 

-5 0 2000 4000 6000 8000 10,000 

GNI per Capita (WB) 

Figure 2.3b: Mobile Penetration v. GNI/capita in 

18 African Commonwealth Countries (2005) 

Mobile Penetration 

Figure 2.3c: Mobile Coverage v. GNI/Cap 

% Population covered by 

Mobile Signal 

120 

100 

80 

60 

40 

20 

0 

120 

100 

80 

60 

40 

20 

0 

Gambia Ghana 

Kenya 

Nigeria 

South Africa 

2000 4000 6000 8000 10,000 

GNI per Capita 

Botswana Mauritius 

2000 4000 6000 8000 10,000 

GNI per Capita



2.3.1 Rural connectivity as policy in Botswana 

As seen in Figure 2.3c, Botswana has addressed the challenge 

of rural connectivity with a stated target to cover 99 percent 

of the population with a mobile signal, a feat made all the 

more impressive considering the fact that it has one of the 

lowest population densities in the world, with 1.7 million 

people spread over 580,000 square kilometres, including 

the vast Kalahari Desert. The only other country in 

Commonwealth Africa with a greater percentage of the 

population covered by ICTs is the small island country, the 

Seychelles. At least part of Botswana’s success is due to the 

country’s policies, such as the early establishment of its 

award-winning independent and effective regulator, the 

Botswana Telecommunications Authority (BTA), and the 

national ICT policy “Maitlamo.” Maitlamo was established 

by the Ministry of Communications, Science and Technology 

in 2005 and heralds many of the elements identified in 

section 3, including public-private partnerships and a 

technology-neutral licensing regime. 

Maitlamo is streamlined with the country’s development 

agenda, Vision 2016, and highlights specific activities for 

implementation, such as the “Connecting Communities” 

programme, Government Online, ThutoNet (educational 

initiative), eHealth Botswana, ICT and economic diversification 

and “Connecting Botswana”, each with its own specific target 

goals. The Connecting Communities programme calls for a 

collaborative initiative between BTA, the fixed-line incumbent 

Botswana Telecommunications Corporation (BTC) and the 

private sector to consider different new high-speed access 

technologies to connect rural communities. Among these 

technologies is the portable Internet kiosk that involves highspeed 

wireless technologies. 

The project will look into the feasibility of various technologies 

from a cost and infrastructure perspective and testing will 

be in collaboration with the private sector, Botswana Technology 

Centre (BOTEC), University of Botswana and the academic 

community. Connecting Communities, in general, is based 

on the belief that planning ongoing viability and financial 

sustainability as well as the roles of the government and 

private sector are of extreme importance to ICT connectivity. 

Connecting Communities is one activity that emphasises the 

need for partnerships between the public sector (BTA and 

BTC), private sector and civil society in order to implement 

the Maitlamo ICT strategy, quite consistent with the CTO’s 

proposed PPPP model. However, in light of the reciprocal 

relationship depicted in Figure 2.2, it is also important to 

note that approximately 1,000 people from all elements of 

society contributed to the development of this policy. 

One of Maitlamo’s stated objectives is the “provision of 

universal service and access to information and communication 

facilities in the country,” and several of the ICT strategy’s 

activities are targeted to reach this goal. “Connecting 

Botswana” works to deploy ICT infrastructure solutions, 

prioritising the provision of electricity and Internet access 

for remote and rural communities. Its specific target is to 

provide reliable power and connectivity to half the population 

by the end of 2010 and access to all ICT technologies by 

the end of 2016. In addition, the rural telecommunications 

project, implemented as part of Vision 2016, is aiming to 

connect 147 villages comprised of about 120,000 persons, 

to telecommunications services. Botswana was one of the 

first African countries to establish an effective, independent 

regulator. 

43 ITU Effective Regulation Case Study: Botswana 2001 

44 See http://allafrica.com/stories/200710100975.html 

The 1995 Telecommunications Policy clearly indicated the 

need for an independent regulator and paved the way for the 

1996 Telecommunications Act which established the BTA. 

In 2001, the ITU chose to highlight Botswana in a case study 

on effective regulation, establishing the BTA as a world model. 

The BTA is one of the few regulatory bodies that have complete 

autonomy to license operators and to finance their own 

budget. 

The importance of an effective regulator in enhancing 

competition is clear in the BTA’s early history. Shortly after 

its establishment, the BTA licensed two GSM operators to 

compete with the state-owned fixed-line incumbent Botswana 

Telecommunications Corporation (BTC). “Some companies 

threatened that they would only invest in an exclusive mobile 

cellular operator. After it was created, the BTA remained firm 

and ultimately succeeded in attracting sufficient interest in 

the tender for two GSM licenses.” 43 Further liberalisation by 

licensing new operators is to be reconsidered in 2009. The 

government has also taken the first steps towards privatising 

BTC, engaging the International Finance Corporation (IFC) 

in October 2007 to act as transactional advisers. 44 

In 2007, the BTA adopted a technology-neutral licensing 

regime that licenses all providers to provide the full range of 

services with whichever technology they find most costeffective. 

The policy includes legalising VOIP. Consequently, 

in 2007, the BTA re-licensed all three of its network operators 

(BTC, Orange and Mascom Wireless) under the new neutral 

licensing regime. Now, BTC, which was formerly barred from 

providing mobile services under its fixed-line licence, operates 

a wireless network as well. It is worth noting that both Orange 

and Mascom are permitted to roll out fixed-line services under 

the new licensing regime, but both have declined to do so 

(presumably finding it less profitable than expanding their 

mobile infrastructure). 

ThutoNet, Maitlamo’s human capacity building activity, aims 

to “provide the literacy, skills and knowledge required for 

both formal and non-formal learners in the networked world.” 

The activity’s specific targets include the provision of computers 

and Internet connectivity in all schools and libraries, as well 

as ICT training for all teachers, by the end of 2010. And this 

will certainly support and benefit rural populations. 

2.3.2 Rural connectivity as policy in Ghana 

Ghana, which began its formal policymaking in support of 

converged ICTs in 1998, has a large number of policies 

affecting rural connectivity, including its Growth and Poverty 

Reduction Strategies (GPRS), Telecommunications Policy 

and ICT for Accelerated Development Policy. Ghana’s second 

GPRS (2006-2009) articulates how the government and 

private sector will partner to extend rural and peri-urban 

connectivity, as well as invest in a national broadband 

backbone, implement the national ICT strategy in agriculture, 

health and music, and connect all public schools to ensure 

the development of ICT human capacity. The GPRS emphasises 

the role played by public-private partnerships to meet these 

goals and increase coverage in rural areas. 

The Ghana Investment Fund for Telecommunications (GIFTEL) 

champions collaboration with its fellow ICT stakeholders to 

advance its rural connectivity objectives. GIFTEL subsidises 

the major telecommunications operators to connect Common 

Telecommunications Site Facilities under the Universal Access 

to Telecommunications Programme. GIFTEL is also 

collaborating with the UNDP, Ministry of Communications 

and the local district assemblies to establish community 

information centres in all regions of the country, including 

rural areas. 

2 

27

2 

The National Telecommunications Policy (NTP) was established 

in 2005 and emphasises the role of the private sector in 

driving innovation and the growth of the telecommunications 

sector in general. The NTP therefore promotes further 

liberalisation of the telecommunications market so that 

private, competitive market forces, especially local 

entrepreneurship, can drive telecommunications expansion. 

The telecommunications sector in Ghana is, indeed, one of 

the most liberalised in Africa. Ghana Telecommunications 

(GT), was partially privatised in 1996, then re-nationalised 

in 2005, and again partially privatised with a 70% stake sold 

to Vodafone in 2008. It is the incumbent operator and 

therefore owns most of the fixed-line infrastructure throughout 

the country. The National Communications Authority (NCA) 

licensed Westel, the second national operator, in 1996 to 

compete with GT. The Government has recently sold 

75 percent of its stake in Westel to Celtel (Zain). MTN Ghana, 

TiGo, Kasapa and One Touch all compete on the mobile stage, 

and a sixth license is reportedly about to be awarded. Ghana 

Telecom and Westel had exclusive rights to the international 

gateway but the exclusivity period lapsed, and the NTP states 

that up to three additional licenses are to be made available. 

The ISP market is fully liberalised. 

The National Communications Authority (NCA), established in 

1996, is empowered to make regulations encouraging rural 

connectivity and the universal service targets dictated in the 

NTP. These specific targets of the NTP are to connect all 

communities to the telephone, Internet and multimedia services 

by 2010, increase national telephone penetration to 25 percent 

of the population by 2010 and to connect all schools, medical 

clinics, government offices and public and community 

broadcasting stations to advanced telecommunications services. 

So far, the 25 percent-of-population target has already been 

exceeded by mobile telephony. More work is now needed to get 

equally sizable percentages of the population, especially rural 

dwellers, to benefit from the Internet and multimedia services. 

The government has not produced a stand-alone universal access 

or service policy, but rather details the policies within the NTP. 

The policy gives power to the NCA to authorise universal service 

obligations when licensing operators, as the government believes 

that access to information and communication is a fundamental 

right of every citizen. It defines universal access as the availability 

of affordable, community-based broadband information and 

communication services, whether it be voice, data services, 

Internet, local e-content, community radio or public services. 

GIFTEL is the investment fund responsible for collecting 

universal service contributions from the licensed operators 

and redistributing them, on a competitive basis, to companies 

and entrepreneurs to promote universal access and service 

in under-served, commercially unviable areas. 

Projects eligible for GIFTEL funding are not only those that 

build infrastructure and expand services, but also those that 

improve human resource development in ICTs. 

The NTP also recognises the need to harmonise policies in 

the broadcasting, information technology and electronic 

commerce arenas due to technological convergence. Its goal 

is to develop a national telecommunications infrastructure 

and promote a competitive and innovative industry in order 

to complement the ICT policy. It states that licensing and 

regulation should be technology-neutral so that 

telecommunications investment is innovative and the most 

economically efficient. 

45 Safaricom, the country’s largest mobile operator enjoyed 71 percent subscriber 

growth in the third quarter of 2007 and Celtel Kenya enjoyed 57 percent 

growth in the same time period. Note that incumbent Telkom Kenya has just 

begun mobile operations and has limited 

market share. Source: ArcChart 

28 



However, legislation has yet to follow up and enact the 

technology-neutral licensing regime. It is believed that early 

legislation of technology-neutral licensing would accelerate 

the process towards greater rural access. Established in 2003, 

Ghana’s ICT for Accelerated Development (ICT4AD) policy 

identified 14 priority focus areas. It made provision for the 

establishment of the Ghana Information and Communications 

Technology Directorate (GICT4eD) to promote the development 

of innovative technologies, standards, guidelines and practices 

among the various national and local governments and the 

private sector. It also aims to coordinate the various 

government-led ICT programmes on electronic government, 

commerce and online services. The policy was passed by the 

Cabinet in 2004 and, by 2005, Ghana had risen 10 points 

in the UN’s global e-Government readiness index, which 

should be a good precursor to more effective rural rollout. 

2.3.3 Rural connectivity as policy in Kenya 

The last country profiled here is Kenya, whose large population 

lives mostly in rural areas and is enjoying increased connectivity 

while its two licensed mobile operators enjoy rapid subscriber 

growth. 45 Recognising that Kenya is on the wrong side of the 

digital divide, and that its internal urban / rural divide is 

growing, the government adopted a National Information and 

Communications Technology Policy in an effort to narrow the 

divide. In contrast to the booming mobile market, the fixedline 

market is still under the monopoly control of the moneylosing 

Telkom Kenya. 

The incumbent is currently in the process of privatisation, 

with a 51 percent stake having been sold to France Telecom’s 

Orange subsidiary at the end of 2007. The updated 

Telecommunications and Postal Sector Policy Guidelines, 

published in 2001 by the Ministry for Information and 

Communications, expressed the intent to privatise Telkom 

Kenya in a step-by-step liberalisation process. It is hoped 

that privatisation will attract the necessary private sector 

capital, technology and skills to enable the company to meet 

its universal service targets. The national ICT Policy, adopted 

in January 2006, also promotes competition and liberalisation. 

One of its key strategies is to promote competition and 

investment through further liberalisation and licensing of 

new operators. However, the privatisation process is just now 

being completed, six years after the Guidelines first expressed 

the intention. It is such delays in policy that have in many 

cases held up the The dominant mobile operator, Safaricom, 

was further privatised in March 2008, as the government 

sold 10 billion shares of its 60 percent stake on the Nairobi 

Stock Exchange. The public offering means that private 

citizens 46 can share in the wealth of the mobile giant which 

has 10 million subscribers. 

The government’s stake in the company has been reduced 

to 35 percent, leaving privately owned Vodafone Kenya with 

the 40 percent controlling stake. It is hoped that with the 

company now under private control, Safaricom will be even 

more innovative in finding creative solutions to the challenge 

of rural connectivity in Kenya.benefits of ICTs to rural 

populations in Africa. Like Botswana’s ICT Policy, the updated 

communications policy guidelines of Kenya were developed 

in consultation with stakeholders in the communications 

sector and highlight the need for public-private partnerships 

to meet their goals. These goals are stated clearly, including, 

in particular, the target to improve fixed-line rural penetration 

from 0.16 lines to 5 lines per 100 persons by 2015. 

46 Although ordinary Kenyans are invited to buy shares, the minimum buy-in is 

10,000 shillings or about 75 GBP, well out of range for the vast majority of 

ordinary Kenyans; source Times Online; available at: http://business.timesonline. 

co.uk/tol/business/industry_sectors/telecoms/article3642745.ece



The ICT Policy enhances and further develops these target 

goals. The rural fixed-line penetration target holds while the 

number of mobile subscribers is targeted to increase to 

10 million by 2015. It also aims to expand the international 

Internet bandwidth to 1Gbps and to provide all primary 

schools with affordable Internet access by 2015. All secondary 

and tertiary institutions will be connected to affordable 

Internet access and Internet access nodes will be established 

in all district headquarters by 2010. The updated policy 

guidelines also state that the government’s primary role is to 

balance the provision of basic telecommunications in rural 

areas with the provision of advanced information services 

necessary to meet the country’s economic goals. They 

emphasise the provision of affordable basic 

telecommunications services to all under-served areas by the 

telecommunications operators, but with the necessary 

incentives from government where the provision of service 

is deemed uneconomical. 

Section eight of the ICT Policy is dedicated to the provision 

of universal access. It aims to ensure that all citizens have 

access to affordable basic ICT services (as opposed to just 

basic telecommunications) and includes widespread access 

to Internet services as well as the relevant education and 

training programmes necessary to maximise the opportunities 

offered by ICTs. 

Table 2.3b 

The original policy guidelines, first released in 1997, paved 

the way for the Kenya Communications Act, which established 

the independent regulator, the Communications Commission 

of Kenya (CCK), with the authority to regulate the 

telecommunications, radio and postal sectors. One stated 

purpose of the revised policy guidelines is to look at 

telecommunications policy in light of technological 

advancement and convergence. The ICT policy also lists the 

establishment of a technology-neutral licensing framework 

as one of the key strategies to achieve its policy objectives. 47 

However, legislation has yet to establish the new licensing 

regime, and the regulator continues to regulate the 

telecommunications and radio sectors separately. In fact, the 

updated policy guidelines detail 11 different categories of 

licences, separating local, national and long distance licences 

from each other, as well as fixed-line from mobile, VSAT from 

international gateway and services, etc. 

Another strategy of the ICT Policy is to promote public-private 

partnerships to develop the telecommunications infrastructure. 

The policy also specifies the interdependent roles that the 

various ICT stakeholders (government, development partners, 

civil society, investors and operators, consumers and users, 

and ICT professional bodies) are expected to play. For example, 

the Kenya ICT Trust Fund seeks to facilitate public-private 

partnerships to mobilise ICT resources for Kenyan public 

schools. 

Country Fixed Line Operator Status 

Botswana Botswana Telecommunications Policy State Owned 

Cameroon CAMTEL State Owned 

The Gambia GAMTEL State Owned 

Ghana Western Telesystems Ltd Partially Private 

Ghana Telecom Partially Private & State Owned 

Kenya Telkom Kenya State Owned 

Lesotho Telecom Lesotho Partially Private 

Malawi Malawi Telecomms Ltd Partially Private 

Mauritius Mauritius Telecom Ltd Partially Private 

Mozambique TDM Partially Private 

Namibia Telecom Namibia State Owned 

Nigeria NITEL Partially Private 

The Seychelles Cable & Wireless Seychelles Lit (CWS) Fully Private 

Telecom Seychelles Ltd (TSL) - Airtel Fully Private 

Sierra Leone Sierratel State Owned 

South Africa Telkom Partially Private 

Neotel Partially Private 

Swaziland Swaziland Posts & Telecom Corp. State Owned 

Tanzania Tanzania Communications Company Ltd Partially Private 

Uganda Uganda Telecom Partially Private 

MTN Fully Private 

Zambia Zamtel State Owned 

47 Policy objectives include the creation of a modern and efficient 

telecommunications infrastructure with high-speed capacity to enhance public 

service delivery, as well as expansion to rural areas. 

2 

29

2 

Table 2.3c Countries with a Separate Regulatory Authority 

30 



Country Name of Authority Year Created Autonomous in Reports to 

its decision making? 

Botswana Botswana Telecommunications 1996 Yes Annual report to the 

Authority (BTA) Sector Ministry 

Cameroon Agence de Régulation 1998 No,some responsibilities Submits an annual public 

des Télécommunications shared with the minister report on activities 

Gambia Public Utility Regulatory 2004 Yes Legislature 

Authority (PURA) 

Ghana National Communications 1996 Yes Sector Ministry 

Authority 

Kenya Communications Commission 1999 Yes Sector Ministry 

of Kenya 

Lesotho Lesotho Telecommunications 2000 No, decisions approved Sector Ministry 

Authority by the minister 

Malawi Malawi Communications 1998 Yes Sector Ministry 

Regulatory Authority 

Mauritius Information and Communications 2002 Yes Sector Ministry 

Technologies Authority 

Mozambique Instituto Nacional das 1992 Yes Sector Ministry 

Comunicações de Moçambique 

(INCM) 

Namibia Namibian Communications 1992 Yes Sector Ministry 

Commission 

Nigeria Nigerian Communications 1993 Yes Legislature and Sector 

Commission Ministry 

Sierra Leone National Telecommunications 2006 No 

Commission 

South Africa ICASA 2000 No, Decisions approved Legislature and Sector 

by Minister Minister 

Tanzania Tanzania Communications 1994 Yes Annual report to the Sector 

Regulatory Authority Ministry 

Uganda Uganda Communications 1997 Yes Legislature and Sector 

Commission (UCC) Ministry 

Zambia Communications Authority 1994 No, Decisions approved Legislature and Sector 

by Minister Ministry

2.4 Policy Lessons Learnt 



The experiences of Botswana, Ghana and Kenya show that 

despite their differences in geography, market size, number of 

operators, state of liberalisation, operator ownership, etc., their 

telecommunications and ICT policies share some critical 

components with each other and with the successful comparator 

countries. For example, Botswana, Ghana, Kenya and the 

comparator countries have each established independent 

regulators to enforce the telecommunications and ICT policies. 

They have also introduced competition in the telecommunications 

market through the licensing of multiple operators, albeit to 

different degrees. 

Botswana has made recent efforts to further liberalise its 

telecommunications sector by preparing to privatise its fixedline 

incumbent and adopting a technology-neutral licensing 

regime, meaning that the two existing mobile operators can 

compete with fixed-line technology if they find it more costeffective. 

Ghana has already licensed a second national 

operator and has a highly competitive mobile market. Ghana’s 

ICT strategy recognises the benefits of a technology-neutral 

licensing regime but the regulator has yet to convert that 

thinking into action. 

In short, while the six components of an effective ICT strategy 

identified in section 2.2 are important and evidenced by the 

experiences of various countries, the report recognises that 

there is not a single best path for all countries to follow. 

For example, Malawi has adopted three detailed policies 

targeting ICT development and affecting rural development. 

The Malawi Communications Regulatory Authority (MACRA) 

is the independent regulator that licensed the second national 

operator in 2007, 48 and two competing mobile operators 

(Celtel Malawi and Telekom Networks Malawi) are both 

enjoying massive subscriber growth. 49 

Despite targeted universal access policies, the country, which 

is the poorest of the 18 African Commonwealth countries, 

still falls well below the mobile penetration trend line in 

Africa, at just 29 percent. The 10 components of an effective 

ICT strategy are important, but obviously not sufficient for 

successful rural connectivity. Each country will need to tailor 

its ICT policy to its own unique experience. 

Although not discussed in detail here, Mr. Joseph Moatshe, 

the Deputy Permanent Secretary in the Ministry of Works 

Transport and Communications of Botswana, who reportedly 

led Botswana’s sector reform process in the mid-1990s, 

emphasises importance of proper sequencing in developing 

a robust telecommunications and ICT sector. 

Moatshe believes that the process of first establishing a clear 

policy, followed by legislation that is consistent with the 

policy and then the establishment of a regulatory body to 

enforce the legislation and facilitate competition must precede 

the licensing of competitive players in the sector. Moreover, 

he opines that a clear policy is important because transparency 

and consistency attract investors who are willing to make 

long term commitments once they can share in the country’s 

forward-thinking vision. 50 

48 Access Communications has yet to begin operations. 

49 Celtel Malawi and Telekom Networks Malawi experienced 80 percent and 64 

percent subscriber growth in the third quarter of 2007 respectively; ArcChart. 

While this ideal sequencing is to be preferred, it may be 

noted that in many African countries, the urgent need in the 

1990s to provide mobile services to complement the slow 

rollout of fixed lines was such that many countries simply 

gave authorisations (often without licences or even fees) to 

various companies to operate mobile services, prior to the 

establishment of regulatory agencies. 

In a country such as Ghana, mobile operators have been 

engaged in poorly regulated and profitable business for more 

than 10 years, before ever receiving a legal licence to operate. 

Delays in providing access to rural communities is partly due 

to such poorly sequenced ICT planning and implementation. 

As Moatshe suggests, an excellent policy is of no value if 

it is not implemented in practice. In recent years, many 

countries have established ICT implementation agencies in 

order to ensure that the adopted policy is carried out. 

The following section discusses the various roles played by 

ICT implementation agencies. 

2.5 Policy Role of ICT Implementation Agencies 

Many countries have created ICT implementation agencies 

with a wide range of policy roles. For example, some agencies 

promote the utilisation of ICTs in general and are responsible 

for the implementation of the national ICT strategy. Agencies 

in relatively more developed countries focus on the promotion 

of an ICT industry, while their less developed counterparts 

often focus on the development of ICT infrastructure for the 

delivery of e-governance services. 

For example, Malaysia’s ICT implementation agency, the 

National Information Technology Council (NITC), established 

in 1994, promotes the utilisation of ICTs to achieve its various 

national development goals, including the cultivation of a 

burgeoning ICT sector, as well as the development of a 

knowledge society. The NITC claims to emphasise a peoplecentred 

approach to development and champions the 

“informatisation of society” within its 1996 National IT 

Agenda (NITA). 

In Mauritius, the National Computer Board (NCB) was set 

up in 1988 by the National Board Act with similar goals 

to that of Malaysia’s NITC. The NCB likewise promotes the 

ICT industry, with the core mission to transform the small 

island country into a regional ICT hub. The NCB drafts 

ICT policy, runs an e-government centre, assists start-up 

enterprises in the ICT industry through an “incubator centre” 

and builds ICT awareness and skills at the community level. 

In contrast, Ghana is home to the Ghana Information and 

Communications Technology Directorate (GICTeD), which 

focuses less on the creation of an IT industry, and more on 

the development of ICT infrastructure and capacity for the 

provision of e-government services, in particular. GICTeD is 

also responsible for the coordination and oversight of funds 

for ICT initiatives, determining the impact of ICT issues, such 

as technological convergence for example, and ensuring an 

enabling regulatory environment. 

50 ITU, Effective Regulation, Case Study: Botswana, 2001. 

2 

31

2 

In 2003, Ghana established the ICT for Accelerated 

Development Framework. One of its objectives is to promote 

universal and rural access to ICTs with at least 10 percent 

of rural areas having telecommunications access by 2010. 

The framework outlines an ambitious number of policy 

objectives, and soon after, Ghana’s National Information 

Technology Agency Bill went to Parliament in 2006. 

If enacted, the Bill would establish the National Information 

Technology Agency (as an additional and separate entity to 

the GICTeD), to implement the framework. 

In Nigeria, the Nigeria Information Technology Development 

Agency (NITDA) is the IT implementation Agency and focuses 

on infrastructure rollout for urban-rural development and the 

application of ICT activities, including the provision of 

universal and rural access specifically. NITDA is already 

making considerable progress in the short period of time 

since its establishment. 

32 



For example, NITDA pushed the National IT Policy’s Mobile 

Internet Unit (MIU) initiative forward by facilitating the 

building of the unit entirely domestically, thus reducing the 

cost by about 40 percent. 

The MIUs are buses, equipped with a local area network of 

computers, printers, and multi-media facilities. The Internet 

is accessed via a transportable VSAT mounted on the roof of 

the bus. The project has already enhanced Internet training, 

IT literacy and applications in e-education, e-agriculture and 

e-health, as well as trained over 10,000 people in both urban 

and rural areas.



Legislating and Regulating in Support of Rural Connectivity 

3.1 Rural Connectivity Legislation and Regulation 

in the Comparator Countries 

A review of the telecommunications and ICT legislation in 

the comparator countries unearths three common trends, 

which will be discussed in the following subsections. 

The first trend is a slow but methodical move towards a 

converged regulatory framework and converged licensing 

regime. The second related trend is increased reliance on 

competition and market forces, with the use of some regulatory 

tools when necessary, to govern the telecommunications 

sector. 

Table 3.1 

The third is the formal establishment of a universal service 

obligation, and a universal service fund to help meet that 

obligation, when market forces are not sufficient to entice 

operators to service rural areas. 

Table 3.1 below lists each act of telecommunications legislation 

in the comparator countries that affects rural connectivity. 

Country Act of Legislation Year Main Objective and Clauses Affecting Rural Connectivity 

Australia Telecommunications Act 1997 Provides a regulatory framework to promote long-term 

interests of telecommunications users and to ensure that 

standard telephone services, payphones and other services 

are reasonably accessible to all people on an equitable 

basis and are supplied efficiently and economically at 

acceptable performance standards. 

Provides a framework for the provision of digital data 

services with capability comparable to ISDN to be available 

to all people by the start of 2000. 

Permits the ACMA to cancel a licence if the service provider 

fails to pay its universal service levy. 

Telecommunications 1997 Imposes a levy to ensure that standard telephone services, 

(Universal Service Levy) Act & payphones and prescribed carriage services are reasonably 

accessible to all people in Australia. 

Telecommunications (Consumer 1999 Establishes the Universal Service Regime to ensure that 

Protection and Service Standards) all people have access to standard telephone services, 

Act payphones and other services, including digital data services. 

Australian Communications 2005 Merged the Australian Communications Authority (ACA) 

Media Authority Act and the Australian Broadcasting Authority (ABA) in order 

to allow for more efficient and uniform regulation, including 

for rural connectivity. 

3 

33

3 

Table 3.1 (continued) 

34 




Canada Canadian Radio-television and 1976 Established the Canadian Radio-television and 

Telecommunications Commission Telecommunications Commission (CRTC) with regulatory 

Act responsibilities over the broadcasting and 

telecommunications sectors. 

Bell Canada Act 1987 Mandates the prompt provision of telephone service to any 

person who requests it, unless “the premises for which the 

service is requested are not fronting on a highway, street, 

lane or other area along, over, under or on which the 

Company has a main or branch telephone service or system; 

or the telephone on the premises would be situated more 

than 62 metres or such other distance as the Commission 

may specify from the highway, street, lane or other area.” 

Broadcasting Act 1991 Establishes a framework for the regulation of the 

broadcasting sector and the respective objects and powers 

of the CRTC and the Canadian Broadcasting Corporation. 

Telecommunications Act 1993 Promotes the extension of broadcasting services in both 

English and French to all Canadians as resources become 

available, reflecting the different needs and circumstances 

of each official language community. 

Promotes programming that reflects the aboriginal cultures 

of Canada as resources become available. 

Obliges the CRTC to regulate the broadcasting sector in a 

manner that is readily adaptable to scientific and 

technological change, so as to encourage the development 

and application of information technologies for the delivery 

of services. 

Provides regulatory framework to ensure reliable services, 

protect privacy and protect and encourage Canadian media. 

Promotes accessibility of reliable, affordable and highquality 

telecommunications services to Canadians in both 

urban and rural areas in all regions of Canada, as its main 

priority. 

Promotes efficiency and competitiveness, at the national 

and international levels, to foster increased reliance on 

market forces for the provision of telecommunications 

services. 

Mandates that all service providers be Canadian-owned 

and controlled. That is, at least 80 percent of board 

members must be Canadian citizens and Canadians must 

own at least 80 percent of the company’s voting shares. 

Reorganises Bell Canada, declaring its operations to be for 

the general advantage of Canada.





India The Telecom Regulatory Authority 2000 Establishes the Telecom Regulatory Authority of India 

of India Act, (Amendment) (TRAI) to regulate telecommunications services. Requires 

the authority to make recommendations on the licensing 

of new service providers and their respective licensing 

conditions. 

Empowers TRAI to levy fees and ensure compliance to 

universal service obligations. 

Establishes (in the 2000 amendment) the Telecoms Disputes 

Settlement and Appellate Tribunal to mediate disputes 

amongst and between service providers, the Department 

of Telecommunications and groups of consumers. 

Clearly retains the Monopolies and Restrictive Trade 

Commission’s jurisdiction over monopolistic and restrictive 

trade practices. 

The Information Technology Act 2000 Establishes legal recognition for electronic commerce. 

The Communication Convergence 2001 Would establish an autonomous Communications 

Bill Commission to regulate providers of all forms of 

communications, as well as establish a regulatory framework 

for telecommunications, broadcasting, data-communication, 

multi-media and any other relevant technologies and 

services, in light of convergence. 

Indian Telegraph (Amendment) 2004 Would adopt a technology-neutral and service-neutral 

Rules licensing regime similar to that in Malaysia. 

Would empower the Commission to manage spectrum, 

grant licences, set appropriate tariffs and promote and 

enforce the universal service obligation. 

Establishes the Universal Service Obligation Fund (USOF), 

operating under the Department of Telecommunications, 

to meet the needs of the Universal Service Obligation 

(USO), established in the 2002 Universal Service Support 

Policy. 

Empowers the USOF Administrator to formulate the bidding 

procedures by which basic service operators, mobile service 

providers and unified access services licensees compete 

for USOF funds to the USO. 

Establishes the scope of USOF support. Funding will 

support the operation and maintenance of Village Public 

Telephones (the first public telephone installed in a village) 

and the subsequent provision of additional community 

phones in villages with populations greater than 2,000. 

Funds will help to replace Village Public Telephones installed 

prior to 2002 and upgrade public telephones to Public 

Tele-Information Centres in villages with populations greater 

than 2,000, with priority going to villages with post offices. 

High-speed services will be introduced in a phased manner. 

Moreover, the fund will reimburse rural subscribers the 

difference in rental actually charged and the rent prescribed 

by TRAI of Direct Exchange Lines. 

3 

35

3 


36 




Malaysia Communications and Multimedia 1998 Consolidated the powers of the various regulatory authorities 

Commission Act (METP, JTM, the Ministry of Information) for 

telecommunications and broadcasting by establishing a 

single umbrella regulator, the Communications and 

Multimedia Commission (CMC). 

Streamlined the regulatory structure by consolidating the 

many legal statutes, including the Telecommunications 

Act and Broadcasting Act, by putting them under a single 

umbrella regulatory framework. 

Mandates the CMC to make policy recommendations to 

the Minister of Energy, Water and Communications, as well 

as administer the licence application and renewal process. 

Final licensing decisions are the responsibility of the 

Minister. 

Established procedures for the conduct of public inquiries 

by the CMC on regulatory matters. The CMC uses this 

avenue to solicit opinions from stakeholders when drafting 

regulatory policies. Papers are published on CMC’s website 

and the public is invited to submit their views within a 

given period (at least 45 days). 

Allows for the setup of an Appeal Tribunal to review CMC 

decisions and direction when the need to do so arises. 

Establishes industry forums that act as a consultative body 

to the CMC in important issues such as access code, 

consumer code, content code and technical code. Thus 

far, two industry forums have been established, namely 

the Consumer Forum and the Content Forum. 

Communications and Multimedia 1998 Established a technology-neutral and service-neutral 

Act licensing regime, empowering the CMC to reflect the 

convergence of traditional services including 

broadcasting, telecommunications and content. 

Established the Universal Service Fund (USF) to improve 

network facilities and services in underserved areas and 

community groups. Levies six percent of all licensees’ 

weighted net revenues to share the cost of providing 

universal service. 

Encourages the growth of local information resources and 

cultural representation to facilitate the national identity 

and global diversity.





United Communications Act 1934 Established the independent regulatory authority, the 

States Federal Communications Commission (FCC). 

Telecommunications Act 1996 Aims to reduce regulatory barriers to entry and competition 

and codifies the FCC’s historic commitment to advancing 

universal service by ensuring the affordability and availability 

of telecommunications services for all Americans 

3.1.1 Legislation and converged regulation in the 

comparator countries 

The case studies discussed in section 2.3 briefly outlined 

the concept of technological convergence and explained the 

importance of a forward-looking ICT policy that is sensitive 

to the dynamic nature of converging technologies. When 

transitioning to a technology-neutral licensing regime, each 

country must adapt its existing legal framework. Therefore, 

best-practice legislation must establish a single regulator 

with jurisdiction over both the telecommunications and 

broadcasting sectors, a single regulatory framework that 

applies to both sectors and a licensing regime that issues 

licenses on a technology-neutral and service-neutral basis. 

The best timing and method of converged regulation will be 

different in each country, depending on each country’s unique 

situation; however, the merits of moving towards converged 

regulation are clear. ICT service providers in a converged 

regulatory environment can seamlessly deliver those services 

demanded by rural users with those technologies most costeffective 

for rural deployment. 

Mandates the interconnection of telecommunications 

networks, unbundling, non-discrimination, and cost-based 

pricing of leased parts of the network. It further requires 

that competition be established in local markets before 

the incumbent local exchange carriers are allowed to enter 

long distance markets. 

Attempts to introduce service-based competition in the 

last-mile local loop network, by requiring incumbent local 

exchange carriers to sell at wholesale prices to entrants 

any retail service that they offer. Also requires that incumbent 

local exchange carriers (ILECs) unbundle their networks 

and offer unbundled network elements (UNEs) for lease 

to entrants at cost plus reasonable profit. 

Directs the FCC to reform its universal service systems by 

making them “explicit and workable in an increasingly 

competitive market.” It therefore preserves subsidised local 

service to achieve universal service, but imposes the 

requirement that subsidisation is transparent and funds 

are raised in a competitively neutral manner. Thus, the Act 

leads the way to the elimination of subsidisation of universal 

service through the traditional method of high access 

charges. 

Directs the FCC to create two additional arms of the 

universal service support mechanism. The schools and 

libraries program and the rural health care program provide 

support for telecommunications services and Internet 

access. 

Malaysia was one of the first countries to set foot into the 

age of technological convergence with the passage of two 

acts of legislation in 1998. The first, the Communications 

and Multimedia Commission (CMC) Act established the 

independent converged regulator and streamlined the regulatory 

framework to govern both the telecommunications and 

broadcasting sectors as one. According to the ITU, the CMC 

enjoys a large degree of flexibility and personal discretion in 

formulating policies and regulations in keeping with the 

constantly evolving telecommunications sector. In complement, 

the Communications and Multimedia Act established the 

technology-neutral and service-neutral licensing regime and 

aims to facilitate the burgeoning ICT industry. 

Previous to the unified license regime, Malaysian operators 

applied for one or more licenses of 31 different types. Now, 

the much simpler regime consists of four types of generic 

licenses described in Box 3.1.1. Migration to the new licensing 

regime began in 1999 and was completed in 2002. 

3 

37

3 

Box 3.1.1: Licensing for Convergence 

Following are the four types of licenses offered by the 

Malaysian CMC Act: 

1. Network Facilities Provider (NFP) - infrastructure 

owners of satellite earth stations, fibre optic 

cables,communications lines and exchanges, 

radio transmission equipment and broadasting 

equipment; 

2. Network Service Providers (NSP)-providers of 

basic connectivity and bandwidth 

to support various applications; 

3. Applications Service Providers (ASP) – providers 

of particular functions such as voice, data and 

content-based services. 

This would also include Internet access, VOIP 

and directory services; 

4. Content Application Services Provider (CASP)providers 

of a special subset of applications 

services that include traditional broadcast as 

well as Internet content services. 

Licenses can be issued on an individual or aclass 

basis,depending on the level of regulatory control 

that is deemed necessary. This is particularly 

so in the case of NFP licenses where there are 

a number of reasons to limit the number of 

licensees. 

These include resource constraints, such as 

spectrum and numbering, the avoidance 

of duplication or national security. Individual 

licenses require approval by the Minister and 

involve an application fee of RM10,000. 

Examples of individual licenses include public 

fixed-line and mobile telephony. 

Class licenses, on the other hand, simply require 

registration on the part of the applicant and the 

payment of a RM 2,500 fee. Examples of services 

that are class licensed include Internet access 

and radio paging. 

Source: “Building Digital Bridges: The Case of Malaysia”, 2004. 

International Telecommunication Union and Korea Agency for 

Digital Opportunity and Promotion. 

Available from: www.itu.int/digitalbridges 

Australia followed suit when, in 2005, the Australian 

Communications and Media Authority (ACMA) Act merged 

the Australian Communications Authority (ACA) and the 

Australian Broadcasting Authority (ABA) to form one body 

with jurisdiction over both sectors as one. India is also 

recognising the immediacy of adopting a converged regulatory 

framework and the associated opportunities for increased 

rural access. 51 The Telecom Regulatory Authority of India 

(TRAI) Act established the independent regulator with the 

authority to regulate just the telecommunications sector. TRAI 

makes recommendations to the Department of 

Telecommunications (DOT) when it sees fit to issue new 

technology-neutral licenses. However, the 2001 

Communication Convergence Bill, if and when passed, would 

lead India fully into the era of technological convergence. 

The Bill establishes guidelines to make the licensing regime 

not only technology-neutral, as it is now, but also serviceneutral. 

51 See Gupta, S.N. Principal Advisor, TRAI, “Developing Regulatory Ecosystem 

Enabling NGN – India” presented at ITU Workshop on IP-enabled NGNs, 

Geneva, March 2006. 

52 Notes for an address by Konrad von Finckenstein, Q.C.,Chairman, CRTC to the 

International Institute of Communications Regulators Forum London, England, 

October 20, 2007. Available at: http://www.crtc.gc.ca/eng/NEWS/SPEECHES/ 

2007/s071020.htm 

38 



With this fully unified licensing regime, the proposed converged 

regulator, the Communications Commission, would regulate 

telecommunications and broadcasting as a single sector, 

allowing rural operators to choose the most cost-effective 

technology and provide those services demanded by rural 

users. 

In contrast, the Canadian Radio-television and 

Telecommunications Commission (CRTC) is a multi-sectoral 

regulator with jurisdiction over separate broadcasting and 

telecommunications sectors, which are regulated under two 

distinct regulatory regimes. The Canadian 1991 Broadcasting 

Act stipulates CRTC’s responsibility to regulate all aspects of 

the broadcasting sector, while the Telecommunications Act 

outlines CRTC’s role in regulating telecommunications service 

providers. The Chairman of the CRTC, Konrad von Finckenstein 

explained that “since our mandate is defined in two separate 

Acts of Parliament, it's not surprising that we take a different 

regulatory approach to each of the industries we regulate.” 52 

For example, the Telecommunications Act directs the regulator 

to depend on market forces as much as possible and the regulator 

therefore places a high priority on deregulation and competition 

in the telecommunications sector. The resulting competition, 

in combination with the rural telecommunications policies 

discussed in section 2.2, has successfully increased penetration 

of rural telecommunications. 

In contrast, Industry Canada has relied on other mechanisms 

to extend broadcasting services to rural areas. Parliament 

placed less emphasis on competition in the broadcasting 

sector and granted CRTC responsibility to leverage the social 

and cultural contributions that broadcasting can make to the 

Canadian sense of identity. The 1991 Broadcasting Act 

requires the broadcasting sector to carry a significant proportion 

of Canadian content, and both programming content and 

industry participation must reflect the diversity of the 

population. Broadcasting services must be provided in both 

English and French and promote programming relevant to 

aboriginal cultures. Multi-lingual and multicultural African 

countries may also find it necessary to legislate for the 

inclusion of relevant local content, especially in native 

languages, to support social and cultural agendas and drive 

demand for Internet. That said, Finckenstein states, “Our 

two distinct regulatory regimes for telecom and broadcasting 

have served Canadians well for many years. But we doubt 

that this dual approach can remain sustainable for very much 

longer.” Technological convergence means that Canadian 

telecommunications companies are already entering 

broadcasting distribution markets and cable TV companies 

are providing telephone services, while both provide Internet 

and wireless services. Regulation under two distinct legislative 

regimes is now antiquated, and new legislation is needed to 

streamline the broadcasting and telecommunications 

operations and regulations. 

3.1.2 Regulatory mechanisms to promote competition 

in the U.S. 

The establishment of a unified licensing regime is just one 

mechanism by which legislation and regulation can promote 

competition in the telecommunications sector. Other 

mechanisms include cost-based interconnection, unbundling 

network elements, facilities-sharing and implementation of 

number portability, among others.



According to some, the US seems to be “dancing to a different 

drummer,” 53 with American telecommunications legislation 

and regulation categorically lacking technological neutrality. 54 

Instead, American legislation aims to foster a competitive 

environment through a number of various deregulation 

mechanisms. For example, to incite competition in the local 

exchange sector, the FCC mandates interconnection of 

telecommunications networks, unbundling, non-discrimination, 

and cost-based pricing of leased facilities. 

In the United States, the 1996 Telecommunications Act 

established competition in local telephony, which was 

previously monopolised by the incumbent Regional Bell 

Operating Companies (RBOCs). The Telecommunications Act 

also prohibited RBOCs from entering long distance markets 

until competition had been established in the local market. 

To do this, incumbent local exchange carriers were required 

to lease unbundled network elements to new entrants (called 

competitive local exchange carriers) at cost plus reasonable 

profit. Therefore, competitive local exchange carriers could 

choose to build their own infrastructure or lease infrastructure 

from the incumbent in order to compete profitably. 

The current emphasis on competition and deregulation in 

the U.S, is not without criticism. The National Telecom 

Cooperative Association (NTCA) argues that the FCC does 

not fully understand the potential negative impact of procompetitive 

policies in rural areas, where deployment of 

digital subscriber line (DSL) technology by RBOCs lags behind 

that of small, independent telephone companies. 

Given the small-scale of some rural communities and the 

corresponding high investment costs for deployment of new 

infrastructure, pro-competitive policies can undermine the 

economic viability of small rural operators. Therefore, the US 

experience suggests that regulators in developing countries 

that seek to accelerate rural access through licensing specific 

rural operators must exercise circumspection in regulating 

how such rural ICT operators shall compete and cooperate 

with major operators. 

3.1.3 Legislating for and regulating universal service in 

the comparator countries 

Despite the unequivocal benefits of competition and, by 

extension, legislation, must also be in harmony with policy 

goals relating to universal service and rural connectivity. 

Legislation from Australia, India and the U.S., discussed in 

this subsection, depicts how universal service obligations 

can best be met and will vary from country to country. 

A number of approaches are available to implementing 

countries. Australia’s 1999 Telecommunications (Consumer 

Protection and Service Standards) Act established the country’s 

universal service regime and details how the universal service 

obligation is to be enforced. The universal service obligation 

includes the equitable provision of standard telephone services, 

payphones and prescribed carriage services wherever 

Australians live and work. The Act empowered the former 

Minister of Communications, IT and Arts 55 to determine what 

is considered “reasonable access,” what are the universal 

service areas subject to the universal service obligation and 

which of those are subject to a contestable universal service 

obligation. 

53 Marcus, J.S. “Is the U.S. Dancing to a Different Drummer?” Communications 

and Strategies, 60, 4th quarter 2005, p.39. 

54 However, the Federal Communications Commission (FCC) Commissioner 

Deborah Taylor Tate emphasised the steps taken to move towards technologyneutrality, 

such as the classification of all broadband services, whether DSL, 

BPL or wireless technologies as “information services”, which will be subject 

to less tariffs, price controls and unbundling requirements. Source: Remarks 

of Commissioner Deborah Taylor Tate, West Africa ICT Roadmap to Opportunities 

Conference, Accra, 8-10 July 2008. 

In order for a universal service obligation to be contestable, 56 

the ACMA must determine that the area significantly benefited 

from having more than one operator provide services during 

a one-year trial period. The Act sets up the universal service 

regime with a considerable level of detail, thus providing the 

ACMA with relatively comprehensive guidelines for its 

implementation. 

The 1999 Telecommunications (Consumer Protection and 

Service Standards) Act also establishes the universal service 

account and a framework for the disbursement and collection 

of universal service levies and credits. The ACMA must 

advise the Minister on the determination of the amount of 

each subsidy for each universal service area 57 and the 

circumstances under which a universal service provider is 

eligible to receive a subsidy. All service providers are required 

to contribute a portion of their revenue to the universal service 

account, unless their gross telecommunications revenue is 

below a certain threshold to be determined by the Minister. 

To ensure transparency of the universal service account, the 

ACMA must publish an assessment of the claims made by 

the universal service providers, and each claim must be 

accompanied by a report of an approved auditor before any 

subsidies are paid out. 

The Minister also has the power to choose who will be the 

primary universal service provider for a particular universal 

service obligation in each universal service area. 58 In turn, 

the universal service provider must submit a draft policy 

statement and a draft standard marketing plan to the ACMA 

for approval. The draft policy statement outlines, in general, 

how the provider will supply equipment, goods or services to 

the area, while the draft standard marketing plan details how 

the provider will supply and market them, specifying 

timeframes and performance standards, if the Minister 

requires. The Act ensures that all policies and plans undergo 

public consultation and are approved by the ACMA in a timely 

manner. 

In contrast, in India, the 2004 Indian Telegraph (Amendment) 

Rules establish a competitively operated Universal Service 

Obligation Fund (USOF) in order to implement the 2002 

Universal Service Support Policy. The rules empower the 

USOF Administrator to formulate bidding procedures by which 

basic service operators, mobile service providers and unified 

access services licensees compete for USOF funds. 

The funding must be used to support the operation and 

maintenance of Village Public Telephones (VPTs), the first 

public telephone installed in a village, and the subsequent 

provision of additional community phones in villages with 

populations greater than 2,000. 

Funds can also help to replace VPTs installed prior to 2002 

and upgrade public telephones to Public Tele-Information 

Centres in villages with populations greater than 2,000. The 

establishment of Public Tele-Information Centres will occur 

first in villages with post offices, and high speed services 

will be introduced to the centres in a phased manner. Moreover, 

the fund extends universal service by reimbursing rural 

subscribers the difference in rental actually charged and the 

rent prescribed by TRAI. 

55 Power now transferred to the Department of Broadband, Communications and 

the Digital Economy 

56 More than one universal service provider may compete in these universal 

service areas. 

57 The Minister must ensure that each universal service area is covered by a 

subsidy. 

58 The Minister must ensure that there is at least one primary universal service 

provider for each universal service obligation in each universal service area 

at all times. 

39 

3

3 

In the case of the U.S., American legislation also provides 

for a Universal Service Fund (USF) and several universal 

service mechanisms. The USF was created by the FCC in 

1997 to meet the universal service goals mandated in the 

1996 Telecommunications Act. Since 1999, all carriers 

contribute to the USF based on interstate and international 

end-user revenues. 

Prior to the 1996 Telecommunications Act, the FCC already 

defined universal service and implemented two universal 

service mechanisms. Universal service was defined as 

the ability to place and receive telephone calls, use touch 

tone dialling, use single party service (as opposed to a shared, 

multi-party line), access emergency services, access operator 

services, place long distance telephone calls, turn off long 

distance calling and access directory assistance. The two 

original universal service support mechanisms 

are “High Cost” support and “Low Income” support. 

The “High Cost” support programme operates like a traditional 

universal service fund, enabling carriers with above-average 

costs to recover some of their costs. “Low Income” support 

includes the Lifeline programme, which provides low income 

households with discounts on the cost of monthly telephone 

service, and the Link-Up America programme, which subsidises 

installation and start-up costs for low-income households. 

The two low-income support programmes were modified in 

2000 to allow mobile operators to compete for funds, making 

the programme technology-neutral to some degree. The 

breadth of the programmes was also extended to address the 

needs of households on tribal lands. 

The 1996 Telecommunications Act then directed the FCC to 

create two additional universal service mechanisms, the 

Schools and Libraries programme and the Rural Healthcare 

programme. The Schools and Libraries programme, also 

known as E Rate, offers telecommunications services, Internet 

access and internal connections at discounted rates ranging 

from 20 to 90 percent. The Rural Healthcare programme 

ensures that rural healthcare providers can purchase 

telecommunications services at rates comparable to those in 

urban areas. Rural health care providers are eligible for 

discounts of up to 50 percent on the monthly cost of advanced 

telecommunications and information services. Furthermore, 

rural healthcare providers that must use costly mobile satellite 

services can be refunded the difference between their actual 

cost and the cost of a comparable urban fixed-line service. 

Table 3.2 

40 



3.2 Rural Connectivity Legislation and Regulation in 


Now that Commonwealth African countries have made 

considerable progress in developing comprehensive ICT 

policies, as discussed in section 2.3, and thanks in part to 

the post-WSIS global focus on national e-strategies, these 

countries must ensure that their legislation and regulation 

are in harmony with their stated policy objectives. 

The issues relating to convergence, competition and universal 

access, identified in section 3.1, suggest ways in which 

Commonwealth Africa can legislate and regulate to achieve 

their stated policy objectives. 

By implication, most African and other developing countries 

could benefit from the same experiences and best practices 

discussed above. In drawing policy recommendations, this 

section recognises that each of the 18 African Commonwealth 

countries is at a different stage of policy implementation. 

For example, some countries, such as Botswana, Nigeria and 

Kenya, have enacted legislation to adopt effective unified 

licensing regimes regulated by independent, converged 

regulators. Meanwhile, a handful of other countries have yet 

to give the regulatory authority free reign. For example, the 

Cameroonian regulator still shares some powers with the 

Minister of Posts and Telecommunications, and the Zambian 

Communications Commission must have its decisions approved 

by the Minister of Communications and Transport. In The 

Seychelles, the regulator is effectively still a department 

within the Ministry. While enactment of a universal access 

regime is an important step towards achieving rural 

connectivity, legislating for universal service obligations and 

levies before the establishment of an independent regulator 

could result in abuse of dominant market position by stateowned 

incumbents and may do more harm than good. 

Table 3.2 lists the telecommunications acts of legislation in 

each of the 18 African Commonwealth countries along with 

a brief description of their primary objectives and relevance 

to rural connectivity. The first subsection below explores how 

legislation establishing an independent regulator is a critical 

component of a successful universal access regime. The second 

discusses how legislation enabling a technology-neutral regulatory 

framework impacts rural connectivity. Legislation also provides 

for a number of regulatory tools, such as interconnection 

requirements, tariff structures and spectrum management, all 

of which must be effectively implemented to promote 

competition and an enabling environment for universal access. 

These are discussed in the third subsection. The final subsection 

focuses on legislation and regulation that establish universal 

service and access regimes, including universal service and 

access agencies and funds. 

Country Act of Legislation Primary Objective and Clauses Affecting Rural Connectivity 

Botswana Botswana Telecommunications Abolished Botswana Telecommunications Corporation’s (BTC) 

Act 1996 monopoly, introduced competition, and established the Botswana 

Telecommunications Authority (BTA), responsible for licensing all 

telecom operators. 

Cameroon Telecommunications Act 1998 Established the regulatory authority, the Agence de régulation des 

télécommunications (ART), which shares powers with and answers 

to the Ministry of Posts and Telecommunications. 

Privatised the public mobile operator CAMTEL-MOBILE and opened 

the mobile market to competition. Also expressed intent to privatise 

the fixed-line incumbent CAMTEL. 

Established the Special Telecommunications Fund, which 

is to be managed by ART.





The Gambia Public Utilities Regulatory Established the Public Utilities Regulatory Authority (PURA), 

Act 2001 responsible for regulating electricity, water and telecommunications 

and tasks the regulatory authority with the determination of the 

appropriate universal access mechanism for The Gambia. 

Telecommunications Bill 2007 Still under deliberation, but is intended to encourage a “more 

rational liberation” of the ICT sector. 59 

Ghana National Communications Established the NCA regulatory body to regulate communications 

Authority Act 1995 by wire, cable, radio, television, satellite and other means of 

communications technology and abolished the Post and 

Telecommunications Corporation monopoly. 

Telecommunications Act 2005 Establishes the Ghana Investment Fund for Telecommunications 

(GIFTEL) to collect levies from telecommunications licensees and 

redistribute funds to promote universal access and service. 

Clearly establishes the functions of the Ministry and the functions 

of the regulatory authority. 

Telecommunications Bill 2006 Further legislates on the role and powers of GIFTEL, which provides 

basic communications and Internet services in rural areas by awarding 

grants on a non-commercial but competitive basis. 

Direct disbursements of up to US$50,000 will be awarded to 

applications relating to unserved rural areas or applications providing 

‘rural packages’ that aim to enhance access through public telephony 

kiosks or telecentres. 

GIFTEL may make recommendations on tariff rebalancing and 

initiation and termination costs to the National Communications 

Authority (NCA). 

Mandates that the NCA ensure that special interconnection rates 

encourage the provision of rural telecommunication services and 

that calls to rural areas shall not be priced higher than urban calls 

as a result of any special interconnection agreement. 

Will facilitate electronic transactions on a technology-neutral basis 

Electronic Transactions Will establish the National Information Technology Agency (NITA) 

Bill 2006 to promote the provision of high quality information technology. 

National Information Derived from the e-legislation legal framework to govern transaction, 

TechnologyAgency Bill 2006 computer misuse, cyber security, data protection and electronic 

funds transfer. 

Electronic Communications Will provide for spectrum management, testing inspection, and the 

Bill 2006 power to request for information, rural communications services 

and monitoring, evaluation and tariffs for rural communications. 

Kenya Kenya Communications Established the regulatory authority, the Communications Commission 

Act 1998 of Kenya (CCK). 

Aims to streamline and introduce regulatory standards in the 

information technology sector and increase the power of the CCK. 

Kenya Communications Amends the 1998 Kenya Communications Act, renaming it the 

Amendment Bill 2006 Kenya Information and Communications Act, and creating regulatory, 

advisory and dispute resolution bodies to support the national 

information and communications technology policy. 

Proposes the establishment of a Universal Service Fund under the 

CCK’s management. The fund shall support widespread access to 

ICT services and promote capacity building and innovation. It will 

be financed by levying licensed operators, returns on CCK’s 

investments and through gifts and grants. 

59 “New Telecommunications Bill in the Offing”, Gambia News, 28 May 2007, [online], 

available at:http://www.gambianow.com/news/Technology/New_Telecommunications_ 

Bill_in_the_offing.html 

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Lesotho Lesotho Telecommunications Established the independent regulatory authority, the Lesotho 

Authority Act 2000 Telecommunications Authority (LTA). 

Charges the LTA with the development of annual objectives for the 

provision of basic telephone service to the widest number of users. 

Permits the LTA to establish a Universal Access Fund. The LTA 

could levy universal access fees or make license conditions requiring 

every service provider to establish an internal universal access fund, 

which shall solely be used with the LTA’s approval for infrastructure 

development and expansion in unserved areas. 

Malawi Malawi Communications Establishes a legal framework for the regulation and provision of 

Act 1998 telecommunications, broadcasting and postal services. 

Establishes the independent regulatory authority, the Malawi 

Communications Regulatory Authority (MACRA). 

Restructures the Malawi Posts and Telecommunications Corporation 

(MPTC) into separate telecommunications and postal businesses, 

privatising Malawi Telecommunications. 

Allows MACRA to include the provision of services to rural or other 

specified areas in any licensing conditions. 

Mauritius National Board Act 1988 Established the National Computer Board (NCB) to promote the 

development of ICTs. 

Telecommunications Act 1998 Established the Mauritius Telecommunications Authority. 

Electronic Transactions Establish the legal infrastructure necessary to regulate electronic 

Act 2000 commerce. 

ICT Act 2001 Establishes the Information and Communication Technologies 

Authority, the Information and Communication Technologies Advisory 

Council, the Information and Communication Technologies Appeal 

Tribunal and provides for the regulation and democratisation of 

ICTs. 

Instructs the ICT Authority to establish and manage a Universal 

Service Fund and to determine the universal service obligation as 

part of the licensing conditions. 

Mozambique Telecommunications Act 1999 Extended TDM’s monopoly over national and international telephone 

services until 2004. Prohibits ISPs from offering VOIP. 

Prohibited universal service operators from offering services without 

the respective rates being approved by the government as the 

telecommunications universal service price regime is to be regulated 

by specific regulation 

Namibia Namibian Communications Established the Namibian Communications Commission (NCC) as 

Commission Act 1992 independent regulator. The MIB provides policy guidelines for the 

NCC, who is responsible for regulating the mobile telecommunications 

sector. The fixed-line sector, however, is regulated by the MWTC. 

Post and Telecommunications Incorporated Telecom Namibia Ltd. and Telecom Post Ltd. 

Act 1992 

Communications Bill 2007 Aims to create a single independent authority, the Communications 

Authority of Namibia (CAN). Regulation of the fixed-line 

telecommunications sector (and therefore Telecom Namibia), currently 

the responsibility of the Ministry of Works, Transport and 

Communication (MWTC), would be transferred to the new regulator. 

The Ministry of Information and Broadcasting (MIB) would be 

responsible for providing CAN with policy guidelines.





Seychelles Broadcasting and 

Telecommunication Act 2000 

Sierra Leone Telecommunications Act 2006 Established the National Telecommunications Commission and 

provides for the licensing and regulation of telecommunications 

operators. 

Telecommunications Promotes universal access to basic telecommunication services and 

Amendment Act 2007 fair competition for the benefit of users and investors in 

telecommunication networks and services. 

South Africa 1996 Telecommunications Established the independent regulator, the South African 

Act, Act 103 Telecommunications Regulatory Authority and the Universal Service 

Agency. 

2000 ICASA Act 13 Promotes the provision of a wide range of universal and affordable 

telecommunication services in its stated objective. 

Established the Independent Communications Authority of South 

Africa (ICASA), thus dissolving the Independent Broadcasting 

Authority and South African Telecommunications Regulatory Authority 

and transferring their functions to ICASA. 

2001 Telecommunications Provides guidelines for the provision of under-serviced area licences 

Amendment Act (USALs) in areas where teledensity is less than five percent. The 

USAL shall provide any telecommunications services, including 

VOIP services, fixed-mobile services and public payphones. 

2005 Electronic Established the Universal Service and Access Agency of South Africa 

Communications Act (USAASA). 

Provides for the facilitation and regulation of electronic 

communications and transactions, the development of a national 

e-strategy and promotes universal access to electronic communications 

and transactions and the use of electronic transactions by SMEs. 

Provides for human resource development in electronic transactions, 

prevents abuse of information systems and encourages the use of 

e-government services. 

Swaziland Act No. 11 of 1983 Established and regulates the Swaziland Posts and 

Telecommunications Corporation (SPTC). 

Draft Telecommunications 

Legislation 

Tanzania Tanzania Communications Established the independent regulator, the Tanzania Communications 

Act of 1993 Commission. 

Tanzania Communications Merged the Tanzania Communications Commission and Tanzania 

Regulatory Act No. 12 of 2003 Broadcasting Corporation into a new entity, the Tanzania 

Communications Regulatory Authority (TCRA). 

Universal Communications Established a fund that will promote ICTs in rural and under-served 

Service Act 2006 urban areas by subsidizing operators investing in rural areas. The 

fund is not yet operational. 

Uganda Uganda Communications Encourages national coverage of communications services and 

Act 1997 products, with emphasis on provision of communications services; 

and establishing and administering a fund for rural communications 

development. 

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Zambia Zambia Telecommunications Established the regulatory authority, the Communications Authority 

Act 1994 of Zambia (CAZ). 

Prohibits telecommunications service providers from exercising 

undue discrimination against persons living in rural areas in provision 

of services. 

Zambia Draft ICT Bill 2007 Will provide the basis for regulation and licensing of Information 

and Communication Technology activities, promote the 

implementation of the Information and Communication Technology 

Policy, recognise convergence of technologies and facilitate widespread 

access to ICTs. 

3.2.1 Legislating for an independent regulator in 


As evidenced in section 3.1.1, the telecommunications and 

ICT sector must be effectively and fairly regulated in order 

for countries to achieve their stated rural connectivity 

objectives. InfoDev argues that effective regulation of a 

competitive communications sector is critical to the success 

of a universal access regime. 60 An effective and independent 

regulator is needed to ensure fair competition and an enabling 

environment for universal access, but it is also necessary to 

implement the intricate and complex mechanisms of the 

universal access regime itself. 

Nine of the 18 African Commonwealth countries still retain 

full ownership of their incumbent fixed-line 

telecommunications operator. And all but the Seychelles 

retain some financial interest in their fixed-line incumbents. 

Therefore, an independent regulator, capable of establishing 

and enforcing impartial rules, is even more critical in 

Commonwealth Africa, where the government continues to 

be a market player. Table 2.3c in Chapter 2 displays the 

status of regulatory authorities in each of the Commonwealth 

African countries. Five of the eighteen are still classified as 

non-autonomous in their decision-making by the ITU, and 

Swaziland does not have a separate regulatory body at all. 

In addition, it would be helpful if regulation were standardised 

within regions. In the 2008 Vodacom Annual report, Vodacom’s 

Chairman Oyama Mabandla called for a protocol on regulation 

and taxation on the electronic communications sector in the 

Southern African Development Community (SADC), which is 

comprised of Angola, Botswana, the DRC, Lesotho, 

Madagascar, Malawi, Mauritius, Mozambique, Namibia, South 

Africa, Swaziland, Tanzania, Zambia and Zimbabwe. 

60 http://icttoolkit.infodev.org//en/Section.3198.html 

Requires CAZ to take all reasonable steps to extend provision of 

telecommunication services throughout all urban and rural areas. 

Universal services include emergency services, public call box 

services, directory information services and maritime services. 

Establishes the Universal Access Fund (UAF). CAZ is mandated to 

determine a system to promote the widespread availability and use 

of communications networks and services by encouraging the 

installation infrastructure in underserved areas. The determination 

of underserved areas shall be based on the level of competition, 

the availability of services and the commercial viability of infrastructure 

installation or provision of services. CAZ shall charge a levy on the 

operators’ annual revenues to support the fund. 

3.2.2 Legislating for converged regulation in 


Technology-neutral regulatory regimes can accelerate rural 

connectivity because they allow operators to choose the most 

cost-effective technology for rural deployment. With the 

phenomenal growth of mobile operators and the cost-efficiency 

of mobile technology for rural connectivity, many of the 

incumbent fixed-line operators, who are excluded from 

operating wireless technologies, are at an inherent 

disadvantage. Therefore, technology-neutral regulatory regimes 

can also help create a level playing field among operators 

competing for universal service subsidies and/or universal 

service licences. 

Commonwealth Africa is making some headway in establishing 

such regulatory regimes. The first step is to empower a single 

regulatory authority with jurisdiction over both the 

telecommunications and broadcasting sectors. For example, 

Tanzania has implemented a technology-neutral licensing 

regime and the Tanzania Communications Regulatory Authority 

Act took the first step by merging the Tanzania Communications 

Commission and Tanzania Broadcasting Corporation into a 

new entity, the Tanzania Communications Regulatory Authority 

(TCRA). Although Ghana is not yet technology-neutral, the 

Ghana Communications Authority Act merged the powers of 

four regulatory bodies (The Ministry of Transport and 

Communications, Ministry of Finance, Ghana Frequency 

Regulation and Control Board, and Ghana Post and 

Telecommunications) to empower the National 

Communications Authority (NCA) to regulate all 

communication, whether by wireless, cable, radio, television 

or satellite.



Kenya boldly paved the way forward for Africa when it adopted 

a unified licensing framework (both technology- and serviceneutral) 

in 2004. Legislation now permits any communications 

technology to be used to provide any communications service. 

The previous cumbersome service-specific licensing regime 

issued 46 different types of licences. The regime is gradually 

being phased in with a transition period, during which three 

licenses are being issued, i.e. individual network operator 

licence, non-facility based service provider licence, and 

frequency licence, before completely migrating to the single 

unified license. 

Botswana, which is noted for its success in being among the 

first in Africa to establish an effective and independent 

regulator (see section 2.3.1), adopted a technology- and 

service-neutral licensing framework in 2007. Its stated 

objectives are to open the market for more effective competition 

and more efficient operation, as well as pave the way to full 

market liberalisation. And the implications for competition, 

for a country with just three national operators, have indeed 

been great. The state-owned incumbent operator was finally 

allowed to compete in the mobile market, and all three 

operators are permitted to compete in international 

telecommunications, including the operation of international 

gateways. Before the adoption of the new licence regime, the 

incumbent BTC was prohibited from using wireless technologies 

and was therefore at an inherent disadvantage when competing 

for universal service subsidies. The harmonisation of this 

legislation with the telecommunications and ICT policies has 

been critical to Botswana’s progress in extending mobile 

coverage. 

3.2.3 Legislating for competition, interconnection, tariffs 

and spectrum 

Legislation also provides for a number of regulatory tools, 

such as interconnection requirements, tariff structures and 

spectrum management, all of which must be effectively 

implemented to promote competition and an enabling 

environment for universal access. Competition is important 

for rural connectivity because it drives expansion into the 

untapped markets of rural areas, pushing tariffs down, 

improving the quality of service and stimulating the introduction 

of new technologies and services. Economically unviable rural 

areas may be targeted for connectivity by operators who see 

the future potential for profit and want to roll out their 

infrastructure and establish their brand in the rural area first. 

The expansion of rural connectivity is largely due to policy 

and legislation that liberalise the market and regulation that 

prohibits anti-competitive behaviours. 

Interconnection Mediation 

Incumbent fixed-line operators often have little incentive to 

allow new market entrants to access their networks at affordable 

interconnection rates. Instead, the incumbent may prefer to 

preserve its market power and limit competition by refusing 

to interconnect or charge exorbitant interconnection prices. 

For example, Malaysia’s two private mobile operators have 

the right to compete in the fixed-line market, but have thus 

far been reluctant, due to Telekom Malaysia’s dominance of 

97 percent of the market, and the associated unfavourable 

interconnection terms. For example, in the first commercial 

agreement signed between TMB and Celcom, the latter was 

required to pay full PSTN rates and to meet the full cost of 

setting up the points of interconnection. 61 For this reason, 

interconnection mediation is a crucial regulatory responsibility 

to foster a competitive market. 

61 http://www.ndaventures.com/Malaysia_Telecom_Brief.pdf 

For rural areas, in particular, the economic viability of 

telecommunications depends on negotiating favourable 

interconnection terms, which reflect the substantially higher 

operation and maintenance costs of rural networks. InfoDev 

suggests that a geographically de-averaged terminating rate 

regime could compensate for the higher costs of rural networks 

and provide incentive for operators to invest in rural expansion. 

Rural areas generally receive a far greater number of incoming 

calls than outgoing, and therefore, asymmetric interconnection 

rates are one solution. Ghana’s Telecommunications Bill 

2006 mandates that the NCA ensure that special 

interconnection rates encourage the provision of rural 

telecommunication services and that calls to rural areas are 

not priced higher than urban calls, as a result of any special 

interconnection agreement. Likewise, Malawi’s 2002 Rural 

Communications Policy directs MACRA to adopt special 

interconnection rates for rural telecommunication service 

providers. Thus, interconnection negotiations must establish 

a fair sharing mechanism to ensure that rural 

telecommunications operators are fairly compensated for 

carrying the service to its final destination in rural areas. 

In general, legislation in the African Commonwealth countries 

leaves interconnection up to commercial negotiation, and 

the regulator will only get involved after an invitation to 

mediate when no agreement can be reached. For example, 

Mauritius’ 2001 Act dictates that every network licensee 

shall grant access to their network, but when the operators 

cannot come to agreement about proposed interconnection, 

either party may request the Information and Communication 

Technologies Authority (ICTA) to act as an arbitrator. In this 

case, the ICTA must specify: 

• The facilities and the network covered by 

the award 

• The extent of any network over which one party is 

required to carry information and communication 

messages 

• The points and technical standards of 

interconnection 

• The rates of interconnection 

• The effective date of the award 

Likewise, in Uganda, interconnection is a matter of commercial 

negotiation, and the regulator maintains oversight until final 

approvals have been made. However, the regulator can impose 

asymmetric interconnection rates for rural areas so that rural 

users enjoy the same tariff rates as urban users. 

Interconnection disputes are common and can delay the 

development of competition in the telecommunications sector. 

Dispute resolution in court is a slow and costly process and 

for this reason many countries’ legislation establishes an 

independent dispute resolution body, either as a specialfunctions 

arm of the regulatory authority or as a separate 

entity. In fact, member countries of the World Trade 

Organisation (WTO) must establish an independent domestic 

dispute resolution body under the Agreement on Basic 

Telecommunications, so that interconnection disputes can 

be settled within a reasonable period of time. 

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3 

In Canada, the CRTC Interconnection Steering Committee 

provides a forum for operators to negotiate competition issues 

alongside third-party mediation. The CRTC has also established 

expedited procedures for dispute resolution when issues are 

of a factual nature or for urgent tariff issues. 

Tariff Rebalancing 

Nearly all the telecommunications and ICT policies discussed 

in Chapter 2 include the provision of not just universal access 

to services, but affordable access. In an effort to keep prices 

affordable for rural customers, operators have cross-subsidised 

rural services with artificially high prices for other services, 

such as long-distance and international calling. For example, 

in the United States, the FCC endeavours to include tribal 

lands in larger licensing areas in order to enable licensees 

to cross-subsidise service to the higher-cost tribal areas. 

However, economists generally promote tariff rebalancing, 

which aims to eliminate cross-subsidisation and ensure that 

prices reflect the underlying cost of the service. However, 

any increase in rural tariffs is likely to result in the inability 

of rural customers to pay for services. Therefore, if the 

regulator insists on tariff rebalancing as policy, then other 

tools need to be in place to ensure affordability of services 

in rural areas. For example, the regulator can give 

telecommunications operators some flexibility in setting prices 

by mandating an average price for a basket of services. The 

operator can then choose to cross-subsidise services to rural 

areas on a slight scale but without distorting market prices 

too much. Regulators can set price floors on services in the 

basket or place services in separate competitive and less 

competitive baskets. For example, Malawi’s regulatory authority 

has approved a general tariff basket for the provision of 

payphone services in rural areas. Payphone tariffs are not 

subsidised but are allowed to vary from area to area over time 

within the basket of prices. Likewise, Canada’s CRTC has 

determined a range of approved prices for local services, 

including VOIP, so that service providers can automatically 

respond to market forces within the range. 

InfoDev argues that it may be beneficial to permit operators 

to charge higher cost-based tariffs in rural areas for an interim 

three-to-five years, to motivate infrastructure rollout in 

rural areas. It cites the experience of African mobile operators 

that were able to charge higher tariffs in rural areas and 

consequently expanded rapidly into rural areas. 

Spectrum Management 

Spectrum regulation involves the allocation of each portion 

of the frequency spectrum for a specific use. Different 

technologies are designed to utilise different portions of the 

spectrum band, but with multiple operators competing for 

a limited resource, the responsible authority must manage 

the spectrum in order to achieve its national 

telecommunications and ICT policy goals. 

Moreover, technological convergence is posing new challenges 

and opportunities for spectrum management. In a technologyneutral 

regulatory regime, spectrum is awarded without regard 

to the type of technology being used. 

62 Licence-exempt wireless policy: Results of an African Survey, Isabel Neto, 

Michael L. Best and Sharon E. Gillet, 2004. 

63 Wireless technology based on IEEE 802.11 

46 



Australia, the United States and India have taken steps to 

move towards a technology-neutral spectrum regime. In India, 

the regulatory authority published two documents to solicit 

opinions on its proposed technology-neutral spectrum licensing 

regime. 

The United States Congress authorized the FCC to allocate 

spectrum for flexible use when in the public interest and not 

detrimental to investment in the sector, against international 

agreements or resulting in harmful interference. In Australia, 

spectrum licences are technology-neutral, and an “interference 

management framework”, created by the regulatory 

authority, sets rules for spectrum use to avoid interference. 

Another recent development is the allocation of spectrum for 

licence-free uses. The deployment of wireless local area 

networks (W-LANs) in the 2.4GHz band has proven 

commercially successful and evidences that unlicensed 

spectrum can open up opportunities for innovative technologies 

to provide more cost-effective services. A 2004 study 62 found 

that technologies, such as WiFi 63 and Wi-Max, which used 

the unlicensed 2.4 and 5 GHz bands, were being used for 

backhaul network connectivity in rural areas of Africa. 

Seaside Communications and Motorola in Nova Scotia, 

Canada, have partnered with the local government to connect 

every Nova Scotian with broadband Internet connectivity, 

using the unlicensed spectrum ranging from 2.4 to 5.9 GHz 

and 90 MHz, by the end of 2009. Under the contract terms, 

the service providers can not charge rates higher than the 

market rates in urban areas. Therefore, Seaside’s Internet 

Manager, Todd White, explains that the technology’s use of 

unlicensed spectrum gives the service provider flexibility to 

move around interference without the microwave or Wi-Max 

costs and is critical to the sustainability of its business model. 

In the United States, the FCC has also progressively 

implemented a more flexible, market-oriented model of 

spectrum allocation and is prepared to make concessions on 

wide spectrum bands for service providers that carry 

broadband wireless data and VOIP services to tribal lands. 

3.2.4 Universal Service and Access Funds in 


The 18 African Commonwealth countries are at different 

stages in the implementation of universal access policies. 

Ghana, Nigeria, South Africa and Uganda all have operational 

rural or universal access funds established in their respective 

telecommunications legislation. 

Nearly all the telecommunications and ICT strategies discussed 

in Chapter 2 state the provision of universal access as a 

policy objective. Moreover, many countries have enacted 

legislation empowering the regulatory authorities to establish 

universal service and access funds as a mechanism to achieve 

these objectives, if they wish to do so. 

However, merely giving regulatory authorities the option to 

establish a fund may not be sufficient, and it may be necessary 

for legislation to mandate their establishment. Of the 

operational funds, 64 all were mandated by both a government 

policy and an act of legislation. 65 

64 Ghana Investment Fund for Telecommunications (GIFTEL), Universal Service 

and Access Agency of South Africa (USAASA), Nigeria’s Universal Service 

Provision Fund (USPF) and Uganda’s Rural Communications Development 

Fund (RCDF) 

65 If passed, the Zambia ICT Bill will establish the Universal Access Fund under 

the Communications Authority



For example, in 2005, the Government of Ghana established 

the National Telecommunications Policy, which provides for 

the Ghana Investment Fund for Telecommunications (GIFTEL) 

to promote universal access and service. In response, the 

2005 Telecommunications Act established GIFTEL, and the 

2006 Telecommunications Bill, currently under consideration, 

would clarify the Fund’s role and powers. GIFTEL would 

provide basic communications and Internet services in rural 

areas by awarding grants on a non-commercial but competitive 

basis, with direct disbursements of up to US$50,000 awarded 

to applications relating to unserved rural areas or applications 

providing ‘rural packages’ that aim to enhance access through 

public telephony kiosks or telecentres. To complement 

GIFTEL’s activities, the 2005 National Telecommunications 

Policy emphasises the importance of affordable prices to 

users and the operators’ obligation to interconnect. If passed, 

the Telecommunications Bill would support this policy by 

empowering GIFTEL to make recommendations on tariff 

rebalancing and initiation and termination costs to the 

regulatory authority. 

South Africa legislates for universal access by establishing 

the Universal Service and Access Agency (USAASA), defining 

under-serviced areas, in a similar fashion to Australia, and 

enacting a licensing framework for under-serviced area licenses 

(USALs). The 2001 Telecommunications Amendment Act 

provides guidelines for the provision of USALs, which permit 

any telecommunications service, including VOIP services, 

fixed-mobile services and public payphones, in areas where 

teledensity is less than five percent. Out of 27 licence areas, 

only 7 USALs have been issued, providing grants of R5 million 

and three-year, interest-free loans up to R10 million, to each 

under-serviced area licensee. However, under-serviced areas 

licensees are under increasing competitive pressure from 

mobile operators, and the sustainability of the USAL regime 

is uncertain. 

South Africa is just one of many countries that awards 

subsidies for network rollout to rural areas by reverse-auction 

or least-subsidy auctions. These auctions, also used in 

Malaysia and throughout Latin America, allow the regulator 

or universal service agency to identify a maximum subsidy 

it is willing to pay for network rollout to a particular region. 

Telecommunications operators are invited to submit tenders, 

and the operator requiring the least subsidisation is awarded 

the licence. 

Gamos (2003) finds that telecom operators in Botswana, 

Ghana and Uganda tend to underestimate the demand and 

return on investment for network expansion. They consider 

some potentially profitable expansion opportunities to be 

commercially unviable, and regulators may therefore pay 

unnecessarily high subsidies for rollout in these areas, diverting 

USF funds from areas where they are really required. Therefore, 

the least-subsidy auction has the added advantage of allocating 

subsidies based on more realistic assessments of return on 

investment. Some operators may even determine that they 

require no subsidy at all in turn for the license to be the sole 

operator in that region. 

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4 

How Operating Companies Approach the Rural Challenge 

4.1 Operators Drive Rural Connectivity in Partnership 

Rural connectivity is a challenging task, and operators in the 

comparator countries have shown that sustainable solutions 

to universal access are best implemented in partnership. The 

types of partnerships and strategies now in action are diverse 

and range from public-private partnerships in Malaysia to 

engagement of strategic NGO partners in India. Australia’s 

second national operator is calling for increased cooperation 

between telecommunications service providers to share 

facilities, while the Government of India is actively pursuing 

such policies and providing incentives for infrastructuresharing. 

The incumbent operators in both Malaysia and 

Australia have recognised that partnering with the communities 

they serve is essential to the success of their rural sustainability, 

and both have adopted community ownership strategies. 

This section will explore how the telecommunications operators 

in each of the comparator countries have developed various 

kinds of partnerships to ensure the sustainability of rural 

connectivity. 

4.1.1 Public-private partnerships facilitated by USFs 

The administration of Universal Service Funds (USFs) are 

perhaps one of the best mechanisms to facilitate publicprivate 

partnerships (PPPs) to stimulate private sector 

investment in otherwise unprofitable rural areas. Operators 

in the comparator countries have rolled out infrastructure 

and provided services to rural areas with the guarantee of 

USF reimbursement for any potential losses. 

For example, a number of licensed operators in Malaysia, 

namely, Telekom Malaysia, Celcom, Maxis, NasionCom, 

TT dotCom and eB provided access to basic 

telecommunications services in 89 underserved districts with 

certain guarantees from the Malaysia Communications and 

Multimedia Commission’s (MCMC) universal service 

programme. As a result, 39,960 individual lines and 2,414 

payphones were installed in rural areas. 

4.1.2 A multi-stakeholder partnership targeting NGOs 

in India 

BSNL, the Indian operator that serves virtually 100 percent 

of the rural fixed-line market, has tapped into the country’s 

growing NGO sector in order to correct the unsustainable 

aspects of one of its telecommunications pilot projects. In 

2002, the operator partnered with the Department of Posts 

under the Grameen Sanchar Sevak (GSS) Scheme to equip 

1,800 rural postmen with mobile fixed wireless terminals 

(FWTs). The postmen carry the Rs.10,000 FWT in their carrybags 

to provide telecommunications access to 8,000 

unconnected villages as they make their routine rounds. The 

postmen receive 20 percent commission on all outgoing calls, 

while the Department of Posts receive 5 percent. However, 

the pilot project was initially too ambitious and proved to be 

a “logistical nightmare in billing and collection” for BSNL. 66 

Therefore, the operator brought the NGO, Grameen Sanchar 

Society (Grasso), on board to leverage its 7,000 self-employed 

members to carry the FWTs to the most remote of locations 

in the West Bengal state. According to the NGO, 90 percent 

of GSS is in the West Bengal state, and 90 percent of those 

operations are being carried out by Grasso. Grasso has provided 

mobile coverage to 93 percent of the state’s Blocks, 46 

percent of its Gram Panchayats and 14 percent of its villages. 67 

48 



To move the initiative forward and streamline the pilot scheme 

into the whole country’s regular operations, BSNL is targeting 

more NGOs to manage the logistics and some partnerships 

in Orissa have already been established. The scheme as a 

whole highlights the critical role that NGOs and other civil 

society organisations can play in increasing rural connectivity 

within multi-stakeholder partnerships. 

