Telecenters in Pakistan Telecenters and Community Resource and Information Centers in Pakistan Report on setting up ‘Tele-centers’ in Pakistan under the USF Program. Prepared for the World Bank Volume I October 17, 2006 Final Report Salman Ansari Technology Consultants (Pvt) Ltd. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 1 of 279 Telecenters in Pakistan Preface This document is a brief study of the phenomenon of Telecenters as they have evolved in different parts of the World and in Pakistan. Considerable useful information and case studies are available on the Internet and I have made use of these in formulating thoughts and referring to them as well as quoting from these sources. I have tried to clearly acknowledge these where I have quoted from them but if there are any omissions I would like to apologize for any oversight. Remainder of the materials is from our (SATC) own internal documents and research It was however necessary to create the proper context with reference to Pakistan and for doing so, references of experiences from similar economies were studied, detailed conversations with the people involved in this (especially in India and Sri Lanka) revealed the challenges and pitfalls which need to be considered. A physical survey conducted in the heartlands of the Punjab and the Frontier province, yielded excellent ground zero information, which at times challenged preconceived notions. Most of the time reports like this give outlines and general directions and can not be applied directly. It was decided to take a thoroughly practical approach with reference to the situation valid today. As such, this document also analyses different approaches to creating the actual Telecenters and addressing challenges which will be faced. Another facet is the involvement of prospective large size Telecenter operators and inserting their case studies and directions. While these would not constitute our (and I presume the World Bank’s) only recommendations, these do come out as the best models in their respective categories. Similar examples can then be extrapolated from these individual examples used. For example the PSO case can be mapped by a large cellular, pharmaceutical or FMCG (Fast Moving Consumer Goods) distribution company in opening up a chain of Telecenters where internal usage synergies of these networks could complement social and developmental goals of their Corporate Social Responsibility programs. During our meetings with a whole range of organizations, we found a lot of confusion in creating correct Business Models for these Telecenters; spreadsheets have been provided for modeling by any user who would like to do so. A consequent detailed Demand Analysis survey needs to be conducted to ascertain the areas which should be addressed by the USF and how and with what services, this should be done. A Telecenter Information Clearing House is needed right upfront to help coordinate the activity and provide help and support to making sure that a coherent, interlinked, efficient and consistent development can take place. The report is structured into two volumes. The first one contains various details as mentioned below and the second volume has details of the individual surveys. The excel spreadsheets are given separately. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 2 of 279 Telecenters in Pakistan The Volume 1 is divided into following Sections: 1. Executive Summary and Recommendations 2. Progress in the Telecenter initiatives and impact of Telecommunications growth in Pakistan 3. Telecenters – Issues and suggested Regulatory and other interventions 4. Survey findings 5. International Experiences 6. Pakistan – the Country and Telecommunications 7. Examples of Models 1: Best practices 8. Examples of Models 2: Examples from Pakistan 9. Telecenter elements, current situation in Pakistan 10. Enabling Support structures 11. Business Models – sample calculations 12. Referencing guide Volume 2 has details of the physical survey with pictures and forms filled out at each site I would like to acknowledge the support of several organizations and people who provided considerable insight and inputs to help create this document. Of these, the maximum critical and insightful inputs came from Robert Schware and Kareem Abdel Aziz of the World Bank, Muhammad Umer Somro for the survey and formatting of the document, Javed Iqbal for the developmental aspects in Rural areas, Fouad Bajwa of FOSSP for his detailed inputs into using Open Source Software in Telecenters. To all these people, I am truly grateful. Salman Ansari Islamabad, October 17, 2006 salman@super.net.pk +92 300 8545619 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 3 of 279 Telecenters in Pakistan Contents Volume 1 Sections 1. Executive Summary and Recommendations……………………………… 5 2. Progress in the Telecenter initiatives and impact of Telecommunications growth in Pakistan……………………………………………………….. 12 3. Telecenters – Issues and suggested Regulatory and other interventions…… 22 4. Survey findings…………………………………………………………… 32 5. International Experiences…………………………………………………. 54 6. Pakistan – the Country and its Telecommunications………………………. 78 7. Examples of Models 1: Best practices……………………………………… 91 8. Examples of Models 2: Examples from Pakistan………………………….. 120 9. Telecenter elements, current situation in Pakistan………………………….. 180 10. Enabling Support structures……………………………………………….. 187 11. Business Models – Sample Calculations...………….……………………… 260 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 4 of 279 Telecenters in Pakistan Telecenters and Community Resource and Information Centers in Pakistan Report on various models for setting up and sustaining different models in Pakistan under the USF (Universal Service Fund) Volume 1 Part 1 Executive Summary & Recommendations Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 5 of 279 Telecenters in Pakistan Executive Summary The World Bank commissioned this report as a part of the USF Policy implementation support for bringing the fruits of the telecom revolution in the rural areas. This is foreseen to bring access to services, resources, information and access to opportunities using voice and internet by the rural populace. However, unlike other general purpose technology such as agriculture, energy, transport, etc., support for accepting ICT as a technology is needed from all stakeholders especially government and people. Mere provision of hardware, software components does not help the rural population to draw benefits from this technology, but a systematic and convergent approach of policy makers, business drivers would be necessary for its use. As such the four key players who will make the Telecenter program a success by their interactions and ownership at all levels are: • Community being served • Government support in terms of Regulatory and Policy interventions and automation and cleaning up the back end processes for e-Services • Telecenter operators • Telecenter support institutions including the Telecommunications, content providers, financing institutions It is not necessary to adopt a very high-end ICT infrastructure to support but needs an optimized approach to select, develop and implement the technology, its components and allow the rural citizens to use the technology as needed. Potential of ICT infrastructure use lies in rightly identifying the need of rural citizens and their social fabric1. To derive complete benefits from these Centers, a variety of supplementary services need to be offered from here. These could be physical services (easy to implement like photocopies, photos, printing) while the really useful ones (e-government services, farmer pricing and crop information, etc) are relatively more complicated since they need third party readiness and approvals and agreements. Rural Support Network (RSPN) can be considered as a potential partner for outreach in rural Pakistan. There are 13 RSPs in Pakistan, with the current coverage of about 12% of the rural population in Pakistan and this may go up to 50% in the next few years since the Government is considering a large project to scale up the RSP concept in Pakistan with funding support from the World Bank, Multilateral Investment Agencies and other donors. The clear message which has emerged is that most entities (PTA, etc) have a simple Telecenter model (phone and internet) as an access service. The true impact comes about 1 Hiremath & Misra, MICs for rurals, www.i4donline.net, Aug 2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 6 of 279 Telecenters in Pakistan only when this becomes a resource and information center. Hence the suggested change in titles as mentioned later in this document. For this purpose extensive study, interviews and physical surveys were carried out. Existing and planned initiatives by different entities were examined; suggestions and proposals were put up. This document is the result of these activities outlines not only the process of acquisition of data but comes out with some suggestions in the context of the environment in Pakistan. The contents of this report cover: • Telecenters and Telekiosks in the Rural areas in Pakistan • The key players involved in this activity • The corporate entities with the highest probability of success for setting up a large number of Telecenters • The key resources available for making these operational • Details of addressing the key issues of setting up Telecenters • Templates for creating Business Plans for setting up Telecenters in the context of Pakistan An attempt has been made to give a: • Detailed research and analysis of International experience • Suggestions for Policy and regulatory interventions • Key Issues and practical suggestions for solutions • Some Models for fast track roll out with key partners Practical plans The current deployment and plans of Telecenters which could be used for the initialization since they are quite far down the thought process and area good fit for the parameters laid out for sustainability and scalability. Some of these are: • Pakistan State Oils (PSO) – conversion from non-functioning kiosks to comprehensive Telecenters in all 3500 locations • Post Office – planning for a comprehensive rollout of Post Office related services including e-Government, Banking, insurance, Agriculture extension – ultimately reaching 12,000 locations across Pakistan • Agha Khan Rural Support Program – over 200 targeted in the short term Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 7 of 279 Telecenters in Pakistan • KADO – Karakorum Development Authority – over 100 targeted • AIOU - Allama Iqbal Open University. Over 350 sites across Pakistan and planning a deployment of over 2000 in the future based on their own VSAT connectivity. • Telecard, Mobilink, Telenor – over 250 sites • Entrepreneurs – individuals and franchisees several hundred A variety of support infrastructures are emerging and should be utilized for this purpose. These include: • Financial – NBP ‘rozgar’ scheme • Software – Microsoft, FOSSP (Free and Open Source Software Pakistan) • Hardware – Intel, local manufacturers • Urdu – NU (National University) Lahore • Service providers – Telecom • Service providers – content and services • Capacity building/training – FOSS, Universities, computer training institutes and training partners like Intel Summary recommendations • There should be a clear definition of ‘Rural’ for the USF in general and the Telecenter program in particular • After the availability of voice communications at very low costs via Cellular and WLL, it is necessary to eliminate PCO licenses as these are now irrelevant and may cause unnecessary confusion • Eliminate regulatory obstacles for Telecenters such that no licenses are necessary and some form of registration and special contracts should be sufficient condition for getting support and assistance. • Emphasize as a policy the implementation of Broadband for rural even before urban roll out, since competition will drive the urban markets but this is vitally needed for services like telemedicine and video calls and conferencing in the rural areas for achieving developmental objectives. • Create a well thought out interconnect transfer costs for Internet and voice communications for the Telecenters • It is crucially important to include civil society, political and other relevant stake holders in the decision making process for the USF users for Telecenter projects Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 8 of 279 Telecenters in Pakistan • Broaden the base of the USF recipients to include those who are not contributing telecommunications companies. This can be achieved by creating relationships between the licensees and the Telecenters operators where the recipient is the former. Examples of such recipients are: o Public Services (PakPost, Railways), o Developmental objectives Governments, PPAF, NGOs), (KADO, AKRSP, Provincial o CSR - Corporate Social Responsibility – (PSO, Pakistan Tobacco, political leadership), o Enhancement of existing services (Cellular, WLL), o Entrepreneurs and for profit (PCOs, Kiosk owners) Key interventions needed are: • Creation of a National Strategy for Telecenters • Creation of a broad stakeholder support • Publicize the program extensively along with an education and awareness campaign • Set up a Telecenter Information Clearing House • Create a training infrastructure for the Telecenter operators • Provide assistance in implementation Content While the proposed e-government programs which provide service delivery to the citizens are designed and implemented, Select the low hanging fruit - develop and use current services. Some examples: • NADRA payment Kiosks • Catalyse the automation of payments of Utility bills via different payment mechanisms • Convert key static forms into interactive forms which can be filled out over the internet – see the HEC initiatives • Access to NADRA’s Verisys for CNIC validation • Integration of the different Police department’s automation programs for FIR, driving licence and car registration Basic services at Telecenters, These can be offered as a startup – the business cases are built around this concept – as content generation catches up. Pilots of Telemedicine, Agriculture, etc exist and can be built up once focused attention is given to these: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 9 of 279 Telecenters in Pakistan • Access to phone, fax and IT equipment • Access to email and internet • Access to printing, typing and other PC related services • Access to basic education • Photocopying • Pictures • Telemedicine • Farming * Free guideline, Weather forecast, Pesticide information, Livestock healthcare, seeds information. Some of this is also being piloted on cell phones via SMS by the private sector. Telecenter Models There are some clear Models (not just one) which can be mapped against the current initiatives as well: • Public Sector model – Post Office • Public – Private sector model - PSO • Private sector commercial model – Telecommunications companies setting up and operating these • Private sector Telecom Operator driven model • Development NGO model – AKRSP and KADO • Privatete entrpreneur model – Telecenters and cybercafes run by entrepreuners Sustainability There are four elements of sustainability of Telecenters, not just financial as normally assumed. These are: • Social & Cultural: unless this fits into the scheme of things in the locations selected, the end users would not be convinced to go beyond the basic services of telephones and e-mails thereby defeating the broad objectives of the program • Financial of course being the key, especially for the time when subsidies and policy support are withdrawn. Under these circumstances the best running programs will wither away Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 10 of 279 Telecenters in Pakistan • Political. In the rural areas of Pakistan, this is a crucial aspect and must bring in the bureaucracy and the political realities into consideration. Hence the earlier recommendation of their involvement in the process • Technological: there are bound to be long term failures with the incorrect appreciation of hardware and software which is not supported connectivity which is not economical, sustainable or reliable. The selection of the correct combination can cut capital costs down by a factor of 60% Conclusions • The environment is ready for a national Telecenters initiative • A National Telecenter Policy and Plan should be drafted • Consider the Policy modification recommendations before launching the program. • Specially the use of USF by non-Telcos and the Regulatory cover needed • Conduct a comprehensive demand survey for Telecenter location • Consider an institutional structuring of the complete program • Look for Public – Private Partnerships. These can be moderated by the MoIT under the USF • Consider a Risk Analysis and funding methodology for the Telecenters (CAPEX/Counterpart funding/OPEX) • Using this study and the foreseen Demand Survey as a base, estimate the funding requirements for the Phase 1 participants • Phase 1 should consider the corporate entities with high probability of success o Those with low dependence on revenues from these centres o A clear set of applications and internal service delivery requirements o A solid partnership with LDI operators o Funding should be considered with counterpart funding (monetary or in kind) as key o Start with closely monitored scalable pilots This report can thus be seen as only the first step in catalyzing a movement in the right direction. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 11 of 279 Telecenters in Pakistan Volume 1 Part 2 Progress in the Telecenter and initiatives and impact of Telecom growth in Pakistan Back ground, Work Plan and Progress Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 12 of 279 Telecenters in Pakistan Background The last few years has seen a major growth in the spread of Telecommunications and IT in Pakistan. This has been predominantly in the Telecommunications domain where the deregulation and liberalization process has increased the depth and spread of Cellular coverage and use. The penetration of the fruits of ICT has not been able to get to the underand un-served population because of the delivery of services has been a challenge due the lack of sustainability of pure public sector actions. Several initiatives and Pilots have been in place and continue to operate. These range from Internet centres at PSO (Pakistan State Oil) petrol pumps, Intel teach the teacher program, private Internet Centres, PCOs with PCs for e-mail access, Public-Private partnerships in Punjab for using schools after hours for Internet and computer usage, Post Offices having Tele-Centres, etc. USF (Telecommunications) and other initiatives taking place in trying to bring ICT to the grass roots of the rural population. This Report sets the framework and direction for prospective funding by Multilateral Investment Agencies for creating and setting up Information Telecenters in Pakistan under the umbrella of the USF. It is proposed to setup a series of ‘Information Telecenters’ across Pakistan based on funding from the USF (Universal Services Fund generated by Telecommunication operations). These ‘Information Telecenters’ will function as rural multi-service platforms optimized for services based on voice communications and IP based solutions. An analysis of what has worked in Pakistan and what did not, is critical for preparing workable proposals. Work Plan With setting up of the background research with all the entities, the process of data acquisition and analysis followed check list. The reference document put in place would be to enable the development of a framework to design strategies and basis for the establishment of the ‘Information Tele-centers’ in the rural areas of Pakistan. Work Plan Phase 1: Initialization of ‘as is’ situation analysis 1. Conduct a selective baseline research to determine the different Tele-center initiatives in Pakistan in the last few years and conduct a SWOT analysis of their success or failure mechanisms. From this derive a ‘lessons learnt’ analysis. 2. Examine the issues and problems in setting up Tele-centers in Rural Areas of Pakistan. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 13 of 279 Telecenters in Pakistan 3. Compare with Tele-center initiatives in similar economies e.g. India, Sri Lanka, Indonesia, etc and the various models which have worked (e-Seva, MSR – Microsoft project, Akshaya, Friends). Phase 2: Models creation 4. By analyzing the sustainability and success of different Telecenter models worldwide and by incorporating the results and experience from existing pilot projects, advice on a few optimal models and solutions which would best achieve sustainability 5. Provide information on what type of organizations and alternate delivery mechanisms are available for being considered for this program. These can range from cooperatives, NGOs, private enterprises, telecom operators, Post Offices, government schools, distribution chains with public interface (e.g. Petrol Pumps), etc 6. Advise on few specific access-center models (delivery means) likely to be adopted by the franchisees, geographical locations and numbers in which these centers should be situated based on the feasibility of telecommunications reach or suggest alternatives to bridge the gaps, the number of centers needed, the funding relevant to each center and also what types and mixes of services should be offered 7. Determine financing models – USF, Government, Private sector, NGOs. Develop Cost models for: i. Telecom part ii. IT part iii. HR and Training iv. CAPEX and OPEX in totality for each model 8. Look at workable Public-Private –Partnership models for these models 9. Compare and suggest Umbrella delivery platforms for single and multi-location ownerships like the Post Office and private individual and entrepreneur. Phase 3: Technology and Networking 10. Propose the networking model for Internet connectivity as well as links to voice service providers (Cellular, WLL, LDI, etc). 11. Propose hardware solutions (computers, UPS, etc) which are optimized for the conditions in the rural areas. Maintenance and support delivery 12. Propose software solutions: Open source as well as deeply subsidized software and application and project support from major players like Microsoft, Intel, Oracle, IBM, etc. 13. Consider different connectivity models via CDMA on Cellular or WLL systems, VSAT DAMA DVB/RCS, fixed line, etc Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 14 of 279 Telecenters in Pakistan Phase 4: Support systems 14. Possible payment models for services eGov, Computing, Internet, training, etc. vouchers, prepaid cards, merging current IN platform of Pre-paid cards (LDI, Cellular, etc) to be able to exploit the distribution chain of these operators. 15. An assessment of the human resource, financial, technical and marketing capacities that are required to achieve the above outputs and the possible training requirements and mechanisms. Phase 5: Impact foreseen 16. Determine the possible economic and social impacts on the growth of the localities served by these Centers. Based on an understanding of these impacts, design performance metrics and evaluation standards to measure, and as far as possible, quantify these impacts. These may include the ROI if applicable, jobs created, services provided, social monitors could include educational, telemedicine and service delivery of government services. 17. Study true relevance of the impact of content, local language support in the Telecenter Phase 6: Selection and Funding issues 18. A standardized and transparent selection process (representing both input and output measures) to be used in evaluating competing potential franchise holders so that the applicants with the most suitable plans to meet the government’s objectives (entrepreneurship, services to the rural areas, stimulate the economy, empowerment, employment). 19. In order to activate funding from Public funds including the USF and MIAs and provide inputs to the selection criteria for the Tele-center owners. Since the selection of access center franchisees will not be based on financial bids, it is important that the selection criteria assess the technical, managerial and financial capabilities of competing organizations; 20. Develop the performance metrics in order to measure the effectiveness and sustainability of the centers Phase 7: Government Policy and Regulatory issues 21. Determine the relationships of Government Policy (and eGovt. plans) for service delivery to the citizens. Find out synergies for implementation via the Tele-centers. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 15 of 279 Telecenters in Pakistan 22. Review the telecom regulatory environment in Pakistan as it pertains to enforcement of policies particularly those pertaining to universal access; interconnection arrangements; tariffs; and implications of these for these Information Tele-centers. 23. Based on the internal targets set out by the PTA for Rural development, assess the needed resources like existing telecom and power infrastructure, current and forecast coverage of the Cellular and WLL companies, power availability, manpower and HR availability to run these centers, etc. This will lead to practical suggested models as stated above. 24. The legal and operational structures of the ‘Information Tele-centers’ and regulatory framework, if any, governing their operations. This should include the definition of the franchiser, the type of franchise agreement. 25. Getting a buy-in from key stake holders in order to bias the models for success Objective: The central aim of these Telecenters is the provision of better governance by delivering government services, low cost telephone connectivity, providing ICT training, basic telemedicine, email, information about farming, weather, prices of crops etc. It is envisaged that this will enable the economy to be stimulated so that the micro-economic gains can translate to an economic impact on the common man. Following are the objectives which should be pursued for the development of Pakistan: 1. Targeting of rural access component. Telephony (especially mobile) is so important for improving rural livelihoods that the more comprehensive approach with an ambitious target of 5% Tele-density coverage of Rural areas by 2010 should be strived for, if perceived as feasible -- through both policy/regulatory changes to further enhance competition in service provision together with sharing of passive infrastructure, coupled with a carefully conceived competition for minimum required subsidy scheme. 2. Sharing of passive infrastructure. To facilitate private operators to operate in areas with deficient telecom infrastructure, open access of the passive infrastructure facilities of the incumbents at "cost oriented pricing" should be mandated through regulation. Mandating opening of the network to competition at "cost-oriented prices" will ensure that scarce national resources are not spent in building multiple layers of similar telecom infrastructure. For the incumbent; it would be an additional revenue stream with incremental cost of infrastructure provision and contract administration. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 16 of 279 Telecenters in Pakistan 3. Provision of subsidized access to Tele-centers: Under this scheme, multiple options can emerge for locating the Telecenters -- including Post Offices, railway stations, local government offices, government schools, and other green field sites in such rural areas of Pakistan where these facilities are not available. Issues: There are several issues and problems which need to be addressed in order to meet this goal. Initial surveys reveal critical problems and parameters which differentiate successful models from those which have failed. The highest failure rate in the sites visited until now relate to a combination of the Rural Areas and a lack of critical applications which are actually needed to attract end users. These are analyzed in the main report. However, some of them are: 1. Connectivity for voice and Internet Despite the fast roll out the areas covered by the Cellular and WLL do not cover the most rural locations actually needing this service. The 2200 or so locations of the PTCL where one can do a dial up at the cost of a local call are not usable since there are no telephones to dial out from. 2. Electricity: The second most important issue is that of unavailability of constant electricity (and in some areas none at all) and special provisions will have to be made in the Business Case to mitigate this. 3. Placement of Internet Kiosk: The placement of internet kiosk is also an issue at many locations. A special purpose built room is not feasible and perhaps modular furniture and storage designs can be created for the different options of deployment. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 17 of 279 Telecenters in Pakistan 4. Delivery of Equipment: The vendors appointed for delivering the equipment try to avoid delivering it to very remote locations due to unavailability of proper roads and high costs involved in transporting the equipment in single or less number of units. Due to which it takes more time to deliver it than what it should take to wait for a considerable number of sites on the same route in order to curtail high costs involved. 5. Repair & Maintenance: In rural areas where support staff is not available, there is a very high probability that machines might incur some defect or fault due to improper use. Once the machine is out of order, there is no expertise available to mend it or remove the faults. 6. Lack of Computer Education and fear of ‘machines’ in rural areas: Addressing the issues: Some of the solutions to the above mentioned problems would be addressed in the report. These solutions will find their way into the final solutions based on the reality on the ground for each Telecenter: 1. In order to implement this project across the critical rural areas, the people of those areas have to be made aware as to what does the term ‘Tele-centre’ means and how it can benefit them. An ‘awareness campaign’ would be taken up through different media in order to make people aware what ICTs can do for them, and how the Telecentre makes this possible? 2. Propose the networking model for Internet connectivity as well as links to voice service providers (Cellular, WLL, LDI, etc). 3. Propose hardware solutions (computers, UPS, etc) which are optimized for the conditions in the rural areas. 4. Propose software solutions: Open source as well as deeply subsidized software and application and project support from major players like Microsoft, Intel, Oracle, IBM. 5. There should be enlarged rooms so that there is no disturbance or problem so that staff can carry out official work easily. 6. Proper information must have been gathered about the location including the infrastructure and facilities available in that region. 7. Connectivity is the main issue that needs to be overcome in order to make internet facility operational. 8. Repair and maintenance facilities which should be made available. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 18 of 279 Telecenters in Pakistan Initiatives ready to go! Some interesting information emerged from the study. The most important of this was the readiness of the environment to adopt Telecenters for a variety of reasons. Plans are already on the anvil or being rolled out by large institutions like PSO, Agha Khan Rural Support Program and the Post Office on the one side and private sector initiatives like Telecard, Mobilink, Telenor and private enterprise on the other. There is a buy in from a large NGO community, private sector (e-villages) and entrepreneurs. Organizations like Intel, Oracle, Microsoft and FOSS also underline the opportunity. The issue in part is a lack of publicity of what role comprehensive Community Information Centers can play, attracting educated people into this sector (not necessarily the PCO operators), service delivery which can take place even now in a integrated program and the interface with local language (Urdu). All these are central to launching an initiative which can bear considerable fruit in the development of the rural communities. This presents a huge opportunity for integrating this into an integrated ‘Pakistan Telecenter Program’ where education, poverty alleviation, entrepreneur development, tele-health, vocational training, etc can all be brought onto one platform for delivery. The issue which will then remain will be the education of the possible Telecenter operators (entrepreneurs and institutional). This should be considered as a key point in the strategy for funding, managing and proving support for this activity. A key element would be the education and awareness of all stake holders by a comprehensive print and electronic advertising this information as a part of the program. Survey results The physical ground survey of over 60 rural locations across Pakistan revealed that real Telecenters are rare even in locations which are relatively near the highways and edges of the so called semi rural areas. This survey was designed to go from the edge of the highways into the interior so as the address the areas in the so called Tier 12 and Tier 2 areas. Some results of this survey were mirrored by a parallel survey conducted by PSO on their current 1100 Internet Kiosks. The survey was designed to set the analysis and recommendations in the correct context. The questionnaires and the surveyors (enumerators) were accordingly briefed. Subsequent to 2 PTCL Licence as per 1996 Telecom reorganization ordinance Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 19 of 279 Telecenters in Pakistan the survey a detailed contextual debriefing was done to extract intangibles which were not reflected in the survey. Even in these cases several locations had computers (without internet) for training and watching movies. The assumption that PCOs provide a natural progression to becoming ‘Telecenters’ is valid from a financial and cost sharing basis but the issue of space defeats this assumption since most PCOs were too small to house even one computer for public use. Education plays a key role in the use of internet. Hence the setting up of Kiosks having computers by entrepreneurs is stalled because there appears no utility in those locations. However, if educated entrepreneurs are liked into the process with the provision of microfinance, technical and administrative support from a Telecenter Clearing House or Association and operationalising these services which can be delivered this can become a successful venture. The efforts and success of KADO 3 (Karakorum Area Development Organization) in setting up Telecenters can show the way for developmental organizations. KADO is one of the important development players in Northern Areas of Pakistan with a good reputation and excellent record of its achievements as well as transparency. Even though women used the PCOs quite extensively they did not use the Telecenters because of the closed structure of the cabins and ‘unsafe’ environments. This would be an important consideration in the physical design of these Access Centers. In the main urban centers the cyber cafes are more open and women tend to frequent these. However, for a more comprehensive and sustained model care will need to be mandated for the location of the computers and the environment so that girls and women can use these without fear and hesitation due to cultural barriers. Different Models will need to be designed for a sustained and successful roll out starting from institutional (e.g. PSO, PakPost, Telecom company) to Entrepreneurs in a green field or adjunct business environments. The logical result of the research was that unless there is usable content and services relevant to the user with good Internet access, Telecenters would not be of any real use. The critical areas of service delivery being government, education and agriculture oriented. 3 www.kado.net.pk Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 20 of 279 Telecenters in Pakistan Evolution of Rural Telecenters in Pakistan Several initiatives in the public and Private sector have been on going in the last few years. For example, PSO (Pakistan State Oil) has set up kiosks at 1100 petrol pumps across Pakistan and as a consequence of inter working with them in the preparation of this report, PSO has changed the scope of the service provisioning from simple Internet and Fax service to a means of delivery of several services. 1. PTA 2. PSO – Pakistan State Oil 3. Pakistan Post 4. Telecard – providing CDMA WLL service under the brand Go CDMA 5. Mobilink 6. CallMate LDI 7. Development NGO in the northern areas of Pakistan (e-Village Resource Centers). Pilots running in two locations in the Northern Areas. 8. Content delivery – Agriculture Ministry, Land Records, e-Government for service delivery 9. Individual entrepreneur either operating some form of Internet Centers or PCO operators who want to move up the value chain. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 21 of 279 Telecenters in Pakistan Volume 1 Part 3 Telecenters – Issues and suggested Regulatory and other interventions Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 22 of 279 Telecenters in Pakistan Shift in focus The rapid growth of coverage of Cellular and WLL and the bringing down of tariffs to very low levels (e.g. current Mobilink tariffs including airtime for post paid for domestic and international calls are comparable with land line PSTN charges). The coverage and low tariffs point to the importance of enlarging the focus of the USF Policy from Voice in the USF thrust to provisioning of Broadband internet in the rural areas to enable a fast development of these areas. From the lessons learnt from International deployments as well as in Pakistan, a practical strategy of creating solutions as this document was developed. In this considerable stimulus was provided to several institutions and organizations where Telecenters and their support systems have been brought to the forefront. This would enable the proposals contained in this document to go beyond theoretical suggestions and actually provide building blocks for actual programs. These can be directly considered for funding by a Multilateral Investment Agency (MIA). The changing scenario for provision of Telecommunications services in rural areas Telecommunications, especially Mobile is spreading at an astounding rate across Pakistan. With the pressure on creating more value for the investments being made, the rural areas are being targeted for expansion of service. Mobilink alone will have covered over 80% of the rural population in the next few months. When one combines the reach and coverage of the entire mobile and WLL operators put together (current and planned), the coverage of the rural areas has improved considerably. The cost of service is rapidly dropping and is at times lower then the PSTN wired or WLL service for local and international calls. This is the reason that Pakistan is reaching almost 29% Tele-density purely on the back of cellular. This suggests that the focus on USF spending needs a redefinition and more holistic view. Instead of provisioning only for funding CAPEX for access to voice (telephones), this should then emphasize more on: • Access and Usage enabling methods like Telecenters, language, software, Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 23 of 279 Telecenters in Pakistan • • • Ubiquity of all types of content and information delivery to the citizens and Stress on Broadband for Rural for providing a whole range of enabled services. Interconnect rates to remove the differential between Cellular and Mobile access specially the CPP anomaly which causes calls to the Cellular to be more than WLL or PSTN Emphasize Broadband for Rural – even before Urban Most services which will enable the fruits of the deregulation travel into the economy are not only based on voice communications. Rural areas more than Urban, need broadband services for delivering Government services including training, education, Tele-heath and telemedicine, agricultural extension programs, etc. This document also examines the different Broadband options which are being rolled out or which can be encouraged to do so with the right set of incentives. The current models range from using the Internet connectivity at reasonable speeds on WLL CDMA networks to proposed WiFi, WiMAX and DVB-S2 solutions. The issue will be not only the availability and reliability of GPRS and EDGE coverage and the cost of the CPE devices but also of the way the service is charged. Because of a lack of focus from the Cellular operators the abnormal charging for sessions and volume where the operator deliberately drops sessions and restarts while charging for this (covered in the section on connectivity) the use of this medium may be counter productive. This has been taken up with the key Cellular operators and some relief may come about. WLL (at least Telecard which responded to queries) do not have this limitation and may be a better option for these Telecenters with few PCs (see the section on Connectivity) until the tariff structure changes in the way Cellular will provide EDGE And GPRS. However, both of these solutions have a volume based billing and do not lend it easily to the commonly used hourly based charging at the Telecenters. Some workarounds will need to be found for this. Currently on Mobilink is providing for a flat rate (Rs.500/month) but does not have a major emphasis on the data aspect of its business. Another aspect of the GSM based GPRS (and to some extent CDMA as well) is that it is optimized for WAP type (small size of data) and not normal type of HTML content, hence the data services and user experience will not be optimal Based on typical cost structures in telecommunications and the growth of the coverage as is happening, the issue would not be so much in terms of a one time subsidy but for a Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 24 of 279 Telecenters in Pakistan Sustained need for providing this in terms of OPEX for interconnect, backhaul and satellite bandwidth (where needed). International Experiences A considerable amount of information exists on Telecenters (using different terminologies); their roll out and case studies from all over the world. Handbooks 4 for setting up and running these, training manuals for educating the Telecenters operators, business cases and lessons learnt are also available and will be referred to in the main report. The issue is of context and applicability. We have sifted through a large volume of inputs and have focused on instances from similar demographics, economies and preferably similar cultural backgrounds. India, Sri Lanka, some examples from South America and Africa hold valuable lessons for similar work in Pakistan and has been studied in detail to get clues for sustainability. In most instances, many critical services which are on offer need fundamental issues to be tackled. However, these may not be in the direct area of intervention for this Report. Examples of these are getting the utility companies to open their billing data basis for bill collection and speedy transfer of funds back to the Utility companies, backbone connectivity to rural centers, etc. A wealth of information was obtained via the Internet as well as by direct contact with people who have set up these ‘Centres’ which perform a variety of functions. The issues and the way these have been addressed are fairly similar all over the world. However it has been the local dynamics which drives the success or failures in each environment. These issues and ground dynamics are complex just as they appear to be simple. As mentioned earlier, in order to make this report a useful and a practical document, we not only studied and analysed experiences internationally (this is adequately covered in a complete chapter of the report) but also derived lessons in the context of Pakistan. Issues of power, connectivity, content and sustainability are common to most international experiences where Telecenters have been set up. In order to come out with a realistic document, we decided to single out the key items and address these in a practical form. The experiences in India and Sri Lanka have been useful base for understanding what creates a sustainable Tele-centre and what the pitfalls are. This needed extensive discussions, coaxing and motivation to get a buy-in from different stake holders who could drive the six distinctive models which were singled out as being the Models for deployment of the ‘Information Telecenters’ in Pakistan. A spin off effect was that several events and relationships started falling in place even before the Report is finalized. The Report will cover these as possible elements and entities that some MIA can consider funding. 4 CSC, APDIP/UNDP, Cornell University Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 25 of 279 Telecenters in Pakistan Policy and Regulatory issues for Telecenters Telecenters arguably should be run as businesses 5 , which places the main responsibility squarely on the private sector. But since a primary aim is to contribute to development, there are some functions that the government must perform. The government’s initiative may be needed to launch the process, establish the legal and institutional framework, start up pilot projects, and develop national or regional support. As the idea proves itself, the government may be able to reduce its role to a support function and public reporting and regulatory responsibilities. Eventually the support function could be jointly owned and managed by participating Telecenters, perhaps through an industry association. In the early stages of developing a Telecenter program the government could: • Publicize the program. • Remove regulatory and administrative obstacles to market entry and competition. • Specify the minimum service requirements to meet development needs. • Assess the eligibility of Telecenter proposals and business plans for public support. • Facilitate operators’ access to information, technology, and infrastructure. • Provide or channel financial support for investment and start-up if needed. • Provide training and support services for operators. • Monitor and evaluate results and disseminate best practices. Some rethink needed The USF Policy needs some change in focus for a more effective utilization of funds. These may not be show stoppers but in view of the spread of basic voice telephony covering over 80% of Pakistan the thrust should now focus on delivery of content and services. This point to a greater emphasis on Broadband delivery as well as a nationwide roll out of the initiatives mentioned in this report – Telecenters and Community Resource and Information Centers. The USF Policy6 calls for setting up Telecenters as a part of the Policy statement: “…..MoIT hereby sets following nation-wide targets for the end of year 2010: 5 Sustainable Telecenters: A Guide for Government Policy; Björn Wellenius 6 USF Policy 29.6.06 – MoITT, Pakistan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 26 of 279 Telecenters in Pakistan • 85% of country population to have coverage and therefore access to service if desired • Teledensity: 5% in rural areas (fixed and/or mobile) • Broadband: 1% penetration (nation-wide average) • Telecenters: preferably one for every 5,000 people, but at least one for every 10,000 people in USF contract areas. And by the end of year 2015: • 95% of country population to have coverage and therefore access to service if desired” Due to the aggressive roll out of the Cellular Networks, it is expected that many of these voice based targets may be met (and perhaps, exceeded) in a relatively short time, a realistic resetting of targets may need to be done, especially for broadband provisioning and Telecenters. As an outcome of this research, challenges the key percepts of the USF Policy: 1. The Targets 2. Definition of Service 3. The definition of Rural 4. Increase focus on broadband for rural development 5. Criteria for QoS for Rural areas, specially for broadband and internet 6. The focus of the spending and finding ways to fund non-telecom players 7. The structure of the decision making structure of the USF Broadband Policy Modifications in the Broadband policy are needed to enhance the use of broadband in rural areas for stimulating economic and social development as a part of an integrated government effort for poverty alleviation. Costs of rural broadband services need special review since the existing focus is more urban driven and in all discussion with the PTCL (still a primary provider) and other operators this way back on the radar screen. An emphasis or rewards (e.g. delayed payments of license fees for spectrum) by the PTA, for rural broadband roll out on IP will enhance the development on WiMAX and WiFi Mesh. The release of the 2.6 GHz MMDS spectrum by the PTA for WiMAX and the opening up of additional bands for WiFi will be a big step in helping the deployment of Broadband in Rural and Urban areas. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 27 of 279 Telecenters in Pakistan The issue of usage of the license free bands like WiFi (2.4 GHz, 5.8 GHz) and WiMAX (2.5 GHz) in these bands should be approved for both, voice and data. Rural definitions The definition of Rural needs to be streamlined and made uniform for the USF to function with clarity and by extension, the Telecenter initiative. The various definitions currently are: Definitions of rural as per PTCL old license: TIER 1: means areas having population more than 100,000 inhabitants. TIER 2: means all settlements between 5,000 and 100,000 inhabitants. TIER 3: means all areas within the Licensed Territory not included in Tier 1 or Tier 2. Federal Bureau of Statistics defines a village as: “Revenue estate identified by its name “Had Bast Number”, cadastral Map and name of Tehsil/Taluka, Distt. Province in which it is located. “Village is called a settlement consisting of House Holds where people live in and identified on the ground in consultation with local administrative authorities”. Definition of a village in the light of Local Government Ordinance 2001: ‘Village means an integrated and contiguous human habitation commonly identified by a name and includes a dhok, chak, killi, goth, gaown, basti or any other comparable habitation; Funding aspects The other aspect is the utilization of USF funds for Telecenters exclusively by participating Telecommunications companies. All the research and interaction has shown that the prime drivers will NOT be Telcos but a predominant majority being organizations involved in: • Public Services (PakPost, Railways), • Developmental objectives (KADO, AKRSP, Provincial Governments, PPAF, NGOs, Acumen fund), • CSR - Corporate Social Responsibility – (PSO, Pakistan Tobacco, political leadership). This is useful for initialization of major programs but for long term sustainability the Telecenters should be sustainable from its commercial operations Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 28 of 279 Telecenters in Pakistan • Large Service providers who can form umbrella Telecenter organizations creating franchises for smaller entrepreneurs. They would then be able to create a buffer between large funding agencies and smaller operators • Enhancement of existing services (Cellular, WLL), • Entrepreneurs and for profit (PCOs, Kiosk owners) As such a change in policy regarding the partners to be funded is necessary. Licensing and Regulatory PCOs In order to make these locations proliferate, the concept of issuing licenses for opening and running PCOs should be finished and the segment liberalized totally. This is proven by the fact that there is no allocation of scarce resources which needs the Government to license this sector any more. Because of the deregulation and almost perfect competition the tariffs for calls on Cell phones are becoming better than what the fixed lines can offer and most PCOs are offering cell phones from different Cellular operators for completing calls. The brief experience of the PTA has been the same when it opened some Telecenters as trial pilots. Card payphones could continue in this fashion in order to meet any regulatory and licensing requirements. Telecenters While Telecenters should not be licensed per se, but they need to be brought into a common framework by registering them, in order to be able to share resources, experiences and be able to access common funds and facilitation. An association in the form of ‘Telecenter Association of Pakistan’ should be formed in order for it to be able to provide support to new and existing initiatives. This entity would also represent Pakistan in the international community of Telecenters (or whatever name these are known as in different countries). Decision making structure One key element in the USF i.e. the decision making and governance structure is deeply flawed when one considers international experience. The most relevant experience being in India. The issues are starkly near what will happen if we do not involve the civil society, the rural community, politicians who represent them (however flawed in their governance) and non telecom players. The current make up of decision makers for this will because a log jams in decision making and incorrect decisions constituting a lot of sound and fury but no real consistent progress. It is important to see what has happened in India: …..TRAIs policy is to invite the consumer groups for consultations twice a year. But, it also invites service providers at the same time, making one-to-one interactions between TRAI and consumer groups virtually impossible. 'There is no lobby for rural people. They are not Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 29 of 279 Telecenters in Pakistan considered consumers,' says Professor Ashok Jhunjhunwala of IIT Madras. Under-served rural communities, unfortunately have little access to the tools available to city users. With hardly any service, leave aside choice, market mechanisms clearly do not help. Complaints mean little …. In his response to some of these issues, outgoing Chairperson of TRAI, found little wrong with its working. He said the civil society was inadequately represented, weak and poorly organized which TRAI could not help. The Universal Service Obligation Fund, constituted to subsidise rural communications has largely functioned as an opaque accounting bureaucracy with close to US$2billion of its collections unspent. There are recent reports that USOF will amend its rules to provide support to rural telecommunications infrastructure like towers etc. The USOF has no established consultation process. Civil society players have little access to it or its thinking on issues of import. Civil society organizations (CSOs) have varying levels of expertise and experience in interacting with regulators. Many issues in the forefront of telecommunications debates – access deficit charges, interconnection rates, niche operators for rural areas, the spectrum requirements for GSM and CDMA technologies etc - require information and skills which CSOs frequently lack. So their engagement on these issues is expectedly limited. Without relevant and reliable information, their involvement can only be limited and even counter productive. CSOs have had some impressive wins. For example, the opening up of wi-fi based services recently is largely the result of CSO's relentless pursuit, which is a greater priority for it than the big players. But these 'wins' are rare… Regulation will play a critical role in determining whether or when ICTs become available to all parts of civil societies especially the poor and rural communities. The link between CSOs and regulators is weak. In the absence of effective dialogue with civil society, regulators largely insensitive to civil society issues, have largely concentrated on the issues brought to them by industry. Faint and poorly articulated, civil society voices have yet to reach regulators in their seriousness and urgency and remain largely unaddressed. CSOs will need to correct that7. A change in the USF policy will ensure that Pakistan does not fall into the same trap. What’s in a name? Telecenters and Community Resource and Information Centers Building on the international experience and knowledge, these Centers can serve as a critically useful platform for not only ICT but a comprehensive economic development of a community. The trend of the ‘Telecenters’ is more towards ‘Information Centers’ , ‘Resource Centers’ , ‘Access and Community Centers’, etc each of 7 Dr. Mahesh Uppal, civil society and the unfinished telecommunication agenda, www.i4donline.net, Aug 2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 30 of 279 Telecenters in Pakistan which struggles to define the role of the center itself. In several locations across the world the ‘Telecenters’ did not have any Telecommunications facilities at all and a ‘bait and switch’ 8 principle led these from useful community service centers to full fledged Telecenters. The local surveys have yielded similar results in Pakistan as well. It may be useful for considering a change in name to something which reflects its utility. One example for Pakistan comes from the Aga Khan Rural Support Program 9 Community Technology Learning Centers (CTLCs) where the primary goal of CTLCs is to take ICT to every village in the region so as to provide a wide array of opportunities for development and facilitate the building of constructive social capital. Major components of the CTLCs include the following: ƒ ƒ ƒ ƒ Community information networking Capacity building and skills development Facilitation of economic activity and employment generation Social preparation for sustainability of ICT service This initiative will thus have to distinguish between Telecenters where only Phone and Internet services can be given from those which can become comprehensive Resource Centers. As such this project should be titled ‘Pakistan’s Telecenter and Community Resource and Information Centers’ Those Centers should be named Telecenters where the service is only small scale Internet access and PCOs and be called Community Resource and Information Centers where a more comprehensive Service offering is available. 8 Challenges to sustainability; Kentaro Toyama, Assistant Managing Director Microsoft Research India 9 Application of Information & Communication Technology (ICT) to Community Development Initiatives in Northern Pakistan, AKF March 2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 31 of 279 Telecenters in Pakistan Volume 1 Part 4 Survey Findings Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 32 of 279 Telecenters in Pakistan Survey It was necessary to do a physical survey in order to ascertain the real benchmarks for success in prospective Telecenter initiatives. The results of this survey were used to validate assumptions and to determine the reality of how far this phenomenon had penetrated. Summary Results • Telecenters rare even in suburban areas • PCOs may not be the best upward path for Telecenters – ownership and education • Current set up of Telecenters does not encourage women to use the internet • A variety of services like printing, scanning, pictures, etc already creates a good business • Lack of useful and paid e-services is a key reason for a lack of growth • Lack of education • Electricity in the remote locations • Lack of awareness for educated youth • Financing for the people who can set up and operate Telecenter • Biggest challenge: Connectivity Key Issues Strategy Two sets of surveys were carried out. One was through the rural heartlands of the Punjab (the most populous Province having agriculture as its mainstay) and the second one through the remote areas of the NWFP (Frontier Province, difficult region, very conservative). A smaller one and more focused one was done in three main cities (Islamabad, Lahore and Multan) to see the state of Telecenters in Urban areas. The intent was to determine: Survey Locations • • • The availability of Telecenters in suburban and rural areas Determine the availability of PCOs (Public Call Offices) and their ability to scale to Telecenters The profile of users (age, sex, type, use) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Urban Rur al Suburban 33 of 279 Telecenters in Pakistan This was done in relation to the largest city in the area being surveyed. Hence the result of each response form was studied in Adjunct Businesses to Telecenters the context of the region and its specific demographics. To substantiate this survey, pictures were also taken. The results of two Computer such locations follow in this training Computer document. Details of the 60 sites Sale & are in Volumes II of this report. Service Details about two such locations follow this text to give a sense of Cell phone the type of survey conducted. Shop + PCO The most interesting part of results is that even though over 2300 locations in Pakistan have access to telephones and dial up internet at the same charges as the urban centers, the Telecenters Internet Café (Only) were almost non-existent. Some places did have computers but these were mainly to watch movies on DVDs. As such the phenomenon does not go beyond main cities as even in sub-urban areas the proper use of the Internet and the advantages of having communities around Telecenters. Cyber cafes proliferate in the urban areas because of education, need and recognition of the utility of the Internet. Cities will continue to have Telecenters as opposed to the suburban and rural areas being fertile for Community Resource and Information Centers. It is strongly felt that awareness of the utility of the internet and the services which can be delivered needs to be addressed in the related Media campaign for Telecenters. User distribution at the PCOs Baseline Research This research focused and compared the business of PCO’s, Internet Cafés and Call Centers. The aspects highlighted during this project are space for improving quality of centers, physical conditions of centers, owner’s qualifications, structure of centers, Demographic situations of towns etc. in the Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Labor 21% Students 13% Visitors 16% Farmer 23% Govt. Servant 12% House Wives 15% 34 of 279 Telecenters in Pakistan Urban and Rural areas of Punjab and NWFP. This study focuses on a centers improvement project that promotes community participation as a development strategy to counter diminishing government resources in the specified sector. The major aim of the survey was to collect a set of comprehensive statistics on the various dimensions of country’s rural areas. The results from the survey provide information required for skill development and planning, for setup of Telecenters in rural areas and identify the factor and ways of improving. This research also identified challenges and opportunities regarding the establishment of Telecenters in rural areas of Pakistan and to propose a model for the establishment of Telecenters in Pakistan in terms of policy formulation, planning, management, funding, building, equipment, technology, services, targets groups, marketing and sustainability. Objectives and main findings of the research Following are the objectives and results of the study 1. To assess the situation of the rural population in two districts of Pakistan and information facilities available to the, including telecommunications, computers and public libraries. 