Universal Access

When reaching the poor with ICT capabilities, there is a difference between providing Universal Access (UA) and delivering a Universal Service (US).

Introducing UA means giving people reasonable means of access to a publicly available telephone, SMS and emergency service in their communities – but not necessarily in their homes – through shared use of terminals, including public payphones, community centres and cyber cafés. Universal access is a strategic policy for low-income and/or high cost areas where private demand and perceived need do not always attract service providers to invest.

Nevertheless, today in the vast majority of countries a high percentage (often more than 95%) of the total population can be reached with GSM – a feat not achieved with fixed communications.

Universal Service

Universal Service is concerned with providing basic telephony to every household, thus overcoming the social and economic disadvantages associated with not having private access.

With mobile service penetration already at between 50%-75% of households in many developing countries’ urban areas, the achievement of universal service is a realistic short to medium term target. Many operators already offer low/affordable tariff packages so the main hurdle to overcome is often the price of the handset.

GSM, the leading mobile technology with its natural evolution path to 3G and high speed data capabilities, has grown to become the most popular end-user technology in the world. With over two billion subscribers and almost one billion phones produced this year, the economies of scale have brought phone prices down to US$30. At the same time new mobile network features have reduced the total cost of ownership for the service providers. This evolution is making mobile services affordable to the low-spending segment of the market.

The rapid transition of GSM networks to EDGE, and also 3G, means mobile operators can also offer the capability of enhanced data, fax, Internet and other ICT services.

It is the collective strength of providing universal access while offering affordable universal service to institutions and individuals that characterises the benefits of wireless systems.

The challenges...

Mobile networks are being deployed in developing markets – in both urban and, increasingly, rural areas. The challenge is to create the right regulatory, taxation and competitive environment and put the right technology solutions in place.

To achieve high penetration in developing markets, person-to-person communication has some big advantages over other forms of ICT. Users do not need to own a PC, or have access to a fixed line infrastructure. Nor do they need to be computer-literate or have particular language skills.

A study in rural Tanzania showed that 97% of village populations knew about mobile telephony, with half of them having already used a mobile phone. By contrast, some 67% did not know what a computer was and only 3% had ever used one (source: UNDP & Swedish Agency for International Development Cooperation).

With access to affordable handsets, shared usage and low tariffs, mobile communications can be made widely available, especially as many people use their phones primarily to receive incoming calls. Low top-up denominations for pre-pay services appeal to consumers with less than a dollar to spend. At the same time, it must also be simple for them to sign up and stay connected.

Once mobile systems are in place, SMS messaging is available and can account for a significant part of operator revenues. It is not unusual for the SMS volume to significantly outnumber voice calls in rural communities.

Internet access can also be provided for isolated schools, hospitals, police stations and farms, for example. For more advanced users, PC cards in laptops can provide data and fax services via the mobile network. Initially, Internet access can be delivered by GSM/EDGE technology but this can later be upgraded to WCDMA/HSPA.

Of course, the only sustainable business model for delivering mobile communications services is one that is profitable for the service providers concerned. These days, there are a range of technical solutions available, as well as the opportunity to share network facilities to serve rural and remote areas in developing markets. In this context, new business models – where one of the operators, or an independent operator, manages and delivers the required network coverage and capacity to the whole market – are emerging.

Lack of power and transmission networks can be a challenge in rural areas but these problems can be overcome by renewable energy sources and possibly satellite links, eventually replaced with lower cost high speed microwave links.

Governments’ tax and regulatory regimes are also critical. The temptation to tax mobile phones and services as luxury items needs to be resisted. A GSM Association survey indicates that if all taxes and duties were removed from mobile handsets, penetration would rise by 20%. The commercial environment is also vital: open competition, with adequate safeguards, is needed to ensure low prices, choice and growth.

An African Example...

The potential is there and mobile operators around the developing world are expanding their networks to handle more subscribers, more cost-effectively. For example, a recent Yankee Group report ranks Africa as the world’s fastest growing region for mobile communication over the next five years.

One African mobile operator that is going for growth is Celtel, which is working with Ericsson on improvements to its network in several countries, including Sudan, Democratic Republic of Congo, Sierra Leone, Gabon and Chad. Most recently, the operator has upgraded its GSM network in Uganda and Tanzania in order to double its coverage in Uganda and improve service quality for Tanzanian customers. Using high-capacity base stations, Celtel has been able to reduce the number of sites needed for initial roll-out and thereby achieve flexible capacity and coverage expansion – resulting in better coverage for lower investment.

The possibilities for mobile communication – a critical first step in applying ICT in developing countries – are significant. This should be reassuring to all concerned, and an important focus for the UN’s G@ID global initiative.

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