4.1.3 Partnering with competing operators to share 

infrastructure 

At the recent ITU Telecom Africa 2008 Conference in Cairo, 

the ITU stressed that infrastructure-sharing is a particularly 

critical policy in Africa in order to increase investment in ICT 

facilities and lower telecommunications access prices. Sharing 

of telecommunications infrastructure among service providers 

is increasingly common as competitors cooperate to minimise 

duplication and share the initial capital costs of large 

infrastructure investments. The role for infrastructure sharing 

in rural connectivity is particularly important, as the cost of 

rolling out network facilities to remote areas with difficult 

terrain can otherwise be prohibitively high. Moreover, once 

one telecommunications operator rolls out infrastructure, it 

is unlikely that a competing operator will find it cost-effective 

to do the same, and infrastructure-sharing policies are 

necessary to encourage the development of competition. 

For example, Australia’s second national operator Optus is 

limited in the provision of its services because it does not 

have the same national backbone infrastructure as the 

dominant incumbent, Telstra. Telstra built out its infrastructure 

under monopoly market conditions, but in today’s competitive 

market, Optus does not find it cost-effective to build out 

redundant infrastructure of its own. The 1999 Facilities 

Access Code obliges all existing facilities owners to negotiate 

shared access upon request, but Optus has also requested 

a targeted government strategy to encourage greater 

infrastructure-sharing in less viable rural markets, in order 

to reduce costs and encourage competition. 

India’s regulatory body, TRAI, has emphasised the need for 

cooperative efforts among telecom service providers to share 

infrastructure for faster rollout and higher quality of service. 

In 2007, TRAI recommended the sharing of passive 

infrastructure, such as physical sites, towers and power 

supply, as well as active and backhaul infrastructure, to the 

Department of Telecommunications. In an effort to reduce 

regulatory burden, TRAI did not encourage mandated 

infrastructure-sharing, but rather prefers telecommunications 

service providers to negotiate infrastructure-sharing agreements 

amongst themselves. However, the regulatory authority 

recommended that all service providers should be mandated 

to release details of existing and future infrastructure available 

for sharing to all other providers on their websites and that 

if commercial-negotiation of infrastructure-sharing does not 

emerge as the norm, TRAI will prescribe a standard format 

for commercial agreement. With particular relevance to rural 

connectivity, TRAI recommended that mobile service providers 

should be allowed to share their backhaul from Base 

Transreceiver Stations to Base Station Controllers, as the 

comparable backhaul is permitted on fibre-optic infrastructure. 

Moreover, TRAI recommends further financial incentives for 

passive infrastructure sharing in rural and remote areas, 

similar to the universal service programme. 

66 

http://www.newindpress.com/NewsItems.asp?ID=IEH20060101214311& 

Title=Top+Stories&rLink=0 

67 

Ibid

4 



One such agreement resulted when Bharti and Vodafone 

signed a Memorandum of Understanding to facilitate 

infrastructure-sharing between the two operators. Shortly 

thereafter, Vodafone Essar, Bharti Infratel Limited and Idea 

Cellular Limited announced their intention to provide passive 

infrastructure services to all operators in India by forming an 

independent tower company, Indus Towers Limited. 68 To do 

so, the three companies will merge their existing passive 

infrastructure assets. Vodafone Essar and Bharti will own 

approximately 42 percent of the assets each, leaving Idea 

with the remaining 16 percent stake. In addition, the newly 

formed Indus Towers will roll out new passive infrastructure 

in the future. 

Moreover, a recent report from Analysys 69 argues that 

3G network facilities-sharing is inevitable, as the cost savings 

are too great to justify building one’s own dedicated facilities. 

Many of the mobile applications, such as the Internet, that 

have the most promising development benefits for rural 

communities require wider bandwidth and 3G networks. For 

example, Analysis estimates that a mobile telecommunications 

operator aiming to build 13,000 3G network sites would save 

US$1 billion in fixed capital costs by reducing its base station 

equipment and site needs. It could save an additional US$1 

billion over the next 10 years in operational expenses by 

sharing operating site costs. 

4.1.4 Community ownership and education initiatives 

The public-private partnerships discussed above have all 

been successful examples of telecommunications service 

providers combating the lack of rural connectivity in their 

countries of operation. However, it is important to also 

appreciate the role of the people in any partnership, referring 

to the fourth P in a Public Private Peoples Partnership (PPPP), 

as discussed in Chapter 1. A PPPP between the Government 

of Australia and the private fixed-line incumbent Telstra 

includes consultations with Remote Indigenous Communities 

(RICs) to implement its development policies. Likewise, a 

number of public and private stakeholders take part in 

Malaysia’s Smart School initiative, while the incumbent 

operator TMB focuses on community ownership and antivandalism 

strategies. 

The Government of Australia, Telstra, as the designated 

Universal Service Provider, and the local communities are 

working together to develop technologies and services 

particularly suited to serve Remote Indigenous Communities 

(RICs), under the auspices of the 2002 Telecommunications 

Action Plan for Remote Indigenous Communities (TAPRIC). 

For example, strategies of community ownership, such as 

payphone decoration by local indigenous artists, have been 

effective in reducing the incidence of vandalism and the 

quality of service has been improved by employing specialised 

call centre staff who speak indigenous languages and are 

aware of indigenous cultural issues. Telstra is also promoting 

the use of its innovative prepaid home-phone product, 

communic8, to better enable management of 

telecommunications costs within communities. As part of 

the TAPRIC’s Indigenous Community Phone Programme, the 

Government subsidises the cost of connecting to such flexible 

and appropriate telecommunications services. 

68 http://www.vodafone.com/start/media_relations/news/group_press_releases/ 

2007/vodafone__bharti_and.html 

69 “Extensive 3G Network Sharing ‘Inevitable’”, Robert Jaques, 28 Feb 2008, 

available at http://www.infomaticsonline.co.uk/vnunet/news/2210755/extensive- 

3g-network-sharing 

In Malaysia, the fixed-line, incumbent TMB has also 

implemented a number of community ownership strategies 

to expand and improve its service to rural communities. TMB 

is operating Telekom Smart School Sdn Bhd (TSS) 70 , 

established in 1999 to develop and implement the Malaysian 

Smart School pilot project in collaboration with the Malaysian 

Ministry of Education (MOE) and Multimedia Development 

Corporation (MDeC). Since the completion of the pilot project 

in 2002, TSS, a Multi-media Super Corridor (MSC) Status 

Company 71 , has established several key businesses in 

e-Education, such as content development and school 

applications like the School Management System, 

eSkool, and the Learning Management System, e-Learn. 

TMB has also increased its presence in the community by 

establishing its training college and educational charity 

foundation. The Multimedia College is the country’s premier 

provider of continuous and in-service telecommunications 

training, while Yayasan TM is its charitable foundation, which 

primarily aims to improve education of students and 

professionals. Other TMB community ownership initiatives 

include improving overall performance and awareness of 

payphones by facilitating anti-vandalism campaigns in schools. 72 

4.2 How Liberalisation, Competition and Privatisation 

Drive Operators to Connect Rural Areas 

Liberalisation of the telecommunications sector, including 

the establishment of an independent regulator, privatisation 

of the state-owned, fixed-line incumbent (where applicable), 

and introduction of competition with the licensing of mobile 

operators, have contributed largely to the current rapid growth 

in subscribers and geographic coverage, improved quality of 

service, lower prices for consumers and new innovative service 

applications in Commonwealth Africa. For example, in the 

Seychelles, the introduction of competition with the licensing 

of the second mobile operator, Bharti Airtel, broke the 

telecommunications monopoly and led to overnight 

expectations for heightened quality of service and considerably 

reduced prices. 73 Such benefits are gradually penetrating 

the rural areas across Commonwealth Africa, as operators 

are forced to look to new markets to sustain their rapid growth. 

Competition has largely been in the form of new licensed 

mobile operators, with just a few countries licensing a second 

national operator. Therefore, the mobile operators have been 

forced to compete, innovate and invest in new markets and 

often replace the stagnant fixed-line incumbents as the main 

providers of telecommunications services in the process. 

Research by Intelecon emphasises that mobile expansion 

has not made liberalisation of the fixed-line sector irrelevant; 

rather, it has shown the way towards competition in all sectors, 

such as fixed, fixed wireless, satellite, international gateway 

and Internet Protocol (IP) telephony markets. 74 The success 

of mobile competition in driving rural connectivity also 

supports the case for technology-neutral licensing and 

regulation to increase competition in all sectors. 

70 

http://www.tmsmartschool.com.my/ 

71 

See Section 2.3.3 in Chapter Two for more on the Multi-media Super Corridor 

72 

Telekom Malaysia Annual Report 2006 

73 

http://www.nation.sc/index.php?art=10948 

74 

Mobile Operators: their Contribution to Universal Service and Public Access, 

Sonja Oestmann, Intelecon Research & Consultancy Ltd. January 2003 

49 

4

4 

4.2.1 Case study: Effect of liberalisation in Kenya 

The effect of competition on telecommunications operators 

and their drive for rural connectivity is well illustrated by 

Kenya’s continued liberalisation efforts and phenomenal 

growth in the mobile telecommunications market. There are 

now three mobile telecommunications service providers, 

namely Safaricom, Celtel Kenya, and Telkom Kenya. Safaricom 

dominates the market with 7.96 million subscribers, 

representing 71 percent market share, while Telkom Kenya 

just launched mobile operations in the last year. 

Liberalisation of the market began with the enactment of the 

1998 Kenya Communications Act, which directed the 

regulatory authority, the Communications Commission of 

Kenya, to license the newly privatized Safaricom Limited and 

a new market entrant, now known as Celtel Kenya. 

Liberalisation resulted in phenomenal growth in subscribers 

and geographic coverage. Over the last six years, the combined 

subscriber base of Safaricom and Celtel Kenya grew to 

20 times the size of the fixed-line network. The fixed-line 

incumbent Telkom Kenya was guaranteed market exclusivity 

between 1999 and 2004 with the obligation to roll out 

225,000 lines in that time period. However, Telkom only 

connected approximately 30,000 users in the first three years 

and fell well short of the target. In contrast, the two mobile 

operators covered most of the areas required in their licence 

obligations, but also entered new markets on their own 

initiative as the market demanded. Figure 4.2.1 below 

contrasts the phenomenal growth in mobile subscribership 

to that of the stagnant fixed-line incumbent. 

Figure 4.2.1: Mobile vs Fixed Subscriber Growth 

Subscribers 

Source: www.cck.go.ke 

The two mobile operators have already introduced innovative 

services and business models that target the untapped rural 

market, as the urban market is approaching saturation, in 

order to sustain their extraordinary growth rates and compete 

with one another. Celtel Kenya, formerly known as KenCell, 

launched its Yes! postpaid service shortly after its licensing 

in 2000 and added a Yes! prepaid card service three months 

later. The competitive effect on user costs was drastic, as 

the account activation fee fell by two-thirds within the first 

year. In 2002, the operator partnered with Swift Global to 

launch the mobile Internet service, Access350, and now any 

Celtel Kenya customer with a Wireless Application Protocol 

(WAP)-enabled phone can access the Internet. 

75 “Telecom Reform and Poverty Alleviation in Kenya”, Sean Kane, available at 

http://link.wits.ac.za/journal/j0301-kane-fin.pdf 

50 

7,000,000 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

0 

2001/2002 2002/2003 2003/2004 2004/2005 

Total Fixed Line Subscribers 

LLOs 

2005/2006 

Period 

Total Mobile Subscribers 

Total Fixed Subscribers 



The service is targeted at rural areas where its competitive 

advantage overcomes severe infrastructure challenges and 

the high cost of long distance calls to connect to the Internet, 

due to the lack of local POPs. The data transmission speed 

is often too slow for urban users, but is effective in the less 

dense rural areas and popular with small-scale rural 

entrepreneurs. 75 

In June 2008, shortly after the sale of a large stake of its 

shares to the Kenyan public, Safaricom reported record profits 

and announced plans to boost coverage in rural areas in order 

to sustain its momentum in subscriber growth in the face of 

mounting competition. 

Safaricom has already tapped into the rural market with 

considerable success by attracting rural customers, 80 percent 

of which are excluded from the traditional banking sector, 

with its now internationally recognized money-transfer scheme, 

M-PESA. M-PESA allows subscribers to send cash to other 

phone users by short message service (SMS) without any 

need for a new handset or subscriber identity module (SIM) 

card and is, unsurprisingly, a highly demanded service among 

urban Kenyans supporting relatives in rural areas. 

4.2.2 Technology-neutral licensing regime sparks 

competition and drives rural connectivity in 

Botswana 

The liberalisation of the telecommunications sector in 

Botswana, following the adoption of the technology-neutral 

licensing regime, has enabled the incumbent operator BTC 

to compete with the country’s two national mobile operators 

to penetrate difficult terrain and increase rural connectivity 

in a way that was impossible before. BTC already operated 

an extensive microwave network linking most of the 

telecommunications exchanges in the country, but it is now 

rolling out a VSAT network to overcome the country’s vast 

expanses and diverse terrain to further increase its reach into 

remote areas. BTC has also partnered with the Government 

of Botswana to finance and construct a fixed wireless local 

loop to enable Atio Corporation to provide virtual telephony 

in rural areas, including the Barolong Region and Northern 

Tuli Block. 

Not to be left behind, competing national mobile operator 

Orange Botswana has partnered with Ericsson to implement 

the Ericsson Expander solution. The Expander, with cell 

ranges four to five times greater than traditional transmitters, 

allows Orange to reach rural users previously too remote for 

cost-efficient coverage. The Expander also reduces the number 

of required base stations, thus cutting cost without reducing 

the quality of service. Because Botswana is predominantly 

flat and expansive, the terrain is particularly suited for the 

Expander’s long-range radio-wave propagation. 76 

In contrast, the weave of conflicting interests in South Africa’s 

telecommunications sector has prevented it from reaping the 

same benefits of liberalisation as in Botswana. The Independent 

Communications Authority of South Africa (ICASA) has made 

several attempts at further liberalisation of the sector, but 

because the Government of South Africa still owns the 

dominant fixed-line incumbent, Telkom SA, which in turn 

retains a 50 percent stake in the dominant mobile operator, 

Vodacom SA, it is difficult for policy to foster a competitive 

and fair environment for telecommunications service 

providers. 77 

76 See http://www.cellular-news.com/story/17269.php May 2006 

77 “Telecoms deregulation has still to bear fruit”, Mark Garden, Business Day, 

May 2008

4 



Moreover, Telkom SA owns the vast majority of infrastructure 

in the country, so all value-added network service providers 

or ISPs must negotiate access on Telkom’s terms until the 

second national operator Neotel is fully operational. 

As a result of the market structure, the mobile operators have 

been a limited source of competitive pressure on Telkom. 

They compete with each other on coverage and value-added 

services, such as voicemail, e-mail, SMS, etc. and have 

effectively forced Telkom to provide similar value-added 

services to remain competitive. However, according to some, 

neither Telkom nor the mobile operators feel pressure to lower 

prices. 78 

4.2.3 Competition from VOIP drives telecom operators 

to innovate 

Fixed-line and mobile operators alike are now facing 

competition from the rapidly growing VOIP market. According 

to a Balancing Act report, nearly all the sampled African 

telecommunications operators were charging over one dollar 

per minute to the most popular international destinations in 

2005. 79 But now, when facing pressure from low VOIP prices 

on the grey market, just over half the operators are charging 

a quarter for the same calls. 

The impending dominance of VOIP in the future has prompted 

adoption of the technology throughout Africa by a large 

number of both fixed-line and mobile operators for national 

calling. The benefits of increased competition from VOIP 

service providers could be realised more fully if VOIP were 

formally legalised, either by a dedicated act of legislation, 

or by the adoption of a technology-neutral regulatory regime. 

One of the authors of the Balancing Act report, Russell 

Southwood, argues that the implications for VOIP legalisation 

would be far-reaching, as “grey market operators have all the 

skills you might look for in an African country, and it is only 

the failure to legalise VOIP that keeps them ‘out in the cold.’ 

Where countries (like Kenya) have legalised VOIP, it has 

allowed these local entrepreneurs to raise money and start 

new companies.” 

4.2.4 Competition drives operators to expand into regional 

markets 

Kenya’s East African neighbours are likewise witnessing 

spectacular growth in their mobile markets. There is heated 

competition amongst the four mobile operators in Tanzania, 

and Uganda’s three mobile operators register an even faster 

growth rate. Subscribers frequently migrate between providers 

seeking better quality, lower prices and widest country coverage 

and international roaming. 

Celtel, which competes in all three of these cutthroat markets, 

leveraged its international status and launched the "One 

Network", enabling its subscribers in Kenya, Uganda and 

Tanzania to cross borders and make calls at local rates, 

receive calls for free, and buy recharge credit from vendors 

in any country. In 2007, the network was extended to Gabon, 

the Democratic Republic of Congo, Congo, Burkina Faso, 

Chad, Malawi, Niger, Nigeria and Sudan, and the operator 

announced plans to expand its One Network across all its 22 

country operations by end of June 2008. Figure 4.2.4a 

illustrates how Celtel’s international presence unites numerous 

national networks into one enormous and powerful crossborder 

market. 80 

78 

“Telecoms deregulation has still to bear fruit”, Mark Garden, Business Day, 

May 2008 

79 

“VOIP Operators Turn up the Heat on African Telcos”, Feb 2007, available at 

http://www.tectonic.co.za/wordpress/?p=1386 

The only other telecommunications operator that can potentially 

rival Celtel’s international position thus far is MTN, which 

has presence in two separate blocks of common-border 

countries. MTN’s evolving empire is illustrated in Figure 

4.2.4b. One can foresee that both Celtel and MTN will soon 

have completely self-sufficient and autonomous regional 

networks dominating the better part of the continent. 81 

Not to be left in the dust, Vodacom has used its successful 

South African operation as a springboard to expand into 

Tanzania (4.2 million subscribers), the DRC (3.3 million 

subscribers), Mozambique (1.3 million subscribers) and 

Lesotho (395,000 subscribers). Whereas its growth rate in 

the maturing South African market is 7.9 percent, the growth 

rates in its other African operations range from 25 percent 

to 41.6 percent. 82 

Figure 4.2.4a: Celtel's Footprint in Africa 

Source: SCANBI-INVEST, “Options for Terrestrial Connectivity in SSA” 

80 

Note that Celtel also has operations in Madagascar, not coloured purple because, 

as an island, it does not have the same relevance to the One Network. 

81 

SCANBI-INVEST, “Options for Terrestrial Connectivity in SSA” 

82 Subscriber and growth rate estimates from correspondence with Vodacom. 

4 

51

4 

Figure 4.2.4b 

Source: SCANBI-INVEST, “Options for Terrestrial Connectivity in SSA” 

4.3 Licence Conditions and Rollout Obligations as Drivers 

of Rural Connectivity 

Licence conditions and rollout obligations impose targets for 

the rollout of telecommunications services to either residential 

homes or community access points with specified target 

dates. The effectiveness of licence conditions is varied, with 

some operators, such as Vodacom South Africa exceeding its 

target in advance of its deadline by perfecting a business 

model that has made rural connectivity sustainable and 

profitable. In contrast, Telkom South Africa failed to meet 

its rollout targets, at least partly due to the uncoordinated 

and inflexible nature of its universal service obligation. 

4.3.1 Meeting the licence obligations 

Vodacom’s licence conditions were established as part of the 

licensing process in 1993, a year before South Africa’s first 

democratic election. So important was universal access at 

this crucial stage of the country’s history, that the final licence 

conditions were negotiated at Codesa, where 26 political 

parties were negotiating a new constitution for a democratic 

South Africa. The provision of 22,000 affordable public 

mobile phones to under-serviced areas within five years was 

a key condition to the success of the negotiations. Vodacom 

was permitted to meet the obligation in any way it devised, 

but failure to meet the target would have resulted in licensing 

penalties. In response, Vodacom launched its Community 

Services Programme with a budget of approximately 

US$666,000 to determine how Vodacom could best meet 

the needs of the communities it would serve. This period of 

community buy-in “was critical to ensuring the new businesses 

would be accepted within South Africa’s close-knit 

communities.” 83 

83 “What Works: Vodacom’s Community Services Phone Shops”; World Resources 

Institute, August 2003, Jennifer Reck and Brad Wood. 

52 



As a result, Vodacom installed public mobile phones operated 

as Community Services Phone Shops, owned and managed 

by local entrepreneurs. Each shop sells the services of five 

mobile phones, housed inside a shipping container supplied 

by Vodacom, at a capped rate one-third of a mobile call’s 

normal price. Vodacom originally subsidised these costs until 

the cap was increased and the phone shops became more 

self-sustaining. The entrepreneurs must invest the initial 

R 26,000 to buy and transport the container and its equipment 

to the site, but receive one-third of the phone shop profits 

thereafter. 

The required 22,000 public mobile phones were in operation 

three months before the target deadline, and it should be 

noted that Vodacom was the only South African 

telecommunications operator to meet its licence conditions. 

Now, Vodacom’s 3G licence obligations require the operator 

to provide 5,000 schools with connectivity over a five-year 

period. The operator has expanded its commitment and is 

donating three computers and a printer to the first 

625 schools, many of which are in rural areas with no other 

Internet point of access. 

Vodacom Tanzania follows the same rural telephone kiosk 

model to meet its licence obligations. The mobile services 

are penetrating villages in Bagamoyo District where there is 

no access to electricity, as well as other remote rural areas. 

The kiosks are private initiatives run by local residents located 

at the local bus stop, post office, market or the owner’s 

primary place of business, such as a restaurant or beauty 

parlour. The community as a whole can purchase or hire the 

Vodacom containers, as long as it is located within reach of 

a Vodacom tower, and Vodacom will monitor the business to 

ensure that only Vodacom services are offered. 

Next door in Uganda, MTN Uganda was required to roll out 

services in every county in the country, in exchange for its 

second national operator licence. The operator met its rollout 

obligations, as well as rolled out payphones across the country 

through its subsidiary MTN Publicom and implemented the 

Village Phone Project in 2003. The Village Phone Project 

incorporates a number of features, such as pre-paid service 

and calling-party-pays service, which help the sustainability 

of the business model. 

4.3.2 Failing to meet the licence obligations 

In 1997, Telkom South Africa was partially privatised and 

granted a 5-year exclusivity period with stringent licence 

conditions including the rollout of 2.81 million fixed lines, 

two-thirds of which were to be to under-serviced areas, 

reaching 3204 villages, within the 5 years. Telkom SA was 

also obliged to install 120,000 new payphones. It is now 

generally accepted that such ambitious targets were infeasible 

for Telkom to sustain. In 2001, Telkom rolled out 2.1 million 

residential fixed lines but was only able to sustain 

703,000 in operation. Likewise, in 2002, Telkom rolled out 

2.67 million lines but only 667,000 were operational. 

The failure of Telkom to meet and sustain its fixed-line licence 

obligations can be attributed to a number of factors. 

First, set targets were unreasonably high, representing a 

market penetration increase to between 73 and 88 percent 

from 65 percent in just five years. 84 This increase was made 

all the more challenging with the introduction of two new 

competing mobile operators and the regulatory focus on tariff 

rebalancing, which prohibited Telkom from cross-subsidising 

its rural services. 

84 “Universal Service through Rollout Targets and Licence Conditions: Lessons 

from Telecommunications in South Africa, James Hodge

4 



Unfortunately, the massive disconnection of Telkom lines in 

2001 did not halt the rollout of unsustainable fixed lines in 

2002, because the rollout targets were mandated in its 

licence. Moreover, the success of the mobile operators 

illustrated an alternative and sustainable way to connect 

under-serviced areas, but Telkom’s fixed-line licence prohibited 

the use of cellular technologies. Therefore, the failure of 

Telkom’s licence obligations to meet the country’s 

socioeconomic and development objectives can at least 

emphasise to regulators the importance of accurate and 

flexible rollout targets when requiring operators to fulfil 

licence conditions. 

The licence conditions in South Africa’s second national 

operator Neotel reflect a transition away from mass rollout 

of economically unviable residential fixed lines, and instead 

target community access points, educational institutions and 

hospitals, all with clear benefits for meeting development 

policy objectives. Neotel is to provide high speed Internet 

service to 5,000 schools, Further Education Training Institutes 

(FETs) and rural medical clinics throughout the country. 

In contrast to Telkom’s previous licence obligations, Neotel’s 

are technology-neutral, allowing the operator to choose the 

most cost-effective technology to deliver services. 

4.4 Impact of Interconnection and Tariff Policies on 

Penetration 

Section 3.2.3 discusses why the regulation of interconnection 

policies and operators’ tariffs is critical to the expansion of 

rural connectivity. The common trend in interconnection 

practices amongst the comparator and African Commonwealth 

countries is that interconnection is a matter of commercial 

negotiation between the two interconnecting operators. 

Operators’ tariff policies vary greatly from one country to the 

next, depending on the degree of competition, the rate at 

which the government taxes air time, and the level of access 

to and liberalisation of the international gateway, among other 

factors. 

4.4.1 Operators’ interconnection policies 

In most countries, the regulator maintains oversight of 

interconnection agreements, but it is the operators themselves 

who negotiate the interconnection. In most cases, this method 

of commercial negotiation ensures that the interconnection 

fees are competitively priced and lowers the end cost to users 

in rural areas. However, regulatory guidelines allowing 

asymmetric interconnection rates for rural areas, as in Uganda, 

can encourage operators to expand into these high-cost areas 

and take advantage of the disproportionately greater number 

of incoming calls than outgoing calls. 

The importance of regulation of interconnection agreements 

is evident in the current South African market. Telkom, 

Vodacom and MTN agreed on interconnection terms in 2001 

and have since negotiated with the second national operator 

Neotel and the new mobile entrant Cell C. These negotiations 

took place under the Ministry guidelines, which state that 

only operators who are declared ‘major operators’ must 

interconnect based on the long-run incremental cost (LRIC). 

Telkom was previously the only defined ‘major operator’ but 

now, because Vodacom and MTN have gained significant 

market share, ICASA is considering declaring Vodacom and 

MTN as major operators as well. 

If declared major operators, the two mobile operators will be 

forced to reduce their interconnection rates to reflect the 

LRIC of offering the services. Such a move would result in 

the loss of an estimated 5 percent of annual revenue for each 

of the operators, but the cost-savings resulting from the 

reduction in interconnection rates can be passed on to the 

mobile user with a reduction in tariffs. 85 

4.4.2 Operators’ tariff policies 

The trend in fixed-line telecommunications prices in 

Commonwealth Africa is unclear from one country to the 

next, but the trend in mobile prices is one of falling connection 

and airtime charges across the continent. 

With the liberalisation and licensing of additional mobile 

operators in many of the Commonwealth African countries, 

mobile operators have been forced to compete with one 

another and offer lower tariffs and/or specialised or more 

flexible tariff packages. In some cases, the mobile operators 

have been able to push down the prices charged by their 

fixed-line counterparts, but incomplete liberalisation of 

international gateways and lack of fixed-line infrastructure 

in rural areas have proven formidable barriers to the reduction 

of fixed-line prices. That said, the prices charged by mobile 

operators are still out of reach for the majority of potential 

rural users, and therefore business models based on whole 

communities sharing a limited number of mobile phones 

have been pursued and proven successful. 

The United Nations Conference on Trade and Development 

(UNCTAD) Information Economy Report (2007-2008) studies 

mobile telephony in four African countries, namely Nigeria, 

Kenya, South Africa and Uganda, and finds that mobile tariffs 

have fallen significantly over the last three years in each of 

the countries. It reports that Nigeria’s international telephone 

tariffs are currently the lowest in Africa, and its local, national 

and international tariffs have all experienced significant 

decline as a result of aggressive liberalisation. 

The Nigerian Communications Commission licensed two new 

mobile operators in 2001, MTN and Celtel, to compete with 

the fixed-line incumbent’s mobile subsidiary Mtel. 

Consequently, mobile tariffs fell dramatically and then 

pressured fixed-line tariffs down by nearly 90 percent within 

three years. In 2002, Glo Mobile entered the mobile market 

and initiated a ‘per second billing’ plan that pushed mobile 

tariffs down further. 

Figures 4.4.2a and 4.4.2b below illustrate the fall in fixed 

and mobile telephone connection charges and the fall in 

mobile connection and airtime charges respectively. 

Initially, prepaid service cost US$ 0.38 per minute, 

but by 2004 mobile calls cost between US$ 0.19 and 

US$ 0.26 per minute. 

85 “MTN, Vodacom to Lose out on R2.33bn if ICASA has its way”, Mochiko, 

Business Report, 5 February 2007 Available at: 

http://mybroadband.co.za/nephp/?m=show&id=5555 

4 

53

4 

Figure 4.4.2a: Fixed and mobile telephone connection 

charges in Nigeria 

Connections charges (Nigerian Naira) 

Source: UNCTAD Information Economy Report 2007-2008 

Figure 4.4.2b: Connection and airtime charges for mobile 

telephones in Nigeria 

Airtime (Nigerian Naira) 

36 0 

2001 2002 2003 2004 

Year 

Source: UNCTAD Information Economy Report 2007-2008 

54 

100 000 

80 000 

60 000 

40 000 

20 000 

50 

48 

46 

44 

42 

40 

38 

0 

Fixed 

Mobile 

1999 2000 2001 2002 2003 2004 

Year 

Airtime per minute 

Connection 

charge 

16 000 

14 000 

12 000 

10 000 

8 000 

6 000 

4 000 

2 000 

Connection charge (Nigerian Naira) 



Liberalisation and the licensing of new mobile operators had 

similar effects on mobile tariffs in Kenya. Mobile connection 

tariffs fell from US$142 to US$33 between 1999 and 2005, 

following the entrance of Safaricom Limited and Celtel Kenya 

into the market. During that same time period, mobile airtime 

tariffs fell from US$ 0.40 per minute to between US$ 0.20 

and US$ 0.30 per minute. However, the slash in mobile 

tariffs did not have the same effect on fixed-line tariffs as 

in Nigeria, which has licensed a second national operator 

and partially privatised its incumbent. The cost of long 

distance and international calls declined by a modest 

25 to 40 percent but the cost of local calls actually rose by 

20 percent. 

In addition to liberalisation and competition forcing operators 

to reduce telecommunications tariffs, government taxation 

policy also impacts the rates operators must charge in order 

to cover their costs. A recent study on taxation of mobile 

services by Deloitte 86 found that Uganda has the highest 

excise tax rate (12 percent) on mobile services in all of Africa 

and that mobile users in East Africa pay nearly twice as much 

tax on mobile services as the rest of the world. 

That said, prices have still been falling in East Africa; and 

Kenya, Tanzania and Uganda have reduced tariffs despite 

increasing operating costs and the continued lack of terrestrial 

international connectivity. At the start of this year, the 

Government of Namibia announced a 15 percent value-added 

tax on all pre-paid airtime. Telecom Namibia, which has been 

tariff rebalancing since 2005, in turn, announced that it 

would absorb the tax itself and would not raise tariffs to 

consumers. 

It is important to note that while the declining trend in tariffs, 

especially in the mobile telecommunications market, has 

encouraging implications for the affordability of 

telecommunications services in low-income rural areas, these 

price benefits are largely restricted to urban areas, unless 

complementary policies encourage the rollout of infrastructure 

and services to rural areas. 

86 “Taxation and the Growth of Mobile Phones in East Africa”, Deloitte, 2006 

2007



Technology and the Rural Divide 

For decades, telecommunications as a discipline was focused 

on the transmission of voice signals and was largely dependent 

on fixed-line copper infrastructure. Connecting rural areas in 

many parts of the developing world meant no more than a 

connection to the national telecommunications network, the 

definition of area codes and the provision of voice telephony 

services. However, with the advent of digital communications 

and information technology enabling all forms of 

communication to be transmitted as data, the nature of the 

sector is rapidly changing. The falling cost and high capability 

of fibre-optic infrastructure and the cost-effectiveness 

of emerging wireless technologies have resulted in 

a menagerie of alternatives to the traditional copper network. 

To determine which technologies are best for connecting a 

particular rural community, it is useful to break the process 

into two parts, as depicted in Figure 5.1. The first part is a 

link from at least one point in the rural area to the national 

backbone (and in turn the regional backbone and international 

gateway), and the second part is connecting the different 

houses, buildings or individuals within the village to each 

other and to neighbouring villages. A combination of 

technologies will most likely be best to create the different 

types of connections shown in the figure. 

Figure 5.1 

Part 2 

Part 1 

Lilongwe 

The fundamental decision to roll out infrastructure (and which 

technologies to use) to connect a rural area to the backbone 

(Part 1) is based on a number of factors, including: 

j The national telecommunication infrastructure 

j The terrain and ease of access (including presence 

of other infrastructure such as roads) 

j The total population of all villages/people dependent 

on the link 

j The services to be provided (which determine the 

quality of service and capacity requirements) 

j The level of investment afforded (based on usage 

models and the affordability of the rural area) 

In turn, the types of technology used to connect different 

houses, buildings and individuals within the village and 

interconnect the first village to neighbouring villages 

(part 2) will depend on those factors above, as well as several 

additional factors, such as the following: 

j The density of the villages 

j The distance to nearby villages 

j The existing links within the village 

Rural communities often fall short when assessed against 

many of these criteria, and the digital divide can largely be 

attributed to many incumbent operators’ belief that rural 

areas are unprofitable. However, the advent of a number of 

innovative technologies, such as wireless and fixed wireless, 

are easier, quicker and cheaper to deploy than wired alternatives 

means many rural communities now represent vast untapped 

markets for telecommunications and ICT operating companies. 

The range of criteria used to assess the suitability of a 

particular technology highlights the fact that there is no onesize-fits-all 

solution. This chapter details some of the various 

technologies that have induced new business models that 

make rural connectivity a profitable venture. The second 

section details one of the fundamental challenges facing 

stakeholders who intend on improving rural connectivity, 

namely the lack of electricity in rural areas. And finally, the 

last section emphasises the need to develop renewable energy 

alternatives to power ICTs and ensure that ICTs bring the 

expected developmental gains without harming the 

environment. 

5.1 Wireless Technologies (Mobile / Cellular) 

The most vivid example of wireless technologies’ impact upon 

rural connectivity is the huge growth in mobile telephony in 

Africa. While it is important to note that much of the growth 

was centred in the densely populated urban areas, operators 

have increasingly begun to focus on rural areas as the urban 

markets approach saturation. In part, the increasing rural 

focus has been driven by policy and regulatory regimes, which 

instate universal service obligations on telecommunications 

service providers. However, mobile operators have also 

discarded previous assumptions about the economic viability 

of rural areas and revisited how different technologies affect 

their business models. 

Although there are two traditional competing mobile 

technologies (CDMA and GSM), GSM 900 is far more popular 

in Africa. While mobile technologies, and wireless technologies 

in general, cannot transmit at the same speed and capacity 

as copper or fibre-optic infrastructure, enhancements on the 

GSM network, such as General Packet Radio Service (GPRS) 

and Enhanced Data rates for GSM Evolution (EDGE) are 

being rolled out across Africa and are making inroads in the 

provision of higher capacity transmission of voice and data. 

This trend is set to continue with the advent of 3G technologies, 

such as Wideband Code Division Multiple Access (W-CDMA) 

and High Speed Packet Access (HSPA). 

5 

55

5 

Figure 5.1a: Cellular Evolution 

GSM GPRS EDGE 

2G 2.5G 

W-CDMA 

HSPA 

According to the GSM Association, the evolution of GSM 

networks will present Africa with the opportunity to improve 

its poor Internet and broadband penetration, in addition to 

improving voice-based services. The potential of 3G services 

is appreciated by African operators, and many are preparing 

to roll out such services, albeit it in urban areas initially. 

Table 5.1 lists all the active and forthcoming HSPA networks 

in Commonwealth Africa. 

Table 5.1: HSPA Networks in Commonwealth Africa 

Source: GSM Association http://hspa.gsmworld.com/networks 

56 

CountryOperator Speed (Mbps) / 

Status 

Kenya Safaricom Kenya 7.2 

Kenya Safaricom Nairobi In deployment 

Mauritius Emtel (Millicom Mauritius) 1.8 

Mauritius CellPlus Planned 

Mozambique Mcel In deployment 

Namibia Cell One (Powercom) 1.8 

Namibia MTC 1.8 

Nigeria MTN Nigeria 3.6 

Nigeria Globacom 3.6 

Nigeria ZainIn trial 

South Africa MTN South Africa 3.6 

South Africa Vodacom South Africa 3.6 

Tanzania Vodacom Tanzania 1.8 

Uganda Uganda Telecom 1.8 

It may take some time to see if 3G will have a huge impact 

on voice and broadband Internet connectivity in rural areas. 

However, evidence from South Africa suggests they have the 

potential to increase both voice and broadband Internet usage 

if the services can be provided to rural communities at the 

right price. By 2006, the combined broadband subscriber 

base of MTN and Vodacom was greater than that of Telkom 

South Africa, despite having only provided broadband for two 

years. The two mobile operators were able to build market 

share because of the speed at which they can install 

infrastructure to supply 3G services in comparison to 

Telkom South Africa, which is said to have a waiting list of 

50,000 for its fixed-line dependent ADSL connection. 

Next generation networks (NGNs) are just now being introduced 

in urban areas, with uncertain prospects of expansion to rural 

areas. Vodacom upgraded its 3G service in South Africa to 

High-Speed Downlink Packet Access (HSDPA) 3.5G service 

at the start of 2006 and to High-Speed Uplink Packet Access 

(HSUPA) in May 2008. 

3G 



It also announced the intention to introduce the same services 

in Dar es Salaam but without clear intention to extend services 

throughout the rest of Tanzania. The service will most likely 

be used by roaming South African visitors, not for the provision 

of public services to low-income rural Tanzanians. Likewise, 

MTN is migrating its 3G service in South Africa towards 

HSDPA services targeted at niche customers in the post-paid 

market. 

Market Share 

Figure 5.1b: South Africa Broadband and Market Share 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

46% 

27% 

21% 

6% 

Telkom Vodacom MTN iBurst Sentech 

Operator 

Source: Link Centre -South African Telecommunications 

Sector Performance Review 2006 

Although the next generation of mobile networks offers great 

potential for connecting rural communities to voice and broadband 

Internet, the main reason mobile telephony has been so successful 

is its ability to give rural communities access to voice services. 

Key reasons mobile telephony has proved so important for rural 

users and mobile operators are detailed below. 

Primary means of communication: Due to the poor penetration 

of fixed-line telephony, mobile telephony often proves to be 

peoples’ only access to voice. As such, mobile operators have 

faced little competition, and users have viewed mobile telephony 

as the primary means of communication. 

Low-cost pre-paid vouchers: Mobile operators have increasingly 

given users the option of buying low denomination vouchers for 

airtime. This helps to ensure that even those on extremely low 

incomes are able to buy airtime and speak. In Africa, airtime 

has become a fast-moving consumer good (FMCG) product sold 

alongside other essentials like bread and milk. 

Economies of scale: The rapid proliferation of mobile telephony 

has helped create economies of scale that have reduced the 

cost of infrastructure, such as base stations in comparison to 

alternative technologies. Most importantly for operators, each 

additional customer reduces the cost of the infrastructure per 

user, which acts as an incentive for operators to continually 

attract as many customers as possible within the range 

of a base station. 

Pre-paid services: The majority of users in African countries 

use pre-paid services, presenting a major advantage to operators 

who have no need to run credit checks, generate and send bills 

to customers or expose themselves to bad debt. These services 

result in a saving on operating costs which can be passed on 

to the consumers who do not have the added pressure of paying 

a monthly subscription. 

Multi-spatial families: People in rural areas may make a relatively 

small amount of voice calls, but many do receive a significant 

number of calls from their relatives in urban areas. In many 

cases, attractive interconnection rates from fixed to mobile also 

provide an incentive for mobile operators to roll out infrastructure 

in rural areas. 

1%



Range extension: Operators who use GSM have the option to 

implement a range extension, which can see the range of a 

GSM 900 base station increase from 35km to as much as 

120km. This method can reduce the cell sector coverage and 

the increase in users and demand for bandwidth strains the cell 

capacity, but it has proven to be a necessary and worthwhile 

trade-off in some areas, especially where bandwidth needs are 

low. 

5.2 Fixed-Wireless Networks 

5.2.1 Wireless local loops (WLL) 

The use of both fixed and wireless communications together 

has helped to extend the reach of fixed-line networks to 

communities that face significant challenges in terms of 

location. For some time, the term “fixed wireless infrastructure” 

was associated with Wireless Local Loop (WLL), which is a 

radio system used by fixed-line operators to provide voice 

and data services to subscribers in a cost-efficient manner. 

Essentially, the WLL helped negate the problems posed by 

the use of wire-based local loops, which could not extend for 

more than 5km from the core networks without a significant 

loss of signal. In most cases, WLL local loops can extend up 

to 30km from the main network, and therefore reduce the 

investment required to provide wire based infrastructure in 

rural areas. In addition, WLL also reduces the risk associated 

with installing wire based solutions because they can be 

moved relatively easily and endowed with enhanced capacity 

if and when required. Of course, for operators this reduced 

risk and inherent flexibility present significant advantages 

when connecting rural communities. 

Despite the advantages offered by WLL and the relatively 

significant impact they have had in some developing countries 

like India, they have not been extensively used in many 

African countries, as they are still dependent on fixed-line 

networks existing within 35km-40km of the communities 

they are to serve. As the fixed-line networks are often not 

present, the wireless solutions offered by mobile telephony 

offer greater economies of scale (partly a result of their lack 

of deployment) and full mobility-a true advantage for users. 

5.2.2 Wi-Max 

Wi-Max is a fixed wireless technology that has emerged in the 

last few years and has huge potential for connecting rural 

communities. Like the WLL, Wi-Max provides an extension to 

fixed-line networks and has the potential to provide rural 

communities with voice and broadband services. 

For many observers, its main advantage lies in the fact that it 

is cheaper, easier and quicker to deploy than fixed-line networks. 

It is useful for wireless backhaul, as well as point-to-multi-point 

applications due to its long-range functionality and good quality 

of service. In addition, the cost of equipment is cheaper in 

relation to cellular infrastructure and costs are expected to drop 

further as the use of the technology increases. Figure 5.2.2 

illustrates how Wi-Max acts as an extension to existing core 

networks. 

Figure 5.2.2: Diagram of Wi-Max Extension 

Source: Wi-Max Forum 

Arguably the biggest advantage of Wi-Max, in respect to rural 

connectivity, is the fact that it does not require a direct line 

of sight (LOS) between the source and endpoint. With an 

LOS Wi-Max can provide connectivity within a radius of up 

to 50 km, yet with non line of sight (NLOS) the Wi-Max 

antenna can still provide connectivity to users within a 15km 

radius. 87 According to representatives of the Wi-Max Forum, 

the NLOS/LOS coverage advantage, means service providers 

can easily make infrastructure plans with 95 percent certainty, 

and remove some of the uncertainty involved in connecting 

rural communities. That said, the potential of Wi-Max has 

already been recognised by stakeholders across the continent. 

Many countries, such as South Africa, Kenya, Nigeria and 

the DRC have tested, and in many case rolled out, Wi-Max 

on a commercial basis. Vodacom launched Wi-Max as an 

access and transport technology in the DRC in 2006. 

Yet despite its obvious benefits, it is important to note that 

the use of Wi-Max has largely been limited to urban areas 

and the business case for Wi-Max in rural areas is yet to be 

fully explored. It is hoped that the economies of scale that 

will emerge when Wi-Max is more widely used will lead to 

further falls in the cost of equipment and lead to the emergence 

of a clear business case. 

5.3 Wireless Mesh 

The increasing use of wireless mesh technology across Africa 

is indicative of its applicability to rural connectivity. 

Interestingly, the potential of wireless mesh networks has 

often been realized by individuals or groups within particular 

communities who have made ad hoc adaptations to Wi-Fi 

routers in order to provide connectivity. Indeed, one can find 

numerous examples of communities gaining connectivity 

from normal Wi-fi routers that have been linked in a chain 

in order to extend the Wi-Fi signal beyond the typical 

few hundred metres to a number of kilometres. The main 

requirement for these mesh networks is that each router 

(whether if be a Wi-Max or Wi-Fi router) in the chain of routers 

is able to see another in order to bring it into the system. It 

was discovered that some innovative rural communities in 

South Africa were using mirrors to deflect signals when line 

of sight was not possible. Figure 5.3 depicts how a wireless 

mesh network connects the coverage area to the wired network 

(backbone) via multiple pathways. 

Figure 5.3: A Multi-Channel Wireless Mesh Network 

9 

5 

1 

1 

4 

3 

3 

Wired Network 

Coverage Arm for 

a Traffic Aggregation Device 

4 

2 

3 

2 

Multi-Channel 

Wireless Mesh 

Network 

Virtual Link 

operating on 

Channel 2 

Source: State University of New York, http://www.ecsl.cs.sunnysb. 

edu/multichannel/ 

4 

87 Range estimates may vary with transmission speed. See Tongia, R., 

2007.”Connectivity in Emerging Regions: The Need for Improved 

Technology and Business Models”. 

3 

2 

2 

1 

5 

Traffic Aggregation Device 

Wireless Mesh Router 

Wired Connectivity Gateway 

End-User Device 

57

5 

The quality of the signal degrades every time it jumps from 

one node to the next, but rural communities may be more 

willing to sacrifice the quality of the signal for affordability 

than urban areas. In fact, the innovative use of Wi-Fi routers 

in many mesh networks highlights the ingenuity present 

within many rural communities desperate for greater 

connectivity and low-cost solutions. After India deregulated 

the use of wireless mesh in 2005, the town of Dharamsala 

installed a community wireless mesh network in order 

to overcome the challenges posed by its erratic electricity 

and mountainous terrain. The Champaign-Urbana Community 

Wireless Network (CUWiN) in the United States set up a 

wireless mesh network linking public institutions and 

community centres in Ghana to the Internet. The University 

of California, Berkeley’s Technology Infrastructure for Emerging 

Regions (TIER) has installed long distance wireless 

mesh networks in Rwanda, Ghana and Guinea Bissau. 

While ad hoc solutions often suffer from reduced signal 

strength, more robust wireless mesh networks are being 

developed and marketed by a number of companies that have 

recognised their potential. An increasing number have appeared 

on the market, which work on the same principle as their ad 

hoc predecessors, but aim to make the implementation 

and sustainability of mesh networks even easier. The Meraki 

Mesh Network, for example, has been developed by 

the Massachusetts Institute for Technology (MIT) and is a 

patented technology which provides wireless broadband 

access at significantly lower cost than current solutions. 

It uses a routing technology to increase the range of 

the network while maintaining its capacity. More than 

100 networks have already been deployed and provide 

connectivity for universities, government institutions, hospitals 

and some rural communities. 

The potential for such networks is huge, especially because 

they require a limited amount of power and operate in licence 

exempt spectrum bands. However, their increased use for 

connecting rural communities depends on the existence of 

core infrastructure, either fixed or fixed wireless, that can 

facilitate the upstream and downstream movement of Internet 

traffic. 

5.4 Satellites (VSAT / Terrestrial) 

A fall in the price of Very Small Aperture Terminals (VSATs) 

during the late 1990s, and subsequent falls in recent years, 

have led to some VSAT models costing approximately US$1,000. 

These price cuts, coupled with the fact that the whole of Africa 

is covered by more than 50 satellites pointing 36 Ku-band 

and 28 C-band across the continent, have led to a significant 

rise in their use for connecting rural communities. There are 

an additional 20 satellites planned for launch over Africa over 

the next three years. Today, VSATs are used to connect numerous 

schools, health centres and community access points across 

rural Africa. 

VSATs are being used to provide and improve connectivity in 

a variety of ways. For example, VSATs have been used to 

provide backhaul for both mobile and fixed-line operators. 

For many years, public telephone operators were the traditional 

consumers of VSAT solutions, but more recently, companies 

such as MTN, Celtel and Vodacom have all used satellite 

communications in order to trunk traffic generated on their 

networks. 

There are many examples of mobile companies using VSATs 

as a means of bypassing high interconnection costs imposed 

by incumbent operators or as a replacement for poor or nonexistent 

fixed-line infrastructure. 

58 



Vodacom makes extensive use of satellite communications 

to provide the links in its networks in African countries. The 

network buys bandwidth on geo-stationary satellites in bulk 

and installs 9m dishes at its mobile switching centres, linking 

to smaller dishes at base stations. Vodacom expects that for 

at least a decade to come, satellite links will be the quickest 

and cheapest way of building its network backbone in Africa. 

SES New Skies presented a profitable business case for 

connecting 5000 rural villages with voice communication 

and Internet access via a Wi-Fi gateway. They estimate that 

the hub equipment would cost US$2M and each VSAT 

terminal would cost approximately US$700, with an additional 

US$100 for Wi-Fi access. 

The monthly service charges would amount to US$40 per 

VSAT connection, which would fall to just US$2 per village. 88 

Figure 5.4 depicts how the network infrastructure interact 

to bring access to rural subscribers. 

Figure 5.4: Rural VSAT Connection 

Rural 

Subscribers 

WiFi 

Access 

WiFi 

Gateway 

Broadband 

VSAT 

Source: SES New Skies, Presentation 19 June 2008 

COMARCI Day, London 

Satellite 

Internet 

Connection 

Internet 

Gateway 

Internet 

This ability to efficiently carry voice and data, providing 

access to the Internet and to VOIP services, is another reason 

why VSATs are often seen as instrumental to connecting rural 

communities. It is, therefore, unsurprising that a number of 

governments have worked hard to liberalise the provision of 

satellite communications. These efforts have resulted in new 

licensed service providers entering the voice traffic market 

and Internet business, thereby fuelling the competition 

required to drive down prices and spur rural connectivity. 

That said, the cost of implementing VSAT systems is still 

relatively high for low-income rural areas. An entire system 

usually consists of three network components: a hub station, 

which is a satellite earth station with an antenna and network 

management equipment; a satellite in geostationary orbit 

above the earth, and remote VSAT stations located within the 

footprint of the satellite. The cost of the hub is an extremely 

large capital investment at US$1 million. When this initial 

capital expenditure is assessed alongside operational costs 

like space segment charges, electricity and maintenance 

costs, it is clear that the economies of scale required to make 

VSATs a viable option are only achieved when operating large 

rural connectivity projects which connect a number of rural 

communities. As a result, for many isolated communities, 

VSAT will still not be a viable option for connectivity unless 

some financial support in the form of subsidies or grants is 

offered to potential providers. 

88 Calculated assuming a fully loaded transponder with 70Mbps of IP on a 36 

MHz transponder and 17.5 Mbps worth of returns on 12 MHz.

5.5 Internet Telephony 



Many believe the increasing use of Internet telephony is 

having and will continue to have a significant impact on rural 

connectivity. By far the biggest impact of VOIP has been on 

prices for voice telephony. IP telephony involves the conversion 

of voice into packages that can be sent over the Internet and 

therefore bypass the traditional traffic routing and relevant 

charges. Therefore, voice calls can be provided at reduced 

prices for rural and low income consumers. Even those rural 

users that don’t have access to Internet telephony services 

have received the benefits of improved prices, as incumbent 

and mobile operators compete with Internet telephony 

providers. 

The potential for VOIP to drive universal service has been 

recognised by both African policymakers and regulators. 

Indeed, some years ago, the CEO/Managing Director of the 

Nigerian Communications Commission, Engr Ernest Ndukwe, 

suggested that “a sure way to promote universal access to 

telecommunications services, at this stage of the industry’s 

development is to evolve a policy framework that recognizes 

the issue relating to VOIP as an engine for the development 

of telephony in Nigeria.” 

By far the most significant shift brought about by the success 

of Internet telephony and the increased implementation of 

IP networks is the way in which incumbent operators are 

structured. The advent of IP telephony and networks has 

catalysed the increasing use of a layered market model and 

highlighted the benefits of separating retail (services and 

applications and wholesale (infrastructure). This is because 

Internet telephony resellers have highlighted the profits that 

can be made by buying capacity from telecommunications 

operators and use that capacity to facilitate IP voice calls for 

a fee. Historically, incumbent operators have existed as 

vertically integrated entities, which essentially provided 

everything from infrastructure to services. The three-layered 

market model, which consists of the services and applications 

layer, the transmission (transport) layer and the physical 

infrastructure, means efficient incumbents will no longer 

operate in all three layers. Instead, they will be responsible 

for the infrastructure and transmission layer. 

This should allow for full competition at the service and 

application layer, as well as the infrastructure and transmission 

layer. The result should be a positive, competitive impact on 

the rollout of core infrastructure required to connect rural 

communities. 

5.6 Power Line Communication / Broadband over Power 

Lines 

The use of power line communication (PLC), or broadband 

over power lines (BPL) when accessing the Internet, uses the 

existing power grid to transmit signals and can be used as 

an alternative to constructing dedicated communications 

infrastructure. It also offers the potential to foster competition 

as the entry of energy suppliers into the telecommunications 

market could drive down the price of access. That said, the 

potential for PLC to connect underserved communities to 

broadband services and increase competition in the ICT sector 

is limited by the reach of the national power grid. Moreover, 

because power lines radiate electromagnetic noise, there is 

still concern about PLC interfering with other spectrum users, 

as has been demonstrated by tests in the U.S., Japan and 

Europe. 

Despite these limitations, PLC may be a viable option for 

unconnected communities living within reach of a power line 

where little other radio transmission is passing, and 

stakeholders in both the comparator countries and the 18 

African Commonwealth countries are exploring its potential. 

In 2005, the Malaysian Communications and Multimedia 

Commission (MCMC) worked in collaboration with the Energy 

Commission to develop guidelines on broadband over power 

line communications. In the United States, the FCC has 

established rules for broadband over power lines, which are 

specifically designed to promote the provision of broadband 

services to underserved areas and increase competition. 

Cactel Communications has just successfully piloted the use 

of the Internet, Internet PC phone, live streaming and security 

cameras using PLC in Ghana. The innovative company 

demonstrated the small-scale technology to the Electricity 

Corporation of Ghana, the Government, the National 

Communications Authority (NCA) and Ghana Telecom. 

However, according to Cactel, the pilot was targeted at the 

power utility company, which is to be undergoing privatisation 

and is actively seeking ways to diversify its services. Observers 

said that the NCA is keen on expanding the pilot testing to 

five of the UNDP-funded Community Information Centres in 

rural areas. 

Although in its infancy, the technology does have particularly 

attractive and promising qualities. For one, the communications 

signal does not rely on power within the cable while travelling 

through it, rather the source of the signal and modem rely 

on power, which can be powered by back-up sources. This 

means that power outages will not necessarily disrupt 

communications. The average cost of one medium-voltage 

sub-station modem is between US$5,000 and US$6,000. 

If the end user lives more than 3 kilometres from the power 

line, a modem and repeater are necessary to boost the signal, 

which costs an additional US$3,000. An additional modem 

and repeater will be necessary for every 2,000 customers, 

and the equipment to support each power point costs US$100. 

In an interview with Balancing Act’s Russell Southwood, 

Cactel Communications’ Andrew Boye explained that "you 

can ring together 10 medium-voltage sub-stations. It is the 

ubiquity that this approach will offer that makes power line 

the key to last-mile solutions. It can also be used in a rural 

environment where the only requirement is access to 

electricity." 89 

The low level of electrification in the 18 African Commonwealth 

countries, as discussed in the next section, means the 

possibility of increasing connectivity through PLC must be 

put in context. However, the use of PLC in some of the 

comparator countries and the increasing number of 

electrification projects in countries such as Lesotho, 

Mozambique, Malawi, Namibia, Tanzania, Uganda and Zambia 

means it warrants urgent and serious attention. Successful 

pilots of PLC, such as in Ghana, need to be proliferated. For 

this to happen, it is imperative that effective and robust 

collaborative mechanisms are established between energy 

companies, the Ministries responsible for ICT and regulatory 

authorities to ensure new or improved power lines can provide 

connectivity. 

89 Ghanaian broadband powerline test, Balancing Act, 22 July 2005, available 

at: http://www.rac.ca/regulatory/BPL/Africa percent20BPL..html 

5 

59

5 

5.7 Power and Electricity Availability and Rural 

Connectivity 

The operation of ICT infrastructure, such as mobile base 

stations, WLL and VSATs, is dependent upon a constant 

supply of electricity. This is a significant challenge for African 

countries whose national electricity grids are severely 

undeveloped and characterised by the same problems as 

their ICT infrastructure, namely an urban-rural divide. Analysis 

by the World Bank indicates that the average electrification 

rate in Sub-Saharan Africa was 27 percent between the mid 

1990s and 2002, the lowest among all the world’s regions. 

Moreover, after disaggregating the data, the Bank concluded 

that only 8 percent of the rural population had access to an 

electricity supply compared with 51 percent of the urban 

population. When looking at these figures, it is important to 

note that many of the electrical supplies that are available 

in Africa are intermittent, and users often go without electricity 

for days or even weeks at a time. 

Unsurprisingly, many of the 18 African Commonwealth 

countries are plagued with poor electrical networks and 

intermittent supplies that have a detrimental impact on 

connectivity, especially in rural areas. In Uganda, for example, 

less than 20 percent of the national population has access 

to the main grid and only 2 percent of the rural population. 

In Zambia, 98 percent of the rural population rely on biomass 

as the main source of energy. Firewood and charcoal constitute 

80 percent of the total national energy supply and electricity 

just 11 percent. In Ghana, like many countries, both urban 

and rural communities must use diesel power generators to 

guarantee a constant electricity supply. 

Many of the 18 African Commonwealth countries are trying 

to resolve the problem by embarking on large-scale 

electrification projects designed to rehabilitate and extend 

the electricity supply. In Zambia, for example, the Rural 

Electrification Authority aims to increase access to rural 

households from the current 2 percent to 15 percent by the 

year 2010. In the urban areas, the target is to increase access 

from 48 percent in 1998 to 70 percent in 2010. In Ghana, 

the government is currently using a US$3.7 million grant 

from the government of Japan to finance the second phase 

of the Rural Electrification Scheme. Concentrated in the 

Upper Denkyire District in the Central region, the project 

should ensure that 36,000 residents will be able to access 

the national grid. 90 If successful, rural electrification efforts 

will remove one of the major impediments to rural connectivity. 

5.8 Renewable Energy Alternatives 

In today’s world of climate change, energy shortages and 

rising fuel prices, the importance of developing renewable 

energy alternatives to power telecommunications and ICT 

services cannot be understated. Even where electricity is 

available in rural areas, power failures are common and the 

need for expensive back-up generators raises the cost of ICT 

services even more. There are several examples of ICT 

initiatives targeting rural areas that use renewable energy 

technologies in both the comparator and African 

Commonwealth countries. 

90 Ghana: Japan Supports Ghana in Rural Electrification, Ghanaian Chronicle, 

24 August 2007, available at http://allafrica.com/stories/200708240944.html 

60 



In Australia, the Government and industries undertook solar 

and wind power demonstration projects to introduce hybrid 

renewable technologies to remote areas off the national power 

grid, and implemented electricity market reform in order to 

encourage the use of new renewable energy technologies. 

The initiatives have supplied 8,000 remote households with 

renewable-energy power, and the telecommunications industry 

has provided 10,000 remote households with a solar powered, 

microwave-based telephone system. 

A number of Vodacom’s base stations in rural areas in South 

Africa are solar powered and one base station is wind powered. 

In Lesotho, a wind-rich country, Vodacom has four windpowered 

sites with a free-cooling system to minimise power 

consumption. In the DRC, Vodacom uses a principle whereby 

the running time on generators is reduced by installing a 

base load controller, which enables the network to reduce 

the running time of generators by almost two thirds while the 

site runs on batteries. 

The Ghana e-Care project establishes locally owned and 

operated telecommunication centres in rural areas. The 

centres run on solar energy and sell clean energy services, 

in addition to ICT services, as part of the sustainable business 

model. In Zambia, the UNDP Growing Sustainable Business 

Programme and Suntec are implementing a programme to 

deliver a solar panel, regulator, battery and inverter for use 

in rural households in partnership with microfinance 

institutions. In Lesotho, the Siemens Information and 

Communications Group rolled out a wireless local loop in 

2002, using solar panels to serve the 97 subscribers (as of 

April 2004) who lived in rural areas. 

Governments can encourage the development and use of 

renewable energy technologies through a number of 

mechansims, be it tax rebates to offset the relatively higher 

costs of renewable energy or import duty waivers and tax 

reductions to local companies supplying renewable power 

and equipment to mobile operators. Incentives should also 

encourage public-private partnerships between utilities and 

telecommunication operators, as well as technology 

manufactureres, to innovate and develop new technologies 

that address renewable energy needs. For example, the power 

consumption of the Himalayan Mesh Router, which is locally 

designed and built for the Dharamsala Community Mesh 

Network, is less then 4 watts, so many are powered solely by 

small solar panels.



Building Human Capacity for Rural Connectivity 

This chapter argues that human capacity-building is a key 

element in building demand for ICT services in rural areas, 

thereby driving expansion of rural connectivity. The chapter 

provides a brief overview of the status of human capital in 

the 18 African Commonwealth countries and then explores 

some key initiatives that have successfully increased 

ICT awareness and human capacity in rural areas. 

6.1 Building Rural Demand for ICT Services 

In an ever-connected global information society, human 

capital is fast becoming an essential ingredient to a country’s 

development. A lack of human capacity to access, utilise 

and manage ICT infrastructure and services is often cited as 

a key impediment to rural connectivity because potential 

users in rural areas cannot demand telecommunications and 

ICT services without the knowledge and skills to use ICTs 

and an appreciation for how ICTs can benefit their lives. The 

WSIS Plan of Action encourages national e-strategies to 

include the necessary human capacity-building element, 

because recent ICT growth across the globe can be at least 

partly attributed to targeted human capacity building and 

innovation strategies. 

Likewise, InfoDev argues that ICT initiatives, which often 

focus too narrowly on technical aspects of implementation, 

must also take human resource development and capacity 

building into consideration. The initiatives must target the 

local information and communication needs and should 

include training programmes for local people in order to 

create an ICT culture. “If attention is directed towards ensuring 

that the communities living alongside ICTs are aware of their 

existence, purposes and potential, the project initiatives will 

stand a greater chance of survival.” 91 Once pilot projects 

have made rural communities aware of ICTs and their 

associated opportunities, relationships between the local 

community and the various ICT stakeholders must be 

established to foster continued productive use of the 

technologies and generate demand for their content and 

services. 92 

6.2 Status of Human Capital in the 18 African 

Commonwealth Countries 

Within the 18 African Commonwealth countries there are a 

range of strategies, initiatives and policies aimed at improving 

human capital and awareness of ICTs. On one end of the 

spectrum are countries like Namibia, which has made 

significant advances and employed unique strategies such 

as negotiating discounted broadband rates for all its educational 

institutions, or Mauritius, which has ambitiously undertaken 

a policy to transform the entire island nation into a wireless 

“hot spot” for connectivity. And at the opposite end are 

countries that are slowly recovering from civil war, such as 

Sierra Leone, which is in the initial stages of developing their 

ICT capacity. Generally there has been a shift from projects 

to policies and stronger government willingness to realise the 

potential of ICTs. 93 The majority of the COMARCI countries 

already have ICT policies in place, as seen in Table 2.3a and 

a fair portion also have ICT policies specifically tailored for 

the education sector in an effort to build human capacity for 

using ICTs. 

91 “Rural Access to Information and Communication Technologies: The Challenge 

for Africa”, InfoDev, 2000. 

92 “Southern African Development Community – World Economic Forum 

Consultation Report on e-Readiness”, World Economic Forum, 2001 / 2002 

93 Survey of ICT and Education in Africa, InfoDev (p1) 

http://www.infodev.org/en/Publication.353.html 

Public-private partnerships (PPPs), amongst educational 

institutions, one or more ministries, donor and development 

agencies, and private ICT companies such as Microsoft and 

Cisco, have sprouted up across Commonwealth Africa. 

Many of these partnerships are in the form of ICT trusts, 

designed to increase investment and involvement of 

stakeholders in ICT infrastructure for development in 

education. 94 The past decade has also witnessed the rise of 

regional initiatives within many Commonwealth African 

countries. Examples include the New Partnership for Africa’s 

Development (NEPAD) e-Schools Programme, SchoolNet 

Africa (SNA), African Virtual University (AVU), and the 

International Education Resources Network (iEarn), to name 

a few. There is a growing recognition that greater cooperation 

and participation will yield stronger, more sustainable results. 

Despite these positive developments, the majority of universities 

in Commonwealth Africa are afflicted with a shortage of 

ICT hardware and poor access to affordable high-speed 

Internet connectivity. A 2006 survey of ICT infrastructure in 

African universities described the situation as too little, too 

expensive, and poorly managed. 95 It also stated that, in 

2006, the average African university bandwidth capacity was 

equivalent to a broadband household connection in Europe, 

but at a cost 50 times greater than their educational 

counterparts in the rest of the world. 96 Much has changed, 

however, over the past two years. 

Numerous African initiatives, such as the National Research 

and Education Networks (NRENs) in Botswana, Kenya, Malawi, 

Mozambique, Namibia and other African countries, are aimed 

at improving connectivity between universities at the national 

level. In addition, NREN aims to connect these national 

networks to international undersea cables, such as the muchanticipated 

East African Submarine Cable System (EASSy), 

in order to improve international connectivity and reduce 

costs to sustainable levels. 97 Despite weak ICT infrastructure 

and high broadband costs, universities are better equipped 

than other levels of the education sector. Currently, African 

governments are placing great importance on improving 

ICT infrastructure and ICT human capacity, at the secondaryschool 

level first and then at the primary level. 98 This push 

for connectivity has been complemented by the introduction 

of computer science and ICT-related courses in the formal 

curriculum. 

In South Africa, as in many African countries, the shortage 

of ICT skills has been elevated to national importance. The 

African Advanced Institute for ICT (Meraka) was established 

in 2004, facilitating national economic and social development 

through human resource development and needs-based 

research and innovation, leading to products and services 

based on ICT. In March 2008 a further development to 

address ICT skills shortages was announced when President 

Thabo Mbeki launched the South African e-Skills Academy. 

The Academy is a collaboration of private sector companies 

with the sole purpose of assisting the country in addressing 

this challenge. Along with government support, donor agencies 

and NGOs are playing a large role in supplying PC and ICT 

training. Despite liberalisation of the telecommunications 

sector and an increasing number of service providers in the 

COMARCI countries, the cost of connectivity for the majority 

of educational institutions remains prohibitive. 99 

94 Ibid. p9 

95 Steiner, R., T. Nyaska, M. Jensen, and G. Karanja. “African Tertiary Institution 

Connectivity Survey (ATICS).” World Bank Institute. 

http://www.gesci.org/files/Connectivity percent20inpercent20African 

percent20tertiary percent20institutions.pdf 

96 Ibid. 

97 Ibid. p10 

98 Ibid p17 

99 InfoDev, “Survey of ICT and Education in Africa” 

6 

61

6 

This is especially the case in rural areas which are severely 

underdeveloped with regards to ICT infrastructure. For most 

of the COMARCI countries, the majority of the population 

live in rural areas (Malawi 80 percent, Mozambique 

70 percent). 100 Often a significant portion of the rural 

population is unable to take part in any form of conventional 

education due to the remoteness of the village, cost of 

schooling or because the children are needed to help with 

subsistence agriculture. In Lesotho, roughly 25 percent of 

children do not attend school for this last reason. 101 

The schools that do exist in rural areas are often ill-equipped. 

For example, in South Africa, of the 6,000 schools that have 

access to PCs, it is estimated that only 2,500 have Internet 

access. 102 Many schools that do have internet connections 

are plagued with intermittent power supply. Various strategies 

have been employed to combat these obstacles, such as 

connecting computer labs to solar panels in Namibia, or the 

Nigerian Government’s order for 1 million crank-powered 

wireless XO laptops which are US$100 each and do not need 

an external power supply. Some countries have experimented 

with VSAT technologies, such as the SchoolNet Uganda 

initiative, but it proved to be expensive and 

unsustainable. 103 The use of generators has also been explored, 

but in an environment of rising fuel prices it is unlikely to 

be financially sustainable. In spite of all the obstacles 

mentioned, many COMARCI countries have managed to roll 

out successful ICT capacity-building initiatives which are 

discussed in the following section. 

6.3 Examples of Training and Capacity Building 

Efforts/Initiatives 

Throughout the comparator countries and Commonwealth 

Africa, there are shining examples of successful ICT capacitybuilding 

initiatives. Malaysia and Mauritius have put the 

telecentre on wheels to combat some of the traditional 

challenges of reaching rural communities and to bring their 

ICT capacity-building programmes to rural teachers and 

students. The phenomenal success of Canada’s SchoolNet 

initiative has been replicated and adapted across the globe, 

and the initiation of 16 demonstration NEPAD eSchools has 

multiplied to over 80 communities in nine African countries. 

The following sub-sections highlight some of the innovative 

features of these initiatives. 

6.3.1 Capacity building by bus 

The Mobile Internet Unit (MIU), or Cyber Coach, in Malaysia 

is bringing ICT literacy training programmes to students, 

teachers and parents in rural schools, while simultaneously 

collecting data to help develop national ICT policies. 104 The 

MIU is a self-contained mobile vehicle equipped with 

multimedia cyber learning material, including books, 

courseware, software, ICT peripherals, audio-visual aids, 

evaluation packs and library services. It is designed to handle 

rough terrain in rural areas and has its own electrical generators. 

Each year the MIU travels to 20 schools and aims to instruct 

a total of 2,800 students and teachers in basic Internet and 

computing skills, including webpage development. 105 

100 Ibid. 

101 Ibid. 

102 InfoDev, “Survey of ICT and Education in Africa” 

103 Ibid. 

104 Ibid. 

105 Multi media Malaysia: Internet Case Study, ITU, 2002, (p38) 

http://www.itu.int/asean2001/reports/material/MYS percent20CS.pdf 

62 



If there is no Internet connectivity, the MIU demonstrates 

the usefulness of the Internet using cached Internet sites. 

Each day, the MIU aims to train 140 people in basic 

ICT literacy as well as participate in ICT awareness campaigns 

and special events. Its goal is to leave each school with at 

least one PC and a fixed connection to the Internet. 

The initiative is possible due to collaboration and adoption 

of the “smart-partnership” model by three main sectors in 

Malaysia: the government organizations (MOE and State 

Library), private sector/NGOs (UNDP/APDIP, NITC, MIMOS 

BERHAD & ACM/HICOM) and the various communities. 106 

Mauritius has employed a similar model to implement its 

Cyber Caravan. The project is implemented by the National 

Computer Board (NCB) and is increasing ICT competency, 

especially in common computer applications, and educating 

citizens on the benefits of using computers. There are two 

operational cyber caravans, equipped with 10 PCs each, a 

LAN network and a broadband connection. Courses cover a 

range of subjects, from understanding how to use basic 

computer functions to learning how to enter and manage 

data and formulae, perform calculations, use the Internet 

and e-services, and become aware of various types of viruses. 

Since the start of the project, in 2000, over 60,000 have 

completed the ICT literacy, ICT Awareness and IC3 courses. 107 

Uganda has recently launched its own cyber caravan with 

similar features, although along with ICT education it will 

also disseminate information on ICT for development, the 

Commonwealth, and the meaning of the UN MDGs. 108 

The idea of using mobile ICT centres has met with success 

in a variety of environments. Important lessons to learn are 

that the highest rate of success will be achieved when there 

is a strong partnership between the various stakeholders with 

the goal towards designing versatile mobile units to handle 

the current environment and place learning materials in the 

proper context. Undoubtedly, they can play a significant role 

in the short- to medium-term by increasing awareness and 

the capacity of rural populations in all of the COMARCI 

countries, which will in turn increase demand for rural 

connectivity and create greater market incentive for operators 

to penetrate deep into rural areas. 

6.3.2 SchoolNet 

One of the keys to Canada’s success in developing strong 

ICT human capacity in even the remotest of areas is the 

pioneering success of the Community Access Programme’s 

SchoolNet initiative. 

SchoolNet was established in 1993 as a partnership between 

Canada’s provinces and territories, education community, 

private sector and Industry Canada to promote the use of 

ICTs in learning. 109 As discussed in Section 2.2.3, the key 

to SchoolNet’s success was the leveraging of the PPP model 

to nurture local ownership that keeps the community 

enthusiastic and the project relevant to the diversity of local 

needs. On 30 March 1999, Canada became the first country 

to connect all its schools and public libraries to the Internet. 110 

The success of Canada’s SchoolNet has led to its export 

across the globe. 

106 Stockholm Challenge, Mobile Internet Unit (MIU): Reach Out and Touch 

http://www.stockholmchallenge.se/data/mobile_internet_unit_miu_ 

107 Stockholm Challenge, Cyber Caravan Project 

http://www.stockholmchallenge.se/data/33036 

108 Stockholm Challenge, ICT Caravan to disseminate information on ICTs, MGDs 

and the Commonwealth across Uganda -2008 

http://www.stockholmchallenge.se/data/1741 

109 Industry Canada, http://web.archive.org/web/20070224224427/www.schoolnet. 

ca/home/e/whatis.asp 

110 Ibid.



There are SchoolNet initiatives in over 30 African countries, 

16 of which are Commonwealth members. Namibia’s 

SchoolNet initiative was established in 2000 and has made 

substantial gains in using the Internet to empower youth, as 

well as providing sustainable low-cost technology solutions 

to Namibian schools. 111 

In 2002, SchoolNet established its own ISP and purchased 

multiple standard refurbished computers. Currently, it collects 

redundant ICT equipment from the donor, public, and private 

sectors, locally and internationally, and sets up the equipment 

in disadvantaged schools. 112 It has also made efforts to 

provide solar power to computer labs in schools outside the 

national power grid. 

In an innovative move to ensure sustainability of the project, 

SchoolNet Namibia 113 successfully negotiated significantly 

discounted, wireless Internet service with Telecom Namibia. 

It has also adopted the free and open source software solutions 

and creative commons licensed educational content. One 

example is the web-based insert called Hai Ti! (“listen up”), 

which is published under the creative commons licence and 

popularises the use of ICTs among teachers. 114 

The initiative also offers ICT learning opportunities to street 

kids, the unemployed and those with little formal education. 

The “kids on the block” programme provides peer-to-peer 

training by young volunteers to students and teachers at 

schools and volunteers repair the computers, set up 

installations and provide back-up support and helpdesk 

services. 115 This community involvement increases local 

ownership and boosts the awareness and ICT capacity of 

Namibians. 

6.3.3 The NEPAD e-Schools Initiative 

The New Partnership for Africa’s Development (NEPAD) 

launched an e-Schools initiative at the Africa Summit of the 

World Economic Forum in 2003. According to Dr. Henry 

Chasia, Deputy Executive Chairperson for NEPAD, it was “the 

first time that African governments, the private sector, 

foundations, development agencies and civil society 

organizations have come together for a common ICT project 

developed and driven by Africans, and for Africa.” 116 

The initiative is aimed at harnessing ICT technology to improve 

the quality of teaching and learning in African primary and 

secondary schools. 117 This is to be achieved by equipping 

all African primary and secondary schools with ICTs, such as 

PCs, radios, televisions, fax machines, phones, scanners, 

etc. and connect them to the Internet. The project connects 

all primary and secondary schools to the NEPAD e-Schools 

network to facilitate the introduction of content and learning 

materials that can be easily disseminated among the various 

schools. Another aim is to equip each school with a “health 

point” in order to increase health awareness among students. 

111 SchoolNet NA http://www.schoolnet.na/ 

112 Ibid. 


114 Survey of ICT and Education in Africa (Volume 2) Namibia profile p.10 



116 NEPAD E-Schools Initiative Scoops Global Award 

http://www.nepad.org/2005/news/wmview.php?ArtID=36 

Implementation of the project was initiated with demonstration 

projects taking place in 16 African countries, of which 8 118 

were Commonwealth countries. The aim of the demo projects 

were to highlight challenges, determine “best practices”, 

monitor the effectiveness of PPPs, and examine typical 

e-school scenarios to inform the large scale implementation 

of the project. 119 For example, in Mozambique the demo 

project was initiated in six schools with private sector 

participation. HP and Microsoft formed a consortium to 

support the project which supplied each of the six schools 

with computer labs of 20 PCs, a server, printer, media lab, 

and in some cases a PC-based kiosk with health information 

and a television with satellite connection to various educational 

channels. 120 Teachers in the schools were also trained in the 

use of PCs. 

A school in Bugulumbya, rural Uganda, was made famous in 

2005, as it was the first institution to receive computers 

under the NEPAD initiative. Previously the school had no 

electricity, like many other schools in rural Africa. However, 

due to the Ugandan Government and a consortium led by 

Hewlett-Packard (HP), the school was provided with computers, 

furniture, electricity and enough equipment to establish it 

as an e-school. 121 The community also contributed, as 

teachers, students, and parents joined together to plaster 

and paint the buildings. Through effective partnerships and 

community involvement, the school was transformed into a 

functioning e-school within weeks. 

The NEPAD e-Schools initiative has experienced significant 

growth, with nine countries already launching NEPAD 

e-Schools in 80 communities in Africa. 122 As more countries 

launch e-Schools, there is great hope that the gap between 

urban and rural connectivity will narrow. 

6.4 Needs/Gap Analysis with Respect to Human Capacity 


After examining these various initiatives that have flourished 

in diverse environments, it becomes clear that future winning 

strategies will depend on a number of factors. With regards 

to improving connectivity and networks within and between 

COMARCI countries, it is clear that strong multi-stakeholder 

partnerships in the form of PPPPs are necessary in order to 

bear the initial high capital expenditures and also ensure 

relevance and sustainability. 

Although most African Universities are based in urban centres, 

the majority of their student populations have origins from 

rural areas. Thus equipping such students with ICT knowledge 

can indirectly boost eventual rural demand. The Partnership 

for Higher Education in Africa is one key example of a 

partnership which aims to do just that. 

117 http://www.eafricacommission.org/whats-new/news/26/04/2008/nepad-eschools-praisedkey-bridging-digital-divide-africa 

118 Uganda, South Africa, Cameroon, Kenya, Lesotho, Mauritius, Mozambique, 

and Nigeria 

119 InfoDev 2. Mozambique page 8 

120 Ibid p8 

121 Africa Renewal, Internet enriches learning in rural Uganda, 

http://www.un.org/ecosocdev/geninfo/afrec/vol21no1/211-nepad-e-schools.html 

122 http://www.eafricacommission.org/whats-new/news/26/04/2008/nepad-eschools-praisedkey-bridging-digital-divide-africa 

6 

63

6 

The Partnership is composed of the Carnegie Corporation of 

New York, The Ford Foundation, The John D and Catherine 

T. MacArthur Foundation, and the Rockefeller Foundation. 

Following are its primary objectives: 123 

The Partnership selected six African countries that are 

undergoing systemic public policy reform: Ghana, Mozambique, 

Nigeria, South Africa, Tanzania, and Uganda. The universities 

in these countries are now benefiting from an environment 

that allows them to innovate and to transform themselves. 

For example, the Carnegie Corporation has provided grants 

to Universities in Nigeria to include ICT components in their 

planning and provide for training of Nigerian staff in the US. 

The Ford Foundation has assisted the Association of African 

Universities (AUU) to create a database of African theses 

and dissertations (DATAD), which is being implemented in 

11 African universities. And the Rockefeller foundation has 

provided support to the University of Dar es Salaam’s 

“Smart Card” system. 124 

64 

j Generate and share information about issues 

important to African universities and higher 

education institutes 

j Discuss strategies for supporting African universities 

j Support universities that wish to transform 

themselves 

j Encourage networking between innovative African 

university leaders and higher education experts 

j Distil and share lessons learned from grant-making 

j Increase awareness of the importance of universities 

to African development 

123 The Partnership for Higher Education in Africa, 

http://www.foundationpartnership.org/linchpin/introduction.php 

124 Ibid. 



Along with effective partnerships, ingenuity and appropriate 

design for the local context is also paramount, as it 

will increase the relevance and abundance of content and 

ICT services. 