2. To find out the problem facing PCO’s, Internet Cafés and Call Centers in Rural and Urban areas. a. PCOs operate due to market drivers b. The use of Internet is a function of education and need c. The basic business case for PCOs converting to Telecenters is not there since there is a severe lack of space and the congestion does not lend itself to a clean access environment 3. To find out factors for success and failure of centers in Rural and Urban areas. a. Telecenters in the urban areas are need driven and where there is already an awareness 4. Quality and services providing PCO’s, Internet Cafés and Call Centers in Rural and Urban areas. a. PCOs are primarily service and price driven. b. If there is competition both of these was improved 5. To collect data on socio demographic characteristics form owners of Centers (i.e. Gender, Age, marital status, level of educations and usage & knowledge about computers) a. Details in volume II Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 35 of 279 Telecenters in Pakistan 6. Get statistics information from the owners of Centers about income, expenditure and monthly usage of Phone, Mobile and Internet. Income level of Centers 14 <10,000 No. of Centers 12 10,000 to 15,000 10 10,000 to 15,000 15,000 to A bo ve 20,000 20,000 8 6 4 <10,000 2 0 10,000 to 15,000 15,000 to 20,000 15,000 A bo ve 20,000 to 20,000 A bo ve 20,000 13 % Internet Cafés Call Centers PCO's 7. To collect information of facilities in the area (i.e. Primary School, High School, College, Electricity, Telephone, Mobile, Cable TV, NGO’s Office, Net Café and Computer Training Institutions) a. In the areas surveyed, mostly the Telecenters were commercial in nature with no real public sector or Government inputs b. Electricity is available in most of the suburban and a majority of the rural areas in the survey points c. There has been no thought of setting up comprehensive Telecenters or Resource and Information centers. A ripe opportunity 8. To collect descriptive facts of the centers i.e. Numbers of Telephone Sets, Computers, Printers, Scanners, Fax, Photo Copying, Binding and Lamination Machines at center) 9. To collect data of centers items daily usage, their income & profits. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 36 of 279 Telecenters in Pakistan Centers daily Profit Percentage from Services 100% 89.36% 90% 80% Profit Percentage 71.99% 71.36% 72.97% 70% 60% 58.33% 59.88% 50.67% 50% 40% 62.50% 56.47% 60% 31.97% 30% 20% 10% 0% 10. To collect data about knowledge about computers a. Surprisingly, a high level of computer knowledge exits in remote areas primarily because f the multitude of ‘IT training centers People knowledge about computer 30 - 50 % Knowledge 8% 36 % < 10 % Knowledge 56 % 10 - 30 % Knowledge Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 37 of 279 Telecenters in Pakistan Avaialbility of Technical support No Available 40% Available 60% 11. To collect data of gender visits, timing and most usages age group. a. Females did not come to the computer centers because of i. Congested locations – cultural issues ii. Lack of knowledge of computers and its usage iii. Cultural issues 12. Cultural components (Consideration of social and historical characteristics, cultural outlook, level of education and literacy) a. This was to put the question sin a social and economic context 13. Observe the centers locations and get information where Telecenters setup could be successful. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 38 of 279 Telecenters in Pakistan 14. Type of users of the Internet Internet Users Labor Farmer 7% 8% Students 28% Shopkeeper 14% Govt. Servant 20% Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Visitors 23% 39 of 279 Telecenters in Pakistan 15. Number of years in operation in the regions surveyed Internet Cafes - years in operation No. of Net Cafes 5 4 25% 25% 18.75% 3 2 12.5% 12.5% 6.25% 1 0 1 2 3 4 5 6 No. of Years No. of Call Centers Call Centers - years in operation 5 4 3 2 25% 12.5% 12.5% 12.5% 12.5% 1 12.5% 12.5% 0 1 2 3 4 5 6 7 8 9 10 No. of Years PCO's - years in operation No. of PCO's 10 30% 8 6 15% 8% 4 2 8% 8% 8% 4% 4% 4% 4% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 No. of Years 16. To analyses the above factors and determine which one plays the most significant role for the setup of Telecenters in Rural areas. 17. To document the community information initiatives in terms of objectives, institutional framework, staff, services, use finance, technology and lessons learned. 18. To analyses all factor from research for the policy makers to give a user friendly environment of technology that enables all rural citizens to have ready access to dynamic information, modern communications and electronic services and content that realize quality of life improvements. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 40 of 279 Telecenters in Pakistan Research Methodology The qualitative & interpretive questionnaires were drafted in accordance with the areas that were being inquired at and get results through personal interviews and observations. Research will consist of following four steps. Step 1: In depth Interviews from owners of centers about his services, knowledge, experience, services rates, types of people (Male & Female) visits and services user’s satisfaction. Step 2: Observations at Center about demographic factors, social networks, use of facilities Step 3: Observations at an affluent center and compare patterns with disadvantaged communities Step 4: Owners of centers and outside locations picture were taken. Coverage and Selection of Districts for Survey The survey covered 50 urban and rural areas of 23 districts of two provinces of Pakistan Punjab and NWFP. From 23 districts 26 PCO’s, 8 Public Call Centers and 16 Internet Cafés were selected for interviews. z Selection Criteria z Wider geographical diversity z At least one district from each zone z At least one rural area from each district z Easy access by road z Proportionate distribution in accordance with z Development regions, z Ecological regions, z Population distribution and z Literacy level Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 41 of 279 Telecenters in Pakistan SELECTED DISTRICTS OF PUNJAB & NWFP Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 42 of 279 Telecenters in Pakistan Data Collection Method In pursuance of the research objective, a survey research method was undertaken, which enables the systematic collection of data from the respondents. (It also lets the respondents express themselves more freely and to remove any ambiguity that is reflected upon by the queries present in the information requirement instrument). Personal aspects of survey research were preferred, as it facilitates the direct interaction with the respondents from various socio-cultural backgrounds, and the chances of misinterpretation become a lot more diminished. As far as sampling is concerned, Convenient & Simple Random Sampling will be used for collection of data due to time constraints. Measurement Techniques A formalized, structured approach was followed for the purpose of data collection and measurement, and the direct measurement of the investigative areas. For this, a questionnaire approach was made use of, as it allows in-depth search for various variables, and that too with a minimum of effort, especially if the questionnaire is a closed ended, which happens to be the case in our research. The questionnaires were circulated to owners of PCO’s, Call Centers and Internet Cafés and were also taken responses off, right at point wherever possible. It was preferred though that, the respondents have ample time, and no pre-occupation of mind, at the time of filling the forms, as that could have distorted the quality and reliability of the data being collected. Sampling Bases For the purpose of data collection, measurement and overall research survey, sampling has been done as per following: Total Population The size of the population, considering the magnitude and the various inherent limitations was restricted to a total of 26 PCO’s, 8 Public Call Centers and 16 Internet Cafés from where relevant data has been obtained. For this purpose the nature of the population happens to be the owners of PCO’s, Call Centers and Internet Cafés in rural and urban areas. Sample A Random sample of 26 PCO’s, 8 Public Call Centers and 16 Internet Cafés was taken from fro 23 districts of Punjab and NWFP. A stratified sample design has been adopted for the survey of rural & urban areas. Sampling Unit The basis used for drawing the sample is as simple as it can be. We have concentrated on individual owners of PCO’s, Call Centers and Internet Cafés. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 43 of 279 Telecenters in Pakistan Sampling Method Non-probability sampling with the sub-division of convenient sampling were used. Sample Size Out of the total 68 districts, 23 districts of Punjab and NWFP were selected and have taken 50 respondents from the Mouzas / Dehs / Villages for our measurements, and collection of relevant data. This means that we have chosen at least 2 towns from each district. Data Analysis Techniques To come up with a substantial conclusion various data analysis techniques will be used which comes with Ms Excel. For ease of understanding various types of Charts (graphs) will also be used. Data Processing and Editing After data collection, manually clean, edit and check the filled in questionnaires for consistency and completeness. Also during data entry, further editing of computer identified errors by applying computer edit checks, data ranges in numerical values were used to eliminate erroneous data as result of mistakes made during coding. The survey records were edited and corrected through a series of computer processing stages. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 44 of 279 Telecenters in Pakistan Samples of the survey (Full survey in Volume II) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 45 of 279 Telecenters in Pakistan Multan Longitude E71 26.965 Latitude N30 11.508 Area 3,720 km² Population 4 million (Approx) (720 persons / km²) Literacy Rate 43.38 % (Ranking 29th ) Number of towns 3 (Makhdoom Rashid, Qadirpur Ran and Basti Maluk) Number of Union Councils 4 (Multan Cantonment, Multan Saddar, Shujabad and Jalalpur Pirwala) Multan: is a city in the Punjab Province of Pakistan, and capital of Multan District. It is located in the southern part of the province, and is steeped in history. It has a population of over 4 million, making it the sixth largest city in Pakistan. It is located in a bend created by five confluent rivers, more or less in the geographic center of the country, and about 966 km from Karachi. Multan has connection with other cities by bus and coach. The district has metalled roadlength of 983.69 Kilometers. The district is linked with Khanewal, Lodhran and Muzaffar Garh districts through metalled roads. Education: Multan is famous for its Bahauddin Zakariya University,. Other educational institutes are Al-Khair University, and Nishtar Medical College. There are several colleges affiliated with the University of the Punjab. Industry: Multan is a commercial and industrial center; it is connected by road and rail with Lahore and Karachi, and by air with Karachi, Quetta, and Faisalabad. Industries include fertilizer, soap, and glass factories; foundries; cotton, woolen and silk textile mills; flour, sugar and oil mills; and a large thermal-power station. It is famous for its handicrafts (ceramics and camel-skin work) and cottage industries. Multani khussa (shoes); embroidered clothes for ladies; embroidered cholas for men; earthenware pottery, painted pottery, camel-skin ware (e.g. lamps); carpets, wooden products, especially lacquered wood. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 46 of 279 Telecenters in Pakistan Agriculture: An area of 1900 acres is under forest in the district. There is also linear plantation of 810 Km alongside the roads / rails / canals in the district. Trees grown in the area are Kikar, Shisham and Mulbury, etc. Corps: Wheat, Cotton and Sugarcane are the main crops grown in the district. Fruits: Mangoes, citrus, guavas and pomegranate are the main fruits grown in the Multan district. Additionally, dates, jaman, pears, phalsa and bananas are also grown in minor quantities in the district. Vegetables: Onion and Cauliflower are the main vegetables grown in the district. Visit Locations: 1. Bosan Road Multan City 2. Raja Ram Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 47 of 279 Telecenters in Pakistan BOSAN ROAD, MULTAN Multan is an agricultural city. Bosan Road (Multan) location was chosen for Telecenters survey because it is the main ideal place for Telecenters business. Bosan Road is a commercial and educational & offices sector of Multan. It is 7 km from the bus stand toward the Bahaudin Zakariya University and the central location of Multan. During survey visit a questionnaire regarding Telecenters specific information was filled and takes the pictures of locations. Some Picture from Multan Survey On Click PCO & Internet Café Bosan Road, Multan One Click: Net café Server Section Multan outside location Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 One Click: Net Café Section One Click: PCO section Bosan Road Chowk, Multan 48 of 279 Telecenters in Pakistan Telecenters Survey Questionnaire Name: Muhammad Zubair Address: One Click PCO & Internet Café, Bosan Road, Multan Age: 26 – 64 <18 18 – 25 1. Education: None 2. City Area: Rural 3. Population: More than 100,000 Above Gender: Under Metric Intermediate Peri Urban Urban Male Female Graduate 50,000 to 100,000 Post Graduate Less than 50,000 4. Which of the following facility available in you city? Primary School High School Mobile Cable TV College Electricity NGO,s Office 5. Do you have computer training certificate? Yes 6. Local people knowledge about computer? Net Café No <10 % Telephone Computer Training Institute Duration: 1 Year 10 – 30 % 30 – 50 % 7. Is Internet facility available in the city? Yes No Don’t Know 8. What do you think about internet usage? Good Bad Don’t Know 9. Are the repair & maintenance facilities / computer Hw. /Sw. expert available in the area? 10. Total numbers of workers in the center? 3 people ( Me & 2 Employee) 11. How long your center has been operative? 7 years 12. Your monthly income? Less than 10,000 13. Which prepaid cards available at your center? Rs. 10,000 to 15,000 PTCL 14. Your personal monthly expense on following facilities? Telephone: Rs. 900 15. No. of Equipment at your Center Telephone Sets Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Yes No 150,00 to 20,000 Mobile Mobile: Rs. 600 Above Above Internet Internet: Rs. 400 Quantity 5 49 of 279 Telecenters in Pakistan Computers 6 Printers 1 Scanners 1 Fax Machines 1 Photo Copying Machines 16. Binding & Lamination Machines What services do you offer at your center & what about their profit margin (Without main expenses)? Description Rate All items usage per day Total Profit Margin Telephone Calls 3 / Unit 400 Units 1200 200 Email & Internet Access 20 / h 18 hours 360 250 Computer Use (Films, Songs etc.) 15 / h 36 hours 540 400 Printing 10 / Page 20 Pages 200 160 Scanning 10 / Page 5 pages 50 50 Word Processing Photocopying Fax Communication 17. What type of people visit at your center (Rank 1 – 6)? Men 5 Women Labor Labor 6 Farmer 4 Farmer 18. What are 3 age group that use facility (Rank 1 – 3)? 19. What is the source of initial funding? Shopkeeper House Wives 1 Students Students 1 < 18 Self 2 Govt. Servant 3 Govt. Servant 2 18 -30 Visitors Visitors 3 Loan 30 to above Partnership 20. Could this business run on the other location? Net Café / PCO/ Telecenters will be successful near Bahauddin Zakariya University or Shah Rukne Alam Colony sectors. Because these areas are successful for any business. 21. Summary Status & Analysis: Bosan Road is commercial, Educational & Office Sector of Multan. There are many PCO’s Offices, Internet Cafés, Mobile Shops, Book Shops, Photo Copying Machines and Educational Institutes at that sector and success ratio is 60 %. During the survey it was found that maximum students use Café for only chatting and watching films. According to the survey, owners of PCO & Internet Café are not highly educated but their centers are successful because of the commercial location. Telecenters business is expected to have a high success rate. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 50 of 279 Telecenters in Pakistan RAJA RAM (MULTAN) Raja Ram is an agricultural town of Tehsil Shujaabd, District Multan. It is 7 km from the bus Shujaabd, 45 Km from Multan, 25 Km from Basti Maluk and 20 Km from Lodhran. Raja Ram is an agricultural town of District Multan. Raja Ram town was chosen for the Telecenter survey because it is ann ideal place for this business and central location for many small towns (i.e. Alaabad, Kale Wala, Lakre Wala, Caval Wala, Bhoje Wala, Basti Rashed Abad, Dhore Wala, Kotly, Jeven Wala, Gele Wala, Matutele and Muweem Pur. There is a Railway Junction in Raja Ram. During survey visit a questionnaire regarding Telecenters specific information was filled and pictures taken. Some Picture from Raja Ram Survey Al Hafiz Public Call Office, Tehsil: Shujaabd, District: Multan Outside Picture Al Hafiz, PCO Al Hafiz PCO Section & Representative Out Side Locations of Raja Ram (Zaref Shaheed) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 51 of 279 Telecenters in Pakistan Telecenters Survey Questionnaire Name: Malik Ashfaq Age: <18 1. Education: Address: Al Hafiz PCO & Gas Centers, Raja Ram, Tehsil Shuja Abad 18 – 25 26 – 64 None 2. City Area: Rural 3. Population: More than 100,000 Above Gender: Under Metric Intermediate Peri Urban Urban Male Female Graduate 50,000 to 100,000 Post Graduate Less than 50,000 4. Which of the following facility available in you city? Primary School High School Mobile Cable TV College NGO,s Office 5. Do you have computer training certificate? Net Café Yes 6. Local people knowledge about computer? 7. Is Internet facility available in the city? Electricity No <10 % Yes 8. What do you think about internet usage? Good 2 people (Brothers) 11. How long your center has been operative? 6 years 12. Your monthly income? Less than 10,000 13. Which prepaid cards available at your center? 10 – 30 % 30 – 50 % No Don’t Know Bad Don’t Know Rs. 10,000 to 15,000 PTCL 14. Your personal monthly expense on following facilities? Telephone: Rs. 600 15. Computer Training Institute Duration: 9. Are the repair & maintenance facilities / computer Hw. /Sw. expert available in the area? 10. Total numbers of workers in the center? Telephone No. of Equipment at your Center Quantity Telephone Sets 4 Yes No 150,00 to 20,000 Mobile Mobile: Rs. 700 Above Internet Internet: Computers Printers Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Above 52 of 279 Telecenters in Pakistan Scanners Fax Machines Photo Copying Machines Binding & Lamination Machines What services do you offer at your center & what about their profit margin (Without main expenses)? 16. Description Rate All items usage per day Total Profit Margin Telephone Calls 3 / unit 400 1200 400 Email & Internet Access Computer Use (Films, Songs etc.) Printing Scanning Word Processing Photocopying Fax Communication 17. What type of people visit at your center (Rank 1 – 6)? Men 3 Labor 1 Farmer 2 Shopkeeper Women 2 Labor 1 Farmer 3 House Wives 18. What are 3 age group that use facility (Rank 1 – 3)? 19. What is the source of initial funding? 6 Students 4 Students 3 < 18 Self 5 Govt. Servant 4 Visitors 5 Govt. Servant 6 Visitors 2 18 -30 1 Loan 30 to above Partnership 20. Could this business run on the other location? Raja Ram is the best location for PCO's and Internet Cafés. 21. Summary Status & Analysis: Raja Ram is an agricultural town of Tehsil Shujaabd, District Multan. It is 7 km from the Shujaabd and 45 Km from Multan. There is a Railway Junction in Raja Ram. Its population is more than 50,000. PCO’s successful ratio is 40 % and their profit margin is 33 %. There are no College, Computer Institute and Net Cafés but there is great demand for new technology. Telecenters business will have a considerable success rate here. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 53 of 279 Telecenters in Pakistan Volume 1 Part 5 International Experiences Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 54 of 279 Telecenters in Pakistan International Experiences Overview An overview of the Tele-center dynamics: Tele-centers are one of the most rapidly growing applications of ICTs in the developing world. Their rationale lies in shared-access models that allow provision of a wide range of services to more users at lower cost than privately-owned home or office computers which are often out of financial reach of poor people. The definition of a Tele-center is as varied as the activities that such a center can offer. Smaller Tele-centers usually include basic Internet service, and may also include access to fax, phone, and photocopying. Others may include targeted activities in education and training, health, e-commerce, e-government services and more. The physical composition of Tele-centers also varies widely. Common models include kiosks, school computer labs made available to the public after hours, multipurpose community Tele-centers, and mobile Tele-centers. Regardless of the different configurations, Telecenters all have one common feature: they use IT to provide a range of services using a shared access model. In order to establish a direction, information from international efforts 10 is relevant to analyze the background and model the Pakistan initiative after the more successful ones. This would ensure a degree of sustainability which is the most important feature in setting up and operating Tele-centers. International Tele-center Initiatives by Sector 10 Digital Dividend Clearinghouse Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 55 of 279 Telecenters in Pakistan Tele-center Activities Tele-centers use information technology to offer a variety of different activities. Computer training remains the most popular, with half of all Tele-centers offering some sort of formal training program. Education (19%), egovernance activities (12%), and programs aimed at youth (12%) round out the most common offerings. Percent of Telecenters Initiative that offer a specific Activity Only 3% of Tele-centers offer activities involving Internet-enabled radio, they account for nearly a third of all ICT-enabled radio activities. More than a third of all agriculture applications and computer training is conducted through Tele-centers. Financial and business services, too, are also frequently implemented through Tele-centers, even though a small overall percentage (2% and 5 % respectively) actually offers them. All Tele-centers are Not Created Equal The activities of a Tele-center vary widely depending on which type of managing organization (for-profit, non-profit, or government) is setting the Tele-center up. The graph below shows a breakdown of activities based on sector. Tele-center Initiative Activities by Sector Government Tele-centers, predictably, primarily offer egovernance services. While a small number do offer computer training, education, and activities related to agriculture, youth, and the empowerment of women, they typically lag behind the other two sectors. Several activities, primarily the financial ones, are not offered at all. Agricultural activities are found most often in for-profit Tele-centers, Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 56 of 279 Telecenters in Pakistan perhaps reflecting a willingness to pay for agricultural inputs such as accurate crop prices, weather reports, and Crop diagnostic services. Other activities that are found almost exclusively in for-profit centers include business development, ecommerce, and financial services. Healthcare services are rarely offered in these Tele-centers, an indication that fee-based health applications market may be still developing. Non-profit Tele-centers offer the vast majority of computer training, education, and youth-based activities. Healthcare and radio applications are also almost solely offered in these centers. Like government-run Tele-centers, business-focused services are rarely included in services offered. Community Tele-centers Community Tele-centers use ICTs to support a variety of different activities central to community life. Their purpose it to provide information-based services that leads to sustainable developmental results within the communities they serve. The specific activities that are offered depend on the organization operating the Telecenter, as well as the local demand for certain specific services. In the search for sustainability, community Tele-centers benefit from their ability to add new services as the needs of the community change. International Experiences The Internet is a rich resource for information about international experiences. In this report a lot of directions and guidelines have been built in by examining the lessons learnt from International experiences. The lesson is that the focus must be on the end users, those people for whom these Telecenters are being implemented. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 57 of 279 Telecenters in Pakistan Examples of Telecenters in similar economies: This document gives an overview of the Telecenter initiatives in the following countries. • Sri Lanka • Senegal • Kenya • Ghana • Uganda • South Africa • Egypt • Mozambique • India • Bangladesh • Hungary Sri Lanka: The Nenasala Project is one of the projects implemented under the e-Sri Lanka Initiative. Formally known as the “Vishva Gnana Kendra Project (Nenasala)”, ICTA has incorporated it under the “Nenasala” label to introduce several models of the Telecenters or knowledge centers to be established in all parts of Sri-Lanka to spread ICT services to the rural and semi-urban population. The Project will aim to meet the infrastructure requirements in order to address the information and communication needs of rural areas in all parts of the country through the establishment of Nenasalas, and the provision of ICT based services. As the diffusion and the use of ICTs in rural areas are limited, it is recognized that the most effective and efficient way to provide access to ICTs for rural areas will be through the establishment of Nenasalas. The main objectives of a Nenasala are to assist communities in: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 58 of 279 Telecenters in Pakistan • Poverty reduction • Social and economic development, and • Peace building. Services offered: It is important to note that all the services and support to be provided by the Nenasalas are done in such a way as to aim/guarantee long-term sustainability. The lessons learned from the evaluation of the initial Nenasalas will be used in the establishment of the Nenasala Network across the country using the following models. ICTA will have 3 main different types of Nenasalas or Knowledge Centers depending on the complexity and the type of services that will be offered. Namely, 1. Rural Knowledge Centers, 2. E-Libraries, 3. Distance & e-Learning centres 4. Tsunami camp computer kiosks. The main activities that will be implemented under the Nenasala Project include the following: a) Selection of Nenasala locations b) Survey of existing Telecenters c) Identification of viable Nenasala models d) Identification of Nenasala Support Institutions (NenasalaSI) e) Preparation of training materials f) Selection of facilitators g) Training of facilitators h) Demand analysis (ICT based services), and i) Village awareness meetings j) Design and implementation of a voucher pilot scheme k) Procurement of necessary equipment Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 59 of 279 Telecenters in Pakistan l) Pre-bidders meetings m) Selection of Nenasala operators n) Training of Nenasala operators o) Launch of Nenasalas11 In discussions with the people involved in this initiative, the feedback is that even though these are useful entities but the long term sustainability is suspect once the donor agencies stop funding the operating expenses. The primary issue is always connectivity. In some locations, a VSAT operator is providing the connectivity and is able to supplement his income by commercial operations in these remote areas. The rest have issues. Senegal:12 Telecenter Experience: Senegal is the African country with the largest number of Telecenters – nearly 9,000. They have been supported by Sonatel, the national telephone company, which have used these ‘Telecenters prives’ in the place of payphones. In 1992, Sonatel launched the first 4 pilot Telecenters in Dakar. Other companies were invited to apply to operate a centre under license of Sonatel. The conditions include a subscription fee per line (US$40), deposit per line (US$100), a clean site at least 16 metres, official commercial registration of the business with the Ministry of Finance, and an agreement to support illiterate and disabled customers. The number of Telecenters has grown steadily since 1992. There are 8,981 Telecenters, 5600 (62%) in Dakar. A third of the Telecenters are in rural areas. In total, the Telecenters make up 7.5% of the total main lines of Sonatel. Over 20% of the Telecenter owners are women. Services offered: Telephony is overwhelmingly the main service. However, other services are offered. Below are the percentages of services offered at the Telecenters: 11 12 Establishment of Nenasalas By Peter Benjamin http://www.isoc.org/oti/articles/1100/benjamin.html Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 60 of 279 Telecenters in Pakistan Telephony Fax Photocopies Media Minitel Secretariat Internet 56% 17% 13% 5% 4% 4% 1% Primary Users: Some analysis of the users and usage of the centres has been made. Men and women use the centres in roughly equal numbers, though slightly more women use the centres in the cities, with slightly more men in rural areas. In summary, the Senegalese Telecenters have performed very well as sustainable small businesses in an environment of support with clear conditions from the telephone company Sonatel. There is fierce competition (especially in Dakar), and market demand is encouraging the introduction of other services slowly, such as Internet. The owners of the Telecenters have made a financial stake in the Telecenter, and so have a clear commitment to its success. This model certainly would not have been so successful if there had been a programme of unstaffed payphones, but Sonatel made the decision to support these Telecenters as small businesses. Kenya:13 Telecenter Experience: A different private-sector model comes from Africa Online, an Internet company that has set up 261 E-Touch centers in Kenya—mostly in Nairobi. Africa Online is an Internet Service Provider (ISP) with its headquarters in Nairobi that operates regionally. The rationale behind the setting up of the E-touch centers is to facilitate community access to information through shared resources. This has made possible for people who have no computers or communications facilities considering the state of the telecommunication industry to have access to the Internet. 13 By Peter Benjamin http://www.isoc.org/oti/articles/1100/benjamin.html Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 61 of 279 Telecenters in Pakistan E-touch centers operate on partnership basis whereby Africa Online looks for established organization in the cities all over the countries and give them a sub domain where they are able to create accounts for their customer. They are commercially run bureaux. Services offered: Of the 261, about 130 are based in Nairobi and its surroundings while the others are widely distributed all over the city. In the E-touch centers a variety of services are offered such as Email, Internet, and Fax, photocopying, printing and telecommunication services. In the E-touch centers, free email addresses are given. For instance if the partner local company is called freelance, a sum domain called *@freelanceafricaonline.co.ke is given through which users are created for email. Charges: To send an email, it costs ksh 50 and to receive an email it cost Ksh 10. This works out at about US$ 0.41 (41cts) - US$ 00.69 (69cts) per piece of mail. This is regardless of the size of the email. To surf the web, it cost Ksh 7 per minute. These charges are independent of the location. (Exchange rate is Ksh 74.3 per US$). Primary Users: At the moment, there are about 30,000 e-touch users’ accounts in the country 10,000 of which are active users. (On average they use e-touch at least once in a day). Challenges faced: The idea of E-touch is just picking up and Internet is still not well marketed in Kenya especially outside Nairobi. Most of the ISPs are located in Nairobi and so are most of the clients. A lot of work is needed to sensitize people in the rural areas about this technology. But generally the e-touch concept is really catching up especially in the western region of Kenya. Many people who have no access to computers on daily basis are benefiting from the e-touch though the cost is still relatively high for an average Kenyan. Browsing particularly is too expensive for most Kenyans - 3 hrs of browsing is the average monthly income for most rural Kenyans. This leaves the services for a few young, educated urban elite. Rural bureaux are few and far between and those that are there cater to tourists who need to keep in touch with home. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 62 of 279 Telecenters in Pakistan Ghana:14 Telecenter Experience: As well as the E-touch centres in Kenya, African Online also was active in Ghana. The project was called “Email for everyone” and was launched in 1997 and worked through “Communication Centres” that had blossomed as phone shops (similar to the Senegalese Telecenters Prives). Services offered: These Communication centres were small shops owned by small-scale entrepreneurs opened exclusively to provide phone booth services. Some of the Communication Centres also provided some basic secretarial services including fax, word processing, photocopying – and in some more sophisticated ones - binding and document desktop publishing. Most of them could provide international direct dial to cater for users who had phones at home but who could not afford the deposits required to have direct dial service on home or office phones. The Centres also acted as the call in centre for people to receive their calls at fee as well. Africa Online Ghana, which had entered the market as an ISP came out with a product called Free Email for everybody with a target of around 50,000 within a year. 1. They provided participating Communication Centres with fully equipped computers with modems and printers, to enable access in a short period. 2. The participating centres were turned into nodes on the Africa Online system. For example, Yankah Communications Center became yancc.africaonline.com.gh 3. Each communication centre could register its own clients hence Eric Yankah became ericyank@yancc.africaonline.com.gh. Challenges faced: Unfortunately, after much initial enthusiasm, most of the Centres closed down. There were various reasons for this: 1. The use of the nodal email addresses meant that for those without a means of ‘popping’ their accounts from elsewhere, always had to go to their registered email service centre to use services. 14 By Peter Benjamin http://www.isoc.org/oti/articles/1100/benjamin.html Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 63 of 279 Telecenters in Pakistan 2. The telephone line quality and signal reliability in certain areas meant that clients sometimes went home disappointed since they could simply not get access. 3. The "emergence" of true free email services (free of hardware, software etc) such as hotmail.com, yahoo.com, netscape.net, wowmail.com completely transformed the faithful clients into friendly enemies. Businesses therefore lost their regular clients and some of them (particularly those in poor telecom areas, bad locations and inconvenient hours) could not keep up with payments for the email/internet account as well as the amortisation of cost of the computers supplied for the purpose etc 4. Computer literacy was very low, and therefore the growth of the market was slow – almost each new user had to be trained. In this way this was ‘Greenfield activity’ – each new user had to be won and invested in. Africa Online also went into a joint venture with the post office to provide email services. The email accounts were free to users, and in 3 months 30,000 Ghanaians signed up. Again, after the initial enthusiasm, the active user’s number has declined, but it still is providing an effective service to many, mainly in the cities. In recent times, the telecom capacity has also blossomed with hundreds of new phone booths spread out in the major cities. Communications Centres have also increased, particularly for international calls, call receiving and for those who do not have phone cards (all phone booths in Ghana use pre-paid cards). Uganda:15 Telecenter Experience: A national School Based Telecenter (SBT) project was formally started in Uganda in September 2001 with a revised week-long training program. The network, established by World Links through support from the Bill and Melinda Gates Foundation, involves fifteen SBTs. Of these, eleven use Very Small Aperture Terminal (VSAT) satellite technology to link to the Internet with at least eight computers on a Local Area Network (LAN). These sites are geographically well distributed around the country in the districts of Jinja, Iganga, Mbale, Soroti, Lira, Arua, Moroto, Hoima, Kabale, Masaka and Luwero. The four other school sites will be connected via spread spectrum technology off the VSAT hub from the school in Jinja. The bandwidth (256 Kbps “download”/32 Kbps “upload”) on the VSAT is shared among the participating sites and the cost is accordingly shared among the schools with a payment of US $200 per month. (World Links is contributing the other US$200 per month per site for a two-year period). 15 http://www.wougnet.org/Events/IARW/SchoolBasedTelecenter_MMayanja.pdf Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 64 of 279 Telecenters in Pakistan Services offered and primary users: Lowering the “student” user cost is one of the principal objectives for establishing a schoolbased Telecenter. These sites will traditionally provide computer and Internet-oriented training and services rather than the basic telephony or other client facilities (e.g., photocopying, fax) featured at most MCTs. Generally, the computer- and Internet-based services vary depending on the needs and sophistication of the community. All these Telecenters train students and teachers in the use of the computers and Internet supported facilities as tools for learning and teaching. Lango College Telecenter in Lira District and Kigezi High Telecenter in Kabale also receive a number of community users for Internet supported services. At Duhaga Telecenter of Hoima District, the user records for the last month indicate that there are clients from the community who have used the Internet to search on health, farming and business issues (e.g., rice prices; the area is known for upland rice growing). Ndejje Secondary Telecenter in Luwero district provides access to community institutions. For example, Ndejje University is one of the principal users. Without a computer lab or Internet access of its own, the university students and lecturers access Internet related services and research at Ndejje Secondary Telecenter. Charges: The schools raise funds from charging students termly tuition fees and other community user fees. On average, each student pays US $18 per year. A typical secondary school has between 800 and 1000 students around the year. South Africa:16 Telecenter Experience: This chapter reviews the role that shared access centers have played in universal access within South Africa, with a specific focus on the policy intent driving universal access. It focuses on the experiences of two communities. One is a small rural settlement in Kwa Zulu Natal, north-east of Durban; the other a large township in the Western Cape, south-east of Cape Town, on the same peninsula. South Africa's experience took a leadership position in Africa, with top-level political commitment to universal access to ICTs. This engagement was driven by the need to redress the legacy of apartheid, and by a strong belief that communication and broad access to information were keys to democracy and development. Moreover, South Africa's government had relatively more money and human capacity than its neighbours to address the task. 16 http://www.idrc.ca/en/ev-88204-201-1-DO_TOPIC.html Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 65 of 279 Telecenters in Pakistan Bhamshela: It is a densely populated rural community and trading centre, less than two hours drive from Durban. Until 1998, when a Telecenter was established, there were few telephones. Services offered: While it offered a full range of services, including computer and Internet rental, only telephone and, to a lesser degree, photocopying services were used. This was partially due to the lack of expertise of the staff in using these, and partially to lack of awareness and demand on the part of potential clients. Challenges faced: The Telecenter ceased phone, fax and Internet services in 2000 after experiencing problems with the telephone company, resulting in a large bill it could not pay, exacerbated by problems with its phone metering system. Local demand for phone services persisted, though, and a Vodacom shop and Telkom container were opened the following year, the latter by a former staff member of the Telecenter. Meanwhile, the Telecenter further developed its staff's expertise in computers and began to offer basic training courses. There was demand for such courses due to the high priority many people placed on finding employment and the perceived importance of computer skills in formal-sector jobs. Many students defaulted on their tuition payments because they could not afford them. A few found jobs. Khayelitsha: It is a fast growing, densely populated, predominantly Xhosa Township with a population of about one million people. Despite its large population, it sustains only limited economic activity, with most residents shopping and working elsewhere. Both public phones and private cell phones are widely available and phones are used by over 90 per cent of the population. However, the use of other ICTs remains quite limited, mainly due to cost and lack of capacity. The market in Khayelitsha sustains many phone shops initiated in part due to the license obligations of the major operators, plus some independent phone shops. It also has at least one large computer training centre and a couple of other businesses that offer non-phone ICT services in addition to their core business (a phone shop and a driving school respectively). Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 66 of 279 Telecenters in Pakistan Services offered: These include value-added services such as typing CVs, letters and funeral programmes. The non-profit sector in Khayelitsha offers a similar range of ICTs. In addition, one library offers Internet access. Although some entities have tried to do so, public Internet provision cannot be sustained via the market due to the large gap between the cost of providing it and people's ability (and willingness) to pay. Challenges faced: There need to be cheaper ways to offer Internet access. The high prices can be attributed largely to Telkom's monopoly in effect at the time of research. Given the experiences at the library, market prices would have to be substantially lower before people would use Internet services. This implies that even in a fair and competitive market, many people would not consider the Internet an affordable and justifiable expense if they must pay by the minute or hour. Egypt:17 Telecenter Experience: During the past two decades Egypt has been striving to enhance its information and communication infrastructures. Universal access to telephony, to the Internet, and to other information services has become of increasing importance in order to support and empower socio-economic development. In October 1999, a new Ministry for Communications and Information Technology (MCIT) was established. The mandate of MCIT is to support and empower the information society in Egypt. This is reflected in the 24 national projects proposed by ministry shortly after its creation. Challenges faced: Among the challenges that the information society in Egypt faces are: 17 • Limited public access to information and communications technologies (ICTs), including access to computers, access to software, access to the Internet, and access to professional training and technical support. • Language barrier, due to the limited knowledge of foreign languages among the population. (Arabic is the sole national language). • Lack of local information content, especially in critical sectors including: commerce, trade, industry, small and medium size enterprises (SME), healthcare, education, tourism, culture, public services, environment, and agriculture. • Scarcity of technical skills and qualified professionals. By Sherif Hashem http://ip.cals.cornell.edu/commdev/documents/jdc-hashem.doc Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 67 of 279 Telecenters in Pakistan Among MCIT’s national projects, two projects call for the establishment of MCTs targeting the youth and the professionals, namely the Technology Clubs and the Community Telecenters Projects (respectively). In addition, there are other forms of MCTs in Egypt: TACCs, 21st Century Kids’ Clubs (or simply Kids’ Clubs), Information and Decision Support Centers and Units (IDSCs). In the following sections, we provide a brief overview of these different types of MCTs. TACCs: In 1998, a United Nations Development Program (UNDP) pilot project supported by the Egyptian Government established three TACCs. A TACC offers a unique delivery mechanism of ICTs, which can empower local communities in developing countries. Services offered: The key services of the TACCs are: • Providing affordable public access to information services to empower community socio-economic development. The TACCs are open to the general public, and have specialized programs that target the needs of the local communities, including professionals, minority groups, women, children, students, etc. Internet services are provided on a walk-in basis as well as dial-up. • Providing professional technical and technological support to professional users from various sectors, including: traders, physicians, engineers, teachers, professors, merchants, agricultural producers, industry people, SMEs, environmentalists, and healthcare professionals. This support starts with basic introduction and awareness of where and how ICT can help them in their line of business. • Then, based on community needs assessment, the TACC organizes specialized training courses, seminars, workshops, and roadshows. Finally, the support can be leveraged up to the level of assisting professionals in reorganizing, reengineering, and managing their businesses to maximize their benefit for ICT. This feature is unique to the TACC and is seen to be crucial if we wish to have a strong impact on development of the local communities. • Supporting and empowering the creation of local information content in various sectors, especially multilingual (Arabic/English/other languages) information content. This is needed to facilitate local and regional information exchange, and to encourage and promote the use of ICTs. 21st Century Kids’ Clubs These kids’ clubs are part of a national children’s Telecenter project in Egypt entitled the 21st Century Kids’ Clubs. The 21st Century Kids’ Clubs project is managed by an NGO, The Integrated Care Society (ICS), whose chairperson is H.E. Mrs. Susan Mubarak, the First Lady. These Clubs are being established in an effort to build the information society, to reduce the gap between the have’s and the have-nots, and also to be an avenue for kids to work with their peer groups around the world in cyberspace. The initiative began in 1997, and is supported by the Ministry of Communications and Information Technology (MCIT), Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 68 of 279 Telecenters in Pakistan Egyptian Cabinet Information and Decision Support Center (IDSC), the Regional Information Technology and Software Engineering Center (RITSEC), The Internet Society of Egypt (ISE), and by many private sector contributors. National Telecenter Projects: Based on the national communications and information technology plan, MCIT planned to establish over 300 new Technology Clubs and Community Telecenters by the end of December 2001, and about 200 such Telecenters per year for three years, including up to 60 specialized Telecenters for professionals in various sectors, which include: commerce, manufacturing, healthcare, etc. Services offered: MCIT provides the Telecenters with support in the form of: PCs, printers, software, and Internet connectivity (through private ISPs). In return, the Telecenters make a commitment to provide their services to the local communities at affordable rates. They also provide a variety of specialized training courses, and assist communities in developing their own local information content. Mozambique:18 Telecenter Experience: The IDRC was launching its Acacia Programme and agreed to fund a feasibility study to verify the viability and acceptability of the Telecenter concept in Mozambique and propose a pilot project. This study was led by CIUEM and carried out by a multi-disciplinary team from the university and the national telecom company (TDM). The government granted full support for the project. It was decided that the pilot project should aim for an impact on local development and try to reconcile the need for sustainability with the need to serve the poor. It was decided to conduct the pilot project in rural areas where the technical conditions and potential uses offered better chances of success. The two district capitals, Namaacha and Manhiça, were chosen as the most appropriate sites. They already had at least two public phones provided by TDM, and several privatelyoperated booths, so the primary job here was not simply to introduce telephony but to bring access to computers, e-mail and so on, and test them in these particular contexts. 18 Information taken from Case Study written for the Commonwealth of Learning by Polly Gaster, Eduardo Mondlane University Informatics Center, Maputo http://info.worldbank.org/etools/docs/library/91628/telecentres/telecentres/workshop/sbtpdf/ca sestudies/MozambiqueCaseStudy.pdf#search=%22Telecenters%20in%20Mozambique%22 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 69 of 279 Telecenters in Pakistan The Namaacha Telecenter is based in a former workshop within the precinct of the secondary school, to which it pays rent and with which it has developed a special relationship. It comprises one large room, about 10m x 12m. The Manhiça Telecenter is located on the town's main street, in an outbuilding, previously a storage space, between a café, to which it pays rent, and a church. Again, given the small scale of the project, it was considered better to house all of the services in one work area where the staff could keep an eye on things. Technology: Each Telecenter is equipped with four computers, one for the management, which has greater capacity and could be used as a server, and three for public use. These are connected in a local network to an Internet hub, modem and dedicated phone line for e-mail and Internet access, and to an inkjet and laser printer. Each computer has a UPS and surge protector, and an AVS system is also installed by the fuse box. The electricity system is earthed and there is a lightning conductor. Reasons for choosing these sites for Telecenters: The Namaacha and Manhiça districts, where the two pilot Telecenter projects are based, are similar in size and within easy reach of the capital city, Maputo, about 75km away by good highways. They are however, quite different in their population sizes and economic bases. Lying to the south, the Namaacha district covers 2,144 sq km and according to the 1997 Population and Housing Census, has a population of 31,259, just under one-third of which is in urban areas. Its main economic activities are small-scale cross-border trading, farming and tourism and its only industries, a mineral water bottling factory and sawmill, both privately owned. There are a number of educational institutions in Namaacha town and the town looks deceptively wealthy with solid houses dating from colonial days lining its main street and dotting the surrounding hillsides, but these are far from the norm. Manhiça, located on the main road north, is a more typical small African town, with bustle and movement quite alien to Namaacha. The Manhiça district covers 2,380 sq km, has a population of 129,476, and an urban population of around 22,000. Its main economic activities are farming, livestock and agro-industry, two sugar plantations, rice husking factory, a flourmill, and catering for travelers and migrant miners. Manhiça has significantly larger numbers of people in the higher income bands, particularly in the band of 3,000 contos plus a month (about US$185 in 2000). One reason for choosing Manhiça as a pilot site was that in 1998 it was due to become one of the first towns in Mozambique to elect its own mayor and assembly as part of a decentralization programme. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 70 of 279 Telecenters in Pakistan Services Offered: The Telecenters provide access to computers for word processing, games, CD-ROM usage, e-mail and Internet, etc. However, the most popular services to date are the public phones, fax, photocopying and binding, library, TV and video. Challenges faced: Computer training courses were launched at the end of 1999, with the support of the CIUEM Training Department, and these are much in demand. Unfortunately, when these courses are running, there are no computers available for general access. However, the strategy is to train intensively, to build up a group of committed users, and re-organize the timetables to allow more general access towards the end of 2000. Courses are provided for the public in Windows, Word, Excel and e-mail/Internet, and web design courses are planned for. In providing computer training, Namaacha has had greater difficulties than Manhiça, because its staff has less computer experience, but it has worked hard to catch up. India: Two initiatives from India point to mechanisms for sustainable rural Telecenters that involve the private sector -- in one case from the delivery of high quality agriculture information services as a business, and in the other, from franchising the delivery of government services to local investors. Building in mechanisms from the outset for sustainability in Telecenter initiatives makes sustainability easier to attain, but does this lead to the strengthening of existing elites? Will the poorest of the poor still be able to benefit? We still need more evidence, but these cases offer useful starting points. Case 1: Samaikya Agritech P. Ltd started operations in June 2000. Samaikya means “coming together for a good cause” in Telugu, the language of Andhra Pradesh. The company operates 18 “Agritech Centres” in five districts in Andhra Pradesh. The centres provide agricultural support services to farmers on a commercial basis. Samaikya’s Agritech Centres are permanently manned by qualified agricultural graduates called Agricultural Technical Officers (ATO) and are equipped with computers linked to the head office in Hyderabad through a modem-tomodem telephone connection. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 71 of 279 Telecenters in Pakistan Services offered: Through these centres Samaikya provides: technical assistance to member farmers, including inputs such as seeds, fertilizers, and pesticides; machinery hire; tools and spares for sale; soil and water analyses; field mapping; weekly field inspections; field visits by specialists; and weather monitoring. The centre in the village of Choutkur has 53 registered farmers covering 110 acres of registered land. This is out of a total of around 1,000 farmers within the centre’s catchment area. Major crops include sugar cane, padi, and pulses. Registered farmers receive technical information in support of their farming activities. Case 2: Keltron is the Kerala State Electronics Development Corporation Ltd. It operates the Keltron Information Kiosks (KIKs), which are being implemented throughout the state. Keltron is wholly owned by the Kerala state government, but operates as separate company. Keltron is developing information kiosks (Telecenters) for public access to the Internet. There are currently three kiosks in Thiruvananthapuram, and two more are being implemented in rural districts, which are expected to open in March 2003. The village panchyats (local councils) will operate these two new centres. In addition, five village panchyats have applied formally to operate kiosks, and all the panchayats in one district of Kottayam have expressed interest in applying. Charges: The centre provides public Internet access to around 50 people daily, charges Rs.25 per hour and has daily revenues around Rs.1, 400. Services offered: Trained staff is on hand to provide assistance. In addition to public Internet use, the kiosk is implementing a series of government information systems for: agriculture support, covering crops and pests; census data, with summaries and the official list of people below the poverty line; the electoral role; a grievance reporting and tracking system with facilities for email to ministers; and industry information on a variety of licensing, regulatory, and support schemes.19 19 Published on February 06, 2003, by Roger Harris and edited by Pat Daly. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 72 of 279 Telecenters in Pakistan In India, ‘Saksham’ (A public private initiative Microsoft launched- which will additionally develop a rural portal powered with content and applications aimed specifically for the rural segment by working with regional and local ISVs to accelerate the adoption of these services) has been developed in close consultation with industry partners and imbibes the principles of public-private partnership to create a sustainable economic model and a strong rural IT ecosystem. ‘Saksham’ will not only provide local entrepreneurs with the opportunity to set up and manage these kiosks for content and services, but also provide the local ISV (Independent Software Vendor) community with the opportunity to develop rural content and applications. The rural portal which is under development currently, will bring all of these services together in a comprehensive manner at the front end, and provide a seamless experience to the end user. In line with the needs of the rural communities, the kiosks will offer a range of relevant content and services such as: • Government to citizen services: land records and birth & death certificates. • Health services: direct referrals to hospitals, online appointment requests, online Consultation requests. • Agriculture services: vet consultancy services, agri-newspaper, and online consultation. • Commercial services: insurance, digital photography, astrology, matrimonial services. • Communication services: chat, online telephony & e-mail. • Entertainment content & services: web browsing, games, music & movies. • Desktop publishing: typing, printing and designing. • Education content and services: computer education, language literacy. Microsoft is also in talks with banking institutions including State Bank of India, which is currently running a pilot with Microsoft and IIIT Bangalore in the state of Karnataka, to provide credit options to entrepreneurs. 20 E-Seva is run by the West-Godavari District Administration in Andhra Pradesh State, India, which has established Web-enabled rural 'e-Seva Centres' run by self-help Groups of women from the poorest segments of society. The aim is to help them achieve Economic independence. It is also an attempt to replace the traditional form of Governance and its accompanying deficiencies with a modern, more open, transparent and responsive service delivery system. http://topics.developmentgateway.org/ict/sdm/previewDocument.do~activeDocumentId=442648 20 Microsoft Corporation India Pvt. Ltd PR – 562 1/2/2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 73 of 279 Telecenters in Pakistan Infrastructure: ƒ ƒ ƒ ƒ ƒ ƒ ƒ Computers Printers Scanners Digital Cameras Xerox Machine Dial-Up connection in villages Leased Line Connections in Towns Services: Payment of utility bills Certificates Labor Department Permits/Licenses Information Reservation ƒ Internet services ƒ ƒ ƒ ƒ ƒ ƒ Issues: 1. Many villagers have little or no literacy so fear being cheated when making payments online. 2. Discomfort of government officers when they see work they were previously doing now being handled by women who are less educated and less trained than them. Also many government officers were collecting bribes to issue land records, death and birth certificates, etc. The villagers felt their power was almost godlike, given that they were able to approve or withhold electricity, agricultural loans and so on. Now these government officers fear losing all this power and money. 3. The provision of an uninterrupted power supply and computer networking are challenging infrastructural issues for remote villages.21 Bangladesh:22 Telecenter Experience: Recognizing that schools and their communities are intrinsically interdependent, RI-SOL, a US-based international NGO, began launching school community dual use Telecenters in Bangladesh in 2003. Over the last two and half years, this approach is found to be viable in 21 22 E-Seva, India; background and history By Nazrul Islam and Jack Welch, RI-SOL, Bangladesh http://www.digitallearning.in/marmag06/generations.asp Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 74 of 279 Telecenters in Pakistan terms of educational, societal and sustainability goals. As the pilot phase now winds down, the project encompasses thirty Telecenters, involves eighty schools and reaches almost one hundred thousand students and community members. This project represents the third generation of RISOL’s educational Telecenter concept, the Internet Learning Center (ILC). Not long after the introduction of the worldwide web, its value as an educational tool was recognized by industry leaders in Silicon Valley; in 1996, they created a not-forprofit organization: Schools Online (SOL). SOL promoted the use of computers in classrooms and the integration of technology into all aspects of teaching and learning. The concept spread quickly, buoyed by the rampant optimism of the time for any project involving technology and the Internet. The dot com crash was a harsh blow to these and similar projects, and forced SOL to reevaluate its strategy. ILC is a multi-use classroom rather than a Telecenter that is used for classes – the distinction is important. The primary use of the room, both for the school and its community, is learning. The ILC belongs to the school and is run by the school, it is not an autonomous enterprise appended to the school. The expertise and authority for running the center lies in the school itself rather than hired specialists. The role of RI-SOL is to support the educational mission of each school through expertise in technology and education. RI-SOL solicits schools competitively in areas where it thinks it can make the biggest educational impact. Typically, this excludes elite institutions and focuses on schools that have minimal or no access to computer technology. Each school is then asked to nominate a teacher as a “technical lead teacher”, or TLT. The TLT becomes the caretaker of the ILC, taking on both a management and operational role. Since IT is part of the Class 9 and 10 curricula in Bangladesh, many schools already have computer science teachers – even if the school does not have computers. Although these teachers already receive a salary for their teaching assignments, it is common practice in Bangladesh to supplement official income through private tutoring. Since the TLT takes on responsibilities that require a full-time commitment, RI-SOL supplement the teacher’s salary with a small stipend for a limited period to offset this loss in tutorial income. The school, RI-SOL and the teacher sign a three-way agreement, committing the school to continue this stipend after a certain date. The timing of this switchover depends on a customized sustainability plan created by the school and RI-SOL. Schools must factor this stipend into the sustainability plan, offsetting it through income generating activities. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 75 of 279 Telecenters in Pakistan Training: Majority of computer teachers in Bangladesh lack practical experience with computers and require training to perform the technical aspects of the position. Consequently, a localized technical instruction curriculum has been developed for these teachers to improve their technical proficiency. Of course, there is a side benefit as well: they become better computer teachers. During this training, teachers are introduced to the program’s educational goals and methods by example. They sit where their students will sit, and the training itself employs group-based and participatory methodologies promoted by the project. The predominant teaching modality in Bangladesh is didactic and authoritative, relying heavily on rote memorization and pattern replication. RI-SOL supplements that strategy with methods designed to encourage creativity and analytic thought. During the week of training, teachers also receive instruction on preparation of lesson plans and how to build projects around available computer resources. Single training sessions, even very intensive ones like this one, will have limited long term impact unless some reinforcement is available. Likewise, a couple days of technical training are not enough to cover all the operational and technical aspects of running a Telecenter. Hungary:23 The first telecottage in Hungary was established in 1994 in the village library of Nagymágocs. It was organized as one of the services of the library and was called the telecorner. However, it only lasted for approximately three months. Later the same year, another telecottage was created in the village of Csákberény. This telecottage proved to be more permanent. It still operates today and offers a broad range of services, e.g. tele-training and tele-work. The telecottage at Csákberény was established by local inhabitants as a community centre in order for people to get access to information, support 23 Telecenters: Case studies and key issues, by Colin Latchem and David Walker Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 76 of 279 Telecenters in Pakistan and training via electronic communication means. It was not the result of any external initiative. However, the telecottage initiative gained support from the Ministry of Welfare. Services offered: ƒ Agricultural information service ƒ Almanacs, catalogues, encyclopedias ƒ Second hand book store ƒ Coffee, tea ƒ Blood pressure measurement ƒ Local advertising and information services ƒ Public Internet access ƒ Local stationary exhibition ƒ Public information service ƒ Office services (office space, fax, computer, copy, etc.) Access: The centres are open for 41 to 48 hours per week and the vast majority of the centres also open at other times on demand. Technology: Provision varies from centre to centre, but according to 1999 data, centres tended to have five to seven computers, three to four CD drives, one color printer and one black and white printer, one to two phone lines, a fax and a photocopier. Most also had modems for Internet access. Roughly 40% of the centres had scanners, TVs, VCRs and 27% had video cameras. Only 13% of the centres had ISDN access, but this was expected to rise to 35%. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 77 of 279 Telecenters in Pakistan Volume 1 Part 6 The country and its Telecommunications Infrastructure Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 78 of 279 Telecenters in Pakistan Pakistan Economy Overview: Pakistan, a developing, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by generous foreign assistance and renewed access to global markets since 2001, have generated solid macroeconomic recovery the last four years. The government has made substantial macroeconomic reforms since 2000, slowed. For example, in the budget for fiscal year 2006, Islamabad did not impose taxes on the agriculture or real estate sectors, despite Pakistan's chronically low tax-to-GDP ratio. While long-term prospects remain uncertain, given Pakistan's low level of development, mediumterm prospects for job creation and poverty reduction are the best in more than a decade. Islamabad has raised development spending from about 2% of GDP in the 1990s to 4% in 2003, a necessary step towards reversing the broad underdevelopment of its social sector. GDP growth, spurred by double-digit gains in industrial production over the past year, has become less dependent on agriculture, and remained above 7% in 2004 and 2005. Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005. Foreign exchange reserves continued to reach new levels in 2005, supported by steady Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 79 of 279 Telecenters in Pakistan worker remittances. In the near term, growth probably cannot be sustained at the 7% level; however, massive international aid, increased government spending, lower taxes, and pays In the context of paper success in of the type of Telecenters serving the demographic in different parts of Pakistan 24 can only be achieved by ensuring that the country’s specific cultural and socio economic requirements are fully understood so that the services offered provide comprehensive relevance to all aspects of their needs. The mode on which the services are to be offered must also match these skills and social norms of the community and keep in line with the rural culture which varies from are to area based on the physical environment. Therefore, for Pakistan it is important to understand that the end users of this activity are the destitute, marginalized citizen who populates the rural areas of Pakistan. The demographic data of Pakistan indicates as one would expect that the people have inhabited areas close to natural & man made water resources, since this is the natural area that will be where they find employment and livelihood in the agriculture. It is a Figure1: Population across well known fact in all of the Water resources developing countries that the number one source of income for the poor is obtained from the agriculture industry. This is an important factor to keep in consideration when designing the services that are to be deployed in tele centers that will be established to support these countries. Unfortunately, the creation of one simple recipe for a successful formula to create a self sustaining Telecenters will not work for Pakistan due to the complex cultural & ethnic diversities of the country. This is exacerbated by the strong feudal system thriving in Pakistan has taken full advantage of this weakness. Figure2: Neighboring Countries 24 Road map for sustainable model for Telecenters in Pakistan; www.e-wwg.com Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 80 of 279 Telecenters in Pakistan Key statistics Geography25: Location Southern Asia bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China in the north. Geographic Coordinates 30 00 N, 70 00 E Area Total: 803,940 sq km Land: 778,720 sq km Water: 25,220 sq km Land Boundaries Total: 6,774 km Border countries: Afghanistan 2,430 km, China 523 km, India 2,912 km, Iran 909 km Climate Mostly hot, dry desert; temperate in northwest; arctic in north Natural Resources Land, extensive natural gas reserves, limited petroleum, poor quality coal, iron ore, copper, salt, limestone Land Use Arable land: 24.44% Permanent crops: 0.84% Other: 74.72% (2005) Irrigated Land 182,300 sq km (2003) 25 https://www.cia.gov/cia/publications/factbook/geos/pk.html Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 81 of 279 Telecenters in Pakistan People: Population 165,803,560 (July 2006 est.) Age Structure 0-14 years: 39% (male 33,293,428/female 31,434,314) 15-64 years: 56.9% (male 48,214,298/female 46,062,933) 65 years and over: 4.1% (male 3,256,065/female 3,542,522) (2006 est.) Median Age Total: 19.8 years Male: 19.7 years Female: 20 years (2006 est.) Population Growth Rate 2.09% (2006 est.) Birth Rate 29.74 births/1,000 population (2006 est.) Death Rate 8.23 deaths/1,000 population (2006 est.) Net Migration Rate -0.59 migrant(s)/1,000 population (2006 est.) Sex Ratio At birth: 1.05 male(s)/female Under 15 years: 1.06 male(s)/female 15-64 years: 1.05 male(s)/female 65 years and over: 0.92 male(s)/female Total population: 1.05 male(s)/female (2006 est.) Infant Mortality Rate Total: 70.45 deaths/1,000 live births Male: 70.84 deaths/1,000 live births Female: 70.04 deaths/1,000 live births (2006 est.) Life Expectancy at birth Total population: 63.39 years Male: 62.4 years Female: 64.44 years (2006 est.) Nationality Pakistani Ethnic Groups Punjabi, Sindhi, Pashtun (Pathan), Baloch, Muhajir (immigrants from India at the time of partition and their descendants) Religions Muslim 97% (Sunni 77%, Shi'a 20%), Christian, Hindu, and other 3% Languages Punjabi 48%, Sindhi 12%, Siraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%, Balochi 3%, Hindko 2%, Brahui 1%, English (official and lingua franca of Pakistani elite and most government ministries), Burushaski, and other 8% Literacy Definition: age 15 and over can read and write total population: 48.7% Male: 61.7% Female: 35.2% (2004 est.) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 82 of 279 Telecenters in Pakistan Government: Government type Federal Republic Capital Islamabad Administrative Divisions 4 provinces, 1 territory*, and 1 capital territory**; Balochistan, Federally Administered Tribal Areas*, Islamabad Capital Territory**, North-West Frontier Province, Punjab, Sindh note: the Pakistani-administered portion of the disputed Jammu and Kashmir region consists of two administrative entities: Azad Kashmir and Northern Areas GDP (Purchasing Power Parity) $393.4 billion (2005 est.) GDP (Official Exchange Rate) $89.55 billion (2005 est.) GDP – real growth rate 6.9% (2005 est.) GDP – per capita (PPP) $2,400 (2005 est.) GDP – composition by sector Agriculture: 21.6% industry: 25.1% services: 53.3% (2005 est.) Labor Force 46.84 million Note: extensive export of labor, mostly to the Middle East, and use of child labor (2005 est.) Labor Force – by occupation Agriculture: 42% industry: 20% services: 38% (2004 est.) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 83 of 279 Telecenters in Pakistan Unemployment rate 6.6% plus substantial underemployment (2005 est.) Population below poverty line 32% (FY00/01 est.) Inflation Rate (Consumer Prices) 9.1% (2005 est.) Budget Revenues: $15.45 billion expenditures: $20.07 billion; including capital expenditures of $NA (2005 est.) Public Debt 53.8% of GDP (2005 est.) Industrial Production Rate 10.7% (2005 est.) Electricity – production 76.92 billion kWh (2003) Electricity – consumption 71.54 billion kWh (2003) Oil – production 63,000 bbl/day (2005 est.) Oil – consumption 365,000 bbl/day (2004 est.) Natural Gas – production 23.8 billion cu m (2003 est.) Natural Gas –consumption 23.8 billion cu m (2003 est.) Note: This page was last updated on 8th August 2006. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 84 of 279 Telecenters in Pakistan Telecommunications in Pakistan Telecommunications Developments in 2005-0626 During last one year Foreign Direct Investment in Pakistan increased by 238%, Telecom sector was the largest beneficiary. ICT spending also increased in public and private sector, most of the spending was on ICT infrastructure, especially in Telecom sector. Investment from overseas in telecom sector has tremendously increased due to deregulation of telecom sector and over US$1/Billion was received in last 9 months. Government in Pakistan has laid the foundation of ICT future by changing the basic policy of monopoly on telecom sector and handed over telecom operation to private sector, with open and healthy competition among telecom operators. Pakistan Telecommunications Corporation, public owned telecom monopoly, has been privatized and taken over by Etislalat of United Arab Emirates. Cellular telephony sector has shown unprecedented growth; over 100%/year and mobile phone connection have reached to 36 million from 14 million in a year. There is tough competition among cellular operators and beneficiary is the customer. As a result of proactive policies in Telecommunications: • ICT total investment and spending has crossed US$10/Billion in 2005-06 • Over US$1/Billion foreign direct investment has been received in Telecom sector alone during last 9 months and US$10/Billion investment is expected in next five years in this sector. • 2350 2300 2250 2200 150 ISPs / DNOPs licenses have been issued, 70 are in operation 2050 2000 • Internet users 5.5/Million • Mobile phone users increased to over 32/Million • 2339 cities and towns connected to Internet • 5500 Internet cafés are in operation 238000 236000 234000 232000 230000 228000 226000 224000 222000 220000 218000 are over are Cities connected on Internet 2150 2100 1950 2005 2006 Public call office 2005 2006 Sources of data: PTA statistics, SATC Reports and Analysis and The AFACT Pakistan Country Report, 2006, presented by Salman Ansari 26 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 85 of 279 Telecenters in Pakistan • 236,166 Public Call offices are operating in the country • International and domestic telecom tariff has been drastically reduced • Personal Computers population is over 4.5/Million • Over 100,000 Graduates at Masters and Bachelor are working in ICT sector • Software exports and services are over US$400/million • Over 100 call centers for overseas operations are working • E-Government projects under implementation are US$300/million, at federal and provincial level Mobile Subscribers vs. Fixed Line Subscribers 35 32 30 25 20 15 Mobile 14.5 3.66 1.7 3.98 2.4 2002 2003 5 3.25 0.74 2001 10 5.274 4.4 5.024.9 ALIS 2006 2005 2004 0 Years Millions After a slow start following the transition from a regulated state-owned monopoly to a deregulated competitive structure, Pakistan's telecom sector is now moving into a period of what could well be phenomenal growth. Fixedline penetration stood at a low 3.82% and there is plenty of room for further expansion. The government is continuing to pursue its targeted national teledensity of 7% (around 10 million lines) by 2010. To achieve this target, around 1 million additional lines need to be installed every year. Pakistan's mobile sector, which had started to grow strongly over the last few years, rocketed to 36 million subscribers (21% penetration) by June 2006 (41 Million: Oct 2006) and was gearing up for further growth. Wireless Local Loop Subscribers The mobile population has been increasing at a staggering 120% annually. In absence of fixed line; WLL has picked up sharply and 950,000 lines are working with annual 30% growth in WLL sector. These will increase to over 1.2 Million in the second quarter of 2007. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 649,385 700,000 600,000 500,000 400,000 267,000 WLL 300,000 200,000 100,000 0 2005 2006 86 of 279 Telecenters in Pakistan Telecom Infrastructure27: Service Telephone lines (including WLL) Mobile phones ISPs / DNOPS PCOs Cities connected through Internet Internet users e-Mail users Cyber Cafes Fiber Connectivity % Digitalization Landline Tele-density NWD locations Cellular Density June-2004 4.94 m 5.2 m 130 200 k 1,700 4/m 5/m+ 3,500 360 cities 100% 3% 1,750 3% June-2005 5.4/m+ 14/m+ 150+ 225/k 2100 5/m+ 6/m+ 4,500 400+ cities 100% 3.6% 2,000 7% June-2006 6.0/m+ 32/m+ 170+ 236/k 2339 5.5/m+ 6.5/m+ 5,500 500+ 100% 3.9% 2,200 21% Deregulation of Telecommunications and its impact Pakistan telecommunication sector had remained a monopoly for a very long time. Telecommunication sector has been liberalized and PTCL has been privatized now. So far Pakistan Telecommunication Authority (PTA) has issued 12 LDI and 76 LL licenses in addition to 92 WLL licenses, 2 new mobile companies are in full operation now, increasing number of cellular operators to 5. Investment in Telecom sector Mobile operators have announced to invest more than USD 2.4 billion just in infrastructure; Mobilink is investing around USD 831 million in next three years, Telenor and Warid, the newly licensed operators are investing around USD 495 million and USD 325 million respectively during 2005-07 in addition to the license fees. One of the cellular operators Telenor is going to invest approximately USD 1billion in Pakistan in next 5 years. LDI and WLL operators are also planning to invest USD 411.77 million during 2005-2007. 27 PTA website Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 87 of 279 Telecenters in Pakistan With six mobile companies operating Grow th of Public Call Offices in Pakistan in Pakistan, tele-density in mobile 236,166 250,000 225,000 sector has increased to 21%, although most of the users are in urban areas 200,000 174,615 but rural areas has been benefited from cellular revolution in Pakistan, as 150,000 compared to fixed lined tele-density of 100,000 3.82%. There are further opportunities for growth in fixed lines 50,000 and mobile sector. Local and international companies are investing 2003-04 2004-05 2005-06 in these areas and International calling business as the VoIP has been legalized. VoIP sector has increased tremendously during last two years; mainly due to large number of overseas Pakistanis (5/m) living around the globe. Public call offices have provided communication facility to a common man and are on constant increase. Pakistan Telecommunication Company Limited (PTCL) State owned telecom operator PTCL has been privatized now, 12% stake in PTCL is in the hands of employees and private investors. Authorities have completed the sale of 26% of PTCL controlling stock on the open market. The successful bidder for the stake was Emirates Telecommunications Corporation (ETISALAT) of the United Arab Emirates, which paid US$2,570 million in partnership with Dubai Islamic Bank. Following are salient features of the largest fixed line operator in Pakistan. Fixed Line Capacity 6.0 (M) Telephone Subscribers 5.3 (M) Exchanges 3020 Countries on ISD 242 Customer Services Centers 155 Long Distance VHF PCO's 3101 Total Length of Main Fiber Optic Link 4591 KM Optical Fiber Short Haul Links 159.1 KM Optical Fiber Spur Links 4462.7 KM Internet Services 2339 Cities Digitalization 100% Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 88 of 279 Telecenters in Pakistan The core Networks have grown rapidly and new systems are in the process of being deployed. Interestingly, the PTCL fiber goes down to the grass roots but has never been deployed properly in the rural areas. With the Private sector fiber deployments (country wide and in cities) the option for providing broadband in rural settings is very much possible now. Pakistan’s Optical Fiber System in Complex Geographic Layout of Ring of the new Operators Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 PTCL – Optical Fiber goes to grass roots Bandwidth Demand - Domestic 89 of 279 Telecenters in Pakistan Bandwidth both domestic and International continues to grow after the market opening. The new undersea fibers (SMW 4 and TWA 1) provide a more resilient connectivity for the Internet and LDI operators. New Undersea Optical Fiber International Bandwidth Demand Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Bandwidth Explosion - International 90 of 279 Telecenters in Pakistan Volume 1 Part 7 Telecenter Models 1: Best practices Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 91 of 279 Telecenters in Pakistan Best Practices The Telecenter Model The simplest Telecenters have one or two telephone lines, a personal computer with dial-up Internet access, software for several functions, and a combined printer, copier, scanner, and fax machine. Examples include privately run telephone shops (Senegal), a telephone company’s public calling offices (Argentina), add-ons to fast food restaurants (McDonald’s in Brazil and Israel), and cybercafés set up by small entrepreneurs in countries at all income levels. One step up the size range, standard Telecenters are small businesses with more equipment, more sophisticated technology, dedicated Internet and facsimile lines, and a meeting room. At the high end of the range, multipurpose community Telecenters provide more space, staff, and equipment to support a wide range of uses, perhaps including facilities for local radio broadcasting, distance education and health services, government information, and electronic commerce. The fundamental problem of many Telecenters is that they breach the paradigm of the very technology that they are supposed to provide. The Internet is a networked technology; it exists as a conversation among peers, or near-peers. It distributes control of functionality and content to the edges of the network and works best when that process is replicated in the organizations that connect to it. To the degree that Telecenters do not met those basic criteria; they will be more likely to fail. Telecenters – core issues There is considerable experience in setting up and operating Telecenters across the world. Telecenter is a very important tool to achieve universal access to telephone and Internet for the community which has previously no access to telecommunication or poor members of the community who cannot afford to buy telephone or a PC in his/her house. Telecenters provide not only the basic communication services, but also many social, economic services, such as e-learning, e- health, e-government and e-commerce, for the empowerment of the community members. Such Multi-Purpose Telecenter is deemed as one of the most important innovation in the world of development, similar to the micro-financing. The following are excerpts from a presentation made by Motoo Kusakabe on this subject and holds considerable knowledge for practical application. Many of these concepts were considered in the creation of a sustainable plan for Pakistan. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 92 of 279 Telecenters in Pakistan Scaling up Sustainable Telecenters?28 Differences between pilots and scaling-up Scaling up Telecenter program is not simply identifying a sustainable model and replicating it. There are fundamental differences between pilot project, which create several Telecenters and scaling up program which creates more than hundred and eventually thousands of Telecenters nation-wide. There is a different kind of challenges in scaling up Telecenters. Individual Project Design vs. National Strategy In the case of pilot projects, one worries about just the design of individual project, but in the case of scaling up program, the project leader should much more concerned about the national ICT strategy which addresses a comprehensive plan to develop various components and policy prerequisites for the functioning of Telecenters. Broad Stakeholders’ Support In the case of pilot project, Telecenters may be created, if there is a support from a donor and cooperation of a Line Ministry. In the case of scaling up, the range of stakeholders is much broader; sometimes involve top governmental leadership to various levels of local governments, community groups, civic organizations and private sectors. Financial Sustainability Major objective of a pilot project is to prove the concept of the Telecenter in specific social and economic environment. In that sense, testing the nature and magnitude of development impact of the Telecenter is the major objective and sometimes achieving the financial and operational sustainability is a subsidiary objective. In the case of scaling up, because of its large financial requirement, financial sustainability in some definition becomes an essential prerequisite of the program. This is seen in the way the different models are described in this document. Capacity Building Capacity building is the key component for the Telecenter program both in pilots and scaling up. In the case of scaling up, the magnitude of training needs is so large that there must be domestic institutions which can provide capacity building function continuously and much broader scale. Financial Mechanism Creation of several pilot Telecenters can be easily funded by donors’ grants. Allocation of such grants is often ad-hoc, without permanent system to prioritize Telecenter location, and to select Telecenter managers. However, in the case of scaling up, Donors’ grant may be too 28 This part of the document has been adapted from a report by Motoo Kusakabe, Taipei, Jan 2005 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 93 of 279 Telecenters in Pakistan small to finance large scale operations. Therefore, there is a need for using national budget or funding from Multilateral Financing Agencies to finance the Telecenter scaling up. For this one needs legislation, policies and procedures to allocate public funding in a transparent manner. Four Players for Scaling Up Telecenters Telecenter system consists of four players and one target client, community: Community Community is the target client of the Telecenters which originates demand for Telecenter services and ultimate beneficiaries. Community members initially do not know what the “Telecenter” is and what they provide to their life. But, once they become aware of the potential benefit of Telecenters they know best what kind of services they want from Telecenters. Community should be involved in the design of Telecenter services through participatory demand survey. At the same time, community could be a strong patron of the Telecenters. Through in-kind contribution of premises and human services, they support the Telecenters. Government The government plays important functions in deciding over-all ICT strategy and setting rules upon which Telecenters can operate, compete and survive and leadership role in securing political support to the cause of Telecenters necessary for using public resources. In this case the PTA operating through the USF Company be a very viable coordinator. Telecenter Operators Telecenter operator is the person who actually runs the Telecenter daily. In the entrepreneur based Telecenter model he is the owner of the Telecenter, responsible for the performance of the Telecenter and he enjoys the profit and takes the risk of losses. In other models, he may be a manager or employee or franchisee of the larger organizations. Telecenter managers play a crucial role in determining the success or failure of the Telecenter. So usually the government will select the Telecenter operator according to a transparent criteria and procedure. Then he was given a license (or some form of regulatory permission) and responsibility. He conducts participatory demand survey and prepares a business plan for the Telecenter. The proposed TAPS (Telecenter Association of Pakistan) can help in this regard. Telecenter Support Institutions Telecenter Operators selected from local entrepreneurs cannot create and run Telecenters effectively and profitably without the assistance from experts who know the technical and managerial know-how and resources. Telecenter is a relatively new business model and local people do not know initially how to create and run it. Telecenter Support Institutions are organizations such as public agency, NGOs, universities and private franchisers which give such know-how to Telecenter operators. A TSI advocates for one specific Telecenter business model, such as post office-base Telecenters, or school-based Telecenters or Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 94 of 279 Telecenters in Pakistan franchised Telecenter with ICT training services, etc. They play an important role in awareness raining, capacity building and managerial support for Telecenters. Rural Telecom Operators Rural Telecom Operators are telecom service provider which specialized in providing telephone and Internet services in un-served areas or un-economical rural areas. Due to scarcity of population, low income level, distance from backbone transmission lines and unfavorable geographic condition and these areas cannot attract private commercial-based service providers. Based on the government’s universal access policy, the government will provide provides financial incentives (one-time subsidy) for telecom service providers who undertake to provide certain service level to such areas. This subsidy is given to the USF participant who is selected by the competitive auction called “Smart Subsidy Scheme”. In Pakistan this has tentatively been called ‘negative or reverse auction’. These operators would provide a connection to telephone and Internet to Telecenters with prescribed bandwidth, price and service levels. Government Roles The government plays the important role in the Telecenters scaling-up. As we are basically following the private sector-led approach to ensure efficiency and financial sustainability, the government role is limited to three major aspects: G1. Setting national ICT strategy, G2. Securing a political support, and, G3. Setting the rules and criteria within which the private sector will collaborate and compete. Setting National ICT Strategy for Telecenters Many of the failure of the Telecenters in the past were due to the lack of supporting economic and social environment for Telecenters. The necessary elements for the Telecenters to be self-sustainable are the following: (i) Regulatory Framework, (ii) Telecom Infrastructure particularly in rural areas, (iii) ICT education in various levels, (iv) ICT Industries to support the Telecenters, (v) Content especially in local languages, and (vi) Job Creation to provide a direct benefit to the local people. These success factors can only be developed through a comprehensive ICT development strategy supported by the highest level of the government. A comprehensive Demand Assessment survey should be conducted immediately so that the planning, design and call for bids to set up Telecenters can be based on reality and actual needs. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 95 of 279 Telecenters in Pakistan Viable Public Private Partnerships should be encouraged, where most of the operating risk is transferred to the private sector, which will set up and operate these centers. One important factor relating to the National ICT Strategy for Telecenters is that it should be embedded in the National Poverty Reduction and Developmental Growth Strategies. As the successful development of ICT depends on macro-economic conditions, social and structural policies and related sector strategies, such as in education, health, rural development and communication infrastructure. Securing a Political Support As the Telecenter scaling –up requires a support from wide range of stakeholders, and some budgetary support, securing the political support is one of the essential tasks of the government: Involve diversified players and communities Telecenters need a broad range of partners. Although the Telecenter managers will be mostly local entrepreneurs, they need a support from NGOs who are much familiar with the social development aspects of the Telecenters. Local governments, school community, universities are also important. Political support for Telecenters will become much stronger, if we include all the relevant players. Universal Access Telecenters’ benefits will never reach rural and remote communities, unless we work simultaneously with the Universal Access issues. Creating Jobs The biggest economic and social issue in the developing countries is the under-employment, particularly in the rural community. If the Telecenters do not create jobs in this area, political support will not be strong enough to allow continuous government support. There are many types of ICT-enabled businesses. They are not necessarily a very technology oriented businesses, such as software house and hardware manufacturers. Telecenters themselves create many small enterprises run by local entrepreneurs, and create associated job opportunities through e-commerce and e-learning. Setting Rules & Criteria Another important government role in scaling-up Telecenters is setting rules and criteria for selecting Telecenter operators, rural telecom providers and Telecenter support institutions. Selection criteria should be different depending upon the functions, but there are some common elements for the selection: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 96 of 279 Telecenters in Pakistan Financial Sustainability We have learned that the most frequent reason for the Telecenter failures is the lack of financial sustainability so that, when the donor or government’s grant money is terminated, Telecenters ceased to survive. Some Telecenters created by donors, were not even designed to have revenues to from users to support their recurrent operational costs. In the event, there is some form of operational cost subsidy at start up, the recurrent operational costs should be met by operational revenues, such that even if government/donor support is terminated, these Telecenters continue to operate. Technical Sustainability Another major source of Telecenter failure is the technical break down of equipments and the lack of capacity to maintain PC hardware, software and network connections. Credibility of the capacity building program is the essential part for the selection of the Telecenter-related organizations. Requirements to Provide Basic Services Telecenters Operators, Support Institutions and Rural Telecom Providers all should be subject to the obligations to provide clearly defined basic services to their clients. The quality of the service agreement with such operators is the essential success factor for the publicprivate partnership initiatives. Definition of basic services should be technology independent and allow more innovations with monitoring mechanism to be identified. Definition of what are the Government Contributions Construction of Telecenters in sparsely populated areas needs some governmental subsidies to provide incentives to private sector operators. Competitive auction will be used to minimize the amount of subsidy. However, subsidy tends to cause a distortion impact and risk of abuse, (i) For example, there should be a fair balance between cyber café owners who do not receive any government subsidy and Telecenters operators near-by. (ii) One-time subsidy may provide more discipline to the operators and prevent the risk of abuse than annual operational subsidies. (iii) Sometimes subsidy may take the form of low-cost connection to the broad-band. It may increase the equity of various villages whether it is located remote or near from the telecommunication backbones. (iv) The government may allow Telecenters to deliver E-Government services and allow its fee revenues to be retained by the Telecenters. It could be another form of incentives for the Telecenters. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 97 of 279 Telecenters in Pakistan Rules should be Technology Neutral In the rural communications, optimal technologies depend upon the population density, topology, income levels and type of services required. Telecom service providers will compete in offering the best mix of technologies to provide services efficiently. Therefore, rule for selection of service providers should be written in a technology neutral way to allow such competition. Rules should allow different business models Many different groups created Telecenters based upon different business models. Some models are: (i) Private entrepreneur model tends to be superior in terms of financial sustainability than public sector model or NGO-based models. (ii) School or civic organization-based Telecenter also perform better: (iii) Private Franchises may prove to be sustainable and provide various services effectively using their scale merits (iv) Village Phone Shop model supported by micro-enterprises On the other hand, NGO-based model and Community-based model may prove to be superior in their developmental impact particularly in empowering the rural poor. Public sector model, such as Post Office-based Telecenters may prove to be efficient and convenient as they utilize existing building and familiarity with the customers. Learning from Past Experiences Selection criteria and processes should be informed by the lessons from past experiences. (i) The most important lesson is that the “Bottom-Up” approach worked better than “Top-Down” approach. Whenever possible, we start with awareness rising at community levels, organizing support mechanism at community level, and participatory demand survey at early stage of the Telecenter business plan preparation. (ii) Local contents in local languages and locally relevant service availability is crucial for the success. For this to happen, first creation of community information system should be encouraged, e-government program should require all the governmental agencies to create their portal and all major private organizations and civic organizations should be encouraged to create their own portal. Also small businesses in web-hosting services and web-design services should be promoted by entrepreneur support mechanism. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 98 of 279 Telecenters in Pakistan (iii) Gender consideration should be incorporated to the design process of Telecenter scaling-up. Lessons shows that women managers tend to perform better than male managers. Social constraints of the female users should be taken into consideration when Telecenter program will be designed. Role of Rural Telecom Providers In the case of pilot as well as full fledged roll out of Telecenters, connectivity to telephone and/or Internet is usually designed individually to the Telecenter. Specific VSAT or terrestrial wireless connection is created for the Telecenter pilot project. Universal Access Policy Objectives Traditionally Universal Access obligation was imposed on the PTCL. What is Universal Services Fund? Universal Access Fund is a fund created by the government to subsidize the private sector telecom operators who undertake to develop communication infrastructure in un-served areas. Communication infrastructure may include rural telecom service, Internet and broadband service and Telecenters. The fund is being funded by imposing a levy on all telecom operators of a certain percentage of (i) Revenue (ii) License and spectrum license fees The details are available in the USF documents of the Ministry of IT & Telecommunications. Selection of Telecenter Locations In the scaling-up of the Telecenters, the location of the Telecenters has to be selected strategically to achieve the policy goals with least cost. Selection Criteria Telecenter locations should be selected to maximize the policy objectives, such as poverty reduction and job creation. To achieve such goals, poverty and social indicators such youth unemployment can be used as a major criteria. In addition to the objective economic and social indicators, degree of buy-in from the village community should be incorporated to the selection criteria. That will increase the level of community ownership and improve the sustainability of Telecenters. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 99 of 279 Telecenters in Pakistan In tangible terms this would be done by considering parameters which can ensure a level of success in the initial phases so that the deployment can be practically considered for those areas which may not be able to sustain these due their preoccupation with fulfilling their other basic needs and services. Some parameters which may be used to determine the (initial phase) locations for: • • • • • • Population Availability of basic voice telephony as a primary service Availability of basic infrastructure like electricity, Post Offices, roads, etc Level of education Presence of a planned or deployed service delivery requirement of the public or private sector (training of health workers, distance education, etc) Need for these services (internet, e-government services, agriculture support services) and the ability to pay for these according to need However, these criteria have been elaborated for financial sustainability purposes. In case the Government has social, political and other developmental parameters to support, some of these may need to be revisited. Selection Process Selection process of the Telecenter location should be conducted in a participatory manner so that it will serve as the community awareness raising and inclusion process. The following would be done in some manner or form in the different Models being suggested in this document. However, essentially they will follow similar criteria: (i) Identifying selection criteria and social and economic indicators to be used (ii) Collecting data village-by-village (iii) Preliminary selection based on social and economic data (iv) Village awareness meetings should be conducted to explain the Telecenter objectives and measure community support for a Telecenter (v) Report should be submitted from villages on the needs and how the community members support the Telecenter establishment and maintenance. (vi) Based on the objective and community buy-in data, selection committee will select the final location of the Telecenters. Smart Subsidy Auctions In parallel with the selection of Telecenter locations, technical and feasibility study for the rural telecom service should be conducted. 1) Economic & Social studies of un-served areas to identify priority and net-costs for connectivity. Net cost is the total capital cost plus recurrent operational cost minus Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 100 of 279 Telecenters in Pakistan expected operational revenues from the services provided. As a rule of thumb, revenue of the Telecenter can be derived roughly 2-3% of the income of the community which the Telecenter will serve. 2) Identify optimal size of areas to be covered by a license for Telecenter operator and rural telecom provider; 3) Combining several Telecenter locations, economical and un-economical to create a balanced area for smart subsidy auction for rural telecom providers 4) Determine service level (bandwidth), locations and performance requirements for the Rural Telecom provider Auction Procedures For those Telecenters where this is not driven by large organisations like the Pakistan Post, PSO, Agha Khan Rural Support Program, etc an auction procedure which could be followed s to conduct the smart subsidy auctions: 1) Request for Pre-Qualification: In order to avoid unqualified operator to bid with excessively low prices, the government will conduct pre-qualification process before the bidding. This process significantly reduces the number of bidders to truly serious and capable ones. 2) Request for Proposal document to pre-qualified parties: RFP should describe detail procedures for filing of proposals, format and contents of proposal and information to be submitted, ‘licensing criteria’ must be provided under WTO Reference Paper 3) Evaluate proposals 4) Service Agreement: Service Agreement specifies Network construction milestones, and service rollout, Technical performance requirements, including services to be provided, quality of service, etc. and Penalties and remedies for failure to perform, Procedures for certifying completion of phases of project & subsidy payments, and dispute settlement provisions. 5) License/Registration Role of Telecenter Support Institutions – the National Telecenter Association of Pakistan (NTAP) and the Telecenter Information Clearing house In order to share experiences and resources, the private sector should be encouraged to create a National Telecenter Association. This would enable the operators (mostly expected to be the private sector) to share resources and support each other. In the initial phase the USF Company could establish a Telecenter Information Clearinghouse which would eventually give way to NTAP. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 101 of 279 Telecenters in Pakistan The role of the government would then be to set the KPIs (Key Performance Indicators) which would be monitored by a set of practical SLA (Service Level Agreement) parameters. In order to make this work, the involvement of the community being served would be the prime source of feedback on the achievement of these SLAs. These are needed since a host of issues will confront small entrepreneurs and large organisations. E.g. one of the challenges is to train Telecenter managers and staff in the rural areas where there are no experience persons in maintaining personal computers or in accessing to Internet. Even before the selection of Telecenter managers, somebody needs to raise awareness of village people on the benefits of communication so that they are involved in the initiatives from the beginning. In the case of pilot projects, these tasks are usually conducted by consultants or project implementation unit created ad-hoc for the project. But in the case of Telecenter scaling-up, one needs to repeat such capacity building for hundreds of villages or districts. These tasks are only be conducted by domestic institutions in a permanent basis. In the Telecenter scaling-up major players are the local entrepreneurs. Local entrepreneurs can create a business in an innovative way and manage efficiently, if the business is traditional trading or crafts. But if the business model is totally new to them, somebody needs to define the business model and creating manual and toolkits to train local entrepreneur’s technical and managerial assistance. Telecenters usually cover one village or several villages to have efficiently respond to the local people’s demands. But Telecenter services, such as e-learning, e-health and e-commerce services can be developed more efficiently for multiple of Telecenters, namely they requires some economy of scale. Roles of NTAP In order to meet such demands, Telecenter scaling-up program needs local institutions which creates a business model, provide capacity building, technical and managerial support with diversified skill sets. Though this would be primarily a private sector driven model, but in order to create a base for knowledge some support activity will be beneficial: 1: Develop a Specific Sustainable Business Model for Telecenter, 1) Develop Manuals, Toolkits for Telecenter Managers, 2) Create Pilot Telecenters 2: Implement Capacity Building Program 1) Train Telecenter Facilitators 2) Facilitate Awareness Raising Meetings for Villages, 3) Train Telecenter Operators 3: Assist Telecenter Operators Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 102 of 279 Telecenters in Pakistan 1) Managerial and technical support, training, 2) Providing service contents Selecting Telecenter Support Institutions Selection criteria for supporting institutions should include: a) Organizational capability and financial probity b) Experience in successful entrepreneurship and/or in community development c) Regional diversity, familiarity in regional culture and languages d) Diversity in organizational type: Private, NGOs, Civic Organizations Developing Toolkits NTAP’s first task will be to develop Toolkits and manuals for Telecenter operators. These toolkits and manuals will be specific to the different business models. Common Guidelines for all types a) Manual for Community Stakeholder Meetings and Demand Survey b) Organizational Guidelines c) Financial Management and Reporting Form Manuals specific to specific types, including d) Business Plan Development Tool e) Manuals for Equipments & Maintenance f) Manuals for Telecenter Services Implement Capacity Building Program Once the Guidelines, toolkits and manual have developed, NTAP will start the capacity building programs. Considering the large demand for capacity building, the program will be conducted in three stages: First to train the “Facilitators” within the FSIs. Second is the community awareness rising and, Third, Telecenter managers’ training. Training the Facilitators Facilitators are the champions and trainers of the Telecenter initiative. They organize and facilitate community awareness raising meeting and once Telecenter operators are selected, Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 103 of 279 Telecenters in Pakistan they will train them in a small groups. The government operating via the USF company, will coordinate the facilitators training activities so that facilitators from different FSIs will create a team and jointly conduct a training sessions in a region. Village Awareness Meetings Objective of the Village Awareness Meetings is to raise awareness for Telecenters by village people and local entrepreneurs (potential Telecenter operators). Lessons from the past Telecenter success and failures shows the utmost importance of the community involvement from the designing phase of the project so that the community can express their specific needs and opinions on the Telecenters. Village awareness meetings will serve this purpose. Also this process is a road show of the Telecenter program so that many local entrepreneurs become aware of the opportunity to apply for the Telecenter operator’s position. Village Awareness Meetings are organized by village leaders and facilitated by facilitators Expected outcome of the meetings are: a) Identifying a group of village leaders who will support the Telecenter initiative in the village b) Identify specific needs of the community for the service of the Telecenters with different group of community members c) Identify a local entrepreneur who can apply for the Telecenter operator Training the Telecenter Operators Next stage of the Telecenter capacity building program is the training of Telecenter managers. Objectives of the training of Telecenter operators are; a) Provide Telecenter Operators necessary skills to establish and run the Telecenter. They will learn how to organize community support groups, how to legally establish Telecenters, how to create a good management team, etc. b) Training program covers management, financial, technical and social development aspects. They learn a basic knowledge of preparing business plan for the Telecenter, how to raise and administer financial accounts, how to manage staff, and how to conduct participatory demand survey, etc. Management Support & Content Development Management Support After the initial capacity building program, Different organizations like PSO or the Post Office or Telecom operators may agree with individual Telecenters with long-term Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 104 of 279 Telecenters in Pakistan management service contracts. The service contract is a voluntary basis and may take various forms: a) Franchise agreement: Telecenters may pay a franchise fee at certain percentage of the service revenue and receive managerial and technical support services, including some software for certain services. b) Becoming a Subsidiary: Telecenter may accept equity investment from one of the Telecom operators. These operators may acquire majority share or minority share depending upon the mutual agreement c) Service Agreement: Telecenter have no capital relationship but just agree on the service contract where they pay certain service fees to get technical and managerial support Content/Service Development Telecenter Support Institutions will play a major role in developing contents and services for individual Telecenters. Some FSIs may develop e-learning system for ICT literacy training, some may develop e-learning for job training for rural people, and some may jointly create ecommerce system can be developed by one of the FSIs to be utilised by local businesses. Another important role of FSIs is to encourage community members to create local language, locally relevant contents. For example, community portal should be developed with input from the community members, health information system will be developed with input from villagers on traditional health care know-how. Employment opportunities and job-seekers information can be matched by a portal site. FSIs will play a role of information aggregator for many aspects. E-Government contents, such as down-loading all governmental agencies’ forms and on-line application for various certificates, will be utilized free of charge by Telecenters to produce fee income Other service contents, identified by demand survey by majority of Telecenters should be developed by NTAP/Telecenter Support Institutions. Participatory Demand Survey While a preliminary survey was conducted in order to define the current state of Telecenters in the Rural Areas, a more comprehensive survey is needed to be conducted by the NTAP. Objectives: a) Identify demand for Telecenter services bottom-up: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 105 of 279 Telecenters in Pakistan Participatory demand survey is the core of the demand-driven bottom-up approach to create Telecenters. The survey need to identify different groups in the target community, such as gender groups, youth and aged people, the poor, farmers, ethnic minorities, etc. b) Create buy-in by village communities: Objectives of the demand survey is understand the real needs of the different groups, how they are more easily come to the Telecenters?, what are their constraints? c) Define village contribution to Telecenter This survey also identifies how the various community groups become the active contributors for the Telecenter activities and contents. They can be represented in the Telecenter advisory board. They can volunteer to provide service or contents to the Telecenter. Method: In each District, Telecenter Operator and community leaders organize meetings. Meetings may be separate meetings with different groups, such as farmers, SMEs, schools, women, youth, the poor, minorities, etc. Facilitators from Telecenter Support Institutions may provide advice on the organization of the survey. Outcome: Detailed demand survey identifying the needs for various Telecenter services, segmentation of target customers, how the services will be delivered, how to market each customer segments. Telecenter Business Plan After a participatory Demand Survey, Telecenter operators will finalize the business plan for the Telecenter. Objectives of the Telecenter business plan: a) Define services provided by Telecenter and estimate demand for each services Telecenters will deliver a basic communication services, such as public telephone, Internet and emails. Then, gradually they prepare additional services, such as copying, desk-top publishing, ICT literacy training, e-learning, e-government, e-commerce, e-health, etc. The services, target clients and how to market the service should be identified based on the participatory demand survey. b) Estimate revenue and costs to create financial sustainable plan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 106 of 279 Telecenters in Pakistan Based on the services to be provided, business plan should identify the capital cost and recurrent cost to provide such services. Also they elaborate on the pricing of such services to recover such cost. c) Define human resources Business plan should identify the role and specific name of the Board members, and management team, and employees to ensure operational sustainability d) Define monitoring and evaluation plan Business plan will identify the monitoring and evaluation process, indicators to be used, and benchmarks. Approval: If a government subsidy is involved, the Government Agency will check whether the financial and operational sustainability and minimum service level is secured in the business plan and, then, approve a grant to the Telecenter Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 107 of 279 Telecenters in Pakistan Sustainability The following two excellent documents give a comprehensive view of how sustainability is planned and implemented Models of sustainability Paper by Klaus Stoll (www.developmentgateway.org); The vast majority of Telecenters of all kinds (which can also be cyber cafés or e-government centres) are in fact not sustainable in the long term without long-term outside funding. But there are some remarkable examples emerging that show that real sustainability of Telecenters is indeed possible if some basic principles and rules are followed in the implementation and running of a Telecenter. Telecenters should aim to be financially sustainable if possible from day one of their operation, even if this sounds like a rather utopian goal in the light of many Telecenters' experiences. Because financial sustainability of a Telecenter is seen as crucial, many Telecenters base their "business model" on the provision of ICT and related services to their respective communities or customer base. However, many have found out that this, on its own, is often not a sufficient basis for financial sustainability, particularly if the Telecenter has as its aim not only the provision of ICT services but also community development. A solution for Telecenter sustainability emerges when one looks further than simple financial sustainability and widens the understanding of sustainability in such a way that it includes, besides financial sustainability, social, political, cultural, and technical sustainability as elements of equal value. Those Telecenters that have integrated social, political, cultural, and technical sustainability as vital elements in their planning and operation have found that financial sustainability of a Telecenter can indeed be achieved on this basis. Some Basic Principles for Telecenter Sustainability Telecenter sustainability cannot be viewed on the basis of financial sustainability alone. In order to reach the goals of community development and financial sustainability, communitybased Telecenters have to integrate social, political, cultural, and technical sustainability as vital elements into the planning and operation of the Telecenter. Social and Cultural Sustainability For community Telecenters, if the activities of a Telecenter are to be lasting and viable, they must take into account the social and cultural context in which the Telecenter operates, and must respond appropriately to that context. If people in the community feel themselves empowered by the Telecenter, they will be more active in seeking ways to keep it running. Men and women have different needs when it comes to Telecenters, and different possibilities and interests with regard to its use. Similarly, youth and adults have different Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 108 of 279 Telecenters in Pakistan expectations, and running a Telecenter in an urban setting is not the same thing as doing so in a Rural environment. If the Telecenter cannot come to terms with these differences in its management, it will be neither socially nor culturally sustainable. Communities that feel themselves empowered by their Telecenter and feel the real benefits for their community and the individuals of this community will ensure the sustainability (including the financial sustainability) of a Telecenter because it is in their own vital selfinterest. Political Sustainability Political sustainability refers to the importance of securing a regulatory framework that will protect, promote, and support community Telecenters and their activities, with special attention to the specific needs of the poorest sectors. Sustainable Telecenters follow a "down-up" and not an "up-down" dynamic. As Telecenters and their sustainability are based on the community and its commons, the role of government in a Telecenter dynamic is not to "impose" a Telecenter on a community, for whatever well-intentioned reason (such as to bridge a perceived "digital divide") but rather to create the conditions that allow community Telecenter dynamics to develop. The same is true for international organizations active in the field of Telecenter development. Technological Sustainability Although Telecenters do not generally need to operate with the latest technologies, it is important that they have a clear plan for ensuring their technological sustainability. This is especially the case since digital technologies are changing so swiftly, which means that equipment and programs rapidly become outdated. Connectivity and its related costs are still a vital issue, in particular in rural areas. No Telecenter can be an island. Telecenter sustainability cannot be achieved without networking between Telecenters. In order for Telecenters to make their work more effective and to reach their objectives, they need to organize themselves in overlapping national, regional networks. This organization is important for three reasons: First, it allows Telecenters to share insight and experience, increasing their effectiveness and chances of success. Secondly, it allows them to share resources, and to get access to resources more easily. Being part of local, national, and international networks provides Telecenters with muchneeded scalability and the subsequent support to cope with these liabilities. One example for this is the ability to achieve connectivity for a reduced cost through block deals between Telecenter networks and the public sector. This relates to the model of Government and NGO sponsored Telecenters. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 109 of 279 Telecenters in Pakistan Financial Sustainability Telecenters sustainability cannot be achieved on the basis of providing and selling ICT services alone. Telecenter sustainability can be achieved if the provision of ICT services is seen as the "tool" that complements the overall goal to achieve positive community development. Community Telecenters are community commons with the element of ICT support. The community and its needs and assets stand in the centre of a community Telecenter, not the ICT. The failure of any single Telecenter service (such as the provision of public Internet access or ISP services) must not result in the Telecenter itself becoming 'unsustainable'. It should simply mean that one particular service is no longer sustainable, which is then quite easily managed. Challenges to sustainability Acknowledgement: Excerpts from a presentation by Kentaro Toyama, Assistant Managing Director Microsoft Research India When sustainable, IT may not be central. Especially for Rural PC kiosk with social development goals, sustainability as an independent business is nearly impossible. It is interesting that some enterprises sustain even in the poorest areas. This happens when these are run as an adjunct business to • Petty shops • Construction • Tailor • PCOs The impact of services is incremental improvements over existing means of performing the same activities. e.g. • E-mail? - Incremental improvement over postal service • VoIP? - Incremental improvement over pay phone • Games? - Incremental improvement over physical recreation • Telemedicine - Incremental improvement over visit to town • E-Government - Incremental improvement over visit to town • Job search online - Incremental improvement over newspaper ads Suggestions for experimentation: • Relax focus on financial self-sustainability Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 110 of 279 Telecenters in Pakistan • • • • • Start with “CT” Do server side first Work through cybercafés Try “featherweight” computing Bait and switch with IT Look for Public-private sector partnerships, like: – e.g., school computer lab as after-school kiosk? – e.g., village administrative office as weekend e-community center? Possible action sequences for a sustainable and scalable model „ Take Grameen’s Village Phone model – Start with mobile shared-access phone – Build capacity for entrepreneur „ Then, add community centre – Establish physical base – Start accounting classes? – Buy IT hardware? – Continue upgrading… Do Server Side First especially important for e-Government services „ Ensure back-end is built first – If it doesn’t work for wealthy urban users… ƒ E-government services – Online bill payment – Commercial services online – Telemedicine – Why would it work for poor rural? „ Then, value of Internet easier to demonstrate to villagers Bait and Switch with IT Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 111 of 279 Telecenters in Pakistan „ Let PC attract attention „ Then, pile-on profitable community activities – Cooking classes – Sewing classes – English classes – Entrepreneurship classes „ New technology – May be necessary, but does not contribute to sustainability – E.g., connectivity by wireless networks – rarely cheaper than alternatives „ Local language content – Definitely necessary, but does not contribute to sustainability – Who will generate fresh content? What NOT to Do – As a donor/funder, don’t demand scale and don’t fund scaling, unless pilots are bulletproof – As an implementer, if it doesn’t work for 10 centers, why should it work for 100,000? What to Do • Define clear development goals • Focus on kiosk operator training • Most important factor in success of kiosk • Education will last, even if kiosk closes • Involve community; listen to community • Summary • For a rural PC kiosk with social development goals, sustainability as an independent business is nearly impossible. Services which can be offered Telecenters provide the public with access to and training on basic information and communication technologies at affordable prices. These services are typically delivered using Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 112 of 279 Telecenters in Pakistan a common network infrastructure and software platform, such as the public telephone network, and may be subsidized for development purposes. They allow people to: 1. Make and receive telephone calls and send and receive faxes and voice mail. 2. Use the Internet for email and Web browsing. 3. Use computers for a range of applications, such as word processing, spreadsheets, small-business tools, CD-ROM searches, and printing. 4. Tech support services, such as printing, photocopying, and desktop publishing. 5. Become familiar with the technology through classes, tutorials, and other assistance. Telecenters also offer more elaborate services on a fully commercial basis, charging fees to cover the costs of local add-ons to the basic network infrastructure and software platform and additional human resources. Public or quasi-public agencies may become important commercial clients or partners of Telecenters that can carry out some of the agencies’ functions more cost-effectively. Telecenters might also serve as community cultural and entertainment centers, using multimedia services and production to bring people together. An essential element is access to content relevant to the local community. Language may be critical: the local dialect, not the official language, may be the one used in day-to-day activities and transactions. Content is costly to develop and difficult to keep current. To give users a tool to produce their own material, national or regional content platforms could be developed and made available locally. A variety of services are being offered by Telecenters around the world. A sample of the international experience is considered along with what could be offered in Pakistan. A consequence of the survey of the Rural areas in Pakistan showed that the experience in Pakistan maps that in the rest of the world. For example, in many locations (see ‘Survey’) there was no internet but computers were present there for a range of services like writing applications and watching DVD movies! Services offered by Telecenters In some Telecenters, particularly in rural areas, services offered are the basic use of equipment - telephones, faxes, photocopying machines. There are indications that higher order services providing government information, for example, are not of key interest to women. Issues such as the education of children, food and firewood are considered to be issues of more concern to women than men. One of the main services offered by Telecenters is the use of telecommunications equipment. Only a few Telecenters are beginning to provide a range of information. Research and discussions in Pakistan show that a variety of services can be offered in the CRICs or Telecenters. These are in addition to the ones already outlined earlier. The Telecenter/CRIC operator can create alliances and service delivery platforms in order to add to their portfolio. The following is sampling of these services with relevance to Pakistan. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 113 of 279 Telecenters in Pakistan Some feasible services to be offered in the Telecenters in Pakistan PSO model • Access to phone, fax and IT equipment • Access to email and internet • Access to printing, typing and other PC related services • Telemedicine * Free perception • Farming * Free guideline, Weather forecast, Pesticide information, Livestock healthcare, seeds information. • Access to photocopies. • Access to photography. • Access to get online admission forms • Access to get birth and death certificates. • Access to get basic education. • Access of Rural products to Global market • Prepaid cards.(Internet /Phone ) Telecard Model Basic Model • PCO • Internet Access • Franchised pre-paid cards • Document scanning and printing ‘Matured’ Telecenter For Businesses • Market Prices • Market Trends • Capital/Funding Information Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 114 of 279 Telecenters in Pakistan • Supplier – Contact Information • News Papers Agriculture and Farmers • Market Information • Supplier Information (chemicals, pest & disease control) • Indigenous Knowledge • Better Farming Methods • Training • Support Programs and Services • Government Agencies and Programs • Quality improved (Seeds and Animal Breeds) • Newspapers • Post Harvest Technology/Secondary Processing Health Workers & Telehealth • Primary health care training • Newspapers • Telemedicine Information • CD ROM’s • Reference Women • Small Business Development (Opportunities) • Capital/Funding Information • Health Related Information • Nutrition • Parenting – experience sharing • Home Economics & Management • Family Planning Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 115 of 279 Telecenters in Pakistan Political and local administration • Training (leadership skills, legal issues) • Community Development/ Empowerment Information • Donor/Funding Information • Statistical Information Education • IT training • Training Information • Scholarship/Employment Information • Newspapers • Curriculum Support – Teaching Techniques Extension workers • Government and Private sector training (e.g. Health, credits, etc) • Partnership opportunities with Tele-center • Statistical Information • Sector Information • Government Programs and related information E-Community Center What will it cost? We recommend to use Govt. schools premises for this purpose ECC would start from 4 pm till 10 pm and will remain close in nights Infrastructure requirement NGOs E – Unit • Statistical Information • Management • Group Facilitation • Rural Development Information CDMA Phone Rs. 7,000 Personal Computer Rs. 25,000 Printer & Scanner Rs. 8,000 •Recurring Monthly Expense •Internet usage Rs.2,000 •Voice usage Rs.2,000 •Utilities Rs.2,000 •Total Month Rs.6,000 Furniture & Fixtures Rs. 15,000 Rs. 5,000 Rs. 60,000 Youth and Students • Career Related Information • Reference materials Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 116 of 279 Telecenters in Pakistan • Games • Scholarship Information • Training Programs • School Exchange Programs • Friends – chat, blogs, etc • Sports In Telecenters in other locations of the world the type of services being offered. These are quoted as a reference sample: In Saksham, following services are provided: • Government to citizen services: land records and birth & death certificates • Health services: direct referrals to hospitals, online appointment requests, online consultation requests • Agriculture services: vet consultancy services, agri-newspaper, online consultation • Commercial services: insurance, digital photography, astrology, matrimonial services • Communication services: chat, online telephony & e-mail • Entertainment content & services: web browsing, games, music & movies • Desktop publishing: typing, printing and designing • Education content and services: computer education, language literacy E-Seva ƒ Payment of utility bills ƒ Certificates ƒ Labor Department ƒ Permits/Licenses ƒ Information ƒ Reservation ƒ Internet services Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 117 of 279 Telecenters in Pakistan Nagymágocs Services: ƒ Agricultural information service ƒ Almanacs, catalogues, encyclopedias ƒ Second hand book store ƒ Coffee, tea ƒ Blood pressure measurement ƒ Local advertising and information services ƒ Public Internet access ƒ Office services (office space, fax, computer, copy, etc.) ƒ Local stationary exhibition ƒ Public information service Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 118 of 279 Telecenters in Pakistan Financing of Telecenters Telecenters range from Grameenphone’s ladies offering fee for call services from a cell phone; to public fixed-line telephones; to cybercafés; to fully ICT equipped business centers; to multifunction Telecenters offering telephone, fax, copying, computer rental, desktop publishing, Internet, community radio, and ancillary services. Compounding these services with the variety of mixes of financing results in a multitude of business models. Resources are required to run a Telecenter, and those resources have to come from somewhere. Mixed financing is appropriate for most Telecenters in rural areas and poor urban areas in developing countries. That is, Telecenters should probably usually be financed from several sources reflecting their varied client needs and social functions. Here are some Sources of financing that might be considered One successful way is to integrate the Telecenter with another, perhaps preexisting facility: There are many such models, including schools that offer access to ICT when not being used by students, teachers and administrators, to post offices that offer email services in addition to traditional postal services, to retail stores that add ICT services to their mix, to agricultural cooperatives that offer ICT services to the local community using facilities acquired to serve their members, to community radio stations that offer public access to the Internet in addition to broadcasting. Fee for services: 1. Fees for use of the Telecenter facilities 2. Fees for ancillary services, such as training or search activities. In kind contributions, e.g; 1. Community construction of Telecenter facilities, 2. Donated services to operate the Telecenter; 3. Donated equipment. Cooperative mechanisms, as with a consumer cooperative; Cross-subsidies, e.g. Telecommunications regulation make universal service requirements resulting in cross subsidies from highly profitable services, to marginally profitable services to the poor. As the case in Pakistan’s USF policy Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 119 of 279 Telecenters in Pakistan Public funding, justified by public goods aspects of Telecenter services. Thus where the Telecenter is serving public health, education, and other public goods needs, government financing may be appropriate, via: 1. Direct government funding; 2. Tax financing Governmental and third party (vendors, NGOs, etc) in-kind contributions would be a mixed form, as when a health center makes a room available without charge for a local Telecenter. 1. Special loan facilities, insurance, etc. for Telecenter operators; 2. Special funds, e.g. Donations of part of consumer purchases to schools for the purchase of ICT equipment. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 120 of 279 Telecenters in Pakistan Volume 1 Part 8 Telecenter Models 2: Examples from Pakistan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 121 of 279 Telecenters in Pakistan The Models and the players As a result of extensive discussions with key players ranging from large corporate entities to individual entrepreneurs, six distinct models emerged: 1. Public Sector model 2. Public – Private sector model 3. Private sector commercial model 4. Private sector Telecom Operator driven model 5. Development NGO model 6. Private entrpreneur model Each one of these has a different dynamic as well as focus. Financing and sustainability however would be key in all these as all of them must have social and financial sustainability regardless of the ‘owner’. Those like PSO with CSR (Corporate Social Responsibility) as core objectives can create a variety of financing and operating models including franchising operations. This and other related services would create the necessary impetus for sustainability of the locations where these services have been created. Those where this is an extension of services like the Telecommunications companies would have a different thrust. While entrepreneur models need critical support for them to be sustainable and be able to provide the collateral social services which are the heart of this initiative to bring high quality access to the rural areas. Since a lot of efforts are underway in different fora, we had the opportunity of meeting with and discussing with different players. It quite possible that our interaction has actually enabled the triggering of activity in different organizations, in order to set up sustainable Pilots for some of these Models. Models and Business Cases for Telecenters Tele-centres are categorized by the organization that funds and/or manages it: for-profit, government, or non-profit. For-profit projects are set up by companies that aim to make a return on their investment. Government projects are those that are initiated by a government or government agency and may or may not aim to achieve sustainability/profitability on an individual Tele-centre level. Non-profit projects include those set up by foundations, international agencies, NGOs, and other civil society organizations. This category also includes those Tele-centres set up through corporate philanthropy. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 122 of 279 Telecenters in Pakistan The following entities embody these models and will enable the creation of the different varieties of Tele-center models (government/semi-government, for-profit and not for profit : 1. PSO – Pakistan State Oil who have set up over 1100 kiosks at the Petrol pumps all over Pakistan and once their issues relating to connectivity etc are resolved, these will expand to over 3000 locations. 2. Post Office - The process of using the base of over 13,000 post offices (majority in the Rural Areas) has been discussed with the PO management and is a part of this study and Pilot plans 3. PTA – has set up a few Tele-centers and are going to catalyze 50-100 more following the same model 4. NGOs – providing single and multiple locations (Baluchistan, Kashmir, Karakoram Area Dev) 5. WLL (Wireless Local Loop) programs e.g. Telecard These six models can be mapped to real examples in defining Business strategies and Cases: 1. Public Sector model – Post Office 2. Public – Private sector model - PSO 3. Private sector commercial model – Telecommunications companies setting up and operating these 4. Private sector Telecom Operator driven model 5. Development NGO model – AKRSP and KADO 6. Private entrpreneur model – Telecenters and cybercafes run by entrepreeuners We have put in these and a comprehensive modeling excel sheet in order to enable specific cases to be built as required. The following detailed examples will elaborate this point. Comparison of set up with FOSS and Microsoft An indication of the costs of setting up of the basic hardware, software and LAN for a 6 seat Telecenter is also included in the last section on Business Modeling. Typically the costs range widely: 1. FOSS (Free and Open Source Software) with refurbished hardware: Rs. 58,000 2. FOSS (Free and Open Source Software) with new hardware: Rs. 143,000 3. Microsoft SW with refurbished hardware: Rs. 122,000 4. Microsoft SW with new hardware Rs. 207,000 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 123 of 279 Telecenters in Pakistan While at the first glance the FOSS solution with refurbished hardware looks very attractive, one must consider all the issues involved in setting up and maintaining these centers. Also the issue of using software which is available and used widely by the public at large has to be considered carefully. Corporate and large scale deployments may consider new hardware and MS software an acceptable solution whereas cost conscious entrepreneurs may opt for a low cost FOSS and refurbished hardware solution. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 124 of 279 Telecenters in Pakistan Pakistan Post In order to stimulate the interest of the PakPost in the use of Telecenters, we had created the following plan for discussions. This was accepted as a good Roadmap and defined the initialization of the Tele-center plan. The Pakistan Post with 13,500 locations all over Pakistan has great brand equity and is present in all parts of Pakistan as a part of the USO of the Post Office. It is also the largest bank in Pakistan as well as huge insurance portfolio. This can provide the platform for a whole array of services (their own current and future defined ones) as well as that of others like AIOU for education, NADRA for ID cards and bill Payment Kiosks, farmer crop, seed, weather, loan information, Land records issuance, etc. A concerted project funding may be needed to bring automation to the Pakistan Post as well as set up several thousand Telecenters for service delivery. Section 1: Concept paper for Future Directions The Pakistan Post by its considerable outreach can help achieve goals of bringing equity, economic and social growth, empowerment, education and the other fruits of modern technologies to the most un- and underserved areas of Pakistan. The goals of better governance, better communication and access to knowledge will not only help in achieving political goals of connecting to the remotest of peoples for making their lives better but will also ease the feelings of deprivation and the lack of progress in all dimensions. By setting up an independent Communications infrastructure which can be funded in a variety of ways - institutional like the World Bank and other Multilateral Investment Agencies or innovative like Public Private Partnerships with the rapidly developing Telecom companies, the Post Office can deliver services which can bring modernity to the remotest areas of Pakistan. It is the ONLY entity in Pakistan, which not only has a solid Brand Equity in the masses but also the most acceptability and widest reach. It is in reality an integral part of the Rural and Suburban cultural and economic DNA of Pakistan. Once the complete system and network is rolled out, it will provide outreach to the remotest outposts via the Pakistan Post system. This network will provide services ranging from voice communications to data and internet. The service delivery will be via Post Offices and the empowered employees who will not only provide the services but will also benefit directly (financially) from this revolution. The service delivery will assist the Government to provide services which relate to different Ministries, Federal and Provincial. Services to the end users will be via multipurpose Tele-centers which will provide a variety of services for external as well as internal use. Amongst external uses would be: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 125 of 279 Telecenters in Pakistan • Voice (Telephone) and Internet access • Domestic and International E-mail to delivery of mail – e-mail prepaid web site for International correspondence • Linking up the franchise operations for partners (Banking, funds transfer, package tracking, etc) • Providing service delivery of services for Public and Private entities like NADRA, Land records and revenue assessments • Tele-services like distance learning and Tele-medicine • Providing a Hub for small entrepreneur driven local telephone networks to be funded via own, institutional or the USF (Universal Service Funds) for the Telecommunications (PTA) • Collocation facilities to all Telecom operators • Delivery of prepaid cards and connections for WLL (Wireless Local Loop) and Cellular companies Internal operations will be fully converted to an IT base using software for, which will enable: • Not only revenue growth but will also, • Increase the margins, • Become force multipliers (more people served by the same number of locations) • Better internal funds and operational management • Increasing transparency of cash and financial management and governance This will be done by a comprehensive automation program for HR, Finance and Operations using the appropriate tools for CRM (Customer Relationship Management) and ERP (Enterprise Resource Management). These will be all linked back via the Postal Telecom Network. The system will comprise of a backbone network connected via satellite (VSAT) as well as optical fiber where available connecting the Post Offices all over Pakistan. The core service delivery will be via Tele-Centers where with the partnership of the Telecom Players (Private and public sector players) services would be offered to the local citizens. Special Licenses will be obtained from the PTA (Telecoms) and PEMRA (for FM Radio) either directly by the Post Office or facilitation for partners who will help deploys these networks and systems. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 126 of 279 Telecenters in Pakistan Initial work in this has been in process with discussions with: • Telecommunications Companies and the PTA (Telecommunications Regulator) • Partner entities like DHL, Western Union, Banks, ZTBL, etc • Service Providers like credit cards, Virtual University, Telemedicine groups, • Funding institutions like MIAs • End users, prospective end users • Internal employees and management staff Different financial models can be worked on: franchising, revenue sharing, rentals for site usage (collocation facilities in Post Office buildings, etc). The complete project will be worked out in collaboration with own resources and help from institutions like the Multilateral Investment Agencies from their Technical Assistance programs. This work will yield a proper Vision document based on inputs of all stake holders as well as best practices from practical application in similar economies in other parts of the world. The Business Plan will be scaleable for rapid deployment after Pilots are tested out. The time lines are planned to be short: • Initial plan: 2-3 months • Pilots:1-4 months (parallel activity) • Approvals: 1-3 months for different stages • Funding availability – collaborative, franchising, revenue sharing, institution, internal: 1-14 months Section 2: PakPost Information Telecenters Options for integrating Information Telecenters into core Pakistan Post activity The Role of the Post Office in the development of Access of Services to the Citizens and Businesses and enabling a host of services both internal as well as external is critical. This would dovetail into the ‘Universal Service Obligation’ cornerstone of the Pakistan Post into a vibrant self sustaining business model. This would also enable a host of services being offered by Government and the Private sector to be delivered effortlessly to end users in the remotest parts of Pakistan. These services would not just be PCOs for voice telephony but also Internet and data for a host of content and VAS. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 127 of 279 Telecenters in Pakistan This project would enable the fulfillment of new Government initiatives ranging from eGovernment services, Land Records, NADRA, and CBR to new plans of the Government to develop the ‘National Logistics Corridor’ for speeding up the economic development and flow of goods inland as well as export. Pakistan Post’s own plans for enhancing the Banking and Insurance part of the financial offerings will be enabled with Payment Gateways which can enable epayments including a launch of debit cards, franchising debit card PoS for different Commercial banks via these Telecenters located in the remotest reaches of the Post Offices. DVB – S2 with WiFi Mesh for Rural applications in Pakistan 512 kbps / 128 Kbps Small Remote Site Internet Router Voice Telephone NW Cellular/PSTN 1 Mbps / 256 Kbps Medium Remote Site Router 2 Mbps / 512 Kbps With 32 kbps CIR Large Remote Site Hub • Router WiFi Mesh is used for Access Each Remote Can Configured With a Different Bandwidth • Increased Bandwidth to a Remote through Configuration • Configure CIRs, Minimum and Maximum Rates • MF-TDMA provides efficient Bandwidth usage This would need the Salman Ansari Technology Consultants (Pvt) Ltd development of an independent Telecom Network which can carry Voice and Data and would be covered by a special license from the PTA to enable these services to be offered. As an alternate to the Licencing, an O&M relationship with an integrated LDI/LL operator to provide this service on a Revenue sharing, or as a collaborative arrangement. This telecom network is best served by a Satellite based (DVB-S2) type of a system which is perfect for the cost of the Core (Hub. Gateway, NMS, NOC) as well as the CPE, Customer Premises Equipment (VSAT terminal). Such a system would be optimized for IP type of traffic which would enable both Voice and Data to be transported bi-directionally. The delivery of the end services would not only be at the location of the VSAT Terminal (Telecenter) but by using technologies like WiFi Mesh, provide a total coverage of the complete Village for IP based Voice and Internet. The interconnection of this systems Gateway would be with a partner LDI who also has LL licenses in Pakistan. This will not only provide painless interconnect possibilities into the public telecommunications systems at a very low cost but will be mutually useful for PakPost as well as the Telecom operator. This relationship will also enable the Regulatory cove to be provided without the Pakistan Post going through a long exercise itself. Not only would the LDI/LL generate in and out bound calls with out the need to work with difficult PTCL conditions like Operator pre-select, no inbound call revenue sharing, etc. For the PakPost this would enable the complete Network to be available for its own functions (Internal IT as well as Financial and Postal Services). Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 128 of 279 Telecenters in Pakistan This would also enable the enhancement of existing services like Courier with parcel tracking, Financial Debit Cards based on the PO savings accounts, Pass books, etc. This vehicle will enable the much desired e-Commerce and micro-payment services to function without needing to be pushed into the corner with issues related to International Credit Cards (Visa and Master card) due to no exposure – a comprehensive PoS network in the Post Offices would ensure this. The proper implementation would also need the back end processes and IT infrastructure to be in place. However, for the first step one can launch the services since they most will not need to interface with the PakPost services but for Pak Post to derive the maximum benefit, this aspect would need to be looked into carefully. Funding for this can be foreseen from the MoITT budget as well as the USF and PTCL R&D funding. For the core support and funding of services various financing entities can be considered: MIAs, revenue share and partnerships, BOO, BOT and BOOT and other models can be followed. Once this system is in place different Government and commercial services could be offered to existing entities like NADRA, CBR, Fertilizer, Pharmaceutical, Micro Finance and other companies. Additionally several e-Government services will be launched easily since the Access to the facilities would be through a literate supervisor (the Post master in each Post Office). The issue of placing access to the land record documentation would also possible in these Telecenters. At some locations these Telecenters would become Community Resource and Information Centers. An integrated plan integrating the delivery of electronic materials for the AIOU29 via these Kiosks, Telecenters or CRICs has found solid support in the AIOU itself. As such the paper post system would become electronic and scale upward as far as other services are concerned. Funding issues While the Pakistan Post is excited about this vehicle for providing services, it is currently in the process of trying to rejuvenate itself under a new Management. There is considerable call on its resources in terms of manpower and funds needed for a host of activities which relate to the core business. In our discussions with the DG Pakistan Post (Mr. Arshad Khan) he was very enthusiastic about the proposition, however, they need support both institutional (from the Ministry of Communications) as well as financial (perhaps as a World Bank Project). The DG has already initiated a dialog with the MoITT for prospective funding for this project. 29 Allama Iqbal Open University Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 129 of 279 Telecenters in Pakistan PSO (Pakistan State Oil) PSO is Pakistan’s Largest Oil Marketing Company in terms of Assets, Volumes, Distribution Network and Customer Base. Managing 80% of country’s oil storage, widest Strategic Oil Distribution Network comprising of 29 Storage Depots / Installations throughout country 867,000 MTs of Storage Capacity 3800+ Retail Outlets from Karachi to Chitral. It has 2, 000+ Industrial Customers including Power Plants Fleet of around 6,000 Tankers Numerous Pipe Lines Network (HUBCO, KAPCO, KESC & AES etc.) and an Equity partnership in White Oil Pipeline Project. 80 72 71 47 Market share 50 69 70 66 45 61 60 59 60 61 60 59 30 24 25 29 31 30 30 42 44 38 39 42 39 40 40 18 18 18 Diesel 5 4 4 4 9596 9697 9798 8 9 11 45 45 42 35 39 33 31 35 25 28 26 25 23 20 18 17 17 17 15 15 20 10 27 42 40 35 50 30 43 41 60 40 44 45 10 9 8 8 14 13 13 Petrol 10 5 0 0 9899 9900 0001 0102 0203 0304 0405 0506 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 Even though it is a government company on the verge of being privatized, the Management has turned it around in its efficiencies, profits and attitudes. It has won prestigious AIOUCommonwealth of Learning (Vancouver, Canada) awards for “Strategic Leadership” and “Professional Excellence”. Received “Management Excellence Award” from Management Association of Pakistan FY06 FY05 FY04 FY03 FY02 FY01 (MAP). Rated as ‘AAA’ SALES REVENUE 352,514 253,777 195,130 206,376 182,323 195,039 company by PACRA. GROSS PROFIT 17,207 13,746 9,191 8,955 6,777 6,372 Known for its Corporate PROFIT BEFORE TAX 11,654 9,191 6,263 6,209 5,137 3,451 Social Responsibility (CSR) 7,524 5,656 4,212 4,030 3,188 2,251 activities in the country. PROFIT AFTER TAX 43.87 33.0 24.6 23.5 18.6 15.8 PSO’s remarkable EPS (Rupees) performance and DIVIDEND (Cash) 340% 260% 175% 160% 130% 100% turnaround is cited in various case studies local as well as international forums. The PSO made investment of Rs. 86.25 Million for setting up 1150 Internet Kiosks across the country with the objective to facilitate access to the internet for the common man. These Internet Kiosks provide phones and Internet services where connectivity is possible. PSO plans to set up more of these in order to be able to transform these Kiosks into full fledged Telecenters or CRICs in order to provide low cost telephone connectivity, providing ICT training, basic telemedicine, e-mail, information about farming, weather, prices of crops, Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 130 of 279 Telecenters in Pakistan etc. The services proposed to be offered would also include business centre services internet, telephone, photocopy, fax, e-mail as well as service delivery of services for public and private entities like NADRA, Land records, e-Government and revenue assessments, etc. It would help link up the franchise operations for partners (banking, funds transfer, package tracking, etc) PSO has installed over 1100 Kiosks as a part of the plan which was started 3 years ago. This is governed by a special set of people within PSO head office at Karachi. They wish to expand the process in order to reach out to over 3,500 locations. They are currently working in cooperation with our team and the PTA, in order to create a comprehensive document which can be also used internally by them. The feedback from the last three years is included in the main body of this document. PSO Tele-centers Project Assessment and Business Model for the future Background The PSO have a business model where the Kiosks leverage off the existing Petrol pump utility thereby has a lot of shared operating costs. In the centers which are well run, these kiosks create additional value for the Franchisee. Objective of this PSO study A study was conducted has been made to direct it internally as well as for external audiences. It is proposed by PSO to set up a series of ‘Information Tele-Center’ kiosks across Pakistan. A part of this effort will be funded by PSO and for the rest it will be based on funding from the USF (Universal Services Fund generated by the Telecommunications Operations). The current models of kiosks will be enhanced to become ‘Information Tele-Centers’ and will function as rural multi-service platforms optimized for services based on voice communications and IP based solutions. In order to accommodate different locations and demographic groups two or three models of varying size and depth will be created and tested for sustainability. In this, a variety of services would be delivered including eGovernment services, Tele-medicine, etc. The central aim of these centers is the provision of better governance, meeting social obligations by spreading ICT services in the underserved areas. This will be done by delivering internet services, low cost telephone connectivity, providing ICT training, basic telemedicine, e-mail, information about farming, weather, prices of crops, etc. It is envisaged that this will enable the economy to be stimulated so that the micro-economic gains can translate to micro-economic impact on the common man. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 131 of 279 Telecenters in Pakistan The PSO could also use this opportunity to position itself as the first to access this fund to supplement its own efforts as well as overcome the issues (e.g. connectivity) which are pulling the current initiatives back The funding models for both CAPEX as well as OPEX are expected to be based on different models such that ownership and sustainability can be assured as well as encouraging entrepreneurship. These centers are may be expected to receive subsidies to cover initial capital costs and a continued payment for a short start up time after which the mix of services (not necessarily ICT) would be expected to kick-in, giving sustainability a fighting chance. Indirect support in terms of subsidized interconnect and connectivity would enable this to happen earlier then is usually possible. PSO with their 1100 Kiosks, Internet centers, etc are well positioned in Pakistan to capitalize on this model for a variety of objectives. Case Study and Business Plan PSO is putting together a Case Study for the Tele-Centers. This will serve several purposes: a. An internal evaluation of the impact on its ‘good corporate citizen’ role b. Impact on the people of the area c. Cost analysis of Capex and Opex d. Create a solid Business Plan to address sustainability, possibility of accessing funds from outside sources (USF fund, etc) e. Utility for PSO in its own operations with the efficient operations of the network of these centers This Business Plan would comprise of two parts: 1. Case study – lessons learnt 2. Business Plan This study is invaluable for PSO for internalization as well as applications for the USF. This is apart from the collateral PR advantage that should ensue. Work plan: • Conduct a selective baseline research to determine the implementation of different Tele-Center/Kiosk by PSO in the last few years and conduct a SWOT analysis of their success or failure mechanisms. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 132 of 279 Telecenters in Pakistan • Create the story line as well as differentiated models and experiences from different geographical locations. Collect the demographics of users, pictures, predominant users, predominant usage, services asked for etc. • Work on two- three specific Kiosks/Tele-center access-center models (based on size, depth of services, etc) likely to be adopted by the franchisees, geographical locations in which these centers should be situated based on the feasibility of telecommunications reach or suggest alternatives to bridge the gaps, the number of centers needed, the funding relevant to each center and also what types and mixes of services should be offered • Provide inputs to the selection criteria in case PSO will help in the creation of entrepreneurs or will have its dealer to administer and run the whole series of services as a profit center. Since the selection of the Information Tele-Center franchisees may not be based on financial bids, it is important that the selection criteria assess the technical, managerial and financial capabilities of competing outlets; • The foreseen impact on social and economic growth of the locality served by these centers. Lessons Learnt from the initial deployment of Internet Kiosks at 1100 Filing stations Pakistan State Oil, apart from its core energy business, PSO is also into non-fuel business and is striving to expand its existing network of non-fuel activities. The New Vision Retail Outlets provide the most modern equipment and facilities to the customers. The facilities include Convenience Stores branded as “SHOP Stops”, Business Centers with Internet Facility, Auto Car Wash Plants and a variety of PSO Cards fully supported by State-of-the-Art Retail Automation System offering the customers a unique and convenient mode of payment of their fuel bills. Currently PSO has a network of 171 Convenience Stores by the name of Shop Stop and 33 Business Centres. Apart from this Internet facility has also been provided to more than 1100 outlets. Internet Facility project was started in 2001 with the objective of providing Internet connectivity solutions to the entire population of Pakistan. The aim was to provide an internet facility at all the retail outlets of PSO starting from New Vision Retail Outlets; and till now more than 1100 internet facility kiosks have been planted at various locations throughout Pakistan. The task initially appeared to be quite simple but practically has not been very easy. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 133 of 279 Telecenters in Pakistan Main Challenges • Connectivity: The main issue in this project is connectivity. In many remote areas there are no telecommunication facilities available. There is not even a single telecommunication or mobile network working in certain areas due to which internet facility cannot be operational. • Internet Service Provision: There are areas where telephone network exists but none of the ISPs have started their operations in those areas due to which internet access is not available although computer and other required equipments are available. • Electricity: Another major issue has been provision of electricity. In certain areas there is no electricity being provided by the government due to which computer equipments that are available, cannot be used. • Placement of Internet Facility Kiosk: The placement of internet kiosk is also an issue at some sites where the designated room for this purpose is not available. There is only one room available at certain stations which are being used by the station manager, staff and also for keeping the cash. The internet kiosk is also placed in the same room due to which the room looks crammed and does not leave ample space to move around. It also creates disturbance for the office staff to carry out official work with outside people using the same room for internet. They also don’t consider it safe to let outsiders in the room as the cash is also being handled in that room. • Delivery of Equipment: The vendors appointed for delivering the equipment try to avoid delivering it to very remote locations due to unavailability of proper roads and high costs involved in transporting the equipment in single or less number of units. Due to which it takes more time to deliver it than what it should take as PSO has to wait for a considerable number of sites on the same route in order to curtail high costs involved. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 134 of 279 Telecenters in Pakistan • Repair & Maintenance: In rural areas where not many people are equipped with computer knowledge, there is a very high probability that machines might incur some defect or fault due to improper use. Once the machines are out of order, there are no expertise’s available to mend it or remove the faults. In such situations PSO has to arrange expertise from cities, which again is not very feasible. • Lack of Computer Education: In Pakistan computer literacy rate is very low and making computers and internet facility available throughout the country is of no use until n unless people know how to use it. PSO has provided the equipment but does not have the resources to train people how to use it. Due to which it is not fulfilling the purpose behind setting up the Kiosks. • Fear of Machine in Rural Areas: The rural people who are living a very simple life and are afraid of using machines and cannot accept the idea of using a machine for their everyday tasks. The computer is considered as the most advanced technology by them and being uneducated or having only basic education, they are afraid of using it and consider themselves incapable of using it. Lessons Learnt 1. Proper information should have been gathered about the location including the infrastructure and facilities available in that region. 2. The more successful Kiosks have been in the relatively Urban and suburban environments where the people frequenting these places already have the need. 3. The utility of the Kiosks and Internet is not known to the people around these pumps. 4. The Kiosks must generate new businesses and cash for the Franchisees for them to effectively use and expand these services. 5. Apart from providing internet facility to all areas, focus should also be on increasing computer literacy among the people in order to ensure full utilization of the facility. PSO has also designed it E-Learning program to encounter this problem. 6. Connectivity is the main issue that needs to be overcome in order to make internet facility operational. 7. Repair and maintenance facilities should be made available. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 135 of 279 Telecenters in Pakistan Mobilink It was suggested to them that Telecenters can form a very powerful front end for their service delivery: 1. Marketing in Rural areas and creating a and supporting a franchise which is dedicated to providing services that Mobilink offers as it addresses the vertical in delivery of content, services and payment platforms for micro credits. 2. Create the base for the WiFi/WiMAX/DVB- RC deployment 3. Provide eGov Services – see my forwarded mail to PSO for NADRA This could be a Franchise operation for deployment in the areas where Mobilink either operate in or plans to go to shortly and where a WLL operator like PTCL or GoCDMA is active 1. Decide on a roll out of say 50 initially based on drafts of various business plans 2. Use the vendors that PTA has short listed. 3. Use the Microfinance organizations, which have been brought on line for direct financing by these to the Franchisee you select. 4. Have a standard ‘environment and furniture’ so that this stands out and is in line with the Mobilink branding. 5. Create a useful Business Case for sustainability. 6. These locations will act as an advance party for Mobilink if it is getting there soon and will add on the role of carrying cards, etc. 7. Plan on something useful in addition the usual outbound calls so that these stand out and you become the leader. In this one could consider the suggestion of giving a few paisas per inbound calls to the Telecenters operator as this will enhance your own revenues manifold since these operators will be motivated not only to receive incoming calls but also to add more phones. This money of incoming calls need not be given in cash but in the form on free Jazz cards for making outbound calls. 8. Use the PCO GSM and CDMA phones from Comcept so that the call handling is professional and precise with printouts etc. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 136 of 279 Telecenters in Pakistan Telecard & GoCDMA Telecard informed us that they were very deeply committed to this project. We would eventually be happy to prepare a special suite for the Telecenter kiosk. In an overall and bankable relationship, we could certainly consider giving "credits" to the Telecenter operator, so well wait for hearing in greater detail before you can formalize this. This was as a response to the following proposition: Telecenters are proposed to be set up under Public and Private sector initiatives across Pakistan and part of these are proposed to be funded via the USF (the theme of this report). In all these, connectivity is needed in terms of voice and data. As these Telecenters are going to be operated in a commercial manner and would need to have some form of billing for calls (in and outbound as well as for the Internet) with possibility of having a printout as well. Normally, we believe one can get a WLL phone for Rs. 3000 of which Rs.2000 are prepaid credits; hence the phone costs only Rs. 1000. As these phones are about Rs.5-6,000 originally GoCDMA is subsiding these for selling these in the market. Comcept have developed the GSM and CDMA fixed phones with a complete PCO facility including data and print outputs, rating mechanism etc. These phones sell for Rs. 9000 and according to my information have been tested on your Network as well. We need to know your thoughts whether you are willing to give a similar amount of subsidy to the people/organizations which buy the Comcept phone (for voice and Data applications from GoCDMA) and ask you to integrate this into your network on mutually agreeable terms using your cards for payments for Voice and Data calls. It is suggested that if you subsidize at least Rs 4000 and give a Rs. 1000 credit then the cost to the Telecenter operator per phone would be Rs. 4000 instead of Rs. 1000 now. They would willingly pay for this since this gives them far more control on payment as well as the ability to print out bills etc. Your prospective market would be all Telecenter operators to whom you could provide this service to. Some Questions and information: • Please also confirm that all locations would have data and voice coverage in all locations and that you have dedicated time slots for data - not like GPRS in Pakistan. • Can you also create a bulk interconnect for organizations who need to create several Telecenters and would like to aggregate their traffic for discounts. • What are the costs of the fixed phone with data cable • What is the cost of service for voice (domestic and international) • What is the cost of Data per MB? • Is Telecard prepared to do some level of revenue sharing on incoming calls, especially international? This information is needed in order to structure the Business Cases. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 137 of 279 Telecenters in Pakistan AOS Service Infrastructure Plan “Telecenters” Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 138 of 279 Telecenters in Pakistan Disclaimer: - The financials provided within this document must be detailed and verified in a second iteration - This project proposal does not represent any a guarantee for revenues or a contractual obligation on the part of AOS. Copyright Information This report is solely for the use of the client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from AOS. Service Infrastructure Plan Definition The Service Infrastructure (SI) is a plan to develop a common infrastructure for underserved areas and lower the barrier to entry for services for underserved areas. Background Most of Pakistan’s population lives in rural areas that can be defined as underserved areas. The e-Government initiative as well as private initiatives to use ICT to increase access to services for the citizen is increasing the portfolio of potential services for citizens. However, the parts of the public that can most benefit from these services reside in rural and underserved areas. These persons are hardest hit by the digital divide and cannot access these services due to the poor ICT infrastructure in their areas. The building up of such an infrastructure as a part of a single service is too expensive to be justified for that service alone. However, once put into the perspective of multiple services and their benefits, the infrastructure required becomes an attractive approach from a business as well as governmental view. Objective The objective of the Service Infrastructure (SI) is to allow for an ICT infrastructure to be built in phases to serve underserved areas of Pakistan. It is inherently based on the concept of shared usage, i.e., that the infrastructure is built a single time and is used by multiple services and service providers. It is built around a concept to involve different parties, including the government, MDBs (Multilateral Development Banks), private companies and most importantly the local businessman to create an attractive value proposition. Scope The scope of the Service Infrastructure is focused on underserved and unserved areas and is illustrated in the following figure: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 139 of 279 Telecenters in Pakistan Concept The concept for the service infrastructure is a three tier model: 1. Service Dissemination: Tier one is the actual service dissemination from a Telecenter to the citizen. 2. Service Aggregation: Tier two is the communications provider that connects the Telecenter to the service providers 3. Service Provision: Tier three is the service providers as well as any regulatory or other institutions that monitor the service provision. This model is illustrated in the following figure: The Tier Value Proposition Each tier is provided with a value proposition that allows for a fast development of the service infrastructure while allowing for its future reuse as a service platform for new services. This is shown in the following illustration and defined further in the following Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 140 of 279 Telecenters in Pakistan Subsections: Service Dissemination Tier This tier includes the end consumer as well as the Telecenter. Telecenter is defined as a physical center in which computing resources and high bandwidth internet connection as well as a secure connection for usage of services requiring security is available. Telecenters are operated on a franchise model. A local entrepreneur signs a franchise agreement to set up a Telecenter. The Franchisee is given exclusivity for the particular region for a period of 5 years. The staff of the franchisee is trained in the usage of the Telecenter and required government staff is assigned to the Telecenter as well, e.g., for the provision of land, e-justice, etc. Also, nurses and instructors will be trained for services such as telemedicine and Teleeducation. The Franchisee earns money on a transaction basis. The fee schedule is part of the franchisee agreement. The franchisee is financed by banks and a subsidy is granted through the government or other development institutions. In future phases, the franchisee can also provide wireless connectivity to citizens and businesses requiring such services. Service Aggregation Tier This tier includes the communications infrastructure as well as the service aggregation portal. Communications Center is defined as the center providing the communication connections to the Telecenters. It also provides for a data center that hosts the portal and database for reconciliation purposes All services are then accessed through the communications center. This part is built on the PPP business model. Private companies are invited to invest in the communications center with the ability to charge service providers for the services provided over the infrastructure. