Public Private Partnerships and the
Prospects for Sustainable ICT Projects in
the Developing World
Elizabeth Fife & Laura Hosman
Center for Telecom Management
University of Southern California
Presented June 2, 2007
At the Los Angeles Global Mobility Roundtable
Marina Del Rey, California
Imagine…
• Using a VoIP mobile phone from the most
remote, rural village you can dream of to
call anywhere on the globe—Timbuktu or
your next door neighbor—for free or for
pennies…
– You don’t even need electricity—solar energy
will do!
• Using a mobile phone to check prices on
crops or goods that you trade and thus
make a higher return…
This is a reality—for some…
• Our case studies give evidence that these
scenarios are current realities on the
ground in rural villages throughout
Vietnam
• So, how can this also become a reality in
the most places possible, the world over?
– Public Private Partnerships
– Third Party intermediaries
Bridging the Digital Divide
• Explosion of Public Private Partnerships in
ICT sector in developing world
• Very little corresponding academic
analysis—particularly of a critical nature
• Yet, there are divergent motivations: profit
motive vs. meeting constituent needs…
Research question:
• How can these divergent motivations be
aligned to ensure a win-win scenario…
• …not just for the public private partners,
but also for the technology recipients?
PPPs: An overview
• Ideally, these partnerships take advantage
of synergistic interests, while building on
the strengths of the individual partners.
What is the reality?
• “Bread vs. Broadband Debate”
• Many large, Western corporations (Intel,
AMD, Microsoft) already partnering in the
developing world
– building future markets
– “doing good while doing well”
• But are things really different for Telecom?
Data Gathering/Interview Stage
• Difficult to get in touch with corporate
representatives, not so for NGOs, Govt Orgs
• Our Focus Shifted:
– From corporate focus to facilitator focus
– From “Can divergent motivations peacefully
coexist” to “HOW can divergent motivations
peacefully coexist”
Third Party Facilitator
• We aren’t proposing this as a catch-all
solution for the diverse motivations facing
PPPs
• We are adding a new actor to the
equation, and making the case that it can
often help align the diverse motivations
In the PPP Contract Formation
• The presence of an intermediary is invaluable.
– They provide
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•
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•
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Contacts
Experience
Financial assistance
Technological expertise
An end-date for their activities
Motives which are not driven by profits
• Invaluable Because: a well-formed contract
serves the PPP for the duration of the project
The case of: USAID
• USAid has been active, “on the ground”
doing development work for over 50 years.
• They have contacts all over the world.
• They have development goals that do not
have profit at the origin.
• They make bilateral agreements—all
projects must have developing state’s
governmental approval to move ahead.
The case of: USAID
• They play the role of “matchmaker”
• They set up feasible projects, but have an
end date
• They also promote US business interests
Case Studies in Vietnam
• Cases very similar: only difference is the
technology employed
• 1st village: Lao Cai
• Chosen because the people could
economically benefit from ability to
communicate verbally w/Chinese
neighbors just across border
Case Studies in Vietnam
• 3 partners:
– Intel
– Vietnamese Ministry of Post & Telecom
– USAID
• Diverse Motivations
– Bring WiMAX to Vietnam
– Provide underserved rural areas w/telecom access
– Bring the two partners together w/good plan
Case Studies in Vietnam
• Both projects were successful
– First project finished in > 1 year
– Second project finished in 6-8 months.
• 1st project used ground-based WiMAX
• 2nd project used satellite-based (backhaul)
to provide the Broadband Internet
• Both used VoIP for voice communications
Looking to the Future
• High hopes for the Satellite-Based
technology
• Intel wants to partner with USAID to
implement this project in 30 countries
• They’re proposing this at USAID HQ next
week
Looking to the Future
• Greater need to study PPPs around the
world
• Intermediary parties have been neglected
in the literature—their role should be
examined
• Common PPP success factors detailed in
paper
• There is cause for optimism in ICT PPPs