One such example of local content curricula is the 

Commonwealth of Learning (COL)-led Virtual University for 

Small States of the Commonwealth (VUSSC). The project 

focuses on creating post-secondary skills-related courses in 

areas such as professional development, tourism 

entrepreneurship, disaster management, and a number of 

technical and vocational subjects. 125 

Each course is created under the Creative Commons copyright 

using WikiEducator, this allows educators to quickly adapt 

the context of each course to suit the country in which it is 

taught and also have it offer credit-bearing qualifications for 

post-secondary institutions. Botswana, The Gambia, Lesotho, 

Namibia, The Seychelles, Sierra Leone, and Swaziland are 

currently participating in this initiative, and staff from each 

country is trained in developing content that will be included 

in the VUSSC database. 

If rural populations are not aware of how to use ICTs, or what 

benefits they can accrue from ICTs, it is unlikely they will 

harbour strong demand for ICT services. Therefore, increasing 

awareness of relevant ICT services is paramount to stimulating 

sufficient demand for ICT services to constitute an economically 

viable business case for investment in rural connectivity. 

125 Survey of ICT and Education in Africa, InfoDev (p15) 

http://www.infodev.org/en/Publication.353.html



Financing Rural Connectivity 

7.1 The Challenge of Rural Connectivity 

The first challenge to financing rural connectivity is that rural 

connectivity is historically an expensive endeavour. Rolling 

out telecommunications and ICT infrastructure to rural areas 

involves high fixed capital costs. The remote geographical 

location, topography and vegetation are all physical obstacles 

to infrastructure rollout, while poverty, sparse populations, 

and the absence of commercial and manufacturing industries 

in these areas make for low potential return on the initial 

investment. If the global community is to connect Africa’s 

rural unconnected, a fair degree of investment is yet to be 

seen. 

Attracting that investment is the second challenge to financing 

rural connectivity in Africa. Many African countries suffer 

from low creditworthiness rankings and small local financial 

markets, while some struggle in instable political environments. 

The region receives the smallest share of global private 

investment in infrastructure and is therefore still an unfamiliar 

market for many potential investors. 

In short, if these hurdles are to be surmounted, an innovative 

approach, combining the resources and financial strengths 

of various stakeholders, is required to establish the necessary 

infrastructure and spread the financial risk across multiple 

parties. Despite the challenges described above, the picture 

is not all bleak. New business models based on pioneering 

technologies and applications have changed how 

telecommunications and ICT operators view the rural market, 

as discussed in chapters four and five. Moreover, between 

1990 and 2004, the ICT sector captured 64 percent of all 

infrastructure investment flowing into sub-Saharan Africa. 

The region can attract more private foreign investment if it 

can reduce foreign exchange risks and some experts argue 

that local capital markets have good potential in some 

countries. 126 

As discussed in Chapter Two, the Connect Africa Initiative 

was launched by the ITU in Kigali in October 2007 and the 

Connect Africa Commitments Portal showcases new 

commitments and initiatives made by various ICT stakeholders 

including governments, international organisations, the private 

sector and civil society. At the 2008 ITU Telecom Africa 

Forum in Cairo, the Secretary-General of the ITU, 

Dr. Hamadoun Touré, discussed the progress of the total 

US$55 billion commitments advertised in the portal and 

reaffirmed that "Investment, not charity, is the solution for 

Africa's development." 

This report continually emphasises the critical role of publicprivate 

partnerships (and Public Private Peoples Partnerships) 

in overcoming the challenges posed by rural connectivity; 

and a review of the initiatives and commitments in the 

Connect Africa Commitments Portal, nearly all of which are 

implemented in partnership, highlights their importance. 

Again, PPPs are critical tools for harnessing the expertise 

and resources of the private sector and the administrative 

and political power of the government to share both the risk 

and opportunity for investing in rural connectivity. While 

governments have traditionally been the primary providers of 

infrastructure, as discussed in the next section, it is the 

private sector that is now appreciated as the main catalyst 

for economic growth, employment creation, innovation and 

investment. 

126 Robert Sheppard, Stephan von Klaudy, and Geeta Kumar, “Financing 

Infrastructure in Africa”, GRIDLINES, A publication of the PPIAF, No. 13 

Sept 2006 

127 Seventy-five percent of the operator is state-owned while the remaining 25 

percent of shares are publicly listed. 

This chapter will examine what various ICT stakeholders around 

the globe are doing to meet the Connect Africa goals (see Box 

2.1.1 in Chapter Two), and more specifically, how their actions 

are accelerating rural connectivity in Commonwealth Africa. 

The first section discusses the traditional role that governments 

play as the primary provider of telecommunications 

infrastructure. The following sections discuss the critical 

complementary roles of multilateral and bilateral development 

partners. Following is a discussion of how private sector 

companies, such as mobile telecommunications operators and 

technology manufacturers finance ICT and rural connectivity 

endeavours. 

A number of financial institutions, such as the African Finance 

Corporation (AFC) and Standard Bank’s Frontier Markets 

Fund Managers (FMFM), are making rural connectivity in 

Commonwealth Africa more attractive to private investment 

by reducing risks associated with new and unfamiliar markets, 

such as foreign exchange and natural disaster risks. Universal 

service and access funds, and the ambitious Digital Solidarity 

Fund, are also proven models to induce private sector 

investment and finance rural connectivity. Throughout the 

chapter, the reader will notice that few of these financiers 

work alone, rather most appreciate the advantages gained by 

engaging various players’ strengths and resources in synergistic 

public-private partnerships. 

7.2 Government Funding 

The role of the government as the primary financier of 

telecommunications infrastructure is well established around 

the world and amongst the comparator countries. For example, 

Australia’s fixed-line telecommunications backbone was 

largely built by the formerly state-owned incumbent Telstra 

with government funds, well before the mobile revolution. 

Today, the country’s Networking the Nation (NTN) Programme 

has allocated AU$40.5 million since 1997 to install 

222 mobile base stations and 55 repeaters throughout 

regional, rural and remote Australia. NTN has funded a total 

of 696 projects worth AU$325 million collectively, and 

60 of these, worth AU$35.1 million in total, are targeted 

towards connecting indigenous communities in rural areas. 

Likewise, much of India’s national backbone was built by the 

state-owned incumbent BSNL, before the advent of mobile 

technology. Today, the government operates a universal service 

fund to entice operators to extend their networks into the 

uncovered rural areas, but only BSNL has significant coverage 

to qualify for the fund’s subsidies. And in Malaysia, majoritystate-owned 

Telekom Malaysia Berhad owns virtually all of 

the country’s fixed-line infrastructure and therefore dominates 

the fixed-line market with 97.8 percent market share. 127 

Between 1993 and 1995, a total of 5 licences were issued 

for the fixed-line market. However, Telekom Malaysia’s market 

share remains unchallenged, due to the prohibitively high 

cost of building fixed-line infrastructure. 

In a similar fashion, the African governments have been the 

primary financiers of infrastructure projects, including 

telecommunications, since attaining independence in the 

late 1950s and early 1960s. The state continues to be the 

major provider of fixed-line telecommunications infrastructure 

in many countries through its continued significant stake in 

the incumbent national operator. 128 

128 See Table 2.4.5 in Chapter 2 to view state’s ownership/investment in each 

country’s incumbent national fixed-line operator 

7 

65

7 

For example, while the Government of Botswana is looking 

to privatise its monopoly fixed-line incumbent BTC, it has 

committed US$60 million to restore and strengthen the 

national telecommunications network. An additional 

US$60 million is allocated to the construction of undersea 

cables off both the east and west coasts, in partnership with 

its neighbouring countries, to provide international connectivity. 

Similarly, the Nigerian Government is embarking on the 

ambitious National Rural Telephony Programme (NRTP), 

funded in part by a US$200 million loan from the China 

Development Bank. Similarly, the Ministry of Communications 

in Ghana began its National Communications Backbone 

Infrastructure Project in 2006, which will connect Ghana 

directly to Burkina Faso, Togo and Cote D’Ivoire. The project, 

expected to cost US$70 million, is partly funded by a 

US$20 million concessionary loan from the China Exim Bank. 

In contrast to fixed-line operators in the comparator countries, 

the African fixed-line operators are trying to lay the basic 

backbone infrastructure in competition with dynamic 

(and often privately owned) mobile operators. Therefore, the 

challenges faced and role of the government are vastly different 

than their comparator-country counterparts. The need for 

government intervention to correct the market failures in the 

provision of fixed-line infrastructure is now widely accepted. 

The recent implementation of national backbones on openaccess 

principles by some governments is just one example. 

In addition to such national infrastructure projects, some 

Commonwealth African governments have also taken a leading 

role in funding various ICT initiatives, in partnership with 

multilateral and bilateral development partners, private sector 

telecommunications operators and other financial institutions 

and lending bodies, some of which are detailed in the following 

sections. 

7.3 Multilateral Development Partners 

Due to the exceptional costs of rural connectivity and the 

restricted resources of many African governments, multilateral 

development partners have proved to be critical contributors 

to rural connectivity efforts. This section details the initiatives 

and commitments made by some of the largest and most 

influential actors. Thankfully, these institutions have stepped 

up efforts in response to WSIS and made significant 

commitments to Connect Africa. 

Some of these organisations’ efforts, namely those of the 

World Bank Group, the African Development Bank (ADB), 

the International Telecommunications Union (ITU), the 

European Commission (EC) and the Development Bank of 

Southern Africa (DBSA), are detailed in the following 

subsections, but the list is by no means exhaustive. 

7.3.1 The World Bank Group 

The World Bank Group is owned by its 185 member countries 

and is comprised of two separate development institutions, 

namely the International Bank for Reconstruction and 

Development (IBRD) 129 and the International Development 

Association (IDA). 130 Together, the IBRD and IDA are 

commonly referred to as the World Bank. 

129 The IBRD focuses on middle income and creditworthy poor countries, such 

as South Africa, Namibia, Botswana and Mauritius 

130 IDA focuses on the poorest countries in the world, such as Mozambique, 

Malawi and Sierra Leone for example 

66 



The World Bank Group is also comprised of three World Bank 

affiliates, namely the International Finance Corporation (IFC), 

the Multilateral Investment Guarantee Agency (MIGA) and 

the International Centre for Settlement of Investment Disputes 

(ICSID). As such, initiatives, low-interest or no-interest loans, 

credits and grants that affect rural connectivity in 

Commonwealth Africa flow through each of the World Bank 

Group’s member bodies. Some of these initiatives and 

commitments are described here. 

Global Information and Communication Technologies 

Department 

The Global Information and Communication Technologies 

Department (GICT) is the joint department of the International 

Finance Corporation (IFC) and the World Bank (IBRD and 

IDA) with the mission to promote access to ICTs in developing 

countries. It brings together the IFC’s expertise in private 

sector investment and the World Bank’s experience in policy 

and regulatory issues. 

The GICT is also home to the Information for Development 

Programme (infoDev), a multi-agency partnership housed at 

the World Bank that helps developing countries maximise 

the impact of ICTs for development and poverty reduction. 131 

infoDev places particular emphasis on the need to increase 

access to information infrastructure, applications and services 

and to support private sector entrepreneurs in the ICT industry. 

One of its focus areas is Rural Livelihoods, and in July 2008 

infoDev released its report “Measuring ICT Availability in 

Villages and Rural Areas” in order to track the global progress 

made towards the 2015 WSIS target goals. 

A month later, infoDev published “Financing Technology 

Entrepreneurs and SMEs: Challenges and Opportunities”, 

which explores how to make credit available to ICT SMEs in 

the developing world. infoDev also provides technical and 

financial assistance to help stakeholders in developing 

countries improve their regulatory and policy frameworks, as 

well as design, implement, scale-up and carry out ongoing 

monitoring and evaluation of ICT programmes and projects. 

The results of an infoDev study on the challenges and 

opportunities in the Ghanaian ICT sector shaped the 

government’s strategy to stimulate growth in the sector with 

a US$40 million loan from the World Bank. An ongoing effort 

with the GSM Association (GSMA) 132 and IFC examines how 

the growth in mobile phones is extending the reach of financial 

services to the previously un-banked in rural areas. 

The IFC’s investments in Commonwealth Africa, through the 

GICT, are described in Table 7.3.1a on the following page. 

131 infoDev is funded by the European Commission, Finland, Germany, India, 

Ireland, Japan, Korea, Sweden, Switzerland, the United Kingdom and the 

World Bank 

133 Founded in 1987, the GSMA is a global trade association representing more 

than 750 GSM mobile phone operators across 218 territories and countries 

of the world. In addition, more than 180 manufacturers and suppliers support 

the Association's initiatives as associate members. 

http://www.gsmworld.com/about/index.shtml



Table 7.3.1a: IFC Investments in Commonwealth Africa 

CountryOperator Year Value (US$) Description of Investment 

Ghana Areeba Ghana (subsidiary 2005 40M 

of Investcom LLC) 

Multiple Celtel International 1994 70M Towards Celtel at the holding company 

countries (now rebranded Zain) level to 2008 in the form of various financial 

instruments 

50M Towards Celtel’s operating subsidiaries in 

Uganda, Sierra Leone, Zambia and the DRC 

Cameroon Orange Cameroon 2002 13.8M To develop and operate a nationwide GSM 

cellular network. 

In addition, the IFC and PROPARCO jointly 

provided an FCFA29 billion loan as a credit 

enhancement facility with a partial guarantee 

of 12.5% of principal and interest for 

US$41.2M, a stand-by facility of US$5.4M 

and subordinate loans of US$9.4M. 133 

Nigeria MTN Nigeria 2003 100M 15M equity investment, 35M loan and 50M 

standby loan 

A regional survey project in Africa aims to answer some basic 

questions related to the use of ICTs in education and infoDev 

partnered with the ITU to develop the widely used, webbased 

ICT Regulation Toolkit. Working in a partnership with 

the ITU and the World Bank, infoDev is building on the 

success of its toolkit to develop the Global Capacity Building 

Initiative (GCBI) for regulators in developing countries, 

beginning with the COMESA region in Africa. By partnering 

with universities, regional regulatory associations and other 

training institutes in Africa GCBI will offer training and 

capacity building opportunities to regulatory staff across the 

continent. 

The Africa Regional Communications Infrastructure Program 

(RCIP) is a World Bank Group effort to further connectivity 

and transparency in East and Southern Africa, the only region 

in the world unconnected to global fibre-optic infrastructure. 

RCIP works to extend the broadband network to all capitals 

and major cities in the region, in turn contributing to lower 

prices for international connectivity, attracting private sector 

investment and improving government transparency by enabling 

e-government services.The RCIP funds technical assistance 

for the further liberalisation of the telecommunications and 

ICT sector, the deployment of backbone infrastructure in 

“missing link” areas, and coordination of public-private 

partnerships to attract private sector investment in the ICT 

sector. RCIP financing is in the form of a long-term Adaptable 

Programme Loan, which is provided in phases over the 

project’s lifetime. RCIP is financing projects in Kenya, Burundi 

and Madagascar in the first phase of operations, accounting 

for a combined US$164.5 million, out of the total US$424 

million for the entire programme. 

133 This assistance is of particular note as it was the first local currency financing 

for an infrastructure project on the continent 

2004 35M To upgrade the existing network and rollout 

additional infrastructure in high-congestion 

areas 

In Kenya, RCIP is financing the Kenya Transparency and 

Communications Infrastructure Project (TCIP) that, among 

other objectives, will finance the government’s virtual 

communications network, scale-up the successfully piloted 

Digital Village initiative, and promote the development of 

SMS and Interactive Voice Response (IVR) e-services. 

Malawi and Mozambique have been selected as phase two 

countries, scheduled for launch this year, and are expected 

to cost US$20-24 million and US$15-18 million respectively. 

Other eligible countries in East and Southern Africa, including 

Botswana, Lesotho, Mauritius, Namibia, the Seychelles, South 

Africa, Swaziland, Tanzania, Uganda and Zambia, can apply 

to receive funding in future phases of the programme. 

The Multilateral Investment Guarantee Agency 

Mobile communications have sprung up in what are traditionally 

perceived as high-risk markets, but the confidence required 

for these investments has been induced by the World Bank 

Group’s Multilateral Investment Guarantee Agency (MIGA). 

MIGA is responsible for the promotion of investment in 

emerging economies by insuring investors and lenders against 

political risk and losses relating to war, civil disturbance, 

expropriation, currency transfer restrictions and breach of 

contract. 

As a strategic priority of MIGA, Africa has received US$2.3 

billion in guarantees for investments since MIGA’s foundation. 

Since 1996, MIGA has supplied more than US$500 million 

in investment guarantees for 16 telecommunications projects 

in Africa. MIGA’s investment guarantees in Commonwealth 

Africa are detailed in Table 7.3.1b on the next page. 

7 

67

7 

Table 7.3.1b: MIGA Investments in Africa 

68 



Host CountryProject Name Guarantee Holder Investor CountryGross Exposure Fiscal Year Description 

(US$M) 

Nigeria Vee Networks Ltd Ericsson Credit AB Sweden 45 2006 To cover Ericsson’s non-shareholder 

loan of US$73.7 million including 

interest to Vee Networks for a period 

of up to 8 years. 

Involves the installation, operation and 

maintenance of a national GSM network 

under a 15-year licence. 

Nigeria IP Satellite Accelon (Pty) Ltd South Africa 11.40 2004 To cover Accelon’s US$15.2 million 

Services Ltd equity investment in IP Satellite 

Services for a period of up to 3 years. 

Involves the establishment of an ISP 

facility operated via a satellite platform 

to provide flexible high-quality, highspeed, 

Internet service packages. 

Nigeria Econet Wireless Econet Wireless Ltd United Kingdom 10 2002 To cover Econet’s US$19.3 million 

Nigeria Ltd (EWN) Ericsson Credit AB Sweden 70 equity investment and retained earnings 

in EWN for a period of up to 5 years. 

To cover Ericsson’s US$70 million nonshareholder 

loan, plus interest, to EWN 

for a period of up to 5 years. 



under a 15 year licence. 

Nigeria MTN Nigeria MTN Mauritius 50 2002 To cover MTN’s US$285 million non- 

Communications Ltd shareholder loan to MTN Nigeria 



under a 15 year licence. 

Tanzania Wilken Afsat Wilken Group Ltd United Kingdom 0.43 1996 To cover Wilken’s equity and 

(Tanzania) Ltd shareholder loan to Wilken Afsat 

Tanzania. Establishes a satellite 

communications link to transmit data 

to and from overseas locations, using 

VSAT technology, via a hub to be 

located in Kampala, Uganda. 

Tanzania Zanzibar Meeco International Liechtenstein 3.2 1999 To cover equity investments in Zantel 

Telecom Ltd (Zantel) Company Ltd to establish a telephone network 

Kintbury 

Investments Ltd 

United Kingdom independent from that of TTCL. 

Uganda Starlight Starlight United States 2.6 1996 To cover equity and shareholder loans 

Communications Telecom Ltd to establish a network of some 20 pay 

Uganda Ltd phones in Kabnale, Kampala, Masaka 

and Mbarara using wireless, satellitebased 

technology. 

Uganda Wilken Afsat Wilken Group Ltd United Kingdom 1 1996 To cover Wilken’s US$300,000 equity 

(Uganda) Ltd investment and US$371,963 

shareholder loan to Wilken Afsat 

Uganda to establish a satellite 

communications system, using VSAT 

technology and a hub to be located in 

Kampala (see Tanzania project). 

Ghana Scancom Ltd Investcom Luxembourg 99 2005 To cover Investcom’s US$110 million 

Holding SA equity investment, in the form of future 

retained earnings, in Scancom. 

Involves the expansion and upgrade of 

Scancom’s existing network and the 

US$22.5 million 15-year licence 

renewal fee. 

Sierra Leone PCS Holding Sierra-Com Ltd Israel 3.4 2006 To cover Sierra-Com’s equity investment 

Sierra Leone Ltd in PCS Holding SL for a period of up 

to three years. 

Involves the establishment of fixedline, 

state-of-the-art broadband wireless 

access and a voice over IP network. 

Source: MIGA, adapted from tables and information available at http://www.miga.org/regions/index_sv.cfm?stid=1530 

The Public-Private Infrastructure Advisory Facility



Managed by the World Bank, the Public-Private Infrastructure 

Advisory Facility (PPIAF) is a technical assistance facility, 

owned and directed by its member donors, namely the World 

Bank, IFC, the United Nations Development Programme 

(UNDP), Asian Development Bank, EC, Australia, Canada, 

France, Germany, Japan, the Netherlands, Norway, Sweden, 

Switzerland, UK and US. Launched in 1999, the PPIAF 

grew out of the World Bank Group’s Infrastructure Action 

Program and now works with developing countries to meet 

infrastructural challenges through public-private partnerships. 

In 2007, PPIAF provided US$41.47 million for infrastructure 

projects in sub-Saharan Africa, of which US$2.9 million went 

to telecommunications projects. Funding is available for a 

range of activities, including the development of strategies 

to promote private sector investment, the design and 

implementation of policy, regulatory and institutional reforms, 

the design and implementation of innovative pilot projects 

and government capacity-building in the telecommunications 

sector. 

7.3.2 The African Development Bank 

The African Development Bank (ADB) is a regional multilateral 

development institution that finances projects for the economic 

and social development of its African member countries. 

Approximately 75 percent of the ADB’s 2007 budget for 

loans and grants went to infrastructure projects 

(UA 1.9 billion), of which 1.7 percent financed ICT 

infrastructure (UA 32.3 million). 134 In addition, ADB has 

committed close to US$65 million to two key regional 

infrastructure projects, the Regional African Satellite 

Communications Organisation (RASCOM) 135 and the East 

African Submarine Cable System (EASSy). The ADB is 

expecting to scale-up such investments in the future, investing 

60 percent of its concessional resources on infrastructure, 

including ICT, in the next three years. 

7.3.3 International Telecommunication Union 

The lead organising agency of the World Summit on the 

Information Society (WSIS), the International 

Telecommunication Union (ITU), is the United Nations agency 

dedicated to ICTs, with 191 member states and over 

700 sector members and associates. Also one of the founders 

of the Connect Africa initiative, the ITU has committed 

substantial funding to a number of projects affecting rural 

connectivity. 

For example, the Harmonization of ICT Policies for Sub Saharan 

Africa (HIPSSA) is projected to cost just over 

US$5 million. The project aims to support African governments 

develop such national ICT policies as discussed in Chapter 2 

of this report, as well as foster an enabling and competitive 

environment for private investment in ICT. 

The ITU is also working with the private sector, regional and 

international organisations and African governments to conduct 

“Feasibility Studies for Connecting Africa”, a programme 

costing over US$11 million. The feasibility studies and resulting 

project documents will focus on broadband infrastructure 

investment, with particular focus on rural and remote areas. 

The goal of each study is to identify the specific needs of a 

country and the resources required to meet the desired level 

of connectivity, balancing the need to achieve developmental 

goals with the need to create business opportunities. The ITU 

has also joined forces with the UNDP to conduct a US$2.5 

million feasibility study for “Strengthening African Capacity 

for Cost-Effective Access to the Internet.” 

134 ADB financial statements are expressed in Units of Account, defined 

approximately as 1 UA = 0.8887 grams of fine gold. Using the international 

exchange rate at the end of August 2008, UA 1.9 billion was approximately 

US$50 billion. 

7.3.4 The European Commission 

In 2007, the European Commission (EC) and African Union 

Commission (AUC) launched the EU-Africa Partnership on 

Infrastructure to support interconnectivity at the continental 

level. The Partnership is endowed with a Trust Fund of 

€100 million in grants and €260 million loans, all of which 

must be invested in the energy, transport, water and 

ICT sectors. The Partnership’s focus on ICTs is three-pronged: 

regulatory reform, broadband infrastructure and noncommercial 

electronic applications. 

With regard to regulatory reform, the EC has supported ITU 

efforts to establish an enabling and competitive regulatory 

framework for telecommunications in Western Africa. The 

EC has now committed an additional €6 million towards 

extending the work to the rest of Africa and creating a unified 

set of Telecom Directives on the African continent. 

With regard to broadband infrastructure, the European 

Investment Bank (EIB) has provided a total of €4 million in 

technical assistance, of which €2.6 million is in grant form. 

In addition, the EIB awarded a US$15.3 million loan to the 

West Indian Ocean Cable Company and an additional 

€1 million is allotted for studies on missing broadband links 

in Africa. 

And finally, in the non-commercial electronic applications 

category, the EC, European Space Agency, World Health 

Organisation (WHO), AUC and the African regional economic 

commissions are currently implementing a €500,000 satellite 

telemedicine pilot project. After the successful pilot, a more 

comprehensive e-health programme for all of sub-Saharan 

Africa will be designed and budgeted. 

7.3.5 Development Bank of Southern Africa 

The Development Bank of Southern Africa (DBSA) is a 

development finance institution with the mission to effectively 

implement sustainable development solutions. In the last 

few years, the DBSA financed several ICT projects, including 

equity investments and loans totalling ZAR50 million for the 

Globocom Broadband Wireless Network in South Africa and 

a US$16 million loan to Undo Startle to fund a new fixed 

wireless network in South Africa. 

7.4 Bi-Lateral sponsors 

Bilateral assistance is given by the government of one country 

directly to another and many OECD and other industrialised 

countries have set up official development assistance agencies 

responsible for the dissemination of bilateral assistance. 

This section catalogues some of the major bilateral aid 

agencies and their contributions to rural connectivity in 

Commonwealth Africa, but it is by no means exhaustive. 

The UK’s Department for International Development (DFID) 

has a strong history of supporting African ICT initiatives, 

many of which either directly or indirectly enhance rural 

connectivity. Between 2001 and 2006, DFID committed 

some £40 million on ICT4D programmes and activities. The 

bilateral agency supported the £9 million Catalysing Access 

to ICT in Africa (CATIA) initiative from 2003 and 2006, 

which promoted affordable access to various kinds of ICTs, 

ranging from community radio to the Internet. DFID also 

jointly funded the Open Knowledge Network (OKN) with the 

Government of Canada in order to facilitate the development 

of local e-content in developing countries. 

135 RASCOM is an intergovernmental commercially run organization, whose 

capital is open to the private sector, that works to integrate the African 

national networks into a regional satellite communication system 

69 

7

7 

The Building Digital Opportunities (BDO) programme, in 

which the CTO delivered more than 50 capacity building 

workshops and 16 research studies, was supported by 

£7 million from DFID between 2000 and 2004. Likewise 

the successor programme, Building Communication 

Opportunities (BCO), was funded with £4.5 million between 

2004 and 2007. 

DFID also supports a number of multilateral donor initiatives 

that impact rural connectivity, such as the World Bank’s 

infoDev. The Global Partnership on Output-Based Aid (GPOBA) 

is a multi-donor trust fund, established in 2003 by the World 

Bank and DFID. Among its initiatives was a US$12 million 

output-based aid project, which was designed, in part, to 

address ICT development projects in Africa. 

The official development assistance agencies across continental 

Europe are also extending their reach to the African 

telecommunications market. For example, the Swedish 

International Development Cooperation Agency (SIDA) 

guaranteed an 8-year US$20 million loan to Angola to 

construct a fibre-optic backbone cable along the Angolan 

coast. The German-owned international cooperation entreprise 

GTZ funds the African Utility Regulators Forum, which brings 

together all African Utility Regulators for their mutual benefit 

and support. Promotion et Participation pour la Coopération 

économique (PROPARCO), a subsidiary of the French 

Development Agency, signed a US$25 million loan agreement 

with Celtel Tanzania in February 2008 to assist the major 

mobile operator to expand its GSM network into remote and 

rural areas. 

On the other side of the Atlantic, the United States Agency 

for International Development (USAID) has sponsored many 

ICT-related development initiatives in Africa, including the 

five-year Leland Initiative which sought to improve Internet 

connectivity across the continent. It also provided ICT capacitybuilding 

assistance within The Economic Community of West 

African States (ECOWAS). For example, it provided assistance 

to the West African Regulators Assembly and the West African 

Telecommunications Regulators Association (WATRA) on the 

management, technical and commercial aspects of 

implementing a regional roaming mobile network. 

The Canadian International Development Agency (CIDA) is 

responsible for the administration of the bulk of Canada’s 

official development assistance programme. With the aim to 

reduce poverty, promote human rights, and support sustainable 

development around the globe, CIDA focuses on democratic 

governance, private sector development, health, education, 

gender equality, and environmental sustainability. The research 

and consultancy that assisted the government of Uganda to 

establish its universal access and service (UAS) policy and 

operationalise its Rural Communications Development Fund 

(RCDF) was funded by CIDA. 

CIDA also contributed CA$10 million towards the Global 

e-Policy Resource Network Africa Node (ePol-Net Africa), an 

Industry Canada initiative to assist African policymakers to 

draft national ICT strategies and policy. CIDA’s specific 

contribution included the establishment of the Canadian 

e-Policy Resource Centre (CePRC) and the Africa Regional 

Centre in Addis Ababa to assess country needs, promote the 

role of ICTs in development and raise awareness of ePol-Net 

services. Together the CePRC and African Centre have advised 

policymakers on issues ranging from legal and policy 

frameworks for telecommunications to Internet governance 

and e-commerce. 

136 For more information see 

http://www.microsoft.com/southafrica/community/digital.htm 

70 



CIDA contributed CA$2.9 million to Oxfam Quebec’s NetCorps 

ICT Internship programme in Africa, which is designed to 

strengthen the ICT capacity of civil society and public sector 

partner organisations. CIDA was also home to the Canada 

Fund for Africa, which contributed CA$2.5 million to NEPAD’s 

efforts in ICT development projects. The Fund was closed in 

March 2008 and CIDA’s Pan-Africa Programme took over the 

agency’s support for NEPAD. 

Alongside CIDA, Canada is also home to the International 

Development Research Centre (IDRC), a public corporation 

that works in close collaboration with researchers in developing 

countries to use science and technology for social and 

economic development. IDRC provided US$23.7 million in 

financial year 2006-2007 to fund the Acacia Initiative, which 

works with African partners and funds research and pilot 

projects that focus on appropriate applications and 

technologies, infrastructure, policy, and governance. 

IDRC also houses the telecentre.org initiative, which is jointly 

sponsored by IDRC, the Swiss Agency for Development and 

Cooperation (SDC) and Microsoft. IDRC and Microsoft jointly 

contributed initial financing of CA$13 million and SDC 

followed up with an additional CA$5 million. Telecentre.org 

does not fund the creation or maintenance of individual 

telecentres, but rather the social investments and services 

that strengthen grassroots networks among existing telecentres. 

These social investments include financial resources to bring 

telecentre entrepreneurs together and build friendships and 

trust, training programmes, and knowledge-sharing projects. 

Telecentre.org services include sponsorship of event facilitators 

from existing telecentre networks, business planning coaches 

and website tools for online communities. 

Telecentre.org has a number of current programmes in 

Commonwealth Africa. UNESCO’s Community Multimedia 

Centre Programme is providing training, technical support 

and knowledge-sharing services for telecentres throughout 

Mozambique. USAASA, Microsoft Digital Villages 136 and 

SangoNet 137 will train small telecentre operators in social 

enterprise development in South Africa and the Ugandan 

telecentre network UgaBytes will extend its support and 

training services to telecentres across East Africa. And further 

afield, the Australian Agency for International Development’s 

(AUSAID) worked closely with DFID on the component of 

CATIA that extended the initially USAID-supported 

NetTel@Africa network of African Universities across the 

continent and enabling peer exchanges and support for African 

ICT regulators. 

In 2006, the Government of India partnered with the AU to 

launch the US$1 billion Pan Africa E-Network Project, with 

the aim to connect all 53 African countries and India to one 

satellite and fibre-optic network. The infrastructure is to 

extend to rural and underserved communities, carrying 

e-education and telemedicine services to the previously 

unconnected. The Indian government has already developed 

e-education and telemedicine hubs in Bangalore and 

Ahmedabad, which are to link directly to a satellite hub being 

built in Senegal. India will fully fund the projects and train 

the African partners for five years, after which the AU is 

responsible for the sustainability of the network. Black Lion 

hospital in Addis Ababa, Ethiopia is home to the first Pan 

Africa E-Network telemedicine pilot. The US$2.13 million 

project links Black Lion to India’s leading cardiac institute, 

the Hyderabad-based Care Group of Hospitals, enabling 

Indian and African doctors to examine X-rays, laboratory 

results and medical charts together. 

137 SangoNet is a web-based, development-information portal for NGOs in South 

Africa

7.5 The Private Sector 



While African governments continue to liberalise their 

telecommunications markets, there is increasing opportunity 

for private sector investment. Both operating companies and 

equipment vendors are actively seeking new opportunities; 

however, private equity partners and financiers have yet to 

flock to the continent. 

The operating giants in Africa include France Telecom, 

Portugal Telecom, MTN, Zain, and Vodacom, among others. 

How some of these operating companies are investing and 

driving rural connectivity in Commonwealth Africa is discussed 

in Chapter 4. These operators and hundreds of other GSM 

mobile operators also drive rural connectivity through the 

GSMA’s collective activities. 

At the Connect Africa Summit in 2007, GSMA announced 

its members’ plans to invest more than US$50 billion in 

sub-Saharan Africa over the following five years in order to 

provide more than 90 percent of the population with mobile 

coverage, including GPRS, EDGE and HSPA technologies. 

One specific initiative of the GSMA Development Fund is the 

Phones for Health public-private partnership with Motorola, 

healthcare software provider Voxiva and the Ministries of 

Health in a number of developing countries. Voxiva developed 

and deployed web- and mobile- based health information 

systems that allow real-time reporting of health data from 

the field to a central database. Healthcare workers can input 

data into their phone or PDA and transfer data via GPRS or 

SMS data channel, as well as order medicine, send alerts 

and download treatment guidelines and training materials. 

The US$10 million project is to roll out the information 

system to ten countries in sub-Saharan Africa, after the 

successful pilot in Rwanda, and help health workers to be 

more effective in combating tuberculosis, malaria and 

HIV/AIDS. 

In addition, the technology manufacturing companies, such 

as Ericsson, Sony Ericsson, Nokia, Nokia-Siemens Networks, 

Motorola, Huawei and ZTE, also contribute to connectivity 

in a range of ways, from ICT initiatives for youth empowerment 

to the development of solar-powered equipment. 

Ericsson developed the Ericsson Expander solution, which 

is allowing Orange Botswana to reach rural customers previously 

too remote for cost-efficient coverage. In fact, Ericsson’s 

investment and initiatives on the continent are prolific and 

cannot be numbered here, but among its notable rural 

connectivity initiatives are its Millennium Village partnership 

with the Earth Institute at Columbia University and the Indian 

Gramjyoti Rural Broadband Project discussed in Chapter 9. 

Ericsson’s research and innovation in renewable energy 

alternatives is extensive and recently, Ericsson teamed up 

with Indian mobile operator Idea Cellular and the GSMA's 

Development Fund to develop biofuels as a source of power 

for wireless networks in rural India. In their pilot project in 

Pune, Maharashtra, the three will begin using biofuels to 

power mobile base stations located beyond the reach of the 

electricity grid. 

In April 2007, Motorola, the GSMA Development Fund and 

MTC Namibia successfully trialled a wind and solar-powered 

solution to support the operator's remote GSM cell sites and 

facilitate the extension of the network to remote areas where 

the main power grid does not reach. 

Motorola is also implementing its broadband wireless 

technology, Canopy, which uses unlicensed spectrum ranging 

from 2.4 to 5.9 GHz and 900 MHz and has enabled Seaside 

Communications and the government of Nova Scotia to 

connect the most remote areas of the province with broadband 

Internet connectivity. The Motorola Canopy will also build 

the wireless backbone in India’s rural Rajasthan state. 

Huawei Technologies is now responsible for implementing 

phases two and three of the National Rural Telephony Project 

(NRTP) in Nigeria, as mentioned in section 7.2. The three 

Chinese equipment manufacturers, Huawei, ZTE and Shanghai 

Bell expanded the national backbone into 218 local 

government areas with the installation of 150,226 new lines 

during the US$300 million phase one of the project, financed 

in part by the Chinese Government through a US$200 million 

concessionary loan to the Government of Nigeria. 

Microsoft has also kick-started a number of ICT initiatives 

across the continent. The global giant is in partnership with 

the United Nations Refugee Agency (UNHCR) to build a 

portable broadband technology platform to make human 

rights information, health information, education and skills 

and vocational training available to refugees, internally 

displaced persons (IDPs) and returnees. 

Microsoft partnered with the ITU to develop the online “ITU 

Global View” to help the global community to visualise and 

track progress towards the WSIS goals. The openly available, 

interactive tool is based on Microsoft Virtual Earth technology 

and allows the user to zoom into any region, country, village 

and/or specific location in the world to view its mobile and 

fixed-line coverage, as well as ongoing development projects. 

7.6 Financial Institutions 

7.6.1 The Africa Finance Corporation 

The private sector-led Africa Finance Corporation (AFC) is 

a hybrid investment bank and development finance institution, 

created to mobilise private capital towards driving Africa’s 

economic development in a profitable way. Focused on 

catalysing private sector investment in Africa’s infrastructure, 

telecommunications is one of the AFC’s target industries. 

The financier claims a US$1 billion capital base to support 

early- and intermediate- stage projects. 

In 2007, the AFC signed a memorandum of understanding 

with Main Street Technologies to develop the MaiN OnE 

project, a broadband submarine fibre-optic cable project 

linking Angola and West Africa to Portugal. The cable would 

compete with and alleviate traffic on the SAT-3 cable, thereby 

reducing costs for international and regional voice and data 

transmission. As an open-access solution, current broadband 

prices are expected to fall by 50 percent below 2007 rates 

and by at least 75 percent within the first few years of 

operation. AFC will be an equity investor and is responsible 

for attracting additional equity partners to the project. 

7 

71

7 

7.6.2 Frontier Markets Fund Managers 

A segregated division of Standard Bank, Frontier Markets 

Fund Managers (FMFM) is a private-sector management team 

that leverages public and private sector debt for public sector 

infrastructure development funds. FMFM operates through 

two lending arms, the Emerging Africa Infrastructure Fund 

(EAIF), which provides hard currency funding for infrastructure 

in sub-Saharan Africa, and GuarantCo, which provides partial 

risk and credit guarantees for local currency funding for 

infrastructure in the emerging markets. 

The EAIF was established in 2002 by DFID and has grown 

to US$365 million with funding from Sweden, the Netherlands 

and Switzerland. The fund makes US dollar or euro investments 

typically between US$10-36 million each for a period of up 

to 15 years. Twenty-nine percent of its commitments go to 

the telecommunications sector. Recent telecommunications 

investments include a 7-year, US$117 million financing for 

Celtel operations in Nigeria, DRC, Malawi, Madagascar, Sierra 

Leone and Uganda in 2003, as well as financing for 

MTN Nigeria in 2004 and US$35 million of debt financing 

for the Seacom undersea fibre-optic cable in 2007. 

The fund is now working on a proposed investment in Rural 

NetCo Tanzania, which would invite five GSM operators to 

share one network on a per usage basis. The project would 

be sponsored by Ericsson, who would sell its shares once the 

rural network is up and running for three years and 

Swedfund 138 has agreed to commit equity. 

GuarantCo funds are currently at US$73 million, but are to 

be increased to US$300 million. The fund offers partial 

credit and risk guarantees, as well as guarantees relating to 

exchange rate risk. Recent financed projects include a 75 

percent credit guarantee of the equivalent of a US$50 million 

5-year bond for Celtel Kenya’s network expansion in 2007 

and a 100 percent guarantee of the equivalent of a 

US$14 million bank loan for Celtel Chad’s network expansion 

to rural areas and nomadic people, also in 2007. 

GuarantCo is also involved in a pending project with Seaquest- 

Infotel Niger, in which it will provide a US$16-18 million 

partial risk guarantee for local currency financing for backbone 

national fibre-optic and wireless infrastructure. The network 

would be shared with Sonitel, which is 49 percent stateowned, 

and would operate a shared access system open to 

other carriers to use and buy into. 

7.7 Microfinance Institutions 

Microfinance institutions (MFIs) are not only extending credit 

to individuals and micro-businesses that would not otherwise 

qualify for credit in the traditional banking sector, but are 

also demonstrating how microfinance can enable “Village 

Phone” businesses and by extension, rural connectivity. Both 

Rwanda and Uganda are home to such programmes, based 

on the success of the revolutionary Grameen Village Phone 

Programme in Bangladesh. 

The Grameen Foundation links the telecommunications sector 

with the microfinance sector to make credit available to 

women entrepreneurs known as Village Phone Operators 

(VPOs) who can then buy a mobile phone and rent its services 

to the rest of the community on a per-call basis. 

In 2003, the Grameen Foundation partnered with MTN 

Uganda to create MTN VillagePhone, which established over 

6,700 new businesses in just three years. 

138 Swedfund is Sweden’s risk capital company specialised in investments in 

developing countries. 

72 



The joint venture reports that rural VPOs sell five times more 

airtime than their urban counterparts, highlighting the high 

demand for telecommunications services in rural areas and 

the profitability of a business model based on shared access. 

To spark a global revolution in telecommunications access, 

Grameen Foundation released the Village Phone Replication 

Manual, a step-by-step guide, published by the United Nations 

Information and Communication Technologies Task Force, 

for replicating the Bangladeshi and Ugandan experiences in 

other developing countries. 

Despite such successes and efforts, microfinance-driven rural 

connectivity projects and businesses have been limited to 

the two East African countries, leaving much opportunity for 

expansion and growth. The IFC has invested US$10 million 

in equity in order to attract new MFIs to the private sector. 

There are hundreds of local African MFIs on the ground with 

close ties to the communities they serve. And, there are a 

growing number of large international banks that act as 

wholesale microfinance providers, providing capital and 

products to the local MFIs who in turn serve the end users. 

Societe Generale is one such international bank with extensive 

financial investments in 32 MFIs throughout 15 countries 

mostly in Africa. 

The MFIs are recipients to €120 million in total, and in turn, 

distribute €970 million worth of microfinance loans to 

1.7 million micro-businesses and individuals; a funding line 

that the rural entrepreneurs in the ICT and telecommunications 

sector should tap into. 

Barclays Bank has indicated its intention of joining Societe 

Generale in the African microfinance market. Its pilot project, 

launched in December 2005, provided bank accounts to 

100 Susu collectors in Ghana. A Susu collector is essentially 

a deposit-taking service, collecting proceeds from market 

traders and small business people who do not have bank 

accounts on a daily basis for a small fee. 

Barclays is not only transferring money from the informal 

economy to the formal, but is also leveraging the existing, 

indigenous and trusted financial institution, the 4000-strong 

network of Susu collectors who traditionally serve families 

with whom they have a long-standing and trusting relationship. 

A number of other major players are moving into the 

microfinance sector, but have not yet stepped foot in Africa. 

Rabobank Group established the Rabobank Financial 

Institutions Development (RFID) in order to invest in various 

nationwide financial institutions in 15 developing countries. 

HSBC has launched a number of pilot projects to provide 

money transfer services and credit cards to partner MFIs in 

Brazil, India, Mexico, the Philippines and Russia; and CitiGroup 

has extensive MFI relations in Asia and Latin America and 

proclaims long-term ambitions in the microfinance market. 

Policymakers, ICT stakeholders, rural entrepreneurs and 

resulting PPPPs must leverage the current excitement and 

increasing investment relating to the microfinance sector to 

ensure benefits to the ICT and telecommunications sector. 

ICTs are enabling innovative ways of delivering microfinance 

to clients and borrowers, especially in rural areas without 

access to traditional banking facilities, and in turn, proven 

microfinance models, such as Grameen Village Phone, 

should enable the delivery of ICT services to rural areas.



7.8 NGOs and Private Philanthropy 

This report has largely focused on the financial sustainability 

of rural connectivity and profitable business models that will 

attract private sector capital to the sector. However, it must 

be noted that rural connectivity is also being enabled in part 

by philanthropic organisations. The Carnegie Corporation of 

New York, the Ford Foundation, the John D and Catherine 

T. MacArthur Foundation, and the Rockefeller Foundation 

are all such stakeholders. Recently, the legendary American 

philanthropists have joined together in the Partnership for 

Higher Education in Africa, discussed in greater detail in 

Chapter 6, which provides grants to various African universities 

to encourage and finance ICT equipment and greater 

ICT integration in the curriculum and amongst the professors. 

In addition to such philanthropic moguls are the hundreds 

of NGOs working in a range of fields throughout Commonwealth 

Africa and that together play a significant role in 

ICT connectivity. Just one example, Poverty Concern Ghana 

and the Scottish Council for Voluntary Organisation have 

partnered to establish 30 ICT Resource Centres in a number 

of secondary schools throughout Ghana to promote education 

and child welfare. Also, 18 vocational institutions will be 

established in order to provide technical and vocational 

training to 2000 unemployed youths. 139 Likewise, Computer 

Aid International is also enabling rural connectivity by 

supplying schools, as well as health and NGO organisations, 

with the necessary ICT equipment. The international NGO 

refurbishes computers for reuse in developing countries, 

shipping over 100,000 PCs to more than 100 countries 

around the world. Recently, the NGO partnered with Computers 

for Schools Kenya to launch an e-waste recycling centre for 

disposed of electronic and electrical equipment, including 

mobile phones and computers, in Nairobi. 

7.9 Universal Service and Access Funds 

In the comparator countries, the Universal Service and Access 

Funds (USAFs) have a long history of success in the comparator 

countries, as a policy tool for liberalised markets to provide 

a financial impetus to expand the telecommunications 

networks to less-profitable areas generally shunned by 

operators. In addition, USF agencies also assist expansion 

of the Internet and other ICT projects in regional and rural 

areas. Increasingly, USAFs are being created in African 

Commonwealth countries, often in cooperation with the World 

Bank, and are gaining momentum in the drive for rural 

connectivity. 

All the comparator countries operate universal service funds 

in some form, and Section 3.2.4 in Chapter 3 discusses 

these operations in greater detail. Here, it is simply important 

to note the different ways each country finances its USAF. 

In Malaysia, all operators contribute six percent of their 

weighted net revenue to the Universal Service Provision Fund. 

India’s Universal Service Obligation Fund is primarily funded 

by a five percent levy on the adjusted gross revenue of all 

telecommunications service providers. In the United States, 

all carriers have contributed to universal service support 

mechanisms based on no more than four percent of interstate 

end-user revenues since 1999. 

139 19 January 2007, Ghana HomePage, available at 

http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php 

?ID=117542 

Individual states are entitled to levy their own fees for universal 

service goals in addition to the federal levy. In 2007, Canada’s 

universal service levy was set at 1.03 percent on both fixed 

and mobile operators, but the fund is also financed by direct 

contributions from the federal budget. Service providers in 

Australia do not contribute a fixed percentage of revenues 

to the universal service account, but rather a variable amount 

based on their revenue and the total amount of claims for 

universal service subsidies. 

Similarly, Uganda’s Rural Communications Development 

Fund (RCDF) is financed from a 1 percent gross annual levy 

on operators’ revenues and is considered to be a model 

universal service fund in Africa. It is currently distributing 

approximately US$6 million by least-subsidy competitive 

tender to expand mobile networks and install approximately 

1,800 public village phones in the country. The RCDF also 

received a US$11 million credit from the World Bank towards 

the ongoing telephony network expansion in underserved 

areas, installation of Internet points of presence in 32 districts, 

establishment of telecentres (10 school-based, 15 postalbased 

and 10 NGO/CBO-based) and technical assistance. 

The RCDF supports establishment of ICT school labs with a 

current focus on secondary schools and vocational institutions. 

Approximately 80 educational institutions are to benefit in 

the 2007-2008 financial year. RCDF supports health data 

points and is equipping 43 district health offices with data 

points to facilitate to data management and information 

sharing in the health sector. The RCDF is also establishing 

ICT training centres at the district level, supporting the 

Uganda Institute of Communications Technology and 

establishing computer laboratories in government secondary 

and vocational institutions. 

The USAFs operating in Ghana and South Africa are discussed 

in section 3.2.4, in the context of the growing trend in policy 

and legislation to establish universal service funds to meet 

rural connectivity objectives. The Ghana Investment Fund 

for Telecommunications (GIFTEL) is financed by a one percent 

levy on all operators’ annual net revenue, as well as any 

grants, donations or voluntary contributions. In 2006, GIFTEL 

funded 10 projects costing US$2 million each, and in 2007, 

GIFTEL funded 40 projects costing US$8 million each. 

A total of 50 projects are planned for 2008. These projects 

include the building of telecommunications masts, community 

information centres and last mile infrastructure. 

Table 7.9 on the next page, indicates subsidies and 

expenditures of South Africa’s Universal Service and Access 

Fund as reported in the 2007 USAASA Annual Report. 

The fund is used to finance a wide range of community 

telecentres, Thusong Service Centres (which provide basic 

telecentre services as well as e-governance, postal and small 

business development services), school cyberlabs and underserviced 

area licensees. 

7 

73

7 



Table 7.9: Universal service and Access Fund: US$ Allocation of Transfers, Subsidies and Overheads 2007 

Source: Adapted from Section 20, 2007 USAASA Annual Report 

74 

Telecom 2,807 

licensees 

Research Telecom facilities Capacity building Promotion and launches Project management & Total 

equipment & services procurement 

(Direct overheads) 

Schools 10,277 

Communities 2,504 6,799 1,727 1,317 12,347 

Under serviced 5,950 5,950 

area licensees 

Total Projects 2,807 18,731 6,799 1,727 1,317 31,381 

7.10 The Digital Solidarity Fund (DSF) 

The Digital Solidarity Fund (DSF) was established after the 

World Summit on the Information Society to combat the 

growing digital divide between developed and developing 

countries. It operates like a universal service fund on a global 

scale, levying voluntary contributions from public and private 

bodies, who are requested to follow the “1% digital solidarity 

principle”, that is, each ICT service provider and manufacturer 

contributes one percent of its revenue to the DSF. 

In 2005, participating governments and private sector 

companies contributed US$1 million and US$750,000 to 

the DSF respectively. In 2006, the participating governments 

contributed another US$1 million. 

The objective of the Fund is to complement national development 

programmes by supporting community-based ICT projects that 

are part of a national strategy. 

All the DSF-funded projects contribute to education, 

professional training, health, ICT support services to local 

administrations or the creation of employment opportunities, 

new revenue or new markets. 

The DSF has invited applications for financial assistance 

twice since its establishment. The first round was conducted 

in 2005, and 6 out of 58 project applicants were selected 

to receive a total US$940,653 from the DSF. In Africa, 

10 telemedicine and e-education projects were financed in 

Burundi and Burkina Faso. In the 2006 round, 7 out of 

59 projects were selected to receive a total of US$1,134,733. 

In making applications to the DSF, stakeholders should note 

that the DSF gives priority to projects exhibiting South-South 

cooperation in selecting projects. 

Various ICT consumers and stakeholders play a role in driving 

rural connectivity, be it a central government seeking to 

increase cooperation with subordinate local governments 

through better telecommunications infrastructure, or a private 

sector company providing information on weather, market 

prices and scientific farm practices through a telecentre 

operation to agricultural communities. ICT consumers and 

stakeholders must often first install the required 

telecommunications and ICT infrastructure in order to provide 

their services to rural communities.



ICT Consumers, Stakeholders and Rural Connectivity 

This chapter will discuss some of the roles that various tiers 

of government, the national postal service, educational 

institutions, medical establishments, money transfer schemes, 

agricultural businesses, civil society, mining and forestry 

businesses, traditional rulers and religious bodies are playing, 

or have the potential to play, in driving rural connectivity in 

order to provide their ICT services. It is important to note the 

role that local e-content plays in building demand for 

ICT services throughout this chapter. The lack of online and 

mobile content relevant to rural communities’ livelihoods is 

often cited as a key impediment to building demand for 

ICT services, thereby limiting the expansion of rural 

connectivity. The examples illustrated in this chapter show 

how some consumers and stakeholders are combating this 

lack of local e-content. 

8.1 Role of e-Governance and Local Governments 

Analysis of the national ICT policies discussed in Chapter 2 

shows that most of our studied countries appreciate the role 

that e-governance can play in bringing about greater 

transparency and democratic processes, as well as interface 

between different tiers of government, various government 

departments, the private sector and the constituent citizens. 

E-governance calls for the networking of various public sector 

institutions and improved access to their services at the 

provincial, district, local or village level, and consequently, 

e-government and e-governance have become major drivers 

of rural connectivity. 

India established its National e-Governance Plan in 2006, 

and in response, the Government of Rajasthan is emphasising 

the need to strengthen ICT infrastructure in order to deliver 

its e-governance services. 140 For example, it is currently 

installing the Rajasthan State Wide Area Network (RSWAN), 

which aims to connect all the state’s 32 districts and 

241 tehsils. The infrastructure project includes a last-mile 

wireless extension of 10 to 15 kilometres in order to reach 

all government offices, e-Mitra kiosks and Common Services 

Centres. The e-Mitra kiosk is an e-governance initiative that 

provides government and information services to rural 

communities based on the PPP model. 

Private entrepreneurs manage and operate the kiosks where 

citizens can pay water, electricity and BSNL bills; buy online 

bus tickets; file public grievances; apply for re-evaluation of 

scores to Board of Secondary Education; apply for ration 

cards, caste certificates, residence certificates and birth and 

death certificates; access land and revenue records; and pay 

various municipal and housing fees, among other e-governance 

services. The Common Services Centres offer many of the 

same services but will all be owned and operated by women 

entrepreneurs. Therefore, the RSWAN foresees a fully 

networked government system with all its administrative units 

connected and able to exchange information amongst each 

other and with their respective constituents. In the same 

spirit, the Government of South Africa modified its Multi- 

Purpose Community Centres model and is now implementing 

Thusong Service Centres through its Government 

Communication and Information Services (GCIS) arm. 

140 “ICT as a tool for promoting good governance” 

http://www.rajasthan.gov.in/rajgovt/banners/bannerpages/promoting 

governance.html 

141 UNESCO http://portal.unesco.org/ci/en/ev.php- 

URL_ID=4499&URL_DO=DO_TOPIC&URL_SECTION=201.html 

142 GCIS 2006-2007 Annual Report http://www.gcis.gov.za/docs/annual/index.html 

p38 

143 UNESCO http://portal.unesco.org/ci/en/ev.php- 

URL_ID=4499&URL_DO=DO_TOPIC&URL_SECTION=201.html 

The GCIS aims to improve accessibility of government 

information and services in partnership with the private sector 

and local and provincial governments. According to UNESCO, 

the Thusong Service Centres are seen by many as the key to 

providing access to South Africans who live in remote or 

under serviced areas. 141 Most of the centres offer services 

from the department of home affairs, social development, 

labour, health, social security, as well as post offices, libraries, 

agricultural extension offices and municipalities, NGOs, the 

police service and community workers. 142 The centres usually 

contain at least 6 governmental offices, which not only provide 

public services but also contribute to the telecentres’ 

sustainability. 143 By March 2007, 96 Thusong centres were 

operational nationwide. 144 

Likewise, the Tanzanian Office of the Prime Minister has a 

number of projects aimed at strengthening the link between 

local government services and central government. The office 

is currently conducting a pilot project in the Coastal Region 

to set up local information centres, linked to the central 

government, in order to provide e-government services to 

local communities. Information officers and technical assistants 

will be fully trained to provide the full range of services, 

including e-education, e-agriculture and e-health. 

Thus far, local information services have been established in 

Nchuchuma, Matumain, Isaka, Sengerema, Mtuwetu, Singida, 

Mpwapwa, Wete (Pemba Island), Tukuyu (Rungwe District), 

Lugoba and Ngara. A number of other rural communities 

have expressed interest in hosting the local information 

telecentres, but financial and technical support continues to 

impede widespread expansion. 

8.2 Post Offices 

Several initiatives aim to leverage the communication presence 

of post offices to provide ICT access and services to the 

public, and to rural communities in particular. E-Post Africa 

is an initiative led by the Regional African Satellite 

Communications Organisation (RASCOM) in partnership with 

the African Telecommunications Union and Pan-African Postal 

Union, to provide ICT access to the public through multimedia 

terminals installed in post offices. The project was launched 

in 2004 and aims to install the RASCOM terminals, which 

provide telephone, fax and Internet services, in every post 

office on the continent. Users can also access e-commerce, 

telemedicine, e-agriculture and tourism services at the post 

office. While e-Post Africa establishes its footprint, many 

African governments have launched their own initiatives. The 

Government of Kenya used VSAT technology to link 400 of 

its 900 post offices to the Internet. According to the Kenyan 

postal authorities, the post office is the only means of Internet 

access in many of the rural communities and the initiative 

has proven very popular. 145 The remaining 500 post offices 

will be connected to the Internet as soon as reliable power 

sources are installed.The Tanzanian Posts Corporation (TPC) 

has a wide network coverage and offers e-mail, fax, copying, 

telephone services, greeting cards, newspaper 

subscriptions/delivery, as well as the transmission of funds 

via money and postal orders, the postal bank and PostGiro 

at many of its post offices. 146 

144 GCIS 2006-2007 Annual Report http://www.gcis.gov.za/docs/annual/index.html 

p37 

145 “Switched on Partnerships”, Posts and the Information Society, available 

at http://www.upu.int/upu_information_society/switched-on_partnerships_ 

en-fr.pdf 

146 Tanzania Posts Corporation http://www.tanpost.com/ 

8 

75

8 

In Uganda, the Energy for Rural Transformation Project, the 

World Bank and the RCDF have partnered to assist the Uganda 

Post to integrate its telecentre operations in 20 post offices 

in rural districts. The project is still under implementation 

and is expected to start operations in 2008. 

8.3 Educational Institutions 

E-Education is often cited as another policy goal in the 

national ICT policies discussed in Chapter 2. Such national 

policies and international initiatives, like WSIS’s call to 

connect all schools to the Internet by 2015, have driven rural 

connectivity by mandating the provision of ICT access to 

educational institutions in rural areas. Moreover, the need 

for accelerated human capacity building and the number of 

distance learning and e-education initiatives identified in 

Chapter 6 underscore the key role educational institutes of 

all levels play in creating demand for ICT services and driving 


Primary and secondary schools help to strengthen ICT capacity 

through the formal educational process and build demand 

for ICT services amongst their teachers, students and workers. 

Educational establishments also facilitate rural connectivity 

by housing community ICT labs, incorporating ICTs into the 

curriculum, and enabling students to participate in e-education 

initiatives like SchoolNet and the NEPAD’s e-Schools 

programme. Universities directly facilitate rural connectivity 

by providing training and offering degrees and courses in 

telecommunications- and ICT-related fields, such as electrical 

engineering, computer science, information technology, etc. 

Universities indirectly facilitate rural connectivity by educating 

a large number of students who are originally from rural areas 

and who demand comparable ICT connectivity during their 

visits and vacations at home. 

In addition, a number of African universities and tertiary 

learning institutions are creating rural demand for ICT services 

by offering distance learning and training programmes. One 

such initiative, funded by the French Government, is the 

COMETES Project, which is being implemented in collaboration 

with the Ministry of Higher Education (MINESUP), the 

Association des Universités Francophones (AUF), the Université 

Paris/Panthéon-Sorbonne (France), and CFA Stephenson. The 

project aims to link five state universities, three technology 

institutes, and two engineering schools in a university network 

to provide a distance learning and training programme. Several 

workshops have trained tutors to guide distance training 

courses and mediate between the remote training centres 

and local students. 

Similarly, the Botswana College of Distance and Open Learning 

(BOCODOL) aims to provide open access to high-quality and 

innovative distance learning programmes and services. It is 

currently running a pilot project to improve educational 

support services through e-mail, the Internet and basic 

computer training. There are currently 50 community study 

centres, which are co-located at secondary schools and 

education centres. Moreover, the Ministry of Education, in 

partnership with the Department of Information Technology 

and the Ministry of Communications, Science and Technology 

(MCST), is developing an Education Data Network (EDN) to 

provide similar services to complement BOCODOL’s efforts. 

The EDN is first being piloted in four institutions where 

Botswana Television transponders provide broadband access 

to the Internet. 

147 http://www.medicusmundi.ch/mms/services/bulletin/bulletin200103/kap01/ 

08strachan.html 

76 

8.4 Medical Establishments 



As the deadline for the achievement of the MDGs draws near, 

Africa continues to be faced with challenges ranging from 

malnutrition, poor maternal healthcare and the spread of 

HIV/AIDS, malaria and other diseases. Again, the national 

ICT policies discussed in Chapter 2 nearly all promote the 

use of ICTs to improve the quality of healthcare and information 

on health and health services. Telemedicine and e-health 

services can improve the quality and reduce the cost of 

healthcare for rural communities in particular. 

There are numerous examples of telemedicine and e-health 

initiatives that save lives everyday throughout Commonwealth 

Africa. In Uganda, Makerere University hosts HealthNet, 

which is linking health researchers, doctors, nurses, medical 

students and other health providers to share knowledge, 

experiences and best-practices. In The Gambia, nurses on 

the remote island village of Ginnack send digital pictures of 

symptoms and X-ray scans to doctors in a nearby town for 

examination. If further evaluation is needed, the doctors send 

the photos to medical institutes in the UK, again by electronic 

means. 

South Africa has one of the best telemedicine networks 

established on the continent and launched the South African 

National Telemedicine Strategy in 2006 to connect and 

provide services to rural medical centres throughout the 

country. 147 The project was piloted in 2000 when six provinces 

were connected with tele-radiology, tele-pathology, teleophthalmology 

and tele-ultrasound services. It targeted poor 

people living in remote areas and empowered health 

professionals in rural areas to use ICTs to enhance the quality 

of healthcare. The project is being implemented by a multistakeholder 

partnership between the Medical Research Council 

of South Africa (MRCSA), the State Information Technology 

Agency, the Department of Science and Technology and the 

Department of Health, which have all collaborated to develop 

the wireless network technology capable of transmitting good 

quality medical images. 

With 5.4 million HIV positive people in South Africa, Vodacom 

has funded the development of an open-source software 

programme called iDART (Intelligent Dispensing of Anti- 

Retroviral Treatment) developed by Cell-Life, a non-profit 

company, in the fight against HIV/AIDS. The system 

computerises and manages ARV stock and 18,000 patient 

records at 11 public clinics. In the next phase, caregivers 

will be notified via their mobiles of patients who have defaulted 

on their treatment and require follow-up. With special software 

designed for mobiles, caregivers will use an easy menu to 

log information about the home visit into a central database, 

which will feed back to the clinic staff. With the iDART 

system, patients that require immediate emergency care are 

easily identifiable and through the innovative use of the 

mobile phone, real-time interventions can be used to improve 

the quality of care for patients on ARVs. 

8.5 Agricultural Businesses 

E-Agriculture is part of the WSIS Plan of Action. The benefits 

that ICTs can have on agricultural production are of growing 

importance as food insecurity threatens the development of 

many African countries today. In response to the current 

world food crisis, World Bank President Robert Zoellick has 

outlined a 10-point plan, in which one strategy heralds the 

need to further invest in agribusiness, which invariably will 

involve a considerable use of information and communication 

technology. Agriculture is the main economic activity in rural 

areas throughout the studied countries, and there are a 

number of ICT initiatives, led by both private sector companies 

and governments, that are successfully enhancing agricultural 

production.



One of the primary objectives of many e-agriculture initiatives 

is to increase market transparency and efficiency by advertising 

the selling price of agricultural goods in the community and 

directly linking buyers with sellers, cutting out extortionary 

middlemen. The initiatives also commonly facilitate knowledge 

and best-practices sharing. In India, the private company 

ITC Ltd. developed a “supply chain mechanism” called 

e-Choupal in 2000. The initiative, which has since become 

the largest e-agriculture initiative in the country, established 

village Internet kiosks that provide farmers with information 

on weather, market prices, scientific farm practices and risk 

management. The kiosks are operated by the local community 

farmers in their homes and facilitate the networking of local 

community farmers who can sell and purchase farm inputs 

and produce from each other. The system’s 5,200 kiosks 

serve 31,000 villages, constituting 3.5 million farmers, all 

in the communities’ local languages. 

ITC Ltd. claims that, on average, each e-Choupal kiosk 

recovers its costs within the first year of operation, and its 

innovative business model ensures its profitability thereafter. 

For example, the company uses the network to advertise and 

sell its complementary products, such as seeds, fertilizer and 

other consumer goods. Also, the kiosk operator can aggregate 

demand from all the community farmers to purchase goods 

in bulk and reduce operational costs for ITC. As the initiative 

grows, local farmers have begun to demand new services 

from ITC, namely the supply of new products and networking 

to market new crops. 

Tata Teleservices has implemented an initiative in partnership 

with M S Swaminathan Research Foundation (MSSRF) to 

target the fishing community in the coastal hamlet 

Virampattinam. Data on the amount of chlorophyll (which 

becomes fish food) floating on the surface of the sea, from 

the Indian Centre for Oceanic Studies is compressed and 

uploaded to a server at the MSSRF, which in turn links to 

Tata services to inform fisherman of the availability of fish 

in different locations on that day. The service also provides 

information on wave height, wind velocity and wind direction. 

In Ghana, the Ghana Information Network for Knowledge 

Sharing (GINKS) established the Atakwa Community Centre 

for Agri-info Sharing through ICTs (ACCASI) to help empower 

women food producers in Atakwa. The purpose of the 

community centre is to voice the information needs of the 

women food producers, as well as train them to use ICTs to 

create and disseminate their existing knowledge on agricultural 

best-practices. The centre also helps connect the women to 

markets and financial resources. GINKS has since concluded 

its research on women food producers at the centre and has 

handed operation and management of the centre over to the 

local community. 

BUSYLAB is another e-agriculture initiative operating in 

Ghana and throughout many West African countries. It is a 

software platform that provides daily market prices and 

information to farmers and traders. The farmers and traders 

can post their buy and sell offers online and use the network 

to contact each other via SMS, personal digital assistants 

(PDAs), fax or e-mail. The project is implemented in a multistakeholder 

partnership among the International Centre for 

Soil Fertility and Agricultural Development (IFDC), the Council 

for Scientific and Industrial Research (CSIR), Food Net 

Uganda, and TechnoServe. 

Vodacom recently launched a project in a community on the 

edge of the Kruger National Park in South Africa, which was 

previously entirely unconnected. After building a cellular 

base station, a hundred small farmers received training to 

use their mobiles to put them in touch with agricultural 

markets and secure the best prices for their crops. Some of 

these farmers have reported a four-fold increase in their 

income as a result. 

The Tanzania Marketing Systems Development Programme 

(AMSDP) is a widespread development initiative that aims 

to increase food security in selected areas of Tanzania where 

crop yields are high but market failures inhibit the 

communities’ economic growth. To do so, the AMSDP works 

to strengthen market mechanisms through a number of 

interventions, one of which is the supply of market information 

using ICTs. Ministry of Industries and Trade officials were 

trained to use market information software and computers 

to disseminate information to the selected areas. Vodacom 

Tanzania participates in the AMSDP by supplying market 

information via SMS, to complement that advertised on village 

billboards, radio and television programmes. 

In other Commonwealth African countries, such as Kenya, 

Uganda, Tanzania and South Africa, numerous farm 

organisations and processed food exporters are in 24-hour 

online contact with buyers of their products in Europe. These 

electronic communications allow for routine discussions and 

agreements on shipping timetables, pricing arrangements, 

goods clearance, etc. to enable a variety of African agricultural 

products and horticultural exports to arrive fresh and 

undamaged to European markets on a daily basis. 

Many of these agro-processing plants are either based in rural 

areas or employ thousands of rural people, who are all 

becoming exposed to the potential of telecommunications 

and ICTs, and are becoming future consumers of e-services. 

8.6 Banks and Money Transfer Schemes 

The socio-economic development implications of mobile 

money transfer schemes are great, especially for the millions 

of rural dwellers who can now receive cash transfers from 

their typically wealthier friends and family living and working 

in urban areas. Schemes such as M-PESA in Kenya and 

Tanzania and South Africa’s Wizzit are bringing banking 

facilities to the millions of Africans who do not have access 

to traditional banking services. 

Kenya’s biggest mobile operator Safaricom was the first in 

Africa to launch the hugely popular M-PESA service in 2007 

to help connect the estimated 80 percent of Kenyans without 

access to traditional banking services. The service, developed 

by Vodafone, allows Safaricom subscribers to transfer money 

to any other phone via SMS, as well as store credit in a secure 

environment and buy airtime. By March 2008, after just 

11 months of service, M-PESA had attracted more than 

1.6 million subscribers and handled transactions totalling 

US$148million. 

Vodacom has now brought its M-PESA service to its 

4.2 million subscribers in Tanzania in April 2008. Only 

1.6 million of the 21 million Tanzanians over the age of 

16 have access to conventional bank accounts, but more 

than 6 million Tanzanians have mobiles or access to a mobile 

phone. 

In South Africa, the innovative WIZZIT is a banking facility 

that also allows account holders to use their mobile phones 

to transfer money, buy airtime and pay accounts without a 

traditional bank account. Rural farmers are using the service 

to pay salaries and wages and pay for electricity, while shop 

owners accept WIZZIT payments in place of cash. In addition 

to mobile payments, the account holders are also given 

Maestro debit cards to access their funds at ATMs or retailers 

for relatively low transaction fees ranging from US$0.15 to 

US$0.78 per transaction. 

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The WIZZIT business model targets the unbanked population, 

which is predominantly in rural areas, as well as aims to 

employ the unemployed. Over 800 “Wizz Kids”, typically 

unemployed university graduates from low-income households, 

are hired to promote the service and assist subscribers to 

open accounts. The business model is also unique because 

it can not only be used with any mobile handset, but with 

any SIM card and across all service provider networks. 

The future impact of mobile money transfer is even greater 

when looking at the potential for international money 

remittances via mobile phone. Measured flows of cross-border 

remittances have grown by an estimated 130 percent since 

2001, representing an estimated US$248 billion in 2007 

sent primarily from developed countries to the world’s emerging 

markets. 

Following the success of such m-banking ventures in Africa, 

the world’s largest recipient of overseas remittances 

(10 percent of the world market), India, is following suit. 

The State Bank of India and Bharti Airtel partnered to provide 

m-banking services in the small Himalayan village of 

Pithoragarh and have experienced great results according to 

the bank chairman, Mr O.P. Bhat. 148 In the same spirit, the 

GSM Association is piloting a network-neutral m-banking 

scheme called the Mobile Money Transfer (MMT) Initiative, 

by bringing together mobile network operators and technology 

providers from all over the world. 

There are now over 40 mobile network operators involved, 

including Vodafone, Orange, Zain and MTN. The process of 

negotiating agreements with local banks to implement 

m-banking schemes can be tedious and time-consuming; 

therefore, the MMT, in partnership with MasterCard, 

aims to standardise the system amongst all mobile and 

banking networks, allowing for global interoperability. 

The GSMA accedes that m-banking would likely thrive without 

intervention, but argues that global interoperability would 

add significant value and accelerate that growth, as depicted 

in Figure 8.6. The GSMA expects interoperability to 

dramatically lower tariffs to the consumer, especially for small 

transfers, as well as reduce cost to the operator by addressing 

regulatory and administrative issues at the international 

multilateral “hub” level, facilitating partnerships with global 

financial institutions, sharing fees amongst all operators and 

reducing customer churn. 

Figure 8.6 

Individual 

MNO 

Subscriber 

penetration 

78 

100% 

75% 

50% 

25% 

Interoperability and Market Momentum 

With interoperability 

No interoperability 

0 2 4 

Years 

6 8 10 12 

Source: GSMA, http://216.239.213.7/mmt/mobile-network-operators.asp 

8.7 CBOs and Civil Society 



Community-based organisations (CBOs) work to address 

various development issues, such as human capacity building, 

economic empowerment, gender equality, agricultural 

productivity, health and HIV/AIDS, etc., throughout 

Commonwealth Africa, and are increasingly leveraging ICTs 

to meet their objectives. Moreover, some CBOs are actively 

promoting the use of ICTs amongst the communities they 

serve. For example, in Tanzania, the Foundation for Civil 

Society (FCS) is informing the country’s CBOs of the benefits 

of ICTs by developing an online network. The Foundation 

trained CBOs to use the website to upload their own content 

on education, health, trade, or any field relevant to their 

work. 

8.8 Others 

Africa is well-known as a source of major raw materials, from 

diamonds, gold, oil and gas, to copper, cobalt, tanzanite, 

uranium and platinum, as well as cocoa, coffee, flower and 

fruit. A large proportion of Africa’s billions of annual exports 

are extracted mostly by multinational firms and other major 

domestic companies close to rural habitations, employing 

hundreds of thousands of millions of rural people. From the 

use of 2-way radio to electronic time-clocking systems, to 

entry-and-exit electronic security systems, to mobile and 

satellite technology installations, many of these rural people 

have become aware of and been impressed by the benefits 

and power of ICTs. 

Some have been trained on various uses of ICTs by their 

employers and are also joining the ranks of rural African 

citizens who now recognise what ICTs can do for them in 

their own lives. 

Finally, all rural communities in Africa include a wide range 

of other civil society actors. From traditional and clan rulers 

and chiefs to priests seconded from urban churches, to 

teachers, nurses and civil servants assigned to local and 

village-level administrations, rural communities are themselves 

an eco-system of various socio-economic groupings. 

Not all rural dwellers are poor, and even the poorest can see 

the benefits of modern technology by watching a television 

programme or by listening to the radio. Increasingly, as well, 

the construction of thousands of kilometres of roads by 

mining, logging and other companies and by government has 

opened up many rural communities, encouraging labour 

migration and the transfer of knowledge about the value of 

ICTs. 

Rural people and the civil societies that nurture them are 

calling for greater access to ICTs. It is now a question as to 

which amalgam of public, private, people partnerships, based 

on viable business models and suitable technologies, and 

accompanies by requisite funding, can best quench this thirst 

for affordable connectivity. 

148 Migrant workers gain mobile banks” 8 March 2007 BBC News. Available 

at: http://news.bbc.co.uk/1/hi/technology/6427655.stm

Conclusions 



A number of recommendations on the development of an 

appropriate policy framework, sound legislation, and effective 

regulation to drive rural connectivity are made throughout 

this report. But other challenges exist; for example, the lack 

of access to electricity, the low income of rural areas, high 

operational and maintenance costs of infrastructure and low 

levels of ICT human capacity. The findings of this study 

recommend a number of strategies to overcome such 

challenges. These include the implementation of parallel 

rural electrification and connectivity programmes, to 

infrastructure sharing, to public-private people partnerships 

that incorporate local ownership and facilities management, 

along with human capacity building to support the more 

technical aspects of various connectivity initiatives. 

Moreover, the report findings encourage governments, 

regulators, telecom operators, investors, financial institutions, 

community and village leaders, and civil society actors 

to work more closely together to identify workable business 

models, test more pilot projects, and implement and scale 

up successful models in order to sustain greater access 

by rural people to ICTs. This chapter itemises those 

recommendations to policymakers, regulators, operators, 

financial institutions, infrastructure owners and technology 

manufacturers supported by the research. In making these 

recommendations, the CTO recognises that there is no single 

best path for all countries to follow and that each national 

ICT strategy and rural connectivity plan needs to be specifically 

tailored to that country’s particular circumstances. That said, 

these recommendations are based on recurring elements of 

national ICT strategies that have already proven successful 

in the comparator countries and in many of the African 

Commonwealth countries. For example, it is quite clear that 

contrary to impressions given to African policy makers that 

the private sector alone could ensure rural connectivity, the 

evidence from the experiences of more advanced economies, 

such as the United States, Canada and Australia, is that a 

heavy dose of governmental initiative and intervention has 

been necessary to ensure ICT connectivity to rural people 

and isolated communities. 

This chapter will also present the set of specific criteria, 

indicating those characteristics of ICT initiatives that have 

proven themselves critical to the success and sustainability 

of rural connectivity initiatives in the countries studied. 

The 10 “winning” ICT pilots, already in operation, that meet 

the essential criteria, and a number of desirable criteria, are 

presented here in order to jumpstart the formation of public 

private peoples partnerships (PPPPs) to replicate these 

groundbreaking and promising initiatives across the African 

continent. 

9.1 Recommendations to Stakeholders 

Based on this research, the CTO makes a number of 

recommendations to the various telecommunications and 

ICT stakeholders. In particular, the stakeholders targeted in 

this section are policymakers / government, regulators, 

USF agencies, financial institutions, infrastructure owners 

and technology manufacturers. 

A. Policymakers, i.e. governments, should strive to: 

j Establish an independent regulator, capable of establishing 

and enforcing impartial rules 

j Prioritise the establishment of a single converged regulator 

and regulatory framework, with jurisdiction over both the 

telecommunications and broadcasting sectors, to take 

into account issues of technological convergence 

j Implement a technology- and service-neutral licensing 

regime to promote competition and ensure the provision 

of services through the most cost-effective means 

j Encourage the participation of the local workforce when 

implementing ICT programmes and installing 

ICT infrastructure, in order to improve local human resource 

development and capacity building 

j Equip universities, science and technology institutes, 

technical colleges, and other tertiary educational institutions 

with modern ICT hardware and high-speed Internet 

connections in order to source an advanced level of skilled 

ICT technical graduates 

j Focus on ICT literacy and related training programmes 

for primary and secondary schools and local people 

B. Regulators should strive to: 

j Put safety-net regulations in place to ensure affordability 

of services in rural areas 

j Encourage favourable interconnection terms that reflect 

the substantially higher operation and maintenance costs 

of rural networks 

j Provide incentives to operators for infrastructure sharing 

to reduce duplication of efforts and increase cost-efficiency 

of service provision 

j Consider the allocation of unlicensed spectrum to 

encourage the development and use of innovative 

technologies 

j Ensure that licence obligations are feasible, flexible and 

technology neutral 

j Establish an independent dispute resolution body to 

resolve disputes between operators in a fair and timely 

manner and thereby promote a competitive and conducive 

environment for rural connectivity 

The body responsible for universal service funds (Regulator 

or USF Agency) should strive to: 

j Disburse universal service funds by competitive tender, 

ensuring the optimal distribution of funds where they are 

needed most 

j Prioritise the disbursement of universal service funds for 

bidders offering “rural packages” such as public access 

kiosks and telecentres 

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9 

C. Operators should strive to: 

j Ensure the affordability and availability of services to rural 

communities 

j Strive to meet rural connectivity targets as mandated in 

their licence conditions 

j Provide reliable, high-quality services with the most cost 

effective technology available 

j Assess the cost of rolling out infrastructure and services 

to rural communities as accurately as possible when 

bidding for universal service funds 

j Cooperate amongst each other to share passive, active 

and backhaul infrastructure 

j Establish employee training programmes to build local, 

practical, on-the-job skills 

j Prioritise the provision of service to rural local government 

headquarters, educational institutions, hospitals and other 

medical facilities and postal offices and other public 

access points, including rural kiosks, telecentres and 

payphones. 

j Negotiate interconnection terms that reflect the 

substantially higher operation and maintenance costs of 

rural networks 

D. Financial Institutions should strive to: 

j View the “bottom of the pyramid” as a market in need of 

telecommunications infrastructure and services to help 

drive economic growth 

j See the potential entrepreneurs at the “bottom of the 

pyramid” who have the business savvy to bring 

telecommunications services to their rural communities 

j Follow the sustainable banking principles as set out in 

the “Equator Principles,” when financing telecommunications 

infrastructure rollout in order to preserve 

social and environmental integrity 

E. Infrastructure Owners should strive to: 

j Lease infrastructure to telecommunications service 

providers in a fair, competitive manner 

j Employ the local workforce when maintaining and installing 

telecommunications infrastructure, in an effort to build 

the local technical and ICT human capacity 

F. Technology Manufacturers should strive to: 

j Step up Research and Development in technologies that 

are relevant to rural connectivity, including innovative 

technology that is suitable for varied terrain—mountainous 

regions, tropical jungles, outlying islands 

j Develop technologies that use renewable energy, such as 

biomass, solar, wind or hydroelectric power, to assist the 

provision of ICT services, especially where rural 

communities are located out of reach of the national 

electricity grid 

80 

G. PPPPs should strive to: 



j Implement national ICT strategies, within the wider 

national development policy agenda, and with a specific 

provision for rural connectivity 

j Identify workable business models that leverage the various 

roles of different ICT stakeholders and consumers for rural 

connectivity 

j Test innovative technologies, financial schemes and the 

above identified business models as ICT pilot projects in 

rural areas 

j Implement and scale up the successful rural ICT pilot 

projects (which we are giving you the opportunity to do 

now) 

j Strive to nurture local ownership throughout the 

implementation of ICT initiatives in order to keep the 

local communities enthusiastic about using ICTs 

9.2 Criteria for the Selection of “Winning” ICT Pilot 

Projects 

Based on these conclusions, COMARCI has begun the 

construction of a set of specific criteria, presented below, 

indicating what characteristics of ICT initiatives are necessary 

for their success and sustainability. 