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 141 of 279 Telecenters in Pakistan Service Provision Tier The service provision tier encompasses all service providers wishing to provide their services over the service infrastructure. For this, they are charged a per transaction and a basic fee paid to the communications center. This approach lowers the barrier to entry and usage for services and will allow for many new services to be developed and deployed due to the following: - Lower barrier to entry into a larger market - A higher addressable market Initial Services Portfolio The initial services portfolio includes the following and is based on available services and critical services: Area Service e-Government Land Record Management e-Government e-Justice or access to courts e-Government e-Police or access to police e-Government e-Farmer or access to prices, etc. e-Health Telemedicine with video conferencing and onsite nurses e-Education Teleeducation with instructors based modules Infotainment Broadband Internet connections and Video on Demand Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 142 of 279 Telecenters in Pakistan KADO & Regional Development Programs Information and Communication Technology for Development Project (ICT4D) of Karakoram Area Development Organization (KADO). KADO has implemented ICT4D project in two and half years (from January 2004 to July 2006) in Hunza with funding assistance from the International Development Research Center (IDRC) Canada. The project components included: creating internet access, establishing E. Village Resource Centers (for village level development), School Resource Centers (for improving quality of education through ICTs), IT related HR development, promotions of rural business through ICTs and distance learning. The results of the project have been very encouraging and were appreciated by the communities and other stakeholders in the area including the Government of the Northern Areas. In the year 2005, KADO became member of the Global Knowledge Partnership (GKP) and also participated in WSIS Tunis last year. The following document describes another useful initiative which can not only couple with the AKRSP but actually become a model for other developmental entities in the Government and NGOs. Context: Why is this project important?30 The Northern region of Pakistan is remote and generally under-privileged in relation to the rest of the country. The region’s rugged, glacier-dominated landscape makes communication and travel difficult. Approximately one million people inhabit the region, scattered across more than 600 rural villages. Most of the residents still survive through subsistence agriculture, though about 80% of the land is not suitable for cultivation. Landholdings are small and yields are low. Lack of political representation at the national level means the region remains neglected and under-developed. The female population is doubly disadvantaged, due to a strict gender hierarchy. Literacy is low, especially among women, and female participation in the public sphere is severely limited. The poor quality and high cost of existing communications technology limits the economic and educational opportunities available to this isolated population. For many of these people, quality health care, agricultural information, and formal education are simply out of reach. Development agencies have established a strong and active civil society, but much remains to be done. 30 http://www.idrc.ca/panasia/ev-51829-201-1-DO_TOPIC.html Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 143 of 279 Telecenters in Pakistan The Project: How does this initiative address the development problem? With previous IDRC/PAN funding, the Commission on Science and Technology for Sustainable Development in the South (COMSATS) has provided an Internet Service Provider (ISP) facility in Gilgit, Pakistan since 1999. This project aims to expand on these previous efforts to broaden economic and educational opportunities through the application of ICTs. Key areas of contribution include medicine (telehealth), education (distance learning), agricultural extension, and promotion of rural business, conservation of natural and cultural heritage, and village-level planning and development. The project is being implemented in three northern Pakistani communities: Gilgit, Hunza, and Baltistan. ICTs are enabling members of these communities to access specialized, gender-sensitive, higher quality education, information, economic opportunities, and health care services. The project makes special efforts to improve the livelihoods of women in the area, through the provision of specialized health services and more accessible education. Three separate institutions in Pakistan - COMSATS, Karakoram Area Development Organization (KADO), and Baltistan Health and Education Fund (BHEF) - are working together in collaboration with the Aga Khan Rural Support Programme (AKRSP) to test the viability of the above-mentioned services and their contribution to socio-economic development in the region. The findings will help organizations to develop a replicable model of ICT for rural development in remote rural areas both within Pakistan and globally. Objectives: To promote sustainable livelihoods and extradition of extreme poverty in the remote areas of Pakistan through action research in the application and integration of ICT. More specifically, the project aims to: • Provide access to relevant information through ICTs and the Internet for the remote populations living in Hunza and Baltistan • Document the action research experiences of all the partners while implementing the project so that the successful experiences can be replicated in other areas of the region, as well as other parts of the country • Promote ICT benefits experienced in this project among governments, donors, other policy makers and stakeholders by sharing and sending recommendations on best practices to the appropriate parties • To introduce ICT as a possible means of providing employment exchange services in the remote Northern areas of Pakistan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 144 of 279 Telecenters in Pakistan Development Impact As a result of the IDRC-funded COMSATS ISP and facility set up in 1999, 500 people/organizations/enterprises are now connected to the Internet and more than 100 students have been trained in computer skills. The students in the photo to the right are participating in a training course on basic computer skills. Internet connectivity has helped boost tourism, and other businesses can now communicate more easily with their clients in the South of the country and abroad. The project has also raised awareness among Pakistani women and men about the uses and benefits of ICTs. COMSATS’ ISP facility has demonstrated that such facility can be made sustainable, if there is competence, long-term commitment and effective promotion. As of July 2005, computers and networking facilities have been installed in two schools. Students, teachers, and school management of these schools have started using information and communication technologies to access low cost, effective, and high quality learning material. In addition, 270 people have benefited from training in ICTs. Local youth are taking an especially keen interest in the training sessions. E-village resource centers have been established in two villages (as of July 2005), and Evillage resource persons have been trained to ensure that the village organizations have necessary capacities to run these centers on their own. The capacity building that has resulted from this project has been recognized by the Pakistani government. As of August 2005, the government plans to hand over the implementation of the second phase of its IT awareness project in Northern Pakistan to COMSATS, in collaboration with other non-governmental organizations that are also involved in the current project funded by PAN/IDRC. Scalability In order to scale this initiative, Javed Iqbal, the person who guided and brought this project to reality was asked by us to create a model for use by different developmental agencies (Government or NGOs). This report follows. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 145 of 279 Telecenters in Pakistan Karakoram Area Development Organization (KADO) Using ICTs for Rural Development in Hunza and Nagar through Community Based E. Resource Centers (CBERCs) (A pioneering and innovative project for rural development and poverty reduction) A Concept Paper Prepared by Javed Iqbal Afghanistan Rural Microcredit Programme (ARMP) Former CEO of KADO and currently in Afghanistan as Program Manager Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 146 of 279 Telecenters in Pakistan 1. Background The important role played by the information and communication technologies for socio economic development is widely acknowledged and therefore several countries including Pakistan are putting major emphasis to use ICTs for achieving economic growth. ICTs interventions for poverty reduction are a recent phenomenon and their results are very encouraging with visible change in the lives of the people, who have access to such services. Moreover, they can be used to build the capacities of the local communities to take charge for their own development. Recently ICTs have received specific attention to help facilitate poverty alleviation efforts, through employment creation, capacity building, raising farm productivity, micro-credit, education and healthcare. Since ICTs can help enhance sharing of expertise and knowledge, particularly for people living in remote areas, the government of Pakistan has recognized its complementary role in the crucial sphere of poverty alleviation, sustainable livelihoods and improvement of social sector service delivery especially of education and health. The current government has given very high importance to promotion of ICTs and ICTs related skills in the country and due its efforts several IT related universities and skills training centers have been established all over the country and internet facility has reached more than 200 cities and town of Pakistan. However, majority of the rural poor still do not have access to ICTs and their benefits. The main difference between the under-developed and developed countries is the level of access and ability of the people in those countries to generate and use knowledge and information for themselves and for the benefit of their societies. Increasing access to and spreading knowledge is central to economic development, poverty reduction, eliminating ignorance and improving governance at all levels. Therefore, there is a need for concerted efforts to enable rural people to generate and use knowledge/information, achieve equitable socio-economic development at a very fast pace and to ensure the benefits of ICTs reach every household. Therefore, the Government, NGOs, private sector and the communities have to join hands to use information technology as a tool to increase the literacy rate, human resource development and institutional development and to improve the governance systems at all levels to lay a strong base for a knowledge-based society and transform the destiny of the country. The Government can provide the resources, infrastructure, provide an IT and business friendly policy environment, ensure peaceful law and order situation and contribute towards human resource development. As development partners, the NGOs and communities can facilitate smooth implementation of IT related interventions, ensure community ownership and ensure that benefits of such interventions reach majority of the households. While the private sector brings investment, technology, ideas and expertise and converts development ideas into real benefits to the regions. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 147 of 279 Telecenters in Pakistan In order to enable the remote rural communities of Hunza and Nagar, KADO has planned to establish Community Based E. Resource Centers (CBERCs) to use ICTs for rural development. CBERCs will serve as a secretariat, umbrella and catalyst to drive the village development process. CBERCs will use ICTs for: village level development planning (agriculture, education, health, physical infrastructure, culture, etc); poverty targeting; village data base development, information sharing; knowledge management; communication; capacity building; creating access to government services; improving governance at all levels; creating linkages between the village and development actors such as Government, development agencies, NGOs and others. 2. Rationale KADO31 is implementing a project- Information and Communication Technology for Rural Development (ICT4D), with the aim at demonstrating the use of information and communication technology for the promotion of sustainable livelihoods and extradition of extreme poverty in the remote mountainous villages in Hunza. KADO has supported establishment of two E. village resource centers to enable the village people to use ICTs for their own development and facilitate coordination of the development efforts at the village level. Although this is a research initiative, it is making a significant impact on the lives of the village people and there is a demand from other communities to extend this initiative to their villages. Moreover, the current resource centers need further up-gradation in terms of resource and capacity to turn them into full-fledged village development resource centers. However, due to the resource constraints the current resource centers could not be upgraded and the initiative could not be replicated in other villages in the area. Therefore, KADO intends to upgrade the current E. Village Resource Centers and plans to establish Community Based E. Resource Centers in 40 more villages in Hunza and Nagar. It is an innovative project that can contribute towards speeding up development process in the region and provide alternative development options. It will also contribute towards developing replicable models for rural development for other parts of the country. There is a strong justification to establish CBERCs on the following grounds: 31 KADO is a “not for profit” organization working in Hunza and its surrounding areas with a mission to improve the socio-economic base and living conditions of the rural population in the region. It has taken a number of successful initiatives including: a) creation of income and employment opportunities for women and other disadvantaged groups of the society through handicrafts development and promotion of home based micro-enterprises; b) revival and promotion of traditional festivals, arts and music; c) rehabilitation of people with disabilities; d) capacity building of local institutions; e) using information and communication technology for development and e) dealing with environmental issues. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 148 of 279 Telecenters in Pakistan First, it is important to build the human and institutional capacity of the villagers to take charge for their own development and to ensure sustainable development. The Village Development Organizations (VDOs) will be promoted with wider representation of the community to run and manage the centres. Through the resource centres human and institutional capacity of the villagers will be built and strengthened to enable the communities to carryout their own development. Second, the centers will maintain the village data base that can be used for village development. The data base will also provide socio-economic data that can be used to assess the socio-economic situation of the village such as: how many children are out of the school? And what are the reasons? What is the health situation? What is the maternal and child mortality rate? How many people are unemployed? What is the literacy rate (male/female)? What are the key skills in the village? What is the level of farm productivity? What are the main crop related diseases? Etc. This data will be made available to the Government and other development agencies. Government and other development agencies will be able to use this data for their development interventions in the villages. Third, the centers will facilitate and coordinate village development activities effectively, efficiently and in transparent manner through maintaining and sharing information about resources, sources, type of project, funding agencies, implementing agencies, progress/use, beneficiary base and impact on the local communities. Fourth, these resource centers can play a key role in promoting livelihood opportunities through providing market information, job related information, skills training, creating access to microfinance and through creating linkages. Moreover, it can create market linkages, provide business and market information to rural businesses and farmers. Fifth, Hunza and Nagar due to their spectacular geographical and natural settings have been amongst the major tourist destinations in the country. The centers can play an important role in promoting the tourism industry in the area through using village websites containing information about the major tourist attractions, flora and fauna of the village and culture activities. Village level tourism related businesses can use the ICT facilities at the centers to promote their businesses. Sixth, the resource centers could be used for education (distance learning), skills and providing access communication services such as internet, email, phone, photocopying, and word processing, typing services and printing. Seventh, the centers can provide information on livestock management, agriculture inputs, crop-diseases, cropping patterns, best available options for the year and pasture management to the farmers. Eighth, the centers can facilitate access to microfinance for the village people and their businesses. It is unprofitable/uneconomical for banks and the microfinance institutions to set-up their branches in every village and therefore majority of the rural households do not Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 149 of 279 Telecenters in Pakistan have access to microfinance. These centers could act as branches or intermediaries between the microfinance institutions and the village people and their businesses. Microfinance can play a very important role in poverty reduction, promoting income, employment and business opportunities in the earthquake affected areas. Ninth, the centers can provide weather information and information about natural hazards and their mitigation through Meteorological Department of the Government and other organizations by using ICT-tools. As a result of the non-availability of this information, farmers have to incur huge losses due to weather conditions such as heavy rains can damage the crops at the time of harvesting if the farmers do not know beforehand. Tenth, tthese resources centers will create access to various Government services such as agriculture, livestock, health, education and registration related services. 3. Objectives: The overall objectives of the project are village development, improving access to education, skills training, poverty reduction, distance learning, promotion of rural farm and off-farm business, e. governance at the village level and conservation of cultural and natural heritage. The specific objectives of the project are as follows: 1. Promote use of ICTs for village development and improving governance systems at the village level; 2. Increase access to various Government services; 3. Increase productivity and profitability of farming, handicrafts, cottage industries and other rural businesses; 4. Promote access to microfinance through these centers; 5. Reduce the digital gap between the rural areas and developed areas of the country; 6. Contribute towards poverty reduction; 7. Increase the number IT skilled workforce; 8. Contribute towards achieving the millennium development goals; 9. Provide access to education (distance learning) and skills training for both men and women; 10. To help towards developing replicable models of using for ICTs for rural development and poverty reduction in the rural areas. The beneficiaries and stakeholders will include men, women, farmers, students, businesspersons, development activists, teachers, students, businesses, associations, NGOs, Government agencies, tourists, artisans, community leaders and donors. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 150 of 279 Telecenters in Pakistan 4. Methodology CBERCs will have multiple functions at the village level. With every CBERC, a community based institution (Village Development Organization-VDO) will be promoted and strengthened in every village to manage the resource center. The project will strengthen existing institutions, if there are institutions with majority representation of the village people. The project will promote/facilitate establishment of new village based development institutions in villages where such institutions do not exist. At least 40 Community Based E. Resource Centers (20 in Nagar and 20 in Hunza) will be established each equipped with 15-20 computers with networking, access to internet with fax, phone, and typing, photocopying, scanning and printing facilities. Resource persons, who will be responsible for day to day management of the centers, will be trained in running and managing the centers. A Governing Body with the name of CBERCs Board to provide strategic and policy guidance to the centers. The members of the Board will consist of the VDO representatives, schools/colleges representative, local government representative and representatives of the active NGOs in the village. Main service of the centers include: coordination/facilitation of the development activities at the community/village level, provide a meeting place, internet access and email, access to computers, telephone access, fax services, applications writing, give access to Government forms and information, scanning, access to exam results, typing services, market and weather information, printing, important announcement related to important events, job related information, creation of market linkages, job application assistance, tourist related information, data entry, notice boards, project proposals, village development plans, training activities in computer, internet, agriculture, management, livestock rearing and use it as a channel for resource mobilization and resource utilization. The center will act as a development secretariat for the village. It will maintain information/data base of the village: profiling of the village culture, history, NRM, institutions, village governance, socio-economic status etc. Information about the status of poverty at the village level will also be collected. The center will prepare integrated village development plans and approach various funding agencies including Government to implement those plans. The centers will provide basic ICT skills training (in English and Urdu) to both literate men and women of the village so that they are able to access and use the required information related to farming, business and other areas of their need and interest. The centers will provide information about employment opportunities to unemployed youth. They will facilitate linkages between the village institutions and social welfare organizations with regional, national and international development organizations by using ICTs to address development issues of the area; The information on livestock management, agriculture inputs, and crop-diseases, cropping patterns, best available options for the year and pasture management will be made available to the farmers. Moreover, they will provide business information to farmers. Timely availability of market information about farm products is vital for commercial growers of farm products. Presently this information is not available to the farmers in the earthquake Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 151 of 279 Telecenters in Pakistan affected regions. After the establishment of the resource center, this information will be downloaded and provided to the resource centers and the price list will be displayed in the center for the benefit of the farmers. The centers will facilitate provision of microfinance to village level micro and small enterprises- farm as well as off farm enterprises. It is unprofitable/uneconomical for banks and the microfinance institutions to set-up their branches in every village and therefore majority of the rural households do not have access to microfinance. These centers could act as branch or intermediaries between the microfinance institutions and the village people and their businesses. Microfinance can play a very important role in promoting income, employment and business opportunities in the earthquake affected areas. CBERCs will provide weather information and information about natural hazards and their mitigation through Meteorological Department of the Government and other organizations by using ICT-tools. The Meteorological Department collects regular weather information. However, this vital information is generally not available to the rural communities. As a result of the non-availability of this information, farmers have to incur huge losses due to weather conditions such as heavy rains can damage the crops at the time of harvesting if the farmers do not know beforehand. This information, after downloading will be available to the rural communities to enable the farmers to be prepared for unfavorable weather conditions. The centers will provide training courses to villagers on handling emergency relief activities during natural disasters and emergency situations. Information on wild life, flora and fauna of the villages will be developed and digitized in collaboration with the communities. The information will be used for conservation of wild life. The centers will be helped in developing the village Website to tap the potential of tourism and for promoting village enterprises, income generation, job creation and poverty alleviation activities. Teachers and students of the local schools and colleges will also use the resource centers for learning and education purposes. They will also be trained in basic computer literacy. In the resource center, where the internet is available, the villagers can use the facility for accessing the internet, sending and receiving emails. 5. Sustainability of CBERCs The centers will be set up with active participation of the communities. The equipment and furniture will be funded from the external funding assistance and the communities will be responsible to provide the building space to establish the centers. After establishment of the centers the community will be responsible for their day to day running and management through their own resources. KADO will provide technical assistance and capacity building services during implementation of the project. The running expenses of the centers will be met from the sale of its services (email, internet, phone, typing, printing, CD burning, photocopying, fax and other computer services), the centers will receive 10 % of the approved development projects for the village as a fee for proposal development and charge a fee for other services such a training and market/business information. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 152 of 279 Telecenters in Pakistan As the centers will work as a development secretariat of the village and therefore they will have a share in the development resources from the various sources received by the village every year. Government and development agencies pay for the use of the village data base and other services they use at the center. On the basis of the experience in the two villages, it is expected that majority of the centers will be financially self-sustainable in 1-2 years time. 6. Implementation Mechanism: KADO will be responsible for implementation of the project in both Hunza and Nagar valleys. KADO will implement the project through community based organizations (CBOs) and local development organizations (LDOs) in collaboration with the Government and other development organizations such as AKRSP and IUCN. 7. Monitoring Mechanism: The following monitoring and evaluation processes are proposed for the project: KADO will be responsible for regular monitoring of the project activities. KADO will submit 6 monthly and annual progress reports to the funding agency. KADO will keep track of progress on the project activities and share lessons learnt with all the stakeholders. In addition the funding agency may like to use its own system and procedures of project monitoring. The project will be evaluated in the light of the project objectives and output agreed by the partner organizations. KADO Board and AGM will provide policy and strategic guidance to the project. 8. Project Results 8.1 Short Term Results: • • • • • • • • • • Establishment of 40 CBERCs each equipped with 15-20 computers with networking, access to internet with fax, phone, typing, scanning, printing facilities and photocopying facilities; Establish and strengthen 40 local community based development organizations at the village level to handle development issues of the community; Detailed data base of about 40 villages developed; 40 village development plans prepared and implemented; 40 village websites developed and uploaded; Create on line access to various Government services; Creation of 40 microfinance access points through the resource centers; 1000 men and women will be trained every year in ICT and income generation skill at the resource centers; 200 businessmen/women will be trained in ICT application in businesses every year; Reports on 40 CBERCs documenting the effectiveness of the centers as a mechanism for total village development and poverty reduction. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 153 of 279 Telecenters in Pakistan 8.2 Long-term Results Major long-term outputs of the project would be the following: ƒ Establishment of sustainable and strong community based, community owned and community managed institutions effectively carrying out development activities reflecting the needs and aspirations of the local communities; ƒ Creating access to information and communication technologies and capacity building will contribute towards effective management of the village development efforts; ƒ Contribute towards employment, income generation and enterprise development; ƒ Sustainable provision of microfinance to the communities; ƒ Create job opportunities for the people by teaching them the application of ICTs for village and home based enterprises; ƒ Create market linkages for agricultural products, promote tourism, handicrafts, cottage industries and other rural businesses and thereby increase incomes, reduce poverty and contribute towards growth of the local economy; ƒ Contribute towards total village development through implementation of integrated village development plans; ƒ Contribute towards poverty reduction through implementation of poverty targeting initiatives; ƒ Contribute towards improving governance at the village level by capacity building and improving governance systems through using ICT tools; ƒ The project interventions would be implemented in such a way that benefit poorest of the poor and women. ƒ Contribute towards minimizing the digital divide between the remote regions of country and the cities; ƒ Contribute towards overall productivity, prosperity and socio-economic development of men and women and poverty alleviation in the areas; ƒ Creation of awareness at the community level will lead to creation of demand for provision of government services; ƒ It will have impact on the Government and regional and national level development agencies; Creation of a replicable model for using ICTs for total village development to be implemented at the country level. • Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 154 of 279 Telecenters in Pakistan 9. Socio-economic context Hunza and Nagar valleys are sub-divisions of Gilgit district. They are geographically remote and economically destitute valleys located in the Karakoram Mountains in the extreme North of Pakistan, having their boarders with China and Afghanistan. Total population of these valleys is around one hundred thousand people residing in 80 villages, sparsely scattered in an area of around 15,000 square kilometers. Due to the tough terrain, life is extremely difficult and vulnerable to a number of natural calamities, while geographic remoteness makes the life further difficult. Agriculture and tourism are key sources of income of the people. Due to rapid increase in the population, per capita land has decreased, while, after the unfortunate event of 9/11 the tourism industry in the area has suffered from a drastic decline. Moreover, due to long distances from the major markets, climatic and seasonal conditions, fragile resource base, week infrastructures further constrict economic and business opportunities. During the last twenty years, the Northern Areas of Pakistan has experienced rapid socioeconomic change. As a result of the development efforts at several fronts and increase in economic opportunities per capita income of the Northern Areas has grown to 60 % of the National Average. However, still poverty is widely prevalent in the area and if we take the poverty line of one dollar a day, about half of the population of Hunza is still below poverty line (NACIHS, 2003)32. Although, an overall economic development has been witnessed over the last few decades in social and economic sectors even the livelihood of those is not yet secured who came out of poverty trap in the recent past. Further income distribution is also inequitable as the top 20 % had earned 46 % share of the total income and the lowest 20 % earned 7 % share of the total income in Hunza (NACIHS, 2003). This indicates that over the years the economic growth has created different economic classes in the society with wide income/economic gap between the rich and the poor, advantaged and disadvantaged. Those with access, capacity, resources and competence (ACRC) were able to get greater share from the economic opportunities and those who lacked ACRC remained behind in the economic race. In addition, the poor face socio-economic and institutional constraints resulting from the way markets, institutions, policies and processes influence their use of assets to develop livelihood strategies33. One of the major contributors to the visible change and progress in the socio-economic field has been the construction of the Karakoram highway, investment by the government in infrastructure, education and health sectors. Another major contributor in the development of the Northern Areas has been the Aga Khan Development Network, which contributed in the fields of education, health, culture, rural development, community, mobilization and fostering of civil society organizations. As a result of the development efforts at several fronts the literacy rate has increased and the local economy has transformed from 32 AKRSP: Preliminary Results of Northern Areas and Chitral Integrated Household Survey (NACIHS), conducted in 2002. Policy and Research Section, AKRSP, 2003. 33 Pakistan Poverty Assessment Northern Areas Report September 2003, page 105 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 155 of 279 Telecenters in Pakistan subsistence farming into a semi-commercial economy with volatile tourism sector businesses and trade activities within the area and with China. However, as a result of development and change new problems and challenges are emerging and these require new solutions. Some of the current key challenges are widely prevalent poverty, high unemployment/underemployment, and marginalization and gender imbalances in the society. Pakistan Participatory Poverty Assessment Northern Areas Report (PPPANAs) found that women generally had low status, low access to assets and resources, low access to justice and low influence34. Moreover, the same report says that at both community level and within the households, being a woman in the Northern Areas generally meant having less access to resources and fewer rights than men. Due to cultural restrictions women’s mobility is limited and therefore they cannot migrate to cities down country to find jobs, while men can migrate. Therefore, 66 % of the total male workforce of Hunza is engaged in off-farm income earning activities as compared to 7.5 % for women (NACHIS, 2003). While according to the figures for 1997, women’s participation in the labor force in Pakistan is 13.6 %35. Due to mass education in the area, the educated youth coming out from universities and colleges each year are mounting a huge pressure on the weak economic infrastructure of the region. High unemployment rate amongst educated people, who have higher expectations, can create serious problems in the society in the form of frustration, drug addiction, social unrest and they can fall prey to undesirable elements unless unemployment problem is addressed. There is no industrial/commercial activity in Hunza and Nagar in which educated people particularly women can get employment; therefore unemployment among women became a critical issue. The high literacy, particularly university level education including in information technology provides a fertile ground for promoting self-employment by establishing technology companies and working for technology companies. Further these literate people, both men and women, could be trained in marketable technology skills so that they get employment in the technology companies. Majority of the people of Hunza and Nagar depended and still depend upon subsistence farming activities to support their livelihood and derive 47 % of their income from farming activities (NACIHS, 2003). Women of the area still play their traditional role in the agricultural activities such as looking after livestock, weeding, irrigating and harvesting crops and fruits at the farm level. Their efforts at the farm level contribute towards the rural household economy and well being of the families. However, due to primitive farming and processing techniques the household cannot benefit to the maximum extent from the potential offered by the farming activities particularly fruit development. Further due to long distances from the major commercial centers, farmers cannot export all of their marketable agriculture produce and therefore their earnings from farming activities do not generate enough income to bring them out of the poverty trap. Hunza and Nagar are famous for their natural beauty and attract many tourists to area and the tourism industry provides significant employment to educated people (men) of the area. 34 35 Pakistan Poverty Assessment Northern Areas Report September 2003, page 16 Women Entrepreneurs in Pakistan by Nabeel A. Goheer, ILO Islamabad 2003 page 4 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 156 of 279 Telecenters in Pakistan Aga Khan Foundation Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 157 of 279 Telecenters in Pakistan AGA KHAN FOUNDATION (Pakistan) Application of Information & Communication Technology (ICT) to Community Development Initiatives in Northern Pakistan Proposal March 2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 158 of 279 Telecenters in Pakistan Background The Aga Khan Development Network (AKDN) is a group of development agencies working in health, education, culture and rural and economic development, primarily in Asia and Africa. The "Unlimited Potential" (UP) is a global initiative of Microsoft (MS) designed to help narrow the technology skills gap and aid global workforce development by providing technology skills through Community-Based Technology and Learning Centers (CTLCs). The current Project Concept follows initial contacts between Aga Khan Foundation (AKF), USA, a unit of AKDN, and MS to collaborate in a range of community-based ICT initiatives in Pakistan, with a particular focus on the remote and isolated mountain communities living in the Karakoram-Hindukush region of northern Pakistan. DESCRIPTION OF THE AREA The Karakoram-Hindukush region of northern Pakistan is one of the most isolated parts of the world, bordering on Afghanistan, China, and the Indian-held Kashmir. Historically, the entire region was ruled by a collection of feudal rulers called Mirs and Rajas. Currently, it is part of a region that is in dispute between India and Pakistan. About 1.2 million people, belonging to six ethnic groups live in these valleys. The entire population of the area is Muslim, belonging in roughly equal proportion, to Sunni, Shia and Ismaili traditions of Islam, in addition to a small (5,700 in number) Kalash, a pre-Islamic community, tracing its origins to the soldiers of Alexander the Great. AKDN agencies working in six out of seven districts cover roughly 80% of the population with services in rural development, microfinance, primary health, primary and higher education, drinking water, sanitation and culture and heritage management. Under its Rural Support Program, AKDN has created and channeling its support to 4,200 Village and Women’s Organization (V/WOs). These community organizations work with public and private sector agencies to promote a full range of rural development services, including small infrastructure projects, such as roads, irrigation systems, agricultural technologies, microfinance, schools, dispensaries and health centres The area known as the Northern Areas and Chitral (NAC for short) of Pakistan presents a unique development challenge due to its geographic remoteness, political deprivation, underdeveloped private sector, and poor social and physical infrastructure. While many factors are held responsible for this overall underdeveloped, geographic isolation is considered to be the single most important explanatory factor. The area has experienced centuries of isolation largely due to tall mountain walls limiting the possibilities of any kind of communication with outside world. Consequently, small sized subsistence economies have evolved in these remote mountainous valleys representing heavy dependence on meager natural resources. In the last three decades, the development picture in NAC has started to change largely due to construction of the Karakoram Highway and other investments by Government and AKDN. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 159 of 279 Telecenters in Pakistan The once highly subsistence economy has started to transform into a monetized economy showing varying degrees of diversification into other sources of livelihoods such as tourism, trade, and employment in the government and private sector. Similarly, increased access to social sector facilities such as health and education has also improved the overall standing of human capital over the last couple of decades. However, the challenges of economic insecurity, underdeveloped private sector, and poor human capital represented by poor educational and health attainment are far from over yet. Even the so called developed and diversified regions in the area present significant challenges in the form of growing unemployment, under developed private sector, and unsustainable non-farm enterprises where people have diversified. Women in particular seem to have benefited least from any developments of recent past. The problems of underdeveloped human capital, unemployment, and non-involvement in private business sector are more applicable to women. PROJECT DESCRIPTION In the recent past, there have been some important developments on the Information and Communications Technologies (ICTs) front (especially internet-based technologies) in some parts of NAC, mainly in Gilgit district where COMSATS has started to offer the Internet services to local communities. Even though these services are limited to only three towns, namely Gilgit, Chitral and central Hunza, and the quality of connectivity and service is considerably poor and unreliable, this landmark development has increased the speed of communication with the rest of the world and benefits have already started to accrue to all kinds of users including businessmen, students, teachers, and to the flora of civil society institutions. Similarly, in a recent development, the International Development Research Centre (IDRC) has signed a contract with COMSATS and two local NGOs from Northern Areas—Karakorum Area Development Organization (KADO) and Baltistan Health and Education Foundation (BHEF) to start internet services in two other locations (Hunza and Skardu) and use ICT to find innovative technological solutions for development challenges. AKDN foresees some key opportunities and risks emerging from these new technological developments. On the opportunity front, ICT promises a fundamental change in all aspects of lives of the local communities, including knowledge dissemination, social interaction, economic and business practices, political engagement, media, education, health, leisure and entertainment putting the region in the midst of a revolution. At the same time, AKDN also fears that these technological developments may exclude women and other disadvantaged groups creating a divide, as does many other development interventions, if a deliberate attempt is not made to facilitate their inclusion and participation in the electronic information era. Against this backdrop, AKDN agencies serving in the area will draw upon their experience and expertise in participatory techniques, bridging two disciplines; ICT and community development, engaging communities, public and private sector players and local NGOs in fostering access to information and opportunities created by digital world that are critical to enable people create a better future for themselves. AKDN will focus on a framework that Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 160 of 279 Telecenters in Pakistan uses technology as a means to achieve specific development objectives such as literacy, building the capacity of potential providers of ICT services and civil society, improving healthcare, promoting gender equality, employment generation through various training that offer flexible learning environment and support for a range of career opportunities and technology skills. Furthermore, AKDN agencies will also build their own internal capacity and the capacity of other intermediaries, and the private sector providers, in selected sectors such as health, education, cultural services and social development programmes so that these services are more efficient, relevant and accessible to all particularly women and low income group of the society. The specific proposal is to integrate ICT tools in a well-established community-centered development support system, spearheaded by AKDN agencies in the northern parts of Pakistan. Major components of the project include creating remote broad-band access; introduction of computer literacy in schools; professional skills development, and developing information and knowledge based products and services for communities, business people, and service providers in the public, NGO and private sectors. CORE SERVICES: i. Community Technology Learning Centres (CTLCs): The primary goal of CTLCs is to take ICT to every village in the region so as to provide a wide array of opportunities for development and facilitate the building of constructive social capital. Major components of the CTLCs include the following: ƒ Community information networking ƒ Capacity building and skills development ƒ Facilitation of economic activity and employment generation ƒ Social preparation for sustainability of ICT service The CTLCs are proposed to have two different structures; 1) Regional CTLC and 2) Local CTLC - Regional CTLC The regional CTLC would act as a hub for the local CTLCs and would contain facilities that can enable the centre to offer a set of core services at an advance level. The regional CTLC would provide all technical support to the local CTLCs and would be the gateway of communication. The centre would host advance training and service, facilities such as software development, media, design and architecture. Data and information will be based in the regional CTLCs which will be updated on frequent bases and will be updated at the Local CTLCs periodically. Apart from support functions the regional CTLCs would also do the marketing arm for the local CTLCs. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 161 of 279 Telecenters in Pakistan - Local CTLC Local CTLC is the publicly accessible facility that will provide access to wide range of computer facilities and digital resources. Local CTLCs will also market, encourage and motivate the use of technology to the communities and target groups. It will follow a path to serve the local geographic community to respond to its needs and build solutions to its problems, a model of identifying ways in which technology can advance the interest and needs of the community. Local CTLCs will be equipped with computer facility, archive of relevant digital resources including media, text and graphics, data and information relevant to the local community including education, health, agriculture, economics, environment and culture, broadband internet connectivity, full range of messaging and collaboration tools, and training facility. The services that will be offered by the CTLCs include: ƒ Digital library that contains material and large data and information on maximum areas ƒ General office and business service such as phone, fax and copying ƒ Training programs including basic computer trainings to more advance trainings in computer programming and software development ƒ Trainings on management, office automation and job oriented skills training ƒ Internet and e-mail ƒ Online education ƒ Telehealth services ƒ Agriculture, weather and information on environment ƒ Disaster management ƒ GIS ƒ News, views and cultural activities ƒ Meeting space for community ƒ Banking and financial services ƒ E-commerce, micro-enterprise services and business incubation ƒ Human social and cultural services ƒ Access to local information and communication of local information ƒ E-government ƒ Research and development to explore local resources, needs and other Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 162 of 279 Telecenters in Pakistan ii. Social and Economic Development Over the last 20 years, the Aga Khan Rural Support Programme (AKRSP) has been running a very successful integrated social development programme in the area that has resulted in multiplying the per capita income of the people in this remote region and has also instrumental to the establishment of various development and financial institutions including the First Micro Finance Bank Ltd, Pakistan (FMFB-P). Building on AKRSP’s experience of mobilizing communities to addressing their issues through a process of community participation in conjunction with a strong collaboration between the private and public sector institutions, a similar bottom-up, capacityfocused approach will be followed, recognizing the skills, talents and gifts of local communities to bring positive changes in their lives through ICT. AKRSP will be having a key role in the CTLCs and will workout on three major phases: - Community Mobilization and Technology Awareness: A lot of work has already been done in mobilizing communities to take charge of their stake, whereas significant efforts need to be done for creating technology awareness among the communities and organizations. AKRSP would use its strong communication link with the communities in educating them about the benefits and uses of technology within the local environment. - Capacity and Asset Mapping Assessment will be made of the capacity and resources available with the communities so that programs and activities relevant to the needs of the local communities are devised for the CTLCs. The mapping will include information on demography, Education, health, use of technology, individual skill levels, community and other organizations, public places such as schools, health centres, financial and other institutions and setups, businesses, socio-cultural and economic activities. Communities would be encouraged to identify problems and suggest technology solutions. The information will be publicized and shared to promote adoption of new ideas and solutions. AKRSP will seek out research and development directed to address the problems of the communities through CTLCs. This research and development will provide first-hand solutions to CTLCs in setting its priorities in meeting the ICT needs of the communities. - Capacity Building and Networking and Knowledgebase The CTLCs will act as a hub of networks for service level organizations. The interconnectivity will enable the people to access maximum information from a single access point and similarly each organization connected to the network can also have access to local as well as global information resource, technical and professional support. Substantial capacity building of the service organizations will made so that they can make better use of ICT tools. Database and digital library of the research, local content, global links, updated information and training material will be created targeted towards CTLCs, the local community, and organizations connected to the network. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 163 of 279 Telecenters in Pakistan iii. Education: The Aga Khan Education Service, Pakistan (AKESP) has a long history of serving the people of NAC in the sector of primary and secondary education through its network of over 100 schools where majority of the students are female. AKES follows a strategy that is not only focused around students but is also targeted in enhancing the capacity and skills of the teachers as well as educating the parents and society at large. In view of the positive experience of ICT in education worldwide, AKESP through this project anticipates use of ICT to support pedagogic practices providing learning environment that are more Learner-centered, Knowledge-centered, Assessmentcentered, and Community-centered. Interventions will be made in the following areas: ICT Integration in Learning Environments Students - Use of ICT to develop skills and capabilities of students to a level where they become more engaged with their own learning and achieve learning outcomes across the curriculum at a higher level. Provision of online material and learning resources to students so that they can get broader knowledge on various subjects and fields. Teachers - Building capacity of teachers in using ICT tools for teaching, research and effectively integration of ICT wherever appropriate, into constructivist learning environments, and contributing to relevant learning communities. Enable teachers to accommodate the varied learning style and paces of learning within the classroom and make available individualized instruction techniques that are a proven factor in student achievement Learning Communities - - Using the potential of ICT in learning environments to support dialogue, enhance interaction and help students to share and revise ideas. Provide a knowledge-centered classroom environment, and an ongoing assessments designed to make students’ thinking visible to both teachers and students are essential. They permit the teacher to grasp the students’ preconceptions, understand where the students are in the “developmental corridor” from informal to formal thinking, and design instruction accordingly. In the assessment-centered classroom environment, formative assessments help both teachers and students monitor progress. Building of an environment which is supportive and not limited to school going students and teachers but is open to all community to make use of ICT built on a shared, community-based vision that prepares students to learn, work and live successfully in a knowledge-based, global society. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 164 of 279 Telecenters in Pakistan Distance Education The Aga Khan University–Institute for Educational Development (AKU-IED) has been offering distance teacher education programs since 2002. The main aim is to provide increased access to programs for teachers and educational leaders who, for a variety of reasons, are unable to attend full-time courses at AKU-IED. While the content is delivered through print-based resources designed and developed by AKUIED faculty and staff, online learning components are also integrated through the Virtual Learning Environment, IEDOnline. The online learning is also used to address learner isolation and to provide greater interaction and feedback opportunities through Email and websites. Currently due to poor Internet connectivity and computer access school teachers (mostly female) in the Northern Areas and Chitral are unable to benefit from online learning. Access to computing facility would make it possible to train teachers and educational leaders in using ICT for learning and teaching purposes. - - - - iv. The community learning resource center (CLRC) will be used as Regional Study Centers where school teachers, mostly women, who are enrolled on AKU-IED’s will access computers and Internet for distance learning at CLRC. These centres will also house a range of digital learning resources (interactive CDs etc) together with associated hardware required for the use of these resources. Teacher educators and students will be provided accessed to digital libraries and learning repositories to keep pace with the changing world knowledge. Computer Literacy programmes will be organized for teachers and educational leaders so that they can use computers for their professional and personal use particularly integrating ICTs with subject areas such as English, Math, Science and Social Studies. Qualitative and quantitative research studies on the use of ICT for learning and teaching and teacher education in Northern Areas and Chitral (NAC) will be conducted by AKU-IED’s faculty, professional development teachers and Master of Education students. These studies will help developing strategies and plans for future growth of ICT in education in this region. Development of information literacy skills is necessary to bridge the ever increasing ‘digital divide’. Workshops and training programmes will be conducted on developing information literacy skills of school children. Health: Aga Khan Health Services, Pakistan (AKHSP) is providing health services to the communities in Northern Areas through it 50 health centres. The health services have the potential to provide much sophisticated health services more efficiently and can be made more accessible through use of ICT. Following ICT interventions would be of great benefit for AKHSP to achieve its goals of providing excellent heath facilities and services in a timely manner. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 165 of 279 Telecenters in Pakistan Virtual Meeting Software AKHSP has virtual software through which it can conduct virtual meetings and trainings remotely and with a dedicated connectivity of 28.8 kbps. Due to nonavailability of connectivity facilities AKHSP has not been able to get advantage out of this system, though in some of the locations where internet facility is available it has been used By the Information System Department (ISD) for monthly review meetings. With the availability of required connectivity in the Northern Area and Chitral meetings and trainings can be conducted remotely, similarly Doctors and health experts can discuss patient details and medication. It can save time, cost, enhance the capacity of the organization and provide access to expert opinion in resolving health related issues of the communities. Telemedicine Usually it is very difficult for any country to provide health facilities to all patients physically, because the population is increasing day by day but physician in that country are not increasing with that ratio. The only best option to serve a patient is through telemedicine where patient can talk with physician through a video conferencing features. Telemedicine base on three things: Connectivity (DSL or ISDN with high bandwidth) Tools (Telemedicine software) Training (Physician and paramedical staff) AKHSP is looking forward to establish telemedicine setup at remote areas throughout its health centre networks, as it is difficult to provide quality health service at all locations, but it can be achieve by connected health centres, where expertise available at one end is available at the other. AKHSP, through this project will connect maximum of its Health Centres and put the appropriate setup in place to prove telemedicine facility. Health Informatics Most of the locations where AKHSP has its health centres are geographically dispersed and isolated hence, if a patient referred for advance testing or medication to a higher level of health facility centre, patient records are physically carried and there is little coherence among the various levels of health services. Similarly there is no proper means to share overall health statistics and information which is very important in deciding about patients and providing health services For an organization as geographically dispersed as AKHS, P it is essential to have a sense of coherence amongst various levels of health services. Often the patients have to go through another round of tests and assessments because of the unavailability of on line record system. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 166 of 279 Telecenters in Pakistan AKHSP has implemented a health statistical application in all its regional centres, which contain comprehensive health information such as morbidity patterns, demographic information and is updated by regional paramedical staff on timely basis. If this information is promptly accessible to AKHSP management, government and other relevant agencies, they can be in much better position to take decision and to provide safety measures in terms of medicine and other living aids to these communities. Hence connectivity can bring substantial improvement to the operations and services of AKHSP and enable the communities to better health services. v. Cultural Services AKCSP works with communities with twin goals of preserving the cultural heritage and built environment while on the other end build the capacity and improving the economic conditions of the communities. ACSP has vital interest in building the capacity and skills development of the local communities that are increasingly relevant and needed in the market place. Skill Development: 1. Software Usage and Competency: i. AutoCAD and others for technical drawings and representations. ii. Geographical Information Systems (GIS) related software and layered mapping, including hazard and risk mapping, and eco-systems and inclusion of satellite maps in information systems. iii. Database usage for inventory and filing and recording. iv. Accounting and financial skills. v. Access to online services such as www. Archnet.org vi. Conversion of analog drawings and documents into digitized versions. vii. Archiving of materials such as images, documents, drawings. 2. Usage of and competence in digital imaging and Total Station and other equipment for mapping and documentation. i. Distance learning through access to various online programs nationally and internationally. ii. Basic architecture skills. For those women who have shown good aptitude for technical documentation, impart training in basic architecture skills, which could then be used to meet the huge demand of architectural services in the area. (This is planned for Altit initially where there is an emerging pool of women who could progress to this stage.) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 167 of 279 Telecenters in Pakistan Connectivity Solution The overall connectivity will be a combination of fiber optic, wireless and satellite technology. Regional CLCs will be connected through fiber optic while villages where Local CTLCs are established having line of site with the Regional CTLCs, wireless WAN will be setup and for isolated valleys the only feasible option is satellite communication with meshing option. Before selection of a particular technology a feasibility study will be conducted. Project Objectives: The main objective of this project is to improve the economic, social, political and personal lives of the isolated mountain communities of the Karakoram-Hindukush region through the use of Information and Communication Technology (ICT). Focus would be on building a network of Community Technology Learning Centers (CTLCs), aimed at the social use and appropriateness of the technological tools and information that can be accessed as part of a social change to improve the living conditions of these digitally excluded communities. 1. Establishment and operation of viable, sustainable CTLCs, to promote use of ICT and its application at grass root level with particular focus on female. 2. Facilitate and accelerate, through multi-stakeholder collaborations, the provision of knowledge-based livelihoods and income-generation opportunities for the people. 3. Creating a secure and reliable ICT infrastructure with wider connectivity at affordable costs with integrated technological applications that are relevant to the day-to-day lives of people including agriculture, education, health, rural entrepreneurship, microfinance, employment, trade, and commerce. 4. Use ICT to identify and harness local skills and talents in a collaborative partnership, sharing knowledge and trading together for a sustainable future. 5. Support school activities and promote informal education, transforming schools and training centres into open centres of learning for all by exploring the potential of ICT in developing new instruments of learning. 6. Creation, processing, dissemination, conservation and wide spread use of local contents for better flow of information and promotion of global understanding on cultural diversity, management of natural resources, mobilizing external resources for specific social causes and promoting ecotourism as a viable source of livelihood in the area. 7. Conduct literacy, basic education and continuing education activities for the disadvantaged community and making educational, cultural, and business resources available through use of ICT in an accessible, affordable and sustainable way for the development of the people 8. Facilitate access to information about diseases and treatments, preventive medicines, alternative treatments, hygiene and health education. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 168 of 279 Telecenters in Pakistan PROJECT OUTPUTS: Connectivity Infrastructure: Connectivity is a critical enabling agent building a global information society where everyone can participate on an equal footing. The Karakoram-Hindukush is mostly isolated mountainous region with poor communication infrastructure hence connectivity would be of satellite based backbone and broadband LAN and WAN systems in three locations, linking 100 schools, 50 health centres and 200 CTLCs. Installation and setup of reliable, cost effective hardware compatible with local needs and environment at each selected locations. Awareness and Education: Ability to use and adapt Information technology is one of the critical factors and can be addressed through relevant training and awareness. The project impart wide range of awareness and training programs including both formal and non-formal ICT skill development programmes, computer literacy, work related learning programs, educational applications, teaching and training tools, local relevant content development and dissemination. Mentoring and empowerment of women and disadvantaged groups through employability skills and lifelong learning Training covering academic enrichment, youth development, enrichment, youth as well as adult learning Organizing leader awareness programmes. Technology-Led Economic Development Considering the impact of technology, it becomes evident that the economic development is very much dependent on ICT. Job creation and income generation is now closely intertwined with information technology. Whether communities are striving to attract new industries, retain and expand existing businesses, inspire entrepreneurship, or manage growth, computers and the internet play a vital role in the development agenda. This reality is the foundation of information technology-led economic development and CTLCs play a vital role in exploring the potential of economic development of the area through application of ICT. Technical backstopping Establishment of Technology Support Network (TSN) for CTLCs, Schools and Health Centres that can provide high tech solutions, problem solving and facilitation skills, create an environment of collaboration for AKDN institutions, Community, Government organizations and private institutions. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 169 of 279 Telecenters in Pakistan Professional Development Development of comprehensive and forward-looking capacity building Programs, which would enable people to acquire the skills necessary to benefit from the potential of the new economy. Building capacity for training of specialists in ICTs. Basic and advance education in ICT creating a mass of skilled workforce. Expected Benefits 1. Partnership Building and Resource Mobilization Bridging together relevant actors from the AKDN, civil society, private sector and government to build partnerships in planning and implementing ICT and related development initiatives and activities. It would be a new form of partnership where all stakeholders actively and responsibly contribute in planning, implementation and decision-making process of ICT related as well as other development activities. 2. Employment and Micro enterprises Fostering new skills and knowledge that will open doors to jobs or self-employment and help to strengthen micro enterprises by improving their management, marketing, purchasing and advertising 3. Health Facilitating access to information about diseases and treatments, preventive medicine, alternative treatments, hygiene. Capacity building of health professional and access to advance professional health services 4. Education Supporting pedagogic practices in school activities and promoting informal education within communities, particularly among female, children and youth. 5. Community organization Organizing communities and building their capacity to manage their resources, fostering new forms of neighborhood organization, and strengthening individual and collective capacities, encouraging new leaders, and helping to resolve concrete problems and needs in the community. 6. Helping marginal groups: Providing tools to strengthen marginalized groups, women's groups, to help themselves in improving their living standards and to improve people's perceptions of themselves, of their own abilities and their prospects for the future, enhancing creativity, self-esteem and teamwork. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 170 of 279 Telecenters in Pakistan 7. Urban planning Helping to organize community input into the planning and execution of housing projects, disaster prevention and mitigation, and improving public services and community facilities. 8. Productive Networking with Institutions and Government Organizations Enabling communities to communicate and network with organizations, local government and administration to collaborate on development projects, reinforcement of procedures and enhance communication for exchange of ideas and promotion of innovation and learning. Information and Knowledge Offering access to new and more diversified sources of information, and giving communities their own voice; strengthening the exchange of experiences and collaboration with groups and networks at the national and international level, and facilitating communication with emigrants and displaced persons. 9. Communication and culture Creating awareness about their culture and facilitating preservation of cultural heritage, creation and use of different forms of artistic and cultural expression, and supporting the use of other communication forms and technologies for the benefit of the community. Partners and Partnership contribution Following is a summary list of main partners and the proposed roles and responsibilities: • • • • • • Microsoft: Technology leader in ICT would supports the project through its philanthropic programs aimed at improving the lifelong learning of young people and adults providing technology skills through community based technology and learning centres. The support would be in terms of software, and hardware assistance, financial support for training and capacity building AKDN units in the developed countries: fund-raising and financing of infrastructure and bandwidth provision, and exploring partnerships with other players, such as HP France, Telesat/ INFOSAT and Comsats, etc. Telecenter.org: capacity support and networking with other players of similar kind Massachusetts Institute of Technology (MIT): sharing resources, knowledge and tools, assisting in research (impact of ICTs in education/ Model of a CTLC/ICTs in rural development) AKDN units in Pakistan: Take the lead role in organizing and engaging partners and fundraising to establish and support and Management of the project including research, product and services development, implementation and management, training, outreach, monitoring and managing partnerships with government and communities Communities: local ownership and management, cost-sharing, ensuring equity of access and opportunity to women and other disadvantaged groups and promoting public awareness Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 171 of 279 Telecenters in Pakistan Management Structure Lead organizations of the project would be: 1. AKDN 2. CTLCs 3. AKDN Units Steering Committee The management would comprise of a Steering Committee where ideally, majority of the members will be appointed by the lead organizations with AKDN as chair the committee. The SC will provide direct oversight of the overall project including fundraising, relationships, contracts and marketing. SC would also be responsible for strategic planning and provide leadership and direction on key aspects of the project and will also serve as a channel of communication and information between the stakeholders. Executive Committee The executive committee will be responsible for implementation and day-to-day activities of the project. The committee would mainly comprise of experts on ICT use in development and other relevant field experts nominated from the partnering organizations and will be headed by an Executive Director. Sustainability The CTLCs and the connectivity solution to the service organization would initially depend on external funding but in the long-run i.e. in 5-8 years the setup will become self sustainable and would require little or no input. The main sources of income to make the project sustainable will be as follows: - Most of the services offered by the CTLCs will be subsidized for the local communities in the initial years but gradually the fee for services will be enhanced and in 5 years time maximum of the services provided will charge the actual cost. - The connectivity charges will be recovered starting from the first year from all organizations connected to the network. Programs will be developed for government and private sector institutions and organization for which fees will be charges at market rate to generate income for the CTLCs. Services for tourists and researchers will be available at affordable cost that will generate income for the CTLCs. - Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 172 of 279 Telecenters in Pakistan The AIOU: Allama Iqbal Open University The following is an excerpt of an ongoing initiative of SATC with AIOU for its Technological transformation from paper based Distance Learning to an electronic mode of delivery. Introduction This is a summary of our discussions with the Vice Chancellor and his team on the possible strategies to transform how the AIOU conducts its business internally and with its ‘customers’. This also shows how the Telecenters can be used for delivery of course content and transforming the paper based, postal system into an interactive CD based Internet study and examination system for the current 750,000 students. It is expected that with the introduction of automation, the enrollment will reach over 2 Million by 2008. This can lead to a more comprehensive Road Map with clear mile stones defining progress and any corrective measures need to achieve the goals and vision outlined in the initial AIOU document. The process of Technology Transformation has to be in two directions. One is internal MIS, Administration, Finance, HR, logistics, etc. This element will not have direct bearing on the Educational content and delivery but will make the internal processes more efficient and cost effective. The other area is external. Modern technologies will be used to transform business and educational processes and the way these are delivered and conducted. Both these can proceed independently with inter-dependent linkages evolving in a coordinated manner. The Flow The sequence of activities needed in such a transformation is outlined below. Some areas may have been addressed: 1. Clear articulation of the Vision and goals for the next 10 years in one year targets coming down to 6 months for year 2-3 and monthly for year 1. These must be quantifiable as well as intangible ones but would serve as KPIs for setting up a monitoring system 2. Set up PC2 projects for a series of consultancies and seminar 3. Set objectives of an internal automation system: MIS, Finance, Administration, etc. This will lead to a set of initial ToRs for a software development consultancy in two phases – Requirement and Gap analysis for setting up the application development 4. Create a Advisory Board for AIOU: These comprise of people from the Private sector – IT, Education, Civil Society, Government, HEC, MoE, Specialists, Telecom experts, Project Management specialists, financing institutions like UNDP, DFID and WB, CIDA Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 173 of 279 Telecenters in Pakistan 5. Set up a series of structured and formal Brain Storming sessions for a series of direction like: a. Areas for DL programs, blending in and supplementing the MoE and HEC b. Telecom sectors in partnership with organizations like Cisco, Microsoft, Telecom Training c. Diploma level support – similar to what VU does for the graduate level 6. Decide on the areas to be outsourced for a BOT type of process and what to be done by AIOU itself. 7. Structure a 2 day high profile seminar covered extensively by co-opted media (Geo/The News/Jang) with participation and presentations from: a. Process Re-engineering in DL program b. VU/PERN c. HEC d. MoE e. Financing institutions like World Bank, DFID, UNICEF/UNDP, CIDA f. Beacon House Univ. g. DL programs in India, Pacific Islands, England, US h. Telecommunications Vendors and Operators i. Educational and MIS/ERP IT companies 8. We will give a suggested list of topics later for this conference 9. Set up a Consultancy for change management and Attitudinal and cultural change management 10. Set up a key 3-6 member knowledge coordination committee from within AIOU 11. Discuss with PERN and VU on shared resources needed – uplinks of , Internet receive only, connectivity, linkage between AIOU and VU broadcasting node 12. Study the content generation process in VU and get assistance form them to set up the back end for VU 13. Set up a Task Force for content development and management. a. An essential part is an assessment of how the ‘Business Process’ change has to take place in how the content is to be delivered via TV and Web and actual Text Books. b. Understand the impact on how the course materials are created and delivered. c. Do not just translate the paper into IT – sure invitations for disaster. 14. Study and see how the Web based DL systems set up with VU/PERN for Asynchronous learning would be able to work for AIOU Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 174 of 279 Telecenters in Pakistan 15. Determine the requirements for Telecommunications for the learning centers 16. Consider using a DVB-S2 type of a VSAT network for core delivery of classes and course interactivity. This is a fast start process. 17. Consider the use of Telecenters either set up by AIOU or using those from third parties for delivery of course materials. 18. Determine the projects which give immediate short term (3-6 months) visible results. This will help create support for the programs 19. Set up a series of Business Plans for the total project with actual RoI in financial Terms. There are intangible RoIs which can also be created. 20. Set up a team to generate a Master plan and in this to generate individual PC1s for DDWP, CDWP and ECNEC level a. Get a concept clearance from HEC and Planning Commission to this plan and a buy-in for these individual programs b. These will be dove tailed to get a multiyear approval. c. Try to get fungible, non-lapsing funds if the approvals are for a large size projects Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 175 of 279 Telecenters in Pakistan Volume 1 Part 9 Telecenter elements application in the current situation in Pakistan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 176 of 279 Telecenters in Pakistan Content The issue of services and content was also comprehensively analyzed for the various practical and usable elements. These range from e-Government services (some available and some as yet to be rolled out), Agriculture information, Community development etc. For organizations like the Post Office the type of services are huge and very profitable. However, the one type of service holding most promise are training and educational services. These would range from Health worker training and Telemedicine support to agriculture information (all required by the respective ministries with already plans for such service delivery) and general education. Currently there is no coherent e-government related content which could easily be ported on this platform. There are however, several initiatives of service delivery in the public and private sector which when collected together via a portal established for this purpose can be a useful starting point. A draft report 36 from the World Bank to the MoIT defines how some of most needed services can be blended into the e-government program A portal having possibly of linking to relevant sites and services (public and private sector), blogging, feedback, development results, tool kits, etc should be established as a first step of forming a community (or Association) of Telecenter operators. Education and Training content This ties in a very timely manner with major plans of the existing AIOU (www.aiou.edu.pk) Allama Iqbal Open University to undergo major transformation from paper based delivery of materials to electronic means. With a current student base of over 750,000 scattered all over Pakistan, AIOU will use franchised outlets to deliver materials and support the various training (vocational, K1-12, specialized) that it will deliver via TV and DVB-S2 satellite systems. They have a clear understanding from the Ministry of Education in this regard. It may be useful to study funding for the AIOU to set up Telecenters across Pakistan as they have the same potential of reaching across to the remotest areas, have a mandate for providing content and a sustainable model can easily be created for them. This can be a serious contender for funds from Multilateral Investment Agencies as this as meets major developmental and social objectives as well. Some practical aspects of Sustainability, actions and interim results Sustainability of the different type of Centers has been examined and this ranges from purely commercial phone/internet type of ‘latter day’ rural cyber cafes to sustainability based on community ownership. Several initiatives are underway, which will be useful in helping create a sustainable environment. ‘20 most important services and e-government assessment’ report to MoIT, Kareem Abdel Aziz, World Bank, Oct 2006 36 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 177 of 279 Telecenters in Pakistan Some key enablers for provision of viable and scalable service in the rural areas: Some of these are key to making the Pakistan Telecenter program a success, which ever model is chosen for implementation. As such we singled these out for focused attention. 1. Vendors of Hardware who would supply and maintain machines in these remote areas. This has been made possible by the work done by the PTA for their own programs for Telecenters. a. There are a range of prices available for installations with new computers using MS Office and operating system or using PII machines using Linux and Open Office supported by FOSS by UNDP APDIP-IOSN and locally by FOSSFP. The software to be used: b. Microsoft for Telecenters support and subsidized software c. Open Source (FOSS) usage and interaction with APDIP on their FOSS initiatives in Africa for Telecenters 2. Urdu Language software interaction with the developers for MS Office plug-in as well as comprehensive local Urdu language software development and support. 3. Training partners – Intel and Oracle: Intel by virtue of their corporate programs are willing to support the process by utilizing the skills they have used in training over 50,000 school teachers in IT. Oracle has done considerable work in the relevant e-Government space in the region and is willing to replicate the process in Pakistan. 4. Content – Ministry of Agriculture and Health: Considerable work is going on as Pilots in the pubic and private sector for training, information to the farmers, Teleconsultation and telemedicine programs in the public and private sectors. Once these are developed for reliable delivery, these will one of the most important and useful services areas for service delivery through these Telecenters. The same Telecenters can be used for potential financial and retail services. 5. E-Government applications – e-Government Directorate, MoITT. Detailed analysis shows that a more focused and achievable set of e-Government projects is needed, to be able to set the basis for successful government delivery programs. In case this is not driven by the e-Government directorate/MoITT, different organizations within the government will develop (as they are currently doing) their own uncoordinated efforts. 6. Provision of special phones with PCO type of metering in the CDMA/WLL and GSM fixed phones a. Interaction with developer of special GSM/CDMA multipurpose payphones as well as with operators of WLL networks b. Currently, a WLL phone is marketed for Rs. 3000 of which, Rs.2000 are prepaid credits, Hence the phone costs the end user about Rs. 1000. As these simple fixed, phones actually cost about Rs.5-6,000 originally, the WLL operators subsidize these for selling in the market. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 178 of 279 Telecenters in Pakistan c. Comcept has developed the GSM and CDMA fixed phones with a complete PCO facility including data and print outputs, rating mechanism etc. These phones sell for Rs. 9000 and have been tested on all networks d. We have suggested (and have a positive feedback from at least one WLL operator) that they give a similar amount of subsidy to the people who buy this Comcept phone (for voice and Data applications on CDMA) and integrate this into the network on mutually agreeable terms using the WLL prepaid cards for payments for Voice and Data calls. 7. Provision of special Telecommunications gear, specially VSAT based DVB-S2 and similar technologies 8. Vendors for Power supply (GenSets, UPS, etc): It is easy to pre-qualify vendors for this equipment or these can be made the responsibility of the Computer hardware vendors for supply and maintenance. 9. Telecommunications operators who can provide Interconnect into the Telecommunication networks at low costs and are willing to co-invest into the infrastructure for this. This includes the LDI and WLL operators. Some enabling elements for a comprehensive support program for this initiative: 2. Language software and systems development for Urdu and Regional Languages. Already supported in part by the UNDP APDIP-IOSN and IDRC. Especially for integration into Open Office (by FOSSFP & Ubuntu-Linux Pakistan Team) and Microsoft Office. The work done by the National University funded in part by IDRC, APDIP and MoITT is comprehensive and readily usable. 3. Consider setting up a DVB-S2 type of a satellite backbone and provide this as the voice and data connectivity for Telecenters coming under the program. In this the subsidy and support would then be tangible and clear. CPE for CAPEX and subsidized interconnect for voice communications. However, operators will have to make the determination of what type of connectivity is best suited for them under the circumstances they are operating in. 4. Fund and drive 6-8 focused high value e-Government citizen service delivery projects by developing the backend servers and processes and the delivery means via Telecenters. 5. Considerable support for publicizing and providing institutional support for prospective Telecenter operators/entrepreneurs. 6. Support the setting up of Telecenters for e-Government service delivery. A comprehensive model from AOS (the organization which is doing land records in different districts and urban societies) is included in this report. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 179 of 279 Telecenters in Pakistan Actions and interim results 1. A comprehensive physical survey was conducted across Punjab and NWFP in about 60 locations in the target Rural Areas covering PCOs (prospective Telecenters) and current cyber cafes with a specially designed questionnaire in order to have a practical relationship to the base demographics, local culture and base for the local economy. 2. A parallel survey was done by PSO on lessons learnt on the 1100 kiosks already installed. This is being coordinated by us and a complete report will form the PSO model as a prospective optimum recipient of MIA Funding since it will meet almost all the requirements. 3. Discussions and details are being worked out on the payment schemes for the Facilities to be offered in these centers. These range from using stored value cards to prepaid cards of the LDI operators for telephone and internet use as well as other services. 4. Coverage maps for WLL operators are being created (PTCL and World Call are sill to respond). With this a good Road Map can emerge for the roll out of Telecenters using the business plans which use WLL for Voice and Data. There is a buy-in from Large Cellular operators like Mobilink for such an option for an integrated Telecenter. 5. Considerable primary and secondary research and meetings on content and utility of the Telecenters. These include meetings with NGOs and Provincial and Federal departments with a developmental agenda for the rural areas. 6. Blend in education (e.g. Open University content development and delivery – see later in this document), training and vocational development via these centers 7. Discussions with AIOU (Allama Iqbal Open University) indicate that AIOU Management is considering using these Kiosks for delivering their materials to the end user. 8. The Pakistan Post option is also being dealt with in detail with the PakPost Management as well as with the MoITT. a. This is the biggest opportunity area for Pakistan. Pakistan Post with 13,500 locations in all over Pakistan including the remotest rural areas. b. It has a very systematic structure, confidence of the people in its reliability, personnel on the ground and the possibility of using these centers for their Banking and Insurance operations makes this a key entity which the Multilateral Investment Agencies should focus on. 9. Initial meetings have been held with PEMRA to consider granting of low power/low cost FM licenses to eligible Telecenter operators. FM station complete, costs less than US$ 3,500. These can broadcast local content and can get centralized news and information feeds via satellite distribution system (DVB). Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 180 of 279 Telecenters in Pakistan 10. Discussions with HEC and Barani (Agriculture in rainfall areas) University for funding the Agriculture touch screen Kiosks. Models and Pilots are already operational. These would be an add-on in the Tele-center model for the areas where the Ministry of Agriculture needs to address and would also pay for service delivery. 11. Detailed Technology platforms have been studied and costed for the Business cases. These include DVB-S2, WLL, GSM, WiMAX, WiFi Mesh, SIP phones on the LDI and DVB networks. This is being integrated into the study, based on different operator roll out programs. 12. Discussions and the ‘evangelism’ has already triggered off several events: a. NADRA is putting up their Bill payment Kiosks in the PSO Telecenters. b. Saudi Pak bank is putting up their PoS terminals for debit cards in the PSO locations. c. Microsoft and Intel have promised funds, training and support not only for the software but for Pilots and have agreed to work in tandem with the program. d. The local language delivery software has been put on fast forward and the MS office version is ready and work has been accelerated for mainstreaming the Lexicon as well as Text to speech open source software. e. The PakPost is putting a plan for the Prime Minster for creating the space for funding a large scale roll out of these Centers f. NADRA Bill payment kiosks to be placed in the PSO Telecenters: NADRA has developed automated kiosks for various day-to-day transactions involving the banking as well as the service sector. The Online Payment Kiosk is designed to enable utility bills payments as well as perform electronic banking after proper authentication from biometric and online verification systems using the computerized national identity cards. i. This Kiosk offers a convenient, low-cost alternative to bill payments and other financial transactions without compromising customer convenience. ii. These kiosks can be installed at public places and are connected to NADRA's National Data Warehouse through secure internet connections. High level encryption ensures protection of an individual's data being transmitted to the warehouse for verification. Funding support by Multilateral Investment Agencies for some possible entities. Some candidates for funding support for Telecenters are the following. Details are elaborated elsewhere in this document: Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 181 of 279 Telecenters in Pakistan 1. Pakistan State Oils (PSO) – conversion from non-functioning kiosks (out of the original 1100 Kiosks about a 100 were functioning satisfactorily) to a comprehensive Telecenters roll out in all 3500 locations 2. Post Office – planning for a comprehensive rollout of Post Office related services including e-Government, Banking, insurance, Agriculture extension – ultimately reaching 12,000 locations across Pakistan 3. Agha Khan Rural support Program – over 200 planned in the short term 4. KADO – Karakorum Development Authority – over 100 targeted 5. AIOU - Allama Iqbal Open University. There is a plan to initially set up over 500 sites across Pakistan, scaling to 2000 in the second phase 6. Telecard, Mobilink, Telenor – over 250 sites The basis for support would range from developmental support of processes and systems which are utilized not only for Telecenters but also for a more global utilization across the economy. A clear financing model and portfolio risk analysis and framework needs to be developed for other micro-financing institutions (or those like the National Bank of Pakistan) to participate in this Project in a synchronized manner. Funding organizations frequently demand significant accountability and compliance verification, because of this, there is a minimum size of installation below which those reporting costs become prohibitive. That will tend to exclude installations that might be very beneficial in a local community but are too small for the financial infrastructure that is supposed to be supporting the process. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 182 of 279 Telecenters in Pakistan Volume 1 Part 10 Enabling Support Infrastructure 1. Rural Telecommunications 2. Hardware and Software Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 183 of 279 Telecenters in Pakistan Rural Connectivity for voice and Data for the Telecenters and Community Resource and Information Centers In order to create an integrated infrastructure for the delivery of materials and services to the Telecenters and CRICs, a resilient, economical and location agnostic connectivity model is needed. The Telecenters would not only need remote sites to be ready with the core infrastructure (site preparation computers, TV, printers, HR, electricity) but a means of creating interactivity for voice, video and data. Voice could be handled within the IP (Internet Protocol) domain of the connectivity or via separate telephone or cellular lines. Cellular BTSs currently cover over 80% of the demographics where these Telecenters will be deployed. WLL systems are overlaying these areas generally and are able to do more because of the wider RF coverage distances at 450 MHz. In the next 12-18 months, apart from the uninhabited swathes of the desert, forests, mountains and very sparse habitations (less than 3-500 people in very remote areas) almost 85% will be illuminated. The other band of frequencies for the WLL is 3.5 GHz which is primarily WiMAX type of deployments. A few of the licensees have announced roll outs of the 802.16g (nomadic and fixed) the others are holding out for the ratification of the final specifications of the 802.16e (full mobility). This delay will cause the roll out of WiMAX to be sluggish, especially in the urban areas. Data and Internet connectivity While the remote areas may have access to dial up internet of various degrees of reliability the issue is of having access to PTCL copper land lines. Several Telecenters or small size Learning Centers can be covered by dial up connectivity from over 2300 locations (theoretically). This would be at the cost of a local call at single metered unit via dial up to several ISPs and a low hourly charge of use. All expansion for the access network by Etisalat (the new owners of PTCL) is being done almost exclusively on the CDMA Wireless Local Loop. This is similar for the other two large WLL operators (Telecard and World Call). Between the three operators the coverage is patchy and as yet not so reliable. This is due to a variety of Regulatory, financial Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 184 of 279 Telecenters in Pakistan Cellular & WLL Coverage Oct 2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 185 of 279 Telecenters in Pakistan The Cellular and WLL coverage already overlays 75% of the populated area of Pakistan. This coverage will expand to 85% by 2007 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 186 of 279 Telecenters in Pakistan And poor business case models. The total number of WLL subscribes touched 1.12 million across the country and predictions are that another one million customers could be added by the end of June 200737. In absolute terms the total number of WLL subscribers stands at 1,120,439 (PTA figures). PTCL 704,617 WLL customers followed by TeleCard, 247,751, WorldCall 138,071 and Great Bear serving 30,000 connections by the end of last financial year. Generally the data services on CDMA networks are better then the cellular since not only are the charging schemes better but the reliability of services is higher because of the way the CDMA system operates as well as a low loading of these networks as opposed to cellular. This situation may change Transport with time since companies like Telenor have clear Optical Wired Solutions Access objectives of rolling out EPON GiBE EDGE and reliable GPRS PLC xDSL where needed. WPAN / BAN Short Range IrDA Sensors IEEE 802.15x RFID Bluetooth WLAN HiperLAN2 IEEE 802.11x Proprietary solutions LAN ADSL ADSL2 VDSL Ethernet HomePlug Home Plug and Play WiMAX 3.5 GHz WLL HDSL SDSL licensees have as yet to launch services. This is Broadcasting Cellular MBS 60 Mobile DAB basically because of the MBS 40 IEEE 802.20 DVB-T uncertainties caused by the Fixed BWA UMTS CDMA2000 Satellite EDGE MVDS HIPERACCESS controversy between the Broadband PDC GPRS Satellite DECT LMDS DVB-S Fixed (802.16e/g) and the IEEE 802.16-2004 GSM CDMAOne S-UMTS mobile versions (802.16e/WiBro) and the Types of Wireless Broadband systems costs of the CPE Customer Premises Equipment (between US$250-600). This would prove to be an excellent technology to spread Broadband to the rural areas because of its design specifications of 30 Km radius from cell site. However, for practical reasons, this is not an option which can be factored in at this stage. IEEE 1394 Other Wireless Access HomePNA Narrow/ Broadband Wireless Access EIB Powerline Quasi Cellular IEEE 802.16e One option which could serve a huge utility for a national Telecenter initiative would be to have some organization setting up a DVB-S2 type of a VSAT system. VSAT systems come in a wide variety of flavors. All of these types have been deployed in Pakistan in some measure. Predominant amongst these are: SCPC – Single Channel per Carrier MCPC – Multiple Channels per Carrier DAMA – Demand Assigned Multiple Access TDMA – Time Division Multiple Access 37 June 2006 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 187 of 279 Telecenters in Pakistan The key elements of cost in VSAT systems are: The Hub The end user equipment The cost of bandwidth The DVB S2 systems address all these areas very well as the subsequent cost calculations will show. DVB-S2 38 There are already many millions of DVB-S IRDs deployed all over the world. DVB-S2 is designed to benefit from technology advances to meet the more exacting requirements of satellite broadcasting today. This system is optimsed to efficiently use costly satellite bandwidth as well as transport IP packets for voice, video and data with low latency and optimum compression. Costing of systems The Telecenter/CRIC DVB S2 VSAT system design 512 kbps / 128 Kbps Small Remote Site Route 1 Mbps / 256 Kbps Medium Remote Site Route 2 Mbps / 512 Kbps With 32 kbps CIR Large Remote Site Hub 38 Route http://www.dvb.org/documents/white-papers/wp06.DVB-S2.final.pdf Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 188 of 279 Telecenters in Pakistan Since different sizes of remote sites will have to be catered for the system will be dimensioned for a mix of high bandwidth and low band with sites. These are shown above. Following the next section on technical characteristics, is the costing of the system foreseen for the initial deployment. Configuration and Basic parameters AS an example, the initial configuration has been made for a Hub which can handle 500 remote sites. This can easily be upgraded to handle higher number of remotes. The indicative prices are also given in the table of costs, below: Configuration Parameter Type A Type B Type C Type D Type E Number of Terminals 200 125 125 38 12 Data Rate Per Terminal 64 128 256 512 1024 Total Occupied bandwidth Units kbps 13.59 Table of Costs The costs are reckoned in US$ and are converted in the end to Rupees: Cost for Hub 500 CPE Cost per CPE $625,000 US$ 1,200 US$ Cost for Hub 1000 CPE $720,000 US$ Cost for Hub 2000 CPE $810,000 US$ Aux equipment cost BW Cost per KHz/Month 100,000.000 US$ 3 US$ HR and other OPEX HR/month Utilties, etc/month TOTAL HR+Misc OPEX 10,000 3,333 13,333 US$ US$ US$ Estimating monthly operating costs accounting for depreciation and normal operations including the human resource requirements. No account for customs duties and other taxes has been made. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 189 of 279 Telecenters in Pakistan Terminals Total Hub technical operating cost/month HR and Operating cost Bandwidth Total OPEX/month for Hub 500 13,333 40,772 54,105 $ $ $ Monthly Costs Amortised Hub+Aux/CPE 27 $ Amortised CPE 40 $ Opex/month/CPE 108 $ Total Monthly cost per site $ Total Monthly cost per site Rs 175 $ 10,518 The impact of these has been taken over in the Business Plan Models. The cost per month given here is to give a feel for the cost of ownership per month per site. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 190 of 279 Telecenters in Pakistan Hardware & Software support The issue of selecting the right hardware is tightly linked to the software selected for the typical Telecenter, the funds available and the thrust of the services to be delivered from this center. These Telecenters should not use pirated software for reasons ranging from ethical to practical. Most new pieces of software from larger software houses like Microsoft will have critical new features but will need to be genuine for them to be activated or receive the local language support and updates. In those instances where the offer from Microsoft for reduced prices is still not attractive enough, Open source software is proposed. Details are given in the chapter on FOSS. The size i.e. number of PCs on the LAN will determine the issues related to connectivity and hardware needed for the purpose. The hardware needed is not just limited to Computers but also should account for support equipment like UPSs, LANs, printers, cameras, etc. For all these, it will be important to determine the suppliers, the people/vendors who will maintain the hard and software conduct training as well as supply consumables like spare hardware (e.g. keyboard and mice), toners for laser jet printers, paper, etc. Hardware support The key issue of hardware (PC, UPS, LAN, Printers, etc) and their support is critical in the rural areas. The PTA has come into an understanding with three local vendors who will supply the equipment and maintain it as well. Each Telecenter operator is free to choose from these or buy on their own. The second and equally important issue is that of the type of machines used. In the case of FOSS, because of being less resource hungry, these can be Pentium II and IIIs. Refurbished PCs are as low as US$ 100 complete. For the Microsoft software, these machines should be of the latest variety since the software is feature rich and needs a large RAM and HDD. Software support The PTA through its initiatives has created a base for computer procurement and microfinancing of these Telecenters. This needs to be followed through. Hardware requirements for Microsoft or Open source oriented deployments are radically different and are factored in the suggested Telecenter models. It was important to blend in the use of legally procured software as this has considerable merit for support and growth. E.g. the Urdu language plug- Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 191 of 279 Telecenters in Pakistan ins for Microsoft Office is best used in non-pirated software and local languages are key for success in the underdeveloped areas where English education is limited. In this context, we have had extensive discussions with the FOSS (Free and Open Source Software) program. This is being pushed aggressively by UNDP/APDIP who was engaged in detailed dialog via telephone calls and e-mails. The same was done with Microsoft. They (FOSS/FOSSFP and UNDP APDIP-IOSN) have both agreed to provide support for this program. Both were suggested support for local languages as a part of the initiative. Their input is quite comprehensive and is a part of this document. This also includes spreadsheets for the Total Cost of Ownership (TCO) modeling for different scenarios. This also forms the basis of some of the Business Cases for the different types of Community and Telecenters which can be set up in Pakistan. Microsoft offered to give software at a subsidized rate with several free sets of software thrown in. They have also promised to consider a deeper involvement in this project. In both cases, the support costs are to be negotiated. For the FOSS however, this would not be more than local expertise for free upgrades Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 192 of 279 Telecenters in Pakistan Software Support Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 193 of 279 Telecenters in Pakistan Microsoft Discussions with Microsoft yielded the following proposals from them: With reference to our discussion regarding availability of Windows XP and Office 2003 Urdu Language Interface Pack (LiP), please find below the URLs for download. The availability of these LiP can help a lot in the Telecenter project where English only software would not serve the purpose in remote areas. These Language Interface Packs are available for free for customers who own Windows XP and Office 2003 licenses. Windows XP Urdu Language Interface Pack http://www.microsoft.com/downloads/details.aspx?FamilyID=0db2e8f9-79c4-4625-a07a0cc1b341be7c&displaylang=ur Office 2003 Urdu Language Interface Pack http://www.microsoft.com/downloads/details.aspx?FamilyID=ccf199bc-c987-48f5-9707dc6c7d0e35d0&DisplayLang=ur Office 2003 SP2 for Urdu Language Interface Pack http://www.microsoft.com/downloads/details.aspx?FamilyID=db080de8-8193-4c32-90199980ecd6874a&DisplayLang=ur The following was queried from Microsoft: If this software interfaces with what has been already done in Pakistan by Dr. Sarmad (on a funding by UNDP PAN R&D Fund and MoITT) for the lexicon, text to speech, etc., then this is a good way of ensuring that people migrate to non-pirated software as this would then have good value as long as this is not expensive. In this context it will be important to see if this integrates the Urdu software and databases existing (e.g. NADRA, UZT1.0). Since the FAST software and lexicon development has been under government funding and will be freely licensable and available as some form of an Open source model to enable future development in different universities, especially for different regional languages. The document is being prepared on behalf of the Telecenter project, providing guidelines for Tele-center establishment based on partial funding via the USF (Universal Service Fund) is not limited to the Government of Pakistan. On this model anyone can use the Business Case and use funding from a variety of sources (Multilateral Investment Agencies) being key players for large scale funding to eligible large users). Organizations like the Post Office and PSO are ones which are starting this off. Hence, if MS does have plans to so something in this the GoP is obviously an important element in the implementation process but as you will study this all over the world this is primarily driven as Public-Private sector or totally Private sector model for issues related to sustainability. Perhaps we could enable a set of Pilots with the Post Office and PSO. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 194 of 279 Telecenters in Pakistan Responses from Microsoft indicated that they suggested the establishment of two types of Tele-centers with the objective to: a) Deliver services and b) Impart IT awareness/education (bridging digital divide) If we are looking at some of those centers to train community members on utilizing ICT in their own development (Women empowerment, capacity building for youth, entrepreneurs and teachers) then two PCs / center is definitely not enough to conduct training activities. Our suggestion is to have maybe 200 (or whatever number is feasible) Tele-centers housed within Government, municipality or NGOs in communities. Suggested average number of PCs is 10 - 12 PCs depending on the needs of that community it is housed in. Each of those 200 Tele-centers should be linked to 50 kiosks around the same area (total of 10,000) where 1 or 2 PCs are available for e-government as well as other e-services. These kiosks can be housed at Post Offices, PSO outlets or elsewhere as indicated in your proposal already. In case of having Tele-centers with more than 2 PCs, Microsoft can look into establishing IT academies where we can offer certifications on Office applications for teachers, students, entrepreneurs and others. We can provide ICT curriculum, Junior Developer curriculum etc for training needs. Please have a look at following link for Jordan initiative: www.ks.gov.jo On the issue of pricing: The regular price of Windows Professional Operating System and the Office Suite of Application alone would come to about $565/- . However, Microsoft would be able to subsidize this considerably for the Telecenter project, and this price can come down to about $185/. This is a saving of approx. 67%. In addition to this, Microsoft is also considering the bundling of the following products within this price. This will add more value to the knowledge acquisition in these remote areas. 1. Microsoft Encarta - To be used as an encyclopedia to access information 2. ICT curriculum – which can used to impart basic IT training (computer concepts, usage of Windows, Office, Internet, Email etc) at the Telecenters 3. Junior Developer Curriculum – For students starting 8th grade upwards, so that they can initiate their developer training 4. VS Express Edition – This is a set of .NET developer tools which can be used by students as well 5. Funding – Microsoft will also try and get some funds per PC, which can be reinvested by the relevant authority back into the project with some specific predefined guidelines from MS (e.g. training, skill development, etc.) All of the above is contingent on the project, quantities involved, and us getting the required approvals from the Region. However, it would be our objective to get these approvals in the larger interest of the project. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 195 of 279 Telecenters in Pakistan FOSSFP AND APDIP-IOSN FREE AND OPEN SOURCE SOFTWARE (FOSS) FOR TELECENTERS IN PAKISTAN Authored by Fouad Riaz Bajwa (bajwa@fossfp.org) FOSS Advocate - FOSSFP: Free and Open Source Software Foundation of Pakistan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 196 of 279 Telecenters in Pakistan Revision History This section describes the revision history of this document. Date Version Description of Change Author 26 Aug 2006 1.0 Initial Draft Fouad Bajwa 28 Aug 2006 1.1 Second Draft Fouad Bajwa 29 Aug 2006 1.2 Third Draft Fouad Bajwa Fourth Draft Service Provider List Updated 9 Sep 2006 2.0 New case study added Fouad Bajwa Addition of various topics Most content moved to Annexure 12 Sep 2006 2.1 Fifth Draft with data from CATIA including attached spreadsheet and documents covering FOSS and Refurbished Computer Fouad Riaz Bajwa Distribution List This section describes the distribution list for the recipients of this document. Recipient Role / Designation Office Contact Details Salman Ansari Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 197 of 279 Telecenters in Pakistan CONTENTS FREE AND OPEN SOURCE SOFTWARE (FOSS) IN TELECENTERS CHAPTER SUMMARY: 196 201 INTRODUCTION ............................................................................................................................ 203 TYPES OF ICT SERVICES PROVIDED BY TELECENTERS ............................................................... 203 THE CASE FOR FREE AND OPEN SOURCE SOFTWARE VS. PROPRIETARY SOFTWARE IN TELECENTER ENVIRONMENTS 204 WHAT IS FREE AND OPEN SOURCE SOFTWARE? ......................................................................... 204 FOSS AN ALTERNATIVE TO PROPRIETARY SOFTWARE ............................................................... 205 FOSS BENEFITS FOR PAKISTAN ................................................................................................... 205 AFFORDABLE COMPUTING FOR PAKISTAN .................................................................................. 206 ACCESSIBLE COMPUTING FOR PAKISTAN .................................................................................... 206 BRIDGING THE DIGITAL DIVIDE IN PAKISTAN............................................................................. 207 ICT AS A BASE NECESSITY FOR PAKISTAN ................................................................................. 207 RELIABILITY OF SYSTEMS DEVELOPED BY PAKISTANI IT INDUSTRY ......................................... 208 FOSS NATIONWIDE RESOURCE MOBILIZATION.......................................................................... 208 EXTENDING URDU COMPUTING TO ALL CORNERS OF THE COUNTRY: URDU LINUX LOCALIZATION EFFORTS ............................................................................................................. 208 BUILDING THE CASE FOR FOSS IN TELECENTERS 209 TCO TOTAL COST OF OWNERSHIP FOR FOSS VS PROPRIETARY SOFTWARE ...................... 210 TCO CONSIDERATIONS ............................................................................................................... 211 KEY CONSIDERATIONS FOR EVALUATING FOSS VS. PROPRIETARY TECHNOLOGY ................... 211 TCO SUMMARY WORKSHEET ..................................................................................................... 213 A NEW GENERATION OF FOSS TECHNOLOGY: ....................................................................... 216 BENCHMARKING THE USE OF FOSS FOR TELECENTERS BY ESTABLISHING A PILOT LOW-COST FOSS/LINUX LAB ........................................................................................................................ 217 HARDWARE AND SOFTWARE MANAGEMENT CHALLENGES IN A TELECENTER ENVIRONMENT . 219 SUMMARIZING THE ADVANTAGES FOR USING FOSS IN TELECENTERS IN PAKISTAN .......... 219 GLOBAL PARTNERSHIPS FOR SUPPORTING TELECENTER INITIATIVES IN PAKISTAN 220 1. UNDP-APDIP ASIA PACIFIC DEVELOPMENT INFORMATION PROGRAMME TELECENTER EXPERTISE SUPPORT TO PAKISTAN .................................................................. 220 APDIP PROGRAMME STRATEGY ................................................................................................. 220 APDIP DEVELOPMENT OBJECTIVES ........................................................................................... 221 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 198 of 279 Telecenters in Pakistan TELECENTRE EXPERTISE SUPPORT TO PAKISTAN ....................................................................... 221 IFOSSF INTERNATIONAL FREE AND OPEN SOURCE SOFTWARE FOUNDATION 2. FUNDING AND TECHNOLOGY TRANSFER SUPPORT TO PAKISTAN ......................................... 221 IFOSSF MISSION ......................................................................................................................... 222 IFOSSF PURPOSE......................................................................................................................... 222 IFOSSF STRATEGY ...................................................................................................................... 222 TELECENTRE FUNDING AND TECHNOLOGY TRANSFER SUPPORT TO PAKISTAN......................... 222 CASE STUDIES SUPPORTING THE FOSS RATIONALE IN TELECENTRES 223 CASE STUDY 1: USING FOSS IN TELECENTERS ....................................................................... 223 SAO PAULO, BRAZIL — THE TELECENTER PROJECT................................................................... 223 ADDRESSING A VARIETY OF COMMUNITY NEEDS ...................................................................... 223 THE RATIONALE FOR USING OSS ................................................................................................ 223 THE TECHNOLOGY....................................................................................................................... 224 TELECENTERS, CITY MANAGED, ALONG WITH PRIVATE PARTNERS ........................................... 224 LESSONS LEARNED ...................................................................................................................... 224 CASE STUDY 2: USING FOSS TO EDUCATE AS WELL AS COMBAT SOFTWARE PIRACY: ........ 225 GOA (INDIA) SCHOOLS COMPUTER PROJECT .............................................................................. 225 THE PROJECT ............................................................................................................................... 225 USES OF THE SYSTEM .................................................................................................................. 225 THE TECHNOLOGY....................................................................................................................... 225 RATIONALE FOR OSS USE ........................................................................................................... 226 CURRENT STATUS ........................................................................................................................ 226 LESSONS LEARNED ...................................................................................................................... 226 CASE STUDY 3: TELECENTERS USING FOSS WHERE THERE IS NO ELECTRICITY OR TELEPHONES .............................................................................................................................. 227 LAOS — THE JHAI REMOTE VILLAGE IT SYSTEM....................................................................... 227 THE SOLUTION............................................................................................................................. 227 RATIONALE FOR USING OSS ....................................................................................................... 228 LAONUX — LOCALIZED OSS...................................................................................................... 228 STATUS OF THE PROJECT ............................................................................................................. 228 LESSONS LEARNED ...................................................................................................................... 