Congratulations Dr Ndemo for the appointment as the Honorary Chair in A4AI . I have worked with Sonia in the past and the two of you make a formidable team to fight a formidable battle for humanity . thanks also for driving change from where Sir Tim Bernard-lee started off .The battle lines as expressed in the write up are very clear I only have one problem with your strategy -- that build they will come as a strategy need to be re-jigged. As an example, in all countries in Africa, the signal coverage 2G/3G etc is 30-40% more than penetration , the same case for fibre - there are more homes 'passed' than connected . Cost is not the only factor affecting use, indeed empirical research for the communities that can afford the challenge is use value. Content, applications and dynamics of the demand side are very important . I would like to understand A4AI is incorporating demand side component in its strategy . The consumer should not be a passive bystander in your strategy Cheers MM -----Original Message----- From: kictanet [mailto:kictanet-bounces+muriukimureithi9=gmail.com@lists.kictanet.or.ke] On Behalf Of Bitange Ndemo Sent: 09 October 2013 20:21 To: muriukimureithi9@gmail.com Cc: KICTAnet ICT Policy Discussions Subject: Re: [kictanet] Bringing down the cost of Internet Listers, I am in Nigeria for the launch of the Global Alliance for Affordable Internet (A4AI) which I was appointed the Honorary Chair. This is a diverse and truly global coalition committed to driving down the cost of internet access in less developed countries. We believe that, while technological solutions are advancing rapidly, policy and regulations remain a significant barrier to affordable internet. A4AI seeks to create the conditions for open, competitive and innovative broadband markets through a combination of advocacy, research and knowledge-sharing. When we succeed, we will help to lower access costs to meet the UN Broadband Commission target of broadband access priced at less than 5% of monthly income, thereby helping billions more to come online and unlocking significant socio-economic benefits. Why is A4AI needed? "Estimates suggest that as much as two-thirds of the world's population is not connected to the internet, with penetration rates in less developed countries averaging around 31%. In Africa, this figure drops to 16% (while in in Kenya we are approaching 40% Liberia is at .5%) and in the world's 49 least developed countries, over 90% of people are not online. (Source: ITU 2013) and (Broadband Commission 2013) "Most often, this is for affordability reasons. In developed nations, the average cost of broadband internet access is around 1-2% of monthly household income - less than a daily coffee. In less developed countries, this figure skyrockets to over 30%, and in 17 countries a basic internet connection can cost well over 100% of average monthly income. Overcoming this digital divide is critical so that technology and innovation can be harnessed to accelerate progress in areas such as education, food security, job creation, public health, and gender equity." On A4AI's goals: "Our primary focus is to reach the UN Broadband Commission Broadband Target of entry-level broadband services priced at less than 5% of average monthly income. In doing so, we hope to enable billions of people to come online (with a particular focus on low-income countries) and make universal access a reality. On Strategy: "Innovative technological solutions to affordability challenges are progressing apace. However, the best technologies in the world can't drive change if quasi-monopolies or regressive policies prevent them from being implemented. Changes to policy can deliver impressive results, fast. So, through a combination of advocacy, research and knowledge-sharing, A4AI will drive policy change by seeking to create the conditions for open, competitive and innovative broadband markets. We are unique in pursuing this approach." On Specific Activities: "A4AI is focused on creating conditions for open, competitive and innovative broadband markets via regulatory and policy change. Activities include: original research (including the publication of an annual Affordability Report); publication of regulation and policy best practices, and illustrating these via case studies; and in-country engagements including networking and knowledge-sharing. We will work closely with national governments - three to four countries in year one, expanding to 10 - 12 in years two and three." How are policies keeping prices high? There are numerous examples of how policies keep prices high. Here are just a handful: . Luxury taxes: Tax accounts for more than 20% of the total cost of mobile ownership in at least 13 African countries. (Source: GSMA 2011) Tax reductions on PCs in Colombia have increased PC penetration by 100% in 2 years, and Internet penetration increased 466% from 2005-2008, versus 161% across the region (source: IDC Colombia 2009). . Access to international gateway: In 8 of 20 African countries surveyed by ISOC there is little or no competition on the international gateway. In the same survey, only one of the 20 countries has fully privatized their incumbent telecoms company. In South Africa firms began deploying open-access metro fibre in 2009, and also furnished a link from Johannesburg to the SEACOM (undersea cable) landing station in order to avoid very high charges proposed by Telkom (the state-owned operator). This helped to slash international capacity prices by over 60%. . Universal Service Funds (USF) for Broadband (example of how policy can lower prices): USFs and similar subsidies improve the availability and affordability of broadband for unserved or underserved citizens. Historically focused on basic telephony services in remote areas, USFs are now being adapted to promote the adoption of broadband by subsidizing content, devices, services, and digital training, as well as infrastructure. USFs can serve as a tool to stimulate demand and increase adoption and use. About A4AI's membership base: "A4AI is a diverse coalition of over 30 private sector, public sector, and not-for-profit organizations who have come together to advance the shared aim of affordable access to both mobile and fixed-line Internet in developing countries. We are the first truly global coalition to tackle this issue and our members are from both developed and less developed nations. The World Wide Web Foundation, established by web inventor Sir Tim Berners-Lee, initiated the Alliance." 1. What, exactly, will A4AI do? A4AI will undertake a blend of international advocacy and research, coupled with on-the-ground work. We'll be working in three pioneer countries by the end of 2013, and will bring together in-country stakeholders to identify obstacles, how to tackle them and we'll then help to drive implementation. We will be developing advocacy and policy proposals in conjunction with these stakeholders in each country. We will also continue to press at international level on these issues and our work will be informed by original research - with the first edition of our Annual Affordability report being released in December 2013. We'll also publish case studies, position papers and briefings on lessons learned throughout the year to share knowledge. 2. What is the relationship between Internet.org and A4AI? While A4AI and Internet.org are two separate organisations, there is a common goal (in addition to common partners in Facebook and Ericsson) of making internet access available to more people around the world. A4AI has a clear focus on policy and regulatory issues surrounding access while Internet.org is focused on identifying technical innovations and new business models that can help drive down the cost of data. Wherever possible, we will we collaborate to maximise impact. Regards. Ndemo. _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/muriukimureithi9%40gma il.com The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. 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