The essential criteria for the selection of COMARCI “winning” 

ICT pilot projects are the following: 

j Improves rural ICT connectivity 

j Satisfies local needs for ICT services 

j Is easily accessible to the rural community 

j Offers services that are affordable to the rural poor 

j Contributes to the achievement of national policy goals 

j Is financially sustainable 

j Is built on strong PPPP partnerships 

j Uses the most appropriate, cost-effective infrastructure 

j Is able to operate on any reliable power source 

j Provides a reliable and sufficient connection appropriate 

for the services to be delivered and, 

j Makes local technical support available



It is also desirable that the “winning” ICT pilot project meet 

the following criteria: 

j Generates profits above self-sustainability for re-investment 

and expansion 

j Builds on national, regional, and local partnerships 

j Strengthens rural ICT human capacity 

j Sustains public awareness of ICT services 

j Makes instructions on use available in local language(s) 

j Facilitates gender equality 

j Benefits traditionally excluded groups 

j Uses equipment interoperable across networks 

j Takes advantage of renewable energy sources 

j Has the potential to play a peering role and share best 

practices and, 

j Ensures that IPRs are not an impediment to knowledge 

and experience sharing 

9.3 The 10 “Winning” ICT Pilot Projects 

The above criteria have been used to identify 10 promising 

ICT pilots, already in operation, which the CTO proposes for 

large-scale adaptation and replication across Commonwealth 

Africa through PPPPs. Brief synopses of the 10 winning 

ICT pilot projects, in no particular order, follow. 

9.3.1 Motorola / Seaside Communications Rural 

Broadband, Nova Scotia, Canada 

Motorola and Seaside Communications in Nova Scotia, 

Canada, have engaged in a public-private partnership with 

the local government to connect every Nova Scotian with 

broadband Internet connectivity by the end of 2009. Under 

the contract terms, the service providers can not charge rates 

higher than the market rates in urban areas, ensuring 

affordability for the service. The initiative uses Motorola’s 

fixed-wireless technology, Canopy, which has proven costefficient, 

and is easily scalable when demand for more 

bandwidth arises. The innovative technology and business 

model uses the unlicensed spectrum ranging from 2.4 to 

5.9 GHz and 90 MHz. The technology enables data speeds 

of up to 1.5Mbps, which is approximately 15 times faster 

than dial-up Internet speeds, to ensure that service meets 

the needs of the rural subscribers. 

The Canopy technology transmits a radio signal between fixed 

access points on radio antennae (towers and poles) strategically 

located across the province. Each subscriber receives the 

signal through a receiver box fixed to their home or office. 

If the subscriber does not have access to the national grid, 

then the receiver can be powered with a charge controller, 

batteries and a solar panel. 

9.3.2 NYnet Rural Broadband, North Yorkshire, UK 

NYnet is a public and private sector commercial venture, 

providing a communications network for the delivery of highspeed 

broadband services to the rural region’s citizens. North 

Yorkshire County Council partnered with Yorkshire Forward, 

the Government Office of Yorkshire and Humber and BT 

to deliver, monitor and maintain the network. 

Once seen as unprofitable, NYnet has created a backhaul 

infrastructure to 12 points of presence in North Yorkshire 

using aggregated public sector demand, but small businesses 

and residents are also reaping the benefits of the ADSL 

services. In fact, the broadband take-up rate of the region 

is higher than the national average. NYnet will price this 

DWDM backhaul capacity to minimise the impact of distance, 

in hopes of stimulating the provision of advanced ‘next 

generation’ services to the public and private sector. NYnet 

represents one of Europe’s largest public sector led, open 

access, broadband infrastructure initiatives to overcome the 

issue of rural/coastal disadvantage in terms of broadband 

and connectivity. 

9.3.3 Nokia Siemens Networks Village Connection, India 

Nokia Siemens Networks Village Connection avails voice and 

Internet connectivity to rural communities where traditional 

GSM network roll-out and operation has been seen as too 

costly. Using an IP-based network structure and innovative 

business model, the solution essentially reduces operators’ 

expenditure, making previously unattractive markets potentially 

profitable. Coverage is established through compact local 

GSM Access Points, located in both villages and regional 

access centres. These access points are based on costeffective 

infrastructure, aggregating radio frequency, power 

and standard PC with Access Point software. Furthermore, 

the access points typically house an antenna on the roof of 

the building, eliminating the need for costly towers. 

The project presents an innovative business model which 

ultimately reduces operators’ costs, increasing incentive for 

expansion and interconnection. One option has a local 

entrepreneur who runs and manages the Access Points and 

interconnects with the operator for external connectivity. 

Alternatively, the operator can own the Access Point, which 

the local entrepreneur operates and manages for a salary. 

These village connections, while increasing the availability 

of communication options for rural populations, also decrease 

the costs of such tools for the end-user. 

9.3.4 Village Phone Uganda 

MTN Uganda and the Grameen Foundation joined forces in 

2003 to establish the Village Phone programme in Uganda. 

The programme is modelled after the successful and pioneering 

Grameen Phone initiative in Bangladesh. Essentially, the 

project facilitates the purchase of specialized mobile phones 

by rural entrepreneurs who then act as village phone operators 

(VPOs), providing affordable telecommunication access to 

rural dwellers in areas where little or no telecommunication 

infrastructure exists. The Grameen Foundation acts as a 

facilitator between the telecom sector and microfinance 

sector, as all VPOs purchase the handsets with microfinance 

loans. The VPOs charge on a per-call basis and make enough 

money to repay their loans and earn profit. 

The Village Phone is now recognized as a strong business 

model for connecting rural communities as the majority of 

VPOs successfully repay their loans and make profits. It is 

also acknowledged as a sustainable development tool by 

numerous governments and development agencies such as 

the World Bank, the United Nations, the International Finance 

Corporation and USAID. In Uganda, the initial goal was set 

at 5,000 new mobile businesses in five years; however, MTN 

has surpassed this goal in just three years by setting up over 

6,700 new businesses, representing a growth rate of over 

150 businesses per month. 

9 

81

9 

9.3.5 Vodacom Community Services Phone Shops, South 

Africa 

Vodacom Community Services Phone Shops provide 

telecommunications services to disadvantaged communities 

at regulated prices well below market rates. The services 

were initially subsidised by the service provider, but now the 

phone shops are self-sustaining. The business model 

emphasises the role of local entrepreneurs from disadvantaged 

communities in establishing the phone shop franchises at a 

start-up cost of about R 26,000 to operate five cellular lines 

within converted shipping containers. Vodacom also invests 

about R 30,000 per franchise to transform the shipping 

container into a phone shop. The phone shop products and 

services are simple, consistent and affordable. Phone calls 

are priced at a set rate of R.85 (US$.11) per minute, 

representing a two-thirds discount. Fax and Internet services 

are also increasingly being offered. Vodacom trains the 

entrepreneurs in management skills and offers business 

insight at the start of operations. 

9.3.6 Ghana eCare 

eCare provides telecommunications services in peri-urban 

and rural areas through local entrepreneur owned and operated 

ICT centres, offering telecommunications and solar power 

services. The entrepreneurs are recruited, interviewed and 

required to complete eCare training in Accra. Successful 

candidates are then offered the chance to apply for a loan 

that covers 90 percent of the cost of purchasing the prepackaged 

centre, which will be delivered to the village by 

truck in the shape of a modified cargo container complete 

with doors, windows, phone booths, and desk. The centre is 

equipped with three fixed cellular terminal phones, a solar 

panel system, a computer and printer. The site must have 

Ghana Telecom GSM coverage or Ghana Telecom Wireless 

Local Loop coverage, but do not require access to the power 

grid as the centres run on solar power. The strict selection 

of entrepreneurs, favourable loan scheme, and resultant local 

ownership all support the financial sustainability of the 

project. As well, the ability to draw on cost-effective and 

appropriate technologies, such as solar power, has connected 

underserved rural communities. 

Currently, 69 centres are successfully in operation in all 

10 regions of Ghana and benefiting over 500,000 people in 

various communities. By the end of 2008, eCare expects to 

have at least 200 centres offering renewable energy and 

telecom services to over a million Ghanaians. The project is 

implemented by a partnership between the United Nations 

Foundation, Ghana Telecom, United Nations Environment 

Programme, and Kumasi Institute of Technology and 

Environment. 

9.3.7 Ericsson Gramjyoti Rural Broadband Project, India 

In September 2007, Ericsson launched the Gramjyoti Rural 

Broadband Project. This initiative leverages the benefits of 

WCDMA/HSPA technology in rural India, connecting ICT-poor 

communities to high-speed services. It is the first 

HSPA-powered rural broadband demo network in India and 

delivers the benefits of 3G to 18 villages and 15 towns in 

Tamil Nadu. 

Over 3,000 high school students within the communities are 

benefiting from high-speed internet, take e-learning courses 

and gain access to bandwidth intensive learning materials. 

The high-speed connection allows students to learn through 

distance education, with teachers based in Delhi. 

82 



Villagers can also visit citizen centres where they can log into 

high-speed internet connections and benefit from relevant 

information such as the latest selling rates of agricultural 

produce. Live interactive medical check-ups via telemedicine, 

e-governance services, online and local information, voice 

and video call services as well as live TV and entertainment 

have also been introduced to the villages for the first time. 

The project is financially sustainable within the medium- to 

long-term, based on strong partnerships with bodies such as 

the Apollo Hospitals, Hand In Hand, Edurite, One97, CNN 

and the Cartoon Network. The Apollo Hospitals provides 

support by providing free health checkups from the citizen 

centres three times a week. Edurite Technologies supports 

the e-learning services, One97 Communications provides the 

technology infrastructure for the project, and CNN and the 

Cartoon Network collaborate with Ericsson to provide 

infotainment services. Ericsson is also making use of citizen 

centres which belong to Hand In Hand, a socially oriented 

NGO that advocates for poverty reduction and education. 

The partnerships also ensure that the content that is provided 

is relevant to the population, which will contribute to the 

overall sustainability of the project. 

9.3.8 Cyber Coaches and Caravans, Malaysia and 

Mauritius 

The Mobile Internet Unit (MIU), or Cyber Coach, in Malaysia, 

is bringing ICT literacy training programmes to students, 

teachers and parents in rural schools, while simultaneously 

collecting data to help develop national ICT policies. 

The MIU is a self-contained mobile vehicle equipped with 

multimedia cyber learning material, including books, 

courseware, software, ICT peripherals, audio-visual aids, 

evaluation packs and library service. It is designed to handle 

rough terrain in rural areas and has its own electrical generators. 

Each year the MIU travels to 20 schools and aims to instruct 

a total of 2,800 students and teachers in basic Internet and 

computing skills, including webpage development. If there 

is no Internet connectivity, the MIU demonstrates the 

usefulness of the Internet using cached Internet sites. Each 

day, the MIU aims to train 140 people in basic ICT literacy 

as well as participate in ICT awareness campaigns and special 

events. Its goal is to leave each school with at least one PC 

and a fixed connection to the Internet. The initiative is 

possible due to collaboration and adoption of the 

“smart-partnership” model by three main sectors in Malaysia: 

the government organizations (MOE and State Library), private 

sector/NGOs (UNDP/APDIP, NITC, MIMOS BERHAD 

& ACM/HICOM) and the various communities. 

Mauritius has employed a similar model to implement its 

Cyber Caravan. The project is implemented by the National 

Computer Board (NCB) and is increasing ICT competency, 

especially in common computer applications, and educating 

citizens on the benefits of using computers. There are two 

operational cyber caravans, equipped with 9 and 10 PCs 

respectively, a LAN network and a broadband connection, 

that travel to remote areas where access to ICTs is not 

affordable. Courses cover a range of subjects, from 

understanding how to use basic computer functions, to 

learning how to enter and manage data and formulae, perform 

calculations, use the Internet and e-services, and become 

aware of various types of viruses. Since the start of the project, 

in 2000, over 70,325 have completed the ICT literacy, 

ICT Awareness and IC3 courses. The project targets students 

in primary and secondary schools, women centres, and 

unemployed, disabled or senior citizens in social welfare 

centres, regardless of age, education background or profession.



9.3.9 Vodacom and the Tanzania Agricultural Marketing 

Systems Development Programme 

The Agricultural Marketing Systems Development Programme 

(AMSDP), implemented by the Ministry of Industry, Trade 

and Marketing provides agricultural marketing support to 

rural farmers and traders in eight mainland regions of Tanzania, 

which, despite high crop yields, face serious marketing 

challenges. The implementation of AMSDP is done through 

five components: agricultural marketing policy development; 

producer empowerment and market linkages; financial market 

support services; rural marketing infrastructure; and programme 

organisation and coordination. One of the innovative ways in 

which market information is conveyed, through a 

subcomponent of the project, in partnership with Vodacom, 

is the mobile phone. Three times a week field officers collect 

agricultural information for the Ministry, which is then passed 

on to Vodacom to be entered into the server. The system 

allows for farmers and traders to demand the latest prices 

for cash crops via text and receive the latest information on 

their mobile phone. The aim of this system is to enhance 

accessibility of market prices for farmers, enabling them to 

more effectively negotiate in their produce market. 

9.3.10 Mobile Banking / M-PESA Model, Kenya 

M-PESA is a mobile phone money transfer scheme, jointly 

operated by Safaricom and Vodafone, which allows subscribers 

to send cash to other mobile phone users by SMS without 

any need for a new handset or SIM card. It is, unsurprisingly, 

a highly demanded service among urban Kenyans supporting 

relatives in rural areas who often do not have access to any 

other bank or financial institution. The service has attracted 

more than 1.6 million subscribers and transferred over 

US$148 million via SMS in just its first year of operation. 

M-PESA is also an affordable service, costing an average of 

US$1 to send and/or receive money, therefore proving a major 

source of competition for other more traditional money transfer 

agencies. The service is also faster and more secure than 

other means of money transfer. 

9.4 The Way Forward 

It is now an opportune time to develop the public private 

peoples partnerships that will adapt and replicate these and 

other such proven, sustainable and effective best-practice 

pilot projects for rural connectivity. These initiatives should 

be implemented in the context of national strategic programmes 

for rural connectivity in order to ensure that the full potential 

of ICTs are brought about to increase welfare and economic 

activities within the region and to alleviate poverty as part 

of the Millennium Development Goals. Policymakers and 

regulators must remain committed to ensure universal access 

through network extensions to serving poor and marginalised 

communities and to facilitate greater use of ICTs for 

development through capacity development and basic training. 

The International community, especially donor agencies, must 

support connectivity to ICTs in rural and remote communities 

to bring about fundamental development and transformation 

of these communities by improving their basic livelihood 

through e-education, e-health, e-governance, e-commerce, 

etc. Connecting those two thirds of the African population 

living in rural and remote communities to ICTs will enable 

greater and faster access to knowledge and help to accelerate 

Africa’s development in achieving its targets towards the 

Millennium Development Goals in Africa. Through adoption 

of PPPPs and shared responsibility, Governments, private 

sector and development partners can bridge the digital divide 

and accelerate rural connectivity to Africa’s unconnected. 

9 

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99

Annex I. Rural Connectivity in Commonwealth Africa: Comparator Country Profiles 

100 

a1 

AustraliaProfile 

Ministry responsible for telecommunications 

Department of Broadband, 

Communications and the Digital Economy 

Minister: Senator Stephen Conroy 

Address: Department of Broadband, 

Communications and the Digital Economy 

GPO Box 2154, CANBERRA ACT 2601, Australia 

Telecommunications Regulatory Body 

Australian Communications and Media Authority 

Address: Australian Communications 

and Media Authority 

Radiocommunications Liaison Section 

P.O. Box 78, BELCONNEN ACT 2616, Australia 

Contact Details 



Contact Person: Dr Jason Ashurst 

Director, ITU & Treaties Section 

Telephone: + 61 2 6271 1928 

Fax: + 61 2 6271 1901 

E-mail: jason.ashurst@dbcde.gov.au 

Website: www.dbcde.gov.au 

Contact Person: Mr Neil Meaney 

Manager 

Telephone: +61 2 6219 5198 

+61 3 9963 6893 

E-mail: neil.meaney@acma.gov.au 

Website: www.acma.gov.au 

Source: ITU Global View



Description of the Telecommunications Market 

The Fixed-Line Telecommunications Market 

There are approximately 170 competing telecommunications 

service providers offering fixed-line services and an additional 

170 offering voice services over IP. According to the Regional 

Telecommunications Inquiry, there is strong service-based 

competition 1 throughout Australia. However, the incumbent 

fixed-line operator, Telstra, owns nearly all the country’s 

copper network and therefore dominates the wholesale market 

with 70 percent market share. The second largest telecommunications 

operator, Singtel Optus (Pty) Ltd., is the 

second national operator (SNO) and Telstra’s biggest competitor. 

Several operators, such as AAPT and Primus, offer local 

access and competing call services throughout the country, 

and there are also several regional providers, such as Kooee 

(northern NSW), Agile (South Australia), Neighborhood Cable 

(Victoria) and TransACT (ACT and NSW). 

Telstra 

Telstra was partially privatised in 1997 and fully privatised 

in 2006. It has faced competition since the late 1980s from 

Optus and a host of other smaller providers. It retains ownership 

of the country’s fixed-line telephone network, as well as one 

of two competing pay-TV and data cable networks, and its 

subsidiary Telstra Mobile owns and operates 3G and GSM 

networks. Optus and Transact have installed some of their 

own fixed-line infrastructure, but all operators depend on 

Telstra infrastructure to deliver services. 

Singtel Optus 

The Government of Australia first introduced competition into 

the fixed-line telecommunications market with the 1991 

Telecommunications Act, which allowed Optus to compete 

with Telstra for a duopoly period from 1992 to 1997. 

SingTel Optus (Pty) Ltd. is now a wholly owned subsidiary of 

Singapore Telecommunications and, in turn, operates 

several wholly owned subsidiary brands, such as Virgin Mobile 

Australia, Boost Mobile, Uecomm and Alphawest. 

Optus owns and operates its own network infrastructure, as 

well as purchasing services from Telstra Wholesale. In turn, 

Optus also acts as a wholesaler to other smaller service 

providers. Through its OptusNet brand, it provides broadband, 

wireless and dial-up Internet services. 

The Mobile Telecommunications Market 

There are four mobile carriers operating seven mobile networks. 

j Telstra Mobile operates 3G and GSM networks 

(shut off CDM network April 2008) 

j Optus operates a GSM network 

j Three operates a 3G network 

j Vodafone operates a GSM network 

j Optus and Vodafone share infrastructure and jointly 

operate a 3G network 

1 Connecting Regional Australia, The Report of the Regional Telecommunications 

Inquiry, 2002 

In June 2006, there were 19.8 million subscribers in Australia, 

representing a 96.5 percent population penetration. 

Table A.1: Operators’ Technology, Subscriber Base and 

Ownership Structure 

Rank by Operator Technology Subscribers Ownership 

Market (in millions) 

Share 

1. Telstra GSM, UMTS, 9.30 Telstra 

MobileCDMA, HSDPA (Sept07) 

2. Optus GSM, UMTS, 6.56 (Jun06) Singapore 

Mobile HSDPA Telecom 

-munications 

3. VodafoneGSM, UMTS, 

HSDPA 

3.144 (Jun06) Vodafone 

4. 3 UMTS, HSDPA 1.131 (Jun06) Hutchison 

Whampoa 

5. Virgin GSM, UMTS, 0.521(Aug06) Optus Mobile 

MobileHSDPA 

6. Savvytel GSM 0.040 (Jun07) Savvy Direct, 

buys 

Vodafone 

airtime 

Source: 

http://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_the_ 

Asia_Pacific_ region#Australia 

Telstra Mobile 

Telstra Mobile is Australia's largest mobile provider, in terms 

of both subscriber numbers and geographic coverage. 

It launched its Next G network in 2006, intended to replace 

the CDMA network, advertising coverage to 98 percent of the 

population and covering 1.9 million square kilometres. 

Optus Mobile 

Optus Mobile launched its 3G network with Vodafone in 

2005. The joint network is limited mostly to metropolitan 

areas, but in 2007, Optus announced plans to build its own 

new 3G mobile network to extend coverage into rural areas, 

replicating its existing 2G coverage to 96 percent of the 

Australian population by the end of 2008. Optus has also 

stated that it is investigating the use of 3G in the 900 MHz 

frequency range for use in smaller regional centres, rural and 

remote areas. 

The Internet Service Providers (ISPs) Market 

There are five ISPs in Australia that provide Cable Internet 

(Telstra BigPond, OptusNet, Neighborhood Cable, TransACT 

and e-Wire). 

According to the 2002 Telecommunications Service Inquiry 

(TSI), “generally Australians are well provided for in terms 

of choice of ISPs. There is sufficient competition among 

ISPs to ensure that customers can choose the ISP that best 

meets their needs.” Since the TSI, competition has led to 

a decrease in the number of ISPs, but there are still 571 in 

operation. 

101

That said, the top seven ISPs (iPrimus, Telstra BigPond, 

OzEmail, Optus Net, AOL Australia, TPG and Austar Net) 

account for approximately 70 percent of the total users 

served. The majority of these provide local call access, either 

through a local Point of Presence (POP) or through the 

provision of a national local number, for the price of a local 

call. All Australians can now access at least one ISP for the 

cost of an untimed local call, and at equitable ISP charges. 

As in the fixed-line telecommunications market, Telstra 

Wholesale is the incumbent and dominant wholesaler of 

ADSL related services to other ISPs. Telstra BigPond provides 

broadband Internet access via ADSL, HFC cable, fibre, 

satellite, and wireless access through its EV-DO and 

Next G networks. At the end of the 2007 financial year 

BigPond had over two million broadband subscribers. 

As in the mobile market, the existing customer base of 

Bigpond Wireless is being migrated to the Next G network, 

with higher speeds and reported greater coverage. 

Policy Supporting Rural Connectivity 

The Telecommunications Action Plan for Remote and 

Indigenous Communities (TAPRIC), established in 2002, is 

the Government of Australia’s main policy document outlining 

objectives and strategies for the development of the ICT 

sector in Remote Indigenous Communities (RICs). 

The full policy document can be downloaded from: 

http://archive.dcita.gov.au/2007/11/tapric_report_and_othe 

r_government_reports_on_indigenous_communications 

Legislation Supporting Rural Connectivity 

Australia has a number of government agencies involved in 

promoting ICTs, whose policies may impact on rural access 

to telecommunications and ICTs. The Australian Government 

Information Management Office (AGIMO) of the Department 

of Finance and Deregulation (www.agimo.gov.au) is responsible 

for developing and implementing Australia’s 2006 

e-Government Strategy, Responsive Government: A New 

Service Agenda. The Secretaries' Committee on ICT (SCICT), 

established in June 2006, is a strategic decision-making 

committee for whole-of-government ICT use by the Australian 

Government. The SCICT implements the e-Government 

strategy, to improve efficiency in the Government's use and 

investment in ICT, and to use ICT to reduce 'red tape' or 

duplication in government, for citizens and business. 

Following are the acts of telecommunications legislation 

affecting rural connectivity: 

j Australian Communications & Media Authority Act 2005 

Merged the Australian Communications Authority (ACA) 

and the Australian Broadcasting Authority (ABA) in order 

to allow for more efficient and uniform regulation, including 

for rural connectivity. 

j Telecommunications (Consumer Protection and Service 

Standards) Act 1999 

Establishes the Universal Service Regime to ensure that 

all people have access to standard telephone services, 

payphones and other services, including digital data 

services. 

102 



j Telecommunications Act 1997 

Provides a regulatory framework to promote long-term 

interests of telecommunications users and to ensure that 

standard telephone services, payphones and other services 

are reasonably accessible to all people on an equitable 

basis and are supplied efficiently and economically at 

acceptable performance standards. 

It also provides a framework for the provision of digital data 

services with capability comparable to ISDN to be available 

to all people by the start of 2000. 

The Act permits the ACMA to cancel a licence if the service 

provider fails to pay its universal service levy. 

j Telecommunications (Universal Service Levy) Act 1997 

Imposes a levy to ensure that standard telephone services, 

payphones and prescribed carriage services are reasonably 

accessible to all people in Australia. 

Regulation Supporting Rural Connectivity 

The Australian Communications and Media Authority (ACMA) 

is the independent regulator for broadcasting, 

the Internet, radiocommunications and telecommunications. 

Regulation on Voice over Internet Protocol (VoIP) 

Most VoIP services are considered standard telephone services 

and, therefore, invite a number of regulatory obligations, 

such as emergency services, provision of calling line 

identification (CLI), the Customer Service Guarantee (CSG) 

and membership of the Telecommunications Industry 

Ombudsmen (TIO) scheme. However, according to the 2005 

Examination of Policy and Regulation relating to VoIP Services, 

new VoIP services are entering the market and the cost of 

entry for new VoIP service providers is relatively low. 

The Examination also finds that the low cost and high 

functionality of VoIP services have introduced new opportunities 

for competition. It reports no negative effects on competition, 

as take-up of the technology has been relatively low so far, 

and it is expected to have a small positive effect as application 

service providers and ISPs begin offering voice services in 

competition with the larger providers. 2 

The Universal Service Obligation (USO) 

The Universal Service Obligation (USO) regime is a legislated 

obligation that all people in Australia will have reasonable 

access on an equitable basis to defined communications 

services (telephones, payphones and data). The USO is funded 

through a levy on all telecommunications carriers. 

The ACMA is responsible for the following: 

j monitoring the delivery of the USO, which currently 

involves the supply of standard telephone and payphone 

services; 

j approving the SMP and policy statement of a universal 

service provider; 

j providing advice to the Minister on USO subsidy levels 

and administering the USO levy arrangements. 

2 The impact will probably be less than in countries like the United States, 

where VoIP strategies are a leading aspect of vigorous competition between 

established cable television companies and telecommunications carriers.



In 2001, Telstra won the Extended Zones 3 tender for AU$150 

million to provide untimed local calls in remote Australia and 

is therefore the exclusive Universal Service Provider (USP) 

for three years. The USP is required to have a Standard 

Marketing Plan (SMP) in place that details how it will 

comply with the USO, as well as a general policy statement 

about how equipment, goods or services will be supplied. 

Telstra’s SMP details its plan for delivery of payphone services 

to RICs. Payphones are provided to RICs with a permanent 

population of more than 20 adult residents, or 50 people in 

total. Targeted programs such as the Community Phones 

Program have been particularly successful in delivering 

appropriate services to RICs. However, the ACMA suggests 

that the delivery of services may be more effective if 

disassociated from the current SMP managed as part of a 

separate targeted program. 4 

Telstra’s Telecommunications Remote Indigenous Communities 

(TRIC) 2006 database reports the following: 

j 53 percent have access to at least one payphone 

j 14 percent have access to at least one community phone 

(under the government-funded community phones program) 

j 58 percent have access to at least one Standard Telephone 

Service (STS) and, 

j 27 percent have terrestrial mobile coverage 

The Regional Telecommunications Inquiry finds that key 

carriers are dissatisfied with the current USO regime and its 

implications for competition. Optus emphasises the 

detrimental effect on competition of a USO regime that 

requires competitive service providers to fund Telstra’s 

exclusive services in rural Australia. However, the Inquiry is 

doubtful of the development of facilities-based competition 

in rural and remote regions. 

The National Communications Fund (NCF) 

The National Communications Fund (NCF) is not directly 

associated with the USO, but supports significant 

communications projects in the education and health sector 

in regional, rural and remote Australia, and states the following 

key strategic aims: 

j The improvement of service delivery (education, health 

and telecommunications) in regional Australia 

j To promote partnerships and collaboration within and 

across sectors 

j To leverage additional resources from these sectors, from 

the telecommunications industry and from other tiers of 

Government; and 

j To stimulate the broader provision of high bandwidth 

services to regional, rural and remote communities 

The NCF received 59 applications for funding; each project 

is required to have a minimum value of AU$3 million. 

Applicants were required to submit a financial plan, 

management strategy and project plan to demonstrate ongoing 

sustainability, potential community benefits and a systematic 

approach to project implementation. The selected eight 

projects will undergo quarterly and annual evaluation, as well 

as a final report, to assist in future project planning. 

3 There are 102 extended zones, which are located in the most sparsely populated 

areas of Australia and comprise nearly 80 percent of Australia's landmass. 

Following are eight projects selected for funding: 

1 Network Western Australia [AU$8 million] aims to 

improve education and health services in regional Western 

Australia by upgrading telecommunications infrastructure 

and increasing bandwidth. 

2 The Grampians Rural Health Alliance Network (Victoria) 

[AU$8 million] 12 regional health services, 48 additional 

primary care agencies and the regional licensed carrier 

OmniConnect will provide high speed and high capacity 

communications services to healthcare agencies in at 

least 40 rural and remote towns in the Grampians area, 

a region with a population of about 210 000. 

3 Health and Education Information Access for Rural and 

Regional New South Wales [AU$8 million] will build 

‘last mile’ infrastructure to up to 60 regional and rural 

education and health facilities to support the rollout of 

new tele-education and telehealth services. 

4 Northwest and New England BroadbandTelecommunications 

Network (NSW) [AU$5.5 million]. 

The project will install a broadband telecommunications 

network connecting 33 major health and tertiary 

education sites in 23 towns, delivering improved telehealth 

and education services. 

5 New South Wales and Northern Territory Interactive 

eLearning [AU$8 million] will establish a shared broadband 

Interactive Distance Learning communications 

infrastructure for small rural communities and isolated 

homesteads in areas of New South Wales and the 

Northern Territory. This infrastructure will deliver education 

services to School-of-the-Air and Distance Education 

students, isolated indigenous communities, Technical 

and Further Education outreach students and adults 

seeking vocational education. Services will be 

delivered to about 3700 users in 547 sites, including 

239 small, isolated schools. 

6 Outbacknet@qld [AU$8 million] will install infrastructure 

to provide education and health services to 70 rural and 

remote towns, including indigenous communities in south 

western and western Queensland. The new infrastructure 

will provide affordable and flexible broadband services to 

the targeted communities and direct competition in ‘last 

mile’ services. The project will benefit 30 hospitals and 

seven community health centres, 81 rural and remote 

schools in 66 towns, 11 technical and further education 

(TAFE) campuses, and two Skill Centre campuses will 

also be addressed. 

7 Regional Network Delivering Education Services (SA) 

[AU$6 million] aims to install a broadband IP-based 

network connecting 262 sites and linking up to 31 000 

students and educators within the South Australian 

Department of Education and Children's Services 

and within TAFE. 

8 Broadband for Regional Tasmania Project [AU$3 million] 

focuses on improving the provision of education 

and health services to regional and rural locations in 

Tasmania through an increase in the quantity, quality and 

affordability of the local telecommunications infrastructure. 

4 Australian Communication and Media Authority (ACMCA) Submission to 

Telecommunications Universal Service Obligation review, 

December 2007 

103

Telecommunications Operators’ Approach 

to Rural Connectivity 

Telstra’s Approach 

As discussed earlier, Telstra is the USP and is responsible 

for the implementation of the USO. A collaborative effort 

between the Government of Australia and Telstra is underway, 

in an effort to improve the delivery of payphone services in 

RICs. Telstra is promoting the use of the prepaid home phone 

product, communic8, to better enable management of 

telecommunications costs within communities. Vandalism 

is also an issue in some RICs, but strategies of community 

ownership, such as decoration by local indigenous artists, 

have been effective. The Inquiry recommends employing 

specialised call centre staff who speak indigenous languages 

and are aware of indigenous cultural issues to improve quality 

of service. 

Optus’ Approach 

Optus requested a government strategy to encourage greater 

infrastructure sharing in less viable rural markets, in order 

to reduce costs and encourage competition. In response, the 

Inquiry found that the legislative and regulative frameworks 

support mobile network infrastructure sharing. For example, 

the 1999 Facilities Access Code obliges all existing facilities 

owners to negotiate shared access upon request. 

Technology, Infrastructure and Rural Connectivity 

Telstra operates an expansive copper network, while Optus 

operates a hybrid. The various wireless networks are detailed 

above in Table A.1. Telstra is also using its CDMA technology 

on a trial basis to provide Wireless Local Loop (WLL) 

fixed-line services in remote areas. 

There are also multiple VSAT networks, two of which are 

operated by NewSat and Digital Skies. NewSat, a regional 

broadband service provider, covers all of Australia and has 

the potential to reach 60 percent of the world’s population 

from its ViaSat LinksStar hub in Newcastle. Since 2003, 

NewSat has been working together with ViaSat and IP Access 

International to provide high-speed, two-way satellite broadband 

services. Digital Skies offers Australia coverage using 

its own iDirect VSAT hub and via the NSS-6 satellite. 

Australian Satellite Services has designed and installed a 

VSAT Network linking sites in Australia, East Timor and the 

Timor Sea via C Band PanAmSat 8 satellite, to provide a fully 

meshed voice and data network. 

Penetration and Reliability of Electricity 

Connection to a major electricity grid is not a viable option 

in many parts of regional Australia. The Australian Government 

and industries undertook solar and wind power demonstration 

projects, introduced hybrid renewable technologies to remote 

areas, and implemented electricity market reform in order to 

facilitate the adoption of new renewable energy technologies 

by rural communities. The initiatives have led to the supply 

of renewable-energy power supply systems to 8,000 remote 

households, whilst the telecommunications industry has 

successfully provided 10,000 remote households with 

a solar powered, microwave-based telephone system. 

104 



Human Capacity Building for Rural Connectivity 

The National ICT Australia (NICTA) was established in 2002 

to operate a world-class ICT research and research-training 

institute in order to develop innovative technologies, grow 

ICT businesses and spur the wider development of Australian 

industries. It conducts research, provides research training, 

commercialises research and collaborates with private sector 

research organisations, major companies, small- to mediumscale 

enterprises (SMEs) and public sector agencies. 

Current Pilot Projects and ICT Initiatives for Rural 

Connectivity 

In no particular order, the following government initiatives 

aim to increase connectivity through a wide range of 

technologies, in rural and regional areas or in RICs in particular. 

Backing Indigenous Ability 

Backing Indigenous Ability (BIA) is part of the Connect 

Australia Programme and is an AU$89.9 million initiative to 

improve communications services in RICs. Following are BIA’s 

three components: 

j BIA telecommunications programme (AU$36.6 million 

to address the need for telephones, Internet and 

videoconferencing, training and skills development and 

the development of indigenous online content) 

j National Indigenous Television (NITV) programme 

(AU$50.0 million); and, Indigenous Remote Radio 

Replacement (IRRR) programme (AU$3.3 million) 

The successful applicants under Round 1 of the BIA 

telecommunications program were announced in 2007. 

The complete list is available at: 

http://www.dbcde.gov.au/communications_for_consumers/f 

unding_programs__and__support/backing_indigenous_abili 

ty/backing_indigenous_ability_telecommunications_progra 

m__summary_of_round_1_successful_applicants 

The Regional Mobile Phone Programme 

The Regional Mobile Phone Programme will provide the 

following funding: 

j AU$20.4 million to Telstra for improved mobile phone 

coverage to 55 towns with a population of less than 500 

j AU$20.4 million to Telstra for provision of mobile phone 

coverage to 62 sites on 34 regional highways 

j AU$2.1 million for the Satellite Phone Subsidy Programme 

discussed below and, 

j AU$7.0 million towards the WirelessWest project to 

improve mobile phone services in the south-west of 

Western Australia



The Satellite Phone Subsidy Scheme 

The Satellite Phone Subsidy Scheme is an Australian 

Government initiative to issue a one-off subsidy (up to 

AU$1100) for the purchase of a satellite mobile phone for 

people living or working outside CDMA, 3G, GSM or terrestrial 

mobile coverage. 

The Australian Broadband Guarantee 

The Australian Broadband Guarantee is a targeted Government 

program aimed at providing universal access to high-quality 

broadband service across Australia. The Australian Broadband 

Guarantee follows the success of the Broadband Connect 

Programme and will fill in the remaining gaps in broadband 

service delivery, whether in urban or rural Australia. 

Any Australian who is unable to access a metro-comparable 

broadband service (a minimum 512/128kbps data speed, 

1GB per month data usage) at a total cost over three years 

of AU$2,500, including installation and connection fees, at 

their principal place of residence or small business, will be 

eligible to receive a subsidised service under the Australian 

Broadband Guarantee. 

The Clever Networks Programme 

The Clever Networks Programme aims to deliver broadband 

services to communities in regional, rural and remote Australia 

through two delivery mechanisms. The Innovative Services 

Delivery element co-funds projects in support of the improved 

delivery of government services, such as virtual healthcare, 

interactive distance education and emergency services. 

The Broadband Development element established a network 

of 25 individuals across Australia to assist regional 

communities to improve their broadband skills and capabilities, 

enhance business practices and aggregate demand for services 

in underserved communities. 

IT Training and Technical Support Program 

The IT Training and Technical Support Programme was 

established in 2004 to provide AU$8.8 million for the 

provision of basic IT training and technical support in very 

remote areas of Australia. So far, nine projects have received 

between AU$350,000 and AU$2,900,000 to fund activities. 

Networking the Nation (NTN) Programme 

The Networking the Nation (NTN) Programme has allocated 

AU$40.5 million since 1997, through competitive processes, 

to fund 222 mobile base stations and 55 repeaters across 

regional, rural and remote Australia. 

As a community-driven programme, projects are either directly 

initiated by communities or undertaken by State or local 

government bodies in consultation with local communities. 

Originally an AU$250 million fund to be distributed over five 

years, the government contributed an additional AU$171 

million in 1999 to fund initiatives including the following: 

j the Local Government Fund to assist local government 

authorities to provide online access to information and 

services including the Internet 

j building additional rural networks 

j the Internet Access Fund to stimulate Internet service 

delivery in regional and rural Australia and, 

j the Remote and Isolated Islands Fund to improve 

telecommunications access for remote island communities 

A total of 696 projects worth AU$325 million have been 

funded through Networking the Nation. Of these projects, 

60 (worth AU$35.1 million) offer an exclusive or significant 

benefit to indigenous communities. 

Untimed Local Calls (Extended Zones) Agreement 

In 2001, the Australian Government allocated AU$150 

million to Telstra via a competitive tender for upgraded 

infrastructure and service improvements, benefiting about 

28,000 customers in Telstra’s “extended zones,” where most 

RICs are located. The initiative capped the maximum charge 

of untimed calls between extended zones at AU$0.22 and 

ensures either untimed dial-up local call access to at least 

one ISP or access to Telstra’s BigPond Broadband 2-way 

Satellite Internet service. 

105


106 

a2 

CanadaProfile 


Industry Canada 

Address: Ottawa, Ontario 


Canadian Radio-television 

and Telecommunications Commission 

Address: 1 Promenade du Portage, 

Gatineau Quebec 




Contact Person: Mr. Richard Simpson 

Director General 

Telephone: +1 613 990 4292 

Fax: +1 613 941 1164 

E-mail: simpson.richard@ic.gc.ca 

Website: www.ic.gc.ca 

Contact Person: Mr David Bell 

Director 

Telephone: +819 997 0313 

E-mail: david.bell@crtc.gc.ca 

Website: www.crtc.gc.ca 





Both the fixed-line and mobile telecommunications sectors 

are liberalised, although the liberalisation process was not 

completed until 2000. Some de jure monopolies still exist 


There are five incumbent operators, namely Bell Aliant 

Regional Communications, Limited Partnership (Bell Aliant), 

Bell Canada, MTS Allstream Inc. (MTS Allstream), 

Saskatchewan Telecommunications (SaskTel) and TELUS 

Communications Company (TCC). Each of these former 

monopoly service providers controlled different provinces, as 

was the case in the United States before the break-up of 

AT&T. In addition, there are 43 independent telephone 

companies that provide local services to rural areas. 

There are four national mobile operators, as well as numerous 

local wireless companies. 

Policy Supporting Rural Connectivity - Connecting 

Canadians, 1997 


Canadian Radio-television and Telecommunications 

Commission Act 1976 –established the Canadian Radiotelevision 

and Telecommunications Commission (CRTC) with 

regulatory responsibilities over the broadcasting and 

telecommunications sectors. 

j Bell Canada Act 1987 

Mandates the prompt provision of telephone service to 

any person who requests it, unless “the premises for 

which the service is requested are not fronting on a 

highway, street, lane or other area along, over, under or 

on which the Company has a main or branch 

telephone service or system; or the telephone on the 

premises would be situated more than 62 metres or such 

other distance as the Commission may specify from the 

highway, street, lane or other area.” 

It establishes a framework for the regulation of the 



j Broadcasting Act 1991 

Promotes the extension of broadcasting services in both 






Obliges the CRTC to regulate the broadcasting sector in 

a manner that is readily adaptable to scientific and 



of services. 

Provides regulatory framework to ensure reliable services, 

protect privacy, and protect and encourage Canadian 

media. 


Establishes a framework for the regulation of the 



Promotes the extension of broadcasting services in both 






Obliges the CRTC to regulate the broadcasting sector in 

a manner that is readily adaptable to scientific and 



of services. 


The Canadian Radio-television and Communications 

Commission (CRTC) is the independent regulatory authority 

in charge of both broadcasting and telecommunications. 

Its powers are defined in the Broadcasting Act of 1991 and 

the Telecommunications Act of 1993. The CRTC regulates 

over 2000 broadcasters, including television, cable distribution, 

AM and FM radio, pay and specialty television, direct-tohome 

satellite systems, multipoint distribution systems, 

subscription television and pay audio. It also regulates over 

80 telecommunications carriers including the major operators. 

The 2002 Organisation for Economic Co-operation and 

Development (OECD) report on regulatory reform in Canada 

finds that Canada’s telecommunications sector leads those 

in other OECD countries, and its performance is largely due 

to its transparent and participatory regulatory processes. 

For example, when drafting regulations, the CRTC holds 

public hearings, round-table discussions and informal forums 

to get input from the public. The CRTC Interconnection 

Steering Committee provides a forum for operators to negotiate 

competition issues alongside third-party mediation. 

The CRTC has also established expedited procedures for 

dispute resolution when issues are of a factual nature or for 

urgent tariff issues. Finally, the CRTC has determined a 

range of approved prices for local services, including VoIP, 

so that service providers can easily respond to market forces 

within the range, without prior CRTC approval. 

In 2006, regulatory policy directed the CRTC to rely on market 

forces as much as possible to achieve national 

telecommunications objectives, so as to minimise regulatory 

interference with competitive market forces. 

Consequently, the CRTC opts to forebear from regulating an 

increasing number of services, as sufficient competition to 

protect users’ interest grows in an increasing number of 

markets. For example, the Telecommunications Act directs 

the regulator to depend on market forces as much as possible 

and the regulator therefore places a high priority on deregulation 

and competition in the telecommunications sector. In contrast, 

because Canada finds itself in the shadow of American 

popular entertainment, Parliament has granted the Commission 

the responsibility to leverage the social and cultural 

contributions that broadcasting can make to the Canadian 

sense of identity. Recognising that market forces alone may 

not fulfil the country’s social and cultural agenda, the 

Commission plays a more active role and issues licenses with 

obligations to share in this agenda. 

107

The Broadcasting Act requires the broadcasting sector to 

carry a significant proportion of Canadian content, and both 

programming content and industry participation must reflect 

the diversity of the population. Broadcasting services must 

be provided in both English and French and promote 

programming relevant to aboriginal cultures. The legislative 

response to the bilingual and multi-cultural nature of the 

country suggests ways in which multi-lingual and multicultural 

African countries can support their social and cultural agendas, 

as well as ensure the development and transmission of relevant 

content. 

That said, CRTC Chairman Konrad Von Finckenstein states, 

“Our two distinct regulatory regimes for telecom and 

broadcasting have served Canadians well for many years. 

But we doubt that this dual approach can remain sustainable 

for very much longer.” 5 Technological convergence means 

that Canadian telecommunications companies are already 

entering broadcasting distribution markets and cable TV 

companies are providing telephone services, while both 

provide Internet and wireless services. Convergence is making 

regulation under two distinct legislative regimes an 

anachronism, and new legislation is needed to streamline 

the broadcasting and telecommunications operations and 

regulations. Previously, the CRTC would forebear from 

regulation, unless a new market entrant would cause a 25 

percent or greater loss in market share to one of the competing 

telecommunications operators. 

Formally the Order varying Telecom Decision CRTC 2006- 

15, decision replaced the CRTC’s 25 percent market-shareloss 

criterion with one that emphasises the presence of 

competitive telecommunications service providers (TSPs). 

It also replaced the previously delineated geographic regions 

with incumbent TSP exchange boundaries. The Forbearance 

Order also modified the competitor quality of service indicators 

and eliminated the win-back rule, which determined when 

an incumbent telephone company could contact customers 

that were switching to their competitors. The Order further 

liberalised the market by removing the competitive safeguards 

for promotions, such as regulations on the permitted availability, 

timing, duration and limitations of the promotion, as well as 

the price of the service promoted. 


Connectivity 

Broadband for Rural and Northern Development Pilot 

Programme 

The Broadband for Rural and Northern Development Pilot 

Programme was created to extend access to broadband, 

recognising that improved access is particularly necessary in 

First Nations, northern and rural communities in order to 

provide health and education services and to incite economic 

opportunities. The Broadband Pilot Programme first conducted 

two rounds of business plan development funding, under 

which 154 projects representing approximately 2,285 

communities were selected to receive up to CA$ 30,000 

each to develop business plans outlining their visions for the 

application of high-capacity Internet services. In total, 

CA$4.2 million was invested in the development of business 

plans. Second, the Broadband Pilot Programme held two 

rounds of implementation funding, under which 63 projects, 

spread across 900 communities, were selected to deploy 

broadband services to their communities for a total investment 

of CA$80 million. 

For more information see 

http://broadband.gc.ca/pub/program/bbindex.html 

108 



Community Access Program (CAP) 

The Community Access Program (CAP) is a Government of 

Canada initiative, administered by Industry Canada, which 

aims to provide Canadians with affordable public access to 

the Internet and the skills they need to use it effectively. 

With the combined efforts of the federal, provincial and 

territorial governments, community groups, social agencies, 

libraries, schools, volunteer groups and the business 

community, CAP helps Canadians, wherever they live, to take 

advantage of emerging opportunities in the new global 

knowledge-based economy. 

The CAP centres provide electronic access to government 

services, encourage online learning and literacy, foster the 

development of community-based infrastructure and promote 

Canadian e-commerce. CAP is also complemented by its 

youth initiative, the Community Access Program Youth Initiative 

(CAP YI). The youth program provides employment 

opportunities to young Canadians between the ages of 

15 and 30 in various CAP sites across the country. 


http://cap.ic.gc.ca/pub/index.html?iin.lang=en 

Motorola, Seaside Communications, and Bragg 

Communications’ Nova Scotia Project 

Seaside Communications and Motorola have partnered with 

the government of Nova Scotia to connect every Nova Scotian 

with broadband Internet connectivity by the end of 2009. 

The project will be powered by Motorola’s Canopy, a broadband 

wireless technology that uses unlicensed spectrum ranging 

from 2.4 to 5.9 GHz and 900 MHz. 

First, Seaside and Bragg successfully connected a pilot area 

and then won the government contract to provide the service 

to the entire province. SeaSide is responsible for connecting 

the northern two-thirds of the province and Bragg will connect 

the southern one third. The two are sharing the CA$74.5 

million costs with the federal government and the government 

of Nova Scotia. Under the contract terms, the service providers 

can not charge rates higher than the market rates in urban 

areas. Therefore, the government’s one-time subsidy will 

alleviate the costs of infrastructure installation and make the 

project commercially viable. The Government of Nova Scotia 

will continue to monitor the project for five years, but will 

only subsidise its cost for the first two. 

The choice of technology is based on Motorola’s point-tomulti-point 

technology’s low cost and ability to be deployed 

rapidly to vast geographic areas. SeaSide’s Internet Manager, 

Todd White, explains that fixed wireless technology is the 

only commercially viable method of connecting the province’s 

low-density areas. Moreover, the technology’s use of unlicensed 

spectrum gives the service provider flexibility to move around 

interference without the microwave or WiMAX costs. 

SeaSide also foresees Motorola’s Canopy as the foundation 

technology for building its customer base and user demand. 

Once the entire province is connected, and technology 

advances over time, the service provider will migrate its fixed 

wireless solution to a fixed or wireless WiMAX solution. 

As the technological environment evolves, SeaSide will adapt 

its business model and invest in tower infrastructure. 

5 Notes for an Address to the International Institute of Communications 

Regulators Forum, London, October 20, 2007. Available at 

http://www.crtc.gc.ca/eng/NEWS/SPEECHES/2007/s071020.htm




a3 

IndiaProfile 

Ministry responsible for 

telecommunications 

Ministry of Communications and IT 

Address: Sanchar Bhavan, 

Ashoka Road, 

New Delhi 

Department responsible for 


Department of Telecommunications 

Address: Department of Telecommunications, 

Room 507, Sanchar Bhawan; 

20 Ashoka Road, 

New Delhi; 110001 


Telecom Regulatory Authority of India (TRAI) 

Address: Mahanagar Door Sanchar Bhawan, 

Jawahar Lal Nwhru Marg 

(Old Minto Road), 

New Delhi 110002 


Contact Person: HE Dr. Shakeel Ahmad 

Telephone: +91 11 2375 5420 

Fax: +91 11 2371 6111 

E-mail: wawpc@vsnl.com 

Website: www.dot.gov.in 

Contact Person: Mr. M. K. Jain 

Telephone: +91 11 2371 1872 

E-mail: jain@ties.itu.int 

Website: www.dot.gov.in 

Contact Person: Shri Parameswaran N 

Pr. Advisor (RE) 

Telephone: +91 11 2322 0534 

Fax: +91 11 2321 3294 

E-mail: trai@del2.vsnl.net.in 

Website: www.trai.gov.in 

Source: ITU Global View 

109

Description of Telecommunications Market 

The Fixed-line Telecommunications Market 

Historically, the telecom network in India was owned and 

managed by the Government, considering it to be a natural 

monopoly and strategic service best under state's control. 

However, in the 1990s, examples of telecom revolutions in 

many other countries, which resulted in better quality of 

service and lower tariffs, led Indian policy makers to initiate 

a change in process finally resulting in the opening up of 

telecom services sector for the private sector. 

Policy reforms can be broadly classified into the following 

three distinct phases: 6 

j The 1980s introduced private sector telecommunications 

equipment manufacturing, as Mahanagar Telephone Nigam 

Limited (MTNL) and Videsh Sanchar Nigam Limited 

(VSNL) were formed, and a Telecom Commission was set 

up to give focus to telecommunications policy formation 

j In the 1990s, the telecommunications sector benefited 

from the general opening up of the economy. The 1994 

New Telecommunications Policy (NTP) was the first 

attempt to give a comprehensive roadmap for the Indian 

telecommunications sector with the following goals: 

Availability of telephones on demand (targeted by 

1997) 

Universal service covering all villages and one Public 

Call Office (PCO) per 500 persons in urban areas 

(targeted to be achieved by 1997) 

Telecom services at affordable and reasonable prices 

World standard quality of services 

Figure A.3a: Total Market Share of Wireline 

Subscribers as on 30th September 2007 

BSNL 

81.43% 

Figure A.3c: Market Share of Rural Wireline Subscribers 

as on 30th September 2007 

Other Private 

0.12 

110 

Other Private 

9.41% 

BSNL 

99.88% 

MTNL 

9.16% 



j The 1999 NTP brought in the third generation of reforms. 

In 2001, the Indian Government did away with the duopoly 

and opened up the whole fixed-line telephony segment 

to alternative operators. 

Before 2001, only VSNL, a private company, had been 

allowed to compete with the two state-run incumbent 

fixed operators: BSNL and MTNL. VSNL held a monopoly 

on international telephony, but lost its exclusive right in 

April 2002 when the international market was opened up 

to competition. 

The total subscriber base of fixed-line services stood at 

39.58 million as of September 2007. The incumbents 

BSNL and MTNL have 81.43 percent and 9.16 percent 

market share respectively, while all the five private operators 

together have 9.41 percent share. The total urban fixed 

line subscribers are 27.59 million and rural fixedline 

subscribers are 11.99 million. 

The market share of total fixed line subscribers, urban 

subscribers and rural subscribers are shown in the 

Figures A.3a, A.3b and A.3c below: 

Figure A.3b: Market Share of Urban Wireline Subscribers 

as on 30th September 2007 

BSNL 

73.41% 

Other Private 

13.44% 

Source: (TRAI Sept 2007 Quarterly Reporthttp://www.trai.gov.in/trai/upload/Reports/38/report1jan08.pdf 

6 http://www.iimahd.ernet.in/ctps/telecomsector.htm 

MTNL 

13.15%



As on 31st March 2007, apart from BSNL providing service 

throughout the country, and MTNL in Delhi and Mumbai, the 

fixed-line sector included the following five private licensed 

operators: 

j Reliance Infocomm Ltd. 

j Tata Teleservices Ltd. 

j Bharti Airtel Ltd. 

j Shayam Telelink Ltd. 

j HFCL Infotel Ltd. 

All of these providers have migrated to the Unified Access 

Service Regime in the year 2003/ 2004. 

BSNL currently holds the greatest market share with respect 

to fixed-line services, with 73.41 percent of the urban fixedline 

market share and 99.88 percent of the rural fixed-line 

market. 7 It is a public sector company and the largest telecom 

operator in India. In 2000, BSNL was corporatised. 


The telecom market has been recently liberalized and there 

were 209.07 million subscribers as of September 2007, 

compared to 184.92 million subscribers in the previous 

quarter. 153.99 million of these (73.65%) are GSM 

subscribers, compared to 55.08 million CDMA subscribers 

(26.35%). 8 Although mobile telephones followed the 1994 

NTP, growth was slow in the early years because of the high 

price of handsets and high tariff structure of mobile telephones. 

The 1999 NTP heralded several pro consumer initiatives and 

the mobile subscriber additions started picking up. 

The number of mobile phones added throughout the country 

in 2003 was 16 million, followed by 22 million in 2004, 

32 million in 2005 and 65 million in 2006. The only countries 

with more mobile phones than India’s 156.31 million 

are China with 408 million and the United States with 

170 million. 

Table A.3a: Major Mobile Operators’ Subscriber Base and 

Market Share 

Operator Subscriber Base Market Share 

Bharti Group 48.88 23.38 

Reliance Group 36.32 17.37 

Vodafone/Hutchison 35.66 17.06 

BSNL 34.13 16.32 

Tata 19.50 9.32 

Idea Group 18.67 8.93 

Others 15.91 7.62 


http://www.trai.gov.in/searchdoc.asp 

The total GSM subscriber base reached 153.99 million in 

the quarter ending September 2007, compared to 135.79 

million at the end of previous quarter, representing growth 

of approximately 13.40 percent in just one quarter. 

7 TRAI Sept 2007 Quarterly Report http://www.trai.gov.in/searchdoc.asp 

8 TRAI Sept 2007 Quarterly Report http://www.trai.gov.in/searchdoc.asp 

It can be seen from Table A.3a above that the subscriber 

base of the top four operators, namely Bharti, BSNL, Vodafone 

and Idea, is around 87 percent of the total GSM subscriber 

base. Moreover, private operators account for 79 percent of 

GSM subscribers while public sector operators (BSNL & 

MTNL) have only 21 percent subscribers. Figure A.3d 

illustrates these GSM market shares. 

Figure A.3d: Operator-wise market share of GSM Service 

Providers as on 30th Sept 2007. 

Idea 

12.12% 

Aircel 

5.22% 

BSNL 

19.68% 

Reliance 

3.27% 

Spice 

2.26% 

MTNL 

1.80% 

Source: TRAI Sept 2007 Quarterly Report, 


BPL 

0.75% 

Vodafone 

23.16% 

Bharti 

31.74% 

The CDMA subscriber base reached 55.08 million during the 

quarter ending September 2007, compared to 49.13 million 

at the end of June 2007, representing 12.12 percent growth. 

Reliance remains the largest CDMA mobile operator with a 

subscriber base of 31.29 million, followed by Tata Teleservices 

and BSNL with a subscriber base of 19.50 million and 

3.82 million respectively. BSNL in Kolkata and Haryana has 

registered a negative subscriber growth. Figure A.3e illustrates 

these CDMA market shares. 

Figure A.3e: Operator-wise Market Share of CDMA Wireless 

as on 30 September 2007 

BSNL 

6.94% 

MTNL 

0.40% 

Tata Teleservices 

35.40% 

HFCL 

0.27% 

Shyam 

Telelink 

0.18% 

Reliance 

Infocomm 

56.81% 

Source: TRAI Sept 2007 Quarterly Report, http://www.trai.gov.in/searchdoc.asp 

111

Details of which service providers are licensed to provide 

which services are displayed in the Table A.3b below: 

Table A.3b: Service Providers and Licensed Services 

Note: 1) National Long Distance 

2) International Long Distance 

Source: TRAI, DoT, TSMG Analysis 

Source: http://infrastructure.gov.in/telecom.htm 

112 

Company Services Investor 

The ISP Market 

Cellular Basic NLD1 ILD2 

Bharti 

Televentures Vodafone, 

SingaporeTelecom, 

Warburg Pincus 

Reliance Reliance Group 

Infocomm 

Tata Indicom Tata Group 

BSNL Government of 

India 

Hutchison Hutchison 

Essar Whampoa,Essar 

Group 

IDEA AT&T, Tata 

Cellular Group,Birla Group 

There are approximately 92 ISPs in India as of March 2007. 

There are 9.63 million fixed-line Internet subscribers at the 

end of September 2007, compared to 9.22 million at the 

end of June 2007, representing a growth of nearly 

4.37 percent. 

Details of each service provider’s subscriber base and market 

share are displayed in Table A.3c and Figure A.3f below. In 

addition to these subscribers, there were 46.37 million 

wireless Internet subscribers at the end of September 2007, 

who access Internet through their mobile handset, either 

through GSM or CDMA networks. 

Table A.3c: The Market Share of Top 5 ISPs 

ISP Subs. base Share in % 

Bharat Sanchar Nigam Ltd. 4415577 45.86 

Mahanagar Telephone Nigam Ltd. 1808143 18.78 

Sify Ltd. 709155 7.37 

Bharti Airtel Ltd. 706776 7.34 

(Bharti Televentures Ltd.) 

Reliance Communications 604208 6.28 

Infrastructure Limited 

Source: TRAI Sept 2007 Quarterly Report, 




Figure A.3f: Internet Subscribers as 

on 30 September 2007 

Data Infosys Ltd 

2.08% 

Videsh Sanchar 

Nigam Ltd 

4.74% 

Reliance 

Communications 

Infrastructure Ltd 

6.28% 

Bharti Airtel Ltd 

(Bharti Televentures Ltd) 

7.34% 

Sify Ltd 

7.37% 

YOU Telecom India 

Pvt. Ltd 

1.75% 



Others 

5.80% 

Mahanagar 

Telephone Nigam Ltd 

18.78% 

Table A.3d: Total Numbers of Licenses Issued 

and Licensees Offering Services 

Source: DOT 

Bharat Sanchar 

Nigam Ltd 

45.86% 

Name of Licence/ # Private Sector # Active as of 

Service Licensees March 2007 

UASLs 98 76 

NLD Service 15 4 

ILD Service 10 4 

Cellular 37 37 

VSAT 8 8 

Public Mobile 12 12 

Radio Trunked 

Services 

Radio Paging - - 

Global Mobile 

Personal - - 

Communication 

System 

ISP Licence 379 113




j National Telecoms Policy 1994 (1994 NTP) 9 

Focuses on the provision of telecommunications for all 

and aims to ensure the availability of a telephone on 

demand as early as possible. It aims to achieve universal 

service, meaning the provision of basic telecommunications 

services at affordable and reasonable prices to 

all villages as early possible. 

All telecommunication service providers will be required 

to maintain a balance in their coverage between urban 

and rural areas. Their conditions of operation will include 

agreed tariff and revenue sharing arrangements. 

j New Telecom Policy 1999 (1999 NTP) 10 

Aims to make affordable and effective communications 

available to all citizens. It strives to provide a balance 

between the provision of universal service to all uncovered 

areas, including rural areas, and the provision of high 

level services capable of meeting the country’s economic 

needs. Specifically, encourages development of 

telecommunications facilities in remote, hilly and tribal 

areas. 

Aims to create a modern and efficient telecommunications 

infrastructure, taking into account the convergence of 

technologies. 

Converts public call offices, wherever justified, into Public 

Tele information centres with multimedia capability, ISDN 

services, remote database access, and government and 

community information systems etc. 

Transforms both the urban and rural telecommunications 

sectors into greater competitive environments, providing 

equal opportunities and a level playing field for all players. 

Strengthens in-country research and development efforts 

to build world-class manufacturing capabilities. 

Rural areas, such as North East, Jammu & Kashmir and 

other hilly areas, tribal blocks, etc. may be identified as 

special thrust areas for accelerated development of 

telecommunications. The Ministry of Defence shall be 

assigned a more active role in the development 

of telecommunications in such remote areas as are 

identified for accelerated development of 

telecommunications. 

j Broadband Policy 2004 11 

Recognises the potential contribution of Broadband 

services to economic growth and enhancement in quality 

of life through applications such as tele-education, 

telemedicine, and e-governance. 

Encourages private service providers to expand their fibre 

optic\networks, digital subscriber lines on copper loop, 

cable TV networks, satellite media, terrestrial wireless 

solutions and any new innovative technologies to provide 

broadband access to homes and rural areas. 

Enhancement of FDI Limits-the Government of India 

enhanced the Foreign Direct Investment limits from 

49 percent to 74 percent in certain telecommunications 

services subject to specified conditions. 


The Telecom Regulatory Authority of India Act, (Amendment) 

2000 

j Establishes the TRAI to regulate telecommunications 

services. 

Requires the authority to make recommendations on the 

licensing of new service providers and their respective 

licensing conditions. 

j Empowers TRAI to levy fees and ensure compliance to 

universal service obligations (USO). 

j Establishes (in the 2000 amendment) the Telecoms 

Disputes Settlement and Appellate Tribunal to mediate 

disputes amongst and between service providers, the 

Department of Telecommunications and groups of 

consumers. 

j Clearly retains the Monopolies and Restrictive Trade 

Commission’s jurisdiction over monopolistic and restrictive 

trade practices. 

j Establishes legal recognition for electronic commerce. 

The Information Technology Act 2000 

j Establishes legal recognition for electronic commerce. 

The Communication Convergence Bill 2001 

j Establishes an autonomous Communications Commission 

to regulate providers of all forms of communications, as 

well as establishes a regulatory framework for 

telecommunications, broadcasting, data communication, 

multi-media and any other relevant technologies 

and services, in light of convergence. 

j Adopts a technology-neutral and service-neutral licensing 

regime similar to that in Malaysia. 

j Empowers the Commission to manage spectrum, grants 

licences, sets appropriate tariffs, and promotes and 

enforces the universal service obligation. 

Indian Telegraph (Amendment) Rules 2004 

j Establishes the Universal Service Obligation Fund (USOF), 

operating under the Department of Telecommunications 

(DoT), to meet the needs of the USO, established in the 

2002 Universal Service Support Policy. 

j Empowers the USOF Administrator to formulate the bidding 

procedures by which basic service operators, mobile 

service providers and unified access services licensees 

compete for USO funds. 

9 available at http://www.dot.gov.in/ntp/ntp1994.htm 

10 available at http://www.dot.gov.in/ntp/ntp1999.htm 

11 available at http://www.dot.gov.in/ntp/broadbandpolicy2004.htm 

113

j Establishes the scope of USOF support. Funding will 

support the operation and maintenance of Village Public 

Telephones (the first public telephone installed in a village) 

and the subsequent provision of additional community 

phones in villages with populations greater 

than 2,000. Funds will help to replace Village Public 

Telephones installed prior to 2002 and upgrade public 

telephones to Public Tele-Information Centres in villages 

with populations greater than 2,000, with priority going 

to villages with post offices. High-speed services will be 

introduced in a phased manner. Moreover, the fund will 

reimburse rural subscribers the difference in rental actually 

charged and the rent prescribed by TRAI of Direct Exchange 

Lines. 


The 2000 Telecommunications Regulatory Authority Act 

established the independent regulatory authority, TRAI, 

to regulate the telecommunications sector. 

TRAI's mission is to create and nurture conditions for growth 

of telecommunications to enable India to play a leading role 

in the emerging global information society. One of its main 

objectives is to provide a fair and transparent policy 

environment that promotes a level playing field and facilitates 

fair competition. Its directions, orders and regulations cover 

a wide range of subjects including tariff, interconnection and 

quality of service, as well as its own internal governance. 

Recommendations on Infrastructure Sharing12 The regulatory body has emphasised the need for cooperative 

efforts among telecom service providers to share infrastructure 

for faster rollout and higher quality of service, with as little 

regulatory intervention as possible. 

TRAI recommended sharing of passive infrastructure, such 

as physical sites, towers and power supply, to the Department 

of Telecommunications and has also called for sharing of 

active infrastructure, such as antenna systems, cables and 

transmission system, as well as backhaul infrastructure, 

mainly core infrastructure involving switches and networking. 

Infrastructure sharing reduces the cost of providing services 

and making mobile services in particular better and cheaper. 

To provide a level-playing field and rollout opportunities to 

all the licensees, TRAI expanded the scope of financial 

incentive for passive infrastructure sharing in rural and remote 

areas, as well as encouraged the use of non-conventional 

energy sources to resolve the critical power availability issue. 

TRAI recommended that a subsidy for erecting towers should 

also be made available to service providers who are not 

beneficiaries under the USOF scheme to maintain a level 

playing field. It said the mobile tower design should have 

the capacity to accommodate at least three service providers 

to be eligible for subsidy. The passive infrastructure has to 

be created within one year and no subsidy will be paid if the 

newly erected tower is not shared. 

In an effort to make the infrastructure process transparent 

and non-discriminatory, TRAI recommended that licensees 

be required to publish online details of existing and future 

infrastructure installations available for sharing. It should 

be noted that TRAI does not favour spectrum sharing. 

114 



USOF has already funded the first phase of the Shared Mobile 

Infrastructure Scheme to provide subsidy support for setting 

up and managing 7,871 towers in 500 districts spread over 

27 states for provision of mobile services in the specified 

rural and remote areas, where there was no existing fixed 

wireless or mobile coverage. 

In 2007, the DOT proposed to set up an additional 11,000 

towers to cover other uncovered areas through mobile services 

in the Second Phase of the Scheme. The location of the 

proposed towers in rural and remote areas of the country has 

been worked out only tentatively 

Tariff Regulation 

Considering intense competition in various segments of the 

telecommunication sector and a continuous decline in tariff 

rates, TRAI has gradually adopted a regime of tariff 

deregulation. Currently, TRAI is following a hands-off approach, 

except in areas where competition is found to be insufficient. 

Since 2007, TRAI has forborne from regulating tariffs of 

non-roaming mobile services, non-rural basic services and 

National Long Distance / International Long Distance Services. 

TRAI continues to regulate rural telephony, roaming services 

and leased lines. 

The Universal Service Obligation Fund13 The Universal Service Support Policy came into effect in 

2002 and, subsequently, the 2003 Indian Telegraph 

(Amendment) Act established the USOF. The Fund is to be 

utilized exclusively for meeting the Universal Service Obligation, 

and the balance to the credit of the Fund will not lapse at 

the end of the financial year. Credits to the Fund shall be 

through Parliamentary approvals. 

The USO funds are raised through a Universal Service Levy 

(USL), which is presently fixed at 5 percent of the Adjusted 

Gross Revenue of each telecommunication service provider. 

Pure value-added service providers, like Internet, Voice Mail 

and E-Mail service providers are exempt. The central 

government may also allocate additional funds through grants 

and loans. 

The following services are to be supported by the Fund: 

j Stream I: Provision of public telecommunication and 

information services 

Operation and Maintenance of Village Public Telephones 

Provision of additional rural community phones in 

areas after achieving the target of one Village Public 

Telephone in every revenue village 

Replacement of Multi Access Radio Relay Technology 

Village Public Telephones 

12 http://www.hindu.com/2007/04/12/stories/2007041202531700.htm 13 http://www.hindu.com/2007/04/12/stories/2007041202531700.htm



j Stream II: Provision of household telephones in rural and 

remote areas 

Reimbursement of rural subscribers for charges higher 

than that prescribed by the regulator 

j Stream III: Creation of infrastructure for the provision of 

mobile services in rural and remote areas 

j Stream IV: Provision of broadband connectivity to villages 

in a phased manner 

j Stream V: Creation of general infrastructure in rural and 

remote areas for development of 

telecommunication facilities 

j Stream-VI: Induction of new technological developments 

in the telecom sector in rural and remote areas 

Moreover, pilot projects aiming to establish new technological 

developments in the telecommunications sector, which can 

be deployed in rural and remote areas, may be supported by 

the USOF with central government approval. 

Table A.3e: Account of Universal Service Obligation Fund 

on 30.11.2007 

Year Funds collected as Universal Service Funds 

Fund Levy in 10 million Indian Rupees allocated & 

disbursed 

2002-03 1653.610 300.000 

2003-04 2143.220 200.000 

2004-05 3457.730 1314.585 

2005-06 3533.290 1766.850 

2006-07 4211.130 1500.000 

2007-08 - 318.700 

Source: http://www.dot.gov.in/uso/implementationstatus.htm 

Operators’ Approach to Rural Connectivity 

Bharti Airtel 

Airtel has announced that it will make its services available 

wherever a matchbox is available, even in the smallest and 

remotest corners of the country, reaching out to all towns 

with a population of less than 5,000. Currently, Airtel is 

present in 4,581 census towns and 176,593 non-census 

towns and villages in India, covering approximately 54 percent 

of the country's population. Bharti is planning to expand 

Airtel coverage to a majority of villages in the next two-tothree 

years. According to the CEO, affordability would be 

the key plank of Bharti’s rural connectivity programme. “We 

want to be the most admired rural brand by 2010,” he said, 

adding that Airtel is hoping to have a customer base of 125 

million by that year against 54 million now. 14 

Figure A.3g: Map of Bharti Airtel GSM Coverage 

Source: http://www.gsmworld.com/cgi-bin/ni_map.pl?x=0&y= 

0&z=0&cc=in&net=bn 

In addition, Airtel’s high-speed optic fibre network currently 

spans over 55,574 kms covering all the major cities in the 

country. The company has two international landing stations 

in Chennai that connect two submarine cable systems - 

i2i to Singapore and SEA-ME-WE-4 to Europe. 

In February 2007, Vodafone Essar (subsidiary of Vodafone 

Group Plc), Bharti Infratel Limited and Idea Cellular Limited 

announced their intention to form an independent tower 

company, Indus Towers Limited, to provide passive 

infrastructure services in India to all operators on a nondiscriminatory 

basis. 15 

This follows the infrastructure sharing Memorandum of 

Understanding signed between Bharti and Vodafone in 

February 2007. 

The three companies will each merge their existing passive 

infrastructure assets in 16 of India’s circles. Vodafone Essar 

and Bharti will own approximately 42 percent each and Idea 

will own the remaining 16 percent stake in Indus Towers. 

New passive infrastructure rollout in the 16 circles will be 

undertaken by Indus Towers. 

j Reliance Communications 

Reliance Communications has commenced rollout of what 

it terms the “World's Largest and Fastest Rural Infrastructure” 

project. The project commissions 8,982 Base Terminal 

Stations, which will provide telecommunications services 

in 2,340,000 unconnected Indian villages. In 2007, 

the company established a telecom network in over 

40,000 villages using USO funds, adding close to 

7,500,000 new subscribers in these areas. 

14 Source: http://www.hindu.com/2007/12/29/stories/2007122954961400.htm 15 http://www.vodafone.com/start/media_relations/news/group_press_releases 

/2007/vodafone__bharti_and.html 

115

j BSNL 

BSNL has provided 29,000 telephone exchanges in rural 

areas according to Mr. Kuldeep Goyal, CMD, BSNL. 16 In 

many instances the monthly rental charges to rural subscribers 

of BSNL’s fixed network is even less than what is prescribed 

by the regulator. BSNL has also provided more than 5,500,000 

villages with public telephone facilities. 

With the availability of wireless technologies, BSNL has 

introduced large scale CDMA technology. CDMA networks 

of more than 5.5 million lines already exist, and 3 million 

lines are being added in the current financial year. “With 

this expansion, we hope to provide telephone connections 

on demand to 90 percent of the population in the country,” 

Goyal adds. 

A digital satellite network is also being put in place to provide 

public telephone access to more than 10,000 really remote 

and inaccessible villages throughout the country. 

Approximately 200 Village Public Telephones are already 

being operated by BSNL through Inmarsat for extending 

telecom access to remote villages at a very high operational 

cost. BSNL has also used the facility to provide telecom 

access to small and remote villages through the Department 

of Posts under the Grameen Sanchar Sevak (GSS) scheme. 

BSNL cellular service, CellOne, has more than 17.8 million 

cellular customers, garnering 24 percent of all mobile users 

as its subscribers. 

Maps of BSNL’s mobile coverage by state are available at 

http://www.celloneindia.com/network/network.html. 

The BSNL national Internet backbone consists of 432 POPs, 

capable of transporting IP traffic across most the country. 

The network provides Internet services to more than one 

million dial-up customers. 


j RailTel 

Railtel Corporation of India Ltd is a public sector company 

that has its own state-of-the-art network enabling point and 

click provisioning of bandwidth between different locations 

across the country. It enables transfer of high bandwidth IP, 

ATM, Frame Relay, Gigabit Ethernet and other kind of data 

services. RailTel has also implemented countrywide MPLS 

IP backbone network to provide a whole range of Internet 

and VPN services. Visit www.railtelindia.com for a map of 

nationwide railway infrastructure.Services offered by Railtel 

include the following: 17 

116 

Bandwidth (From 64 Kbps to 155 Mbps and 2.5 Gbps) 

VPN (layer 2 & layer 3 MPLS) 

Internet Bandwidth 

National long distance 

Tower space for Antenna 

Co-location facilities 

Dark Fibre 

16 Source: http://voicendata.ciol.com/content/top_stories/207120201.asp 

17 http://www.railtelindia.com/about/whatis.htm 



Potential for Powerline Communications 

According to the Planning Commission of India, 600 million 

people, roughly half the population, are off the national power 

grid, limiting the potential for widespread use of powerline 

communications. It is recognised that rural electrification 

is a vital programme for socio-economic development of rural 

areas. The objectives of the rural electrification policy are 

to trigger economic development and generate employment 

by providing electricity as an input for productive uses in 

agriculture and rural industries, and improve the quality of 

life of the rural people by supplying electricity for lighting 

of homes, shops, community centres and public places in 

all villages. 

Current Pilot Projects and ICT Initiatives 

“Jaagruti (Awakening)” Project 

The "Awakening" initiative supports the spread of rural Internet 

kiosks, based on the Intel-powered Community PC, developed 

specially with unique features to withstand harsh conditions. 

Unique features include: 

Ruggedized chassis designed to withstand dusty conditions, 

varying temperatures and high humidity. It has a removable 

dust filter and integrated air fan to regulate the temperature 

of the motherboard 

The PC is equipped with a Customized Power Supply 

Unit, which maintains continuous load power in the event 

of a power outage 

Low power consumption 

The platform comes installed with a certificate-based 

access, allowing banks to verify the validity of installment 

payments against the purchase of the PCs 

The initiative is supported by the Intel World Ahead Programme. 


http://www.intel.com/pressroom/archive/releases/2006032 

9corp.htm 

Motorola Canopy Wireless Broadband system 

The Motorola MOTOwi4 Canopy network will become the 

wireless backbone or grid system designed to eventually 

connect rural Rajasthan state's 10,000 Panchayats. 

The canopy system is an always on, high speed broadband 

solution for cost-effective, secure and flexible connectivity 

for networks, government, institutions, homes and Internet 

service providers. Canopy significantly reduces the time to 

design and deploy new commercial and enterprise broadband 

networks, seamlessly integrating with existing network systems. 

It can also cater to high demand services like VoIP, video 

service, Broadband IP and Security Surveillance. Canopy 

enables point-to-point service within a range of 35 miles and 

point-to-multipoint service with a range up to 10 miles. 


http://www.motorola.com/content.jsp?globalObjectId=5520



NASSCOM’s Rural Knowledge Network Program 

CDMA innovator, QUALCOMM Incorporated, announced an 

alliance with the NASSCOM Foundation to provide CDMA2000based 

wireless Internet connectivity solutions to 65 Village 

Resource Centres under NASSCOM’s Rural Knowledge Network 

Program. CDMA2000 enables both voice and data and is 

best suited to provide comprehensive connectivity to rural 

India. 


http://www.webwire.com/ViewPressRel. 

asp?aId=17524Gramjyoti Rural Broadband Project 

Ericsson has launched the Gramjyoti Rural Broadband Project, 

an initiative to introduce the benefits of WCDMA/HSPA 

technology to rural India and connect communities to highspeed 

Internet services for the first time. 

The trial project was launched in early September and will 

showcase the benefits of mobile broadband applications 

across 18 villages and 15 towns close to Chennai, in the 

state of Tamil Nadu. 

Communities and schools will be among the beneficiaries of 

the initiative. More than 3,000 high school students within 

these communities will now have high-speed Internet and 

can take e-learning courses, gaining access to new information 

and educational resources for the first time. These communities 

will also benefit from health services such as live interactive 

check-ups via telemedicine. 


http://www.gramjyoti.in/index_eng.htm 

Indian Biofuels for wireless networks 

Indian mobile operator Idea Cellular, Ericsson and the GSM 

Association's Development Fund have teamed up to develop 

biofuels as a source of power for wireless networks in rural 

India. In a pilot project in Pune, Maharashtra, the three will 

begin using biofuels to power mobile base stations located 

beyond the reach of the electricity grid. 

The first phase of the project, which is testing the feasibility 

of non-edible plant-based fuels, such as cotton and jatropha, 

is nearing completion. The second phase of the project will 

entail setting up a supply chain using locally grown crops to 

produce biodiesel to power between 5 and 10 base stations 

in the Maharashtra region. 

Biodiesel can be produced locally, creating employment in 

rural areas, while reducing the need for transportation, related 

logistics and security. Biodiesel has a much lower impact 

on the environment than conventional diesel. 

The cleaner burning fuel results in fewer site visits and also 

extends the life of the base station generator, reducing 

operators' costs. "As GSM operators expand their network 

coverage into new areas, one of the biggest challenges is to 

overcome operational issues associated with the lack of basic 

infrastructure," added Mats Granryd, Managing Director, 

Ericsson India. "Through this initiative, we are also involving 

local communities in the wireless revolution and taking the 

benefits of technology to the masses." 18 

18 “Mobiles switch on with biofuels”, BBC News, 8 February 2007, available 

at http://news.bbc.co.uk/1/hi/technology/6341607.stm 

Dharamsala Wireless-Mesh Community Network 

The Dharamsala Wireless-Mesh Community Network launched 

in 2005 and connected 8 university campuses, following the 

deregulation of Wi-Fi. Extensive testing proved the technology’s 

suitability to the region’s hard mountainous terrain, as 

conventional point-to-multipoint networks cannot overcome 

line-of-sight limitations as effectively or offer as great land 

coverage. 

The mesh backbone’s 30 nodes all share a single radio 

channel to provide broadband Internet services to over 

2,000 mesh members. The total available upstream Internet 

bandwidth is 6Mbps and the system is not suffering 

significantly from latency or packet-loss. However, the mesh 

is operating at nearly capacity and it is clear that the 

infrastructure will need to be scaled up in the future. 

New mesh routers with multiple radio channel support are 

being developed and tested in Dharamsala. Power consumption 

of the mesh router is less then 4 watts, so many are powered 

solely by small solar panels. 

117


118 

a4 

MalaysiaProfile 


Ministry of Energy, Water and Communications 

Address: Tingkat LG, G, 1 & 3, 

Wisma Damansara, Jalan Semantan, 

50668 Kuala Lumpur 

Department responsible for telecommunications 

Malaysian Communications 

and Multimedia Commission (MCMC) 

Address: 63000 Cyberjaya, Selangor 




Telephone: +60 3 257 5000 

Fax: +60 3 255 0813 

Website: www.ktkm.gov.my 

Telephone: +60 3 8688 8000 

Fax: +60 3 8688 1000 

E-mail: webmaster@mcmc.gov.my 

Website: www.mcmc.gov.my 





Following the enactment of the 1998 Communications and 

Multimedia Act 1998, the market is liberalised and open to 

anyone who meets the entry requirements. The 1998 Act 

provides for the following categories of unified licenses, which 

are issued on an individual or class basis: 

j Network facilities providers 

Who are the owners of facilities such as satellite earth stations, 

broadband fibre optic cables, telecommunications lines and 

exchanges, radio communications transmission equipment, 

mobile communications base stations, and broadcasting 

transmission towers and equipment. 

j Network service providers 

Who provide the basic connectivity and bandwidth to support 

a variety of applications 

j Application Service Providers 

Who provide particular functions such as voice services, data 

services, content-based services, electronic commerce and 

other transmission services 

j Content Applications Service providers 

Who are a special subset of applications service providers 

including traditional broadcast services and newer services 

such as online publishing and information services 

According to MCMC (2007) third quarter report, the breakdown 

of licensed operators is as follows: 

j 66 Network Facilities Providers (Individual licensees) 

j 27 Network Facilities Providers (class licensees) 

j 72 Network service providers (individual licensees) 

j 29 Network service providers (class licensees) 

j 356 Application service providers (class licensees) 

j 22 Content application service providers (individual 

licensees) 

Fixed-line Telecommunications Market 

Telekom Malaysia Berhad dominates the fixed-line 

telecommunications market with 97.8 percent market share. 