228 CASE STUDY 4: ENHANCING SERVICE DELIVERY, SOCIAL PROTECTION AND LIVELIHOOD SUPPORT FOR THE POOR THROUGH ICT .................................................................................. 229 ANNEXURE 232 PAKISTAN’S CASE FOR SUSTAINABLE DEVELOPMENT WITH FOSS....................................... 232 LESS DEPENDENCE ON IMPORTS ................................................................................................. 232 LOWERED COST OF PURCHASE .................................................................................................... 232 FLOURISHING ICT PRODUCTION WITH LOCAL SOFTWARE DEVELOPMENT................................ 232 INTEROPERABILITY AND AVOIDING MULTINATIONAL VENDOR LOCK-INS ................................. 232 THE CASE FOR PREFERRING FOSS OVER PROPRIETARY SOFTWARE IN PAKISTAN ............ 233 THE FOSS ECOSYSTEM IN PAKISTAN ...................................................................................... 233 FOSS COMMUNITIES OF LEARNING AND PRACTICE ................................................................... 233 LINUX USER GROUPS .................................................................................................................. 234 CIVIL SOCIETY ICT FOUNDATIONS ............................................................................................. 234 INTERNATIONAL SUPPORT THROUGH UNDP-APDIP-IOSN AND IFOSSF ................................. 234 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 199 of 279 Telecenters in Pakistan GOVERNMENT OF PAKISTAN INITIATIVES ................................................................................... 235 THE FOSS BUSINESS CASE ........................................................................................................ 235 LOCAL FOSS VENDOR SUPPORT NETWORKS ............................................................................. 235 THE HUMAN RESOURCE DEMAND AND SUPPLY SYSTEM ........................................................... 237 FOSS SKILLS AND HIGHER EDUCATION INTEGRATION .............................................................. 237 TAKING PAKISTANI FOSS SKILLS INTERNATIONAL ................................................................... 237 FOSS AND INTELLECTUAL PROPERTY RIGHTS ........................................................................... 238 INTERNATIONAL FOSS PARTNERS AND SUPPORT PROVIDERS FOR TELECENTER PROGRAMMES IN PAKISTAN 238 LOCAL FOSS PARTNERS AND SUPPORT PROVIDERS FOR TELECENTER PROGRAMMES IN PAKISTAN 238 FOSS COMMERCIAL VENDORS AND TECHNICAL SUPPORT PROVIDERS IN PAKISTAN 239 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 200 of 279 Telecenters in Pakistan Chapter Summary: With the influx of Information Technology in a globalize world, developed nations have a far exceeding advantage in both sustainable development and socio-economic stability as compared to nations of the developing world. This advantage has formed a divide that is commonly termed as the Digital Divide meaning the visible gap that exists between those who have and those who do not have access to technology including telephones, computers, Internet access and related services. An important part of the digital divide that is usually hidden from the bare eye is computer software. Software is the program or set of instructions that controls the operation of a computer and distinguishes from the actual hardware of the computer. Today there are various forms of Software that differ from each other in the way or through the process that they are developed, distributed, modified and licensed under the copyright laws and intellectual property protection regimes. The most prominent types of software are Proprietary Software, Free Software, Open Source Software and a combination of the last two, Free and Open Source Software usually termed simply as FOSS. Most proprietary software is protected by global Intellectual Property and Copyright Patents which are the methods intended to protect intellectual property of the people who actually invented the software and many legal aspects of computing. These licenses carry high per computer or per user costs which may become unbearable for the citizens of developing countries when compared to the developing world per capita income. A solution to this has emerged in the form of FOSS thus making the clear differentiation between free (FOSS) and non-free (Proprietary or Closed Source) software and their implications to the software end-user. Most non-free software in the world today is not sold, it is licensed. From complex operating systems to tiny games or screen savers, the end users of the software have a license to use it under conditions laid out in an End User License Agreement. This agreement lists out the conditions under which the user can use the software – often restrictions are imposed on the use to which the software can be put. In almost all cases, users are explicitly prohibited from "taking the software apart" to study how it works, cannot modify or improve it, are only allowed to make a single copy of the software (for backup purposes) and are strictly prohibited from giving copies to other people[39]. The Free Software Foundation has introduced the Copy left as a general method using copyright law for making program free software and requiring all modified and extended versions of the program to be free software as well. The simplest way to make a program free is to put it in the public domain, un copyrighted. This allows people to share the program and their improvements, if they are so minded. But it also allows uncooperative people to convert the program into proprietary software. They can make changes, many or few, and distribute the result as a proprietary product. People who receive the program in that modified form do not have the freedom that the original author gave them; the 39 FLOSS Concept Booklet at Wikipedia details the concept of FOSS in a very pragmatic manner clarifying any misconceptions in its ideology related to both usage and software licensing. http://en.wikibooks.org/wiki/FLOSS_Concept_Booklet Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 201 of 279 Telecenters in Pakistan middleman has stripped it away. Also the developers of free software will be forced to compete with improved versions of their own software. Copy left says that anyone who redistributes the software, with or without changes, must pass along the freedom to further copy and change it. Copy left guarantees that every user has freedom, and ensures that somebody does not remove the freedom from free software. To copy left a program, first state that it is copyrighted; then add distribution terms in the form of a license document – they comprise a legal instrument that gives everyone the rights to use, modify, and redistribute the program's code or any program derived from it but only if the distribution terms are unchanged. Thus, the code and the freedoms become legally inseparable. According to the FSF, "Proprietary software developers use copyright to take away the users' freedom; we use copyright to guarantee their freedom. That's why we reverse the name, changing 'copyright' into 'copy left'." The most popular copy left license is the GNU General Public License [40]. This chapter aims at illustrating the benefits and challenges related to using FOSS as an alternative to other software. It also presents examples of FOSS activities from Pakistan as well as case studies where there has been successful use including best practices of the FOSS option in developing countries like Brazil, India etc. This chapter should not be considered as a bias in favor of a single type of Operating System and associated Software like Free and Open Source Software (FOSS) as opposed to Proprietary Software, but as a pragmatic approach to building a business case based on informed choices and ICT software freedoms that Pakistan has when taking steps towards ‘bridging the digital divide’ through employing Telecenter strategies. This text aims to help ICT decision makers in understanding why and where to make the choice between FOSS and Proprietary Software. The opinions stated in this chapter do not necessarily reflect the views of either FOSSFP: Free and Open Source Software Foundation of Pakistan, Ubuntu-Linux [41] Pakistan Team, UNDP-APDIP International Open Source Software Network (IOSN) and the International Free and Open Source Software Foundation (iFOSSF), though it can be concluded that these organizations shall assist Pakistan in the future by facilitating capacity building, awareness raising, localized content development, infrastructure and connectivity development, evaluation and surveys, overall results and trends of this activity. 40 41 Free Software Foundation, GNU General Public License. http://www.gnu.org/copyleft/gpl.html Ubuntu Linux-Distribution, Wikipedia. http://en.wikipedia.org/wiki/Ubuntu_%28Linux_distribution%29 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 202 of 279 Telecenters in Pakistan Introduction A telecenter is a public place where people can access computers, the Internet and other technologies that help them gather information and communicate with others at the same time as they develop digital skills. While each Telecenter is different, the common focus is on the use of technologies to support community and social development — reducing isolation, bridging the digital divide, promoting health issues, creating economic opportunities, reaching out to youths. Telecenters exist in almost every country on the planet, although they sometimes go by different names (e.g. village knowledge centres, infocentres, community technology centres, community multimedia centres or school based Telecenters). [42]. In a discussion on the WSIS telecenter caucus mailing list [43], an attempt was made to provide a definition for Telecenters. More or less, the discussion also summaries the definition provided by Wikipedia. Types of ICT Services provided by Telecenters The definition of a telecenter only varies in terms of the type of services and activities it offers to the community in which it operates. Telecenters can provide telephone services, basic Internet services and can be further extended to include access to fax, phone, and photocopying. Telecenters can also supplement in education and training, health related services such as telemedicine, e-commerce related services including provision of up-to-date farming guidance including weather forecasts and agri-market rates, e-government services including access to information about government funded agricultural and equipment loans etc. Some Telecentre models may also incorporate information kiosks and Internet stations. Schools may also use their computer labs as Telecenters after school hours commonly termed as School-based Telecenters (SBTs). Other forms of Telecenters have also emerged where they are not restricted to one location and are housed in trucks or large vans that travel from a remote rural village to the other. This telecentre mode is called Mobile Telecenters (MTs). Regardless of their location, model or different configurations, all telecentre models have feature in common that they use ICTs Information Communications Technologies to provide a range of electronic services leveraging a shared and inclusive access model for communities in which they operate. Most of the services provided by a Telecenter will consist of provision of computer hardware with servers networked to desktops installed with software to operate the hardware and access to the Internet to maintain and upgrade the software as well as provide communication services to the stakeholders. Wikipedia, 2006, http://en.wikipedia.org/wiki/Telecenter Greennet Mailing List, http://mailman-new.greennet.org.uk/pipermail/telecentres/2004October/000245.html, until now there is no one clear definition for Telecenters and the details on the types of ICT services that can be extended through them, this also various from LDC to Low Income Countries as well as there are examples from the developed world where Telecenters are still be deployed in marginalized communities. 42 43 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 203 of 279 Telecenters in Pakistan Summarizing, Telecenters aim to provide one or more of the following services [44]: 1. 2. 3. 4. 5. 6. Access to telephones and faxes Access to e-mail Access to the Internet Other information services Other developmental support services to meet basic needs Education in “Information Age’ skills. The Case for Free and Open Source Software vs. Proprietary Software in Telecenter Environments What is Free and Open Source Software? Free/Open Source Software (F/OSS) or Free & Open Source Software (FOSS) is software for which the human-readable source code is made available to the user of the software, who can then modify the code in order to fit the software to the user’s needs. The source code is the set of written instructions that define a program in its original form, and when it’s made fully accessible programmers can read it, modify it, and redistribute it, thereby improving and adapting the software. In this manner the software evolves at a rate unmatched by traditional proprietary software. For many years FOSS has been building momentum. Beginning amidst the technical cultures that produced the Internet and World Wide Web, it is now causing quite a stir in the commercial world as large software corporations are finding themselves competing against commercially available open source software. This new demand for free and open source software has generated great interest among the scholars and researchers in disciplines ranging from sociology to economics to social psychology, and has raised questions in fields of application ranging from innovation processes to strategic management. This interest has helped in advocating the usage of FOSS in the both Public and Private sectors mostly benefiting the non-for-profit sectors in developing countries. The United Nations has initiated various programmes promoting FOSS in member states including the launch of the UNDP-APDIP International Open Source Network IOSN [ 45 ] as well as exploring the opportunities to adopt FOSS within its own system [ 46 ]. UNESCO has extended FOSS resources to member states by partnering with Free Software Foundation [47] Jensen, M and Esterhuysen, A (2001, pg. 11). The Telecenter Cookbook for Africa, How to Establish a Multi-purpose Community Telecentre in Africa. CI-2001/WS/2. United Nations Educational Scientific and Cultural Organization Paris, 2001. 45 UNDP-APDIP International Open Source Network, http://www.iosn.net 46 UN 2005. United Nations Joint Inspection Unit. Reports on Open Source Software for Development and in the Secretariats http://www.unsystem.org/jiu/en/reports.htm (07/09/06) 47 Free Software Foundation FSF, USA. http://www.fsf.org. 44 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 204 of 279 Telecenters in Pakistan providing an online portal [48]. UNCTAD has developed a FOSS Partnership programme and has signed MoUs with the Government of Brazil and FOSSFP The scope of the MoUs will focus on developing human capacity to use, customize, localize, develop and service free and open source applications. Establishing new and contribute to existing conduits and structures for collaborative software development and distribution, and improving the quality of national and international policy formulation on the issues related to free and open source software are important issues as well [49]. Today various organizations continue to promote initiatives supporting the adoption, development and use of FOSS for humanitarian development around the world. FOSS an alternative to Proprietary Software Due the positive activity over the last few years FOSS has emerged as an alternative to Proprietary Software. It is also being presented as a viable solution to Pakistan's digital divide issues. FOSS comes with a number of rights that distinguish it from proprietary software, including access to the source code in order to make modifications; the right to use and share it freely; and is usually available without license costs. A variety of global interest groups such as the Information Communication Technology industry, multinational software vendors and industry associations, academia and civil society are increasingly lobbying their governments to take action. The suggestions that are being put forward range from mandating the exclusive use and procurement of FOSS to a completely unregulated free-market approach, and they watch every government decision and statement closely. The international Free and Open Source Software groups including the United Nations International Open Source Network UNDP-IOSN [50] and FOSSFP: Free and Open Source Software Foundation of Pakistan [51] have urged the Government of Pakistan to define its position regarding the inclusion of FOSS in to the activities of the Public and Private Sectors leading to the provision of software ICT freedom for the citizens of Pakistan. The Government of Pakistan has taken in to account a large number of steps to promote FOSS and prevent software piracy by providing FOSS to the general public as an alternative to pirated proprietary software. FOSS benefits for Pakistan The interest in FOSS for Pakistan comes from the freedom and independence to use software, contribution to making computing affordable (in terms of cost), and accessible (in terms of usability), there are also the advantages of providing more options for the user, the UNESCO Free & Open Source Software Portal. A gateway to resources related to Free Software and Open Source Technology movement. http://portal.unesco.org/ci/en/ev.phpURL_ID=12034&URL_DO=DO_TOPIC&URL_SECTION=201.html 49 UNCTAD FOSS Partnership. http://r0.unctad.org/ecommerce/fosspart/partnersfp.htm 50 UNDP-APDIP IOSN International Open Source Network, http://www.iosn.net 51 FOSSFP: Free and Open Source Software Foundation of Pakistan, http://www.fossfp.org 48 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 205 of 279 Telecenters in Pakistan ability to leverage local and global expertise for solution development, and being able to contribute back to the international community our own developments. Free access to source code also enables collaborative development (including testing and bug fixing) - a methodology that has become characteristic of open source developer community. Individuals and their ideas are more visibly recognized in the open source model. Almost all major free and open source systems have an associated 'inventor', unlike the proprietary systems, which are known essentially by the name of the vendor. Many feel that this adds to the strength of the FOSS model by recognizing the individuals for the contributed intellectual property. This opens the path for Pakistan to develop solutions according to its regional requirements and per capita income affordability of its citizens. Affordable Computing for Pakistan For the common man as well as the academic, public and private sector institutions, the interest in the FOSS model, is primarily because of the perception of a low cost of ownership. Two major factors translate to substantial reduction in cost of building software solutions, namely, that much of the FOSS is available free of cost, and that one could modify or adapt them to one's requirement without violating any conditions from the developer/vendor. When purchased, the basic software for any computing system, such as operating system and office suite cost many times the annual income of an average citizen in Pakistan. Once these costs are reduced to almost nothing through the use of open source software, the computing cost reduces to primarily the hardware cost. The Free and Open Source Software community has been able to show convincingly that despite being free, the software achieves a reliability and usability rating as high as commercial software of a similar nature. Even mission critical applications are today running on Free and Open Source Solutions. This feature also provides the Government to promote cost effective computing within its infrastructure to direct savings from software to extension of better services to its citizens. Accessible Computing for Pakistan As computing technology plays a utility role as an essential component of a good quality of life, it is important that cultural and language barriers do not prevent proper use of such technology. This requires software like e-mail management, word processors, browsers, spread sheets, entertainment tools, etc to provide a comfortable interface that suits its users. All software developers, today, recognize the need for tailoring (localize) software to linguistic and cultural requirements. Commercial developers and vendors can afford to do this only for large communities. Localization efforts have borne more fruits in the case of Free and Open Source Software systems, compared to proprietary solutions. For example, while Windows offers support for about 20 languages, the popular FOSS desktop environment Ubuntu-Linux is today available in over 40 languages and more in pipeline. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 206 of 279 Telecenters in Pakistan Similarly the FOSS Office suite supports over 30 languages with more in the process of being supported. These include some of the rare languages spoken or used by small communities - unlikely targets for proprietary developers. The access to source code and a wide community of developers knowledgeable about the source are major factors in enabling large scale efforts to localize the system for various communities. Even relatively small communities are able to enter into such efforts, which would not be viable for commercial vendors to undertake. Bridging the Digital Divide in Pakistan A combination of accessible and affordable computing for Pakistan shows relevance of FOSS in bridging the digital divide. Even at the best price in the market, computing systems will be beyond the reach of majority of Pakistanis due to our low income. Free software reduces cost of computing systems significantly. Coupled with movements towards low-cost PC, we can now aim to have computer systems which are affordable. Pakistanis speak many different languages, all quite different from English. The English speaking community in Pakistan is not even 10% of the population. Reaching out to communities who are using less common languages is possible only by localization efforts put in by volunteer groups like FOSSFP: Free and Open Source Software Foundation of Pakistan through Ubuntu-Linux in Urdu [52] Language [53]. This has only been possible by using FOSS. Along with languages, the cultural diversity in Pakistan is also high. Conventions (including symbols, gestures, etc) in one part of the country may convey a different interpretation elsewhere. These impact the use of messages, icons, and interaction in software systems. While localization efforts are yet to address such cultural variations on a larger scale, this is a strategically important emerging area, as information and communication technologies are reaching out to the masses. ICT as a Basic Necessity for Pakistan Information and communication technologies are gradually becoming an essential ingredient in one's life, irrespective of one's education, career and life style. As an important enabler for quality of life, it needs to be available widely without restriction. One could, perhaps, compare this to utility infrastructure such as roads. It is important that these are available easily and at affordable terms. Proprietary vendors, with business and profit as the bottom line, can not be relied on to provide this. FOSS model is, so far, the only viable model. It also encourages volunteer efforts to develop the resources further to meet short falls as and when they are noticed. 52 53 Urdu Support, Wikipedia, http://ur.wikipedia.org/wiki/Ubuntu_Linux_Localization Ubuntu Linux Urdu Localization, Wikipedia, http://ur.wikipedia.org/wiki/Ubuntu_Linux_Localization Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 207 of 279 Telecenters in Pakistan Reliability of Systems developed by Pakistani IT Industry FOSS model contributes to the general security of systems in two significant ways. Firstly the deploying organization has access to the source code, and hence can, if needed, study the same to find out possible risks and unauthorized modifications. There is also the option of modifying the source code, if adequate competency is available, to correct any potential risks. Secondly users are not dependent on a system owned and controlled by one particular vendor. A wide community of knowledgeable people ensures more reliability and sustainability for the system than would be possible in the case of proprietary software. At a national level, this can be viewed from a broader angle. Having much of its critical computer systems work on proprietary platforms, makes the entire infrastructure vulnerable to the corresponding vendors. As new versions of software are released, old [ 54 ] [ 55 ] [56]versions are no longer supported, and users often have no option but to migrate to the new version irrespective of his/her interest in the new version, for fear of losing support. While they may provide localized versions of their products today, there is no guarantee of all their future offerings continuing to do the same. With FOSS, one has the option of undertaking this work, on one's own, if required. FOSS Nationwide Resource Mobilization FOSSFP has devised a nationwide program as an immediate way to engage in FOSS development by creating volunteer Linux and FOSS user groups within universities, colleges, schools, companies and online mailing lists to share personal experiences by contributing information and case studies regarding the use of FOSS in various business and community environments and list them as FOSSFP chapter programs [57]. Secondly, since Ubuntu-Linux is freely available by ordering online from [58], everyone irrespective of their location can order CDs and share them with their family members, friends and colleagues since it is free, has free online technical support and documentation including 6 month upgrades and three year continued support by the FOSS community worldwide. Extending Urdu Computing To All Corners of the Country: Urdu Linux Localization Efforts Apart from operating systems and general business applications, FOSS has immensely contributed to human and social development through applications that empower individuals, promote economic growth, reduce inequality, support human rights, gender empowerment, microfinance development, employment creation, news sharing, information and knowledge dissemination etc. [59] RULE,Run Up-to-Date Linux Everywhere, Wikipedia, http://en.wikipedia.org/wiki/Rule-project Rule Project official website, http://www.rule-project.org 56 Xubuntu is a derived from Ubuntu and runs on low specification desktops, http://www.xubuntu.com 57 FOSSFP Chapter Programme, http://www.fossfp.org/chapters 58 Ubuntu-Linux, Free CD Shipment, http://shipit.ubuntu.com 59 Bajwa, F. Tune Your Brains. SPIDER. September 2006. http://www.spider.tm/sep2006/cstory1.html 54 55 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 208 of 279 Telecenters in Pakistan Along with the low-cost and free-of-cost models of FOSS, its greatest benefit particularly for Pakistan is that FOSS can be localized into the 70 regional languages spoken in Pakistan. The Urdu Language is spoken globally by 60 million people and localization means making available versions of FOSS that use Urdu, Punjabi, Sindhi, Balochi, Pushto, Sariki, Himalaya as an alternative to the widely available software interfaces in English linguistics. Similarly, the availability of localized Graphical User Interfaces or visual display can be further worked upon to develop localized computing and programming in Urdu including typing in domain names in Urdu (Localized DNS) into web browsers to access localized web resources over the Internet. Urdu localization efforts are being carried out by Pakistanis online [60] from virtually global locations. The most widely accessible and usable tool to localize the Linux Operating System Ubuntu distribution is called Rosetta available at [61] with more information about this effort detailed at the public wiki [62]. Pakistanis are volunteering by donating their time and efforts to share the translation activity covering over 1168 localization translation tasks. An available set of documents that describe the step by step localization process for any Linux distribution into Urdu Language are available at [63]. At a regional level, to support localization, the regional BytesForAll FLOSS Localization Consortium [64] gathers and brings together FOSS resources for carrying out localization efforts for various regional languages spoken in South Asian countries similarly extending this support out to other regions. These resources are engaging the Pakistani academia, researchers, civil society and business and industry to adopt FOSS development and technologies for ICT based production. The strategy is to embrace the innovation opportunities that FOSS extends. With source code in ones hand for every FOSS program available today, Pakistan can develop extensive and highly marketable products at virtually no software costs for global markets. Similar business opportunities are available for extending the software freely without any licensing costs while charge for supplementary services built around the product including hardware, networking, consultancy, training, trouble-shooting, debugging, maintenance and upgrades through patches. Building the Case for FOSS in Telecenters With a growing and nurturing FOSS Ecosystem in place within the country, Pakistan can extend FOSS and computing to all the rural regions in the country. This will not only provide digital access and reduce the digital divide between rural and urban regions; it will add to a new wave of innovation with poverty alleviation through education and ICTs. It will also help in reviving Pakistan’s sluggish IT Business and Industry through providing more opportunities to the industry to engage with rural Insourcing activity and vice versa. Launchpad, https://launchpad.net/people/ubuntu-l10n-ur Rosetta, Online Translation System, https://launchpad.net/distros/ubuntu/dapper/+lang/ur 62 Ubuntu-Linux Urdu Language Distribution, https://wiki.ubuntu.com/UbuntuUrduTranslators 63 Urdu Linux Downloads, http://www.fossfp.org/ullpdownloads 64 BytesForAll, FLOSS Consortium, http://groups.yahoo.com/group/bytesforall_floss 60 61 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 209 of 279 Telecenters in Pakistan Adopting FOSS, developing commercial grade products for foreign markets, disseminating world class FOSS education and research will position the country in the future as the most experienced FOSS knowledge workers and product developers worldwide as well as bridge the digital divide and create value addition to the nation’s IT struggle. TCO Total Cost of Ownership for FOSS vs Proprietary Software Total cost of ownership (TCO) is a financial estimate designed to help consumers and enterprise managers assess direct and indirect costs related to the purchase of any capital investment, such as (but not limited to) computer software or hardware. A TCO assessment ideally offers a final statement reflecting not only the cost of purchase but all aspects in the further use and maintenance of the equipment, device, or system considered. This includes the costs of training support personnel and the users of the system, costs associated with failure or outage (planned and unplanned), diminished performance incidents (i.e. if users are kept waiting), costs of security breaches (in loss of reputation and recovery costs), costs of disaster preparedness and recovery, floor space, electricity, development expenses, testing infrastructure and expenses, quality assurance, incremental growth, decommissioning, and more. Therefore TCO is sometimes referred to as total cost of operation [65]. In short, TCO represents a calculation of how much technology costs to implement and maintain over time. The case to determine the TCO benefits on FOSS over Proprietary or Closed Source Operating systems and software applications depends on a number of factors. This document presents two TCO considerations. First a simple TCO consideration from NOSI Nonprofit Open Source Initiative [ 66 ] and a second more complex TCO Consideration including a detailed case study an calculation spreadsheet developed by Open Source Research, South Africa [ 67 ] for “Catalyzing Access to ICTs in Africa (CATIA)” programme [ 68 ]. The CATIA study, entitled "Paying the Price?", considers the key cost differences in owning new and refurbished PCs over five years in a small business, NGO or school in Africa. It discusses issues that set the context for a TCO consideration - such as PC quality, brand position in Africa, pricing, distribution, and specifications - before isolating the key drivers or factors that are likely to make a difference in ownership costs. By considering these key comparative TCO drivers, it provides a guideline for organizations facing a technology choice between new and refurbished PCs. A comparative TCO calculator has also been developed for calculating projected costs. The TCO study forms part of Component 2a (Open source software and low cost computers) of the Catalyzing Access to ICTs in Africa (CATIA) programme. CATIA is a three-year programme of the Department for International Development (DFID) in close collaboration with other donors and role players.[69] [70] [71]. Due to the nature and breadth of the CATIA documents, the items are available for both download and accompanied with this document as attachments. Total Cost of Ownership, Wikipedia, http://en.wikipedia.org/wiki/Total_cost_of_ownership Nonprofit Open Source Initiative. http://www.nosi.net 67 Open Source Research, South Africa. http://www.openresearch.co.za 68 Catalysing Access to ICTs in Africa (CATIA) programme. http://www.catia.ws 69 Open Source Research, South Africa CATIA TCO study (.pdf 560kb) http://www.openresearch.co.za. TCO_Study_Open_Research.pdf 70 Open Source Research, South Africa CATIA TCO study (.pdf 560kb). http://www.openresearch.co.za/TCO_Appendices_Open_Research.pdf 71 Open Source Research, South Africa CATIA TCO calculator (zipped 174kb). http://www.openresearch.co.za/TCO_Calculator_Open_Research_Zipped.zip 65 66 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 210 of 279 Telecenters in Pakistan TCO Considerations According to (NOSI, 2004) [72], TCO is a calculation of the entire cost of implementing a technology solution. This includes the initial cost of acquiring the software (purchase price or license fees), hardware costs, installation costs (staff time or consultant costs), end-user training costs, and the cost of maintaining the software (annual maintenance fees, support costs, and upgrade costs). This entire spectrum of costs should be considered when comparing any two solutions, whether one, both or neither is FOSS. The most obvious places where FOSS has an advantage in terms of costs are in the software acquisition costs, maintenance costs, and upgrade costs. FOSS is almost always freely available, usually has no license fees or annual maintenance fees (there are some exceptions, although they are not mandatory fees – they are generally for support) and upgrades are also generally free. However, the acquisition costs of many kinds of software packages are far outweighed by the other kinds of costs (consultant time, staff training, administration, etc.), so software that is free is not necessarily less expensive in TCO terms than software that one has to pay for Key Considerations for Evaluating FOSS vs. Proprietary Technology NOSI provides the following questions to consider while evaluating the TCO of FOSS vs. Proprietary Technology: Compatibility • What are the software applications critical to your organization? • What operating systems will they run on? Software Acquisition Cost • With a proprietary solution, how large will software acquisition costs be relative to other costs? • With a proprietary solution, how easy will it be to get discounted software? Implementation Costs • What is the ease of implementation in terms of resources needed (time and money)? • What kind of expertise might be needed for this software, whether it is proprietary or open source? • What kind of expertise do you have available? 72 Michelle, M, Cowan, R, Silvers, R, Schneiderman, A, Hickman, A and McClelland, J. 2004. Choosing and Using Open Source Software. NOSI Nonprofit Open Source Initiative: 6-10. http://www.nosi.net/primer/NOSIPrimer.pdf#search=%22nosi%20primer%22 (06/09/06) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 211 of 279 Telecenters in Pakistan Hardware Costs • Is this a situation where you may need multiple servers? • Does the proprietary software being evaluated have any special hardware requirements? Does it require vendor-certified hardware? Training Costs • Will implementing this software (whether OSS or not) require end-user training? • Will you rely on in-house staff to support this solution, and if so, what is their current knowledge of the solution? Maintenance Fees • Does the proprietary alternative require annual maintenance fees? Upgrade Fees • How often might you need to upgrade this software? • Are upgrades available at a nonprofit discount, and if so does your organization qualify? Administration & Support • What sources of support are available for the open source option? • How would they fit into your overall IT support strategy? • How important a factor is reliability in your choice of solution? • Are viruses and other security problems common with the proprietary option? The answers to the above questions are subject to the strategic partnerships and value that the Telecenter project in Pakistan will develop in accordance with support from local and global partnerships. This is considerable significance since Telecenters of all varieties are expected to come up in very large numbers in places like the Pakistan Post, adjunct to existing businesses like PSO petrol pumps, set up by Telecommunications companies under the USF (Universal Service funds). A majority of these will be in the Rural areas where funding for a large number of these for CAPEx and OPEx, will be hard to come by. Service delivery of e-Government will be done via these Telecenters and will need considerable compatibility in terms of language support, etc. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 212 of 279 Telecenters in Pakistan TCO Summary Worksheet NOSI provides the following worksheet to facilitate calculating the TCO of a FOSS vs. proprietary technologies Proprietary Solution FOSS Solution Software Costs Hardware Costs Installation Costs Training Costs Upgrade Costs Maintenance Costs Support Staff NOSI Example: File/Mail/Web Server providing mail for 25 users with a 4 year investment period Proprietary Solution FOSS Solution (Windows 2003 server with Exchange) (Knoppix, Debian, Suse or Fedora Linux)1 Windows 2003 Server: $30. 25 client access licenses: 25. Software Costs Symantec Antivirus: 20. (These rates available only to nonprofit groups 0 purchasing via Discount Tech) Hardware Costs 1,304 1304 4 hours = 300 4 hours = 300 Training Costs 2 0 0 Total Installation Cost $1,679. $ 1,504. Upgrade Costs 3 $ 55 $0 Maintenance Costs 4, 5 $3,600. /yr x 4 years = $14,400. $1,800/yr. x 4 years = $7,200. (Consultant at $75/hr.) (average of 4 hours/month) (average of 2 hours/month) Total (over 4 years) $16,134. $8,804. Installation Costs (Consultant at $75/hr) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 213 of 279 Telecenters in Pakistan 1. There also exist commercial distributions such as Red Hat Enterprise or SuSE that range in cost from $80 upwards depending on levels of support and inclusion of proprietary high-end features. However, for the purposes outlined here, any distribution listed above will have the necessary features. 2. Since this is server software, there will be no training implication for end users. 3. Based on the assumption that upgrading the OS in 2 years or so will cost the same as the acquisition cost – which is not always the case. 4. This estimate is based on the assumption that regular, scheduled maintenance will take place. 5. The assumption that Linux maintenance will take fewer hours than Windows maintenance is based on the information in one of the case studies, and is borne out by the experience of four of the authors of this primer who have experience with both operating systems. This worksheet may be customized according to the prices of hardware and software licensing prevalent in a region. In the scenario of Pakistan, there is an option to choose from four types of computer hardware available from urban markets including: 1. Branded expensive hardware from multinationals such as IBM, HP and ACER etc. 2. Branded less-expensive hardware from local assemblers such as INBOX, Jaffer Brothers etc. 3. Non-branded imported less-expensive hardware available throughout the country 4. Refurbished branded low-cost hardware available in the form of import edcontainer lots. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 214 of 279 Telecenters in Pakistan Pakistani Example: File/Mail/Web Server providing mail for 4 users with a 4 year investment period Proprietary Solution FOSS Solution (Windows 2003 server with Exchange) (Ubuntu, Edubuntu and Xubuntu Linux)1 Windows 2003 Server: Rs. 6000. Software Costs 4 client access licenses: 4000. Symantec AntiVirus: 4000. 0 (These rates are an estimated amount yet to be confirmed) Hardware Costs Installation Costs Rs. 40, 000 (New Hardware) 4 hours = 4000 Rs. 6,000 (Single Refurbished Hardware) 4 hours = 4000 (Consultant at Rs. 1000/hr) (Rates will be subjective to Vendor Contract) (Rates will be subjective to Vendor Contract) Training Costs 2 0 0 Total Installation Cost Rs. 58,000. Rs. 10, 000 Upgrade Costs 3 Rs. 4000 Rs. 0 (Unlimited Upgrades) Rs. 88000. /yr x 4 years = Rs. Rs.36000 /yr. x 4 years = Rs.. (Consultant at Rs. 1000/hr.) (average of 4 hours/month) (average of 2 hours/month) Total (over 4 years) Rs. 352, 000. Rs. 144, 000. Maintenance Costs 4, 5 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 215 of 279 Telecenters in Pakistan 1. FOSSFP and the Ubuntu-Linux Pakistan Team will be providing free Server and Desktop versions of Ubuntu, Edubuntu or Xubuntu Linux that have the necessary features comparable to that of Windows including additional software such as multimedia support with audio/video, software for schools and kids, graphic design, Open Office Suite, Fire Fox Internet Web Browser, Evolution Email, DHCP, Squid, Send Mail, VOIP, SIP and free Anti-Virus Software. The latest Linux kernel has the built-in ability to detect most commonly used USB devices including IDE’s and Printers. Where such facility is not available, information on USB "Device Driver Support" in Linux is widely available for Host Controllers, Device Controllers, Class Drivers as well as Vendor Device Drivers for Imaging, Multimedia, Network, Ports [ 73 ][ 74 ][ 75 ][ 76 ] etc. Compatible Tools [ 77 ] provides Linux driver information and resources on over 19887 products covering Storage, Audio, Communications, I/O, Computers, Scanners, Printers, Monitors, Networks, Video and other devices including BIOS, UPS, batteries etc. Certain tools for citizens with special needs can also be made available under various non-profit relationships where ever such a need may arise. 2. Since this is server software, there will be no training implication for end users. 3. Based on the assumption that upgrading the OS in 2 years or so will cost the same as the acquisition cost – which is not always the case. 4. This estimate is based on the assumption that regular, scheduled maintenance will take place. 5. Based upon the NOSI Primer’s authors who have experience with both operating systems. The assumption that Linux maintenance will take fewer hours than Windows maintenance is based on the information in one of the case studies. The above worksheet may also be utilized for calculating client/desktop PCs, single Linux server environment with multiple diskless clients under LTSP, networking, printer, accessories, photocopier, and fax equipment costs. A new Generation of FOSS Technology: FOSS has now evolved into mainstream enterprise business. The FOSS advantage is widely recognized when organizations plan to buy or replace infrastructure products. FOSS USB Linux Driver Support Information, http://www.linux-usb.org/devices.html Linux-USB Gadget API Framework, The <linux/usb_gadget.h> API makes it easy for peripherals and other devices embedding GNU/Linux system software to act in the USB "device" (slave) role. http://www.linuxusb.org/gadget 75 USB & USB 2.0 Help and Information. http://www.usbman.com/linuxusb.htm 76 Fliegl, D. Programming Guide for Linux USB Device Drivers. Department of Informatics. Technische Universität München http://www.lrr.in.tum.de/Par/arch/usb/usbdoc/ 77 Compatible Linux is a one-stop reference for Linux Device and Driver Compatibility covering over 19887 devices. http://compatiblelinux.org 73 74 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 216 of 279 Telecenters in Pakistan supports and strengthens this decision by providing products and alternatives on the basis of accepted open standards [78] specifically supporting interoperability and integration. FOSS provides the opportunity to build software in half the time vs. proprietary software through reusable code availability, buying open code or rewrite applications without infringing Intellectual Property Rights. FOSS facilitates the deployment of technology solutions in new areas, such as suppliers, channel, and customer access, community access, call centers, and retail outlets and shops thus in terms of Telecenter deployments, it enables empowerment of the community learns to benefit from its immense potential. Today FOSS and particularly Linux is well supported by almost all international software and hardware manufacturing companies including IBM, Hewitt Packard, Red Hat Acer, Canonical (Ubuntu) [79], Novell (Open Suse) etc. This ensures the wide availability of Linux compatible hardware FOSS has proved to be more dynamic in terms of network identification, scalability, interoperability and is the preferred platform for deployment of Internet and Wireless networking infrastructures. FOSS supports all of the latest wireless technologies including Wi-Fi, WIMAX, and CMDA services. Details on the Wi-Fi support available on various operating systems can be accessed at Wikipedia [ 80 ] as well as for over 421 devices at Compatible Linux [81]. All Linux communities and vendors provide a detailed list of the type of Wi-Fi / Wireless hardware cards supported as well as their versions. An example of Wi-Fi hardware card support can be read at the Ubuntu-Linux community website [82] including the versions it supports [83]. FOSS is not limited to just this. With Linux and the ability to strip out the unwanted programs from over 24000 software packages, a version of Linux can be created that can be booted from a flash drive and only support services that support wireless technologies. Latest versions of Red Hat Linux, Suse Linux and Ubuntu-Linux automatically detect network settings over the LAN as well as Wi-Fi settings however the ESID must be provided that varies from service provider to service provider. Benchmarking the use of FOSS for Telecenters by establishing a Pilot Low-Cost FOSS/Linux Lab In order to explore the software and hardware requirements of a Telecenter initiative, lowcost pilot FOSS/Linux Labs can be established to benchmark the use of FOSS and Linux applications in a proposed Telecenter environment before engaging in practical deployments, such a lab can also serve as identifying the challenges that may appear during practical implementations as well as provide a platform for carrying out trainings for stakeholders and Telecenter administrators. Hoe, S, H and Quinn, J, P. Free/Open Source Software: Open Standards. UNDP-APDIP, Elsevier, 2006. http://www.apdip.net/publications/fosseprimers/foss-openstds-withcover.pdf 79 Hardware Supported by Ubuntu-Linux. https://wiki.ubuntu.com/HardwareSupport 80 Wi-Fi, Wikipedia. http://en.wikipedia.org/wiki/Wi-Fi 81 Compatible Linux Wireless Device support. http://compatiblelinux.org/categoria.jsp?catsubcat=1,3 82 Ubuntu-Linux Wi-Fi Support, https://help.ubuntu.com/community/WifiDocs/WirelessCardsSupported 83 Ubuntu-Linux Wi-Fi Support, https://help.ubuntu.com/community/WifiDocs/WirelessCardsByVersion 78 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 217 of 279 Telecenters in Pakistan The Pilot Telecenter Low-Cost Linux Labs can be established within a range of Rs. 100,000 to Rs. 200,000 within a period of 4 weeks to display the benefits of using FOSS and Re-furbished computers to PTA, PSO and MoITT using Ubuntu-Linux Server and Desktops, one server machine, four client desktop machines, one switch, networking cables and various hardware accessories to be used within this environment. A FOSS Lab will serve as a resource for: 1. Demonstrating FOSS products and practices, and their operation and features, for users and professionals who are interested in experiencing working software before using it. 2. Sharing the advantages of FOSS to other non-profit executives who want to understand what FOSS has in store for the advancement of their organizations as well as deploying similar Telecenter environments. 3. Demonstrate the use of low-cost Linux networking solutions including Linux Terminal Server Project by connecting 4 client keyboards, mouse and monitors to a single Linux Terminal Server. 4. Demonstrating the use of Ubuntu-Linux Localized Urdu version, Edubuntu Server and Work Stations and Xubuntu on low specification used machines. 5. Identifying internal systems and people who already have been successful working with FOSS. 6. Developing FOSS to problems in the organization that can be assembled from these products and practices. 7. Training professionals, developers, and system administrators, who want to evaluate FOSS and learn to use it. 8. Testing FOSS system operations – for instance, to check vendor claims, make sure elements work together, and practice migrations and connectivity with a diverse range of networks including LANs, MANs and WANs as well as latest wireless technologies. 9. Benchmarking FOSS capacity and performance – for instance, Operating System performance in requests/seconds, or the number of users supported by a directory. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 218 of 279 Telecenters in Pakistan Hardware and Software Management Challenges in a Telecenter Environment A low-cost pilot FOSS/Linux Lab can also be established to demonstrate, test and overcome the following Telecenter environment challenges: 1. Computer hardware assembling and software installation knowledge. 2. Networking, cabling, network trouble shooting and maintenance. 3. Computer hardware, fax machine, photocopier, printer maintenance and repair. 4. Equipment security and protection 5. Backup UPS support to counter irregular electricity and power surges that may corrupt software and affect hardware 6. Shortage of staff and unskilled volunteers, lack of specialized software if not using FOSS 7. Capacity to assess community needs on a continuous basis and upgrade/add more services, adequate availability of Internet connectivity is required to download free updates on FOSS enabled hardware equipment 8. Possibilities for deployment and maintenance of Wireless or Wi-Fi Community Networks, experienced manpower to provide technical support on an ongoing basis Summarizing the Advantages for using FOSS in Telecenters in Pakistan 1. FOSS has made available Server and Desktop Operating Systems with a wide range of business software suites that cost less for licensing, less for hardware, and no additional for staffing and support. 2. FOSS is software development model that has evolved over the last 3 decades to provide a reliable, robust, scalable and secure platform for computing being widely used throughout the world by Academia, Public and Private Sectors. 3. FOSS continues to be developed worldwide by communities of software developers and engineers in research centers, universities, companies and civil society that provide continuous support round the clock through system and security patches and upgrades Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 219 of 279 Telecenters in Pakistan 4. FOSS has presented itself as an internationally accepted and viable solution due to its low and effective cost model, ability to employ local talent relying less on foreign expertise, and capacity for localization in to regional languages with the availability of various distributions of Linux in Urdu. 5. Pakistan has a growing community of skilled FOSS professionals and Human Resource development support is readily being made available by the Government and Academia to support a nationwide FOSS demand and supply ecosystem 6. FOSS provides the facility to observe, correct, and modify the source code that the hardware is using to run maintaining concerns such as privacy and user security 7. FOSS supports the globally accepted and supported Open Document Format as well as supports reading and writing documents written in other proprietary formats including MS Word etc. 8. FOSS does not have any licensing issues to manage preventing software piracy 9. FOSS provides the facility to choose from a wide mix of software products from different platforms, vendors, and service providers 10. FOSS provides Intellectual Property Protection and the facility to protect personal integrations and customization. Global Partnerships for Supporting Telecenter Initiatives in Pakistan 1. UNDP-APDIP Asia Pacific Development Information Programme Telecenter Expertise Support to Pakistan APDIP Programme Strategy In collaboration with National Governments, APDIP seeks to assist national and regional institutions in Asia-Pacific to improve access, knowledge-sharing, networking, and management, and application of ICTs for social and economic development. APDIP also helps to target and focus regional ICT initiatives to achieve relevant development goals by making ICT an integral part of development cooperation and solutions, developing countries and their partners in the Asia-Pacific region can work to address economic, social and digital divides in more innovative and effective ways. APDIP focuses on the following strategies: 1. Mobilize Awareness and Support Build regional and national awareness on ICT for Development, and identify "champions" and leaders who have a vision. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 220 of 279 Telecenters in Pakistan 2. Develop a Strategic Vision To build capacities for formulating national and regional e-policies, e-plans, and e-strategies through a consultative process involving key groups such as academe, the research and development community, public and private sectors, and civil society. 3. Assist Implementation Plans Through the provision of technical advice and assistance to regional and national institutions for the implementation of policies, plans, and action-oriented programmes. APDIP Development Objectives To raise awareness and promote regional and national policy dialogue and development of policies and strategies focused on the cost-benefit and advantages of ICTs for poverty reduction, sustainable human development, democratic governance, and gender development. To promote equity, especially in terms of gender balance in information flows and access, and support local innovation on appropriate technologies and development of locally relevant content and knowledge management, to facilitate greater e-services such as trade, health, and governance that are oriented to the poor and women. Enhance regional and national public-private partnerships focused on content development and knowledge management, equitable access, capacity building, e-governance, and e-commerce; as well as promote intra- and inter-regional technical cooperation. Telecenter Expertise Support to Pakistan ADPID will be extending its knowledge expertise and know-how to Pakistan based upon its partner experiences in implementing Telecenters in various developing countries. APDIP will also be extending its knowledge and expert FOSS resources from the APDIP-IOSN International Open Source Network. APDIP will also extend documentation and information dissemination activities through its network and document best practices from Pakistan’s Telecenter implementation experience. iFOSSF International Free and Open Source Software Foundation Funding and Technology Transfer Support to Pakistan Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 221 of 279 Telecenters in Pakistan iFOSSF Mission The International Free and Open Source Software Foundation (iFOSSF) MI, USA is an independent, nonprofit organization dedicated to funding, fueling and accelerating the adoption, development, and usage of Information and Communication Technologies (ICT) and Free and Open Source Software (FOSS) by societies, communities, governments, organizations, institutions, groups and individuals worldwide for their sustained economic and social development as collaborative efforts to close the digital divide, especially for the socially disadvantaged. iFOSSF Purpose • Apply thought leadership in support of innovation and creativity in research and development of FOSS solutions for the benefit of the global community • Facilitate growth of new and emerging businesses with consideration for equal inclusion • Provide strategic leadership in developing FOSS opportunities that are driven by both market and social contexts iFOSSF Strategy • Establish iFOSSF as the research and development leader in FOSS based ICT solutions, cultivating the framework for inclusive ICT development by: • Engagement in R&D using Open Source Software that can help meet the needs for crisis management and economic development by promoting innovative approaches • Creation of tools & initiatives that can help bridge the digital divide between developed and developing countries • Cultivation of the organization as a global resource with expertise in FOSS based strategies to create new marketplace(s) Telecenter Funding and Technology Transfer Support to Pakistan iFOSSF will be extending supportive funding on an adhoc basis to the Telecenter development and implementation initiatives in Pakistan through its partners within the country. Where necessary iFOSSF will pursue funding requests from its donors as well as extend project management services to the Telecenter activity. This arrangement will be made on a case-to-case basis on agreement with donors. Project themes that may request funding support include but are not limited to education and training, FOSS development and localization, electronic agriculture marketplace development, equipment support etc. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 222 of 279 Telecenters in Pakistan Case Studies Supporting the FOSS Rationale in Telecenters Case Study 1: Using FOSS in Telecenters Sao Paulo, Brazil — The Telecenter Project The Municipality of São Paulo has initiated a project [ 84 ] [ 85 ] to establish a network of Telecenters to provide free computer use and Internet access to marginal neighborhoods. The implementation and management of the Telecenters it provided by The Electronic Government initiative. 