75 percent of the operators are state-owned while the remaining 

25 percent of shares are publicly listed. 

Between 1993 and 1995, a total of 5 licenses were issued 

for the fixed-line market. However, despite the increase in 

the number of operators, Telekom Malaysia’s market share 

remains unchallenged. This is attributed to prohibitive cost 

of building the fixed-line network. 

Time Dotcom Berhad was licensed as the SNO in 1993 and 

is majority-owned by the government through a number of 

investment arms. It has since captured just 1.4 percent 

market share. 

Maxis Communications Sdn Bhd, a subsidiary of Maxis 

Holdings, has captured just 0.7 percent of the market. 

DiGi Telecommunications Sdn Bhd is privately owned with 

Telenor Norway as the majority shareholder (61%) and 

controlling 0.1 percent of the market. 

Mobile Telecommunications Market 

Following the 1997 financial crisis, a number of mergers 

and acquisitions took place in the sub-sector. To date there 

are three major mobile operators. TM Celcom Sdn Bhd is the 

mobile arm of the incumbent Telekom Malaysia and controls 

33.5 percent of the market. Maxis Communications Sdn Bhd 

controls 41.5 percent and DiGi Telecommunications Sdn 

Bhd controls the remaining 25 percent. 


The first ISP was established in 1993 by the Joint Advanced 

Integrated Networking (Jaring). It remained the only ISP until 

the licensing of TMB’s TM Net in 1996. The market remained 

a duopoly until 2000 when additional licenses were granted. 

To date, TM Net is the largest ISP in the country with 

approximately 3 million subscribers, compared to Jaring’s 

270,000 and Time dotcom Berhad’s 1,300. 

The Infrastructure Market 

The infrastructure market is liberalised with 27 network 

facilities providers with class licenses. These providers are 

licensed to own and operate the following: 

j satellite earth stations 

j broadband fibre optic cables 

j telecommunications lines and exchanges 

j radio communications transmission equipment 

j mobile communications base stations 

j broadcasting transmission towers and equipment 

The main operators have different degrees of nationwide 

connectivity for linking their local networks. The mobile 

providers Celcom, Maxis and DiGi rely on a range of different 

technologies like microwave, fibre optic and satellite for 

backbone connectivity. On the other hand, TMB and Time 

dotCom operate larger backbone networks employing primarily 

fibre optic cables. 

TMB 

TMB operates a fibre-optic network that consists of three 

separate backbones that span the length and breadth of 

Peninsula Malaysia. TM fibre-optic cable network now totals 

789,916 km and 32,558,673 km of cable pairs. Through 

Fibre Rail Sdn Bhd, TMB’s joint venture with the national 

railway company, it has also laid a further 1,600 kilometre 

of fibre optic cable along the railway lines in Peninsula 

Malaysia (TMB Annual Report 2007). 

119

TIME dotCom’s fibre trunk network consists of over 

3,600 km of terrestrial fibre-optic cable routes and over 

1,600 km of submarine festoon fibre optic cable backup 

system with landing points around the perimeter of Peninsular 

Malaysia. It has also a Metropolitan Area Network within the 

central business districts of major cities and is targeting new 

high density developments in urban and semi-urban areas 

for deployment. Currently, it serves around 500 buildings 

in the Klang valley area through a hybrid wireless and fibre 

optic network. 

TIME dotCom 

TIME dotCom is a national service provider, which offers 

voice and data communications, including both dial-up and 

broadband Internet provision, payphones and multimedia 

solutions to both the domestic and international market. 

TIME dotCom, through its wholly owned subsidiary TT dotCom 

Sdn Bhd, was awarded a 3G spectrum licence by the Malaysian 

Government in 2006. 

Electricity providers 

Other Infrastructure providers include the electricity distribution 

systems licensed providers and include the following: 

j Tenaga Nasional Berhad (TNB ) 

Electricity provider for West Malaysia 

j Sarawak Electricity Supply Corp (SESCo) 

Electricity provider for Sarawak (East Malaysia). 

j Sabah Electricity Sdn Bhd (SESB) 

Electricity provider for Sabah (East Malaysia) and Federal 

Territory of Labuan. 

It should be noted that the energy and communications sector 

is under the Ministry of Energy, Water and Communications. 

This will, therefore, make it easy for them to harness 

infrastructure and provide broadband over power line. MCMC, 

in liaison with the Energy Commission, has already developed 

guidelines on broadband over power line communications 

(2005). 


The National Telecommunications Policy of Malaysia 1994 

(1994-2020) 

Aims to contribute to economic and industrial growth and 

socialcohesion through telecommunications facilities and 

services. 

The policy target is to have at least 25 telephones connected 

for every 100 persons in the rural areas. This target is to be 

achieved through an increase in basic facilities, an expansion 

of existing telecommunications network and provision for 

new ones. 

Envisages an integrated and reliable transmission network, 

covering the whole nation and capable of providing voice, 

video, data and imaging services. 

120 



The National Information Technology Agenda (NITA) 1996 

Policy Incentives for Investment in the ICT Sector 

The Malaysian Investors’ Guide (available at 

http://www.mida.gov.my) details the available investment 

incentives, including special exemptions and allowances. 

Exemptions 

In line with the government's objective to encourage the 

development of computer software, companies that develop 

both original and/or undertake major modifications of existing 

software other than those deemed established are eligible 

for Pioneer Status with a tax exemption of 70 percent of the 

statutory income for five years. This incentive is given based 

on the following guidelines: 

j The computer software must be for a general purpose and 

not for a specific customer. 

j For companies undertaking modifications of existing 

software packages, the cost of acquiring the existing 

packages must not exceed 25 percent of the modification 

expenditure, which includes software tools, labour and 

equipment costs. 

j Allowable foreign ownership is 61 percent. 

Allowances 

Companies receive an initial allowance of 20 percent and an 

annual allowance of 40 percent for expenditures incurred in 

acquiring computers and information technology assets, 

including software. Thus, the expenditure can be written off 

within two years. Additionally, the cost of developing websites 

is allowed as an annual deduction of 20 percent for a period 

of 5 years. 

Companies are also entitled to enjoy a single deduction 

on operating expenditure including payments to consultants 

related to IT usage for improving management and production 

processes; and contributions in cash or kind for 

ICT acculturation projects at local community levels. 

Multimedia Super Corridor Infrastructure Incentive 

The Multimedia Super Corridor (MSC), a 15-by-50 kilometre 

(9-by-30 mile) zone extending south from Malaysia's capital 

city and business hub, Kuala Lumpur, is a perfect environment 

for companies wanting to create, distribute and employ 

multimedia products and services. MSC Status is the 

recognition by the Government of Malaysia through the 

Multimedia Development Corporation (MDC) to companies 

that participate and undertake ICT activities in the MSC.



For instance, companies undertaking ICT and multimedia 

activities including Regional Shared Services outside the 

CyberCities are eligible for the following incentives: 

j Pioneer Status with 50 percent tax exemption on statutory 

income for a period of 5 years. Accumulated losses and 

unabsorbed capital allowances incurred during the pioneer 

period by companies whose pioneer status will expire on 

or after 1 October 2005 are allowed to be carried forward 

and deducted against post-pioneer income of 

a business relating to the same promoted activity or 

promoted product; or 

j Investment Tax Allowance (ITA) of 50 percent on qualifying 

capital expenditure incurred within a period of 5 years to 

be offset against 50 percent of statutory income for each 

year of assessment. Any unutilised allowances can be 

carried to subsequent years until fully utilise. 


Communications and Multimedia Commission Act 1998 

j Consolidated the powers of the various regulatory authorities 

(METP, JTM, the Ministry of Information) for telecommunications 

and broadcasting by establishing a 

single umbrella regulator, the Communications and 

Multimedia Commission (CMC). 

j Streamlined the regulatory structure by consolidating the 

many legal statutes, including the Telecommunications 

Act and Broadcasting Act, by putting them under a single 

umbrella regulatory framework. 

j Mandates the CMC to make policy recommendations to 

he Minister of Energy, Water and Communications, as 

well as administer the licence application and renewal 

process. Final licensing decisions are the responsibility 

of the Minister. 

j Established procedures for the conduct of public inquiries 

by the CMC on regulatory matters. The CMC uses this 

avenue to solicit opinions from stakeholders when drafting 


and the public is invited to submit their views within a 

given period (at least 45 days). 

j Allows for the setup of an Appeal Tribunal to review CMC 

decisions and direction when the need to do so arises. 

j Establishes industry forums that act as a consultative 

body to the CMC on important issues such as access code, 

consumer code, content code and technical code. Thus 

far, two industry forums have been established, namely 

the Consumer Forum and the Content Forum. 

Communications and Multimedia Act (CMA) 1998 

j Established a technology-neutral and service-neutral 

licensing regime, empowering the CMC to reflect the 

convergence of traditional services including broadcasting, 

telecommunications and content. 

j Established the Universal Service Fund (USF) to improve 

network facilities and services in underserved areas and 

community groups. Levies six percent of all licensees’ 

weighted net revenues to share the cost of providing 

universal service. 

j Encourages the growth of local information resources and 

cultural representation to facilitate the national identity 

and global diversity. 

The CMA and Universal Service Policy 

According to the ITU Study 2004: Bridging the Digital Divide, 

Malaysia’s ICT infrastructure development has been 

concentrated mainly in cities and towns; and it also reflects 

geographical and regional differences in economic development 

and population density. Of the 136 districts in the country, 

89 have been identified as underserved areas (i.e. with a 

teledensity of 20 percent below the national average), mainly 

from East Malaysian states of Sabah and Sarawak, and are 

characterised with low population densities. It is estimated 

that about 3,000 villages nationwide are not served by 

telecommunications infrastructure and services. 

With respect to access to data and Internet services, a similar 

divide is said to be existing between the urban and rural 

areas. It is also further estimated that more than 90 percent 

of the subscribers of the largest ISP, TM Net, are located in 

the Klang Valley area and cities such as Johor Baru, Penang, 

Kuantan, Kota, Kinabalu and Ipoh. Similarly, around 

73 percent of the subscribers of Malaysia’s second largest 

ISP, Jaring, are from the capital and the more urbanised 

states of Selangor, Johor and Pulau Pinang. 

It is in this respect that CMA 1998 made a provision for 

establishment of a Universal Service Policy (USP) as a measure 

of bridging access communications infrastructure and services 

in underserved areas and communities. In order to establish 

a framework for its operationalisation, MCMC developed universal 

service regulations (2002). 

The regulations subsection requires the MCMC to determine 

what constitutes "underserved areas" and "underserved groups 

within the community;" and to take account of the level of 

competition in particular areas or places, the availability of 

services in particular areas or places and/or the commercial 

viability of installing network facilities or providing network 

services or applications services in particular areas or places. 

In the USP annual report (2006), an underserved area is 

where the penetration rate for PSTN subscribers is 20 percent 

below the national penetration rate or any locality where, in 

the opinion of the MCMC, applications services are not 

sufficiently available to the community at large. On the other 

hand, an underserved group within the community is defined 

as a group of people linked by similar characteristics from 

socio-cultural or economic perspective, within a served area, 

who do not have collective and/or individual access. 

The USP system is therefore meant to promote widespread 

availability and usage of network and application services in 

the categories identified above. The main objective is to 

provide basic communications services with focus on public 

payphones, basic telephony and Internet access. The 

programme mainly targets institutions in the rural areas like 

schools, health centres, community centres and libraries. 

121

The CMA and USF 

The USF was established under the provision of section 204 

of the Communications and Multimedia Act (CMA) 1998. 

The Fund is managed by the MCMC, through the Fund 

Committee. Under section 15 (1) of the Communications 

and Multimedia Commission Act (MCMCA) 1998, the MCMC 

was required to establish any committee it considers necessary 

or expedient in the performance of its functions under the 

communications and multimedia laws. To this end, the Fund 

Committee was formed under the Commission Determination 

on USP (Determination No. 2 of 2001), to manage the USP 

Fund. 

The Universal Service regulations (2002) stipulate that 

contributions from licensees shall be based on the following 

three factors: 

j The list of designated services 

j Weighting factors 

j Six percent of weighted net revenue 

Regulation 27 of the USP regulations requires all the licensees, 

except content applications service providers, whose weighted 

revenue derived from the designated services exceeds RM500, 

000/US$150,000 in calendar year (minimum revenue 

threshold), to contribute six percent of its weighted net 

revenue to the USP Fund. As of 2006, there were 28 main 

contributors to the Fund, according to the MCMC USP Annual 

Report 2006. 


The 1998 Malaysia Communications and Multimedia 

Commission Act streamlined the regulatory structure by 

consolidating the many legal statutes including the 

Telecommunications Act and Broadcasting Act, and regulatory 

authorities (METP, JTM, Ministry of Information) for 

telecommunications and broadcasting by putting them under 

a single umbrella regulatory framework. 

The Act mandates the Commission to make policy 

recommendations to the Minister to enforce regulatory policies 

and legislation (the CMA 1998). In the case of the issuance 

of licenses, the Commission administers the application and 

renewal process, makes recommendations, and leaves the 

final decision to the Minister. 

Also notable is that CMA 1998 provides for the conduct of 

public inquiries by the Commission on regulatory matters. 

The Commission has continued to use this avenue to solicit 

opinions from stakeholders during the process of drafting 


(http://www.cmc.gov.my) and the public is invited to submit 

their views within a given period (at least 45 days). 

The CMA 1998 also allows for the set-up of an Appeal Tribunal 

to review CMC decisions when the need to do so arises. 

Another avenue for public participation is the establishment 

of industry forums that act as a consultative body to the CMC 

in important issues such as access code, consumer code, 

content code and technical code. Thus far, two industry 

forums have been established; namely, the Consumer Forum 

and the Content Forum. 

122 



Universal Service Provision Regulations 2002 

The following are prioritised objectives of the universal service 

provision: 

j collective access to basic telephony and Internet access 

services; and 

j individual access to basic telephony and Internet access 

services. 

Guidelines on Broadband over Power Line Communications 

2005 

The guidelines provide a guided approach to the introduction 

of Broadband over Power Line (BPL) communications service 

by licensed service providers. It is intended to help interested 

parties understand the procedure of providing this service in 

Malaysia. The guidelines also outline possible technical 

configurations of the equipment with regard to the technical 

capabilities. The guidelines were developed in liaison with 

representatives from telecommunication service providers, 

government-related bodies, manufacturers, system developers 

and integrators, and higher learning institutions. 

Government envisages teaming up with the following licensed 

electricity distribution systems providers: 

j Tenaga Nasional Berhad (TNB ) 

Electricity provider for West Malaysia. 

j Sarawak Electricity Supply Corp (SESCo) 

Electricity provider for Sarawak (East Malaysia). 

j Sabah Electricity Sdn Bhd (SESB) Electricity provider for 

Sabah (East Malaysia) and Federal Territory of Labuan. 

Guidelines on Telephony Service over IP (2005) 

The guidelines provide a guided approach for introduction 

of telephony service over IP by licensed service providers. 

http://www.mcmc.gov.my/facts_figures/codes_gl/guidelines/ 

pdf/Guideline_TelService_OverIP-amd.pdf 

Guidelines on the Provisioning of VoIP Service (2001) 

These guidelines are intended to help interested parties 

understand the mechanics of the provisioning of VoIP services 

in Malaysia. 

http://www.mcmc.gov.my/facts_figures/codes_gl/guideloip/V 

oIP.pdf 

Guidelines on the Provision of Wireless LAN Service (2005) 

According to the guidelines, the provision of wireless LAN 

activities (such as “hotspot” areas) is localized and may not 

require registration with, or application to, the Commission. 

Prospective providers of wireless hotspot Internet services 

who arrange with a licensed Internet Access Service Provider 

IASP) for access to the Internet may also not require licensing 

under the CMA 1998. However, as this is not an IASP 

service, users may not be protected by any Quality of Service 

Determinations. It is therefore up to the said providers 

to compete to provide the best service they can. 

http://www.mcmc.gov.my/facts_figures/codes_gl/codes/pdf/Wi- 

Fi%20Guideline-Final%20V.pdf



According to the Communications and Multimedia Market 

and Financial Review (Q1 2007), the government has already 

awarded new wireless broadband licenses to four companies 

to operate WiMAX networks. The companies are Bizsurf (M) 

Sdn Bhd, Packet One Networks (M) Sdn Bhd (formerly known 

as MIB Comm Sdn Bhd), and Asiaspace DotCom Sdn Bhd, 

which will cover Peninsular Malaysia; and Redtone-CNX 

Broadband to serve Sabah and Sarawak. The operators are 

expected to roll out services within specified stages in the 

next few years with a service provision of at least 1Mbps at 

affordable rates. 

Guidelines of Dominant Position in the Communications 

Market (2000) 

The guidelines specify matters which the Commission may 

take into account, including the following: 

j The relevant economic market 

j Global technology and commercial trends affecting market 

power 

j The market share of the licensee 

j The licensee’s power to make independent rate setting 

decisions and, 

j The degree of product or service differentiation and sales 

promotion in the market 

The guidelines are therefore intended to promote the following: 

j Consumer markets that offer choice, quality and 

affordability 

Any-to-any connectivity for network services used for 

communications between end users 

j Competition in all communications markets and 

j Investment and innovation in network facilities, network 

services and applications services, and their efficient 

utilisation 

For details of the guidelines see 

http://www.mcmc.gov.my/facts_figures/codes_gl/guidelines/ 

dp/dp.pdf 

However, in spite of these guidelines, and the fact that Maxis 

and Digi have the right to offer fixed-line services, they have 

opted to concentrate on the mobile market segment. To date, 

Telekom Malaysia is controlling about 97 percent of the fixedline 

market. The reluctance of the other operators to engage 

in the fixed-line market is attributed to the dominance of the 

incumbent and the unfavourable interconnection terms. 

For example, in the first commercial agreement signed 

between TMB and Celcom, the latter was required to pay full 

PSTN rates and to meet the full cost of setting up the points 

of interconnection. 19 


The creation of a Universal Service Provision fund, as earlier 

explained, was set out in the CMA and the MCMC Act. 

However, in putting in place modalities for establishing the 

fund, the incumbent TMB was appointed the sole universal 

service obligation operator for an interim period of 2 years 

by government order; which was further extended to January 

1, 2002, to enable the MCMC to finalize a new USP framework. 

In 2002, for example, TMB deployed around 270,000 lines 

nationwide using CDMA WLL technology. It is estimated that 

about 80 percent of these lines were deployed in rural and 

semi-rural areas. 

TMB, through its subsidiary,TM Payphone Sdn Bhd (TMP), 

is the main payphone operator in the country. By December 

2006, TMP had 57,311 sets of payphones throughout 

Malaysia. TMP is also involved in implementing the Universal 

Service Provision project in which it has installed a total of 

1,413 payphones in the rural areas. Other initiatives include 

improving overall performance and awareness on payphones. 

For example, anti-vandalism campaigns in schools are being 

carried out to educate the younger generation on the 

safeguarding of public property (Telekom Malaysia Annual 

Report 2006). 

Operators’ Tariff Policies 

The CMA 1998 permits any telecommunications service 

provider to set market rates, but must publish them. 

The rates established by Telekom Malaysia are based on the 

following principles set out in section 197 of the CMA 1998 

Act: 

j rates must be fair and, for similarly situated persons, not 

unreasonably discriminatory 

j rates should be oriented toward costs and, in general, 

cross-subsidies should be eliminated 

j rates should not contain discounts that unreasonably 

prejudice the competitive opportunities of other providers 

j rates should be structured and levels set to attract 

investment into the communications and multimedia 

industry and, 

j rates should take account of the regulations and 

recommendations of the international organisations of 

which Malaysia is a member 


The existing networks in Malaysia are GSM, VSAT, Wi-Fi, 

ADSL and CDMA; and Telekom Malaysia is currently 

implementing an IP-based network. 

Any technology solution must overcome a number of challenges 

posed by rural connectivity, such as high installation 

maintenance costs, especially in remote and sparsely populated 

areas. In deploying networks to some of these remote areas, 

operators have had to incur high expenses per line in 

comparison to urban areas. 

In terms of geography, parts of Malaysia’s rural population, 

particularly in Sabah and Sarawak, live scattered in the midst 

of dense rainforest, often in hilly terrain that obscures line 

of sight. Also, severe weather conditions further complicate 

telecommunications infrastructure deployment and the 

maintenance of equipment. 

Levels of infrastructure development; for example, electricity 

in rural locations, particularly in rural Sabah and Sarawak, 

is often only provided by diesel generators that operate only 

during certain hours of the day. The lack of paved road access 

also requires additional costs to be incurred in delivering and 

maintaining equipment at these sites. 

19 http://www.ndaventures.com/Malaysia_Telecom_Brief.pdf 

123

Table A.4: Human Capacity Building for Rural Connectivity 

124 

Indicator % of Population 

Combined primary, secondary 74.3 

and tertiary enrolment ratio 

Adult literacy rate (1995-2005) 88.7 

Male adult literacy rate 92 

Female adult literacy rate 85.4 

Youth literacy rate 97.2 

Net primary school enrolment/ 95 

attendance 

Share of central government 25.2 

expenditure that is allocated 

to education (2002-2005) 

Tertiary students in science, 40 

engineering, manufacturing 

and construction (1995-2005) 

Malaysia Ninth Development Plan (2006-2010) 

In its Ninth Development Plan (2006-2010), the Government 

of Malaysia will continue to support and improve the supply 

of science and technology human resources. Funds have 

been committed to enable students to access higher education. 

Also, government agencies and companies provide financial 

assistance to students. For example, in 2005, about 11,900 

government-sponsored students had enrolled in institutions 

of higher learning both locally and abroad. 

Career Prospects for Skilled Graduates 

Between 1996 and 2005, the average unemployment rate 

was just 3.6 percent 20 and the demand for knowledge workers, 

comprising senior officials and managers, professionals, 

technicians, etc. remains high and is expected to grow at 

2.5 percent per year. 

In the Eighth Development Plan, there was a reported increase 

in the demand for highly skilled human resources. This 

demand was met by allowing in the expatriate manpower and 

denotes that graduates can easily find jobs commensurate 

with their skills. 

Malaysia Multimedia University 

Malaysia Multimedia University is a private university in 

which TMB is a major stakeholder. It conducts courses on 

a spectrum of information technology and multimedia-based 

courses at undergraduate and postgraduate levels through 

its four Faculties: Faculty of Creative Multimedia, Faculty of 

Engineering, Faculty of Information Technology and Faculty 

of Management. It offers BSc degrees in information 

technology and engineering (electrical, electronics, 

telecommunications and computer science). For more 

information see www.mmu.edu.my. 



Telekom Smart School Sdn Bhd (TSS) 

TMB is operating Telekom Smart School Sdn Bhd (TSS), 21 

established in 1999 to develop and implement the Malaysian 

Smart School pilot project in collaboration with the Malaysian 

Ministry of Education (MOE) and Multimedia Development 

Corporation (MDeC). 

Since the completion of the project in December 2002, TSS, 

an MSC Status Company, has established several key 

businesses in e-Education, such as content development and 

school applications like the School Management System, 

eSkool, and the Learning Management System, e-Learn. 

Multimedia College is a premier provider of continuous and 

in-service telecommunications training and is the training 

arm of TMB. Yayasan TM, established by TMB, is a charity 

foundation instituted primarily to further improve the education 

of students and professionals alike. 

University Utara Malaysia 

Malaysia was appointed the ITU Centre of Excellence, which 

is located at the University Utara Malaysia. The centre is 

expected to run courses on rural technologies, applications, 

policy and regulation. 


Universal Service Provision for Rural Libraries in Malaysia 

The Ministry of Energy, Water and Communications partnered 

with Maxis Bhd to roll out the first phase of the Rural Libraries 

Initiative. Computers and Internet access were provided to 

110 schools in Sabah and 110 schools in Sarawak, rural 

areas of Eastern Malaysia. 

In the second phase (2003-2004), the programme was 

extended to 174 libraries and 50 rural health clinics. 

The National Library of Malaysia was tasked with the 

coordination role, serving as a liaison between the rural 

libraries and the state public libraries, and identifying and 

monitoring the progress of the programme. 

The libraries were each equipped with the following: 

j Communication system: VSAT (64 kbps uplink and 

256 kbps downlink), solar system 

j Telephone: 2 payphones, 1 office phone 

j Electrical works: generator and wiring 

20 HDR 2007/2008 21 http://www.tmsmartschool.com.my/ 

j Computer system: 2 PCs, 1 scanner and laser printer, 

2 UPS, phone and data wiring 

j 2 sets of computer work stations and chairs, 2 standing 

fans and 1 equipment rack



Additionally, training was carried out for the staff and 

communities of the USP project. The objective was to enhance 

their skills in information searching techniques so that they 

can educate the general public to become skilled library 

users. They were also trained to develop local digital content. 

For more information see www.ktak.gov.my 

Basic Telephony Project 

The MCMC partnered with a number of licensed operators 

(Telekom Malaysia, Celcom, Maxis, NasionCom, TT dotCom 

and eB) to provide collective and individual access to basic 

telephony in 89 underserved districts through its universal 

service programme. 

The USP is implemented based on the premise of publicprivate 

partnership and stimulating private sector investment 

into unprofitable rural areas. In this mechanism, the designated 

service provider who is selected to provide the infrastructure 

and services in rural areas is guaranteed to either make a 

profit or, at least, incur no loss. In the case of Malaysia, the 

service provider claims only for expenses incurred, at cost, 

and the MCMC reimburses them based on detailed claims 

template. 

As a result of the initiative, 39,960 individual lines and 

2,414 payphones have been made available to people and 

communities living in rural areas. It should be noted that 

community responses to this intervention are varied; in some 

areas there is high demand for the fixed lines whereas in 

other areas there was minimal demand resulting into low 

uptake. As of December 2006, the subscription rate for 

individual lines was just 29 percent. 

However, according to the MCMC in its 2006 Annual USP 

Report, an impact study was carried out to gauge and 

determine the effectiveness of the programme by comparing 

the usage of telephone before and after programme 

implementation. The findings were that a high percentage 

of users claimed that they had used payphones prior to project 

implementation suggesting need for service exists in rural 

areas regardless of socio-economic status. 

It is also noted that before USP implementation, users had 

to travel between 9 and 50 kilometers to get to the nearest 

trading centre/town to make telephone calls. Difficulty in 

obtaining transport was highlighted. Therefore, the USP 

programme can be said to have greatly helped the communities 

in transacting their daily functions. In regard to call purpose, 

a number of users used the phone for communicating with 

their families and friends. Others reported that phone 

accessibility had enabled them to get better prices for their 

agricultural produce and inputs. 

Internet Access to Libraries 

MCMC partnered with Telekom Malaysia and Maxis under 

the USP programme to provide collective Internet access 

services to all libraries located in the rural areas. The libraries 

will be equipped with IT hardware and Internet connectivity 

to enable the rural communities gain exposure to Internet. 

Other ICT-related activities such as training and promotional 

activities will be carried out in order to encourage locals to 

make full use of these facilities, with the hope of enhancing 

their economic and social status. 

The selection process of the libraries has been based on the 

feedback from the National Library of Malaysia and the State 

Library Organisations. Coordination efforts are being undertaken 

in conjunction with the Ministry of Energy, Water and 

Communications since the latter is also implementing a 

similar programme under its funded government programme. 

In the first phase of the project, a total of 44 libraries located 

in 89 underserved districts were selected and will be installed 

with Internet access facilities. It is anticipated that, once 

operational, the designated USP provider will appoint a 

supervisor to manage and maintain the equipment, provide 

training and promote the use of the facilities among the local 

community. 

TaniNet, Agricultural Internet-based System 

TaniNet is an interactive online agricultural and 

biotechnological website aimed at providing the agricultural 

community with information on advances in planting materials 

and practices. The goal of TaniNet is to get the rural farming 

community to use ICTs as a means of accessing and sharing 

information and using online services, such as e-commerce, 

as well as to familiarize themselves with the latest 

biotechnology advances and their applicability to the Malaysian 

agricultural context. The content is provided in both English 

and Bahasa Melayu. 

Community development is an important integral part of the 

project. Through collaborative efforts in the form of a smart 

partnership among the private sector, government and 

community organization, TaniNet has proven itself to be an 

effective system using ICT for the benefit of all. Its objectives 

are as follows: 

j Provide on-line information and services on agriculture 

and biotechnology 

j Increase local understanding of agricultural biotechnology 

and local applications of new technology 

j Provide a forum for discussion among the rural farming 

community through a managed bulletin board and chat 

room 

j Provide searchable information on agricultural 

biotechnology 

j Provide access to expert advice and troubleshooting related 

to agricultural problems via the Internet 

j Educate the community on how to use the Internet to 

access important and useful information and services 

Introduce e-commerce to the small- and mediumscale 

agricultural industries 

For more information see www.taninet.com.my 

125


126 

a5 

UnitedStatesProfile 

Policymaker responsible for telecommunications 

United States Congress 

Address: Washington, D.C. 20510 


Federal Communications Commission 

Address: 445 12th Street, 

SW Washington, DC 20554 

Universal Service/Access Agency 

Universal Service and Administrative Company (USAC) 

Rural Tele-cooperative 

National Telecommunications Cooperative Association 

Address: 4121 Wilson Boulevard, 

Suite 1000, Arlington, Va. 22203 




Website: www.senate.gov 

Contact Person: Mrs. Barbara B. Cutts 

Technical Assistance Liaison Officer 

USTTI Administrator 

Telephone: (general) +1 202 418 0437 

(Cutts) +1 202 418 1116 

Fax: (general) +1 202 418 0232 

(Cutts) +1 202 418 2813 

E-mail: barbara.cutts@fcc.gov 

fccinfo@fcc.gov 

Website: www.fcc.gov 

Contact Person: Maria Kendro 

Technical Assistance Liaison Officer 

USTTI Administrator 

Telephone: +1 703 351 2000 

Fax: +1 703 351 2001 

Website: www.ntca.org/KA/index.cfm 





The Local Fixed-line Telecommunications Market 

The local telecommunications market has historically been 

less competitive than the long distance market, but the 1996 

Telecommunications Act established a more competitive 

policy environment. 

In 1984, the Department of Justice broke the incumbent 

monopoly service provider, AT&T, into seven regional operating 

companies (RBOCs). 

The resulting RBOCS, or ‘Baby Bells’, were originally the 

following: 

j Ameritech - acquired by SBC in 1999 

j Bell Atlantic - acquired by GTE in 2000 and changed its 

name to Verizon 

j BellSouth - acquired by AT&T Inc. in 2006 

j NYNEX - acquired by Bell Atlantic in 1996 

j Pacific Telesis - acquired by SBC in 1997 

j Southwestern Bell - changed its name to SBC in 1995, 

acquired by AT&T Corp. in 2005 and changed its name 

to AT&T Inc. 

j US West – acquired by Qwest in 2000 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

CLEC Lines 

ILEC Lines 

Each RBOC was comprised of a collection of local telephone 

companies that were part of the original AT&T and remained 

regulated monopolies, each w ith an exclusive franchise in 

its region, but restricted to providing service within its own 

local access and transport area (LATA) only. The 1996 

Telecommunications Act established competition in local 

telephony, while allowing RBOCs into inter-LATA long distance 

only after meeting certain conditions. 

Establishing Competition 

The Act contemplated three vehicles for competitors to enter 

local telephone service markets, and various competitors 

have used various combinations of these methods: 

j Competitive Local Exchange Carriers (CLECs) may resell 

the services of incumbent Local Exchange Carriers (LECs) 

j CLECs may make use of incumbent LEC facilities, for 

example, by leasing incumbent LEC unbundled network 

elements (UNEs) loops and transport 

j CLECs may build the complete set of facilities they need 

to compete 

Effective Competition and Market Shares 

Figure A.5a: End-User Switched Access Lines Reported (Lines in Millions) 

Figure A.5a shows the relative shares of the residential enduser 

switched access lines provisioned by ILECs (incumbents) 

and CLECs (competitors) between 1999 and 2006. 

It illustrates how the incumbent local exchange carriers 

continue to dominate the provision of switched access lines, 

but with steady growth in competition over the entire time 

period. 

Dec 

1999 

Jun 

2000 

Dec 

2000 

Jun 

2001 

Dec 

2001 

Jun 

2002 

Dec 

2002 

Jun 

2003 

Dec 

2003 

Jun 

2004 

Dec 

2004 

Jun 

2005 

Dec 

2005 

Jun 

2006 

8.2 11.6 14.9 17.3 19.7 21.6 24.9 27.0 29.8 32.0 32.9 34.0 31.4 29.8 

181.2 179.6 177.6 174.8 171.9 167.3 164.4 158.3 153.2 148.0 144.8 143.8 143.8 142.2 

ILEC Lines CLEC Lines 

Source: Trends in Telephone Service, FCC Annual Report, February 2007, available at 

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270407A1.pdf 

127

Figure A.5b: ILEC and New Local Competitor Share of Local Service Revenue 

Source: Trends in Telephone Service, FCC Annual Report, February 2007, available at 

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270407A1.pdf 

128 

ILEC Share 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

New Competitor Share 



1998 1999 2000 2001 2002 2003 2004 

96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2% 

3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8%



The Long-distance Fixed-line Telecommunications Market 

Until the 1970s, AT&T had a virtual monopoly on long 

distance service in the USA. In the 1970s, competitors such 

as MCI and Sprint also began to offer long distance service. 

With the gradual emergence of competition, basic rates 

dropped, calling surged and AT&T’s dominance declined. 

More than 1,200 companies now offer fixed-line long distance 

service. 

After the AT&T divestiture, AT&T’s former operating companies 

were restricted to providing service within their own local 

access and transport areas (LATAs). The 1996 Telecommunications 

Act established a procedure for Bell 

companies to offer interLATA long distance service after 

complying with certain preconditions to open their own 

markets. An RBOC applicant had to demonstrate one of the 

following: 

j one or more unaffiliated competing providers of local 

telephone service to residential and business subscribers 

was connected to the RBOC’s network, and that such 

local telephone service was being “offered by such 

competing providers either exclusively over their own 

telephone exchange service facilities or predominately 

over their own telephone exchange service facilities in 

combination with the resale of the telecommunications 

services of another carrier” or, 

j if no potential competing provider had requested to 

connect to an RBOC’s network, the RBOC had a statement 

of generally available terms and conditions in place 

demonstrating that it was ready to allow potential 

competitors to connect to its facilities 

In 1999, the first RBOC (Bell Atlantic, now known as Verizon) 

was approved by the FCC to provide interLATA service. By 

the end of 2003, all RBOCs were approved for interLATA 

competition. 


A 2006 FCC annual report 22 concludes that there is effective 

competition in the wireless market. 

As of 2005, there were four mobile telephone operators in 

the U.S. that analysts typically describe as “nationwide” 23 : 

j Sprint Nextel Corp. 

j Verizon Wireless LLC 

j T-Mobile 

j AT&T Mobility LLC 

In addition, there are a number of large regional players, 

including Alltel Corp., US Cellular Corp, and Dobson 

Communications. 

Because the four nationwide, large regional and numerous 

other small operators have different geographic footprints, 

they do not all compete head-to-head in each and every 

region and locality. There is also a resell market where resellers 

purchase airtime from the facilities-based providers and resell 

service to the public for profit. Typically, resellers offer prepaid 

plans rather than standard monthly billing and target certain 

demographics (youth or Hispanic population). The resale 

sector accounted for 6 percent of all mobile telephone 

subscribers at the end of June 2005. There are few large 

independent resellers, but competition has been growing. 

To date, 280 million people, or 98 percent of the total U.S. 

population, have three or more different operators (cellular, 

PCS, and/or digital SMR) offering mobile telephone service 

in the counties in which they live. Roughly 268 million, or 

96 percent of the population, live in counties with four or 

more mobile telephone operators. And roughly 145 million, 

or 51 percent, live in counties with 5 or more mobile operators. 

Fifty million, or 18 percent, live in counties with six or more 

operators. 

That said, counties with population densities of 100 persons 

per square mile have an average of 3.6 mobile competitors, 

compared to counties with densities greater than 100 persons 

per square mile, with an average of 4.9 competitors. 

Based on rollout analysis and industry reports, the FCC 

concluded that CMRS providers are competing effectively in 

rural areas. In addition, some analysts report that wireless 

competition is increasing in rural areas, particularly as a 

fixed-line substitute. While it does appear that, on average, 

a smaller number of operators are serving rural areas than 

urban areas, this structural difference is not, by itself, a 

sufficient basis for concluding that CMRS competition is not 

effective in rural areas, and there is no evidence to indicate 

that this structural difference has enabled carriers in rural 

areas to raise prices above competitive levels or to alter other 

terms and conditions of service to the detriment of rural 

consumers. 


For the Internet, the FCC has generally followed a hands-off 

approach, allowing and encouraging free entry of firms in 

service provision, and not imposing fresh and obstructive 

regulations either on the technology itself or on its applications 

like e-commerce. The market penetration of rural Internet 

access in 2003 is illustrated in Figure A.5c. 

Whether the market is competitive is not easily answered 

since competition is difficult to define and measure, and the 

problem is magnified in a country as large and as geographically 

diverse as the U.S. AOL is by far the biggest ISP, but there 

are thousands of other ISPs serving local markets, and the 

monopoly power of AOL is doubtful. At second level, the 

question is whether there is enough inter-modal (narrow 

versus broadband) competition, or whether the competition, 

if existing, is purely intra-modal. This is especially pertinent 

to broadband, since cable is the dominant technology,its 

penetration rate being more than twice that of DSL and far 

ahead of wireless or satellite technologies. 

Broadband prices, including cable, have been declining due 

to the existence of a considerable amount of inter-modal and 

intra-modal competition. Introductory 6-month prices of less 

than $30 are getting common by the day, and waiver of the 

installations charges are more the norm than the exception. 

Evidence points to the existence of a considerable amount 

of inter- and intra- modal competition in the Internet service 

provision market. The market penetration of rural broadband 

Internet access in 2003 is illustrated in Figure A.5d, on the 

next page. 

22 FCC 06-142, WT Docket No. 06-17, Annual Report and Analysis of Competitive 

Market Conditions with respect to Commercial Mobile Services, September 

26, 2006. 

23 When an operator is described as being nationwide, it does not necessarily 

mean that the operator’s license areas, service areas, or pricing plans cover 

the entire land area of the U.S., but that all offer facilities-based service in 

at least some portion of the western, Midwestern, and eastern U.S. Each of 

the four has networks covering at least 230 million people, while the next 

largest providers cover less than 80 million. 

129

Figure A.5c: Market Penetration of Rural Internet Access: 

Percent of Persons with Access to the Internet, 

2003 

Percent of Rural 

Households 

40.0% - 46.8% 

46.9% - 54.9% 

55.0% - 60.5% 

60.6% - 72.7% 

No Data 

Source: http://www.ers.usda.gov/Briefing/Telecom/distributionservices.htm 

Figure A.5d: Market Penetration of Rural Broadband Internet 

Access: Percent of Internet Users with 

Broadband Access, 2003 

Source: http://www.ers.usda.gov/Briefing/Telecom/distributionservices.htm 


j Communications Act 1934 

Established the independent regulatory authority, the Federal 

Communications Commission (FCC). 

130 

Percent of Rural 

Households 

6.7% - 15.8% 

15.9% - 22.4% 

22.5% - 24.3% 

24.4% - 36.5% 

No Data 




Aims to reduce regulatory barriers to entry and competition 

and codifies the FCC’s historic commitment to advancing 

universal service by ensuring the affordability and availability 

of telecommunications services for all Americans. Mandates 

the interconnection of telecommunications networks, 

unbundling, non-discrimination, and cost-based pricing of 

leased parts of the network. It further requires that competition 

be established in local markets before the incumbent local 

exchange carriers are allowed to enter long distance markets. 

Attempts to introduce service-based competition in the lastmile 

local loop network, by requiring incumbent local exchange 

carriers to sell at wholesale prices to entrants any retail 

service that they offer. Also requires that incumbent local 

exchange carriers (ILECs) unbundle their networks and offer 

unbundled network elements (UNEs) for lease to entrants at 

cost plus reasonable profit. Directs the FCC to reform its 

universal service systems by making them “explicit and 

workable in an increasingly competitive market.” It therefore 

preserves subsidised local service to achieve universal service, 

but imposes the requirement that subsidisation is transparent 

and funds are raised in a competitively neutral manner. Thus, 

the Act leads the way to the elimination of subsidisation of 

universal service through the traditional method of high 

access charges. 

Directs the FCC to create two additional arms of the universal 

service support mechanism. The schools and libraries program 

and the rural health care program provide support for 

telecommunications services and Internet access 


The FCC is an independent U.S. government agency, directly 

responsible to Congress. The FCC was established by the 

Communications Act of 1934 and is charged with regulating 

interstate and international communications by radio, 

television, wire, satellite and cable. 

Deregulation 

In an effort to deregulate the market, the FCC eliminated a 

rule limiting the amount of spectrum a Commercial Mobile 

Radio Service (CMRS) licensee could own or control in a 

given licensed area in 2003, as well as eliminating the 

cellular cross-interest rule, which prohibited companies from 

having a direct or indirect ownership interest greater than 

5 percent in more than one licensee in the same service area. 

Spectrum Allocation 

The FCC increased the amount of available spectrum in order 

to alleviate barriers to entry based on limited spectrum 

availability. The FCC has also progressively implemented a 

more flexible, market-oriented model of spectrum-allocation 

and assignment. Finally, CMRS licensees are allowed to buy 

and sell licenses, in whole or in part, on the secondary market.

Universal Service Policy 



Under the FCC’s definition of universal service, adopted in 

1997, universal service includes the following: 

j the ability to place and receive telephone calls 

j touch tone dialling 

j single party service (as opposed to a shared, multi-party 

line) 

j access to emergency services 

j access to operator services 

j the ability to place long distance calls 

j the ability to turn off long distance calling 

j directory assistance 

There are four universal service support mechanisms: 

j High Cost 

High Cost support enables carriers with above-average 

costs to recover some of these costs from the support 

mechanisms, allowing these carriers to lower their end 

user rates and/or to receive less money from state universal 

service support mechanisms. 

j Low Income, including Lifeline and Link-Up 

The Lifeline program promotes increased telephone 

subscribership by providing low income households with 

discounts on the monthly cost of telephone service. The 

Link-Up America program promotes telephone 

subscribership by helping low-income households pay the 

initial costs of commencing telephone service. 

j Schools and Libraries 

Schools and Libraries support enables eligible schools 

and libraries to obtain eligible services, including 

telecommunications services, at discounted rates. 

j Rural Health Care 

Rural Health Care support allows rural health care providers 

to purchase telecommunications services at comparable 

urban rates. 

The “High Cost” support programme operates like a traditional 

universal service fund, enabling carriers with above-average 

costs to recover some of their costs. “Low Income” support 

includes the Lifeline programme, which provides low income 

households with discounts on the cost of monthly telephone 

service, and the Link-Up America programme which subsidises 

installation and start-up costs for low-income households. 

The two low-income support programmes were modified in 

2000 to allow mobile operators to compete for funds, making 

the programme technologically neutral to some degree. 

24 FCC 03-51 and FCC 00-29, 14 March 2003 and 8 June 2000 

The breadth of the programmes was also extended to address 

the needs of households on tribal lands. The 1996 

Telecommunications Act then directed the FCC to create two 

additional universal service mechanisms, the Schools and 

Libraries programme and the Rural Healthcare programme. 

The Schools and Libraries programme, also known as E Rate, 

offers telecommunications services, Internet access and 

internal connections at discounted rates ranging from 20 to 

90 percent. 

The Rural Healthcare programme ensures that rural healthcare 

providers can purchase telecommunications services at rates 

comparable to those in urban areas. Rural health care providers 

are eligible for discounts of up to 50 percent on the monthly 

cost of advanced telecommunications and information services. 

Furthermore, rural healthcare providers that must use costly 

mobile satellite services can be refunded the difference 

between their actual cost and the cost of a comparable urban 

fixed-line service. 

The Universal Service Fund (USF) 

The USF was created by the United States Federal 

Communications Commission in 1997 to meet the goals of 

Universal Service as mandated by the Telecommunications 

Act of 1996. 

Carriers contribute to universal service support mechanisms 

based on interstate and international end-user revenues. 

Since November 1999, all contributions to the USF are based 

on interstate end-user revenues. 

Extending Wireless Telecommunications Services to Tribal 

Lands 24 

Because many tribal lands are geographically isolated, the 

FCC promotes the deployment of wireless telecommunications 

services, be it terrestrial, satellite or a combination, to tribal 

lands with little or no access to telecommunications services. 

The FCC will award bidding credits to licensees who deploy 

facilities and provide service to federally-recognised tribal 

areas that are either unserved by any telecommunications 

carrier or that have a telephone service penetration rate below 

70 percent. Other incentives include the possible relaxation 

of build-out requirements. The FCC also establishes additional 

universal service low income support mechanisms targeted 

at tribal areas. The FCC also expresses the potential for 

improved service to tribal lands with modification of antenna 

height and power restrictions. 

The FCC encourages parties to work with tribal authorities 

on specific broadband proposals and is prepared to grant 

relief on a case-by-case basis for wireless data and voice over 

Internet protocol radios not only with respect to power and 

antenna characteristics, but also tower placement, width of 

spectrum bands and self-regulating software control of radios 

for devices deployed on tribal lands, provided that such relief 

facilities improved service to tribal lands without causing 

interference to adjacent or co-channel licenses. 

The FCC endeavours to avoid splitting tribal lands into multiple 

licensing areas and does not favour the creation of small 

license areas, comprised exclusively or primarily of tribal 

lands. Tribal lands should instead be included in a larger 

licensing area to enable licensees to cross-subsidise service 

to the higher-cost tribal areas. 

131

Proposes Rules for Broadband over Power Lines to Promote 

Broadband Service to Underserved Areas and Increase 

Competition 25 

Regulations support the potential of Access Broadband over 

Power Line (BPL) technologies. The FCC recognises the 

concerns of existing radio users who fear harmful interference 

from Access BPL operations, but after careful consideration 

believes that these interference concerns can be adequately 

addressed. BPL can operate successfully under the noninterference 

requirements of the Part 15 of the Code of 

Federal Regulations, which requires operators of BPL systems 

to eliminate any harmful interference that may occur. 


The National Telecommunications Cooperative Association 

(NTCA) 

In 2006, NTCA has 575 member telecommunications service 

providers, of which 260 are cooperatives and 315 are locally 

owned and controlled commercial companies. In addition, 

the association has 412 associate member suppliers, 

equipment manufacturers, and other companies providing 

financial, legal, engineering, accounting, billing, and other 

essential services to rural telephone systems, 104 subsidiary 

members, and 10 international members include 

telecommunications service providers in Canada and Palau. 

Sixty-one state-wide and regional telephone associations 

bring NTCA's total membership to 1,162. NTCA is a fullservice 

association, offering a wide array of member services, 

including a highly effective government affairs program; 

expert legal and industry representation; a broad range of 

educational services; a comprehensive assortment of regular 

and special publications and public relations programs; and 

a well-rounded complement of national and regional meetings. 

Services Management Corporation (SMC) is a wholly owned 

subsidiary of NTCA. Established in 1980, SMC provides 

administrative services for the association's many benefit 

programs through contractual relationships with Trustee 

committees that are appointed by the NTCA Board to 

administer the programs. 

The services SMC provides include claims and benefits 

administration, data processing and field services. 

NTCA also calls upon the following three related organizations 

to better serve its membership: 

j Formed in 1969, Telecommunications Education 

Committee Organization (TECO), the association's political 

action committee, lends credibility to the government 

affairs program through modest and judicious campaign 

contributions to key congressional supporters. 

j National Telcom Corporation (NTC) is an association 

captive property and casualty insurance company. As a 

captive, NTC serves only NTCA members and provides 

opportunities to minimize administrative costs and control 

losses. 

j Communications Supply Service Association (CSSA), a 

group purchasing venture formed by individual NTCA 

members, provides technical services and offers economies 

of scale in buying telecommunications equipment. 

25 FCC 04-29, 23 February 2004 

132 



In 1994, NTCA established the Foundation for Rural Service 

(FRS), a non-profit foundation, whose mission is to inform 

and educate the public on the rural telecommunications 

industry and to improve the quality of life throughout rural 

America. It disseminates information about rural America 

and its telecommunications infrastructure. 

The Cheyenne River Sioux Tribe Telephone Authority (CRSTTA) 

The Cheyenne River Sioux Tribe Telephone Authority (CRSTTA), 

a 100 percent tribally owned telecommunications company, 

provides telephone and Internet services throughout the 

Cheyenne River Sioux Reservation. Lakota Technologies, Inc. 

is a tribally owned venture that includes call centre and 

document-imaging operations. The Cheyenne River Sioux 

Tribe uses its telecommunications infrastructure and services 

to bring new enterprises and jobs to its Reservation. 


Connectivity 

Indian Telecommunications Initiative 

The FCC’s ITI is a comprehensive program that seeks to 

promote understanding, cooperation and trust among American 

Indian tribes, Alaska Native villages, and tribal organizations; 

the FCC and other governmental agencies; and the 

telecommunications industry. The ITI program is designed 

to build partnerships to target specific concerns, identify 

potential solutions, and bring affordable, quality 

telecommunications services to Indian communities. 

Specifically, ITI seeks to increase the telephone penetration 

rate among tribal communities; facilitate the deployment of 

telecommunications infrastructure in Indian communities 

necessary to provide telecommunications services; and inform 

tribes and tribal consumers about financial support available 

through federal government programs, including Universal 

Service Fund programs. 

For more information see www.fcc.gov/indians.



Annex II. Rural Connectivity in Commonwealth Africa: African Country Profiles 

a6 

BotswanaProfile 


Department of Telecommunications and Postal Services 

Ministry of Communications, Science and Technology 

Address: Private Bag 0414; Gaborone 


Botswana Telecommunications Authority 

Address: Plot 206/207 

Independence Avenue; 

Private Bag 00495; Gaborone 


Contact Person: Mr. Ephraim Balebetse 

Telephone: +267 390 7230 

Fax: +267 390 7236 

E-mail: ebalebetse@gov.bw 

Contact Person: Mr. Jericho Keletso 

PRO and official liaison 

Telephone: +267 395 1298 

E-mail: jerichok@bta.org.bw 

Website: www.bta.org.bw 


133


There are currently three competing national network operators 

and the telecommunications market is undergoing continued 

liberalisation. 

In 2007, the BTA re-licensed all three national network 

operators (Botswana Telecommunications Corporation (BTC), 

Orange and Mascom Wireless) with technology-and serviceneutral 

licenses as Public Telecommunications Operators 

(PTOs) under its new licensing framework. 

The number of PTOs is currently restricted to the existing 

three, but further liberalisation will be considered by the end 

of 2009. 

The fixed-line incumbent, 100 percent state-owned BTC 

(established in 1980), which formerly owned the only fixedline 

license and was excluded from providing mobile services, 

is now able to provide mobile service. The government has 

also taken the first steps towards privatising BTC, engaging 

the International Finance Corporation (IFC) in October 2007 

to act as transactional advisers. 26 

The two mobile operators, Mascom Wireless and Orange, are 

permitted to roll out fixed-line infrastructure under the new 

licensing regime, but have not expressed any such intention. 

The ISP market is liberalised with no limit to the number of 

entrants. An ISP need only submit an application for a Value- 

Added Network Services (VANS) license to the BTA, and 

service is only limited by demand and scarcity of resources 

such as spectrum and numbers. 


The 1996 Botswana Telecommunications Policy treats access 

to basic telecommunication services, e.g. basic telephony, 

as a basic human right, comparable to basic education and 

primary health care. At the time of policymaking, there were 

just 4.1 telephone lines per 100 inhabitants in Botswana, 

and a realisation that there was still a long way to go in order 

to achieve universal services. Expansion of networks and 

services to achieve universal service is the primary goal of 

the telecommunications policy. 

The Telecommunications Policy clearly indicated the need 

for an independent regulator and paved the way for the 1996 

Telecommunications Act, which established the Botswana 

Telecommunications Authority (BTA). The policy also fostered 

competition through the licensing of the two mobile operators, 

Orange and Mascom Wireless. 

However, the policy also recognised that competition alone 

may not lead to rapid expansion in rural areas, where the 

market is not expected to be profitable, and therefore states 

that policy measures, such as license conditions and special 

obligations for BTC, may be necessary. 

The 2005 National ICT Policy is called ‘Maitlamo,’ and its 

primary goal is to transform Botswana into a sub-Saharan 

ICT hub by creating an enabling environment for growth of 

the ICT industry and providing universal service and access 

to ICT facilities. It complements and builds upon Vision 

2016 (Botswana’s long term strategy) and provides many of 

the key strategies essential for achieving national development 

targets. 

26 See http://allafrica.com/stories/200710100975.html 

134 



National targets of Maitlamo are as follows: 

j Competition in the ICT sector implemented by the end 

of 2008 

j Universal access to ICTs by the end of 2016 and, 

j Access to reliable power and connectivity by the end of 

2010 for 50 percent of its citizens 

To achieve the national targets, the following activities are 

planned for implementation: 

Connecting communities programme 

Government on-line 

ThutoNet 

e-Health Botswana 

ICT and economic diversification 

Connecting Botswana 

Connectivity laws and policies 

Some of these Maitlamo initiatives are detailed below in the 

initiatives section. 

More information is available at www.maitlamo.gov.bw 


The Botswana Telecommunications Act 1996 abolished BTC’s 

monopoly, introduced competition, and established the 

independent regulator, the Botswana Telecommunications 

Authority (BTA) responsible for licensing all telecom operators. 


In 2001, the ITU chose to highlight Botswana in a case study 

on effective regulation, establishing the BTA as a world model. 

The BTA is one of the few regulatory bodies that has complete 

autonomy to license operators and to finance its own budget. 

Its other main responsibilities include the provision of universal 

access to telecommunications services and the promotion 

and maintenance of competition. 

When BTA first licensed the two original mobile operators, 

it incorporated rural service obligations in the licenses. Both 

were to establish 500 public phones each in rural areas 

within 4 years of starting their operations, as well as requiring 

the submission of rollout plans, financial details and ownership. 

In 2007, the BTA transitioned to the current technology- and 

service- neutral licensing regime in order to open the market 

to more effective competition and more efficient operation. 

The three national network operators are now licensed to 

provide the full range of services under the PTO license.



Licences for the provision of Internet and data services were 

also replaced by service-neutral and technology-neutral VANS 

licences. The permitted value-added services include VoIP 

or Internet telephony at the national and international level. 

The objectives of the new regime are to develop the services 

market, accommodate technological convergence and minimise 

regulatory barriers to market entry. 

Telecommunications Operators’ Approach to Rural 

Connectivity 

BTC’s approach 

BTC operates one of the most extensive microwave networks 

in the continent, linking most of the exchanges in the country. 

However, it is also rolling out VSATs (small aperture terminal 

satellites) to overcome vast distances and difficult terrain 

and further increase rural connectivity. 

BTC and the Government of Botswana are financing fixed 

wireless local loop and virtual telephony to be implemented 

by Atio Corporation to increase access to telecommunications 

services in rural areas including the Barolong Region and 

Northern Tuli Block. 

Orange Botswana’s approach 

Orange Botswana has partnered with Ericsson to implement 

the Ericsson Expander solution, which is allowing Orange to 

reach customers previously too remote for cost-efficient 

coverage. The Expander achieves cell ranges of up to 

109 km, (most traditional transmitters have ranges from 

20 to 30km), while retaining quality both for voice and data 

calls. Because the Expander reduces the number of required 

sites and base stations needed, costs are cut without reducing 

functionality and quality in the radio equipment. Moreover, 

the terrain is predominantly flat and free of obstructions, 

thereby ideal for radio-wave propagation over such great 

distances. 27 


BTC’s physical network is comprised of nearly 100 percent 

digital switching and transmission systems. BTC’s infrastructure 

is primarily fibre-optic cable, and it is now rolling out its 

VSAT network to further rural connectivity. 

International bandwidth costs remain high, ranging from 

US$3,250 (satellite) to more than US$6,000 (terrestrial) 

per 1 MB per month. For 128 kbps, BTC leased lines are 

between 5 and 20 times more expensive than in Namibia 

and South Africa. 

However, rural users will hopefully benefit from increased 

international connectivity via the Tlokweng fibre, which carries 

BTC traffic from Botswana and neighbouring countries into 

South Africa. Global connectivity is being addressed by 

shifting primary communication from satellite to fibre-optic 

systems, and a partnership with British Telecom aims to hub 

Internet and packet connectivity into London. 

27 See http://www.cellular-news.com/story/17269.php May 2006 


Table A.6 





Male adult literacy rate 80.4 


Youth literacy rate 94 

Net primary school enrolment / attendance 85 

Share of central government expenditure 21.5 

that is allocated to education (2002-2005) 

Tertiary students in science, engineering, 17 

manufacturing and construction 

(1995-2005) 

Source: 2007/2008 Human Development Report Indicators, Statistics 

for 2005 unless otherwise stated 

Maitlamo ThutoNet 

ThutoNet, the Maitlamo policy on the promotion of e-learning, 

is a critical component of Maitlamo. Its 2010 targets are the 

following: 

j Provide all schools with modern PCs and Internet access 

j Increase the ratio of PCs to learners to 1:7 

j Design and implement an ICT content and curriculum 

development programme for the primary secondary, 

vocational, and tertiary sectors 

j Design and implement professional development among 

teachers 

j Develop ICT skills programmes for adult and non-formal 

learners 

j Introduce a strong ICT proficiency measurement and skills 

monitoring programme 

j Support e-education research and development 

j Secure funding to sustain ICT use in education 

The schools connectivity project proposes 128-kbps Internet 

connectivity and proposes a central educational network as 

an extension of the Government Data Network to support 

Botswana’s Education Management Information System. 

A professional development programme will involve training 

a group of teachers who will serve as ICT managers or coaches 

in their respective schools. This will be followed by an intensive 

training programme focused on basic computer use and 

maintenance, use of the Internet and school network, and 

basic ICT education. Later phases will broaden the number 

of teachers who have basic skills to integrate ICTs into all 

aspects of the curriculum. 

135

There will also be a range of initiatives aimed at training and 

job creation for those outside the formal education system. 

JobNet is a project that will coordinate existing programmes 

to create a network of online services and tools aimed at 

helping employers and job seekers use the Internet for 

recruitment, career, labour information, and learning. 

ICT Training Institutes 

All state tertiary learning institutions are well equipped with 

Internet-connected computers. The most advanced institution 

in the country, the University of Botswana, has engineering 

and technology faculties and offers a two-year diploma in 

computing studies and a four-year degree in computer science. 

Botswana is planning to establish a second university that 

will also be centred on the development of ICT related skills 

and expertise. World leading programmes in science, 

technology, engineering, and business will be at the core of 

the university’s subject offerings. Botswana is also home to 

the National Institute of Information Technology which offers 

diplomas and certificates in computing studies. 

The Botswana College of Distance and Open Learning 

(BOCODOL) is currently running an e-mail pilot project to 

improve learner support services through the Internet and 

also plans to provide basic computer training. It is considering 

piloting the International Computer Driver’s Licence course 

in its strategies to become a fully fledged open and distance 

institute. 

To boost BOCODOL’s efforts, the Ministry of Education, in 

conjunction with the Department of Information Technology 

and the Ministry of Communications, Science and Technology 

(MCST), is developing an Education Data Network (EDN) to 

provide educational institutions with access to Internet, 

e-mail, and Web-based teaching and learning throughout the 

country. It is being piloted in four institutions with broadband 

access through Botswana Television transponders. 

BODOCOL will also benefit from the MCST’s plans to link 

Botswana to the western continental undersea 

telecommunications cable to increase high bandwidth to 

users. 

BODOCOL consists of 50 community study centres co-located 

with secondary school and 12 education centres, including 

the Mochudi Media, Tlokweng National Resource, and Learning 

Resources Centres in the Colleges of Education, secondary 

schools, computer labs, and the campuses and sites of the 

University of Botswana. 


The Trans-Kalahari Fibre-Optic Project 

The Trans-Kalahari fibre-optic project, implemented by BTC, 

will deploy approximately 2000 km of optical fibre, connecting 

Botswana with Namibia and Zambia. The project is part of 

a wider initiative to liberalize Botswana’s ICT sector, including 

the opening of its international gateway to competition and 

the introduction of VoIP services. It is expected to be complete 

in 2008. 

For more information see http://www.itu.int/ITU- 

D/connect/africa/2007/media/kit/africa_ict.html 

136 



The Rural Telecommunications Initiative 

The rural telecommunications initiative aims to bring rural 

communities into the mainstream of society and provide 

telecommunications infrastructure for potential economic 

activity outside the major population centres. 

The program has been in existence for more than 10 years, 

and the issues and challenges encountered in its implementation 

have prompted the government to formulate a forward-looking 

strategy to serve the current market demands. An accelerated 

expansion of infrastructure and services to the rural communities 

in the most cost effective and logical manner possible is the 

main objective. 

The first phase ended in 2004 after the provision of Internet 

access and modern telecommunications to 147 villages. 

Eventually, the project will ensure that more than 50 percent 

of the rural population will be provided with basic 

telecommunications services. 

For more information see www.ruraltelecom.gov.bw 

National Telecommunications Network Upgrade 

The government has committed US$60 million to rehabilitate 

and fortify the national telecommunications network. 

An additional US$60 million is being mobilised to provide 

high capacity international connectivity through 

undersea cables off the east and west coasts of Africa. 

Connecting Botswana 

The Connecting Botswana programme aims to assist in the 

design and deployment of an enabling technical infrastructure 

for Maitlamo, providing sustainable ICT infrastructure solutions 

to enable full connectivity to homes, communities and 

establishments, and the delivery of health, education, public 

services and e-Commerce solutions to everyone in the country. 

It also targets the provision of electricity and Internet access 

for remote and rural communities to ensure equity and 

Universal Access. 

National targets of the programme consist of the following: 

j Competition in all areas of ICT implemented by December 

31, 2008 

j Access to reliable power and connectivity to 50 percent 

of citizens by December 31, 2010 

j Access to ICT technologies to all citizens by December 

31, 2016 

Connecting Communities Programme 

As part of Maitlamo, hundreds of Community Access Centres 

will be established throughout the country to provide citizens 

with Internet access. Centres will be tailored to the specific 

needs of the community and will provide easy access to 

information and services relating to healthcare, jobs, education 

and government services etc. They will offer training, education 

and assistance to ensure that local residents learn to use 

ICTs for maximum social, cultural and economic benefit. 

Local companies and entrepreneurs can also receive training 

in business start-up and e-Business.



National targets for the Connecting Communities Programme 

are as follows: 

j All communities over 2,000 inhabitants to be connected 

to high speed network access by 2016; 50 fully functioning 

Community Access Centres by December 31, 2010; and 

100 fully functioning Community Access Centres by 

December 31, 2012 

j All public libraries and/or book rooms connected to high 

speed network access by December 31, 2010 

j 5 Mobile Internet Units, with high speed satellite access, 

deployed by December 31, 2007 

j Complete coverage of all of Botswana by national radio 

and TV (public broadcasters) by December 31, 2008 

and, 

j A measurable increase in employment, wealth generation 

and healthcare awareness in communities that maintain 

working high speed networks in excess of four years 

e-Health 

e-Health will first establish a simple Healthcare Portal and 

improve the delivery of health-related information via radio 

and television. Eventually, telehealth and telemedicine 

services will be offered. 

e-Health targets include the following: 

j All health facilities in which care is available for more 

than ten days per month to be connected by December 

31, 2008 

j All Botswanans have appropriate access to health 

information on line by December 31, 2009 and, 

j Services to provide health services remotely available 

across Botswana by December 31, 2010 

137


138 

a7 

CameroonProfile 


Ministry of Posts and Telecommunications 

Address: Secretariat d’etat 

Telecommunications Department 

P.O.Box 1571, YAOUNDE 


Telecommunications Regulatory Board 

of Cameroon (ART) 

Address: P.O.Box 6132, 

YAOUNDE 

ICT Implementation Agency 

National Agency of Information and 

Communication Technologies 

Address: P.O.Box 6132, 

YAOUNDE 




Contact Person: Hon. Maigari Bello Bouba 

Minister 

Telephone: +237 223 2300 

E-mail: bellobouba@minpostel.gov.cm 

Contact Person: Mr. Jean Louis Beh-Mengue 

General Manager 

PRO and official liaison 

Telephone: +237 223 0380 

E-mail: art@camnet.cm 

Website: www.camnet.cm 

Website: www.antic.cm/en/ 





The fixed-line telecommunications sector is monopolised by 

the state-owned incumbent CAMTEL, while private operators 

Orange and MTN compete in the mobile market. The 1998 

Telecommunications Act liberalised the ISP market, and in 

2004 there were eight competing ISPs, namely CAMTEL, 

ICCNet, GLOBAL net, GCnet, MEQUACOM and CYBERIX. 

The 1998 Telecommunications Act expressed the intent to 

privatise CAMTEL by selling 51 percent to a strategic investor, 

10 percent to the Cameroonian public and 5 percent to 

CAMTEL staff. Since then, three attempts to privatise the 

company have failed. 

MTN Cameroon was established in 2000, following the 

acquisition of the country's second mobile phone license 

by the South African Group M-Cell, which later became 

MTN International as a result of the privatization of Camtel 

Mobile. It is 70 percent owned by MTN International and 30 

percent by private Cameroonian businessmen, grouped 

under the umbrella of Broadband Telecomm Cameroon. 


Cameroon has drafted its National Information and 

Communication Strategy and established its ICT Implementation 

Agency, the National Agency of Information and Communication 

Technologies. The agency‘s objective is to promote the emergence 

of the information society in Cameroon, encourage the involvement 

of all citizens in the information society, and develop the legal 

framework for the ICT sector and the country’s telecommunications 

infrastructure. The agency also aims to promote e-business and 

contributes to ICT training for ICT teachers at universities, 

colleges, teacher training schools and primary schools. 

The Agency is charged with the determination and 

implementation of a national strategy for ICT development, 

but has yet to draft one. 

Legislation supporting rural connectivity 

The 1998 Telecommunications Act established the regulatory 

authority, the Agence de Régulation des Télécommunications 

(ART), which shares powers with and answers to the Ministry 

of Posts and Telecommunications. 

Privatised the public mobile operator CAMTEL-MOBILE and 

opened the mobile market to competition. Also expresses 

intent to privatise the fixed-line incumbent CAMTEL. 

Established the Special Telecommunications Fund, which is 

to be managed by ART. 


The 1998 Telecommunications Act established the Special 

Telecommunications Fund, which is to be managed by ART, 

but it is currently non-operational. 

All public telecommunications network providers and public 

telephone service providers are to contribute to the Fund as 

defined in their licenses (levy of 2 percent of revenues) 

but no contribution had been made as of 2005. 

28 Cameroontelecommunications_his.mht (February 08 2008) 

Reasons for mismanagement of the Fund follow: 

j The lack of a universal access policy document issued by 

the government which should define specific goals, 

objectives and targets of the Fund 

j Lack of transparent financial mechanisms 

j Lack of Fund procedures 

j Lack of programmes and projects 


CAMTEL’s infrastructure includes the following: 28 

j 47 fully digital telephone exchanges and 47 local networks, 

resulting in a total of 153,818 telephone lines in the 

cable network and 140,946 in the switching network 

j 76 hubs to provide telephone services to as many rural 

areas as possible, with a capacity of 10,940 lines 

j A gradually digitised national transmission network, 

comprising about 50 transmission centres and 75 relay 

stations, which covers almost the entire country 

j Three satellite telecommunications stations at Bepanda, 

Zamengoe and Garoua; equipped with computer-operated 

earth stations, two automatic switches for international 

transit and a hub for the VSAT System. Cameroon is 

connected to the rest of the world through an 

automatic dial-up system 

j 155 Mbps connection to the SAT3 undersea fibre-optic 

cable at the Douala grounding station 

j Optical fibre national backbone 

CAMTEL also uses INTELSAT and INMARSAT satellite 

transmission solutions for voice, data and image through 

VSAT or small portable devices. 

139


Table A.7 

140 


Combined primary, secondary and 62.3 

tertiary enrolment ratio 




Youth literacy rate -- 

Net primary school enrolment / attendance -- 





(1995-2005) 

Source: 2007/2008 Human Development Report Indicators, Statistics 

for 2005 unless otherwise stated 

Advisory Network for the African Information Society 

The Advisory Network for the African Information Society 

(ANAIS) is a European-African network that is involved in 

the promotion of ICTs in four fields, namely consultation and 

advice on ICTs, increasing awareness of ICTs at both the 

grass-roots and decision-maker levels, publication of a 

specialised Quarterly called le Défi numérique, and training. 

The ANAIS training programme is divided into modules and 

aims to make students immediately operational at the end 

of their training. High potential out-of-schoolers from underprivileged 

areas are targeted for the training programmes and 

the experiment started with mobile ICT training in 

neighbourhood community centres. Currently, ANAIS is 

establishing capacity-building centres in poor urban 

neighbourhoods with four objectives: to provide ICT training 

to youths and women (Word, Excel, web design, graphic 

design), to provide a self-training centre for the strong 

performers, to provide a self-employment centre for tele-work 

and to provide an Internet-browsing centre and employment 

service. 

The COMETES Project 

Funded by the French government, the COMETES Project is 

implemented in collaboration with the Ministry of Higher 

Education (MINESUP), the Association des Universités 

Francophones (AUF), the Université Paris I Panthéon-Sorbonne 

(France), and CFA Stephenson (France). It involves five state 

universities, three technology institutes, and two engineering 

schools in a distance learning and training programme. It 

has developed a university network in connection with UNESCO 

with a common distance-training platform in each of the 

technological schools. It has also run several workshops to 

train tutors in handling distance-training courses and mediating 

between remote training centres and local students. Distance 

training units are being established in universities and 

technological schools, and the unit in the Faculty of Agriculture 

at the University of Dschang is already operational. 

For more information see www.projetcometes.org or 

www.cometes.uninet.cm 



Cyber Education Project in Secondary Schools 

The Ministry of Secondary Education established the Cyber 

Education Project, of which the first phase took place from 

2001 to 2007. 

The project aimed to establish at least 10 Internet-connected 

multimedia resource centres (MRCs) in each province and 

100 throughout the whole country by 2007; that said, 17 

were operational at the start of 2007. It is developing human 

resources by training monitors, teachers and administrative 

staff on ICT use and implementation, and 154 monitors were 

trained by the end of 2007. The programme uses a distancetraining 

unit when more necessary and ensures that teachers, 

directors, and administrative staff are trained by monitors 

regularly. As a result of the project, 80 percent of public 

secondary schools have computer labs, and 60,000 students 

now have access to computers, compared to just 10,000 in 

2001. 29 

Current Pilot Projects and ICT initiatives for Rural 

Connectivity 

Community-based Internet centres 

The ITU and the Ministry of Posts and Telecommunications 

launched a 7 billion-CFA project, financed with Highly 

Indebted Poor Country (HIPC) funds, to establish 

96 community-based Internet centres in Cameroon. 

j Agro PME 

Agro PME is an organisation which supports small and medium 

Cameroonian enterprises, providing them with expertise in 

marketing products and services on the Internet. It has 

operated in Yaoundé for approximately 10 years. 

For more information see www.agro.pme.camnet.cm 

j Presse Jeune 

Presse Jeune is an initiative that educates young Cameroonians 

in the opportunities and possibilities of the Internet. Press 

Jeune publishes an awareness bulletin and provides a Page 

access point of Francophonie. 

For more information see www.pressejeune.org 

j Potential 2000 

Potential 2000 is an NGO that provides advisory services in 

ICT engineering and strategic management. For four years, 

it has carried out several studies directed at e-governance, 

telemedicine, etc. It has developed an online interface for 

all pharmacists in Cameroon and is working on a telemedicine 

project. 

For more information see www.Potential2000.org 

29 According to the Ministry of Education



PROTÉGÉ QV E-learning Initiatives 

PROTEGE QV, which stands for PROmotion of TEchnologies 

that Guarantee Environment and a better Quality of life, is 

a Cameroonian rights association established in 1995. 

Its main objectives include rural development, the promotion 

of technological research solutions to local problems and 

natural resource management and the promotion of ICTs to 

achieve the Millennium Development Goals. Many of its 

projects have been financed by the Global Knowledge 

Partnership, the World Bank, the French Cooperation in 

Cameroon, the United States Embassy, the Japan Embassy 

and the Commonwealth. 

Major achievements of the project include the following: 

j Open Nkam e-learning: business training for women by 

women using traditional ICTs and radio- based training 

for women entrepreneurs to support them in setting up 

small businesses; 

j The Upper Nkam Women Opened to the Challenges of 

Innovations in ICTS: a project that introduced 150 women 

to data processing on computers; and, 

j Small Business Training for Women in Cameroon 2005: 

An ongoing project using a standardised multimedia CD 

geared to reinforce the capacities of women involved in 

small businesses. 

For more information see www.protegeqv.org 

141


142 

a8 

The GambiaProfile 

Ministry responsible for Telecommunications 

Department of State for Communications, 

Information and Technology 

Address: MDI Road, 

Kanifing, BANJUL 


Public Utilities Regulatory Authority (PURA) 

Address: 1, Paradise Beach Pl; 

Bertil Harding Highway; KOLOLI 




Contact Person: Honourable Neneh Macdouall-Gaye 

Secretary of State 

Telephone: +220 437 8099 or 8000 

E-mail: doscit@gamtel.gm 

Website: www.gamtel.gm 

Contact Person: Mr. Alagi B. Gaye 

Director-General 

Telephone: +220 446 5175 

E-mail: basiru72@yahoo.com 

Website: www.pura.gm 




Description of the Telecommunications Sector 

Gamtel is the monopoly fixed-line incumbent operator. The 

government still owns a 50 percent stake after the company 

was privatised in 2007 under financial crisis. The other 

50 percent of shares was sold to Spectrum Gambia, a 

Lebanese Investment firm. In March 2008, the company 

reportedly went bankrupt due to the government and several 

private institutions’ accumulation of unpaid GAMTEL bills. 30 

The mobile market is more competitive, with three licensed 

service provide: Gamcel, Africell and Comium. A subsidiary 

of Gamtel, Gambia Cellular Company Ltd (Gamcel), was 

established in 2001 as the country’s first mobile operator. 

In 2001, Africell and Siemens partnered to build its GSM 

900 network and has since concluded roaming agreements 

with over 140 operators worldwide. Due to the substantial 

tourism industry in the Gambia, Africell receives a large net 

gain in roaming receipts. 

The ISP market is somewhat liberalised with 5 competing 

ISPs. Gamtel operates ADSL and CDMA data services. 

Quantum net provides dial-up, wireless broadband and data 

network services. Unique Solutions provides planning data 

and wireless networks. And Airtip and Netupage both provide 

dial-up and wireless broadband services. 


j Public Utilities Regulatory Act 2001 

Established the Public Utilities Regulatory Authority (PURA) 

responsible for regulating electricity, water and 


Figure A.8: Gamcel Coverage Across the Length 

and Breadth of the Entire Country 

Banjul 

Bakul 

Serekunda 1 

Serekunda 2 

Kotu 

Abuko 

Gunjur 

Ndagukebbeh 

Brikama 

Yundum 

Brufun 

Sanyang 

Kerewan 

Kanilai 

Kafuta Bwiam 

Source: Balancing Act 2007 and Gambian Public Regulations Act 

30 4 March 2008, Freedom Newspaper, Raleigh North Carolina. “Gamtel Goes 

Bankrupt Again!” Accessed www.allAfrica.com 

The Act directs PURA to do the following: 

j Liberalise the ICT sector to increase competition; 

j Encourage collaboration and coordination in ICT 

infrastructure development at the local, regional and 

international level; 

j Develop sufficient ICT Human Resources in the country; 

j Establish an enabling and desirable legal and regulatory 

framework to take into technological convergence into 

accounts; 

j Encourage consumer participation in the ICT sector by 

establishing a users’ forum in various public utility areas. 

The Act also tasks PURA with the development of an 

appropriate universal access mechanism to encourage the 

expansion of ICTs. PURA is to ensure availability of ICT 

access irrespective of location, be it rural or urban. 

Telecommunications Bill 2007 

Still under deliberation, but is intended to encourage a “more 

rational liberation” of the ICT sector. 31 


The existing infrastructure consists of fibre-optic, GSM and 

VSAT networks. 

Gamtel aims to deploy broadband technologies in a gradual 

and controlled manner for the benefit of all. Having 

successfully piloted an ISDN project, Gamtel announced its 

deployment of XDSl in some parts of the GBA and ISDN 

speed connections for most of the rest of the country. 

Farafenni 

Mansakonko 

Kasir 

Kudang 

Bansang 

Basse 

Numunyel 

The Mansakonko and Bansang regions, in particular, suffer 

from a lack of electricity, and rely on wood, LPG, petroleum 

and renewable resources for fuel. The government has 

undertaken a rural electrification project, which will alleviate 

some of the hurdles for the provision of telecommunications 

services. 

31 “New Telecommunications Bill in the Offing”, Gambia News, 28 May 2007, 

[online], available at:http://www.gambianow.com/news/Technology/New_ 

Telecommunications_Bill_in_the_offing.html 

143


Table A.8 

144 




Adult literacy rate (1995-2005) -- 

Male adult literacy rate (2003 UNESCO) 49.9 

Female adult literacy rate (2003 UNESCO) 49.9 







(1995-2005) 

Source: 2007/2008 Human Development Report Indicators, 

Statistics for 2005 unless otherwise stated 

The Gambia Telecommunications and Multimedia Institute 

The Gambia Telecommunications Training Centre (GTC), 

which was established in 1992 with support from the UNDP 

and the ITU, was transformed into the Gambia 

Telecommunications and Multimedia Institute (GTMI) in 

1996. The GTMI continues to offer courses in electrical 

engineering and has developed new training programs on 

communication technologies, in order to meet the needs of 

the private sector. 

ICT Initiatives and Rural Connectivity 

HealthNet Gambia 

HealthNet Gambia was the first operational health network 

in The Gambia and was set up in 1993 by Satelife, based 

in Cambridge, Massachusetts, in the U.S. It aims to link 

health researchers and development workers through cheap 

electronic communication. At first, communication was by 

satellite, but now it is done by telephone polling twice a day. 

SatelLife pays all phone bills and even subsidizes the cost 

of modems. There are now about 30 points connected to the 

node, which is managed by volunteers, and about 100 users. 


http://www.healthnet.org/hnet/gam.html 



Medical Research Centre (MRC) 

MRC is a medical research facility offering standard PoP3 

and TCP/IP access using a 128-Kbit link from the gateway 

to MRC access servers. No monthly charges apply for medical 

personnel. 

For more information see http://www.mrc.gm 

Telemedicine in Ginnack 

In Ginnack, a remote island village on the Gambia River, 

nurses use a digital camera to take pictures of symptoms for 

examination by a doctor in a nearby town. The physician can 

send the pictures over the Internet to a medical institute in 

the UK for further evaluation. X-ray images can also be 

compressed and sent through existing telecommunications 

networks. 

For more information see http: 

//www.opt-init.org/framework/pages/appendix2/html




a9 

GhanaProfile 


Ministry of Communications 

Address: PO Box M.38, ACCRA 


National Communications Authority (NCA) 

Address: 1st Rangoon Close, 

PO Box CT 1568, Cantonments, ACCRA 


Ghana Investment Fund 

for Telecommunications (GIFTEL) 

Address: 6th Floor, 

Ghana Multimedia Centre, 

PMB GPO, ACCRA 


Ghana Information & Communications 

Technology Directorate (GICTeD) 

Address: PO Box AN 7367, 

Accra- North, ACCRA 


Contact Person: Dr. Benjamin Aggrey-Ntim 

Minister 

Telephone: +233 21 685 606 

E-mail: info@moc.gov.gh 

Website: www.moc.gov.gh 

Contact Person: Mr. Bernard Forson, Jr 

Director-General 

Telephone: +233 21 776 621 

E-mail: info@nca.org.gh 

Website: www.nca@nca.org.gh 

Contact Person: Mr. Abraham Kofi Asante 

Administrator 

Telephone: +233 21 665 6181 

E-mail: info@giftel.gov.gh 

kofiasante2002@yahoo.com 

Website: www.giftel.gov.gh 

Contact Person: Dr. Sam Somuah 


Telephone: +233 21 689 306 

E-mail: info@gicted.gov.gh 

Website: www.gicted.gov.gh 


145


The fixed-line telecommunications market hosts two competing 

operators, the incumbent Ghana Telecom (GT) and the second 

national operator Westel, which was licensed in 1996. GT 

controls over 98 percent of the market and is owned solely 

by the government, while Westel is undergoing privatisation 

with a 75 percent stake being appropriated by Celtel 

International. The government will retain control over the 

remaining 25 percent through its ownership of the Ghana 

National Petroleum Corporation. 

In contrast, the mobile telecommunications market is 

liberalised with four competing national operators. Three 

companies, GT Onetouch, tiGO and MTN, offer GSM services 

and mobile Internet services. Kasapa Telecoms uses the 

CDMA technology to provide services to consumers. All these 

operators provide both domestic and international services. 

GT Onetouch is a subsidiary of Ghana Telecom and has 

17.1 percent market share. TiGO is fully owned by Millicom 

Ghana Ltd and controls 26.3 percent of the market. 

MTN Ghana is fully owned by MTN Group and has 

52.7 percent of the market. Kasapa has the least share of 

the market at 3.9 percent and is owned by Hutchison Telecom. 

The ISP market is liberalised and competitive with over 

114 licensed ISPs in 2005; however, only 27 were operational. 

The ISPs are licensed to carry data services, but there is no 

clear regulation on voice services. Apart from GT and Westel, 

all the other ISPs are privately owned, and because of GT’s 

vast infrastructure, it controls much of this market. The 

Ghana National Fibre Backbone Company Ltd., formerly 

VOLTACOM, also owns considerable network infrastructure, 

which it leases to other telecommunications service providers. 


Ghana ICT for Accelerated Development Framework 2003 

To what degree competition actually will take place in a 

liberalised market will depend on the existence or expectation 

of profitable market conditions which will vary according to 

different market segments of the industry. 

j Policy measures to encourage competition might 

subsequently be necessary 

j Promotes equal and universal access to ICT services by 

establishing policy directives and initiatives that ensure 

access for rural and under-served communities 

j Provides for the implementation of a national telemedicine 

programme to support nationwide health service delivery 

including rural health services 

The National Telecommunications Policy 2005 

Specific objectives include the following: 

j Universal access for all communities to telephone, Internet 

and multimedia services by 2010 

j Universal telecommunications service to reach at least 

10 percent in rural areas 

j Connection of all schools, medical clinics and Government 

offices and public and community broadcasting stations 

to advanced telecommunications services 

146 



j Fully open, private and competitive markets for all 

telecommunications services 

j Streamlined, efficient and effective regulation of the 

telecommunications industry on a fully transparent, 

technologically neutral, and competitively balanced basis 

j Affordable prices for telecommunications services, 

particularly for low income citizens 

Establishes general framework for the functions and 

responsibilities of the NCA and of licensed operators in 

achieving effective competition. All operators are obligated 

to interconnect. Operators with SMP (controls 40 percent of 

relevant market segment) are subject to competition regulation. 

Directs the NCA to establish requirements allowing competing 

operators to co-locate their equipment on each other’s 

premises, under competitively neutral terms and conditions. 

Empowers NCA to regulate tariffs of operators with SMP and 

forebear where there is effective market competition. 

States that licensing and regulation shall be technologically 

neutral, to encourage economically efficient and innovative 

market development. Directs the NCA to establish a technologyneutral 

licensing regime for domestic telephone service to 

promote expansion of infrastructure and service availability 

in rural and underserved areas. 

Establishes a phased process of issuing up to three additional 

facilities-based international gateway licenses. Directs NCA 

to issue class authorisations to non-facilities-based terminating 

international telephone service providers, permitting the 

operator to use any technology. Directs the NCA to consider 

options for liberalising and regulating the provision of outgoing 

international telephone calling by non-facilities-based service 

providers with consideration of the impact on rollout and 

sustainability of rural Internet access points. Empowers NCA 

to regulate access to and pricing of SAT-3 transmission links; 

of which GT enjoys significant market power (SMP). 

No reference to technology convergence made in reference 

to the broadcasting sector. 

Provides for the Ghana Investment Fund for 

Telecommunications (GIFTEL) to promote universal access 

and universal service. All operators will have options and 

scope of contributions defined in their respective licenses. 

Provision of funds will be allocated on a competitive basis 

and honour the principle of public-private partnership, 

requiring a minimum number of bidders per potential project. 

Use of funds will be approved based on the project’s 

long-term financial sustainability and contribution to the 

policy’s social objectives. Projects in under-served areas that 

seek to increase basic rural connectivity, access to broadband 

services, development of relevant local content and government 

services will be prioritised. Encourages and prioritises the 

establishment of multi-purpose community telecentres and/or 

media services that combine broadcasting with Internet 

services in under-served areas.



The Ghana ICT Directorate (GICTeD) 

The GICTeD is the agency responsible for research and 

development efforts to introduce new and emerging 

technologies, standards, best practices and approaches for 

the distribution of government information, services and 

programs. 

Among other tasks, this includes the development and 

provision of a shared, streamlined government-wide physical 

infrastructure to enable e-governance, e-commerce, and 

innovative, multi-agency information technology projects. 

In addition to its e-governance functions, GICTeD is responsible 

for the following: 

j coordinating and overseeing the utilisation of funding for 

and administration of ICT initiatives 

j ensuring human resource capacity 

j measuring the impact of information technology and 

communications issues on the information economyincluding 

issues relating to technology and industry 

convergence 

j identifying and promoting the development of 

ICT infrastructure 

j establishing the regulatory environment and physical 

infrastructure needed for online services - including e 

commerce 

j advising on the application of new and emerging technology 

to Government administration, information and service 

provision 

Legislation Supported Rural Connectivity 

j National Communications Authority Act 1995 

Established the NCA regulatory body to regulate 

communications by wire, cable, radio, television, satellite 

and other means of communications technology and abolished 

the Post and Telecommunications Corporation monopoly. 


Established GIFTEL to collect levies from telecommunications 

licensees and redistribute funds to promote universal access 

and service. 

Clearly delineates the functions of the Ministry and the 

functions of the regulatory authority. 

j Telecommunications Bill 2006 

Further legislates on the role and powers of GIFTEL, which 

provides basic communications and Internet services in rural 

areas by awarding grants on a non-commercial but competitive 

basis. 

Direct disbursements of up to US$50,000 will be awarded 

to applications relating to unserved rural areas or applications 

providing ‘rural packages’ that aim to enhance access through 

public telephony kiosks or telecentres. 

GIFTEL may make recommendations on tariff rebalancing 

and initiation and termination costs to the NCA. 

Mandates that the NCA ensure that special interconnection 

rates encourage the provision of rural telecommunication 

services and that calls to rural areas shall not be priced higher 

than urban calls as a result of any special interconnection 

agreement. 

Will facilitate electronic transactions on a technology-neutral 

basis. 

j Electronic Transactions Bill 2006 

Will establish the National Information Technology Agency 

(NITA) to promote the provision of high quality information 

technology. 

j National Information Technology Agency Bill 2006 

Derived from the e-legislation legal framework to govern 

transaction, computer misuse, cyber security, data protection 

and electronic funds transfer. 

j Electronic Communications Bill 2006 

Will provide for spectrum management, testing inspection, 

and the power to request for information, rural communications 

services and monitoring, evaluation and tariffs for rural 

communications. 


The National Communications Authority (NCA) 

The independent telecommunications regulator, the NCA was 

established by the 1995 National Communications Authority 

Act with the following objectives: 

To ensure that communications services are as 

accessible as possible to satisfy demand for the services; 

To ensure that communication systems operators 

achieve the highest level of efficiency and are responsive 

to customers and community needs; 

To promote fair competition among communication 

systems operators; 

To protect consumer interest; 

To ensure availability of quality equipment; 

To research and develop new technologies and to 

develop adequate human resources. 

The Ghana Investment Fund for Telecommunications (GIFTEL) 

GIFTEL is a fund for collecting financial contributions from 

telecommunication licensees to be redistributed to promote 

universal telecommunications access and service at affordable 

prices and reasonable distances. The fund has been operational 

since the start of 2005. Universal service and access is 

defined in the 2005 Telecommunications Policy and the 

2006 Telecommunications Bill. The Bill outlines the following 

roles and responsibilities regarding universal service and 

access. 

147

Universal service 

The NCA must determine which public telecommunications 

services are subject to universal service obligations. Such 

services, at a minimum, will include high quality public 

telephone service, a free telephone directory for subscribers, 

operator-assisted information services, free access to emergency 

number information and telecommunications services 

accessible to disabled users. The NCA also has the power to 

require private telecommunications service providers and 

value-added service providers to contribute to universal service 

funding. 

Universal Access 

Universal Access includes access to affordable and highquality 

broadband information and communication services, 

including voice, data services, Internet, local relevant content, 

community radio and government services, as well as mobile 

and broadcast signal coverage throughout remote regions. 

All kindergarten, primary and secondary schools, colleges, 

universities, community health facilities, hospitals, telecentres 

and community centres should have access. Again, the NCA 

may also require private telecommunications service providers 

and value-added service providers to contribute to universal 

access funding. 

Sources of GIFTEL funds 

Contributions from operators as stipulated in their 

license obligations 

Other funds allocated by Parliament 

Funds accrued from investments made by the GIFTEL 

Board and, 

Grants, donations, gifts and other voluntary 

contributions 

National Communications Regulations 2003 

In an effort to achieve universal coverage, every 

communications service provider is required to extend its 

services to the entire geographic area for which it is licensed 

to serve, including low-density rural and remote regions. 


GT’s fixed-line infrastructure covers all 10 regions of Ghana, 

but is concentrated in Accra, Takoradi and Kumasi, which 

together constitute 70 percent of all fixed-lines in the country. 

GT also has fixed-cellular terminals covering all ten regions, 

including the rural areas covered by GT’s mobile 

subsidiary Onetouch. The incumbent national operator shares 

infrastructure, such as tower space, floor space, air 

conditioning, with the other telecommunications operators 

and ISPs. 

Westel is also required to provide rural connectivity, but as 

the relatively dormant SNO, its operations are restricted to 

corporate services in Accra. Services provided by Westel 

include both fixed-line and mobile services. 

MTN Ghana GSM mobile coverage extends throughout all 

10 regions of Ghana more extensively than GT’s, with some 

coverage in rural areas. MTN also shares towers, power supplies 

and shelter with Kasapa. Kasapa has coverage in 

7 of the 10 regions, providing service to some of the rural areas. 

148 




National Backbone Infrastructure 

GT owns the large proportion of telecommunications 

infrastructure in the country. Its network backbone is based 

on the Asynchronous Transfer Mode (ATM) transport technology, 

which is fast and reliable. GT also uses microwave, intercity 

fibre and Ghana National Fibre Backbone Co.’s fibre, which 

stretches from Kumasi, Nkawkaw, Accra, Winneba, and Cape 

Coast to Obuasi. 

The National Fibre Backbone’s infrastructure will be linked 

further up north of the country, and then connected to the 

SAT-3 network in Accra, to form a complete national backbone 

infrastructure as an alternative to GT’s. 

The Government has already signed an agreement with the 

Chinese government, which will provide a soft loan to finance 

the infrastructure, as well as build the network itself, and 

then hand ownership over to the Ghanaian Government and 

management over to a private enterprise. 

GT’s wireless infrastructure consists of GSM, VSAT, Wi-Fi, 

iBurst and WiMAX networks. Kasapa operates Ghana’s only 

CDMA network, which is based on CDMA2000 1X digital 

technology running at 800 MHz frequency. 

MTN Ghana has rapidly extended its infrastructure and 

increased its geographic coverage, building over 400 base 

transceiver stations, three base station controllers and three 

mobile switching centres in 2006 and 2007. It also built 

microwave backbone transmission rings to reduce 

future transmission costs and penetrate new areas. 32 

International Gateway Infrastructure 

Ghana connects to the rest of the world by satellite and to 

the SAT-3/WASC submarine cable with speeds ranging from 

64Kbps to 155Mbps. There are four Intelsat satellite earth 

stations, and the SAT-3/WASC grounding station is in Accra. 

SAT-3/WASC is owned by a consortium of 36 telecommunication 

companies, one of which is GT. Other Ghanaian telecommunications 

service providers must therefore buy capacity 

from GT or buy directly from Telkom SA, the cable’s network 

administrator. 

However, GT has the right to refuse the sale of capacity from 

Telkom SA to one of its competing national operators. 

Since the SAT-3/WASC cable is the only undersea cable system 

that Ghana has access to, there is a critical lack of redundancy. 

Most ISPs receive data on average at a speed of 2Mbps and 

run it to subscribers at an average speed of 1Kbps. 


Powerline communications have already been piloted in the 

country, but the breadth and reach of the national power grid 

is limited itself. The electricity supply is one of the main 

challenges facing telecommunications service providers. 

Many rural areas are still dependent on power generators. 

Alternative power supplies such as solar, hydro, thermal and 

wind have not yet been widely explored. 

32 Charles Amega-Selorm, Telecommunications Industry and Impact on ICTs 

in Ghana, 2007



In 2007, the government of Japan granted US$3.7 million 

to finance the second phase of the Rural Electrification 

Scheme in the country. According to the Minister for Foreign 

Affairs, Regional Cooperation and NEPAD, Hon. Akwasi Osei- 

Adjei, the project will be concentrated in the Upper Denkyire 

District in the Central region and will benefit 36,000. 33 


Table A.9 









Share of central government expenditure -that 

is allocated to education (2002-2005) 



(1995-2005) 

The adult literacy rate in Ghana is 57.9 percent, and 

approximately 52.31 percent of the adult population can 

read and write English. Approximately 29,000 students 

graduate from public universities and polytechnics each year, 

but computer education in schools of all levels is low. While 

computers are being introduced in schools, they are most 

often used as aids to teach other subjects, rather than as a 

subject in their own rite. The low penetration of personal 

computers (0.52 per 100 persons) 34 compounds the problem. 

Corrective steps are being put in place, both in the preschooling 

and tertiary levels, by introducing market/demand 

led curriculum. 

Graduates trained in IT find it easy to get jobs as there is 

high demand for IT graduates. However, IT graduates require 

a lot of in-house training to be able to meet job specifications. 

There continue to be opportunities in the telecommunications 

industry, as well as the software industry, banks and technology 

firms. 

The New Educational Reform35 The New Educational Reform is designed to help students 

develop technologically. To this end, the Ministry has embarked 

upon a programme to streamline computer studies in secondary 

schools. Already, a draft ICT policy has been prepared and 

submitted to Cabinet for approval. A curriculum has also 

been developed for ICT training and examination at the Senior 

High School Certificate Examination (SHSCE) Level. In 

addition, every effort is being made to provide telephone 

facilities to all senior secondary schools and training colleges 

to enable them have access to the Internet. 

33 Ghana: Japan Supports Ghana in Rural electrification, Allafrica, 

http://allafrica.com/stories/200708240944.html, August 24, 2007 

34 International Telecommunications Union 

Public-Private Partnerships for ICT Teaching and Learning 

The Ministry of Education has worked in collaboration with 

Microsoft, Intel, Oracle and Cisco to help improve the use 

of ICT in teaching and learning. Microsoft is involved in 

Partners in Education, a programme where Microsoft gives 

free software to educational institutions, up to the senior 

secondary level and teacher training colleges. 

Ministry of Education and Development Partner Initiatives 

A NEPAD e-Schools Project is currently ongoing in three 

secondary schools in the Central region. There is also the 

Ghana implementation of the Global e-Schools and 

Communities Initiative, which is a project initiated by the 

UNICT Taskforce and implemented by the Ministry of 

Education. A workshop on how to produce digital contents 

of the curriculum was also organised. Training programs have 

been organised for teachers on how to use ICT in teaching 

and learning. 

The Ministry of Education has also made provision for a .net 

laboratory at the Kwame Nkrumah University of Science and 

Technology (KNUST, Ghana’s only Science and Technology 

University) where students and workers can be trained. 

Government in collaboration with the Indian government built 

the Advanced Information Technology Institute-Kofi Annan 

Centre of Excellence (AITI-KACE) to develop the technological 

capacity of the citizenry in readiness for the information and 

Knowledge age. The Institute targets professionals and 

therefore courses are relatively expensive, ranging from 

US$300 to US$800 depending on the course and its duration. 

Course offerings range from software development, networking, 

information technology, open source software and 

CISCO certifications. 

The National Institute of Information Technology 

The National Institute of Information Technology (NIIT) 

launched its first centre in 2000 and within a year was 

Ghana’s largest IT training school. Students come largely 

from the corporate sector, including most major banks, 

software developers and IT training companies. In order to 

finance its expansion, NIIT Ghana obtained a US$ 230,000 

loan from the IFC, which it fully repaid in 2004. Course 

offerings include web development, linux certifications, 

networking, information technology, information systems 

security, network engineer certification and oracle applications. 

Fees range between US$500 and US$1200 depending on 

the course and its duration. 

Ghana Telecom University College 

Ghana Telecom University College offers courses relating to 

the telecommunications industry, such as a BSc in 

Telecommunications Engineering, a BSc in Computer Science, 

a BSc in Information Technology and a Diploma in Information 

Technology. Some Masters courses are available as well. 

Fees paid range between US$1500 and US$2500 

per semester. 

35 Allafrica, http://allafrica.com/stories/200709170985.html, September 2007, 

Ghana: Government officials and the New Educational Reforms 

149


E-ZWICH Smartcards 

E-Zwich is the brand name for the National Switch, under 

the new Universal Electronic Payments (UEPS) technology, 

which ensures that all commercial banks, rural banks and 

savings and loans institutions in Ghana implement a common 

payment platform and biometric Smartcard. To make this 

technology really feasible, the Ghana’s central bank has 

directed all banks to link their ATMs and Point of Sale 

terminals to the national switch. The advantages are enormous, 

since now a customer using a credit, debit or ATM card issued 

by a rural bank, can access cash from any ATM or POS 

terminal in the country, and in turn, a city dweller can access 

funds in the most rural parts of Ghana, wherever ATMs exist. 

E-Care 

E-Care is a project which establishes locally-owned and 

operated telecommunication centres in rural and peri-urban 

areas of Ghana. The e-Care centres run on solar energy and 

offer both telecommunications and clean energy services to 

their communities. 

Successful applicants must complete e-Care training in Accra. 

They are then given the opportunity to apply for a loan to 

cover 90 percent of the cost of purchasing an e-Care Centre. 

The pre-packaged centre comes to the village/town by truck 

in the shape of a modified shipping container with doors, 

windows, phone booths, a desk and ceiling fan. The centre 

is equipped with three fixed-cellular terminal phones, a solarpowered 

system and a computer with printer and is transported 

to an approved e-Care site in a rural area. Approved e-Care 

sites are found in rural areas with GT GSM coverage or 

GT Wireless Local Loop coverage. 

Since all centres are supplied with solar-powered systems, 

e-Care centres are often deployed in areas with no or poor 

grid power availability, which brings added benefit to the 

rural customers and is a competitive advantage for the success 

and sustainability of the centre. 

Today 69 centres are in successful operation in all the 

10 regions of Ghana. The centres are benefiting more than 

500,000 people in the affected communities. By the end of 

2008, e-Care aims to have at least 200 centres nationwide 

offering renewable energy powered telecom services to more 

than one million Ghanaians. 


http:www.ecareghana.org.gh 

150 



The Community Information Centre Initiative 36 

The Community Information Centre (CIC) Initiative, 

implemented jointly by the Ministry of Communications and 

GIFTEL, has built 92 CICs, equipped with computers, printers, 

scanners, UPSs and Internet facilities, etc. By project 

completion, all 230 constituencies in Ghana will have a CIC. 

CIC managers are trained by Ghana Multi-media Incubation 

Centre to ensure professional management of the centres 

and district assemblies help to monitor the activities of the 

CIC Managers. The CICs are resource centres providing access 

to information and communications services and will also be 

connected to all other CICs to facilitate information-sharing. 

The UNDP, World Bank and IICD have all been monitoring 

the progress of this project. Though it has not fully taken off, 

it has already started helping some communities with Internet 

services. 

TradeNet.biz and BUSYLAB 

This is a software platform designed to provide the very latest 

agricultural market information to stakeholders in most 

countries in West Africa. Accessed via SMS, fax, web, PDAs, 

farmers and traders can get daily price information, download 

video/audio files, access research documents, post buy/sell 

offers to the community, and contact other market participants. 

The concept is to make African markets more transparent 

and efficient, improve intra-regional trading, and provide 

stakeholders with enough recent and accurate information 

to make better decisions on bringing products to market and 

at what price. Partners include Techno serve, IFDC, CSIR, 

and Food Net in Uganda. 

The project aims to be sustainable by promoting partnerships 

and local ownership, developing an African network to share 

experiences and best practices in agriculture and helps build 

a formidable agricultural Information knowledge-base for the 

African region. Moreover, Busylab is constantly developing 

and updating the software in other to meet the growing 

demand. 

For more information see www.busylab.com and 

www.tradenet.biz 

36 Charles Amega-Selorm, The Community Information Centre (CIC): An Excellent 

Concept, January, 2008



Ghana Information Knowledge Sharing (GINKS) / 

IDRC Mfantsiman Project 

The Mfantsiman research project aimed to find out how to 

harness the potential of indigenous and modern knowledge 

towards poverty reduction in Ghana. 

The overall objective of the study was to enhance information 

and knowledge sharing among underprivileged communities 

in Ghana by defining mechanisms and tools to generate and 

disseminate relevant local content using appropriate and 

acceptable ICT formats. 

The research selected women food producers in Atakwa, 

Mfanstiman District, one of the less endowed districts in 

Ghana. 

The research helped to do the following: 

j Establish an ICT centre-Atakwa Community Centre for 

Agro information Sharing through ICTs (ACCASI) 

j Document the general profile of Mfantsiman and Ekumfi 

Atakwa 

j Articulate the agricultural information needs of food 

producers in Atakwa 

j Train community food producers in generating, repackaging, 

storing and disseminating agricultural content using 

modern ICTs 

j Link food producers to appropriate holders of capital 

(knowledge, funds, markets, etc.) 

j Build the research team’s capacity in project management, 

networking, knowledge-sharing and rural community 

advocacy and, 

j Develop a handbook of best practices and publish findings 

in journals 

For more information see www.ginks.org 

Sources of Funding 

j UNDP 37 

In 2007, the UNDP‘s Resident Representative in Ghana and 

the then Minister of Communications signed an agreement 

to build on a collaboration between the two to assist the 

Government of Ghana in realizing its ICT for Development 

goals. 

The UNDP and the Government of Ghana initiated and 

implemented the CIC programme, which seeks to bridge the 

rural digital divide and enhance ICT skills for economic 

development in the rural and underserved communities in 

Ghana. The expected outputs involve skills development for 

employment and income generation, increased information 

flow, capacity building and institutional strengthening. 

The programme period runs from 2006 to 2010 with an 

estimated annual budget of US$1,050,000, of which 

US$700,000 is allocated by the Government of Ghana and 

US$350,000 is contributed by the UNDP. 

j The International Institute for Communications 

Development (IICD) 

The Ministry of Food and Agriculture has been tasked with 

the development of a strategy and relevant programmes for 

implementing the relevant provisions of the Ghana ICT for 

Accelerated Development (ICT4D Policy). The Ministry of 

Communications requested further support from the 

International Institute for Communications Development 

(IICD) to develop sector policies, with agriculture being a 

priority area. The IICD has contributed €15,000 to the 

policymaking project. 

37 UNDP Country: Ghana. Annual Work Plan 2007 

151


a10 

KenyaProfile 


Ministry for Information and Communications 

Address: Teleposta Towers, Kenyatta Avenue, 

PO Box 30025, NAIROBI 

152 


Communications Commission 

of Kenya (CCK) 

Address: Waiyaki Way, 

PO Box 14448, 

00800 Westlands, NAIROBI 




Contact Person: Honourable Samuel Lesuron Poghisio 

Minister 

Telephone: +254 20 221 376 

Website: www.information.go.ke 

Contact Person: Engr. John N. Waweru 

Director General & CEO 

Telephone: +254 20 424 229 / 292 

E-mail: info@cck.go.ke 

Website: www.cck.go.ke 





Table A.10a below provides a quick glance at the number of 

market players licensed to provide various telecommunications 

services and how many are actually operational. 

Table A.10a 

Licence Category Total number Total number 

licensed operational 

Public data network operators 20 9 

Internet service providers 5139 

Local loop operators 19 4 

International voice gateway 3 3 

operators 

Internet gateway and backbone 8 4 

operators 

Commercial VSAT operators 6 5 

Leased Circuit Resale Service 3 1 

Providers 

Internet Exchange Point Service 2 1 

Providers 



The fixed-line telecommunications market is dominated by 

the state-owned incumbent Telkom Kenya Ltd. The operator’s 

five-year exclusivity ended in 2004, but no SNO was ever 

licensed. However, the regulatory authority has licensed other 

operators to compete with Telkom in the business sector. 

Nineteen operators were licensed to provide last-mile 

telecommunications services, four of which are operational. 

The number of fixed-line subscribers grew from 278,867 in 

June 2005 to 303,905 in June 2006. Out of the total 25,038 

new fixed-line subscribers, the two active local loop operators, 

Flashcom and Popote Wireless, served 15 percent. 

According to the regulator, the demand for telephone lines 

remains high. From 1999, the waiting list never dropped 

below 100,000 until June 2005. By June 2006, the waiting 

list fell to 64,618. The demand for and installation of 

payphones exhibits a similar decline in recent years, as seen 

in Table A.10b. 

Table A.10b 

Number of Installed Telkom Kenya Payphones 

June 1999 June 2003 June 2004 June 2005 June 2006 

8,397 9,964 9,769 8,967 7,232 


The mobile telecommunications market is liberalised and 

increasingly competitive. There are now three mobile 

telecommunications service providers, namely Safaricom, Celtel 

Kenya, and Telkom Kenya. Safaricom dominates the market 

with 7.96 million subscribers, representing 71 percent market 

share. Telkom Kenya just began mobile operations in the last 

year. 

Liberalisation of the market began with the enactment of the 

1998 Kenya Communications Act, which directed the 

regulatory authority, the Communications Commission of 

Kenya (KCCK), to license the newly privatized Safaricom 

Limited and a new market entrant, KenCell Communications. 

KenCell has since changed its brand name to Celtel Kenya, 

after Celtel International bought out 60 percent of shares. 

Liberalisation resulted in phenomenal growth in subscribers 

and geographic coverage. 

Over the last six years, the combined subscriber base of 

Safaricom and Celtel Kenya grew to twenty times the size of 

the fixed-line network. The two operators covered most of 

the areas required in their license obligations, but have also 

entered new markets on their own initiative as the market 

demands. 

Figure A.10a contrasts the phenomenal growth in mobile 

subscribers to the stagnant fixed-line market. 

Figure A.10a: Mobile vs Fixed Subscriber Growth 

7,000,000 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

0 



2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 

Total fixed line subscribers 

LLOs 

Period 

Total mobile subscribers 

Total fixed subscribers 

There are 51 licensed ISPs, 39 of which are operational. 

There are also two licensed Internet Exchange Operators, but 

only one is operational. 

153


j Telecommunications and Postal Sector Policy Guidelines 

1998 / Updated Guidelines 2001 

Aims to ensure the availability of efficient, reliable and 

affordable communication services throughout the country 

with the specific target objective to improve penetration in 

the rural areas from the 0.16 lines in 2001 to 5 lines per 

100 people by 2015. 

Recognises that the restructuring of Telkom Kenya Limited 

and a step-by-step liberalization of the sector is necessary 

to attract the private sector capital required to meet this 

target objective. Announces that Telkom Kenya Limited is 

to be privatized through a sale of 49 percent of its equity to 

a strategic investor. 

j National Information & Communication Technology 

(ICT) Policy 2006 

Aims to enhance universal service through the following: 

154 

Provision of adequate resources to the ICT sector 

Developing the requisite ICT infrastructure 

Creating incentives for service providers to deploy 

services in rural and under-served areas 

Establishing a Universal Service Fund 

Creating awareness of benefits of ICT to the public 

and, 

Developing knowledge-sharing networks at grassroots 

level 

Specific targets are as follows: 

Improve the fixed-line teledensity in rural areas from 

the current 0.33 lines to 5 lines per 100 inhabitants 

by the year 2015 

Increase the number of mobile subscribers from the 

current 4 million to 10 million by the year 2015 

Provide all primary schools with affordable Internet 

access by the year 2015; and all secondary schools 

and tertiary institutions to have affordable Internet 

access by the year 2010 and, 

Establish Internet access nodes at all district 

headquarters by 2010 

Provides for the establishment of a Universal Service Fund 

for the ICT sector, which will complement private sector 

initiatives towards meeting universal access targets and 

subsidise the cost of ICT infrastructure rollout to and 

ICT training in un-served and under-served areas. 

Aims to increase diffusion of ICT knowledge by providing for 

a national ICT Centre of Excellence with nationwide coverage, 

to promote capacity building and innovation. The Centre will 

partially be financed through the Universal Service Fund. 




j Kenya Communications Act 1998 

Established the regulatory authority, the CCK 

Aims to streamline and introduce regulatory standards 

in the information technology sector and increase the 

power of the CCK 

j Kenya Communications Amendment Bill 2006 

Amends the 1998 Kenya Communications Act, 

renaming it the Kenya Information and Communications 

Act, and creating regulatory, advisory and dispute 

resolution bodies to support the national information 

and communications technology policy 

Proposes the establishment of a Universal Service 

Fund under the CCK’s management. The fund shall 

support widespread access to ICT services and promote 

capacity building and innovation. It will be financed 

by levying licensed operators, returns on CCK’s 

investments and through gifts and grants 


The CCK was established by the Kenya Communications Act 

of 1998 and commenced operations in 1999. It is responsible 

for telecommunications licensing, universal service obligations, 

tariff regulation, market analysis, and industry and consumer 

affairs. 

The current licensing regime consists of 46 different types 

of licences grouped into nine categories. However, Kenya 

announced its new unified licensing regime in September 

2004, which is set to be fully adopted July 2008, after 

gathering stakeholder feedback and finalising the rules. 

The unified licensing framework will permit any form of 

communications infrastructure to be used to provide any type 

of communications service. It is being introduced gradually 

under a transition period, during which it will issue three 

types of technology-neutral licences (i.e., individual network 

operator (major) licence, non-facility based service provider 

(minor) licence, and frequency licence), before completely 

moving to the unified licensing regime.




Kenya's biggest mobile operator, Safaricom, has tapped into 

the rural market with considerable success by attracting 

customers, 80 percent of which are excluded from the 

traditional banking sector, with its now internationally 

recognized money-transfer scheme, M-PESA. M-PESA allows 

subscribers to send cash to other phone users by SMS. There 

is no need for a new handset or SIM card. 

To send money the customer pays cash to a registered agent, 

who then credits the customer’s virtual account. The tariff 

rates vary depending on the amount of money being transferred 

and whether the receiving party is a registered M-PESA user. 

The tariff structure is displayed in the Table A.10c below. 

Cash transfer is a highly demanded service among urban 

Kenyans supporting relatives in rural areas. Moreover, 

customers of the Safaricom network can keep up to 50,000 

shillings (£370) in a virtual account on their handsets for 

their own safekeeping at no charge. 

Table A.10c: Safaricom’s M-PESA tariff structure 

TRANSACTION TRANSACTION RANGE CONSUMER 

TYPE 

MIN MAX 

CHARGE (KSH) 

VALUE MOVEMENT TRANSACTIONS 

Deposit Cash 100 35,000 0 

Send money to 100 35,000 0 

registered M-PESA user 100 2,500 75 

2,5015,000 100 

Send money to non 5,001 10,000 175 

M-PESA user 10,001 20,000 350 

20,00135,000 400 

100 2,500 25 

2,5015,000 45 

Withdraw cash by 5,00110,000 75 

registered 10,001 20,000 145 

M-PESA user 20,00135,000 170 

Withdraw cash by 100 35,000 0 

non M-PESA user 

Buy airtime 20 10,000 0 

(for self or other) 

Source: http://www.safaricom.co.ke/index.php?id=266 


The current network infrastructure is a hybrid of fibre-optic 

and copper cable, as well as wireless GSM networks, VSAT 

networks, and Wi-Fi networks being used mainly in urban 

hotels. 


Table A.10d 













(1995-2005) 

According to Wawire and Nafukho, the higher education 

institutions in Kenya place less emphasis on the sciences, 

technology and engineering because of the relatively higher 

costs of these programmes and their incapacity to offer quality 

education in these subjects. They find that this shortage of 

skills and relevant knowledge has caused low economic 

growth. 38 

African Advanced Level Telecommunications Institute- 

AFRALTI 

AFRALTI is an inter-governmental organisation headquartered 

in Nairobi, which serves the entire ICT sector across Africa. 

Its key mandate is to provide human resources capacity 

building through high-level quality training, consultancy and 

advisory services to both ICT management and technical 

personnel. The Institute has created an advanced level training 

facility for middle and top-level telecommunications 

management in aspects of telecommunications network 

operations and management, telecommunications policy, 

regulation as well as computer technologies, in order to 

provide opportunities for the following: 

Training of skilled staff to develop, operate and maintain 

networks at national and international levels 

Coordinated and cooperative development of training 

facilities and courses throughout the sub-regions 

Improved level of technical education to increase the 

number of professional engineers and managers in the 

telecommunications administrations; 

Opportunity for technical staff to continue their 

education to obtain professional qualifications or further 

study at university; and, 

Training in the design and production of 

telecommunications equipment 

For more information see www.afralti.org 

38 Investment in Human Capital through institutions of Higher Education for the 

revival of Kenya’s economy 2006, Nelson W. Wawire & Fredrick M. Nafukho 

155

Kenya College of Communications Technology - KCCT 

The KCCT is a fully owned subsidiary of Telkom Kenya and 

Kenya’s premier institute of higher learning in telecommunication 

engineering, human resource management, postal and courier 

services. It aims to give quality training programs and courses 

to individuals and organizations, locally, regionally and 

internationally. 

It also provides courses and seminars in areas of management, 

information technology, telecommunications, engineering 

and operations. 

KCCT has a long working relationship with international and 

national organizations such as PAPU, UPU, ITU, JICA, ESAMI, 

INTELSAT, KIM and CCCA. 


The Village PDA - Partnership between ELCI and MediaSolv 

The Village PDA is a pilot project that aims to find solutions 

to overfishing of Lake Victoria by increasing information 

gathering and sharing. It is implemented by the Environmental 

Liaison Centre International (ELCI) and MediaSolv, which 

developed the PDA technology, at the Luo Community. 

156 



The project does not rely on existing telecommunications 

infrastructure but leverages the relatively low cost of the 

Village PDA technology (below US$25), which uses packetswitched 

satellite connectivity. The cost of connection depends 

on the volume of traffic (not on time spent online), and a 

single Internet connection linked to the wireless Personal 

Area Network can be used simultaneously by many users. 

With the VillagePDA, fishermen can record their observations 

regarding the environment of the lake, making data available 

to environmental researchers, who in turn can communicate 

with other fishermen for investigation. The information will 

be repackaged to suit the VillagePDA environment and stored 

at a remote server for Internet access. 

The PDA can also connect fishermen to their markets and 

help them attain the best possible price for their catch, 

by implementing a web-based auction to reduce the 

dependence on middlemen traders. The PDAs can also be 

used as simple messaging devices for the rural communities. 

Inmarsat is sponsoring the satellite-based Internet connectivity, 

and the new packet-switched services ensure that once the 

pilot programme is over, users will only get billed for the 

volume of data consumed and not on time spent online. 

Source: Balancing Act News – Issue 124, 2004




a11 

LesothoProfile 


Ministry of Communications, Science and 

Technology 

Address: Box 36, Maseru, 

3rd Floor Moposo House 


Lesotho Telecommunications Authority (LTA) 

Address: Moposo House, 6th Floor, 

Kingsway Road, 

PO Box 15896; Maseru 


Contact Person: Hon. Mothetjoa Metsing 

Telephone: +266 2232 4715 

Fax: +266 2232 5682 

Contact Person: Mr Monehela Posholi 

Telephone: +266 2232 5595 

+266 2231 1144 

E-mail: mposholi@lta.org.ls 

mqathatsi@lta.org.ls 

Website: www.lta.org.ls 


157



The fixed-line telecommunications sector is monopolised by 

the incumbent telecommunications operator, Telecom Lesotho, 

who was privatised in 2000 when Mountain Kingdom (Pty) 

Ltd acquired 70 percent, while the government retained 

30 percent. 39 In 2001, Telecom was granted a five-year 

exclusive licence to provide basic voice and data services 

within Lesotho and internationally. Its licence included certain 

exclusivity obligations, such as the provision, over a five-year 

period, of an additional 150,000 subscribers, of which 

25 percent had to be rural. However, during the third year 

of operation the additional connections were revised 

downwards, from 145 000 to 50, 000. 

The operator was given priority to apply for a second cellular 

licence and in 2002 Telecom Lesotho entered the mobile 

market as Econet Ezi-Cel Lesotho (EEL). In 2006, Telecom 

Lesotho’s fixed-line and international gateway exclusivity was 

extended for another year (and ended in February 2007) 


As noted above, there has been competition in the mobile 

market since 2002 when Tele-Com Mobile (Econet-Ezi-Cel) 

entered the market to compete with Vodacom Lesotho. 

Vodacom Lesotho retains control of 82.65 percent of the 

market, leaving 17.35 percent for Econet-Ezi-Cel. 

Vodacom Lesotho has been operating since 1996 and was 

fully privatised in 2000 when the government’s 12 percent 

shares were sold to Sekhametsi Consortium (Vodacom Group 

holds the majority 88 percent of shares). 

Both Vodacom and Econet-Ezi-Cel cover all major towns and 

settlements throughout the country and mobile subscribership 

(481,567) has far-outstripped fixed-line subscribership 

(43,340) according to the regulatory authority. 

Furthermore, both Vodacom and Econet-Ezi-Cel are obliged 

by licence to contribute 2 percent of gross annual turnover 

per annum to the LTA’s Universal Service Fund, if and when 

it comes into existence. 

Figure A.11a: Econet-Ezi-Cel Coverage Map 

Source: GSM Association 

158 




Bethlehem Technologies (BTL) started operations in 2002 

to compete with Telecom Lesotho as an international bandwidth 

service provider. BTL, 95 percent-owned by BTL London and 

5 percent by a local investor, transmits Internet and 

broadcasting services via satellite. 

Following the end of Telecom Lesotho’s exclusivity period in 

2007, Internet service delivery was revised to consist of three 

tiers, namely, 

Class A: International Internet Bandwidth Provider for the 

country (bandwidth acquired internationally); 

Class B: International Internet Bandwidth Provider for the 

country (bandwidth acquired internationally) and 

without own distribution infrastructure; 

Class C: Internet service provision via direct connectivity 

(or through secondary facilities from other service 

providers) to own clients (domestic and corporate 

clients etc.). Resells internet bandwidth acquired 

from Class A and Class B ISPs. 

There are now six commercial ISP service providers, namely, 

LEO, Comnet, Victory, Datacom, Adelfang and Newlands 

Communications. Telecom Lesotho, as a major network 

operator, also provides ISP services. 


According to the LCA, new policy is at advanced stages of 

development. For example, a draft Universal Service Strategy 

and Fund Guidelines are currently under legislative review. 

The USF is still at the proposal stage, but will be administered 

by a Universal Service Fund Committee (USFC). 

j Lesotho ICT Policy 2005 

Anticipates that by 2015, Lesotho will have successfully 

developed and deployed ICTs that narrow the digital divide 

between urban and rural areas. 

Aims to ensure universal access to ICTs by establishing ICT 

public access points in places such as post offices, schools, 

libraries and rural health care clinics 

Prioritises the construction of a health network that will 

enable institutions and individuals to exchange electronic 

records, share information and deliver quality services in 

both urban and rural areas, as well as promote the development 

of telemedicine applications so as to improve access to and 

lower the cost of health care services in rural and remote 

areas. 

Aims to link rural agricultural farmers to markets and increase 

access to ICTs for youth and women in rural areas. 

Strengthen the ICT Department as the lead implementing 

body of the ICT Policy and initiatives in the country. The 

Department is to establish a Universal Service Fund (USF) 

to promote universal access to ICT applications and services 

at an affordable price. 

39 http://www.itu.int/ITU-D/fg7/case_library/case_study_2/Africa/Lesotho.pdf 

and http://www.telecom.co.ls/about/profile.php



USF funds may be raised from the Government’s annual 

budget, a revenue share of all licensed operators and from 

development partners. All licensed operators, broadcasters, 

service providers, content developers, public access ICT 

telecentres, schools, hospitals, rural clinics and others will 

be eligible to receive funds 

Projects will be selected through established criteria, especially 

project sustainability, cost-effectiveness and applicability to 

the lives of Basotho. 


According to the LCA, new legislation is at advanced stages 

of development, such as the draft Convergence Bill, which 

upholds the LCA’s principle of technology neutrality. 

j Lesotho Communications Act 2000 

Established the independent regulatory authority, the Lesotho 

Telecommunications Authority (LTA). 

Section 48 mandates the Authority to establish and oversee 

the universal access strategy/fund. In regard to Universal 

Access, the Act states: 

“The Authority shall develop annual objectives for services 

to be provided with the purpose of ensuring that the public 

telecommunication service, in particular the basic telephone 

service, is accessible to the widest number of users and shall 

take into account the work and recommendations of the 

international and regional organisations to which Lesotho is 

a member. 

The Authority may establish a fund into which providers of 

telecommunication services (public and private) shall pay 

any fees the Authority may prescribe as universal access 

development fees? or the Authority may make it a condition 

of a grant of a licence that every provider of public 

telecommunication services shall establish a universal access 

fund the proceeds of which shall solely be used with the 

Authority’s approval for the development and expansion of 

its telecommunication service infrastructure in areas where 

there are no services and to provide access to widest users 

including those with disabilities.” 

The LCA could levy universal access fees or make license 

conditions requiring every service provider to establish an 

internal universal access fund, which shall solely be used 

with the LCA’s approval for infrastructure development and 

expansion in unserved areas. 

Section IV. How has regulation affected rural connectivity? 

The LCA Act restructured the Incumbent national operator, 

Lesotho Telecommunications Corporation, to establish an 

autonomous and independent regulatory authority, the LCA. 

The Act describes the rules and regulations governing the 

Authority and its functions as follows: 

j Promote, develop and supervise the provision of efficient 

local, national, regional and international telecommunication 

services in Lesotho 

j Take all reasonable steps to promote network development, 

universal service and access to telecommunication services 

j Ensure the efficient and effective use of the radio frequency 

spectrum 

j Promote the range and quality of telecommunication 

services and other consumer interests 

j Promote efficient management and human resource 

development within the telecommunication sector 

j Promote private ownership of telecommunication 

operations 

j Promote sustainable and fair competition between 

telecommunication service providers 

j Collect and disseminate information for use by the industry, 

consumers and prospective investors 

j Take reasonable steps to promote telecommunication 

services that will satisfy reasonable demands of least 

advantaged members of the communities for the provision 

of services such as emergency services, public call box 

services and directory information services; 

j Represent Government, in consultation with the Minister 

of Communications, in international matters relating to 


Source: http://www.lta.org.ls/Profile/mandate.html 

Regulatory Framework for the Provision of Internet Services 

2004 

The Framework opened the Internet market to competition, 

though still subject to licensing rules and regulations. No 

restrictions are placed in terms of number of participants in 

the market or range of services. 

The Framework allows ISPs to provide both fixed and mobile 

access infrastructure to their customers, but leasing of 

infrastructure to third parties was prohibited until 2006. 

Regulated bands are to be allocated on a first-come-firstserve 

basis together with the LTA’s regard to efficient allocation. 

All ISPs are allowed to acquire international Internet bandwidth 

in line with the liberalisation of the market (depending on 

the type of licence granted to the ISP). 

ISPs were prohibited from trading in VoIP until 2006. 

Reasoning for the restriction is explained in the 2002 Universal 

Service/Access Strategy: 

“We recognise that VoIP is a technology being deployed by 

other licensed operators to the detriment of our operations. 

Some licences have been issued by the LTA authorising VoIP 

under a “Calling Card Licence”. This feature, coupled with 

the fact the Lesotho is leasing bandwidth capacity from 

South Africa which is presently prohibiting the use of VoIP, 

affects relations of Telkom SA as the supplier of bandwidth 

and Telecom Lesotho which is itself prohibited from using 

the technology to carry voice over the leased lines of Telkom. 

These service licences do not only impair the revenue base 

for Telecom Lesotho but also impair the capabilities for 

Network development as the revenue base to support network 

development is eroded by these competing services that do 

not necessarily contribute to the development of the network.” 

159

Lesotho Telecommunications Authority Regulations, 2001 

Tariff rates may be subjected to the price cap regime 

determined by the LTA. 

The Authority shall determine the methods and procedures 

by which licence applicants may be selected, which methods 

and procedures may include, but are not limited to, competitive 

tendering, technical evaluation, auctioning and administrative 

review. 

The Authority may limit the number of licences which it will 

grant in respect of any particular type of telecommunication 

service. The Authority may also grant an exclusive license. 

Telecommunication services shall, as far as practicable and 

within the framework of the licensing system established by 

the Act, be provided on a competitive and non-discriminatory 

basis. These regulations also dictate interconnection 

obligations. 


Telecom Lesotho 

Telecom Lesotho is currently the only licensed operator that 

has been committed to universal access targets that are 

prescribed under its licence. It was obliged to provide 25,000 

lines by February 2003 and 30,000; 40,000; and 50,000 

in the subsequent years respectively; but did not meet its 

rural connectivity targets according to the LCA. 

The 2002 Universal/Access Strategy (which was never 

implemented) states the following: 

“In addition, Telecom Lesotho will be launching low Internet 

tariffs to encourage usage. Telecom Lesotho is in the process 

of taking the Internet to the community by means of 

communication outlets (Internet cafes) that provide both 

voice and data services. Telecom Lesotho would support 

provision of these services through establishment of telecentres 

at the identified sites. The sites for such centres are 

to be agreed with the LTA.” 

Telecom Lesotho partnered with the USAID-funded Leland 

Initiative to sponsor 10 schools with free Internet for a year. 

Telecom Lesotho is required by the LCA to interconnect with 

all operators. In addition, it shares infrastructure with its mobile 

subsidiary EEL, but shares only backhaul links with VCL. 

Econet Ezi-Cel 

Econet Ezi-Cel operates a GSM 900 network with 57 base 

stations, as of 31 March 2008. The Econet map below 

indicates EEC’s coverage areas and locations of base stations. 

Vodacom Lesotho 

The Vodacom GSM 900/1800 network is accessible in all 

10 districts, key towns and settlements around the country. 

With expansion to date, VCL has more than doubled its 

coverage since 2004 by increasing its base stations from 27 

to 78 to date. In addition, VCL uses Telecom Lesotho’s 

infrastructure to carry backhaul traffic. Like Telecom Lesotho, 

Vodacom Lesotho is required by the LCA to interconnect with 

all other service providers. 

The Vodacom map below shows both the areas already covered 

by VCL and its future network coverage. 

160 

Figure A.11b 

Source: Econet Ezi-Cel 

Figure A.11c 

Source: Vodacom Lesotho 



Roads 

Towns 

Current Coverage 

FutureCoverage 


Both mobile providers operate on GSM infrastructure (Vodacom 

Lesotho on 900/1800 and Econet Ezi-Cel on 900), and Telecom 

Lesotho’s fixed-line infrastructure is primarily copper with fibreoptic 

cable mainly in the lowlands.



Siemens Wireless Local Loop Network 

Siemens Information and Communications Group rolled out 

the first turnkey wireless local loop solution in Lesotho in 

2002. After just one month of implementation, subscriber 

connections were operational and 16 base stations were 

installed to cover up to a third to the projected 24,000 

subscriber capacity. The project targeted areas in the vicinity 

of Maseru, such as Berea Plateau, Abia and Thaba Bosiu. 

Between September 2002 and April 2004, the total number 

of WLL customers was 7,042, of which 97 are in the rural 

areas. Installations in the rural areas were powered by solar 

panels due to lack of electricity, and WLL was considered a 

cheaper and better option than VSAT. Challenges to the pilot 

included a lack of electricity in the rural and some urban 

areas, making the project dependent on more expensive solar 

power, thunder causing extensive damage to the equipment, 

and low average revenue per user (ARPU). However, the WLL 

solution had the advantages of rapid roll-out and reduction 

in copper theft. In general, technology solutions must be 

sensitive to the terrain of this country, which is mostly highland 

with plateaus, hills and mountains. 

The mountainous area accounts for more than 60 percent of 

Lesotho’s total geographic range, with less than 23 percent 

of Lesotho’s population residing in this area. 


In 2000, only 20,000 of 400,000 households were estimated 

to have electricity. Therefore, in 2001 the government set 

to restructure the sector and privatise the Lesotho Electricity 

Corporation. The government has since embarked on a rural 

electrification initiative and the LCA indicates that there is 

some potential for powerline communications. However, power 

outages owing to overload of the RSA power grid experienced 

throughout the country since April 2008 have resulted in an 

unreliable power supply. 

Figure A.11d 

Source: Lesotho Communications AuthorityHuman Capacity Building 


Table A.11 


Combined primary, secondary and 66 











(1995-2005) 

It is not always easy for ICT-related graduates to find jobs 

after completing their studies due to the limited size of the 

industry. Most students go for further studies after completing 

their studies at the Polytechnic. Some try to open their own 

companies/consultancies which are not always successful 

because of the size of the ICT industry. 

j The National University of Lesotho 

The National University of Lesotho is home to the Faculty of 

Science and Mathematics in the Department of Mathematics 

and Computer Science. 

j Lerotholi Polytechnic, School of Technology 

The School of Technology at the Polytechnic offers Diploma 

courses in Electrical & Electronic Engineering and Computer 

Systems Engineering. The Computer Systems Engineering 

programme was introduced in 2005/06 academic year. The 

two programmes have various subjects/modules in ICT and 

Telecommunications. There are two intakes in an academic 

year, with a maximum of 30 students per programme. 

j The Community Education Computer Society (CECS) 

CECS is a South African-based NGO which focuses on the 

development of ICT skills in the form of literacy programmes 

across southern Africa. Lesotho is one of six countries where 

CECS has a dedicated ICT literacy programme that was 

established with the support of the Open Society Initiative 

for Southern Africa (OSISA). 

The 80-hour programme on ICT literacy enables participants 

to use word processing, spreadsheet and presentation software, 

design a basic Web page using HTML, and perform 

basic computer troubleshooting and maintenance. 40 

40 Farrell, G. et al (eds) (2007) Survey of ICT and education in Africa Volume 

2: 53country reports 

infoDev 

161


j NEPAD eSchools Demo Project 

The NEPAD eSchools Initiative is a multicountry, multistakeholder, 

continental initiative that aims to impart 

ICT skills to young Africans in primary and secondary schools 

and improve the provision of education in schools through 

ICT applications and the use of the Internet. 

The first phase of the initiative is a demonstration project 

that is being implemented by the private sector partners with 

the following objectives: 

162 

Determine typical e-school scenarios and requirements 

in various circumstances in Africa 

Highlight the challenges inherent in a large-scale 

implementation of e-school programmes 

Monitor the effectiveness of multi-country, multi 

stakeholder partnerships 

Determine best practice and exemplary working models 

for the large-scale implementation of the initiative, 

which aims to equip more than 550,000 African 

schools with ICTs and connect them to the Internet 

Demonstrate the costs, benefits, appropriateness, and 

challenges of a satellite-based network and, 

Demonstrate the costs, benefits, and challenges of 

ICT use in African schools. 

Lesotho is one of the 16 countries where the Demo Project 

was coordinated by a dedicated country liaison person based 

at the Ministry of Education and Training. Oracle and Microsoft 

are two companies that formed consortia to support the Demo 

Project in 6 Lesotho high schools where the typical model 

involved fitting each school with a lab comprising approximately 

20 PCs, a server and printer, and a media lab which in some 

instances included a PC-based kiosk containing health 

information and satellite television access to education 

channels. Teachers at the six schools received training, and 

learners have subsequently used the PC labs in the classroom. 

The Demo Project was launched by the Prime Minister of 

Lesotho, which gave the project significant prominence. The 

success of the NEPAD eSchools Demo Project in Lesotho is 

attributed to the support and buy-in at the highest level. 

The project has reportedly influenced thinking among 

policymakers in Lesotho and has created huge demand. 41 

41 Interview with Lesotho Ministry of Education and training representative in 

Farrell, G. et al (eds) (2007) Survey of ICT and education in Africa Volume 

2: 53country reports infoDev p. Lesotho 8 






a12 

MalawiProfile 


Ministry of Information and Civic Education 

Address: Telecoms Division HQ; 

Private Bag 310; Capital City; Lilongwe 


Department of Information Systems 

and Technology Management Services 

Address: Private Bag 326, Lilongwe 3 


Malawi Communications Regulatory 

Authority (MACRA) 

Address: Salmon Amour Road, 

Private Bag 261,Blantyre, Malawi 


Contact Person: Hon. Patricia Kaliati 

Telephone: +265 177 3233 

Fax: +265 177 4568 

Website: www.malawi.gov.mw 

Contact Person: Mr. Davidson Chirwa 

Ag. Director, Communications 

E-mail: mlrwoka@yahoo.co.uk 

Website: www.malawi.gov.mw 

Contact Person: Dr. Allexon Chiwaya 

CEO 

Telephone: +265 1 623 611 

Fax: +265 1 623 890 

E-mail: achiwaya@macra.org.mw 

Website: www.macra.org.mw 


163


Fixed-line Telecommunications Market 

The fixed-line market is partially open to competition. 

The incumbent national operator, Malawi Telecommunications 

Ltd. was privatised in 2006, when the government shed 

80 percent of its stake to a private sector consortium, 

the Press Group Consortium, comprised of Press Corporation, 

Old Mutual, National Insurance Corporation, and Commonwealth 

Development Corporation capital partners with Detecon as technical 

partners. To demonstrate its commitment to the process, 

the Government has ceded management control of the company. 

TheSNO, Access Communications, was recently granted a license 

in 2007, and has yet to start operations. Access Communications 

intends to run a CDMA 2000 compliant network and offer wireless 

fixed-line telephony, voice and data services to rural communities, 

SMS services, voicemail, high-speed wireless Internet services 

and low cost calling card services. 

Mobile Telecommunications Market 

The mobile telecommunications market is partially liberalised 

since its opening to competition in 1998. There are now two 

mobile operators, Telekom Networks Malawi and Celtel Malawi. 

Table A.12a 

Source: GSM Association 

164 

Mobile Ownership Market 

Operator share (%) 

TNM Licensed in 1995, 40.59 

with Telekom Malaysia 

holding 60% and MTL the 

Incumbent national operator 

40% of the shareholding 

Celtel 100% Mobile Telecommunications 59.41 

Malawi Ltd Company of Kuwait (Zain) 

Figure A.12a: Celtel Malawi GSM 900 Coverage Map 

ISP Market 



The ISP market is fully liberalised, following the enactment 

of the 1998 Telecommunications Policy, which emphasises 

that access to the Internet and to the growing variety of data 

and other value-added services is vital for business services 

and the community at large. Thus, provision of non-basic 

telephone services including Internet, e-mail, data, 

paging, etc. was opened and there are currently 21 ISPs. 


Communications Policy 1998 

Directs the government to establish a single independent 

regulatory authority to regulate telecommunications, posts, 

broadcasting and the radio frequency spectrum. 

Aims to ensure extension of modern telecommunication services 

to rural areas. The Ministry will design a programme with specific 

targets for the provision of public telecommunication facilities 

in rural areas, through payphones, community phones and other 

means. In addition, community information centres bringing 

together public telecommunications and other means of access 

to information will be developed in rural areas. 

The regulator, MACRA, will ensure uniform installation and 

rental charges regardless of the distance from the telephone 

exchange, so that rural users do not pay disproportionately 

higher charges than urban users. 

Malawi Rural Communications Policy 2002 

Clarifies how the Government intends to provide access to 

basic telecommunications for the rural population and 

underserved areas, in particular, those areas considered 

unprofitable. 

Establishes a Rural Telecommunication Forum (RTF) to 

oversee rural telecommunications development and serve as 

an advisory body to the government and MACRA. 

Establishes a Rural Telecommunication Development Fund 

(RTDF) to contribute to the capital cost of local network 

equipment and facilities, but will not be used to subsidise 

operations. 

Directs MACRA to continue ensuring that individual licences 

to provide public telecommunication services contain specific 

commitments to expand coverage of fixed and mobile services 

as far as are commercially feasible and without subsidy. 

Encourages the provision of payphones in rural areas. A new 

form of licence will be issued enabling the establishment of 

independent local telephone networks in rural areas. Licenses 

do not convey exclusivity and will be issued on a competitive 

basis. Payphone tariffs should not be subsidised for rural 

areas. However, the tariffs may vary from area to area and 

over time within a general tariff basket to be approved by 

MACRA. The local licensee shall have the right to interconnect 

its local network with the networks of all the other 

telecommunications operators.



Considers providing the following incentives to assist the 

establishment of local networks: 

j Permitting the rural non-business subscriber home to be 

a shareholder in the licensee, as permitted in the USA 

rural cooperative model 

j Exemption of customs duty and taxes on equipment 

j Exemption of income tax on net income from operating 

local telecommunication services in rural areas 

j Providing as an incentive the right to provide service in 

the urban area when 50 percent of the rural area has 

been served 

Encourages innovative technical standards and technology 

neutrality to ensure, for example, affordability and the use 

of VoIP. 

Directs MACRA to adopt special interconnection rates for 

rural telecommunication service providers. Thus, interconnection 

negotiations must establish a fair sharing 

mechanism to ensure that rural telecommunications operators 

are fairly compensated for carrying the service to its final 

destination in rural areas. 


Among its many objectives to modernise the agricultural 

sector for the development of rural areas is the aim to promote 

deployment and leverage of ICTs to support production, 

processing, marketing and distribution of agricultural products 

and services. 

The Government will use ICTs to do the following: 

j Promote the development of electronic agriculture 

information systems to support the planning, production, 

storage and distribution of crops, livestock, and fisheries 

products 

j Develop and implement suitable irrigation methods and 

techniques and, 

j Encourage market research to improve access to foreign 

markets for both traditional and non-traditional exports 

Aims to improve public access to information and services 

by sensitising and training rural communities in ICTs, building 

facilities to promote ICT training, and enhancing access to 

ICT services through rural community libraries and resource 

centres. 

Aims to promote equal and universal access to ICT services 

and resources in rural communities and underserved areas 

by: 

j Developing ICT infrastructure in rural communities 

j Accelerating the process of the provision of e-government, 

e-health, e-learning, and e-commerce services and 

j Developing and implement village information and 

communications infrastructure (VICI) initiatives targeting 

the implementing of NICI programmes at the local 

government and district administration levels 


j Malawi Communications Act 1998 

Establishes a legal framework for the regulation and provision 

of telecommunications, broadcasting and postal services. 

Establishes the independent regulatory authority, MACRA. 

Restructures the Malawi Posts and Telecommunications 

Corporation (MPTC) into separate telecommunications and 

postal businesses, privatising Malawi Telecommunications. 

Allows MACRA to include the provision of services to rural 

or other specified areas in any licensing conditions. 


The 1998 Communications Act established the independent 

regulatory authority, the MACRA, which has the following 

main functions: 

j licensing telecommunications, postal and broadcasting 

operators 

j settling disputes among operators 

j approving tariffs 

j promoting and monitoring free and fair competition 

j allocating and managing the radio frequency spectrum 

j managing the numbering plan 

j type approving terminal equipment 

j protecting consumers 

The 1998 Communications Act also puts in place a legal 

framework for the regulation and provision of services in 

telecommunications, broadcasting and posts. 


Celtel Malawi has no mandatory universal access obligations 

in its licence but has nevertheless implemented a notable 

universal access initiative with the UNDP. In 2007, Celtel 

began to introduce kiosks to rural areas offering pay phone 

services to the poor, and other services made available through 

General Packet Radio Service (GPRS) technology. These 

kiosks will operate as independent business outlets. 

UNDP’s Growing Sustainable Business (GSB) designs a small 

business loan scheme to provide the kiosk owner with the 

initial start-up capital that s/he will need in order to lease 

the kiosk and equipment. This scheme is meant to promote 

and facilitate small businesses in rural areas, and also to 

allow Celtel to roll out its kiosks more quickly, once the initial 

pilot proves a success. Furthermore, GSB is helping Celtel 

to identify additional value-added services that the kiosk 

owner can offer to its clients. 

For more information see www.undp.org/partners/business/gsb 

165

Figure A.12b: Celtel Malawi Coverage Map 


The Potential for Powerline Communications 

The potential for powerline communications is limited by the 

inadequate, unreliable and inaccessible power supply, 

especially in rural areas. The majority of the rural population 

uses bio-fuel (wood and charcoal) as its primary source of 

energy. 

166 

Celtel coverage areas 

Celtel new coverage areas 

Main towns 

Water areas 

Source http://www.mw.celtel.com/en/ 

get-connected/coverage/index.html 



The government, through the 2007 Malawi and Growth and 

Development Strategy, intends to improve efficiency in 

generation, transmission and distribution; accelerate regional 

interconnectivity; construct mini-hydro-power stations along 

the major rivers and expand the Rural Electrification Programme, 

including the use of solar energy off the power grid. 

Human Capacity Building and Rural Connectivity 

Table A.12b 






Female adult literacy rate 54 





Tertiary students in science, engineering, -manufacturing 

and construction 

(1995-2005) 

Malawi policy on education aims to develop an efficient and 

high quality system of education that is appropriate to both 

the available resources, and the political, social and economic 

aspirations of the nation. The object is to equip students 

with the skills and desire for self-employment and 

entrepreneurship, rather than conventional wage employment. 

The Ministry of Education and Human Resource Development 

is responsible for the provision of primary, secondary and 

tertiary education. The vocational and technical education 

is, however, under the Ministry of Labour and Vocational 

Training. Although the Government is the major provider of 

education, the private sector is also playing a significant role 

in the provision of primary, secondary and tertiary education. 42 

The quality of secondary education varies widely. In general, 

fees in private schools are more than 50 times that in public 

schools. 

At the tertiary level, Malawi has two universities: the University 

of Malawi, which opened in 1965, and Mzuzu University, 

which opened in 1997. There are also a couple of technical 

and training colleges offering various vocational related 

courses lasting between six months and four years. Primary 

school teachers are trained in primary teacher-training colleges. 

Secondary school teachers are trained at Chancellor College, 

which offers a four-year educational programme, and at a 

college of education for secondary school teachers at Domasi 

in Zomba amd Mzuzu University (Shafika Isaacs, ICT for 

Education in Malawi 2007, www.infodev.org) 

42 Development of Education in Malawi, 2004 Report, 

http://www.ibe.unesco.org/International/ICE47/english/Natreps/reports/malawi.pdf

Malawi Vision 2020 



The mission statement states that by the year 2020, Malawi 

as a God-fearing nation will be secure, democratically mature, 

environmentally sustainable, self reliant with equal opportunities 

for and active participation by all, having social services, 

vibrant cultural and religious values and a technologically 

driven middle-income economy. 

The Vision envisages Malawi to be a science and technologydriven 

economy. This is to be achieved through improved 

science and technology education, training and culture; 

increased commercialization of research and development 

(R&D); adaptation and promotion of new and emerging 

technologies; promotion of environmentally-sound technologies; 

and increased implementation and use of information 

technology. The Vision points out the fact that the capacity 

of education and training institutions to meet the requirements 

of the country's technological development is currently low. 

It also entails reviewing school curricula; promoting and 

encouraging skills training and development; and developing 

science and technology culture. 

In order to meet the above challenges, the strategic options 

include the following: 

j strengthening S&T education 

j introducing specialization in the teaching of science 

subjects 

j formalizing science curriculum in primary schools as a 

building block and prerequisite for secondary school 

science; redesigning curriculum so that physics, chemistry, 

and biology are taught separately 

j introducing and promoting computer studies 

j strengthening the teaching of technical subjects 

and emphasizing applied science 

j setting up scholarships for graduate studies in Malawi in 

priority areas 

j addressing the problem of brain drain from other sectors 

and, 

j introducing S&T achievement awards 


The policy emphasises the need to equip students, especially 

at the primary school level with basic knowledge and skills 

to enable them to function as competent and productive 

citizens; to provide an academic basis for gainful employment 

in the informal, private and public sectors; and to produce 

high quality professionals with relevant knowledge. 

The policy aims at developing the ICT sector and promoting 

the development and use of ICTs in all sectors as a measure 

to achieve socio-economic development of the country. Eight 

key thematic areas have been identified, including human 

capital development and education. 

In order to address human capital development challenges, 

the policy aims to: 

j Facilitate the deployment, utilisation, and exploitation of 

ICT within the educational system in order to improve 

access, quality, relevance, and delivery at all levels 

j Achieve universal basic ICT literacy and improve the level 

of ICT literacy in the country 

j Transform Malawi into an information- and knowledge 

driven ICT literate nation 

j Improve the management of education systems through 

the utilisation of ICT 

The Malawi Government intends to use the following strategies 

to achieve the above objectives: 

j Mainstream ICTs throughout the entire educational system 

to promote lifelong learning 

j Ensure that primary and secondary schools and colleges 

have adequate and reliable computers 

j Build facilities to promote ICT and computer-aided training 

at all levels including primary schools and nurseries 

j Intensify ICT education and training in all training 

institutions 

j Encourage collaboration between local and international 

educational institutions to facilitate educational exchange 

and promote ICT education and training 

j Facilitate collaboration between the Ministry of Education 

and various accreditations 

j Introduce ICT technical colleges in all regions of the 

country 

j Promote e-learning and e-teaching including e-distance 

education, training, and virtual learning systems to 

complement and supplement face-to-face campus, 

televised, and broadcast education and training 

systems 

j Ensure that all local universities and colleges take steps 

to progressively offer their programmes and courses on 

line to broaden access to higher education to a large 

section of the population 

j Promote awareness on available opportunities to enable 

students, teachers, and educational institutions to purchase 

ICTs 

j Facilitate the automation of libraries as a tool for 

e-research and e-learning 

j Set up special libraries to support ICT research and 

development 

j Plan for human resource development and enhance 

technical, managerial, and operational skills in the use 

and deployment of ICTs in the public, private, and informal 

sectors. 

j Reach out to under-served disadvantaged communities 

by promoting local content and applications in the 

ICT sector to meet the needs and requirements of the 

nation. It has a specific objective to build the capacity 

of women, youth, and other disadvantaged groups. 

For more information 

http://www.malawi.gov.mw/publications/nationalICT4D 

Policy.htm 

167


Computers for Malawi School Scheme 

The Computers for Malawian School scheme is jointly 

administered by the British Council and SchoolNet Malawi. 

The British Council repairs and distributes ICT equipment 

to the recipient schools, which are selected based on their 

facilities and security. Each beneficiary school receives 

10 to 15 computers and a printer. 

The British Council also arranges to train all teachers at the 

recipient schools. The Malawian Ministry of Education has 

developed an ICT curriculum. 

The long-term goal is to ensure that all secondary schools 

with access to electricity are equipped with ICT labs. 

For more information see www.schoolnetmalawi.org 

168 






a13 

MauritiusProfile 


Ministry of Information Technology 

& Telecommunications 

Address: Level 9, Air Mauritius Centre, 

President John Kennedy Street, Port Louis 


Information and Communication 

Technologies Authority (ICTA) 

Address: Level 12, The Celicourt, 6, Sir 

Celicourt Antelme Street, Port Louis 


National Computer Board, ICTA 

Address: Level 12, The Celicourt, 

Sir Celicourt Antelme Street, Port Louis 


Contact Person: Mr. Noorani Oozeer 

Permanent Secretary 

Telephone: +230 210 0201 

E-mail: anoozeer@mail.gov.mu 

Website: www.telecomit.gov.mu 

Contact Person: Dr. Krishna Oolun 

Executive Director 

Telephone: +230 211 5333 

E-mail: oolun@icta.mu 

Website: www.icta.mu 

Contact Person: Mr. Kemraz Mohee 


Telephone: +230 210 5525 

E-mail: kmohee@ncb.mu 

Website: www.gov.mu/portal/sites/ncbnew/main.jsp 


169



The telecommunications market has been liberalised since 

2003. However, up to now, Mauritius Telecom, the incumbent 

operator, remains the dominant operator of fixed-line voice 

and data services in the country. 

The market has been opened to full competition. The SNO 

is MTML which offers both wireless and fixed telephony 

services. However, Mauritius Telecom, which entered into a 

strategic alliance with France Telecom in 2002, enjoys a 

quasi monopoly in the fixed-line services. 

Table A.13a: Fixed-line Operator’s Ownership and Market 

Share 

170 

Provider Ownership Market Share 

Mauritius Telecom France Telecom: 40% 85% 

(privatised in 1992) State Bank 

of Mauritius: 19% 


The mobile telephony market is fully liberalised. 

The two main operators are Cellplus, which is a subsidiary 

of Mauritius Telecom, and Emtel. MTML also offers mobile 

services and has captured 10 percent of the market. 

Table A.13b 

National Pension 

Fund: 6.55% 

Government of 

Mauritius: 34.45% 

MTML 

(entered in 2004) MTNL India: 100% 15% 

Provider Ownership Market Share 

Cellplus Mobile Mauritius Telecom: 55% 

100% 

Emtel Belgacom (ownership 35% 

not specified) 

MTML MTNL India: 100% 10% 




The ISP market is fully liberalised with the following 5 ISPs 

and their captured market share: 

j Telecom Plus - 50 percent 

j Emtel - 35 percent 

j ABD - 9 percent 

j DCL - 2 percent 

j MCS - 4 percent 


j The National ICT Strategic Plan (NICTSP) 1998 

Recommends review of the telecommunications licensing 

regime and migration towards more unified/converged regime. 

Recommends development of a National IP Policy to govern 

activities over IP networks, including Universal access/service 

provisions. 

With respect to convergence, supports a judicious mix of 

decentralised self-regulatory codes and standards and a 

centralised approach in hands of the regulator, for example, 

the recommendations made for VoIP adoption. Also cautions 

against premature responses before clear trends have had 

time to emerge, for example, discussion and deliberation on 

Next Generation Networks (NGN). 

Recommends two-phased transition to broadband deployment; 

feasibility study followed by rapid rollout. Powerline, fibre 

and wireless options such as Wi-Fi and WiMAX to be explored. 

Recommends development of policy and guidelines for the 

adoption of NGN, including aspects of government facilitation, 

competitiveness imperatives, innovation and investment. 

Encourages infrastructure sharing in a transparent and nondiscriminatory 

way and mandates all operators to publish 

details of their entire available infrastructure with extent of 

possible sharing. 

Encourages the introduction of VoIP by promoting an 

environment conducive to development of IP technology, 

stipulating licensing requirements, and adoption of an 

evolutionary approach towards regulatory measures, including 

industry self-regulation, quality of service issues and the 

development of technical interface standards. 

Suggests Local Loop Unbundling preceded by a comprehensive 

cost-benefit evaluation for determination of the prices to be 

charged and services to be extended to new entrants by the 

incumbent.




Objectives include the following: 

j To promote Mauritius as a key info-communication hub 

in the region 

j To create a modern, secure, robust and efficient 

telecommunication infrastructure taking into account 

convergence of info-communications, media, 

telecommunications and consumer electronics 

j To ensure ubiquitous access to affordable info 

communications services 

j To promote smooth entry of new operators in the 

telecommunications sector 

j To attract private investment for effective competition 

j To encourage research and development to facilitate the 

absorption of new technology and to upgrade the current 

telecommunication facilities and services 

Aims to introduce a Convergence Act, which will combine 

information technology, media and telecommunications. 

Directs the regulatory authority to adopt a technology-neutral 

approach to licensing. Encourages the use of Internet telephony 

and VoIP. 

Directs a revamping of the access regime in order to allow 

any-to-any network connectivity at reasonable costs. 

Encourages co-location and facilities sharing. 

Directs the regulatory authority to establish appropriate 

regulations for the deployment of proper schemes and models 

to ensure that the unbundled network-element (local loop or 

international) market are effectively liberalised. 

Replaces the emphasis on universal access with emphasis 

on universal service, involving the extension of the network 

and facilities to reach all persons in the service area. 

Emphasises the ability to use the public access services 

(voice/fax services, the Internet, electronic mail, text message 

services) whether it is located within a household or not. 

Following are the main elements of universal access: 

j Availability of affordable telecommunications and 

ICT services to the public 

j High transmission speeds, utilising state-of-the-art 

technologies 

j Education of the local people on the benefits of ICTs 

j Full-range, public access to payphones, shop-like 

telecentres, community telephone centres, community 

Internet terminals, and tele-boutiques that market mobile 

phone service on a per-call basis 

The Universal Service Obligation (USO) is the obligation 

placed on operators and service providers to ensure that 

standard voice/fax services, payphones, Internet services, 

text message services, E-mail, and prescribed infocommunications 

services are available to the whole population 

in Mauritius at affordable and reasonable prices. 

Provides for a USF to be established and administered by 

the regulatory authority, to raise the resources to meet the 

USO. Contributions would be made by all operators under 

the different licenses and equivalent to a percentage of their 

annual revenue. Both facilities-based and service-based 

carriers would be eligible to receive USF funds. In the 

implementation of USF, the regulatory authority will establish 

a USF advisory group which will represent public operators, 

industry representatives, consumer associations and 

government officials and advise on the most efficient and 

effective utilization and operation of the USF. 

This advisory group shall also be responsible to explore the 

possibility of utilizing these funds for other ICT based public 

service projects in fields such as education, health and social 

welfare. 

The ICT Implementation Agency 

The National Computer Board (NCB) was set up in 1988 by 

the National Board Act to promote the development of ICTs 

in Mauritius. It is a para-statal body administered by a Board 

of Directors and operates under the aegis of the Ministry of 

Information Technology and Telecommunications. 

Its core mission is now to accelerate the transition of Mauritius 

into a regional ICT hub, a Cyber Island, and ensure the swift 

realization of government's objective to make of the ICT sector 

a fifth pillar of the economy. 

The NCB is involved in the elaboration of ICT policy and 

strategy, the promotion of the ICT industry and the promotion 

of ICT awareness and training at the community level. It runs 

an incubator centre to promote start-ups in the ICT sector 

and an e-government centre. 


j National Board Act 1988 

Established the NCB to promote the development of ICTs. 


Established the Mauritius Telecommunications Authority. 

j Electronic Transactions Act 2000 

Establish the legal infrastructure necessary to regulate 

electronic commerce. 

j ICT Act 200 

Establishes the Information and Communication Technologies 

Authority, the Information and Communication Technologies 

Advisory Council, the Information and Communication 

Technologies Appeal Tribunal and provides for the regulation 

and democratisation of ICTs. 

Instructs the ICT Authority to establish and manage a Universal 

Service Fund and to determine the universal service obligation 

as part of the licensing conditions. 

171


The 2001 ICT Act established the ICTA, the national regulatory 

authority for the ICT sector and Postal Services in Mauritius. 

Its vision is to play a leading role in the future of ICT in 

Mauritius, contributing to an efficient, competitive and 

optimally regulated ICT sector. 

Universal Access and Service 

The 2004 National Telecommunications Policy provides 

comprehensive guidelines on the universal service obligation 

and the 2001 ICT Act established the USF under the 

management of the ICTA. Every public operator pays a 

universal service levy into the USF to fund the universal 

service obligations. 

Interconnection Regulation 

Section 28 of the 2001 ICT Act dictates that every network 

licensee shall grant access to his network (interconnect). 

Where the operators cannot come to agreement about proposed 

interconnection, either party may request the ICTA to act as 

an arbitrator. In this case, the ICTA must specify the following: 

j The facilities and the network covered by the award 

j The extent of any network over which one party is required 

to carry information and communication messages 

j The points and technical standards of interconnection 

j The rates of interconnection 

j The effective date of the award 

Tariff Regulation 

Only wholesale tariffs are subject to tight control of the 

regulator and are determined based on the expected return 

on investment. The retail market is left to market forces. 

Infrastructure Sharing 

Under the law, all operators have the obligation to provide access 

to its network infrastructure and facilities. 


The following institutions offer courses and degrees in 

ICT-related fields: 

j The University of Mauritius 

172 

MSc Information and Communication technologies 

MSc Information Technology (Conversion) 

BSc (Hones) Information technology 

BsC (Hons) Information Technology (upgrade 

programme) 



j The University of Technology 

MSc Information Systems (Conversion) 

BA (Hons) Communication 

BSc (Hons) Information Technology Enabled Services 

j Swami Dayanand Institute of Management 

Polytechnique Diploma Information and Communication 

Technology 

j Institut Supérieur de Technologie 

Polytechnique Diploma Information and Communication 

Technology 

j Industrial and Vocational Training Board 

Diploma in Information Technology 

Higher National Diploma in Telecommunications 


Community Empowerment Programme (CEP) 

The NCB initiated the Community Empowerment Programme 

(CEP) to empower the citizens of Mauritius to build an 

information society. It aims to enable the creation and sharing 

of information and knowledge for community development. 

The CEP is in line with the Government programme to 

encourage the development of local content and creativity 

consisting of the following activities: 

j Development of a Community Web Portal (CWP) 

j Identifying the application and use of ICT for social 

development 

j Empowering the community with ICT skills 

Cyber Caravan Project 

The main objectives of the NCB-initiated Cyber Caravan 

Project are as follows: 

j To raise the level of knowledge about ICT and the level 

of competence in using personal computers and common 

computer applications 

j To promote and encourage ICT literacy 

j To ensure all computer users understand the advantages 

of using a personal computer 

j To enhance the employability of all people, to enable 

them to be part of the global Information Society 

As of 6th December 2007, about 63,825 persons had followed 

ICT Literacy and ICT Awareness Courses



Universal ICT Education Programme 

The main objectives of the NCB-led Universal ICT Education 

Programme follow: 

j Develop an e-society where ICT pervades all spheres of 

social development and well-being 

j Meet the demand of IT manpower for the ICT industry 

j Align the country with international benchmarking in IT 

literacy 

j Encourage people to obtain higher level industry-based 

certifications 

As of November 2007, the programme had attracted a total 

of 57,813 applications to participate in ICT Education. 

IT Empowerment Programme for the Unemployed 

With the widespread use of IT in businesses, employees at 

all levels are expected to have a basic knowledge in ICT tools. 

In this context, the NCB runs free training programmes for 

unemployed people to empower them with ICT skills to 

increase their employability. 

A training programme of 60 hours’ duration, spread over 

10 full days, is being carried out in the NCB Cyber Caravans. 

A certificate of attendance is issued to all participants who 

successfully complete the course. 

Sources of Funding for Rural Connectivity 

The Development Bank of Mauritius 

The Development Bank of Mauritius provides loans up to 

Rs.35,000, reimbursable over 5 years with a low 3 percent 

interest rate, to go towards the purchase of personal computer. 

173


a14 

MozambiqueProfile 


Instituto Nacional das Communicacoes de Mozambique 

(National Telecommunications Institute of Mozambique (INCM)) 

174 


Ministry of Transports and Communications 

Address: Ministério dos Transportes e Comunicações, 

Av. Mártires de Inhaminga, 336; 

Caixa postal 1937; Maputo, Mozambique 

Address: Avenida Eduardo, 

123/127 PO Box 848 

Maputo, Mozambique 




Contact Person: S.E. Sr. António F. Mungwambe 

Telephone: +258 21 430 155 

E-mail: ema.chicoco@mtc.gov.mz 

Website: www.mtc.gov.mz 

Contact Person: Mr. Salomao J. Manhica 

Telephone: +258 21 490 131/9 

E-mail: info@incm.gov.mz 

smanhica@incm.gov.mz 

Website: www.incm.gov.mz 






Telecommunications de Mozambique (TDM) is the monopoly, 

state-owned, fixed-line, incumbent operator. Although TDM 

does not operate any mobile telephone service or cable TV, 

it is the partial owner of the largest suppliers of all of those 

services. Due to the success of these services provided by 

both TDM’s subsidiaries and their competitors, TDM’s own 

business has been slowly decreasing. 

Its ADSL service was launched in 2006, a service which will 

have it competing head-on with their subsidiary cable TV 

supplier. TDM is also looking at using point-to-point wireless 

technology for the “last mile” for fixed telephony. 

TDM services are generally accepted as being reliable (even 

by its competitors), but too costly. 

The privatisation of TDM should have taken place by the end 

of 2007, and a second fixed-line operator was to be licensed. 43 

However, with the change of leadership, Mozambican 

Transports and Communications Minister Paulo Zucula denied 

such plans in April 2008. 44 


The mobile market is liberalized with two mobile operators: 

Telecomunicações Móveis de Moçambique (TMM), under the 

brand mCel, and Vodacom Mozambique, which is a subsidiary 

of Vodacom South Africa. 

mCel 

mCel was established as a wholly owned subsidiary of TDM 

in 1997, and in 2003 it was officially split from TDM as an 

autonomous company, with TDM owning 74 percent and the 

Government owning the remaining 26 percent. Although the 

initial user-base growth was impressive, the introduction of 

a prepaid service in 2000 sparked phenomenal growth with 

annual growth of 67 percent in recent years. 

There were approximately 1 million subscribers by the end 

of 200,5 and there are now approximately 1.77 million. 

Over 90 percent of all users are prepaid. mCel claims that 

it currently covers about 45 percent of Mozambique’s territory 

and 55 percent of its population. mCel has approximately 

400 base stations, with 80 to 90 being added each year. 

mCel estimates that by the end of 2007, it will have most 

of the population covered. 

mCel uses TDM infrastructure where possible, and many rural 

areas are served by satellite connections. mCel estimates 

that over the next 4 years, most areas will be served by a 

terrestrial hybrid of fibre and radio. 

Despite its monopolistic telecom background, mCel has been 

aggressive in both marketing and technology deployment. It 

is in the process of deploying GPRS/EDGE15 technologies 

nationwide, and has plans for very interesting and presumably 

profitable applications based on this technology. 

Source: Sida, A Country ICT Survey for Mozambique, 2006 

43 http://www.totel.com.au/african-telecommunications-research.asp?cid=MZ 

44 http://allafrica.com/stories/200804180846.html 

VODACOM 

Following the 1999 Telecommunications Reform Act, a tender 

was issued in 2001 for competitive mobile voice services. 

Vodacom won the bid, and it took 18 months to come to 

acceptable interconnect terms with the existing carriers. 

Vodacom Mozambique went live in 2003. Vodacom’s coverage 

is approximately 75 percent of mCel’s, given that mCel had 

a large head-start in terms of coverage and market share, 

and that Vodacom has yet to decide whether it will deploy 

GPRS/EDGE. Vodacom provides most of its own transmission 

facilities within Mozambique (satellite and microwave), and 

has its own satellite international gateway. Vodacom does 

lease some facilities from TDM. 



The provision of e-mail and Internet services in Mozambique 

was initiated by the Eduardo Mondlane University Informatics 

Centre (CIUEM) in 1993. Now, there are around 10 to 12 

active ISPs in the country and an estimated number of 3 

Internet users per 1000 persons. 45 

The range of services includes the following: 

j Dialup access 

j Leased lines (ISDN and ADSL) 

j 802.11 (Wi-Fi) access 

j Medium to high speed VSAT access to Maputo or Europe 

j Medium to high-speed via cable TV 

Some ISPs use international access provided through TDM, 

but many have their own international satellite access. 

One ISP offers satellite service that goes directly from the 

user to Europe in a single satellite hop. Wi-Fi access is 

becoming increasingly popular due to its lack of required 

physical infrastructure. 

The base station is often served by point-to-point wireless. 

It is unclear if such ISPs require a license for this wireless 

service, but the services are nonetheless being offered, often 

using power levels above those generally considered legal. 

The largest service centre is Maputo, but public dial-up 

Internet access is also available in all ten provincial capitals 

and about ten additional districts. In addition to corporate 

and Government Internet connections, there are about 14,000 

subscribers to the various ISPs offering public service. 

About 50 percent of them are individual users, and the rest 

small businesses. There is an Internet Exchange connecting 

all but one of the ISPs, allowing local traffic to be traded 

without going outside of the country. 


45 http://researchspace.csir.co.za/dspace/bitstream/10204/1059/1/Morris_ 

2006_D.pdf 

175


j ICT Policy 2000 

Aims to provide universal access to information for all citizens 

in order to improve their level and productivity in various 

fields ranging from education, science and technology to 

health and culture. 

j ICT Policy Implementation Strategy 2002 

Aims to expand coverage in rural zones using the most costeffective 

technologies, namely satellite communications 

(VSAT networks, RASCOM Project), FWA solutions (fixed 

wireless access), point-to-point radio systems, or pointmultipoint 

systems. 

The Strategy outlines 33 projects, many of which target the 

90 percent of the population that lives in rural areas. 

Examples include the following: 

j Partnerships with the international private sector will 

facilitate the introduction of innovative business practices, 

for example, the franchising of community-access models 

to support the extension of connectivity to the rural areas 

j Research institutes will be located in rural areas to 

facilitate Internet connectivity and access to information 

and knowledge from other parts of the world 

j Installation of rural VSAT networks 

j Telecentres Project aimed to install, by 2004, another 

25 telecentres in diverse districts and rural zones 

j Health Information System (HealthNet) aims to create a 

technological infrastructure capable of interconnecting 

the country's main health units, the electronic management 

of patients' profiles and the management of pharmaceutical 

stocks. The implantation of this project will permit central, 

general and rural hospitals around the country to be 

interconnected, thus making it possible for all 

information, administrative and clinical alike, to be 

exchanged online. 

j Mobile ICT Units will expose teachers and students to 

computer literacy, as well as provide a means for 

decentralized e-Government campaigns. This project 

will complement the CPRDs, SchoolNets Community 

Access Points and other such initiatives in an efficient 

and cost-effective manner and provide services to those 

suburban and rural areas lacking adequate 

ICT infrastructure. 

176 

They are equipped with computers, telephone access, 

and a low cost bidirectional satellite link. They should 

also serve as an ad hoc training platform for rural citizens, 

provincial public functionaries, and an Internet connectivity 

room. 




Figure A.14a: Coverage Map of Telecomunicações de 

Moçambique Fixed-Line Service in 2005 

Source: Prof. Doctor Eng. Venâncio Massingue, “Mozambique Towards 

Connectivity and Access for All” 

http://www.pdfdownload.org/pdf2html/pdf2html.php?url=http%3A 

%2F%2Funpan1.un.org%2Fintradoc%2Fgroups%2Fpublic%2Fdo 

cuments%2FAPCITY%2FUNPAN025038.pdf&images=yes) 

Figure A.14b: Coverage Map of Mobile Operators’ Services 

in 2005 

Source: Prof. Doctor Eng. Venâncio Massingue, “Mozambique Towards 

Connectivity and Access for All” 

http://www.pdfdownload.org/pdf2html/pdf2html.php?url=http%3A 

%2F%2Funpan1.un.org%2Fintradoc%2Fgroups%2Fpublic%2Fdo 

cuments%2FAPCITY%2FUNPAN025038.pdf&images=yes




In Mozambique, the telecommunications infrastructure 

consists of a national backbone, covering all provinces up to 

the district level. This network is a combination of different 

technologies such as VSAT, wireless loop, copper cable and 

fibre-optic cable. The fibre-optic network is currently installed 

along the coast and is now being extended to include noncoastal 

provinces. Much of the communications within 

Mozambique and most of the external bandwidth is via 

satellite. There is one undersea fibre run from Maputo to 

Beira. There is a microwave facility to South Africa, as well 

as a currently dark fibre link. The intent is to use the fibre 

to interconnect with the SAT-3 submarine cable to West 

Africa and Europe. 

TDM is a signatory to the EASSy (Eastern Africa Submarine 

Cable System) Memorandum of Understanding, but the future 

and timing of that project is still an unresolved question with 

successive delays to commitment of implementation being 

the pattern to date. 

Expansion of coverage in rural zones will be done by applying 

solutions that permit communications to be brought to these 

zones in equal conditions for all users, applying technologies 

that offer cost/efficiency advantages. Access technologies 

being considered include satellite communications 

(VSAT networks, RASCOM Project), Wi-Fi Systems, FWA 

solutions (fixed wireless access), point-to-point radio systems 

and point-multipoint systems. The rapid development of 

mobile networks has contributed to greater access and 

penetration of telecommunication services. The technological 

solutions being developed in this field point toward the 

integration of fixed and mobile networks, offering users 

innumerable advantages. Today there are two mobile telephony 

operators covering all the provincial capitals and districts 

along the major development corridors. They are introducing 

innovative services including Internet access using mobile 

telephony infrastructure. 

Source:http://www.pdfdownload.org/pdf2html/pdf2html.php?url=http 

%3A%2F%2Fwww.ist-africa.org%2F2005%2Ffiles%2FIST- 

Africa_ComparativeReport_v1.0.pdf&images=yes 


Electricidade de Moçambique (EDM) is the state electrical 

utility. It does not have a monopoly on electrical distribution, 

but it does supply the vast majority of power. Independent 

distributors supply power mainly in areas not yet covered by 

the national electrical grid. From an ICT perspective, electricity 

is a major issue in Mozambique. There are three perspectives 

to this: availability, reliability and quality. EDM’s vast physical 

infrastructure which will ultimately reach all districts means 

that EDM could potentially be a major communications 

provider as well. 

Discussions about electricity in Mozambique usually focus 

on the electrification program-the extension of the electrical 

grid to all provinces and districts. With the help of significant 

donor contributions, major investments are being made in 

rural electrification. The major thrust is to connect most 

areas to the national electrical grid, and where applicable, 

identify alternative electrical sources for areas too remote to 

be connected. Mozambique already has large hydro-electric 

generation facilities and the potential for growth in this area. 

The Ministry of Energy aims to electrify all district capitals 

by 2009. In rural areas, electrification of hospitals and 

secondary schools using solar power systems or other alternative 

sources of energy like diesel generators has been prioritised. 

Electrification in rural areas is also planned on a staged basis. 

In addition to looking at installing its own fibre, EDM is in 

discussion with TDM on how the two organizations can 

cooperate, potentially allowing TDM to use towers or rightof-way, 

or perhaps leasing transmission paths over EDMowned 

fibre. Around the world, some electric utilities are 

investigating the possibility of using their transmission facilities 

for data traffic for delivery to customer premises. EDM has 

no such plans at the moment. 



Table A.14 


Combined primary, secondary and 52.9 




Female adult literacy rate 25 







(1995-2005) 

Mozambique Information and Technology Institute (MICTI) 

The Mozambique Information and Technology Institute (MICTI) 

is a key initiative of the Government and has several main 

components: 

j Learning 

A multi-faceted program of courses aimed at end-users, 

technologists at all levels and those who manage ICT projects 

or businesses. The intent is to establish high-quality education 

at all of these levels which other institutions in the country 

or region could then replicate. 

j Research 

ICT research, including independent research groups and 

MSc- and PhD- level study. One focus will be MICTI itself to 

ensure that it is meeting its targets and goals. 

177

j Technology Incubator 

Assist small- and mediumscale ICT businesses, through the 

provision of high quality facilities and services. Streamline 

government interactions, business planning, and provide high 

quality physical and communications infrastructure. 

j Science and Technology Park 

A longer-term project to be located in a campus setting about 

50 km from Maputo, will be a high-profile development 

integrating business, as well as academic and research 

aspects. The MICTI campus will include learning, research 

and incubator components. 


Instituto Superiour de Ciencias e Tecnologia de Mocambique 

(ISCETEM) 

Instituto Superiour de Ciencias e Tecnologia de Mocambique 

(ISCETEM) is considered the best private post-secondary 

ICT school in Mozambique. It has a computer science 

programme that it is currently being revised to accommodate 

the needs of the labour market in skills development. 

Mozambique Research and Education Network (MoReNeT) 

Mozambique Research and Education Network (MoReNeT) 

was announced in 2006 to be established and sponsored by 

the Ministry of Science and Technology. MoReNet will serve 

to link 25 education and research institutions in Mozambique 

and will reportedly have the support of fibre-optic operators 

in an attempt to improve the speed and quality of Internet 

access to the education and research institutions. MoReNet 

will serve to build collaboration between research institutions 

within Mozambique and between Mozambican institutions 

and those based in other countries across the world. The 

focus is to allow the sharing of resources such as research 

journals and courseware. 

Source: Isaacs, Shafika. 2007. “Survey of ICT in Education in 

[Mozambique]”. Survey of ICT and Education in Africa (Volume 2): 53 

Country Reports. Washington, DC: infoDev / World Bank. Available from: 



Millennium Village Project 

Mozambique's first "Millennium Village" was officially launched 

in Gaza village, an outlying, rural suburb of Chibuto town. 

Initially, Mozambique will have 11 Millennium Villages 

(1 per province), each benefiting about 5,000 people for a 

total annual investment of US$3.3 million. The initiative is 

run by the Ministry of Science and Technology and counts 

on support from the UN Millennium Project. 

178 



Among the interventions are improved agricultural techniques 

to increase crop yields dramatically; investments to relieve 

the burden on women, such as improved access to water and 

wood fuel, accessible clinics, and mills for grain; free daily 

school lunches using locally produced food to support children's 

nutrition and provide an incentive for parents to keep them 

at school; distribution of insecticide-treated bed nets to 

combat malaria; and off-grid energy, water and information 

technologies "to provide clean water and energy and to save 

hours of daily labour spent collecting firewood and water." 

Agencia de Informacao de Mocambique reports that mCel 

has signed a three-year agreement with the country’s Ministry 

of Science and Technology under the Millennium Villages 

project in order to improve access to communications 

networks. 46 Sachs and his team have carefully costed the 

project. They calculate that the costs of a Millennium Village 

are US$110 per person per year. This breaks down as US$50 

from donors, US$20 from partner organisations, US$30 from 

local and national governments, and US$10 from villages. 

Add management costs, and donors would be asked to provide 

US$300,000 a year per village, or US$1.5 million over five 

years. The project ventures a rough breakdown of costs, which 

shows that health care is the most expensive item, accounting 

for 40 percent of costs. The vital agricultural improvements 

only take 10 percent (infrastructure is 14 percent of the 

costs, water supply 13 percent, nutrition eight percent, and 

education six percent). 

Source: 

http://www.poptel.org.uk/mozambiquenews/newsletter/aim323.html 

IDRC / Telecentre.org / UEM 

The Government of Mozambique aims to establish a community 

ICT facility or telecentre in every one of the 128 districts in 

the country as a way of promoting universal access. 47 The 

project is managed by telecentre.org, a corporate project 

led by a consortium of the International Development 

Research Centre (IDRC), Microsoft, and the Swiss Agency 

for Development and Cooperation (SDC). 

Since 1997, the number of telecentres has been growing 

rapidly. However, all of them are struggling for survival, mainly 

due to challenges in the area of connectivity and human 

resources. This project will address the problem by means 

of a Community Information and Communication Support 

Centre (CAICC) for capacity building and networking at two 

interlinked levels. At the community level, CAICC will operate 

a helpdesk and other capacity building activities for telecentre 

practitioners, especially managers, technicians and volunteers. 

At the national level, CAICC will provide a framework for 

coordination and information sharing between programmes 

and partners. The project will have a built-in monitoring 

component and provide a test bed for ideas on telecentre 

sustainability. 

46 http://www.dnp-services.com/telconews/20070404/005.php 

47 (Source: http://www.idrc.ca/acacia/ev-116785-201-1-DO_TOPIC.html

a15 




NamibiaProfile 


Ministry of Works Transport and Communication (MWTC) 

Responsibility: Policy guidelines 

and regulating Telecom Namibia 

Address: Private Bag 13341; Windhoek, Namibia 


Ministry of Information and Broadcasting 

Responsibility: Overseeing NCC and therefore MTC 



Namibian Communications Commission 


ICT Alliance of ICT Stakeholders 

ICT Alliance of Namibia 

Address: PO Box 24280, Windhoek, Namibia 


Contact Person: Mr. S. Ndjaba 


Telephone: + 264 61 283 9111 

Fax: + 264 61 222 343 

E-mail: sndjaba@mwtc.gov.na 

Contact Person: Mr. S.T. Hiveluah 


Telephone: +264 61 208 8812 

Fax: +264 61 224 381 

E-mail: sthiveluah@mtwc.gov.na 

Contact Person: Mr. David Imbili 

Chairman 

Telephone: +264 61 222 790 

E-mail: imbili@mweb.com.na 

Website: www.ncc.org.na 

Contact Person: Mr. Peter Mbome 

Telephone: +264 61 259 102 

E-mail: chairpersonictalliance.org.na 

Website: www.ictalliance.org.na/index.html 


179


Note: Currently two ministries are responsible for the 

telecommunications sector. The Ministry of Works Transport 

and Communications (MWTC) is responsible for providing 

policy guidelines and regulating Telecom Namibia, and the 

Ministry of Information and Broadcasting (MIB) is responsible 

for the Namibian Communications Commission (NCC) and 

therefore MTC. 


Telecom Namibia, launched in 1992, is the state-owned 

monopoly fixed-line telecommunications service provider. 

It is licensed to provide fixed-line telecommunications service 

and is the only international data gateway licence holder. 

The operator has 76 percent geographic coverage and 

92 percent population coverage. It relies on its copper network 

infrastructure in urban areas and is rolling out CDMA networks 

in both urban and rural areas. 


MTC had monopoly power in the mobile market until the 

second mobile network operator finally launched in 2007. 

MTC was established in 1995 as a joint venture between 

Namibia Post and Telecommunications Holdings (NPTH), 

which is 100 percent state-owned, Telia and Swedfund. The 

Swedish partners participated in the formation and 

development of MTC, and in 2004 they found it an appropriate 

time to exit, as MTC was a mature and well-performing entity. 

NPTH then acquired their 49 percent stake. 

During 2006, the sale of 34 percent of MTC shares to Portugal 

Telecom was concluded and an additional 15 percent made 

available to local investors while the Government retains an 

effective 51 percent stake in the company. That same year, 

3G services were launched. 

Despite the monopoly, the country had already achieved the 

third highest market penetration rate, 95 percent (after South 

Africa and Morocco) by 2007. 

The country's second licensed mobile operator, PowerCom, 

launched operations under the brand name Cell One. Telecom 

Management Partner (TMP), a strategic partner of Norway's 

Telenor owns 39 percent of PowerCom; Namibia's power 

utility NamPower, 37 percent; Nammic, the investment arm 

of the Namibian trade unions, 12 percent; Old Mutual 

Namibia, 10 percent; and an education trust established by 

the shareholders, 2 percent. PowerCom was awarded the 

second GSM operator licence in August 2006. Services 

currently available to customers include Voice, SMS, 

interconnection with MTC and Telecom Namibia, international 

voice, voicemail, balance enquiries and cell one share. 

The fixed-line incumbent, Telecom Namibia, quietly entered 

the lucrative mobile market as the third player but was put 

on hold by the regulator until the new ICT Bill brings clarity 

about fixed-mobile convergence, among other issues. Telecom 

Namibia has launched its fixed wireless CDMA network under 

the brand name SWITCH. Despite the temporary restriction 

of the SWITCH service, customers in connected towns and 

settlements will be able to make use of SWITCH services in 

their geographic areas without any limitation. 

180 




Several WiMAX networks currently under development will 

boost Internet connectivity and bring additional competition 

to the voice market once VoIP is deregulated. With an extensive 

fibre-optic backbone, the country is well positioned to remain 

one of the most developed telecommunications markets in 

Africa. 


Telecom Namibia is the monopoly infrastructure provider. 

Therefore, MTC is required to use the backbone infrastructure 

and international gateways of Telecom Namibia even if they 

are offered at excessive prices. MTC was only allowed for a 

few exceptions to build their own infrastructure, most recently 

using VSAT. 


Telecommunications Policy and Regulatory Framework 1999 

Aims to pave the way for further liberalization of the sector 

and open the market to private companies and investors, 

including possible competitors to Telecom Namibia. 

The ICT Alliance Namibia 

The ICT Alliance Namibia is an umbrella organisation for 

companies, professionals and citizens involved and/or 

interested in ICT in Namibia. The ICT Alliance Namibia aims 

to drive ICT policymaking in the country: liaise with and lobby 

government, non-governmental organisations, private sector, 

the ICT sector regulator(s) and the public at large on shaping 

policy decisions. 


j Namibian Communications Commission Act 1992 

Established the Namibian NCC as independent regulator. 

The MIB provides policy guidelines for the NCC, which is 

responsible for regulating the mobile telecommunications 

sector. The fixed-line sector, however, is regulated by the 

MWTC. 

j Post and Telecommunications Act 1992 

Incorporated Telecom Namibia Ltd. and Telecom Post Ltd. 

j Communications Bill 2007 

Aims to create a single independent authority, the 

Communications Authority of Namibia (CAN). Regulation of 

the fixed-line telecommunications sector (and therefore 

Telecom Namibia), currently the responsibility of the MWTC, 

would be transferred to the new regulator. The Ministry of 

Information and Broadcasting (MIB) would be responsible 

for providing CAN with policy guidelines.




The 1992 Namibian Communications Commission Act 

established the NCC, the independent regulatory authority 

responsible for the regulation of the telecommunications and 

postal sectors and for the allocation of frequencies and radio 

and television licenses. The Commission will provide a 

thorough but efficient regulatory process that is fair, open, 

transparent, innovative and encourages public participation. 

The commission issues licences for the following: 

j Mobile Cellular GSM 

j Fixed / wireless Local Telephony 

j National Long Distance 

j International Switch 

j Private Telecommunication Network (Local) (National) 

j Fixed Satellite Earth Station 

j VSAT 

j SNG 

j INMARSAT 

Foreign Direct Investment Regulation 

The Commission requires foreign investors to form alliances 

with Namibian citizens, who should make up 51 percent of 

the shareholding of the joint venture in order to qualify for 

a broadcasting licence. 


Telecom Namibia 

Telecom Namibia partnered with SchoolNet Namibia to 

develop the Xnet Development Alliance Trust to provide 

affordable bandwidth connectivity to a variety of social 

sectors (such as agriculture, education, health, SME etc.). 

The education sector is the first sector for connectivity rollout 

and the Trust first aims to provide Internet access to all 

1,500 schools and higher-level educational establishments 

in Namibia. There are currently 130 schools benefiting from 

the Trust, which is the first effort towards Universal Access 

in Namibia. 

In January 2008, Telecom Namibia donated 225 SWITCH 

mobile phones to 52 local charities throughout Namibia, 

benefiting hundreds of elderly and disadvantaged children. 

The new SWITCH handsets with starter packs are worth 

N$50 000. 

Since the beginning of 2008, the Government levies a 

15 percent tax on all telecommunications pre-paid airtime, 

and Telecom Namibia subsequently announced its intention 

to absorb the value added tax, allowing its customers to enjoy 

the same tariffs. 

Telecom Namibia has been tariff rebalancing since 2005, 

gradually aligning the tariffs of services to the costs of 

providing them and eliminating cross-subsidising of services. 

MTC 

MTC’s 400 base stations and repeaters across the country 

currently cover about 95 percent of the population, all major 

towns and roads. 

In 2004, MTC upgraded its network grid from a 900MHz to 

a dual-band 900/1800MHZ allowing the network to 

accommodate a wider range of calls. With the installation of 

GPRS, MTC is bringing the 2.5G (generation) mobile 

telecommunication technology to Namibia. Shortly afterwards, 

MTC introduced 3G HSDPA technology. 

At inception, MTC offered only post-paid (contract) products, 

but in recognition of the worldwide trend in the growth of 

pre-paid services, Tango was introduced in July 1999. Since 

its introduction, the number of Tango customers has increased 

phenomenally, with close to 90 percent of all customers 

opting for the pre-paid package. Tango customers enjoy the 

full benefits of international roaming in South Africa on 

Vodacom’s network, and roaming is today extended to 

120 countries and more than 245 networks around the world. 

Figure A.15: MTC Coverage Map: Dark pink is GSM 900 

and light pink is GSM 1800 

Source: http://www.mobilecomms-technology.com/projects/mtc-namibia/ 

In 1997, MTC Namibia trialled wind-and solar-powered 

cellular base stations, using technology developed and tested 

by Motorola and in partnership with the GSM Association. 

The base stations used a combination of wind power and 

solar panels to power not only the base station itself but also 

an electric fence around the unit, a weather station, VSAT 

and a modem to send back regular reports to the control 

centre. 

181

The base stations need between 1,200 and 1,500 watts and 

come with a 6KW wind turbine and a four panel solar array 

measuring 3m x 6m, tilted 26 degrees north to maximise 

solar output. The power generated is stored in a bank of deep 

discharge lead acid batteries which can last two to three 

years before requiring replacement. The trial was run during 

the winter months, when both wind and solar energy were at 

their lowest availability. 

The first base station to use the technology was in the village 

of Dordabis, 40km from the capital Windhoek. The cell served 

about 1,500 people in the village, as well as farming 

communities up to 30km away. "The Dordabis trial project 

produced highly encouraging results. To move forward with 

our growth strategy, MTC Namibia needed an efficient and 

reliable alternative to mains grid electricity solution. 

Based on the success of this trial, we are now in a position 

to place remote base stations, fuelled by renewable energy 

sources, where we need them. This means that we can 

continue to deliver on our commitment to our customers," 

said Albertus Aochamub, corporate affairs general manager, 

MTC Namibia. 48 


Table A.15 

The following training institutes offer ICT-related courses and 

degrees: 

j UNAM Faculty of Engineering and Information Technology 

The University of Namibia, Faculty of Engineering and 

Information Technology is targeted for operation in 2009. 

It aims to produce engineers specialized in fields, such as 

mechanical, electrical, chemical, civil, metallurgical, software, 

and computer engineering. 

182 




Adult literacy rate (1995-2005) 85 





Share of central government expenditure 21 




(1995-2005) 

48 www.mtc.com.na/docs/wind_solar_powered_cell_site.pdf 



j Institute of Information Technology (ITT) 

Established in 1997, IIT is a privately owned training and 

education provider that has a national footprint with three 

full campuses and five satellite centres countrywide. It delivers 

internationally accredited industry qualifications to around 

4,500 Namibians annually in disciplines ranging from basic 

computer literacy to hardware and software engineering as 

well as a bouquet of business and management courses 

accredited by the University of Cambridge. 

IIT utilises a blend of training methodologies including 

instructor-lead training, online training, computer-based 

training, supported correspondence training, and home 

education. 

Through its other divisions IIT provides Namibians with stable 

refurbished computers running on a mixture of open source 

and Microsoft platforms. 49 

j Polytechnic of Namibia 

The Polytechnic of Namibia contributes to Namibian 

development by providing tertiary technological career-oriented 

education at internationally recognised standards. The main 

objective is the practice, promotion, and transfer of technology 

to meet the professional human resource requirements of 

the country and those of the region and beyond. 50 

j Telecom Namibia 

Telecom Namibia has a well-established training infrastructure 

and provides theoretical and practical training on all products 

and services for its personnel. A wide range of training courses 

are available to its employees in various fields of telecommunications 

and in related aspects of management. 


j National Education Technology Services and Support 

(NETSS) Centre 

The National Educational Technology Services and Support 

(NETSS) Centre was established after a consultative process 

with all partners involved in ICTs in education in Namibia. 

The centre is responsible for co-ordinating access to ICTs to 

all Namibian education institutions by overseeing the sourcing, 

refurbishment, installation, and support of ICTs. It serves as 

a distribution hub for ICTs in education and a national 

helpdesk for technical support. The design of the NETSS 

Centre is based on models established by SchoolNet Namibia 

and Microsoft Pathfinder, including input from an analysis 

of end user experiences. 51 


2: 53country reports infoDev 

50 Ibid 


2: 53country reports infoDev



j Microsoft Pathfinder Project 

The Microsoft Pathfinder Project was initiated in 2003 as a 

joint venture between the Namibian Government, Microsoft, 

and the Namibian education community. The project involved 

the development of a schools strategy plan by the Namibian 

education community in partnership with Microsoft. It included 

the rollout to 13 pilot schools of refurbished PCs obtained 

from its Digital Pipeline project, connected to a local area 

network and a new server on which is installed Microsoft’s 

learning materials. The administration of this project was 

handed over to the Namibian Government in 2005. 52 

j Community Education Computer Society (CECS) Namibia 

CECS Namibia is a not-for-profit training organisation that 

provides training and support for teachers and communities 

in ICT literacy. CECS currently focuses on basic computer 

literacy, and as communities and teachers become literate 

in the basic skills, advanced literacy and pedagogy courses 

are available. 

CECS has two different centres offering training: one is the 

Windhoek College of Education / IT Academy and the other 

is NIED in Okahandja. 53 


http://www.nied.edu.na/edusupport/cecs.htm 

j E-Learning Centre (ELC) 

In April 2006, the Namibian ELC was formally launched 

through a partnership between the Namibian Open Learning 

Network Trust (NOLNet) and InWEnt (Capacity-building 

International, Germany). Established under the auspices of 

NOLNet, the ELC functions as the service hub for e-learning 

activities in Namibia. 



53 Ibid. 

183


184 

a16 

NigeriaProfile 


Ministry of Information and Communications 

Address: Radio House Area 11, 

Garki, Abuja,, FCT 


Nigerian Communications Commission (NCC) 

Address: Plot 423, Aguiyi Ironsi Street, 

Maitama, Abuja, FCT 


Universal Service Provision Fund (USPF) 

Address: USPF, PLOT 423, 

Aguiyi Ironsi Street, 

Maitama, Abuja ,FCT 


National Information Technology 

Development Agency (NITDA) 

Address: 28 Port Harcourt Crescent, 

of Gimbiya street, area 11, 

Garki Street, Abuja, FCT 


Contact Person: Mr. John Ogar Odey 

Minister 



Telephone: +234 9 523 7183 

E-mail: jodey@nigeria.gov.ng 

Website: www.fmc.gov.ng 

Contact Person: Eng. Ernest C.A Ndukwe 

CEO 

Telephone: +234 9 461 7000 

E-mail: ndukwe@ncc.gov.ng or ncc@ncc.gov.ng 

Website: www.ncc.gov.ng 

Contact Person: Funso Fayomi Esq. 

Secretary, Universal Service Provision Fund 

Telephone: +234 9 461 7000 

E-mail: uspf@ncc.gov.ng or info@uspf.gov.ng 

Website: www.uspf.gov.ng 

Contact Person: Prof. Cleopas Angaye 


Telephone: +234 9 314 2924-6 

E-mail: contact@nitda.gov.ng 

Website: www.nitda.gov.ng 




Description of Telecommunications Sector 

There are two fixed-line operators, the partially private 

incumbent NITEL and the second national operator, privately 

owned Globacom. In addition, there are five competing mobile 

operators. Table A.16a illustrates the growth in the number 

of licensed operators from 2001 to 2007 for each of the 

different licence categories. 

Nigeria has adopted a technology- and service- neutral 

licensing regime and now issues a Unified Service Licence, 

which permits the provision of fixed telephony, whether wired 

or wireless, digital mobile services, international gateway 

services and regional and national long distances. 

These include ISP, value-added and payphone services. 

In addition to the Unified Service Licence, all other existing 

national carrier licences remained unchanged and valid. 

These include licences for service providers, including Private 

Telecom Operators (PTOs), Fixed Wireless Access Operators 

(FWA), Long Distance Operators (LDOs) and Internet Service 

Providers (ISPs). 

Table A.16a: Growth in the Number of Active Operators and 

Service Providers in Nigeria 

Service 2001 2002 2003 2004 2005 2006 2007 

Category 

National 1 2 2 2 2 2 2 

Carriers 

Mobile 3 4 4 4 4 4 5 

(GSM) 

Telephony 

Fixed 16 17 20 22 26 26 29 

Telephony 

VSAT N/A N/A 51 52 59 59 59 

Networks 

Internet 30 35 35 36 69 117 117 

Services 

Source: http://www.nitelnet.com/profile.htm 


The incumbent fixed-line operator, NITEL, was 100 percent 

Government-owned and incorporated as a liability company 

in 1984. Its operations commercialised in 1992 and mobile 

operations unbundled in 1996, establishing the Nigerian 

Mobile Telecommunications Ltd. (M-Tel). M-Tel became fully 

autonomous in 2003. 

In 2000, the Telecoms Sector Reform Implementation 

Committee paved the way for NITEL’s privatisation in 2006, 

when 51 percent of the company was sold to the Transnational 

Corporation of Nigeria, whose shareholders include the four 

biggest banks in the country, as equity shareholders. 

The regulatory authority, the Nigerian Communications 

Commission (NCC), granted the SNO licence to Globacom 

Nigeria in 2002 in order to introduce competition in the 

market. 

Its licence obligations included the provision of 

150,000 digital lines on its mobile network and 

100,000 on the fixed-line network within the first 12 months 

of operation. In 2003, Globacom, now known as Glo Mobile, 

rolled out services in Abuja. 


There are also five network operators competing in the mobile 

market; namely, MTN Nigeria, Celtel, NITEL(M-Tel), Glo 

Mobile and a new entrant Mubadala. Each Mobile Network 

Operator continues to build its own private network 

infrastructure and operates nationally and internationally. 

Table A.16b: Operator Ownership and Market Share 

Operator Ownership % Market Share 54 


The ISP market is liberalised with 522 ISPs registered with 

the NCC in 2007. The high cost of NITEL’s fixed-line service 

means that many ISPs depend on VSATs for broadband 

service. 


Installed Active Connected 

Lines Capacity Subscribers 

Celtel 100% MTC 25 27.7 35.0 

Nigeria (Kuwait) 

MTN 100% MTN 46 40.8 34.6 

Group 

(South Africa) 

M-Tel 100% NITEL 1.4 0.4 1.1 

Globacom 100% Mike 26.6 30.9 29.3 

Adenuga Group 

Mubadala 100% Mubadala 0 0 0 

j National Policy on Telecommunications, 2000 

Main objective is to modernise and rapidly expand the 

telecommunications network and services and provide efficient, 

affordable, reliable and available telecommunications services 

to all people. The medium-term goals (5 years) include the 

development of a flexible regulatory environment that takes 

new technological development and convergence into 

consideration. It also aims to ensure that ICTs are accessible 

to all communities in the long term. 

54 Based on December 2007 figures 

185

It directs the Ministry of Communications to formulate policies 

on universal access with specific targets to be achieved by 

certain dates. It also directs the NCC to promote regulatory 

and market initiatives for market access such as: 

j Open market entry in unserved areas 

j Establishment of the Universal Service Fund 

j Competitive licence bidding based on investment 

commitments 

j Franchise minimum rollout obligations 

j Community telecentres development projects 

j Public-private financing of infrastructure construction 

projects 

j Cross-sector investment and development projects 

The Policy also provides for the inclusion of rural service 

obligations in licences granted for operation in profitable 

areas. 

j National Policy for Information Technology, 2001 

Aims to establish rural Internet resource centres with VSAT 

capability, where such communities can have access to IT 

and the Internet and information on government programs, 

local news and weather details, land and related administrative 

records, government documentation and applications, local 

commodity prices and online transactions. 

Aims to develop community telecentres for boosting the 

socioeconomic activities in the rural areas. 

Establishes IT facilities in rural areas through the use of 

Mobile Internet Units, Community Telecentres, etc. using 

satellite, wireless, HF-radio and cellular technologies. 

Nicknamed the “Use IT” Policy, also focuses on 

IT Popularization in order to create an information society 

with cutting edge technologies. 

Strategies to be employed to do this include the following: 

j Deploy Mobile Internet Units (MIUs) with varying 

multimedia aids to tour rural areas in order to educate 

the populace on IT features and benefits in addition to 

the community telecentres 

j Establish interactive websites for all key government 

offices within 12 months as information centres for the 

populace 

j Collaborate with the Ministry of Information as well as its 

agencies such as the National Broadcasting Commission, 

NTA, the Federal Radio Corporation of Nigeria and others 

at the state level to popularise IT through the slogan 

‘Use Information IT’ via television and radio. 

186 



j Universal Service Provision Fund Strategic Plan, 2007 

(2007-2011) 

Seeks to enhance the universal accessibility and availability 

of telecommunications and ICT infrastructure and services 

to all, particularly to rural residents 

Promotes technological innovation and competition in 

ICT service delivery in unserved and underserved areas; 

supports the establishment of efficient, self-sustaining, 

market-oriented businesses, including cooperatives, which 

will continue to expand access to ICTs on their own initiative, 

requiring the minimum amount of USPF financing, as well 

as ensure effective utilisation of USPF financing to leverage 

investments in rural communications. 

The USPF will fund Large Scale Infrastructure Projects 

(LSIPs), which seek to build infrastructure in more than one 

state and/or that seek NGN 1 billion or more in Fund financing. 

These projects must provide ICT infrastructure (i.e. telephones, 

backbone or transmission networks, broadband networks, 

towers, base stations or VSATs) with the primary goal to link 

and provide service to communities that are currently not 

served and not in the expansion plans of the major operators 

within a two-year time-frame. 

The Fund will finance Community Communications Centres 

(CCCs) which extend voice, Internet, ICT training and other 

services to unserved communities. The CCCs will provide a 

public calling centre, cybercafé emergency calls and 

ICT training courses, as well as serve as a platform from 

which to wirelessly extend Internet access to the surrounding 

communities. 

Aims to stimulate small-scale bottom-up initiatives from 

Nigerian small businesses and entrepreneurs, community 

organisations, educational centres and non-governmental 

organisations. 

Will provide a smart subsidy to the operator that bids the 

lowest subsidy needed to provide mobile or cellular phone 

service in defined unserved areas. The operator will be required 

to provide the infrastructure and offer mobile phone service 

to any customer that is willing and able to become a prepaid 

or post-paid subscriber using commercially reasonable 

tariffs proposed by the operators but that are subject to review 

and approval by the NCC and USPF. 

Will fund construction and operation of “passive infrastructure” 

for mobile or cellular networks in rural areas, which is 

comprised of shareable components such as land, tower, 

electricity, power backup, boundary wall and security cabin 

that can be used by at least three operators on a leased basis 

to provide wireless data and/or cellular phone service. 

Will loan to rural dwellers (mostly women) to provide access 

using wireless phones. 

Aims to accelerate the build-out of backbone transmission 

infrastructure where the construction of backbones will either 

be severely delayed (e.g., by two to five years) or will not be 

built without a smart subsidy.



The ICT Implementation Agency 

The Nigeria Information Technology Development Agency 

(NITDA) is the ICT implementing Agency. Its functions include 

the creation of a framework for the planning, research, 

development, standardization, application, coordination, 

monitoring, evaluation and regulation of Information Technology 

practices and activities that includes providing universal and 

rural access for Information Technology. It is also to provide 

guidelines to facilitate the establishment and maintenance 

of appropriate infrastructure for urban-rural development. 


j Nigerian Communications Act 2003 

Provides a regulatory framework for the Nigerian 

communications industry and promotes the implementation 

of the national telecommunications policy. 

Mandated the NCC to define the universal service provision 

and design a system to promote the widespread availability 

of telecommunications to underserved areas and groups. 

The NCC may define underserved areas with regard to the 

availability of services, the level of competition, and the 

commercial viability of installing network facilities or providing 

services. The Act established the Universal Service Provision 

Fund, funded in part by a portion of the annual levies paid 

to the NCC by licensees. 

j National Information Technology Development Agency 

Act 2007 

Created the National Information Technology Development 

Agency (NITDA), whose mandate is to create a framework 

for the planning, research, development, standardization, 

application, coordination, monitoring, evaluation and regulation 

of Information Technology practices, activities and systems. 

Makes provision for universal access for IT penetration in 

rural, urban and under-served areas. 

Provides guidelines to facilitate the establishment and 

maintenance of appropriate IT infrastructure for both the 

public and private sectors and both urban and rural 

development. 


The NCC is the telecommunications regulatory authority, 

established in 2003 by the Nigerian Communications Act. 

Its functions include the following: 

j Licensing of telecommunications operators 

j Spectrum management 

j Administration of national numbering plan 

j Facilitating private sector participation and investment 

j Promoting a fair competitive environment for all operators 

j Defining standards for tariff regulation 

j Establishing mechanisms for promoting universal access 

With regard to the NCC’s mandate to manage and implement 

a universal access strategy, the NCC aims to create and 

enabling environment for private entrepreneurs, so that every 

person has access to public telecommunications within 

5 km of his or her home. It also aims to extend an Internet 

point of presence (POP) and public access to the Internet in 

all local government authority headquarters. 

The NCC finds that the most pressing need to meet these 

objectives is the extension of the national backbone into 

areas where infrastructure is non-existent or degraded. 

The Universal Service Provision Fund (USPF) 

The Universal Service Provision Fund (USPF), established in 

the 2003 Communications Act, is administered and managed 

by the Universal Service Provision Board to facilitate rapid 

achievement of national policy goals for universal access to 

telecommunications and ICTs. 

The Fund promotes the following objectives in rural and 

underserved areas: 

j Facilitate the provision of access to ICT services within 

a reasonable distance to all persons 

j Facilitate provision of infrastructure development 

j Promote competition in ICT services delivery 

j Support the establishment sustainable businesses, which 

will eventually expand access to ICTs on their own initiative 

without continued USPF support 

The disbursement of funds is on a competitive basis, either 

by grant or by linking payment of the subsidy to the meeting 

of pre-defined rollout service obligations. 

For more information visit www.uspf.gov.ng 

VoIP Regulation 

The NCC’s position is that VoIP is legal for licensed 

telecommunications operators and ISPs. The NCC promotes 

VoIP as a way of promoting low-cost telephony, but has not 

yet clarified its official position in a policy paper. Since only 

the major players and the fixed wireless operators have 

international gateway licences, Nigeria has not really seen 

the rapid growth of VoIP service providers seen elsewhere. 


The existing infrastructure is a hybrid of fibre-optic cable 

and satellite technologies. There are GSM and CDMA networks 

and the wireless infrastructure includes additional VSAT, 

Wi-Fi and microwave technologies. Both MTN and Globacom 

have rolled out 3G services covering more populated cities. 

Both VoIP and WiMAX could be exploited to a greater extent 

to target rural communities, but policy guidelines need to be 

in place first to encourage private sector participation. 

There is the potential for power-line communications but the 

coverage of the national grid needs to be extended as well. 

Like telecommunications, the electricity sector, regulated by 

the Nigerian Electricity Regulatory Commission, is undergoing 

continued liberalisation. 

187


Table A.16c 

Chapter 15 of the national ICT Policy, “Use IT”, focuses on 

IT popularization in order to empower every citizen to partake 

in the developing information society 

The policy adopts such strategies as the following: 

j Deploy Mobile Internet Units (MIUs) with varying 

multimedia aids to tour rural areas in order to educate 

the populace on IT features and benefits in addition to 

the community telecentres 

j Encourage IT skills acquisition for all officers at all tiers 

of government within 24 months of this policy going into 

effect 

j Establish interactive websites for all key government 

offices within 12 months as information centres for the 

populace 

j Organize workshops to demonstrate the features and 

benefits of IT for performing artists through the Ministry 

of Youth, Sports and Culture 

j Collaborate with the Ministry of Women Affairs to organise 

workshops and training in IT skills for women and other 

special groups 

j Collaborate with the Ministry of Information as well as its 

agencies such as the National Broadcasting Commission, 

NTA, the Federal Radio Corporation of Nigeria and others 

at the state level to popularise IT through the slogan ‘Use 

Information IT’ via television and radio. 

The Government also makes funding assistance available for 

technological training through the Industrial Training Fund 

(ITF) and Centre for Management Development (CMD), the 

National Youth Service Corps (NYSC), and the National 

Directorate of Employment (NDE). 

188 













(1995-2005) 



The Digital Bridge Institute in Abuja participates in exchange 

programmes with Egypt’s National Telecommunications 

Institute as part of its human capacity building efforts. In 

addition, private sector industries such as CISCO, Microsoft, 

HP, SAP, People Soft and RAD all undertake on-the-job 

technical training, and often overseas training, for their 

employees. 


Universal Access Pilot Project 

The Universal Service Provision Fund partnered with GiCell 

Wireless Limited to launch the universal access pilot project, 

which extended the national backbone from Yola, where there 

is a digital exchange and digital transmission interconnection, 

to Biu, approximately 220 km north. Local access networks 

will be constructed along the way, and will extend to four of 

the surround local government authorities. Prior to the pilot 

project, the communities along this route suffered from 

particularly poor service and were not considered commercially 

viable without government subsidy. The pilot aims to provide 

access to about 20 percent of the population in both Adamawa 

and Borno states. 

The International Development Association (IDA), a member 

of the World Bank Group, financed the first UA Pilot Project 

with a one-time subsidy of US$5.05 to cover the routes along 

Yola to Biu, Calabar to Obubra and Ilorin to Yashikera. 

Rural Telephony Initiative 

The Government of Nigeria partnered with Huawei Technologies 

of China in 2007 to implement phases two and three of the 

National Rural Telephony Project (NRTP). The US$300 million 

phase one of the project expanded the national backbone 

into 218 local government areas with the installation of 

150,226 new lines. The infrastructure was built by Huwaei, 

ZTE Corpration and Shanghai Bell and was financed by the 

Chinese Government through a US$200 million concessionaire 

loan to the Government of Nigeria. 

Phases 2 and 3 aim to install an additional 487,774 lines 

extending into the remaining 338 local government areas. 

Phase 2 costs US$100 million but the President of Huawei 

noted that the Government of Nigeria has been able to pay 

only part of its 15 percent counterpart funding. Huawei has 

also had difficulty in securing the required site allocations 

in most of the local government headquarters.




a17 

SeychellesProfile 


Ministry of Information Technology 

and Communication (MITC) 

Address: Ministry of Information Technology 

and Communication 

P. O. Box 1389 

Oceangate House, Room 14 

Victoria, Mahé, Seychelles 

Department responsible for Telecommunications 

Department of Information Communication 

and Technology (DICT) 

Address: P.O. Box 737, 3rd Floor; 

Caravel House, Victoria 


Contact Person: Mr. Errol Dias, 

Principal Secretary 

Telephone: +248 382112 

Fax: +248 225660 

E-mail: psam@seychelles.net 

Website: www.virtualseychelles.sc/gover/mitc.htm 

Contact Person: Mr. Benjamin Choppy 

Telephone: +248 286609 

E-mail: psoffice@ict.gov.sc 

Website: www.ict.gov.sc/homecnt/contact.aspx 


189


The telecommunications market is a duopoly, with Airtel and 

Cable and Wireless Seychelles being the only 

telecommunications service providers. Both are licensed to 

provide fixed-line and mobile services. Over the past few 

years some progress ahs been made in the liberalization of 

the sector, but the DICT has stated that telecommunications 

market indicators are depicting slow growth in some services, 

and therefore there is a need to restructure the market by 

enhancing and strengthening competition, thus allowing 

market forces to drive rates lower. 55 

Cable & Wireless 

Cable & Wireless Seychelles Ltd is fully owned by Cable & 

Wireless and is licensed to provide national and international 

public and private telecommunications services, including 

cable broadband, ISDN Internet, VSAT, fixed-line, payphones 

and mobiles services, in the Seychelles for 20 years. 

Cable & Wireless Seychelles Ltd provides over 20,000 

telephone lines. With a digitalised network more and more 

services are now available namely, Integrated Switching 

Digital Network (ISDN), Packet Switching, Video Conferencing, 

Very Small Aperture Terminal (VSAT), International Private 

Virtual Circuit (IPVC) and complete IP Turn Key Solutions 

based on the customer's individual requirements. 

Airtel 

Airtel first launched its services in 1998 and is licensed to 

provide GSM Cellular, PSTN, Fax and Data, International 

Roaming, connectivity to Internet Services, Maritime Telecom 

Services (INMARSAT) and International Collect and Credit 

Card calling. 

Airtel offers fixed-line services in selected parts of Mahe and 

has covered Victoria, Providence, Mont Fleuri, Roche Caimen, 

Union Vale, Beau Vallon and Beau Belle. It has also started 

expanding in the Barbarons area, which is in the southern 

part of the island. There are plans for further expansion of 

this service around Mahe and the other main islands of the 

Seychelles. Their fixed-line services transmit on a 62-kpbs 

copper fixed-line. 

The launch of Airtel services broke the telecommunications 

monopoly and brought about major changes in the way this 

particular industry as a whole was perceived. Overnight 

expectations for quality of service became the driving force 

pushing the operators to upgrade their service levels and 

evaluate their prices. 56 


There are three ISPs; namely, Atlas Seychelles, Intelvision 

and Kokonet. 

Atlas Seychelles provides broadband Internet (256kbps, 

512kbps, 1Mb), advanced IP and networking services, 

web & mail hosting. Intelvision provides cable television, 

broadband Internet and VoIP telephone services. Kokonet 

provides dial-up and Broadband Internet (including wireless), 

web and e-mail hosting. 

55 http://www.ict.gov.sc/news/More%20liberalization%20in%20telecom 

%20sector.aspx 

56 http://www.nation.sc/index.php?art=10948 

190 




National Information and Communication Infrastructure (NICI) 

Policy and Plan 2006 

Prioritizes provision of basic ICT infrastructure schools in 

rural communities. Suggests campaign strategies, which 

include introducing hands-on usage of ICTs to raise awareness, 

especially in marginalized areas such as rural areas, e.g. 

telecentres 

Identifies ICT strategies to achieve PRSP objectives, such 

as: 

j Launching e-Government initiatives and new applications 

e.g. ebanking, e-cards, e-money, ecommerce. 

j Developing Agricultural Information Systems for rural 

community information centres. 

j Addressing infrastructure issues to enable universal, 

sustainable, ubiquitous and affordable access. 

j Establishing rural multimedia centres for women with the 

requisite ICT capacity building. 

Island Development Company (IDC) 

The Island Development Company (IDC) is a state-owned 

company that aims to develop the outer islands in ways that 

are economically, socially, and environmentally sustainable. 

Through IDC, the government possesses an entity that fulfils 

all the ministerial roles and functions on the outer islands 

and hence enabling these islands to be economically viable. 

With the modernisation of the national economy as a result 

of the ever intensifying globalisation phenomenon; promoting 

environmentally and socially sustainable investments on the 

outer islands has become one of IDC’s major objectives. IDC 

is to provide and manage services, facilities and infrastructure 

on the outer islands and therefore guarantee efficient and 

reliable services that will allow investors, governmental agents, 

and other parties access to outer islands with reasonable 

ease. 

Legislation / Regulation Supporting Rural Connectivity 

There is no separate or independent regualtory authority and 

the Department of Information Communication and Technology 

(DICT) is responsible for policymaking for, legislating for and 

regulating the telecommunications sector. 

The missions of the DICT department include the following: 

j The development and implementation of legislations, 

regulations and policies pertaining to telecommunication 

and related services. 

j The development and maintenance of software applications 

to support the delivery of government services. 

j The implementation, management and maintenance of 

the government ICT infrastructure. 

j The collaboration and coordination with the various 

government sectors/ministries in addressing their specific 

ICT needs and requirements. 

j The planning and management of radio communication 

resources (e.g. domain names, frequency, numbers etc.).



Broadcasting and Telecommunication Act 2000 

Universal Service Policy 57 

Seychelles has adopted and defined a Universal access/service 

policy on rural telecommunications. The service includes 

residential private fixed-line, public payphone, fax, emergency 

services, and directory services. All operators are obliged to 

provide universal access/service. However, operators are not 

obliged to provide below cost prices to any subscribers. 

Operators finance the universal access/service via the universal 

service funds. There are also additional financing mechanisms 

that are employed such as reverse tendering of VSAT for the 

outer islands. 

VoIP 

VoIP is legal in the Seychelles, and the DICT issued the first 

VoIP licence in 2005. 


Airtel 

Airtel has so far covered Victoria, Providence, Mont Fleuri, 

Roche Caimen, Union Vale, Beau Vallon and Beau Belle with 

its fixed-line network and has also started expanding into the 

Barbarons area, which is in the southern part of the island. 

There are plans for further expansion of this service around 

Mahe and the other main islands of the Seychelles. 

Airtel's GSM network provides the three main islands of Mahe, 

Praslin and La Digue with complete coverage. A total of 

73 cells spread across the islands, with 3 sector directional 

antennae, provide maximum distribution of signals, thereby 

ensuring a 99 percent geographical coverage on the islands. 

Figure A.17: Map of Airtel GSM Coverage - Service areas 

in grey 

57 http://www.itu.int/ITU-D/ICTEYE/Reports.aspx# 

Source: http://www.airtel.sc/coverage.html 

Cable and Wireless Seychelles 

With a total of 36 Base Stations on 32 sites scattered around 

the three main islands, the company today provides over 

97 percent radio coverage to its GSM mobile users. 


There are over 19,000 telephone lines in the Seychelles and 

over 26,000 telephone stations, representing 23 principal 

lines per 100 inhabitants, the highest figure in the whole of 

Africa. The islands also boast public telephone exchanges 

linked by Pulse Code Modulation (PCM) cables, fibre optic 

and digital microwave systems. 

The telephone service in the country is fully automatic, thus 

enabling its customers to dial and obtain connection within 

seconds, without assistance of an Operator. International 

calls can be made to almost all countries in the world via the 

International Direct Dialling (IDD), whereby customers are 

able to dial direct to more than 90 countries. 

There are 15 Remote Line Concentrators (RLC) located on 

the main three inhabited islands of Mahe, Praslin and 

La Digue. These RLCs are linked to the two main telephone 

exchanges by PCM cables, fibre optic and digital microwave 

systems. 

191

The fixed-line services offered by Airtel work on a 62-kpbs 

copper fixed-line and both C&W and Airtel use GSM 900 

networks. 

C&W offers advanced, Internet-based voice and data services 

from their own Tier 1 Internet backbone, linked to fully 

service-managed satellite VSAT networks across the Indian 

Ocean/Africa region and throughout the world. 

CWS has embarked on a Domestic Satellite project, linking 

some of the archipelago’s outer islands via satellite. This 

network was upgraded to VSAT technology in 1999. In 2000, 

CWS won its first regional bid to provide a fully servicemanaged 

VSAT solution for a major International bank with 

branches in Reunion, Seychelles and Mayotte. The project 

was successfully implemented in 2001 and the network has 

since then expanded to include 3 other branches in Madagascar 

(Tamatave & Antananarivo) and Mozambique. 


Table A.17 

192 













(1995-2005) 

Seychelles Polytechnic 

Seychelles Polytechnic offers post-secondary education and 

training programmes at the Certificate, Diploma and Advanced 

Level. 

The courses cater to the needs of persons who require initial 

training and upgrading principally in academic and vocational 

areas for personal and professional development and 

advancement. 

The Adult Learning and Distance Education Centre (ALDEC) 

The Adult Learning and Distance Education Centre (ALDEC) 

provides various courses and modules. The computing modules 

are word processing, spreadsheets, file management and 

databases. 




Microsoft and Ministry of Health and Social Services 

Partnership 

In 2001, the Republic of Seychelles found that it needed an 

automated electronic patient records system for its 

81,000 citizens who live on 115 islands. At that time, the 

Ministry of Health and Social Services lacked IT skills and 

equipment, and used mostly paper-based systems. First, the 

Government gained funding from the World Health 

Organisation. It then worked with Microsoft to create an 

information and communications technology infrastructure 

based on the 2003 Microsoft Windows Server and Microsoft 

Exchange Server. 

The Ministry is now ready to choose a partner to implement 

an electronic patient record system. 

The new system will save patients’ lives because doctors will 

be able to send medical data to remote locations in seconds 

rather than days. Also, all business decision making within 

the health department will be integrated in one 

IT infrastructure, resulting in reduced costs. 


http://66.102.9.104/search?q=cache:Z1lQpRcOWeUJ:dow 

nload.microsoft.com/documents/customerevidence/25979 

_MoH_Seychelles_Final.doc+case+study+Seychelles+ICTs 

&hl=en&ct=clnk&cd=5&gl=uk&client=firefox-a )




a18 

SierraLeoneProfile 


Ministry of Information and Communications 

Address: 8th Floor, 

Youyi Building, FREETOWN 


National Telecommunications Commission - NTC 

Address: 13, Regent Street, 

Hill Station, FREETOWN 


Contact Person: Alhaji Ibrahim Ben Kargbo 

Minister 

Telephone: +232 22 240 911 

Contact Person: Mr. Bashir M. Kamara 

Executive Secretary 

Telephone: +232 22 236 858 

E-mail: exs@natcomsl.com 

Website: www.natcomsl.com 


193


The fixed-line market is monopolised by the state-owned 

incumbent Sierratel, which was created in 1999 with the 

merger of Sierra Leone External Telecommunications Company 

and the Sierra Leone National Telecommunications Company. 

In contrast, the mobile telecommunications market is 

liberalised with five competing mobile network operators. 

There are just over 500,000 mobile subscribers, representing 

a teledensity of 8.7 in 2006. Less than 10 percent of the 

population own, or have access to, phones. 

The five active mobile operators are listed below in rank of 

subscribers: 

j Celtel - 243,000 

j Comium - 165,000 

j Africell - 55,000 

j Millicom - 42,055 

j Datatel - 17,156 

Each of the mobile network operators was allowed to operate 

its own international gateway infrastructure until 2006, when 

the Government rescinded their international gateway licenses, 

returning monopoly control to incumbent Sierratel. 

The ISP market is also liberalised with 12 competing ISPs, 

7 of which dominate the market. Like the mobile market, all 

ISPs had international gateway licenses until 2006. 


No telecommunications or ICT Policy. 



Established the National Telecommunications Commission 

and provides for the licensing and regulation of 

telecommunications operators. 

Promotes universal access to basic telecommunication services 

and fair competition for the benefit of users and investors in 

telecommunication networks and services. 


The National Telecommunications Commission is the regulatory 

authority, established by the Government to provide for the 

licensing and regulation of telecommunications operators, 

ensuring fair competition and for the promotion of universal 

access to basic telecommunications services. 

194 




Table A.18 













(1995-2005) 


VillageTell and Comium Sierra Leone Partnership 

VillageTell is a champion organization that aims to catalyse 

a worldwide VillagePhone movement, in the likeness of the 

Bangladeshi GrameenPhone model. VillageTell signed an 

MoU with Comium Sierra Leone at the start of 2008 to 

develop, along with the Ministry of Information and 

Communications and the Parliamentary subcommittee for 

Telecommunications, a Village Phone Kit that will provide 

affordable mobile phone access to rural poor. 

The Village Phone Kit is a complete business-in-a-box 

consisting of a mobile phone, range-extending antenna, 

cables, a phone charging source, wholesale airtime minutes, 

marketing materials, a training manual and support. The 

Phone Kit will be provided to a village lady or pastor that 

already owns and operates a micro-business in the village. 

Revenue is earned by selling airtime to the village, averaging 

a net US$1 to US$2 per day. 


http://www.villagetell.org/home.aspx




a19 

SouthAfricaProfile 


Department of Communications 

Address: Private Bag X860, Pretoria 


ICASA 

Address: Pinmill Farm, 

164 Katherine Street, Johannesburg 

Universal Service and Access Agency 

Universal Service and Access Agency 

of South Africa (USAASA) 

Address: 21 Thornhill Park 

Bekker Street, 

Midrand, P.O. Box 12601 

Vorna Valley 1686 


Contact Person: Ms Lyndall Shope-Mafule 


Telephone: +27 12 427 8000 

Fax: +27 12 427 8016 

E-mail: mathula@doc.gov.za 

Website: www.doc.gov.za 

Contact Person: Mr Paris Mashile 

Chairman 

Telephone: +27 11 321 8200 

Website: www.icasa.org.za 

Contact Person: Aubrey Mathinjwa 

Manager, CEO Office 

E-mail: aubreym@usaasa.org.za 

Website: www.usaasa.org.za 


195

Description of the Telecommunications Sector 

The market is structured around the incumbent PSTN operator, 

with a new entrant offering limited services; three mobile 

operators but with two dominant incumbents, one multimedia 

network operator with international gateway and carrier-ofcarrier 

licence; seven licensed under-serviced area licensees 

(USALs), of which six are operational, and over 344 valueadded 

network service (VANS) licensees, including about 

250 ISPs. The table below summarises the licensees. 

Table A.19a: Operator and Type of Licence 

196 

Operator 

PSTN Telkom, Neotel 

Mobile Communication Vodacom, MTN, Cell C 

Network Operators 

Multimedia and international Sentech 

carrier-of-carriers operator 

USAL Ilizwe Telecommunications 

Amatole Telecommunications 

Services 

Bokone Telecoms 

Kingdom Communications 

Thinta Thinta Telecommunications 

Karabo Telecoms 

Bokamoso Consortium 

VANS 344 operational 

Source: LINK Centre Public Policy Research Paper No. 8 “South Africa 

Telecommunications Sector Performance Review 2006 


Telkom is the fixed-line incumbent operator, partially stateowned 

and essentially a de facto monopoly. Telkom is licensed 

to provide public switched telecommunications network, 

national long distance, international, local access, public 

pay phones and fixed-line infrastructure for value-added 

network services, mobile cellular network operators and private 

networks (other than Transnet and Eskom). 

The 1996 Telecommunications Act granted Telkom a 5-year 

period of exclusivity to facilitate network modernization and 

expansion into under-served areas. Telkom was 100 percent 

state-owned until 1997, when it was partially privatized. 

A 30-percent share was sold to the Thintana Consortium of 

SBC (U.S.A.) and Telekom Malaysia. In 2004, SBC sold its 

interest in the company. 



Today, the shareholding structure is as follows: 

j The government (38.3 percent) 

j The Public Investment Corporation (PIC) (15.7 percent), 

an investment 

management company owned wholly by the government. 

j The Elephant Consortium (5.6 percent), a Black Economic 

Empowerment group 

j Rossal No 65 (Pty) Ltd (2.3 percent), which was purchased 

for the Telkom Conditional Share Plan. 

j Acajou Investments (Pty) Ltd (2.0 percent) 

j Freefloat of investors (36.4 percent): listed on JSE 

and NYSE 

The 2001 Telecommunications Amendment Act made 

competition possible from the end of 2002; however, several 

failed licensing rounds and delays in the granting and issuing 

of the SNO licence have meant that Neotel is only expected 

to offer full services sometime in 2008. It is expected to be 

able to capture 10-20 percent (depending on the estimate 

source) of Telkom’s market share and is expected to operate 

in line with its international shareholder- Tata Communications. 

The shareholding structure of Neotel is as follows: 

j State-owned enterprises (30 percent): 

Eskom and Transnet/Transtel 

j Nexus Connexion (19 percent) 

j SEPCO (51 percent) 

j Tata Group/VSNL (51 percent) 

j Two Consortium (24.5 percent) 

j Communitel (24.5 percent), a consortium comprising: 

MKhonto We Sizwe Military Veterans’ Association (MKMVA), 

Telecom Namibia and Premier Contracts Agency LLC. 

Through Transtel’s (National Railway Company’s private 

telecommunication company) large fibre optic network, Neotel 

will have core infrastructure capacity. As such, Neotel’s 

strategy is to provide bulk services to large customers, 

including ISPs and VANS operators, excluding last mile and 

back haul services. Neotel holds both PSTS and VANS 

licences. It purchased the network assets from Transnet and 

has leased the network assets of Eskom from Infraco. 

Wholesale international voice services for VANS and MNOs, 

plus a global IP transit service for ISPs, both using the VSNL 

International network, were launched 31 August 2006. 

Neotel has stated that it does not intend to engage in a price 

war with Telkom; however, business might see a substantial 

impact on international bandwidth costs.



The Under-Serviced Area Licenses (USALs) 

The Under-Serviced Area Licenses (USALs) are licenses that 

were issued to operators in areas identified by the Minister 

with less than 5 percent teledensity. There are about 

28 identified universal service areas. The Universal Service 

and Access Fund (USAF) subsidises successful license bidders 

with the through a total funding of R15 Million over a period 

of 3 years for each license holder. Licensees are obligated 

by their licenses to extend communications networks to underserviced 

areas, but only a handful of licensees are operational. 

The first phase of the USAL licensing process gave birth to 

seven USAL licensees. Below is a map locating the USAL 

municipalities. 

Figure A.19: Map of Seven Licensed USALS 

Source: USAASA Annual Report – 2006/2007 – 01/11/07 

Amatole Telecommunication Services 

j Licensed in DC 12 Amatole District, Eastern Cape 

j Started operating in January 2005 and licensed in May 

2005 

j Granted a WiMAX Spectrum licence in July 2006 making 

them the only USAL to own a WiMAX rollout license in 

the country 

j Mobile service officially launched on 1 November 2005 

j Subscriber base of 100 

j Agreement reached with Neotel on projects and 

infrastructure sharing Interconnection decision pending 

from Competition Commission 

Bokamoso Telecomms (B-Tel) 

j Licensed in DC 18 (Lejweleputswa District) 

j Began operations in November 2004 

j Finalising the Design of its Network Backbone Infrastructure 

j Subscriber base of 350 

Ilizwi Telecomms (ITEL) 

j Incorporated in 2002, composed of diverse shareholders 

from the OR Tambo District Municipality 

j Provide mobile, fixed-line and data services 


The mobile market is partially competitive and has seen 

services grow at an extremely rapid rate. Formerly a duopoly 

shared by Vodacom and MTN, the law required the regulator 

to assess the feasibility of further mobile licences in 1998. 

ICASA proposed two new mobile licences, but the then 

Minister approved only one, to the winning bidder Cell C. 

The mobile providers were required to get their fixed links 

and international supply from Telkom, until Sentech was 

granted an international gateway and carrier of carriers licence 

in 2001 and Neotel emerged in 2005. 

Market share in 2006 is as follows: 

j Vodacom (59 percent) 

j MTN (32.5 percent) 

j Cell C (8.4 percent) 

The mobile companies compete with each other on coverage 

and value-added services, such as voice mail, caller ID, 

e-mail, messaging, map directions etc. This competition has 

forced Telkom to introduce its own value-added services in 

order to remain competitive while retaining its price advantage. 

However, some analysts say that the mobile market is only 

a limited indirect source of competition for Telkom, because 

the mobile market does not compete on price. Neither Telkom 

nor the mobile companies feel pressure to lower prices when 

the other doesn’t. This convenient standoff can be explained 

in part by Telkom’s 50 percent share in Vodacom, the dominant 

mobile provider. Also, legislation prevents the VANS from 

providing voice telephony and competing. 

South Africa’s Sunday Times reported 4 September 2007 

that Telkom was close to selling its 50 percent stake in 

Vodacom to Vodafone. It also said MTN and a private 

consortium were bidding to acquire Telkom's fixed-line assets. 

The talks are currently in preliminary stages according to 

Vodaphone and MTN, but changes in the mobile market 

structure are likely to shift in the future. Analysts say the 

synergies Telkom had hoped to achieve with Vodacom have 

not materialised, as the two compete in areas including 

delivery of data and Internet access. 

In 2002, Vodacom was issued a written mobile cellular 

telecommunications service license by the Minister of 

Communications and ICASA, pursuant to the Telecommunications 

Act, 103 of 1996. 

Under this license, Vodacom is authorized to construct, 

maintain and use its public land mobile communications 

network for the provision of mobile cellular telecommunications 

services, and to interconnect with the public switched 

telecommunications network and the public land mobile 

communications networks of other licensed mobile cellular 

telecommunications service providers. 

197


The ISP market is competitive with over 200 providers. 

A list of over 150 providers is available at 

http://www.ispdirectory.co.za/A-Z/. 

The liberalisation of VoIP, the accelerating roll-out of ADSL 

broadband services and other IP-based infrastructure in 

South Africa is enabling some of the ISPs to turn into 

converged service providers. Although there are many ISPs, 

the industry is dominated by the big five first-tier ISPs. The 

second tier ISPs purchase their bandwidth from the first tier 

and resell it to other companies. Wireless data systems are 

likely to increase and pose a challenge to the fixed-line 

networks as ISPs seek more ways of delivering services. 


j National ICT R&D Strategy 2002 

Proposes the establishment of a dedicated agency to facilitate 

technological innovation. 

Aims to increase investment in the scientific human capital 

base and promotes the establishment of Centres of Excellence. 

Promotes research and development in appropriate forms of 

telemedicine that could assist in transforming rural health 

care 

Aims to find effective strategies for provision of educational 

services over the Internet. 


j 1996 Telecommunications Act, Act 103 

Established the independent regulator, the South African 

Telecommunications Regulatory Authority and the Universal 

Service Agency. 

Promotes the provision of a wide range of universal and 

affordable telecommunication services in its stated objective. 

j 2000 ICASA Act 13 

Established the Independent Communications Authority of 

South Africa (ICASA), thus dissolving the Independent 

Broadcasting Authority and South African Telecommunications 

Regulatory Authority and transferring their functions to ICASA. 

j 2001 Telecommunications Amendment Act 

Provides guidelines for the provision of under-serviced area 

licences (USALs) in areas where teledensity is less than five 

percent. The USAL shall provide any telecommunications 

services, including VoIP services, fixed-mobile services and 

public payphones. 

198 



j 2005 Electronic Communications Act 

Established the Universal Service and Access Agency of 

South Africa (USAASA). 

Provides for the facilitation and regulation of electronic 

communications and transactions, the development of a 

national e-strategy and promotes universal access to electronic 

communications and transactions and the use of electronic 

transactions by SMMEs. Provides for human resource 

development in electronic transactions, prevents abuse of 

information systems and encourages the use of e-government 

services. 

The Act attempts to shift from the vertically-integrated 

operators that have characterised the market structure to 

more horizontal service layers by modifying the licensing 

regime. The more horizontal framework is likely to be more 

suited to the IP-based networks that are likely to dominate 

communication in the future and the seamlessly integrated 

“infostructure” necessary for a modern economy. There are 

now just four basic categories of licences, each of which can 

be licensed in three ways (see table below): 

Table A.19b: Licence Categories 

Electronic Cell C 

Communications MTN 

Network Sentech 

Services (ECNS) Telkom 

licences Vodacom 

Individual Class Exempt 

Electronic VANS 


Services (ECS) 

licences 

Broadcasting SABC Community 

licences eTV broadcasting 

Radio FrequencyCell C Wireless local Very low power 

Spectrum (RFS) MTN loop less than 10 kw 

licence Sentech 

Telkom 

Vodacom 

There is also a provision allowing for foreclosure on competition 

on new infrastructure to induce investment into such networks. 

The act tacitly acknowledges the bottleneck created by the 

exclusivity to the SAT-3 landing station and the potential 

bottleneck in wireless local loop, and clearly enables ICASA 

to regulate Telkom in this regard. A local loop unbundling 

committee has been established by the DoC, in recognition 

of its importance to provide accessible and affordable 

broadband access.




ICASA was established in the ICASA Amendment Act 13 of 

2000, which was later amended in 2005. The Act can be 

accessed at http://www.Internet.org.za/icasa-act.html 

The Act’s sole purpose was to establish ICASA, thus transferring 

the functions of the Independent Broadcasting Authority and 

the South African Telecommunications Regulatory Authority 

to ICASA; and dissolving the former authorities. 

ICASA is charged with the following responsibilities: 

j make regulations and policies that govern broadcasting 

and telecommunications 

j issue licenses to providers of telecommunication services 

and broadcasters 

j monitor the environment and enforce compliance with 

rules, regulations and policies 

j hear and decide on disputes and complaints brought by 

industry or members of the public against licensees 

j plan, control and manage the frequency spectrum and 

protect consumers from unfair business practices, poor 

quality services and harmful or inferior products. 

The Universal Service and Access Agency (USAASA) 

The USAASA was established by the 1996 Telecommunications 

Act to manage the USF. All three (Telkom 

(R10M/yr), MTN (R5M/yr), Vodacom (R5M/yr)) contributed 

to a USF, which paid subsidies to needy persons towards the 

cost or access to telecoms and/or to Telkom and other 

operators. 

For the first five years, the Agency devoted most of its energies 

to support the creation of telecentres across the country, paid 

through the USF. It invited NGOs and community organisations 

to get involved. Those selected were given equipment and 

basic training; from that point, they were supposed to run 

the telecentres as self-sustaining entities. 

While its original target was hundreds of such telecentres, 

the Agency developed only 65, which experienced a variety 

of problems almost immediately. By 2001, one-third were 

not functioning, half did not have phones, and only a few 

had access to the Internet. By 2003, the situation had 

deteriorated even more. 

USAASA was unable to get crucial information from operators 

that would allow it to map telecom provision and thus 

effectively monitor progress. It never developed definitions, 

indicators or benchmarks for any key terms that would allow 

it to strategise effectively. In 2003, USAASA’s mandate was 

renewed and it underwent internal restructuring, including 

an audit of the remaining existing telecentres. 

The Agency is now working closer with the DoC and GCIS 

and is pursuing partnerships with other actors including 

Sentech. 

Interconnection Regulation 

The Electronic Communications Act 2005 obliges any person 

to interconnect to any other licensed person, wherever it is 

technically and financially feasible and will promote the 

efficient use of electronic communications networks and 

services. This same Act grants ICASA the authority to 

prescribe regulations to facilitate interconnection agreements. 

July 2007 ICASA released a notice for public comment on 

draft regulation. Interconnection remains a problem. As 

seen in the table below, there is a significant difference 

between fixed-line and mobile termination rates, with the 

latter remaining extraordinarily high. 

Table A.19c: Fixed and Mobile Termination Rates 

2006 SA R/c peak SA R/c off-peak 

Fixed termination rates 0.29 0.16 

Mobile termination rates 1.25 0.77 

Mobile to mobile 1.25 0.77 

The interconnection agreements between Telkom, Vodacom 

and MTN that preceded the Telecommunications Act were 

renegotiated and amended in 2001. An interconnection 

agreement, on substantially the same terms, was negotiated 

and concluded with Cell C. Telkom received a request to 

interconnect with the SNO-T, and negotiations on an 

interconnection agreement with them are under way. 

In 2000, the Minister of Communications approved and 

promulgated interconnection guidelines, which stipulate, 

among other things, that certain operators may be declared 

to be 'public operators', that certain operators may be declared 

'major operators' and certain telecommunication services to 

be declared 'essential services.' 

A major operator must provide essential services to public 

operators at the Long Run Incremental Cost (LRIC) of those 

services, including a reasonable allocation of common costs 

and the reasonable cost of capital. 

The Electronic Communications Act replaced the concept of 

major operator status with that of significant market power 

in a market segment and empowers ICASA to impose procompetitive 

conditions on operators found to have significant 

market power, which may affect the manner in which 

interconnection services are to be provided by such operators. 

In May 2005, ICASA initiated an enquiry into whether MTN 

and Vodacom should be declared major operators. If MTN 

and Vodacom were declared to be major operators, they, like 

Telkom, would be required to provide interconnection services 

at LRIC-based interconnection prices. 

199

Facilities Leasing 

The Electronic Communications Act 2005 obliges any 

electronic communications network service licensee, on 

request, to lease electronic communications facilities to any 

other licensed person, wherever it is technically and financially 

feasible and will promote the efficient use of electronic 

communications networks and services. 

The act obliges ICASA to prescribe a list of essential facilities 

including but not limited to (a) electronic communications 

facilities, such as local loops, sub-loops and associated 

electronic communications facilities for accessing subscribers 

and provisioning services; (b) electronic communications 

facilities connected to international electronic communications 

facilities such as submarine cables and satellite earth stations; 

and (c) any other such facilities. 


Telkom 

The universal service policy for Telkom was embodied in the 

strict licence conditions. 

As part of its five-year exclusivity period ending in 2002, 

Telkom had 16 service quality and line roll-out targets for 

the fixed-line business, including the following universal 

service obligations: 

j to build 2.69 million new access lines, including 

1.67 million lines in under-serviced areas 

j to connect 3,204 villages and, 

j to install 120,000 payphones 

Telkom fell short of its residential fault rate target, its aggregate 

fixed-line roll-out target, targets to provide service to underserviced 

villages and replacement of analogue lines with 

digital lines. They elected not to roll out lines in the last year 

of exclusivity where it was not economical to do so. As a 

result, the roll-out target fell short by 16,448 lines, or 0.6 

percent. Total incurred penalties for failing to meet these 

targets added up to approximately R15 million. 

Today, Telkom’s obligation is in the form of a contribution to 

the USF, and ongoing universal service obligations imposed 

on us through the generic terms of their license. 

The universal access policies were embodied in payphone 

rollout targets for both Telkom and the two mobile operators 

(MTN and Vodacom). 

Neotel 

The SNO, which currently offers only wireless services to 

corporate customers, has not targeted rural connectivity 

rollout or initiatives but is targeting the lack of affordable 

international connectivity. 

Moreover, the company is investing in SEACOM cable (that 

will connect South Africa to several East African countries, 

Europe and India), which is likely to be operational in 2009. 

200 



The cable has been designed to comply with the policy 

objectives of the government and NEPAD and will offer a 

ten-fold increase in the current international bandwidth 

capacity offered by the SAT-3 cable. 

Neotel disclosed that the company will invest ZAR 20 million 

in the project for the deployment of a cable landing station 

and all facilities within South Africa. Moreover, the company 

also stated that it will operate the facilities on an open access 

basis, which will promote the country’s international bandwidth 

market. 

Vodacom 

Vodacom's contribution to the USF is on the same basis as 

Telkom. New social obligations were imposed with Vodacom's 

new 1800MHz license and third generation spectrum 

license whereby Vodacom must provide and distribute 

2.5 million SIM cards and 125,000 handsets over a period 

of five years to under-serviced persons in under-serviced areas 

and Internet to 5,140 schools over an eight-year period. 

Vodacom's mobile cellular telecommunications license contains 

an obligation that required Vodacom to provide 

22,000 community services, or public access, telephones in 

under-serviced areas by June 1, 1999, which Vodacom 

satisfied. More than 25,000 community service telephones 

were deployed as of March 31, 2005. Two deployment 

methods are in use, namely a phone shop based telephone 

and portable telephone deployed at educational or other 

community institutions. Good progress has been made with 

the phasing out of the portable handsets and replacing them 

with phone shop based telephones, called Sigis. 

The training of the community services telephone operators 

in business skills received significant attention during the 

2004 and 2005 financial years. Vodacom funded the training 

of community services telephone operators in areas such as 

financial management and marketing. Vodacom's future 

universal service obligations will also consist of a contribution 

to the USF and possible new universal access obligations. 

Mobile Operators 

The mobile operators were not given specific rollout targets 

because they were licensed prior to the consultative policy 

process, and because mobile services were considered a 

luxury service that did not have mass appeal. 

In contrast to Government initiatives, preliminary data on 

community service terminals (CSTs) rolled out by the mobile 

firms show a higher rollout than was required by universal 

service obligations. Cell C met its required rollout of 

42,000 CSTs, while Vodacom rolled out over 50,000 CSTs, 

more than double its 22,000 requirement. Vodacom is rolling 

the CSTs out aggressively, making money from them and 

seeing them as a valuable source of revenue, despite the 

costs of calls being substantially lower than those from a prepaid 

or contract mobile phone. The cost of a call from a 

CST is set at R0.90 compared to the cost of an on-net peak 

call price of around R2.23 (average across all network 

providers). 


To date, no telecom operators offer WiMAX technologies to 

their customers. 

Five test licences have been granted by ICASA for the testing 

of WiMAX technologies to the following operators; - Telkom, 

cell C (GSM operator), MTN (GSM operator), Neotel, and 

Internet solutions (vans operator).




Table A.19d 


Combined primary, secondary 77 











(1995-2005) 

A recent report by the Human Sciences Research Council 

(HSRC) shows that South Africa faces a shortage of artisans. 

Each year, approximately one million young people leave 

school. Of these, only about 19 percent enter formal further 

or higher education. The remaining 81 percent enter the job 

market armed only with Grade 12 or lesser qualifications. 

The legacy of apartheid has left a segmented labour market 

with strong gender and racial biases expressed in the 

concentration of black and women workers in the lowerpaying, 

informal, and less skill intensive echelons of the 

occupational hierarchy. 58 

The current policy has seen the emergence of a Human 

Resources Fund to invest in training human resources for 

expansion in the telecommunications sector. network 

operators have contractual obligations to training-up lower 

skilled workers for positions in a more productive enterprise, 

in an effort to ensure that lower skilled workers are retrained 

rather than retrenched. 

Gauteng Online is the leading technology access programme 

in schools in the Gauteng province. It is a programme of the 

Gauteng provincial government through its Department of 

Education. The programme’s access model involves 

establishing a computer laboratory with 25 work stations, 

Internet and e-mail access, to be used for curriculum delivery 

in all Gauteng schools. 

The main goals of the programme follow: 

j Contribute towards building the human resources capacity 

of the province and the country through the provision of 

quality education 

j Contribute towards stimulating positive economic activity 

in the country through the creation of a strong local 

ICT industry that has a capacity for ICT development and 

innovation 

j Enhance the efficacy of government for improved service 

delivery and a better life for all 

j Position the province at the cutting edge of change through 

technological innovation 

j Bridge the digital divide 

In developing these outcomes into a coherent programme, 

the Gauteng Department of Education worked in partnership 

with companies like Accenture, KPMG, and Ernst and Young 

with whom it invited major companies in the South African 

ICT industry to participate in a pilot project to design the 

most suitable educational solution for Gauteng schools. 

Seven consortia were assembled in 2002-2003 to design, 

build, and run end-to-end solutions for a range of Gauteng 

schools. Some of these were successful in a later tender 

process while others were not. To date, Gauteng Online has 

reached an estimated 1,200 schools with PC labs. 59 


Thusong Service Centres 

(previously the Multi-purpose Community Centres) 

Thusong Service Centres are the successors to the previous 

Multi-purpose Community Centre, which were established by 

the Government to provide communities with development 

communication, information and services. 

They are one-stop centres where government at all levels can 

offer services and information about their programmes to 

local communities. Communities living near the centre and 

surrounding areas identify services based on their needs. 

Each centre is unique and could either be located in a single 

building, or be part of a cluster of buildings. The plan is to 

have one MPCC in each of the District and Metropolitan 

Municipalities across South Africa. 

Despite a few successes, insufficient numbers of MPCCs 

succeeded in delivering the services to the rural and poor 

communities. Rather than scrap the idea entirely, the 

Independent Democrats believe that the strategy can be 

refined and improved upon. 

The Independent Democrats suggest that approximately 

25,000 schools within South Africa be used as ICT hubs, 

since most school facilities are not used after school hours. 





201

GCIS, in partnership with USAASA, Department of Public 

Services and Administration (DPSA), State Information 

Technology Agency (SITA) and Department of Provincial and 

Local Government (DPLG) have embarked on a programme 

of deploying these Second Generation Thusong Service 

centres, which are based on what is termed a Six Block 

Service Model, with the following services: 

Table A19.e 

A list of Thusong Service Centres and contact information 

can be found at:http://www.usaasa.org.za/index.php?q=con,27, 

Thusong%20Service%20Centres 


Khanya Project 

The Khanya Project, established in 2001, is one of the first 

dedicated provincial government programmes in South Africa 

to address the shortage of educator capacity and the need 

to deliver curriculum to schools through the innovative use 

of ICTs. It aims to ICT-empower every educator in every school 

of the Western Cape by 2012. 

202 

j Block 1: Government Social and Administrative Services 

Access to official personal documents 

Access to grant applications and/or grants 

Health services 

Housing applications 

j Block 2: Office Services 

Phone, fax, scan and copy 

Email and Internet, desktop publishing and printing 

Postal services 

j Block 3: Education and Skills Development Services 

Adult Basic Education and Training/Further Education an 

Training 

Other training (e.g. computer training programmes) 

j Block 4: Local Economic Development (LED) Services 

Small business advise, support and development 

j Block 5: Business Opportunities and Services 

SMMEs (e.g. retail, trading stalls) 

Other private sector services (e.g. banks/ATMs) 

j Block 6: Information and Communication Activities 

Communication of government information and on-site 

guidance regarding services 

Community information 



The first phase is the establishment of a lab where the 

technologies will be installed together with the educational 

software, Internet connectivity, and security. The second 

phase focuses on the educational use of the technologies 

and includes training of educators in the use of ICTs. 

By 2007, the Khanya Project had delivered PCs and provided 

network infrastructure and training to 613 schools, while 

another 241 schools were in various stages of implementation 

(from the basic identification as a Khanya project school, to 

the final stage of training network administrators). They have 

provided almost 24,000 computers to these schools (just 

over half have been funded by Khanya or its donor partners 

and the rest have been procured by the schools themselves), 

and approximately 16,000 educators are being trained. 

Over 500,000 learners are already reaping the benefits of 

the project. 

Core funding for the project is provided by the provincial 

government of the Western Cape. Between 2001 and 2006, 

a total of R104 million (US$14.8 million) had been committed. 

In addition, donor organisations and corporate sponsors have 

contributed approximately R20 million (US$2.8million). 

Local communities contribute to the establishment of 

technology facilities in schools on the premise that education 

is a shared responsibility by the state, local community, and 

parents. At presen, approximately 20 percent of all costs are 

carried by the community. In turn, the facilities are made 

available to communities to enhance adult learning and, in 

particular, computer literacy. 

Shuttleworth Foundation 

Established in 2001, the Shuttleworth Foundation promotes 

and supports programmes in education, technology, and open 

content in South Africa. Its ‘Freedom Toaster’ is a selfcontained, 

computer-based, kiosk preloaded with free digital 

products including software, photography, music, and literature. 

The Freedom Toaster project began as a means of overcoming 

the difficulty in obtaining Linux and Open Source software 

due to the restrictive telecommunications environment in 

South Africa, where the easy downloading of software is not 

possible. 60 

For more information see www.shuttleworthfoundation.org 

Digital Doorway 

Considered the South African equivalent of the “Hole in the 

Wall” project piloted in India, the Digital Doorway is an 

initiative of the Centre for Scientific and Industrial Research 

(CSIR) and the Department of Science and Technology. 

It aims to introduce computer literacy to rural and 

disadvantaged communities by making computer equipment 

and open source software available in computer kiosks. 

The idea is to allow people to experiment and learn without 

formal training and with minimal external input. 

The concept is referred to as “minimally invasive education.” 

The project introduced a three-terminal configuration with 

one functioning as a server encased in a blue steel enclosure 

with vandal-proof metal keyboards, LCD screens, Web cams, 

speakers, and uninterruptible power supply. 122 sites have 

been commissioned to have access to the technology of which 

50 have already been rolled out throughout the country. 61 

Website: www.digitaldoorway.org.za 

60 Ibid. 

61 Ibid.

a20 




SwazilandProfile 


Ministry of Tourism, Environment and 


Address: Ministry of Tourism, Environment and 

Telecommunications; Warner Street; PO Box 

2652; Mbabane, Swaziland 


Swaziland Post and Telecommunications 

Address: Phutfumani Building, PO Box 125, 

Warner Street; M'babane; H100 


Contact Person: Mr Mduduzi S. Magongo 

Telephone: +268 40 46420 

+268 40 52000 

E-mail: minister@tourism.gov.sz 

Website: www.gov.sz 

Contact Person: Mr Mzwandile Richard Mabuza 

E-mail: mrmabuza@sptc.co.sz 

Website: www.sptc.co.sz 


203



The fixed-line market is monopolised by the incumbent 

Swaziland Post and Telecommunications Corporation (SPTC), 

which is also responsible for the following regulatory functions: 

j Licensing 

j Frequency allocation 

j Spectrum monitoring 

j Sector policy and development 

The establishment of an independent regulator is still pending 

as is the finalisation of a new telecommunications bill which 

could liberalise the industry. 


The mobile market is monopolised by MTN Swazi, which 

entered the market in 1998. It is formed as a consortium of 

SPTC (51%), MTN (30%) and Swaziland Empowerment Ltd. 

(19%). MTN Swazi has a geographical coverage of 

79 percent and a population coverage of 89 percent. MTN 

Swazi operates a GSM network and offers GPRS. 

There are currently over 120,000 subscribers connected to 

the mobile network representing a teledensity of over 

12 percent. SMS/e-mail services are available to all subscribers. 

The major focus for network development is in the rural areas 

since there is almost total coverage in the urban areas. 

Figure A.20: MTN Swazi Coverage Map 

Source: GSM Association Website 

204 




There is competition in the ISP market. 

There are currently 7 major ISPs with an estimated customer 

base of about 20 000. There are no licence obligations for 

ISPs except for an operation permit (Trading licence). There 

is therefore no requirement for contributions to a Universal 

Services Fund. 

Internet access rates (installation and monthly rentals) are 

pegged at 50 percent of the normal rates for primary and 

secondary/high schools. For calls to any ISP connected to 

the national gateway, the rate is equivalent to the local call 

rate regardless of location within the country. However, this 

level of discount still leaves ICT unaffordable to the majority 

of Swazis and levels of around 20 percent of the normal rates 

would be considered appropriate, i.e., affordable. 

The first ISP established in 1992 was UUNET. According to 

Balancing Act there are 4 primary ISPs that operate their 

own networks: AfricaOnline, Real Image, Swazi.Net governed 

SPTC, and POSIX. 

AfricaOnline provides digital dial-up service, leased line, and 

web hosting; Real Image provides single and network dial up 

as well as satellite connections; Posix offers dial up, leased 

line, web design and web hosting. Internet usage is growing 

reasonably fast and the level of penetration is well below 

international standards but about average in the region. 


j National Information and Communication Infrastructure 

(NICI) Policy and Plan 2006 

Prioritizes provision of basic ICT infrastructure schools in 

rural communities. 

Suggests campaign strategies, which include introducing 

hands-on usage of ICTs to raise awareness, especially in 

marginalized areas such as rural areas, e.g., telecentres 

Is based on the PRSP and identifies ICT strategies to achieve 

PRSP objectives, such as: 

Launching e-Government initiatives and new 

applications, e.g., e banking, e-cards, e-money, 

ecommerce 

Developing Agricultural Information Systems for rural 

community information centres 

Addressing infrastructure issues to enable universal, 

sustainable, ubiquitous and affordable access 

Establishing rural multimedia centres for women with 

the requisite ICT capacity building

j NICI Policy and Plan 



Policy Statements include prioritizing schools in rural 

communities for special attention in provision of basic 

ICT infrastructure required for the introduction of ICT and 

increasing awareness and campaign strategies which include 

introducing hands-on usage of ICTs/ applications especially 

in marginalized areas such as rural areas, e.g., telecentres. 

The NICI Policy and Plan is based on the Poverty Reduction 

Strategy and Action Plan (PRSAP). The NICI Policy and Plan 

outlines how ICTs can be used to help achieve the goals 

targeted in the PRSAP. 

Macro-economic stability 

Enabling legal and regulatory environment for service 

provision; 

Launching e-Government initiatives and new 

applications e.g. e-banking, e-cards, e-money, 

ecommerce, 

Rapid acceleration of economic growth based on broad 

participation 

Capacity building; 

Enabling legal and regulatory environment for service 

provision 

Agricultural Information Systems for rural community 

information centres; 

Empowering the poor to generate income and reduce 

inequalities 

Availing credit/loan information online to promote self 

employment and informal sector growth; 

Agricultural Information Systems for rural community 

information centres so as to promote rural production; 

Rural Multimedia Centres for women and requisite ICT 

capacity building. 

Fair distribution of the benefits of growth through fiscal 

policy 

Launching e-Government initiatives and new applications 

to benefit labour intensive activities including e 

education, e-health etc to benefit the population; 

Creating an enabling legal and regulatory environment 

to attract investment and partnerships for infrastructure 

growth; 

Availing credit/loan information online. 

Improving the quality of life of the poor 

Training and capacity building at the local level; 

Launching e-applications e.g e-education - enhancing 

educational opportunities and supplementing traditional 

education and ehealth for improving the quality of 

health care. 

Using GIS for poverty mapping and planning 

intervention. 

Improve good governance and strengthen institutions 

Local government leadership training for representatives; 

Launching e-Government initiatives to improve public 

management and accountability. 

j National Development Strategy-Vision 2022, 1997 

The National Development Strategy also mentions the need 

for the telecommunications sector to: 

Streamline the regulatory framework 

Allow competition in the telecommunications industry 

Base investment decisions on economic criteria 

Coordinate installation of communications infrastructure 

with national development agents 

Formulate and implement a rational communications 

policy 

Promote the economic empowerment of nationals by 

encouraging their participation in telecommunications 

as owners, managers, and technical operators 

Ensure that the network is in line with new technological 

developments abroad 

Legislation supporting Rural Connectivity 

j Act No. 11 of 1983 

Established and regulates the SPTC. 

According to WSIS and the ITU, there is also a draft national 

ICT policy, a draft telecommunications policy and draft 

telecommunications legislation currently being considered. 

205

Technology, Infrastructure and Rural Connectivity 62 

The fixed network is 100 percent digital and supported by 

a countrywide optical fibre network with self-healing capabilities 

via national rings. Protection is also provided via microwave 

radio networks. The fibre network has drop/insert facilities 

to deliver services to the communities through which it 

traverses along the major routes. The network can support 

Integrated Services Digital Networks (ISDN) up to 128 Kilobits 

per second (Kbps). Current connections are 46 000, thus 

giving a teledensity of about 4 percent. There is one 

International Gateway linking to the UK, USA, Austria and 

Zimbabwe via satellite and to South Africa RSA and 

Mozambique via terrestrial microwave radio and optical fibre. 

Data communication is enabled via a managed leased line 

network and data rates of up to 8 Megabits per second (Mbps) 

can be supported although the commonly utilised rate is 

512 Kbps. There also is in existence an Internet Protocol 

(IP) Gateway with a 1Mbps uplink and 2Mbps downlink, with 

back up via RSA at 2Mbps. 

Challenges to Deploying Appropriate Technologies 

The cost of using ICTs is still out of reach for most of the 

population. Nearly 70 percent of the population live on less 

than a dollar per day and a continuing drought has resulted 

in a food crisis that threatens hundreds of thousands of 

people with hunger. 

The NICI Policy addresses the following specific infrastructure 

issues: 

j A number of ICT equipment/gadgets are increasingly 

becoming available in Swaziland, but most if not all are 

imported and therefore attract duties and taxes, the cost 

of which is passed on to the end user 

j The ICT equipment is also “one size fits all” and not 

tailored to the needs of the market (consumers are forced 

to pay for undesired features) 

j Network rollout is often not coordinated with other strategic 

infrastructure development initiatives, thus foregoing the 

attended benefits associated with collocation of 

infrastructure 

j Internet penetration is on the rise although some content 

issues are still contentious especially with regards to 

security and pornography 

The Survey on ICT and Education in Africa finds several 

features constraining adoption of ICTs: 

j No explicit mention is made of gender equality and 

women’s empowerment with reference to ICTs in any 

policy 

j Lack of national infrastructure 

j Limited level of skilled personnel and champions within 

government to drive the national policy adoption and 

implementation 

j No government commitment to spend from national budget 

and limited financial support for civil society organisations 

like CET 

j Lack of local content 

206 




Table A.20 













(1995-2005) 

In 2001, there were 723 schools in Swaziland: 541 primary 

and 182 secondary. There is one national university as well 

as teacher-training and nurse-training colleges and a few 

skills-training institutes. 

The Swaziland Computer Education Trust 

The Swaziland Computer Education Trust (CET) is a nonprofit 

organisation that was set up 1999 in Mbabane with 

funding from private business sources within Swaziland to 

address the poverty of technical education across the country’s 

state school system. Its objective is to extend computer 

literacy and vocational ICT training to every child in secondary 

and high school in Swaziland. The computers are intended 

for use across the whole school curriculum with the aim of 

future Internet integration in education. CET facilitates the 

development of the necessary pedagogical materials and the 

delivery of professional pre-service and in-service training 

(INSET) for all Swaziland teachers. 

CET will install a 20-PC computer lab in each of the 

187 secondary and high schools across Swaziland and 

guarantee their sustainable use by providing full technical 

and maintenance back-up support facilities. CET has partnered 

with SchoolNet Africa and the Open Society Initiative for 

Southern Africa to upgrade its existing Technical Services 

Centre which serves to source, refurbish, and distribute 

second-hand computers to Swazi schools. 

CET is already directly providing teacher training in ICT and 

is currently negotiating with the Ministry of Education to 

integrate this provision within the existing programme of preservice 

and in-service teacher training. CET has installed 

20 computers in 40 schools and is providing effective 

maintenance and technical support. Teachers are given an 

introductory course in ICT trouble-shooting and comprehensive 

training in the use of computers in education specifically 

tailored for the Swaziland education system. 

62 From NICI Policy and Plan



Negotiations have begun, and agreement in principle reached, 

with the University of Swaziland (UNISWA) and the Swaziland 

College of Technology (SCOT) to incorporate these technical 

functions within the framework of the curriculum of their 

existing computer maintenance courses and work experience 

placements. This will replicate the successful South African 

model where diploma and degree students are given the 

opportunity to develop applied skills in computer installation 

and maintenance while establishing the capacity to deliver 

computer education in schools. In other words, they will 

actually install PCs in schools and provide technical 

back-up as part of their studies. 

j The Computer Project 

(funded by the Republic of China – Taiwan) 

This project is being implemented in close collaboration with 

the Ministry of Economic Planning and Development (MOEPD), 

and the Government Computer Services is the facilitator. 

The project is currently targeting secondary/high schools and 

equipping schools with IT equipment, i.e., PCs, printers and 

other accessories. The possibility of deploying Local Area 

Networks (LAN) in some schools is currently being explored. 

No charge is levied for ICT education although a minimal fee 

for equipment maintenance is charged. 

j The Prevocational Project 

(funded by the African Development Bank-AfDB) 

This is an AfDB funded initiative aimed at developing 

entrepreneurial skills. The project is currently being piloted 

in some secondary schools in the country and IT equipment 

(audiovisual equipment, VCRs, TVs, etc) was supplied through 

the Government Computer Services Department. 

The schools also benefited from this pilot project in that 

Business Studies teachers were attached for facilitating the 

teaching of ICT. 

j ACTIVE - The development of an ICT curriculum for 

Teacher Training Colleges (Japan funded initiative) 

The Ministry, in collaboration with UNESCO, is currently 

developing a curriculum for colleges. It is hoped that this 

will facilitate the development of a policy on ICT within the 

Ministry and will further guide the development of an ICT 

curriculum at lower levels of education. This will effectively 

facilitate the coordination of the several independent initiatives 

currently ongoing in schools. 

j Future Kids/Teachers Initiatives 

The Future Kids Initiative specialises in ICT literacy education 

for schools whilst the Future Teachers Initiative specialises 

in teaching materials. Future kids/teachers are active in other 

SADC countries with some schools using the output to facilitate 

entry requirements into the South African higher education 

system (matric) 

j University of Swaziland 

Offers an undergraduate degree in Computer Science and 

Electronic Engineering 

Swaziland Posts and Telecommunications Corporation Training 

Centre 

Swaziland Posts and Telecommunications Corporation Training 

Centre offers a wide range of basic, medium and advanced skill 

development courses in the areas of Postal, Telecommunications 

Engineering and Business Operations. 


j phone SPAZA – SPTC and MTN Swazi 

The Spaza business has become an integral partner in the 

delivery of telecommunications services to the public. 

Currently, on the fixed network, there are 2,765 lines providing 

connectivity to the phone Spaza operators, with a monthly 

billable revenue of E 2 million. Unfortunately, the charges 

to the end user are not regulated, leading at times to end 

user exploitation. 

The mobile network operator provides this service via a thirdparty 

through airtime resale. 

207


208 

a21 

TanzaniaProfile 


Ministry of Infrastructure 

Address: P. O. Box 9144 


Department of Communications 



Tanzania Communications Regulatory Authority 





Contact Person: Dr. Enos S. Bukuku 


E-mail: permsec@infrastructure.go.tz 

Website: www.infrastructure.go.tz 

Contact Person: Eng. A. B. Kowero 

National ICT Coordinator 

E-mail: abckowero@yahoo.co.uk 

koweroab@infrastructure.go.tz 

Website: www.infrastructure.go.tz 

Contact Person: Prof. John Nkoma 

Telephone: +255 22 211 8947 

E-mail: Dg@tcra.go.tz 

Website: www.tcra.go.tz 






The incumbent telecommunications operator Tanzania 

Telecommunications Co. Ltd (TTCL) was licensed to provide 

fixed-line telecommunications services during the exclusivity 

period from 2001 to 2005. The fixed-line telecommunications 

market was then liberalized and there are now two fixed-line 

telecommunications operators, the incumbent TTCL and 

Zanzibar Telecommunications Co. Ltd (ZANTEL). The two 

operators are licensed to provide fixed-line applications and 

network services and facilities across the whole country 

(Tanzania Mainland and Zanzibar). 


The mobile communications market is liberalised. Mobitel/Tigo 

was the first privately owned mobile operator to enter the 

market in 1994, and now there are four GSM mobile operators; 

namely, Vodacom, Celtel, Mobitel/Tigo and Zantel. 

However, according the TCRA, the trend of subscription growth 

among the operators from 2000 to 2007, as illustrated in 

Tables A.21a and A.21b, does not demonstrate high 

competition. 

Table A.21b: Subscriptions per Operator 

Operator Ownership Structure 

TTCL (licensed in 1993) 36% Government of Tanzania 

35% consortium of MSI (Now 

Celtel International) of the 

Netherlands and Detecon of 

Germany; the consortium has 

board and management control of 

the company 

14% local financial institutions 

10% international financial 

institutions 

5% TTCL employees 

Zantel (licensed in 2005) 18% Zanzibar Government 

34% Emirates 

Telecommunications Corporation 

(ETISALAT) 

24% Kinbary Investment of the 

Channel Islands 

24% Meeco International of 

Tanzania 

Year (Fixed) TTCL ZANTEL TIGO VODACOM CELTEL TOTAL 

2000 173,591 4,007 56,511 50,000 - 284,109 

2001 177,802 6,501 89,056 180,000 - 453,359 

2002 161,590 26,770 160,000 300,000 120,089 768,449 

2003 147,006 68,000 210,000 700,000 320,000 1,445,006 

2004 148,360 85,000 303,000 1,050,000 504,000 2,090,360 

2005 154,420 96,109 422,500 1,562,435 882,693 3,118,157 

2006 157,287 355,993 760,874 2,975,580 1,516,832 5,766,566 

Sep- 2007 233,890 553,975 992,036 3,693,062 2,250,828 7,723,791 

Market Share 3% 7% 13% 48% 29% 100% 

Source: TCRA Statistics http://www.tcra.go.tz/publications/telecom.html 

Subscription growth for all Operators is dropping except for TTCL which is shown to be increasing. 

The table below gives a detailed summary of Growth Pattern per each Operator. 

Table A.21c: Subscription Growth per Operator 

Table A.21a: Operator Ownership 

VODACOM TIGO CELTEL ZANTEL TTCL 

2000-2001 260% 58% 62% 2% 

2001-2002 67% 80% 312% -9% 

2002-2003 133% 31% 166% 154% -9% 

2003-2004 50% 44% 58% 25% 1% 

2004-2005 49% 39% 75% 13% 4% 

2005-2006 90% 80% 72% 270% 2% 

2006-Sept2007 24% 30% 48% 56% 49% 

Source: TCRA Statistics http://www.tcra.go.tz/publications/telecom.html 

209


The ISP market is liberalized and there are five ISPs licensed 

under the Old Licensing Regime: 

j Omnitech Systems Ltd. 

j Planetel Comm Ltd. 

j ULC Ltd. 

j ISP Tanzania Ltd. 

j Sawan IT.com 

There are also 37 operators with the ‘Applications Services’ 

Licenses, now licensed in the New Licensing Regime. 


j MKUKUTA (The National Strategy for Growth and 

Reduction of Poverty) 2006 

Aims to reach rural communities by opening up new 

communication channels. The Mkukuta Communication 

Strategy highlights that in order to provide cost-effective 

information services in places where computers, phone lines 

and the Internet are often unheard of, the communication 

strategy will look into the possibility of strengthening 

community information centres with up to date technology. 

An assessment will be made of what is already in place, 

working through, for example, youth information centres, 

teacher training centres, women’s information centres and 

district libraries to increase capacity to provide and gather 

information on poverty reduction. 

j The Rural Development Strategy (RDS) 2001 

Promotes the introduction of ICTs in rural areas through the 

creation of telecentres, which could provide such basic 

communication services as voice, fax, e-mail, Internet access, 

etc; public and semi-public sector services such as 

telemedicine, distance education, municipal governance 

services, etc; and private sector services such as news 

distribution, telecommuting services, training, access to 

information on markets, crops and weather conditions. 

The rural telecentres should perform the following services: 

j Act as a local network, a place to meet 

j Provide a wide range of services for the local community 

j Ensure that a wide range of people understand IT and 

other new technologies and are able to use them to harness 

the potential around them for development 

j Provide local employment, training and business services 

j Provide a local and more accessible base for training and 

education. 

j National ICT Policy 2003 

Group policies fall into 10 Priority Areas; namely, ICT Strategic 

Leadership, ICT Infrastructure, ICT Industry, Human Capital, 

Legal and Regulatory Framework, Productive Sector, Service 

Sector, Public Services, Local Content and Universal 

Communications. 

210 



Universal Access Policy Challenges include the following: 

j Increase ICT capacity in terms of bandwidth and the 

penetration of services 

j Leverage community access points for provision of smart 

services 

j Improve coverage of complementary functional utilities 

j Develop locally relevant content that attracts users and 

adds value to their daily lives 

j Provide affordable access to ICT 

j Increase awareness of benefits of ICT access and training 

j Encourage partnerships among public, private and 

community sectors at all levels in support of universal 

access initiatives. 

j Create incentives for service providers to deploy services 

in rural and underserved areas, as well as disadvantaged 

groups. 

Establishes the Rural Telecommunication Development Fund, 

offering special incentives to investors in rural ICT provisions, 

supporting the construction of rural telecentres and involving 

local government authorities in ICT utilization and promotion. 

Aims to look into ways of reducing taxes on ICT related goods 

and services to make them affordable and accessible to more 

citizens. 

Encourages financial institutions to give particular support 

to investors in rural ICT services. 

j National Telecommunications Policy 1997 

Aims to ensure the accelerated development of an efficient 

telecommunications network that can provide an infocommunication 

infrastructure and universal access to 

telecommunications services to all segments of the population. 

Defines the roles of the ministry, regulator and operators; 

advocating liberalization and competition. 

Emphasises the need for development of telecommunication 

services in rural areas. Aims to provide each village with 

telecommunication facilities by the year 2020. 

Provides for the establishment of the Rural Telecommunication 

Development Fund. 


j Tanzania Communications Act of 1993 

Established the independent regulator, the Tanzania 

Communications Commission. 

j Tanzania Communications Regulatory Act No. 12 of 2003 

Merged the Tanzania Communications Commission and 

Tanzania Broadcasting Corporation into a new entity, 

the Tanzania Communications Regulatory Authority (TCRA).



j Universal Communications Service Act 2006 

Established a fund that will promote ICTs in rural and underserved 

urban areas by subsidizing operators investing in rural 

areas. The fund is not yet operational. 


The 2003 Tanzania Communications Regulatory Authority 

(TCRA) Act established the TCRA, whose responsibilities 

follow: 

j Promote of competition, economic efficiency, and 

availability of regulated services 

j Protect the interests of consumers 

j License and enforce license conditions of broadcasting, 

postal, and telecommunications operators 

j Establish standards for regulated goods and services 

j Regulate rates and charges 

j Manage the radio frequency spectrum 

j Monitor the performance of the regulated sectors and 

implementation of ICT applications 

j Conduct necessary enquiries for the purpose of carrying 

out its functions 

New Converged License Regime 

In 2005, Tanzania moved to a converged licensing framework, 

in order to achieve the following objectives: 

j To encourage the growth of new applications and services. 

j To simplify existing licensing procedures to ease market 

entry and operations 

j To create a set of stand-alone regulations so that issues 

such as interconnection, QoS, UA/US, spectrum and 

number allocations can be addressed comprehensively 

j To ensure regulatory flexibility to address market and 

technological developments 

j To ensure efficient utilization of network resources, so 

that individual networks may be used to provide a broad 

range of ICT services 

j To encourage market entry by a full range of operators, 

including large scale and micro entrepreneurs 

j To ensure that the transition to a converged licensing 

framework fosters a level playing field among all operators. 

The technology- and service- neutral licensing framework has 

four categories of licences, as follows: 

j Network Facility Licence (NFL) 

Authorises ownership and control of electronic communication 

infrastructure including Earth Stations, Fixed links and cables, 

Public Payphone facilities, Radio communications transmitters 

and links, Satellite hubs, Satellite control station, Space 

station, Submarine cable landing centre, Switching centre, 

Tower, poles, ducts and pits used in conjunction with other 

network facilities. 

j Network Service Licence (NSL) 

Authorises the operator to establish electronic communication 

networks and deliver services. This category includes Bandwidth 

services, Broadcasting distribution services, Cellular mobile 

services, Access applications service, Space Segment Services. 

j Application Service Licence (ASL) 

Authorises reselling or procurement of services from Network 

Service operators. The salient feature of this Licence is that 

the licensee does not own network infrastructure nor operate 

network. Examples are Internet providers, virtual mobile 

provider, payphone services, Public cellular services, 

IP telephony, Public 

j Content Service Licence (CSL) 

Authorises the provision of content such as Satellite 

broadcasting, Terrestrial TV Broadcasting, Terrestrial radio 

broadcasting and other electronic media. 

Licence Obligations 

TCRA requires all operators to expand their services up to 

rural areas in their licence obligations. 

The 2005 TCRA Regulations 

j The Tanzania Communications (Radiocommunication and 

Frequency Spectrum) Regulations 2005 

j The Tanzania Communications (Tariff) Regulations, 2005 

j The Tanzania Communications (Licensing) Regulations, 

2005 

j The Tanzania Communications (Interconnection) 

Regulations, 2005 

j The Tanzania Communications (Access and Facilities) 

Regulations, 2005 

j The Tanzania Communications (Type Approval Of Electronic 

Communications Equipment) Regulations, 2005 Requires 

new technologies like WiMAX, VoIP etc to be tested by 

TCRA before being approved for use in the country. 

j The Tanzania Communications (Broadband Services) 

Regulations 2005 

211


Vodacom is currently implementing a project with the Ministry 

of Industry, Trade and Marketing to access prices of agricultural 

cash crops through SMS. A formal monitoring and evaluation 

process has not been conducted, but popularity can be seen 

from the increased access to the service. 

The Economic and Social Research Foundation (ESRF) found 

that in the Kilimanjaro Region, the Lyasongoro Village Chairman 

complained that the village did not benefit from the three 

signal/communication towers erected in the village, other 

than the few who had access to mobile phones. He urged 

that communication operators also contribute to other village 

development projects like building schools, dispensaries and 

roads, which would benefit the whole village. The ESRF 

emphasises that, other than providing basic communication 

services, service providers need to conduct research to 

establish what other services in relation to other sectors could 

be provided through mobile phones. 

Interconnection Policies 

Every operator has an interconnection policy as per license 

condition. There is an interconnection regulation in accordance 

to TCRA Act of 2003. The determination is done through 

inquiry whereby every operator suggests interconnection tariffs 

to be discussed publicly before the operator enforces its 

usage. 

Sharing infrastructure 

There is a condition for sharing of infrastructure facilities 

amongst operators. All operators cooperate on sharing 

infrastructure facilities in Tanzania. 


The fixed-line infrastructure is copper cable. Wireless Local 

Loop, VSAT and fibre-optic cables are used for backbone 

infrastructure to some areas. 

Wireless infrastructure is both GSM, CDMA. 


Most rural areas and some district headquarters lack electricity 

services, limiting the potential for powerline communications. 

The main source of electricity energy in Tanzania is hydropower 

and alternative sources of electricity in rural areas are 

power generating plants and solar power. 

The Energizing Rural Electrification is one of the big initiatives 

by the Government of Tanzania aiming to promote rural 

electrifications and communications. There are very clear 

government policies aiming at promoting rural electrifications 

in Tanzania. 

212 




Table A.21.d 













(1995-2005) 

j The National Council for Technical Education Act 1997 

The National Council for Technical Education Act was enacted 

in 1997 with responsibilities of registering and accrediting 

technical institutions capable of delivering courses, promote 

and review technical education and training policies in the 

light of changing technologies and economic development. 

All training institutions must be accredited by NACTE. 

The Government allocates funds in its budget, through the 

Higher Education Student's Loans Board, to facilitate training 

in higher learning institutions. Any Tanzanian student is free 

to apply. 

The following institutions provide courses and degrees in ICTrelated 

fields: 

The University of Dar es Salaam 

Courses offered are electronics and telecommunications 

courses at the faculty of Virtual Education and College of 

Engineering and Technology. 

Other courses are computer engineering and computer 

sciences. The courses are expensive for the majority of 

Tanzanians to afford. Some students manage to take the 

courses thanks to the Higher Education Student’s Loans 

Board. 

Dar es Salaam Institute of Technology 

Courses offered are Electronics and Telecommunications and 

Computer Engineering. The courses are expensive for the 

majority of Tanzanians to afford. Some students manage to 

take the courses thanks to the Higher Education Student’s 

Loans Board. 

St. Joseph Institute of Technology and Engineering 

Courses offered are Electronics, Telecommunications, 

Information Technology and Computer. 

Open University of Tanzania (OUT) 

Offers online courses to its students across the entire country.




Installation of the National ICT Backbone Infrastructure 

The Ministry of Infrastructure Development has initiated the 

Installation of a fibre-optic backbone, connecting all districts 

in Tanzania to the national backbone by 2010. The initiative 

will also provide connectivity to the neighbouring countries 

and the East African Submarine Cable System (EASSy Cable). 

The Rural Multipurpose Community Telecentres / Sengerema 

The Rural Multipurpose Community Telecentres are facilities 

in rural areas facilitating rural community access to 

opportunities to improve their income through market access 

for their products, online education and communication with 

their customers and business partners. 

Many schools (secondary and primary) in Tanzania are in 

rural areas where there is a lack of communications 

infrastructure and facilities. Establishment of telecentres will 

promote the use of ICTs as tools for learning and teaching. 

On the other hand, in order to stimulate access to various 

ICT tools, the ESRF finds that the lack of local content is a 

disincentive for people to use ICTs. It is the responsibility of 

Government and other stakeholders to ensure that appropriate 

local content can be easily available to people. 

One rural multi-purpose community centre is located in 

Sengerema District in the Mwanza region, close to Lake 

Victoria. 

The centre was initiated by the Tanzania Commission for 

Science and Technology (COSTECH) and funded in 

collaboration between a number of international donors, 

national actors and the local community of Sengerema. (IDRC, 

UNESCO and ITU/OUT, TCRA, TCC, TLSB, PMO, TCCIA). 

The Sengerema centre targets rural communities of Sengerema, 

including: schools, colleges, health institutions, fishermen, 

religious institutions, farmers, small-scale industries / miners, 

businessmen / women and public and government institutions. 

It promotes the use of Internet, photocopying and desktop 

publishing services, to develop appropriate local content, to 

influence national policy on telecentres and to promote 

information and communication services for the rural 

population. Relevant local information is posted on the 

website, including information on education (list of local 

secondary schools, computer courses), health, social issues, 

economic and political information, etc. 

Since its establishment in 2001, over 1,000 people have 

been trained in information technology to a certificate level. 

Most of these are female, a group which has up to now been 

denied access to education and its privileges. Moreover, the 

community has observed changes owing to ICTs and availability 

of access to information in the following ways: 

j Farmers and livestock owners and businessmen/women 

now opt to search for information including on prices, 

markets, spare parts etc 

j There is improved performance in schools and colleges 

as students and teachers search for material on the 

Internet 

j Overall community lifestyles have changed, as individuals 

have developed Internet habits such as browsing for 

information, e.g. on diseases, preventative measures and 

cures, job opportunities and political information 

j The individual cost of communication is going down, 

owing to increased use of Internet and email: these are 

relatively cheaper, faster and more reliable than traditional 

means 

Following are critical success factors identified by the 

Sengerema centre: 

j Collaboration and a participatory approach 

j Adaptation of existing infrastructure 

j Community and Government ownership 

For more information see www.sengerema.or.tz 

Vodacom Rural telephone kiosks “vibanda vya simu” 

These telephone kiosks are not franchises but rather private 

initiatives run by local residents as a form of business. Some 

of these set up “booths” at convenient places, e.g. bus stops, 

post offices, markets or restaurants, where people can easily 

access them. 

The phone kiosk services have also been offered as an 

extension service for other major businesses, shops or Internet 

cafes. Most of these kiosks offer phone services, including 

landline phones where available, phone vouchers and airtime, 

and some even charge a fee to the telephone called. 

In Njombe district, about 10 kiosks offer the same service 

at the major bus stand. Most of the business owners buy 

voucher cards at a low price and sell these at a profit. 

Telephone service providers have been supporting this by 

providing different outlets. Vodacom has “containers” reaching 

rural villages where Vodacom towers are available. 

These containers can be either purchased or hired by the 

rural community and are monitored to make sure only Vodacom 

products and services are offered. 

Civil Society Organisations 

Some Civil Society Organisations (CSOs), e.g., the Foundation 

for Civil Society (FCS) which funds CSO priority activities, 

have started to create awareness on ICTs to the organisations 

they fund. FCS is freely developing a website for these CSOs, 

which will be uploaded with their own content. 

This is to increase accessibility of content on local 

organisations. Training will then be provided on use of these 

website and other ICT tools, especially e-mail to promote 

communication and the Internet to access information. 

213

Agricultural Marketing Systems Development Programme 

(AMSDP) 

The Ministry of Industry, Trade and Marketing has been 

implementing SMS agricultural market information with 

Vodacom since 2005. Agricultural field officers collect 

information three times a week, and this is fed to the Ministry's 

Marketing Department, which forwards it to Vodacom to 

finalise data entry into the server. One can send an SMS to 

a particular number and get the latest prices of cash crops 

by phone. 

The aim of this is to enhance accessibility of market prices 

for farmers who now have information to help with negotiations 

with middlemen. There has been no impact evaluation of 

this initiative yet. However, evidence from the Ministry shows 

that people call in to ask for the information. The programme 

has not yet been marketed by either party in rural communities, 

except by word of mouth. Thirty-six districts located in eight 

regions of Tanzania Mainland are the major beneficiaries. 

These are the areas with high crop yields but are faced with 

serious market problems. 

214 



These districts are located in Arusha, Manyara, Kilimanjaro 

and Tanga regions in the Northern Zone and Iringa, Mbeya, 

Rukwa and Ruvuma regions in the northern Highlands zone, 

which in agriculture circles are popularly known as the 

“Big Four.” 

The implementation of the AMSDP is done through the 

following five components: 

j Agricultural Marketing Policy Development 

j Producer Empowerment and Market Linkages 

j Financial Market Support Services 

j Rural Marketing Infrastructure 

j Programme Organisation and Coordination




a22 

UgandaProfile 


Ministry of Information and 

Communications Technology 

Address: Social Security House, 

Plot 4 Jinja Road, P.O Box 7817, Kampala 


Department of Telecommunications 

and Infrastructure Development 

Address: Social Security House, 

Plot 4 Jinja Road, P.O Box 7817, Kampala 


Uganda Communications Commission (UCC) 

Address: Plot 1 Colville Street, 

12th Floor Communications House 


Rural Communications Development 

Fund (RCDF), UCC 

Address: Uganda Communications Commission, 

Plot 1 Colville Street, 

4th Floor Communications House 


Contact Person: Dr. Jimmy Pat Saamanya 


Telephone: +256 41 423 6262 

+256 41 425 8202 

Contact Person: Dr. Godfrey Kibuuka 

Director 

Telephone: +256 41 423 6262 

+256 41 425 8202 

Contact Person: Mr. Patrick Masambu 


Telephone: +256 41 433 9000 

E-mail: ucc@ucc.co.ug 

patmas@ucc.co.ug 

Website: www.ucc.co.ug 

Contact Person: Mr. Bob Lyazi 

Director/RCDF 

Telephone: +256 41 433 9000 

E-mail: rdcf@ucc.co.ug 

lyazi@ucc.co.ug 


215



The 2006 Telecommunications Policy liberalised the market 

and opened it to anyone who meets the entry requirements. 

Uganda Telecom, the incumbent operator, was corporatised 

in 1998 and later privatised 2000, with the sale of 51 percent 

of shares. The majority of the company shareholding is held 

by Lap Green, a subsidiary of Libya Africa Investments 

Portfolio. Uganda Telecom controls 73 percent of the 

fixed-line market. 

The SNO, MTN, entered the market in October 1998 and 

has 27 percent of the fixed-line market share, based mainly 

on fixed wireless access technologies. Ninety-seven percent 

of MTN Uganda is held by MTN International. 

The number of operators is as follows (see section on Regulation 

Supporting Rural Connectivity for details of licensing 

framework): 

j 2 National Telecommunications Operators (MTN Uganda 

and Uganda telecom) 

j 1 Cellular Telecommunications Operator (Celtel Uganda) 

j 9 licensed Public Infrastructure Provider + Public Service 

provider licensees 

j 5 licensed Public Service Providers (capacity resale) only 

j 7 licensed Public Service Provider (voice and data) only 

j 2 licensed Public Service Provider (voice and data) + 

(capacity resale) 


The mobile market is fully liberalised and open to anyone 

who meets the entry requirements, subject to availability of 

spectrum. 

There are two national telecommunications operators (Uganda 

Telecom and MTN Uganda) providing mobile services, as well 

as one cellular telecom operator (Celtel Uganda). 

Table A.22a 

216 

Mobile Operator Ownership Market Share 

MTN Uganda 97% 52% 

MTN International Celtel Uganda 

100% Mobile of Kuwait31% 


Company (Zain) 

Uganda Telecom Lap Green, subsidiary 17% 

Telecel of Libya Africa 

Investments Portfolio 

GOU 


Under the unified licensing regime, any public service / 

infrastructure provider can provide data services. The major 

ISPs and their market shares are displayed in Table A.22b. 

Table A.22b 



Operator Market share Ownership 

(based on bandwidth) 

UTL 31.4 LAP Green 

and GOU 

Afsat 39.5 Afsat 

Communications Communications, 

Uganda Ltd a subsidiary of 

MWEB 

MTN 15 100% MTN 

International 

Infocom 7.8 

Others 6.3 


The market is liberalised. Under the unified licensing regime, 

any public infrastructure provider can operate its own 

infrastructure. 


j Telecommunications Policy 1996 

Aims to increase the geographical distribution and coverage 

of communications throughout the country by encouraging 

private sector investment (rather than government intervention) 

Accordingly the reform strategy sought to achieve the following: 

Facilitate private sector participation in the 

communications sector as well as in the overall national 

development 

Provide a legal framework for the development of 

communication services in Uganda 

Separate the roles of policy formulation, regulation 

and operations 

Introduce competition through licensing of multiple 

operators 

Aimed to liberalise the telecommunications sector with the 

following objectives: 

Put in place an independent regulator; 

Increase teledensity from 0.28 lines per 100 people 

to 2.0 lines per 100 people by the year 2002; 

Improve communication facilities and quality of service, 

and add a variety of new communications services; 

Serve the unmet customer demand and, 

Increase the geographical distribution and coverage 

of the services throughout the country. 

Installs payphones and public call offices and other 

appropriate telecommunications services in rural areas.

National ICT Policy 2003 



j Uganda’s Rural Communications Development Policy 

2006 

Aims to provide access to basic communication services 

within a reasonable distance to all people with the specific 

target of all sub-counties with a population of at least 

5,000 to have access by 2005. 

Promotes ICT usage in Uganda by supporting introduction of 

ICT use in at least one “vanguard” Institution in every district 

of Uganda by 2003. 

Promotes the use of Internet by establishing an Internet Point 

of Presence in every district and an Internet Exchange Point. 

Encourages special interconnect arrangements to enhance 

rural communication sustainability. 

Promotes provision of communication services in rural areas 

as a profitable business. 

Maintains the RCDF as the principal tool of rural 

communications development and aims to ensure effective 

and competitive utilization of the RCDF to leverage investment 

in rural communication development. 

Uses the RCDF to establish basic communication access, 

through SMART subsidies, to develop rural communications. 

That is, the RCDF shall be used to encourage commercial 

suppliers to enter the market but not to create unending 

dependency on subsidy. 

Provides guidelines for the disbursement of RCDF funds to 

provide basic communications and Internet services. 

Observe basic licensing principles including monopoly rural 

communication licenses for predominantly rural areas with 

sparse population and the expectation that operators will 

choose to use state-of-the-art technology to deliver services. 

j New Proposed Telecommunications Policy 2006 

Aims to promote and enable the building and establishment 

of an appropriate infrastructure that supports ICT for 

development and achieves universal access in Uganda. 

Facilitates the delivery of information and service needs to 

all sectors of society, especially rural communities. 

Promotes fair competition and private investment in the 

sector with emphasis on developing and encouraging local 

participation, and where applicable avail targeted incentives 

aimed at stimulating investments in the sector 

Aims to increase the level of ICT functional literacy in all 

sectors and build human resource capacity to support the 

sector. 

Establishes institutional data access points with a minimum 

speed of 256 kbps for all primary education schools, post 

primary institutions, government health units and other 

population centres exceeding 1200 people. Agricultural 

extension units and other public institutions will be included 

as shall be determined from time to time by government. 

j Telecommunications Infrastructure Guidelines 2006 

Adoption of full competition and technology neutrality regime. 


j Uganda Communications Act 1997 

Established the independent regulatory authority, the UCC. 

Encourages national coverage of communications services 

and products, with emphasis on provision of communications 

services; and establishing and administering a fund for rural 

communications development. 

j Uganda Investment Code (Laws of Uganda cap 92) 

Permits 100 percent foreign shareholding in the telecommunications 

sector. The code does not, however, make 

specific provisions and applicable incentives for rural connectivity. 


The 1997 Communications Act established the independent 

regulatory authority, the UCC to: 

j Enhance the national coverage of communications services 

and products, with emphasis on provision of communication 

services. 

j Expand the existing variety of communications services 

available in Uganda to include modern and innovative 

postal and telecommunications services 

j Reduce the government’s direct role as an operator in the 

sector. 

j Encourage the participation of private investors in the 

development of the sector 

j Introduce, encourage and enable competition in the sector 

through regulation and licensing competitive operators to 

achieve rapid network expansion, standardisation as well 

as operation of competitively priced, quality services. 

j Minimise all direct and indirect subsidies paid by 

Government to the communications sector and for 

communications services. 

j Establish and administer a fund for rural communications 

development 

217

The Rural Communications Development Fund (RCDF) 

The 1991 Communications Act charged the UCC with the 

establishment and administration of a fund for rural 

communications development. The 2001 RCDF Policy later 

provided guidelines for the Fund’s operation. Its main objective 

is to provide access to basic communication infrastructure 

and services at affordable rates and within reasonable distance 

to all people in Uganda. 

The RCDF received a US$11 million credit from the World 

Bank towards the ongoing telephony network expansion in 

underserved areas, installation of Internet points of presence 

in 32 districts, establishment of telecentres (10 schoolbased, 

15 postal-based and 10 NGO/CBO-based) and technical 

assistance. This initiative runs through the end of 2008. 

Approximately US$3 million is financed from the UCC/RCDF 

1 percent gross annual levy on operators’ revenues. This is 

being utilised for setting up public payphones, Internet points 

of presence, telecentres, ICT training centres in underserved 

locations including districts, sub-counties, educational and 

health institutions, among others. 

The RCDF supports establishment of ICT school labs with a 

current focus on secondary schools and vocational institutions. 

Eighty educational institutions are to benefit in the 2007/08 

financial year. Resources permitting, other educational 

institutions are to be considered in subsequent years. Under 

the new policy in the offing, this programme is to be scaled 

up to primary educational institutions at a later date. 

RCDF supports health data points with current focus on data 

points at district directorate of health services. In the first 

phase, 43 district health offices will be installed with data 

points as a measure to facilitate to data management and 

information sharing in the health sector. It is anticipated that 

this will be scaled at health centre III level at a later date. 

The RCDF is establishing ICT training centres at the district 

level, support to the Uganda Institute of Communications 

Technology and establishment of computer laboratories in 

government secondary and vocational institutions. Resources 

permitting, this is a rolling programme and is later to be 

scaled to primary educational institutions. 

The programme is overseen by the RCDF Board, which is at 

arms length with the Commission. Additionally, a lean project 

coordination unit is in place charged with the responsibility 

of managing the day-to-day operations of the programme. 

In cases where there is need for additional human resources 

and expertise, this is sourced internally within UCC and 

externally in terms of consultancy services 

Quarterly reports regarding the operations of the programme 

are prepared and regular Board meetings are conducted. 

Regional workshops and public dialogues are held on a 

quarterly basis with the objective of obtaining public inputs 

into the programme and enlisting their ownership of the 

programme initiatives. External audit of the programme 

operations is carried out by the Auditor General’s Office. 

Universal Service Regulations 2005 

The 2005 Communications (Universal Service) Regulations 

include, among other services, the provision of a fixed 

communication connection capable of supporting voice 

telephony, fax and data transmission; reasonable geographic 

access to public call boxes and the delivery of affordable 

basic communication service in its definition of universal 

service. 

218 



It directs the UCC to designate a universal service provider 

to each specified universal service area. All operators issued 

with facilities-based licenses or that have an annual turnover 

greater than 100,000,000 shillings should be designated as 

a universal service provider, although any operator can apply. 

Each universal service provider must submit a draft policy 

statement and draft standard marketing plan to the UCC. 

Unified Licensing Regime 

Under the new licensing regime the telecommunications 

market in Uganda has been structured in the following manner: 

Public Service Provider (PSP) 

There are two types of PSP licenses: 

j Public voice and data license 

This category permits holders to provide telephony and data 

services of any kind (mobile or fixed or both) using any 

technology of choice (cellular, satellite, Internet Protocol, 

traditional wired networks). Under this scheme, the licensee 

is also required to use capacity/facilities of a licensed 

infrastructure provider or can build their own infrastructure 

after acquiring an Infrastructure Provider Licence. 

j Capacity resale license 

This category permits the holder to resell leased 

telecommunications services or capacity. Services here include 

calling cards (international or re-branded local ones) and sale 

of telecommunications bandwidth (from local or foreign 

operators) to PSPs. 

j Public Infrastructure Provider license 

This licence permits the holder to establish, operate and 

maintain infrastructure for the provision of communication 

services (if they are a PSP licence holder) and/or offering it 

commercially for use to PSPs. Additionally, in case the 

licensee wishes to use wireless means to deliver services, 

they will be required to apply and pay for frequency spectrum 

separately. 

j General License 

In this category, licensees do not pay licence fees but are 

required to register with the UCC to regularise their operations. 

At the moment, public pay communications networks such 

as payphone kiosks, fax bureau and Internet/cyber cafés, are 

licensed. 

Service providers under this category are also allowed to use 

VoIP technology within their phone shops and are not allowed 

to provide any prepaid services to the public unless they 

obtain the necessary licence.

Table A.22c 



License Services Provided 

National Telecommunications Infrastructure services 

Operator (NTO) Whole sale capacity resale 

Retail voice and data 

PIP + PSP Infrastructure services 

Whole sale capacity resale 

Retail voice and data 

PSP Voice and data Service resale 

General Licenses 

Payphones and Internet cafes 


Uganda Telecom 

Uganda Telecom’s fixed-line network has 20 percent coverage, 

concentrated mainly in Kampala and a couple of other major 

district capitals with coverage in rural areas on a relatively 

small scale. 

Before adoption of the new licensing regime in 2006, Uganda 

Telecom was subject to roll out targets as the exclusive 

national operator. But, in the current regime, it is no longer 

mandatory. 

UTL had to meet the following conditions: 

j Specified number of subscriber lines installed in each 

region of Uganda 

j Specified number of payphones installed in each region 

of Uganda 

j Payphones installed at all county headquarters 

Figure A.22a: Coverage Map of Uganda Telecom’s 

Fixed-line Network 

Source: Uganda Telecom, http://www.utl.co.ug/utl.php?i=87 

Uganda Telecom also has about 50 percent mobile coverage 

with wider coverage in rural areas than with its fixed-line 

network. 

UTL CDMA Coverage UTL GSM Coverage 

Source: Uganda Telecom Source: Uganda Telecom 

Interconnection Policies 

Interconnection is a matter of commercial negotiations. The 

regulator maintains oversight providing the final approval to 

all interconnection agreements. This ensures that such 

agreements are competitive and are as close to cost as 

possible. The regulator also provides guidance in cases of 

misinterpretation or failure to amicably reach settlements. 

The regulator may also impose applicable interconnection 

fees. 

Detailed guidelines are incorporated in section 94 of the 

Communications Act and Telecommunications (Interconnection) 

Regulations, 2005. These guidelines guard against unfair 

competition practices like vertical price squeezes and refusals 

to interconnect. These guidelines allow for asymmetric 

interconnection rates for rural areas, which enjoy special tariff 

rates and/or rates applicable in urban areas. 

Tariff Policies 

Tariffs are guided by Uganda Telecommunications (tariffs 

and accounting) Regulations, 2005. 

A price cap regime has been established for basic telephony 

services (fixed telephony) while mobile voice tariffs have to 

be reviewed and approved by the regulator before application. 

These prevent unfair price increments and predatory pricing 

schemes to enhance competition in the sector. The regulations 

enabled application of special pricing schemes for rural 

communities. 

MTN Uganda 

MTN Uganda claims to have 75 percent mobile network 

coverage in rural areas and 50 percent data network coverage 

in rural areas. Its fixed-line network coverage is provided 

mainly as a payphone service in rural areas. 

219

MTN Uganda, as the SNO under duopoly regime that expired 

in 2005, was required as part of its license obligations to 

have presence at the county level. requirement had largely 

been achieved under the duopoly period. Additionally, MTN 

Uganda had also established its subsidiary, MTN Publicom, 

with major focus of rolling out payphone service countrywide. 

In a bid to reposition itself in the payphone and rural market 

segments, MTN introduced the Village Phone Project in 2003. 

Key features of the project include the following: 

j Pre-paid model 

j Multiple microfinance institutions as partners 

j 6 month loan products 

j Charge for outgoing calls only (Calling Party Pays) 

j Simplified tariff structure 

j Public payphone competition 

Celtel Uganda 

Celtel Uganda reports 50 percent network coverage provided 

in rural areas for both voice and data services. 

Figure A.22b: Map of Celtel Coverage in Uganda 

Source: Celtel Uganda, http://www.ug.celtel.com/en/getconnected/coverage/index.html 

Under its license, Celtel has no mandatory universal access 

obligations to meet. However, Celtel, using its own initiative 

and in partnership with SMEs, has facilitated the rollout of 

payphones and public call offices in rural areas. 


The fixed-line infrastructure is hybrid, and the wireless 

infrastructure is GSM, CDMA, WiMAX, Wi-FI, VSAT. 

Again, the present licensing framework is technology neutral 

and allows for the deployment of any appropriate technology. 

220 




The potential for powerline communications in rural areas is 

limited because of the limited reach of the electricity grid. 

Less than 20 percent of the national population have access 

to the main grid. In the case of the rural population, about 

2 percent have access to the main grid. Biomass energy 

accounts for about 90 percent of the country’s energy 

requirements. There are also a handful of fuel generators, 

car batteries and solar PV systems providing energy for grain 

milling and phone charging. These account for about 

1 percent of the energy. 

The Rural Electrification Strategy and Plan (2001) was 

enacted by the Government as a measure to develop access 

to clean energy in the rural areas. The REF provides grants 

for rural electrification programmes and activities, lowering 

the financial threshold for the private sector and local 

communities for investments in rural electrification projects 

through “smart subsidies.” 

Current projects of the Strategy include expansion of the 

main grid; development of isolated and mini-grid systems for 

relatively concentrated areas with potential for productive 

use; renewable energy power generation for sale to the main 

grid and for mini-grids; and installation of solar photovoltaic 

systems for isolated settlements that cannot be economically 

connected to the grid. 

The achievement of universal access objectives will largely 

depend on the progress of rural electrification. Initiatives 

targeting rural electrification are already being undertaken. 

For example, under the Energy for Rural Transformation 

project being funded by the World Bank, an ICT component 

was incorporated into the programme to harness the supply 

and demand issues of energy and ICTs respectively. 


Table A.22.d 


Combined primary, secondary 63 











(1995-2005)



In terms of gender, the female to male ratio is 100:96, but 

available data indicates that female awareness and usage of 

ICTs is 3 times less than that of their male counterparts 

(Uganda’s proposed New Policy 2006). In regard to the 

human resources skills set, the Uganda National ICT Policy 

(2003), notes that even though no comprehensive survey has 

been conducted, there are various levels of skills required 

for the sector. 

This is mainly being met by existing training institutions at 

vocational, tertiary and university levels. As the way forward 

for the human resources capacity for the country, the policy 

calls for an overall assessment of the national requirement 

for ICT skills, and establishing how much of this is available, 

and then determination of the best strategy to bridge the 

identified gaps. The Government is sponsoring approximately 

200 students annually to undertake undergraduate IC- related 

courses in government-aided universities and higher education 

institutions. 

In a bid to mainstream the ICT curriculum in secondary 

education, the Government is also recruiting about 

100 teachers starting in 2008. 

Uganda’s ICT sector has been witnessing progressive growth 

since 1997, with a corresponding increase in employment 

opportunities for the graduates. However, the sector is still 

relatively small and cannot absorb graduates being churned 

out annually. It is not uncommon to see graduates settle for 

data entry and clerical employment that is not commensurate 

with their skills 

Training Institutes 

j Uganda Institute of Communications Technology offers 

diploma in telecommunications engineering 

diploma in computer engineering 

diploma in information technology for science 

diploma in information technology for business 

These diploma courses are for a duration of 2 years, and 

tuition fees are between UGX 900,000-1,200,000 per 

academic year. 

j Faculty of Computing and Information Technology, Makerere 

University offers 

Bachelor of Science in Computer Science 

Bachelor of Information Technology 

Diploma in Computer Science and Information 

Technology 

Annual tuition and functional fees are approximately 

UGX 2,840,000, and the course duration is 3 years. 

About 1,200 students are enrolled annually. 

j Faculty of Technology, Makerere University offers 

Bachelor of Science in telecommunications engineering 

Bachelor of Science in electrical engineering 

Annual tuition is approximately UGX 2,840,000, and the 

course duration is 4 years. About 150 students are enrolled 

annually. The Government sponsors about 50 percent of the 

enrolled students. 

j Institute of Computer Science, Mbarara University of 

Science and Technology offers 

Bachelor of Science in Computer Science 

Bachelor of Science in Information Technology 





j Kyambogo University offers 

Bachelor of Science in Telecommunications 

Engineering. 






The Uganda Commodity Exchange (UCE) ICT trade centres 

The Uganda Commodity Exchange (UCE), a corporate entity 

duly registered in accordance with the laws of Uganda under 

the Companies Act, was incorporated in 1998 through the 

initiative of private sector players with four founding 

shareholders; namely, the following: 

j Uganda Cooperative Alliance 

j Uganda Coffee Trade Federation 

j Uganda Farmers Association 

(now -Uganda Farmers Federation) 

j Commercial Farmers Association 

www.uce.co.ug is an exciting and innovative online resource 

for commodity traders. The first of it's kind in Uganda, it is 

a physical exchange facilitating the trading of graded produce, 

e.g., coffee, soya, sesame, maize, rice and beans. 

UCE has established three rural ICT trade centres as a 

measure of promoting information sharing and exchange in 

commodity trading. 

221

Telecentres in Post Offices 

As part of the Energy for Rural Transformation Project and 

under the ICT Component, World Bank and UCC’s RCDF have 

facilitated Uganda Post Ltd to integrate telecentre operations 

in its 20 postal offices in 20 rural districts. The Project is 

under implementation and is expected to come on board in 

2008. 

MTN villagePhone 

MTN villagePhone provides special airtime rates to the Village 

Phone Operators to enable them to provide affordable 

telecommunications services to people in their village. 

Upcountry, people are now able to make a call without 

travelling many kilometres to the nearest town. They can 

simply go to their community Village Phone Operator who 

serves and supports the community by making affordable 

communications services available. The project is currently 

covering 26 districts and is in partnership with 5 microfinance 

institutions. 

Figure A.22c: MTN village Phone Uganda - Units installed 

against plan 

Number of 

Villaphones 

Units 

Source: From Mr.Richard Mwami, Senior Manager, Public Access, MTN, 

Presentation, Connecting Rural Communities Africa Forum 2007 

Ministry of Education and Sports Initiatives 

Under the Ministry of Education and Sports the following 

initiatives are in place: 

j The NEPAD e-Schools Initiative supported by the 

ICT NEPAD Commission (Kyambogo College school, 

Bukuya SS, St. Andrews Kaggwa SS, Bugulumbya SS, 

Masaka SS and Kabale SS). 

j Cyber School Technology Solutions aimed at improving 

science teaching in secondary schools 

(1st phase: 100 schools). 

j Connect-Ed in Teacher Training in 8 Primary Teachers 

Colleges supported by USAID. 

j Digital library at Makerere Business School and Makerere 

University with funding from Carnage Cooperation (Project 

in the offing); and establishment of a computing and 

information science centre at Makerere University 

222 

10,000 

9,000 

8,000 

7,000 

9,000 

6,000 

5,000 

6,270 

4,000 

3,000 

2,000 

1,000 

- 

142 

120 

1,337 

1,040 

3,079 

1,940 

4,279 

6,100 

2003 2004 2005 2006 2007 

Year 

Plan Actual 

Ministry of Health Initiatives 



In the health sector, the Ministry of Health has implemented 

the following initiatives: 

j computerized database for human information management 

systems (HMIS) data including human resources for health 

(HRH), Integrating GIS with HMIS 

j automatic e-library system 

j Website 

j Internet connectivity at the Ministry of Health Headquarters 

j Electronic mailing systems 

j Telemedicine and sensitisation workshops 

Additionally, the Ministry of Health with support from DANIDA 

and the Institute of Public Health, Makerere University 

Medical School has established data points at 21 district 

directorate of health services offices that are fully connected 

to the Internet. 

Kalangala Information Centre and Internet Café 

The Kalangala Information Centre and Internet Café is 

providing ICT services to Kalangala Town Council, Mugoye 

Sub County and Bujumba Sub County. The total cost of the 

project is UGX 50 million and targets a number of wider 

development objectives. The project targets the education 

sector by targeting schools and providing software packages 

that enhance education such as Word, PowerPoint, and 

Internet explorers, which can be used for research. 

Organisations like BIDCO palm oil nut-growers use the Internet 

to find out market prices etc. More programmes have been 

planned for ICT- enhanced agriculture but will only be realised 

with additional support from partners or funders. 

The project has also encouraged women and girls to come 

for training and sensitisation programmes. The project is 

spearheaded by women and thus aims to inspire young girls 

and women in this male-dominated sector. 

Computer training programmes mainly target capacity building, 

i.e., students are guided on what programmes suit them best 

depending on what they are doing or what they want to do. 

Students on vacation are also given the opportunity to do 

part time work at the centre and build their skills. 

The management structure is still very lean and only two 

staff cater to the needs of the people at the training centre. 

However, the project has the support of two directors who 

provide guidance along with the board and well-wishers. 

Monthly reports, constant banking of funds received, use of 

receipt books, etc. ensure accountability. The local needs 

are also catered for depending on the capacity of the centre; 

for example, printing, typing and training are some of the 

local needs/concerns. 

The prices at the centre are relatively favourable for the 

community as well as for minimal sustainability of the services 

provided. 

The rural population is very enthusiastic about training in 

ICT skills and other ICT services that ease their day-to-day 

operations; the project is also cost-effective in that prices 

for the Internet, etc., are at a minimal cost.



The operating costs are indeed kept minimal, e.g., by employing 

one full-time person and one part-time person, and by 

connecting to the district generator for lower costs on energy 

and using an inverter to save energy. 

Local ownership still needs to be enhanced, because it needs 

supervision. The equipment is also sensitive, and thus 

responsibility should lie with a few individuals. However, 

more sensitisation and collective work can be done if funds 

are available. 

The project has been evaluated internally and externally by 

UCC, and best practices have been shared on the website, 

although it is now off, due to limited funds. 

The project started in 2004 and has slowly but steadily 

improved. It has maintained a minimal number of clients 

and has managed to sustain its activities in the simplest 

form. The project now boasts 11 computers, all in good 

condition, and other equipment such as a generator, inverter, 

etc. A lot could be done with more funds, but the focus at 

the moment has been to ensure that the project lives on. 

All in all, the project has stood the test of time and can 

greatly improve with support and further intervention from 

interested parties. 

Roam and Celtel Public Payphone Project 

Roam Communications and Celtel Uganda have partnered to 

implement a public payphone project where local entrepreneurs 

maintain and run the village public payphone. 

The cost of maintaining already implemented projects is 

US$300,000, and the cost of establishing new projects is 

US$900,000. 

Local payphone agents are recruited with preference given 

to local people already operating small-scale businesses in 

the area. Cash receipts are banked prior to loading of additional 

call credit, and the local agents are trained in basic business 

skills. 

The payphone project has had the following benefits: 

j Means of communication has greatly improved 

j Economic growth has increased through improved means 

of communication, leading to increased efficiency and 

scale of business 

j The quality of shared services rendered in the rural areas 

has improved. Individuals who have been filling the needs 

gap have been using old, first-generation handsets with 

poor reception; the payphones that have been installed 

have a number of features other than voice 

j Payphones are being used as tools for civic education and 

awareness campaigns. Non-Governmental Organisations, 

Community Based Organisations and Government 

departments are running phone-in programs on local 

radios that are aimed at sensitising and educating 

the target communities on a number of issues. Participation 

in these programs has not been possible in some areas 

due to lack of telecommunication services. With the 

provision of telecommunication services to these 

communities, chances of participating in such 

programs have been enhanced. 

In conclusion, the project has led to reduction in call charges 

and improvement of the quality of services to the communities. 

Sources of Funding 

GICT of the World Bank 

Funding to developing countries is in the form of grants for 

ICT development programmes. For example, Uganda was 

granted up to US$11 million to enhance its telephony network 

expansion, Internet access and telecentres in underserved 

areas in the country. 

223


224 

a23 

ZambiaProfile 


Ministry of Communications and Transport 

Address: Fairley Road, 

P.O. Box 50065, Lusaka 


Communications Authority of Zambia 

Address: Plot 3141, 

Corner Lumumba and Buyantanshi Road; 

PO Box 36871; Lusaka 10101 




Contact Person: H.E. Mr Peter Tembo 

Telephone: +260 211 253 530 

E-mail: mct@mct.gov.zm 

Contact Person: Mr. Lotty Kakubo 

Director, International & Public 

Telephone: +260 1241 236 

+260 1246 696 

E-mail: lkakubo@caz.zm 

Website: www.caz.zm 






Zambia’s fixed-line, state-owned, incumbent operator Zamtel 

currently has a monopoly on the fixed-line market. 

Zamtel is licensed to offer local, national and international 

voice services. 


The 1994 Telecommunications Act paved way for liberalisation 

of the mobile telecommunications market. The first operator 

was licensed in 1995, and there are now three fully licensed 

mobile operators providing voice, Internet and data services. 

Zambia’s mobile sector has experienced significant growth 

since then, even though penetration is still relatively low. 

The table below outlines the 3 licensed operators and their 

market share. 

Table A.23a 

Mobile Operator Ownership Market Share 

MTN Zambia 97% MTN International 15.9% 

of South Africa 

Celtel Zambia 100% Mobile 74.1% 


The Internet sub sector was fully liberalised in 1994, and 

the first ISP came into operation in 1996. There are currently 

6 operational ISPs. There are an estimated 12,000 Internet 

subscribers and an additional 30,000 Internet users, mainly 

using public cafes for access. All of them are privately owned, 

apart from Zamtelonline, which is a subsidiary of the fixedline 

incumbent. 

The table below lists the 6 operational ISPs and their market 

shares. 

Table A.23b 


Company of Kuwait 

Zamtel Cell Z 100% Government of 10% 

Zambia (subsidiary 

of Zamtel) 

ISP Ownership Market Share 

Zamnet 100% University 24% 


Systems Ltd 

of Zambia 

Zamtel Online 100% Government 

of Zambia 

(subsidiary of Zamtel) 

49% 

Coppernet Cavemont Merchant Bank 9% 

Solutions and Zambia Consolidated 

Copper Mines 

Microlink 7% 

Uunet 6% 

Africonnect 5% 


The current licensing framework is such that all licensed 

operators have their own infrastructure. However, there is a 

license category called Carrier of Carrier. Holders of this 

license are only allowed to lease capacity to licensed operators. 

They essentially operate as wholesale licensees. 


j Zambia National ICT Policy 2006 

Promotes human resources development in ICTs by developing 

ICT awareness programmes and promoting ICT as an alternative 

career path for youths and women. Also aims to develop 

community based ICT training programmes in conjunction 

with local authorities, private sector and civil society. 

Aims to develop universal access/service goals and strategies 

for rural telecommunications, radio and TV transmission 

infrastructure and service rollout. 

Provides for the transformation of all postal offices and public 

and community libraries as public access points for 

e-commerce, e-government and Internet-based services, with 

the support of the private sector and civil society. 

Aims to create a regulatory and licensing framework that 

provides special incentives, especially for youths and women 

in the establishment of ICT services in rural and underserved 

areas across the country. 

Promotes cost-effective, last-mile technologies for providing 

access to commercial and public information services by 

communities, especially in rural and underserved areas. 

Facilitates the establishment of a Rural ICT Development 

Fund to support the development of ICT infrastructure and 

service rollout, especially in rural and underserved areas. 

Promotes the development of ICT entrepreneurs at SME level 

as part of the rural agro- business industry development and 

strengthens the development and application of ICTs in 

agriculture. 

Aims to increase the competitiveness of farmers in production, 

processing and marketing of agricultural products and services 

through the utilisation of ICTs. 

Promotes the development of a licensing framework that 

takes into account the use of cost-effective technologies and 

systems that can assist in increasing access to ICTs especially 


Encourages the private sector to invest in ICT projects for 

rural and underserved urban areas, as well as traditionally 

disadvantaged areas. 

225


j Zambia Telecommunications Act 1994 

Established the regulatory authority, the Communications 

Authority of Zambia (CAZ). 

Prohibits telecommunications service providers from exercising 

undue discrimination against persons living in rural areas in 

provision of services. 

j Zambia Draft ICT Bill 2007 

Will provide the basis for regulation and licensing of Information 

and Communication Technology activities, promote the 

implementation of the Information and Communication 

Technology Policy, recognise convergence of technologies 

and facilitate widespread access to ICTs. 

Requires the CAZ to take all reasonable steps to extend 

provision of telecommunication services throughout all urban 

and rural areas. Universal services include emergency services, 

public call box services, directory information services and 

maritime services. 

Establishes the Universal Access Fund (UAF). The CAZ is 

mandated to determine a system to promote the widespread 

availability and use of communications networks and services 

by encouraging the installation infrastructure in underserved 

areas. The determination of underserved areas shall be based 

on the level of competition, the availability of services, and 

the commercial viability of infrastructure installation or 

provision of services. The CAZ shall charge a levy on the 

operators’ annual revenues to support the fund. 


The Zambia Telecommunications Act established the regulatory 

authority, the CAZ, with the following functions: 

j To take all reasonable steps to extend the provision, 

throughout all urban and rural areas of Zambia, of such 

telecommunication services that satisfy all reasonable 

demands for them including, in particular, emergency 

services, public call box services, directory information 

services and maritime services 

j To promote the interests of consumers, purchasers and 

other users of Telecommunication services (including, in 

particular, those who are disabled or of pensionable age) 

in respect of the prices charged for, and the quality and 

variety of, such services and apparatus supplied for the 

purposes of such services 

j To promote and maintain competition among persons 

engaged in commercial activities for or in connection with 

the provision of telecommunication services, and promote 

efficiency and economy on the part of persons so engaged 

j To promote research into telecommunications 

and the development and use of new techniques in 


j To encourage major investors in and users of 

telecommunication services carrying on business outside 

Zambia to invest in and use telecommunication services, 

and to carry on business, in Zambia 

226 



j To promote the provision of international transit services 

(that is, services conveying sounds, visual images or 

signals that have been conveyed from, and are to be 

conveyed to, places outside Zambia) by persons providing 

telecommunication services in Zambia; 

j To enable persons providing telecommunication services 

in Zambia to compete effectively in the provision of such 

services outside Zambia; and 

j To enable persons producing telecommunication apparatus 

in Zambia to compete effectively in the supply of such 

apparatus both inside and outside Zambia. 

Telecommunications (Interconnection) Regulations (2004) 

Interconnection terms are determined commercially between 

Zamtel and other service providers. The regulator maintains 

oversight in case there are disagreements and disputes. There 

are no specific interconnect provisions for rural connectivity. 


Celtel Zambia 

Celtel Zambia Ltd has mobile national coverage of 72 districts 

with some service provision to rural areas. However, there 

are no mandatory license obligations for Celtel to service 

rural areas. Service is extended on the basis of commercial 

considerations. Celtel Zambia provides Internet and data 

services to major cities and towns across the country with no 

service provision to rural areas, and no license obligations 

to encourage rural connectivity. 

Figure A.23: Map of Celtel Coverage Map in Zambia 

Celtel GSM coverage areas 

Celtel new coverage areas 

Main towns 

Water areas 

Source: Celtel Zambia, http://www.zm.celtel.com/en/get-connected 

/coverage/index.html



Celtel and UNDP jointly initiated a universal access initiative 

in 2007. Under this initiative, Celtel is to introduce kiosks 

to rural areas offering pay phone services to the poor, and 

other services made available through GPRS technology. 

These kiosks will operate as independent business outlets. 

UNDP’s Growing Sustainable Business (GSB) designs a small 

business loan scheme to provide the kiosk owner with the 

initial start-up capital that they will need in order to lease 

the kiosk and equipment. This scheme is meant to promote 

and facilitate small businesses in rural areas, and also to 

allow Celtel to roll-out its kiosks quicker, once the initial pilot 

proves a success. 

Furthermore, GSB is helping Celtel to identify additional 

value-added services that the kiosk owner can offer to its 

clients. 

MTN Zambia 

MTN Zambia provides services on a national scale, but mainly 

in major cities and towns with limited coverage to rural areas. 

The operator is, however, subject to licensed conditions 

mandating it to provide services in rural areas. 


The fixed-line hybrid infrastructure has copper wire to connect 

the last mile, as well as a WLL system in selected parts of 

the country. The operators use both Microwave and VSAT 

(GSM Wireless). 


In the rural areas, about 98 percent of the population rely 

on biomass as the main source of energy. Firewood and 

charcoal constitute 80 percent of the total national energy 

supply and electricity just 11 percent. 

The Rural Electrification Authority aims to meet the following 

targets: 

j Increased access to electricity by both rural and urban 

households. The aim is to increase access by rural 

households from the current 2 percent to 15 percent by 

the year 2010. In the urban areas, the target is to increase 

access from 48 percent in 1998 to 70 percent in 2010 

j Enhance capacity of current energy infrastructure under 

the Power and Petroleum Rehabilitation Projects 

j Create new energy infrastructure, which will include the 

Zambia-Tanzania-Kenya Interconnector, Zambia-DRC 

Interconnector, Electrification of Mkushi Farm Block, 

Kafue Gorge Lower and Itezhi-tezhi Hydro Electric Power 

Stations and Mini-hydro stations in North-Western Province 

UNDP GSB and Suntec are implementing a programme to 

deliver a solar energy consumer package of solar panel, 

regulator, battery and inverter appropriate for rural households, 

through a partnership with microfinance institutions. 


Table A.23c 




Adult literacy rate (1995-2005) 68 









(1995-2005) 

The National ICT policy (2006) notes that the country is 

faced with a shortfall in critical ICT skills. This is said be 

more pronounced at managerial, professional and technicians’ 

levels. This is therefore having a negative impact to the 

development, deployment and application of ICTs in both 

the private and public sectors. 

The Government has highlighted the challenges to be 

addressed, which include the following: 

j Low ICT literacy in the country, which is a major obstacle 

to the development of Zambia’s information society 

j High cost of technology acquisition, thus making ICT 

technology and skill development programmes inaccessible 

to most Zambians 

j The “Brain Drain” problem, which is resulting in 

considerable loss of the few skilled personnel from Zambia 

to other countries in search of better job opportunities 

j Limited local ICT industry thus offering inadequate services 

and few job opportunities 

j Lack of standardisation and certification programmes in 

the IT field resulting in external courses with little 

localisation to the Zambian education curriculum 

j Inadequate institutional capacity among formal training 

providers to increase intake and output numbers of ICT 

graduates 

In addition to the above challenges, the Zambian Ministry of 

Education has developed a draft ICT policy for education. 

The vision is for ICTs to contribute towards reaching innovative 

and lifelong education and training in Zambia by 2030. 

The guiding principles of policy include the following: 

j It must fit into national policies on education and ICTs 

j A commitment to establishing strategic partnership with 

stakeholders 

227

j A combined effort with government, the private sector, 

and NGOs 

j The policy reflects general standards that the Ministry of 

Education wishes to uphold 

j An integrated approach must be adopted that integrates 

all aspects of the value chain in the education process 

The policy also provides an overview of goals, objectives, and 

government commitment in key programme areas of 

ICT infrastructure to education institutions, content 

development, curriculum integration, teacher training, distance 

education, administration and support services, and finance. 

To this end, an implementation framework setting out in 

detail the objectives, activities, time frames, and budgets for 

areas of intervention has been developed. Plans are, therefore, 

underway to establish computer facilities together with Internet 

access to the ministry headquarters, provincial offices and 

districts; the 14 colleges of education; the 9 provincial, 

78 district, and 400 zonal resource centres; and the 

350 high schools and 460 basic schools. 

For more information please see http://www.education.gov.zm/. 

According to the Fifth National Development Plan (2006-2010), 

the Government administers bursaries, grants, and scholarships 

for study at universities both in-country and abroad. About 70 

percent of the students are entitled to bursaries, which cover 

75 percent of tuition fees. 

The following training institutes offer courses and degrees 

in ICT-related fields: 

j University of Zambia 

228 

Bsc Electrical Engineering 

Bsc Computer Science 

j Copperbelt University 

Bsc Electrical and Electronic Engineering 

Bsc Computer Science 

Diploma in Information Technology 

Diploma in Electrical, Electronic and Telecoms 

Engineering 

j ZAMTEL Staff Training College 

In-house and refresher courses for Zamtel staff 


Vision Community Centre and LinkNet Multi-Purpose 

Co-operative Society Ltd 

Macha is a rural village in Zambia, and notable institutions 

within its surroundings are a sizeable mission hospital, several 

well known educational institutes, and the Malaria Institute. 



In 2004, there was little communications infrastructure in 

this settlement. Macha had only a handful of computers and 

two communication links. Also, as typical for rural settings, 

Macha had poor access roads. Until 2007, no commercial 

communications company was interested to invest in Macha 

because it was considered to be a non-commercially viable 

area. LinkNet Multi-Purpose Co-operative Society Ltd 

established the following ICT resources: 

j Vision Community Radio Macha 

A community radio station disseminates Information, as 

newspapers and other media can hardly be accessed in Macha 

or its surrounding chiefdoms. 

j Internet Cafe and LinkNet 

Teachers now use the Internet for distance learning and send 

school assignments to various universities around the globe. 

Internet has helped teachers to search for information for 

their own studies and to enjoy online social interactions. 

The doctors and nurses in Macha are now able to search for 

information and enhance their knowledge and skills through 

the Internet. In 2005, new innovations due to the use of 

Internet were introduced, which, for instance, led to the 

introduction of sunflower growing. On the cultural side, Macha 

Zambia chiefs have been interested in exploring the possibility 

of preserving their rich culture in regard to design, fashion, 

music, dance, and history. 

As a result, information is being kept safe for the future 

generations to use. Preservation of African culture by publishing 

and keeping the information on Internet has enabled the 

Macha community to preserve and expose their culture to 

other parts of the world. 

Crafts Shop 

A variety of high quality and traditional locally made items 

are now displayed for sale in Macha. Today, 93 PCs are 

connected daily to Internet; 200 local and rural people have 

been trained in basic ICT literacy; 7 locals from Macha have 

been trained as ICT technicians; and about 65 new jobs have 

been created, ranging from housing construction, home care 

for visitors, a team running a community centre, onsite 

ICT management services to 3rd party organisations, and 

data entry services. 

Provision of ICT Facilities in Zambian Secondary Schools 

The Computers for Zambian Schools is a registered trust 

established by the local educational and ICT specialists, 

representatives from the British Council, Ministry of Education, 

and the Beit Trust. It operates as a partnership between the 

Computers for African Schools, which is a UK-based registered 

charity, the British Council, HSBC, the British High 

Commission, the Beit Trust, SchoolNet Zambia, MTN, ZamNet, 

and the Zambian Ministry of Education. 

Duty-free importation of second-hand PCs that are later 

refurbished in Lusaka have been redistributed to schools for 

use in support of computer studies. The project also supports 

training of ICT teachers, distribution of ICTs to schools, 

provision of technical support to schools, and recycling 

computers. At least 4,500 computers have been distributed 

to 300 schools across Zambia.

For further information or for any 

collaborative arrangements with the CTO, 

contact us at: 26-28 Hammersmith Grove, 

London W6 7BA, UK 

Tel: +44 (0) 870 777 7697 

Fax: +44 (0) 870 034 5626 

E-mail: info@cto.int 

Website: www.cto.int

full report - Commonwealth Telecommunications Organisation

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