72 Telecenters are functioning, with a goal of having 128 centers operational by the end of 2003. Each Telecenter provides service to about 3,000 users. The cost of setting up a Telecenter is $10,000. Usage of Telecenter facilities is free of charge for the local community with participants scheduling for access time in 30 and 60 minute increments. Addressing a Variety of Community Needs Workshops and courses provided to the community at the Telecenters include Web-site creation, journalism, image processing, Internet research, and history of each neighborhood and the local environment. Participants are encouraged to write articles about everyday life and events in their communities. Efforts are encouraged to pursue artistic activities, such as creating rap lyrics and poetry online. Support staff is available to assist users. The program is designed to develop support staff from within each community to provide new skills and create work for citizens. Students are provided with free lecture notes and receive a certificate at the end of each course. The Rationale for using OSS Pursuing the government’s “Digital-inclusion” initiative, while operating within budgetary constraints, required a strategy of investigating low cost technology alternatives which provided a high quality of service. The combination of OSS and diskless workstations allowed the Telecenter project to acquire computers with less hardware and power requirements than required by a Microsoft Windows solution. Additionally, the project is not constrained by proprietary software licensing requirements. Dravis, P. (2003, pg.13). Open Source Software - Perspectives for Development. InfoDev, World Bank. On a similar note, the above case study was also reported by APC – The Association For Progressive Communications News, 2005. In Brazil, a threat to the Telecenters turns into an opportunity... for improvement. The rationale given was that FOSS had saved the endangered Telecentre project. http://www.apc.org/english/news/index.shtml?x=2998912 84 85 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 223 of 279 Telecenters in Pakistan The Technology Linux and Diskless Workstations [86] [87] .Each Telecenter runs a high-end server and 20 diskless workstations (Pentium class systems). The diskless Linux workstations are connected to the server with a 100MB network. The underlying infrastructure technology consists of Debian Linux and Linux Terminal Server. Application software includes the GNOME desktop, work processors, spreadsheets, Web browser and Gimp (graphic/image processing). Documentation and tutorials have been developed and are available in Portuguese. Telecenters, City managed, along with Private Partners The program supports Telecenters that are directly managed and have been installed in buildings owned and operated by the city. In areas where municipal building space is not available, partnerships with private companies have been established to implement and support Telecenters. Lessons Learned The following observations shared by Beatriz Tibiriçá —Coordinator of the Electronic Government is from experience with the Telecenter initiative: • Using OSS was easier than expected. The perception that GNU/Linux is extremely complicated to understand and use turned out to be unfounded at the Telecenters. Children, the elderly and individuals with minimal education have easily learned to use the systems. • Building local ownership is important. Each Telecenter has its own Advisory Council formed and elected by the local community to determine some rules of use for the Telecenter. Being a member of the Council has its own stature and is viewed as an important duty. The Council helps guide the management of the Telecenter in issues such as security. • Providing a quality service can build respect. Providing a public service in a quality fashion can result in a high level of respect by the community. Pursing this strategy has resulted in a low rate of vandalism at the Telecenters. • Telecenters are more than just the technology. While each Telecenter is supported by computers and a broadband Internet connection, their physical appearance and layout are different from one another. The unique “character” of the Telecenter is determined by the actions taking place in the Telecenter and the work going on there. This facility is enabled through the Linux Terminal Server Project (LTSP). LTSP enables users to use computers without purchasing or upgrading expensive desktop machines. More information on LTSP is detailed at Wikipedia, http://en.wikipedia.org/wiki/Ltsp. 87 LTSP is derived from Terminal Server, Wikipedia, http://en.wikipedia.org/wiki/Terminal_server 86 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 224 of 279 Telecenters in Pakistan • Usage can vary among different age groups. Usage of the Telecenter can differ among various age groups in the population. For example, in some situations, the elderly can have very specific and practical uses for the Telecenters, such as communicating with people from other cities, while the behavior of young people may be more focused on school related activities and entertainment. Case Study 2: Using FOSS to educate as well as combat software piracy: Goa (India) Schools Computer Project The Goa (India) Schools Computer Project (GSCP) [88] was started in 1996 as an informal community effort by overseas Goans living mainly in the US. The goal was to help facilitate access to PCs by students and the surrounding community where the respective schools were located. The project was aimed mainly at schools in rural areas. Goa has 360 secondary schools. 70 are government operated, with the remainder government aided schools, of which 50% are run by the Archdiocese of Goa. Total enrollment is 110,000. Since 2002, the Goa government has supplied an average of 2 PCs per school, a training person, and a government syllabus. Students are taught basic computer use including an introduction to word-processing and spreadsheets. The Project In January 2002 GSCP provided a shipment of 380 recycled PCs to Goa under an agreement between GSCP and the Goa Department of Education. GSCP tested and refurbished the equipment before distribution and provided training to teachers in the use of the Linux operating system. The schools were to provide electric wiring and furniture. GSCP provided hardware maintenance during the first year after installation. The schools are to arrange for maintenance after this “warranty period”. Uses of the System Stand-alone and networked systems have been installed in schools. Depending on the configuration, they are used to learn computer skills as well as provide Internet access. Some computer labs are also available after school hours to allow interested students computer access and for general community access to Internet. The Technology The GNOME desktop was selected initially for its ease of use and lower resource demand than KDE. RedHat India offered free boxed packages for all the schools. Systems with small hard-disks were configured with minimal system software installed. Spreadsheets were taught using Gnumeric and wordprocessing using Abiword . During 2003 OpenOffice was also introduced. 88 Dravis, P. (2003, pg.16). Open Source Software - Perspectives for Development, InfoDev, Dravis Group. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 225 of 279 Telecenters in Pakistan The project team uses Linux Terminal Server (LTSP) in schools where 4 or more networked computers are installed. ICEwm has replaced Gnome as the window manager on all LTSP systems because of its lower resource requirements. Rationale for OSS Use GSCP wanted to avoid software piracy and the cost to install Microsoft software was greater than the $60 cost of the recycled computers. Access to a local Linux User group providing volunteer support to schools was also a factor in the open source decision. Current Status As of July 2003, 125 schools received recycled PCs, ranging from 1 to 6 computers. The number of PCs issued was determined by number of students, willingness to work with Linux and funds available to provide the appropriate infrastructure. GSCP offered free support and maintenance to all 125 schools for a period of one year. The systems, most of which are Linux based, were installed primarily in rural and semi-urban settings. GSCP was thus able to provide 1 or more systems to approximately 30% of the schools in Goa. A locally registered organization called the Knowledge Initiative Trust has now been formed to manage GSCP. Lessons Learned According to Alwyn Noronha, GSCP project manager “The experience of the GSCP team is that low cost and sustainable school computer labs can be established in rural schools using recycled equipment and open-source software. GSCP has demonstrated that PCs running both Linux and Windows environments can effectively be used simultaneously in the same computer lab.” • The Effect of Introducing Linux. Initial training was required for computer teachers familiar only with Microsoft Windows and standalone environments. GSCP continues to invest in teacher training. The state’s computer program was developed assuming the use of Microsoft Windows and teachers had to be instructed how to adapt it for a Linux environment. There are 3 Linux User Groups (LUGs) in Goa. Volunteers from them helped when schools have experienced problems. • Compatibility with Proprietary Software. GSCP found no significant requirement by schools to exchange data between open source and proprietary systems since the systems are used primarily for teaching purposes. The increasing use of OpenOffice has resulted in less problems conforming to the government’s syllabus which assumes the use of Microsoft Word and Excel. Since OpenOffice can read and write MS Word and Excel formats there are minimal problems in exchanging data. After the 3 year Goa government maintenance contract with the vendor supplying PCs to schools expires, school authorities will have the option of having the government provide PCs to join the LTSP networks for access to email and web browsing of Intranets. All open source expertise required is available from the Goa Linux User Groups. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 226 of 279 Telecenters in Pakistan • Training Initial training helped familiarize teachers with Linux basics and the differences between OSS and proprietary applications. PCs running in both of these environments are used simultaneously in computer lab. The training focus now is on Computer Aided Training for teachers on non computer-related subjects. Efforts are being pursued to find software to supplement traditional teaching methods in subject areas such as physics, mathematics, chemistry and geography. • The Physical Infrastructure The GSCP assumed there would be higher than usual hardware failure when using recycled PCs. However, a 2002 survey shows that both GSCP and government donated PCs had a comparable rate of failure. This can be attributed to the generally poor quality of electric power in Goa, i.e. Power fluctuations and frequent power failure. Some schools have not yet installed the PCs because of physical infrastructure issues such as lack of electric wiring in rooms reserved for the computer lab or limited space. Schools using Linux in a semi-urban area were more successful in maintaining their equipment because these schools generally have better access to technology support resources. Case Study 3: Telecenters using FOSS where there is no Electricity or Telephones Laos — The Jhai Remote Village IT System To help the communities of Phon Kham and four other villages obtain information on agricultural market pricing and pursue initiatives to improve the village’s income requires improved access to communication services. The Jhai Remote Village IT system [ 89 ], currently in development, is designed to address these needs by providing support for local calls and overseas connections via the Internet, along with document preparation and spreadsheet capabilities. The villages are located in a valley 85 Km north of Vientiane. Power and telephone service is absent and cellular phone access is limited by a mountain range. Other challenges an ICT system must address are torrential rains, high temperatures, humidity, and dust. The Solution The Jhai system is based upon a low-power embedded computer running a localized version of KDE, called LaoNux, on the Debian Linux distribution. The village computer connects to the Internet with a wireless 802.11b card which communicates to an antenna bolted on the roof which sends a signal to a nearby solar powered access point, which is then sent to Phon Hong, which is 25 km away by road and the closest village with phone lines. The computer runs on 12 watts of power, supplied by a bike-pedaled generator. Solar power was rejected because of the four-month monsoon season and the cost: the bicycle is only a third of the cost of solar equipment. One minute of pedaling generates about five minutes of power. 89 Dravis, P. (2003, pg.17). Open Source Software - Perspectives for Development, InfoDev, Dravis Group. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 227 of 279 Telecenters in Pakistan According to Lee Felsenstein, the designer of the system, “the system’s technology uses readily available components and is engineered for long and reliable service”. By applying available wireless and computational technology, the team hopes to minimize the cost impact of alternative telecommunications infrastructures. Rationale for Using OSS The existence of a growing body of open source software supporting wireless communications was central to its selection for the project. The Jhai Remote IT Project has converted the Linux-based KDE Graphical Desktop and productivity resources into Laotian, supporting email, word processing, and simple spreadsheets. Felsenstein decided that the operating system had to be Linux because “this system had to run for 10 years, and open-source software brings with it a human infrastructure of people who know how to maintain it.” Lee Thorn, Jhai Foundation’s chairman, adds that Linux was also chosen because localization was easier than under other platforms. LaoNux — Localized OSS Working with computer science and electrical engineering students and teachers at the National University of Laos in Vientiane, under the direction of former IBM software developer Anousak Souphavanh, the team developed a Laotian version of the Linux-based graphical desktop called KDE. Its suite of business tools allows Laos citizens to browse the Web, send e-mail, and create simple documents. Lee Thorn called the localization into Laotian “probably the hardest part of the whole project.” In order to generate fonts in Laotian, for example, the team had to create its own Unicode, a standard for encoding letters and other characters in any language. Status of the Project After system testing in Laos in early 2003, its implementation was hindered by monsoon weather conditions and a misunderstanding with a local government official. As a result, the system is back in the San Francisco Bay Area, with the team completing documentation, testing, and hardware modification. The team hopes to return to Laos in November to provide implementation and training. Lessons Learned As system implementation approaches, Lee Thorn shares the following on their efforts. • Project definition is essential. The most important lesson is that obtaining a clear and comprehensive definition of needs by end users has focused the overall project direction in developing the Jhai system. With a clear definition established at the beginning of the project, “scope creep” is effectively managed. • Obtaining OSS support has not been an issue. Finding and leveraging OSS resources has not been an issue for the team, and LaoNux has proved to be a Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 228 of 279 Telecenters in Pakistan supportable platform. Also, relying on open design specifications has allowed volunteers to quickly provide their technical expertise to the project. • Designing for rigorous needs should allow for adaptation to other environments. While environmental design requirements of the Jhai system are challenging, the team believe its solution can be transferred and modified for less harsh conditions. • A long term time horizon should result in affordable solutions. The project’s design philosophy assumes 10 years of sustainable system use. This perspective focuses the team on using commodity components, along with avoiding short term technology upgrade cycles. This approach should allow for component replacement to be performed by newly trained support staff. • End-user involvement creates ownership and drives economic sustainability. Obtaining end-user participation from conceptual design onward helps build ownership of business solutions and create local experts. Farmers and business people who know local markets, price structures and costs are used in the project to determine needs and develop business plans, with minimal use of outside ‘experts’. • Consideration for physical security needs is important. Physical security of the equipment must be addressed from the beginning of a project. Developing a social relationship with the community should create local ownership of and respect for the solution. Case Study 4: Enhancing service delivery, social protection and livelihood support for the poor through ICT Internet Society – Bulgaria is the Implementing agency for the newly started UNDP Project [ 90 ]. Open unemployment, increasing casualization of employment conditions, and in formalization of the labor market are emerging as key challenges in many parts of the world as globalization and increased integration of economies, labor saving technical change and economic restructuring take place. In the transition countries of Central and Southeastern Europe, a primary cause of the wide-spread dislocation of industry and jobs appears to be the restructuring of the economies that took place as they shifted from planned economic systems in the late 80s and early 90s. This created a mixed picture for local industries and jobs: there was a decline of ‘older’ industries accompanied by growing ‘casualization’ of employment conditions, ‘in formalization’ and ‘shuttle/suitcase trade’ on the one hand as well as an expansion in some sectors on account of new domestic and foreign investment and outsourcing of industry and services on the other. While there have been some advances in recent years, unemployment and underemployment remain at a relatively high level in a number of countries in the region, and in many instances pose a problem for their EU accession. In the context of Bulgaria’s 90 Free & Open Source Software, Internet Society - Bulgaria, http://www.foss.bg/project.php Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 229 of 279 Telecenters in Pakistan commitments to EU accession, the fight against poverty and social exclusion has become one of the main priorities of the Bulgarian Government. Promoting poverty reduction and social inclusion is also viewed as directly contributing to the achievement of Millennium Development Goals (MDGs), the targets for which have been adapted to Bulgaria’s transitional context in line with EU development levels. Bulgaria’s success in addressing unemployment and generating employment opportunities (the average unemployment rate fell to 12.67 per cent in 2004) has been uneven. Unemployment levels range from less than 5 per cent in some urban centers to over 30 per cent in many of the rural areas. Unemployment levels also vary across the rural areas, and remain high particularly those where segments of the population face high levels of social exclusion or are subject to other types of inequities. E.g. the unemployment rate among Roma was 52.9 per cent in 2003 compared to 17.3 per cent among ethnic Bulgarians. More recent indicators suggest that one in five Roma is illiterate and seven in ten are unemployed. In combination with a focus on the more macro-level variables (e.g. public investment, and supportive monetary and trade policies) and policies aimed at strengthening the labor market, there is a growing interest in the role that information technology can play in contributing to addressing this set of challenges and creation of development opportunities. Given that local municipalities usually have very reduced budgets and cannot invest in the development of such Information Society initiatives suggests that the focus needs to be most-effective, replicable and adaptable systems and the provision of affordable connectivity to get access to such information. Increasing the computer literacy in obvious and a must not only for the success of such an approach but also for citizens to be better prepared for job requirements in the new information society. The project's main goal is to create active collaboration with three key stakeholders: job seekers, employers and SMEs. In this relation, a prototype of web portal will be developed at the first stage, in order to serve the needs of the local labour bureaus. The project also envisages computer literacy trainings and consequent certification for unemployed and/or not yet qualified people from the most disadvantaged groups: e.g. minorities; women; graduating students from social schools (orphans); people with disabilities; elder people. The training is expected to include basic computer literacy (focusing on word processing, spreadsheet software and basics of working in the Internet) as well as passing of Europeanrecognized independent certification tests. The initiative is going to be implemented as an extension of the work done under the UNDP FOSS project, and particularly the ICT tools that are already functioning in the target pilot municipality -the municipality of Vratza - will be used as a basis. The collaborative and coordinated approach proposed here, accompanied by training and job enhancement for local municipality personnel, can not only improve service delivery but reduce the element of bureaucracy for common citizens. Given the need for replicable, adaptable and cost effective software solutions to be built, an open source and open-content approach will be applied and would also allow for building upon the existing municipal ICT infrastructure and info-structures. The use of open standards and free/open source software (FOSS) is expected to have a positive impact in many directions, with benefits for the government, citizens and local SMEs that could Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 230 of 279 Telecenters in Pakistan provide maintenance, development and training support. In the longer -term, this approach is expected to lead to the generation of significant budget savings. The main benefit is the realization of the opportunity to contact and exchange information with the local labour bureau through the Internet. This will affect in increasing the level of internet usage as overall, but in long term the web portal could be a base for more comprehensive e-government services, including e-payments. More specifically, the following are some of the expected benefits from the development and implementation of FOSS based platform: • Increase in the transparency of the social department’s work and generation of savings in local budgets; • Reduced costs and dependency on imported software and skills; • Support to the European integration processes by a quicker and more effective bridging of the existing “digital” divide between South-eastern European states and the European Union at large; • Ability to customize software for local languages and cultures; • Provide opportunities to software developing SMEs to collaborate with the administration; • Ensure open access to the population through the web. Once the free/open source (FOSS) tools are developed they can be easily replicated in other municipalities in Bulgaria and/or in other parts of the Eastern Europe. Moreover, the tools could be easily modified, allowing for additional functionality and add-ons, continuous development and localization for other countries. The initiative is funded by the UNDP poverty reduction trust fund (New York) and Internet Society Headquarter in Reston, Virginia. The following partnering organizations are recognized for the realization of the Project: 1. UNDP Regional Office in Bulgaria 2. Beautiful Bulgaria 3. The Jobs Opportunities through Business Support (JOBS) 4. Project SANE - Social Services Against New Employment 5. Project FOSS - Support to e-government initiatives at local (municipality) level through Free and Open Source Software (FOSS) in South-Eastern Europe 6. Project T-Centres – A network of Telecenters - 80 have already been established and 80 more are to be established Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 231 of 279 Telecenters in Pakistan Annexure Pakistan’s Case for Sustainable Development with FOSS Less Dependence on Imports Less Dependence on Imports and preventing wastage of Public Funds Much of the software and systems in use across the world are developed in Pakistan, India or China. All other countries using these software’s, have to purchase licenses from the developers. With more nations going for e-governance and related automation of administrative functions, the expenses involved in acquiring software licenses can be high. This can be a substantial drain on the foreign exchange for a nation like Pakistan. This money would, otherwise have been spent on development work for Pakistanis. Lowered Cost of Purchase Opting for FOSS substantially reduces the cost of purchase. Of course, one has to consider the cost involved in paying for support and maintenance and support is available throughout Pakistan. Thus, this cost, wherever incurred, is an internal cost and indirectly helps to develop and sustain local industry for providing such support/service. This knowledge can be of value to other organizations as well. Thus, unlike, outright purchase of software from abroad, these expenses have an overall positive contribution to the economy of Pakistan. Flourishing ICT Production with Local Software Development There is a related positive effect stemming from this line of thought. Access to freely distributable and modifiable source code enables local development groups to enter into product/system development more easily. For example, one could develop specialized or enhanced versions of an existing system, without having to build the entire system from scratch. Therefore, local software development efforts and hence the local software industry, can enter the IT market through a much lower entry barrier. This, in the longer run, provides for growth of local industry, retention of skilled human resources, more training opportunities, etc. Interoperability and avoiding Multinational Vendor lock-ins There is a very high rate at which systems and platforms become obsolete, it is important for information in the form of data, documents, etc to be stored in open publicly known formats. This is the key to interoperability - the freedom and flexibility to change between different software packages, platforms and vendors. The interoperability frees users from vendor lock-in where one is forced to go along with a particular system because a lot of resources are already in their proprietary format and conversion is too costly in time and money. The Free and Open source community always opts for open file formats and standards, and hence Free and Open Source Software provides a much higher level of interoperability Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 232 of 279 Telecenters in Pakistan compared to proprietary solutions. The source code availability enables people to document standards used by a system (by reverse engineering, if needed) thereby making the standards open. Compliance to known standards is, perhaps, a natural companion of the FOSS work culture anchored on sharing and working together. The Case for Preferring FOSS over Proprietary Software in Pakistan Software is one of the most valuable technologies of the Information Age, running everything from Personal Computers to the Internet. Yet, because software has become such an important productivity tool, the illegal copying and distribution of it – software piracy – persists globally. In fact, in Pakistan, almost 95% of software programs are unlicensed and in most cases, Pakistanis are using pirated software un-intentionally. Software is important to every business, government, school and consumer. However, it’s critical for software users to remember that, to get the most out of their software, they must be careful to acquire only legitimate product and manage it well. Still, many local public and private sector organizations and consumers consider software to be different. They don't tend to manage it as they would any other valuable asset. Poor software management can cost a company or an individual, not only in terms of legal and financial risk but also in terms of lost efficiency and productivity. The state of software piracy in Pakistan regarding Proprietary Software usage is very horrible in terms of the costs and piracy issues associated with proprietary software itself. In a developing country like Pakistan where the literacy rate is very low and computer usage is not as high as the usage in our neighboring countries like India and China, computer hardware already has a substantial cost and is usually unaffordable compared to the annual income of an average citizen in Pakistan. Adding to this, once hardware has been procured, the next costly issue is the cost of software to operate the machine and automate ones daily activities. Due to illiteracy about the issues associated with the usage of software both within the computer vendor and user community, vendors of hardware are installing pirated proprietary software on the hardware at the point of sale and most of the time, the consumer computer users are using unlicensed pirated proprietary software by paying only for hardware and not the software itself. This has caused a flooding of pirated software CDs into the largest and famous computer hardware vendor markets like Hafeez Centre in Lahore and Uni-Centre in Karachi thus creating a culture of using pirated proprietary software unknowingly. Software piracy is not only a crime under international and national copyright law but it can also destroy computers and data. The solution to Pakistan’s legal and personal safety is Free and Open Source Software. The FOSS Ecosystem in Pakistan FOSS Communities of Learning and Practice Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 233 of 279 Telecenters in Pakistan When we look at the opportunities that FOSS brings in terms for Pakistan, it can be seen as a highly useful and fruitful alternative to pirated proprietary software. Secondly it brings the opportunity for the country to benefit from ground-up or bootstrap innovation, research and business opportunities that are cross platform and multidisciplinary in nature. FOSS can benefit home users, community technology centers, Telecenters, academia as well as the business and industry. Linux User Groups FOSS in Pakistan has been slowly making its way in to the limelight since the year 2001 through a multitude of channels the success of which can be attributed to various FOSS communities on the scene including the largest and oldest is Linux Pakistan User Group [91] boasting well over 3500+ professional as well amateur Linux users with even a much larger community of regular readers. The website takes over an estimated 2500+ unique hits per day [source: StatBrain.com]. Civil Society ICT Foundations The second largest community group is FOSSFP: Free and Open Source Software Foundation of Pakistan [92] that is dedicated to promoting the overall adoption, development and usage of FOSS throughout the region as well as globally. FOSSFP: Free and Open Source Software Foundation of Pakistan® is the realization of the FOSS Philosophy in Pakistan. FOSSFP promotes ICT software freedom for everyone and over 850 Ubuntu Linux User Group Members, 4900+ registered certified users with over 760+ unique hits per day. International Support through UNDP-APDIP-IOSN and iFOSSF The UNDP-APDIP International Open Source Network has been closely working with FOSSFP, the Ministry of IT & T and various other civil society and research and development institutions in Pakistan from the inception of the FOSS Ecosystem in the region. UNDP-APDIP and IOSN have been providing support through various ICT projects and programmes including: a) b) c) d) e) f) Capacity building Awareness raising Content development Infrastructure and connectivity development Evaluation and surveys Overall results and trends Secondly, the International Free and Open Source Software Foundation iFOSSF, MI, USA 93 is extending through FOSSFP opportunities to fund and support innovative research and Pakistan LUG: Linux User Group, http://www.linuxpakistan.net FOSSFP: Free and Open Source Software Foundation of Pakistan, http://www.fossfp.org 93 International Free and Open Source Software Foundation iFOSSF, http://www.ifossf.org 91 92 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 234 of 279 Telecenters in Pakistan development as well as entrepreneurial activities throughout the country and South Asia that accelerate the usage, development and adoption of FOSS in the region. Government of Pakistan Initiatives Many case studies can be found on how large businesses, industrial groups and banks have benefited from FOSS and reducing their costs eliminating per user/machine licensing offered by proprietary software giants. Similar benefits are available for the government departments and agencies, they realize the potential, where they can reduce costs and direct the gains towards investing in improved delivery of services to citizens. The Pakistan Software Export Board [94], Ministry of IT&T established the Open Source Resource Center (OSRC) 95 to encourage an Open Source Demand and Supply Ecosystem within the region as a result of the research undertaken and recommendations made by the Ministry of Science and Technology’s “Technology Resource Mobilization Unit” TReMU [ 96 ]. The OSRC is working towards promoting FOSS throughout the various Public and Corporate Sectors through Capacity Development and provision of Open Source based Enterprise Resource Planning Systems to various large industrial associations throughout the country. This activity in return is seeking to create intensive FOSS jobs thus other actors from various sectors of society are required to embrace the needs catering to providing Capacity Development and Commercial Technical Support in response to these efforts. The FOSS Business Case Local FOSS Vendor Support Networks There are many companies based in Lahore, Karachi, Peshawar, Multan and Islamabad that are providing various solutions throughout the desktop, server and middleware stacks including extensive enterprise level technical support related to RAC and Cluster computing. To name a few [97] in the playing field are Emergen Consulting, Inix, Copyleft, Ping Systems, ARPATECH, ATRC etc. On the multinational scene, hardware and various operating system desktop, server and enterprise solutions are available through organizations like IBM Pakistan [98], Hewitt Packard [99] distributors, Red Hat Linux [100] Channel Partners, UbuntuLinux Pakistan Team [101] with Commercial Support by Canonical Ltd [102] and Novell Suse Pakistan Software Export Board PSEB, http://www.pseb.org.pk Open Source Resource Center OSRC, http://www.osrc.org.pk 96 Technology Resource Mobilization Unit, TReMU, http://www.tremu.gov.pk/task/Linux.htm 97 A detailed list of local FOSS support providers is given at the end of this document. 98 IBM International Business Machines, Pakistan Country Office, http://www.ibm.com/pk 99 Hewitt Packard, http://h20229.www2.hp.com/partners/locator/aaa/pakistan.html?jumpid=reg_R1002_USEN 100 Red Hat Linux, http://www.redhat.com 101 Ubuntu-Linux Pakistan Team distributing Linux Free and Localizing Linux into regional languages, http://www.ubuntu-pk.org 102 Canonical Ltd, Canonical is the official sponsor and copyright holder of Ubuntu-Linux but the project will always be free forever. http://www.canonical.com 94 95 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 235 of 279 Telecenters in Pakistan Linux [103] Distributors are widely available throughout the country. This creates a healthy ecosystem for the corporate enterprise sector to benefit from total solutions. To name a few, the following organizations have shifted over to FOSS completely or certain portions of their IT infrastructures significantly reducing their IT business support services related costs: 1. Kohinoor Maple Leaf Group 2. Crescent Group of Industries (Crescent Bahuman) 3. Dollar Industries (Pvt.) Ltd 4. Bank Islami Pakistan Ltd. 5. Askari Commercial Bank Ltd. 6. Dancom Online Services Islamabad. 7. Inbox (Pvt) Ltd. 8. Siemens Fugitsu 9. Ideal Distribution (Pvt) Ltd. 10. Sui Northern Gas Pipelines Ltd. SNGPL 11. Pakistan Software Export Board 12. Open Source Resource Center 13. Ministry of IT & T 14. Ministry of Defense etc. On the Government of Pakistan front, the PSEB-OSRC is extending FOSS based Enterprise Resource Planning Systems under its “Industrial Automation Project” available at [104] to the following business and industry trade associations: 1. APTPMA - All Pakistan Textile Processing Mills Association 2. PAAPAM - Pakistan Association of Automotive Parts and Accessories Manufacturers 3. PRGMEA/PHMA - Pakistan Readymade Garments Manufacturers Association & Pakistan Hosiery Manufacturers Association 4. SIMAP - Surgical Instruments Manufactures Association Novell Open Suse, however Novell is criticized for using proprietary code in its other versions of Suse Servers and Desktops. http://www.opensuse.org and http://www.novell.com/suse 104 PSEB-OSRC, Industrial Automation Project, http://www.pseb.org.pk/page.php?page_id=100 103 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 236 of 279 Telecenters in Pakistan The Human Resource Demand and Supply System The afore mentioned economic activities in return are creating tremendous amount of human resource demand and supply opportunities the human resource is rapidly upgrading their skills to fulfill the demand by these local projects and businesses that are adopting FOSS as their business support systems. The skills combination in demand includes both Linux OS (various leading distros including Red Hat, Suse and Ubuntu) installation and administration as well as LAMP (Linux-Apache-MySQL/POSTGreSQL-Php/Python/Perl) software development skills. The LAMP architecture is for software development providing various FOSS programming languages and technologies including support for most of the database systems in the market. FOSS Skills and Higher Education Integration On the academic scene a number of Universities and corporate training centers are catering to providing intensive professional technical and managerial trainings including Peshawar University, SZABIST, MAJU, UCP, NUCS-FAST, PUCIT, OpenTech, Oracle University, APTECH etc. On the integrated multidisciplinary higher educational sectors within the fields of Engineering and GIS, institutions like GIK, NED, UET, and NUST-NIIT have intensively incorporated FOSS into their curriculums thus providing opportunities for FOSS Research and Development in areas related to Ubiquous or Disruptive Computing. The trend is also being encouraged by availability LPI-Linux Professional Institute 105 and Red Hat Linux Channel Partners throughout the major cities of the country. Taking Pakistani FOSS Skills International Upon acquiring FOSS development or administration skills, Pakistanis throughout the country are joining, volunteering, or initiating from scratch various innovative FOSS initiatives and projects over the Internet. There are many web sites that are hosting FOSS development or catalogue FOSS programs from Pakistan. The most widely accessed international FOSS project and software development resources by Pakistani developers include: 1. Savannah.gnu.org by the founders of FSF 2. Sourceforge.net and Freshmeat.org by the founders of OSI 3. Launchpad.net by the founders of Ubuntu-Linux 4. Gforge.org 5. Apache.org 6. Mozilla.org 7. Drupal.org 8. Joomla.org 105 LPI-Linux Professional Institute, http://www.lpi.org Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 237 of 279 Telecenters in Pakistan FOSS and Intellectual Property Rights Pakistani software developers today are well versed with IPR within the IT Industry domain. The Pakistani IPR laws do not apply patents on Computer Programmes (Software) [ 106 ] however the copyright law is widely applicable. With FOSS, there are international alternate IPR and Copyright licensing forms that protect all source code as well as transfer the freedoms associated with the software source code to other users. Examples of Pakistani FOSS development localization efforts include Urdu Web [107] and in the advanced research and development domain, the National University of Science and Technology Project titled SAGE [108]. International FOSS Partners and Support Providers for Telecenter Programmes in Pakistan 1. UNDP-APDIP United Nations Development Program Asia-Pacific Development Programme, UNDP Regional Centre in Bangkok, United Nations Service Building, 3rd Floor, Rajdamnern Nok Avenue, Bangkok 10200, Thailand. Mailing Address: UNDP-APDIP GPO Box 618 Bangkok 10501, Thailand. Contact Numbers: Tel: (66-2) 288-1234; 288-2129 Fax: (66-2) 280-0556 http://www.apdip.net 2. IOSN International Open Source Network, Asia-Pacific Development Information Programme, UNDP Regional Centre in Bangkok, 3rd Floor, United Nations Service Building, Rajdamnern Nok Avenue, Bangkok 10200, Thailand, Tel: +66 2 288 1234, info@iosn.net, http://www.iosn.net 3. International Free and Open Source Software Foundation iFOSSF, Secretariat, 39555 Orchard Hill Place, Suite 600, Novi, Michigan 48375, USA. fouad.bajwa@ifossf.org, Tel: +1.248.232.8875, Fax: +1.248.232.8875, http://www.ifossf.org Local FOSS Partners and Support Providers for Telecenter Programmes in Pakistan 1. FOSSFP: Free and Open Source Software Foundation of Pakistan & Ubuntu-Linux Pakistan Team. 242-C, Johar Town, Lahore. +92-42-5030039, +92-333-4661290. Intellectual Property Rights Organization of Pakistan IPO, http://ipo.gov.pk/patents_home.php Urdu Web, http://www.urduweb.org 108 NUST-NIIT Sage, Scalable Fault Tolerant Agent Grooming Environment, http://sage.niit.edu.pk 106 107 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 238 of 279 Telecenters in Pakistan FOSS Commercial Vendors and Technical Support Providers in Pakistan 1. Ants Consulting Pakistan Address: 809 Park Avenue, 24-A, Block 6, PECHS, Main Shara-e-Faisal, Citibank Building City/State: Karachi Contact: Fahad Imtiaz 2. ANTS Private Limited Address: C-30 Mohammad Ali Society City/State: Karachi Contact: Khawar Nehal 3. Atlantic 2000 Micro Care Address: Al-Habib Arcade, Near Shell Petrol Pump, Clifton City/State: Karachi Contact: Farhan Ghafoor 4. CASTECH Address: Its 4-J, Gulberg-III, City/State: Lahore 5. Cogilent Solutions Address: 73 East GD Arcade, Fazal-e-Haq Road, Blue Area City/State: Islamabad Contact: Ahmad Jawad 6. GeneralSoft (Pvt) Ltd Address: 179-C-1 Model Town City/State: Lahore Contact: Abid Nasim Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 239 of 279 Telecenters in Pakistan 7. iinix Solutions Address: #12, City Arcade, Markaz I-8 City/State: Islamabad Contact: A. Sajjad Zaidi 8. Instec Digital Systems Address: 904 Fortune Centre, 45A Block 6 PECHS City/State: Karachi Contact: Mudassir Khan 9. KICS Address: KICS UET Lahore City/State: Lahore Contact: umar iftikhar 10. LinuxChamp Address: MC-490 B Green Town Karachi-43 City/State: Karachi Contact: Noman Khanzada 11. MalhiNet Address: C2-41 City/State: Karachi Contact: Vashdev Malhi 12. Network consultants Address: 198-w Defence City/State: Lahore Contact: Bilal dar Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 240 of 279 Telecenters in Pakistan 13. ORBIT (ORganization of Business Information Technology) Address: shahra-e-Faisal, Business Avenue Suite #310 City/State: Karachi Contact: Choudhry Muhammad Ali 14. PING Systems Click to get Consultant's Details (View complete details at www.linuxports.com) Address: 605 Clifton Centre, Clifton City/State: Karachi Contact: Asaf Maruf 15. Slam Innovative World Address: 408 Q Model Town City/State: Lahore Contact: Shakeel Farooqi 16. TeckXperts.com Address: 70-B/2, Gulberg-III City/State: Lahore Contact: Jawaid Siddique 17. Whc Digital World Address: R-839 block-17 federal B Area City/State: Karachi Contact: Amir Bhutto 18. XORLOGICS Address: 3rd floor Razak plaza commercial market chaklala III City/State: Rawalpindi, Punjab Contact: wajahat raja Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 241 of 279 Telecenters in Pakistan 19. Ubuntu-Linux Pakistan Team & Pklinux Address: Leader, 242-C, Johar Town, City/State: Lahore/Punjab Contact: Fouad Riaz Bajwa 20. Emergen Consulting Private Limited Address: Suite# 1507 National IT Park Caesars Towers, Shahra-e-Faisal City/State: Karachi. Contact: Faraz Ahmed 21. iPhonica LLC City/State: Islamabad, Punjab Address: Plot 291 st-3, I-9/3 Industrial Area, Contact Person: Khurram Bhatti 22. Barbedwire Technologies Address: 1303-4, National IT Park, Caesar Tower, Shahrah-e-Faisal, City/State: Karachi, Sindh Contact: Majid Hameed Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 242 of 279 Telecenters in Pakistan Assumptions in the Business Modeling Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 243 of 279 Telecenters in Pakistan The core model was built based on the following set of assumptions: 1. An excel model has also been given as a part of the submission to enable specific costs to be calculated for different examples. In this currently available local costs are given. This would enable a Total Cost of Ownership and Operations to be determined. 2. The model should try to be self standing business if possible. The probability of success is increased multifold if this is an adjunct business to another on going business, e.g. PCO or even a general store. 3. The traffic figures were taken from the statistical information derived from the surveys and other interviews in the rural areas 4. Several price buffers have been created in order to account for competition, unforeseen and financing costs. E.g. selling costs of ‘products’ like telephone calls and faxes etc are taken at lower values than what was revealed by the survey. 5. All possible items were considered and in case these are available the business becomes profitable and sustainable earlier 6. Though almost 80% of the demographics is ostensibly covered by wither WLL or Cellular (see maps) , data connectivity is poor and expensive due the tariff structures (Volume based, slow speed, session charges). This is such that the profitability of these remote Telecenters is impacted when GPRS, CDMA, EVDO or EDGE is considered on the basis of current charging strategy. 7. Costs for usage per hour for GPRS, EDGE, CDMA and EVDO have been converted to cost per hour using a simple usage model. This is the most difficult part of the model as the costs are much higher then what can be sold whereby depressing the profits and skewing the model. It is expected that the Cellular and WLL companies will realize this and correct the charges (Volume and Session charges) for use by the rural Telecenter operator in order to sell this on a ‘per hour’ basis. 8. A comparison of the P/L has been done for CRICs/Telecenters being driven by VSAT DVB-S2 type of services. Such technologies will become very useful in bringing broadband to the rural areas. A separate section is devoted to the DVB-S2 solution. 9. The costs for the DVB-S2 service has been computed for an set up with a Hub dimensioned for 1000 remotes and a mix of capacities as mentioned in the Connectivity section 10. It is interesting to see the impact of the current tariffs of wireless providers as opposed to the satellite provisioning. Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 244 of 279 Telecenters in Pakistan 11. Two varieties of software have been modeled. The following sheets show the results of using the FOSSP. Input sheet of similar models for Microsoft software has been given and the difference results in making the costs of setting up these considerably higher then the FOSSP. However, there are attendant advantages of using licensed standardized software as many remote locations may have difficulty in setting up and maintaining OSS. 12. For calculating the costs of hardware and software two models have been created. One using Free and Open source Software, where lower cost computers can be used and the other uses MS Operating system and MS Office bundled with several additional value added products. In this case higher end machines are needed because of the size and computing power needed for the MS environment. In the following pages Part 1 shows the costing of a 6 seat Telecenter worked out for four variants: 1. Microsoft software on new and refurbished PCs/Servers 2. Open Source software on new and used PCs/Servers Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 245 of 279 Telecenters in Pakistan Volume 1 Part 10 Business Models Sample calculations Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 246 of 279 Telecenters in Pakistan Calculation for a 6 seat Telecenter for Computers, Software and LAN Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 247 of 279 Telecenters in Pakistan Summary In order to compare the costs of different types of software, the following pages show the impact on prices based on the decisions for the type of software. The decisions will be based on corporate policies and the key drivers in this decision: price or functionality. A summary of the next few pages is: a. FOSS (Free and Open Source Software) with refurbished hardware: Rs. 58,000 b. FOSS (Free and Open Source Software) with new hardware: Rs. 143,000 c. Microsoft SW with refurbished hardware Rs. 122,000 d. Microsoft SW with new hardware Rs. 207,000 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 248 of 279 Telecenters in Pakistan With Refurbished Hardware FOSS in Telecentres in Pakistan - Hardware with Internet Costing Sheet * Note: All prices are in Pakistan Rupees and are subject to prices to be confirmed from appointed vendors Serial Hardware Items 1 Desktop PCs (refurbished) 2 Server (refurbised) 3 Monitor (refurbished) Brand/Specifications Quantity Any brand, P-III 1 GHz, 256 Ram, 10GB HDD, LAN Any brand, P-IV, 1+ GHz, 512 Ram, 80GB HDD, LAN Any Other Cost per Unit Total 5 6,000 30,000 1 15,000 15,000 6 1,500 9,000 Networking Accessories 4 5 6 7 8 Crossover Cable (Shielded) RJ-45 Cable Connectors Switch/Hub Standard Wireless Network Cards Wireless Switch/Hub Type of Internet Connectivity Feet 100 Quantity 14 1 5 1 Any Any D-Link Any D-Link Cost/Rental of Modem/Router/Wireless Set Cost/Feet 6 600 7 1,450 2,450 8,000 98 1,450 12,250 8,000 Cost per Unit Two/cable 8-Port Desktops Quantity Type * Note: Does not include cost of operation, per hour rates may vary according to type of Internet Connectivity and Bandwidth 1 2 3 PTCL CDMA/WLL Dial-up DVB-S2 Satellite Price? 2,000 500 85,000 Wireless Set Modem Hours 9 Installation Costs Subject to rates by technical support/vendor Cost/Network (Cable or Wireless) 1 - 2,000 - Cost/hour 6 400 2,400 Total Number of Networks 1 Standard Network 58,148 1 Rs. 58,148 2 Wireless Network 76,250 1 Rs. 76,250 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 249 of 279 Telecenters in Pakistan With new Hardware FOSS in Telecentres in Pakistan - Hardware with Internet Costing Sheet * Note: All prices are in Pakistan Rupees and are subject to prices to be confirmed from appointed vendors Serial 1 2 3 Hardware Items Desktop PCs Server Monitor Brand/Specifications Any brand, P-IV 1 GHz, 256 MB RAM, 80 GB HDD, LAN Any brand, P-V, 1GB Ram, 120GB HDD, LAN Any Quantity 5 1 6 Other Cost per Unit 17,000 30,000 4,000 Total 85,000 30,000 24,000 Networking Accessories 4 Crossover Cable (Shielded) 5 RJ-45 Cable Connectors 6 Switch/Hub Standard 7 Wireless Network Cards 8 Wireless Switch/Hub Type of Internet Connectivity Any Any D-Link Any D-Link Cost/Rental of Modem/Router/Wireless Set Feet 100 Quantity 14 Two/cable 1 8-Port 5 Desktops 1 Type Cost/Feet 6 600 7 1,450 2,450 8,000 Quantity 98 1,450 12,250 8,000 1 2,000 - Cost per Unit * Note: Does not include cost of operation, per hour rates may vary according to type of Internet Connectivity and Bandwidth 1 2 3 PTCL CDMA/WLL Dial-up DVB-S2 Satellite Price? 9 Installation Costs 2,000 500 60,000 Wireless Set Modem Hours Subject to rates by technical support/vendor Cost/Network (Cable or Wireless) 1 Standard Network 2 Wireless Network Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 6 - Cost/hour 400 2,400 Number of Networks 143,148 161,250 250 of 279 1 1 Total Rs. Rs. 143,148 161,250 Telecenters in Pakistan Refurbished Hardware Telecentres in Pakistan - Hardware + Software + Internet Costing Sheet * Note: All prices are in Pakistan Rupees and are subject to prices to be confirmed from appointed vendors Serial Hardware Items 1 Desktop PCs (refurbished) 2 Server (refurbised) 3 Monitor (refurbished) Software (Proprietary) US$ 1 = Rs. 60.5 a MS Windows + MS Office b Windows 2003 Server Brand/Specifications Quantity Other Cost per Unit Total 5 6,000 30,000 1 15,000 15,000 6 1,500 9,000 Desktops 5 11,193 55,963 Servers 1 8,000 8,000 Any brand, P-III 1 GHz, 256 Ram, 10GB HDD, LAN Any brand, P-IV, 1+ GHz, 512 Ram, 80GB HDD, LAN Any * Note: Server software pricing not confirmed Networking Accessories 4 5 6 7 8 Crossover Cable (Shielded) RJ-45 Cable Connectors Switch/Hub Standard Wireless Network Cards Wireless Switch/Hub Type of Internet Connectivity Feet 100 Quantity 14 1 5 1 Any Any D-Link Any D-Link Cost/Feet Two/cable 8-Port Desktops Type Cost of Modem/Router/Wireless Set 6 600 7 1,450 2,450 8,000 98 1,450 12,250 8,000 Cost per Unit Quantity * Note: Does not include cost of operation, per hour rates may vary according to type of Internet Connectivity and Bandwidth 1 2 3 PTCL CDMA/WLL Dial-up DVB-S2 CPE 2,000 500 85,000 Wireless Set Modem Hours 9 Installation Costs Subject to rates by technical support/vendor Cost/Network (Cable or Wireless) 1 - 2,000 - Cost/hour 6 400 2,400 Number of Networks Total 1 Standard Network 122,111 1 Rs. 122,111 2 Wireless Network 140,213 1 Rs. 140,213 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 251 of 279 Telecenters in Pakistan New Hardware Telecentres in Pakistan - Hardware + Software + Internet Costing Sheet * Note: All prices are in Pakistan Rupees and are subject to prices to be confirmed from appointed vendors Serial Hardware Items 1 Desktop PCs 2 Server 3 Monitor Software (Proprietary) US$ 1 = Rs. 60.5 a MS Windows + MS Office b Windows 2003 Server Brand/Specifications Any brand, P-IV 1 GHz, 256 MB RAM, 80 GB HDD, LAN Any brand, P-V, 1GB Ram, 120GB HDD, LAN Any Quantity 5 1 6 Other Cost per Unit 17,000 30,000 4,000 Total 85,000 30,000 24,000 11,193 8,000 55,963 8,000 * Note: Server software pricing not confirmed Desktops Servers 5 1 Networking Accessories 4 Crossover Cable (Shielded) 5 RJ-45 Cable Connectors 6 Switch/Hub Standard 7 Wireless Network Cards 8 Wireless Switch/Hub Type of Internet Connectivity Any Any D-Link Any D-Link Cost of Modem/Router/Wireless Set Feet 100 Quantity 14 Two/cable 1 8-Port 5 Desktops 1 Type Cost/Feet 6 600 7 1,450 2,450 8,000 Quantity 98 1,450 12,250 8,000 1 2,000 - Cost per Unit * Note: Does not include cost of operation, per hour rates may vary according to type of Internet Connectivity and Bandwidth 1 2 3 PTCL CDMA/WLL Dial-up DVB-S2 CPE 9 Installation Costs 2,000 500 60,000 Wireless Set Modem Hours Subject to rates by technical support/vendor Cost/Network (Cable or Wireless) 1 Standard Network 2 Wireless Network Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 6 - Cost/hour 400 2,400 Number of Networks 207,111 225,213 1 1 252 of 279 Total Rs. Rs. 207,111 225,213 Telecenters in Pakistan Sample CAPEX, OPEX and P/L from excel spreadsheet models Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 253 of 279 Telecenters in Pakistan CAPEX Type of Equipment/service Models Open Source 1 PC+ 1 phone Rs. Type Rs Qty Infrastructure Brick & Mortar Brick & Mortar Brick & Mortar Brick & Mortar Refurbishment Refurbishment Refurbishment Refurbishment Furniture other than computer tables and chairs Furniture other than computer tables and chairs Furniture other than computer tables and chairs Generator Generator Generator UPS UPS UPS 2 PC+ 2 phones Qty 3 PC + 3 phones Rs 1 2 3 4 1 2 3 4 10,000 20,000 40,000 60,000 5,000 15,000 20,000 30,000 1 1 5,000 1 2 8,000 - - 3 1 2 3 1 2 3 14,000 8,000 16,000 45,000 6,000 15,000 35,000 6,000 - 12,000 - Elecrticity connections 1 5,000 Elecrticity connections Licences and permissions Computers Computer PII Computer PIII Computer PIV Computer PV LAN wiring WiFi AP Data interconnect modems Dial up GPRS CDMA phone EVDO EDGE DVB - S2 VSAT 2 8,000 10,000 P2 P3 P4 P5 meter 5,000 7,000 14,000 20,000 500 8,000 external plug in card integrated plug in card plug in card Complete unit 2,500 5,000 6,000 4,000 8,000 85,000 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 1 1 1 10,000 5,000 - 1 5,000 1 Qty 5,000 1 2 1 1 1 1 10,000 7,000 6,000 - 1 2 2 10,000 5,000 - Rs 1 1 5,000 Qty 10,000 15,000 - Rs 1 1 - 1 1 1 5,000 6 PCs + 3 phones on DVB 6 PCs + 3 phones Qty 20,000 20,000 - Rs 1 1 - 8,000 8,000 6,000 - 1 1 1 - 8,000 16,000 15,000 - 10 PCs + 4 phones on DVB 1 1 1 - Qty 20,000 20,000 - 15 PC + 5 phone on DVB Rs 1 1 Qty 40,000 20,000 - - 8,000 - - 16,000 15,000 - 1 1 1 - 14,000 16,000 15,000 - 1 8,000 1 8,000 10,000 14,000 12,000 - 1 10,000 21,000 18,000 - 1 10,000 35,000 14,000 5,000 12,000 8,000 - 1 10,000 35,000 14,000 3,000 85,000 - 1 10,000 126,000 20,000 5,000 85,000 - 3 2 1 254 of 279 1 9 1 10 1 1 - 8,000 6 1 14,000 45,000 35,000 - 1 10 1 - 8,000 5 1 1 - 1 5 1 1 40,000 20,000 - - - 3 Rs 1 14 1 15 1 10,000 196,000 20,000 7,500 85,000 - Telecenters in Pakistan Software OS Microsoft OSS/Linux Software Office and enabling Microsoft Office Open Office MIS/Enabling software OS MIS/Enabling software MS Antivirus, OS etc Telephones, etc Metering devices Telephones CDMA Telephones GSM Telephones Land lines Other devices Scanner Fax machine Laser printer Color printer Dot matrix printer Camera Other expenses Installation Training TOTAL CAPEX 1,500 - 1,500 - 3,000 - 4,500 - 4,500 - 15,000 - 22,500 - 10,000 1,500 1 incl above 500 1 500 1 500 2 1,000 2 1,000 2 1,000 10 5,000 15 7,500 1,500 1 1,500 1 1,500 1 1,500 1 1,500 1 1,500 2 3,000 2 3,000 5,000 600 1 4,000 4,000 4,000 3,500 1 5,000 8,000 8,000 5,000 4,000 10,000 per PC per PC Rupees US$ Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 500 500 1 1 - 1 600 4,000 500 500 63,100 1,052 2 1 1 2 2 - 2 1,200 4,000 4,000 1,000 1,000 87,700 1,462 3 2 1 1 1 3 3 - 3 1,800 8,000 5,000 8,000 10,000 1,500 1,500 145,300 2,422 3,600 8,000 8,000 3,500 5,000 8,000 8,000 5,000 10,000 3,000 3,000 6 2 2 1 1 1 1 1 1 6 6 - 3 243,100 4,052 255 of 279 6 2 2 1 1 1 1 1 6 6 - 10 3,600 8,000 8,000 5,000 8,000 8,000 5,000 10,000 3,000 3,000 302,600 5,043 10 4 2 2 1 1 1 2 1 1 1 10 10 - 15 6,000 16,000 8,000 8,000 3,500 5,000 8,000 16,000 5,000 4,000 10,000 5,000 5,000 481,500 8,025 15 4 2 2 2 1 1 2 1 1 1 15 15 - 9,000 16,000 8,000 8,000 7,000 5,000 8,000 16,000 5,000 4,000 10,000 7,500 7,500 616,500 10,275 Telecenters in Pakistan CAPEX Type of Equipment/service Models Licenced Software 1 PC+ 1 phone Rs. Type Rs Qty Infrastructure Brick & Mortar Brick & Mortar Brick & Mortar Brick & Mortar Refurbishment Refurbishment Refurbishment Refurbishment Furniture other than computer tables and chairs Furniture other than computer tables and chairs Furniture other than computer tables and chairs Generator Generator Generator UPS UPS UPS 2 PC+ 2 phones Qty 3 PC + 3 phones Rs 1 2 3 4 1 2 3 4 10,000 20,000 40,000 60,000 5,000 15,000 20,000 30,000 1 1 5,000 1 2 8,000 - - 3 1 2 3 1 2 3 14,000 8,000 16,000 45,000 6,000 15,000 35,000 6,000 - 12,000 - Elecrticity connections 1 5,000 Elecrticity connections Licences and permissions Computers Computer PII Computer PIII Computer PIV Computer PV LAN wiring WiFi AP Data interconnect modems Dial up GPRS CDMA phone EVDO EDGE DVB - S2 VSAT 2 8,000 10,000 P2 P3 P4 P5 meter 5,000 7,000 14,000 20,000 500 8,000 external plug in card integrated plug in card plug in card Complete unit 2,500 5,000 6,000 4,000 8,000 85,000 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 1 1 1 10,000 5,000 - 1 5,000 1 Qty 5,000 1 2 1 1 1 1 10,000 20,000 6,000 - 1 2 2 10,000 5,000 - Rs 1 1 5,000 6 PCs + 3 phones on DVB 6 PCs + 3 phones Qty 10,000 15,000 - Rs 20,000 20,000 - 1 1 - 1 1 1 5,000 Qty Rs 1 1 - 8,000 8,000 6,000 - 1 8,000 16,000 15,000 - 1 1 - 10 PCs + 4 phones on DVB 1 1 1 - Qty 20,000 20,000 - 15 PC + 5 phone on DVB Rs 1 1 Qty 40,000 20,000 - - 8,000 - - 16,000 15,000 - 1 1 1 14,000 16,000 15,000 - 8,000 1 8,000 1 8,000 10,000 40,000 12,000 - 1 10,000 60,000 18,000 - 1 10,000 120,000 5,000 12,000 8,000 - 1 10,000 35,000 14,000 3,000 85,000 - 1 10,000 126,000 20,000 5,000 85,000 - 3 2 1 256 of 279 1 1 1 - 1 9 1 10 1 14,000 45,000 35,000 - 8,000 6 1 - 1 6 10 1 - - 3 1 40,000 20,000 - - - 5 1 Rs 1 14 1 15 1 10,000 196,000 20,000 7,500 85,000 - Telecenters in Pakistan Software OS Microsoft OSS/Linux Software Office and enabling Microsoft Office Open Office MIS/Enabling software OS MIS/Enabling software MS Antivirus, OS etc Telephones, etc Metering devices Telephones CDMA Telephones GSM Telephones Land lines Other devices Scanner Fax machine Laser printer Color printer Dot matrix printer Camera Other expenses Installation Training TOTAL CAPEX 10,000 1,500 1 incl above 500 1 1,500 5,000 600 1 1 4,000 4,000 4,000 3,500 1 5,000 8,000 8,000 5,000 4,000 10,000 per PC per PC Rupees US$ Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 500 500 1 1 - 10,000 - 2 20,000 - 3 1 30,000 - 1 - - - - - 87,600 1,460 1 4 1 1 2 2 - 5,000 2,400 4,000 4,000 1,000 1,000 136,400 2,273 1 6 2 1 1 1 3 3 - 3 4,500 - 10 100,000 - 15 6 - 5,000 600 4,000 500 500 60,000 - 6 15 1 5,000 3,600 8,000 5,000 8,000 10,000 1,500 1,500 215,600 3,593 - 2 1,000 10 5,000 - 1,500 1 1,500 2 3,000 - 7,200 8,000 8,000 3,500 5,000 8,000 8,000 5,000 10,000 3,000 3,000 12 2 2 1 1 1 1 1 1 6 6 - 150,000 - 372,200 6,203 257 of 279 6 2 2 1 1 1 1 1 6 6 - 3,600 8,000 8,000 5,000 8,000 8,000 5,000 10,000 3,000 3,000 302,600 5,043 10 4 2 2 1 1 1 2 1 1 1 10 10 - 6,000 16,000 8,000 8,000 3,500 5,000 8,000 16,000 5,000 4,000 10,000 5,000 5,000 566,500 9,442 15 30 4 2 2 2 1 1 2 1 1 1 15 15 - 75,000 18,000 16,000 8,000 8,000 7,000 5,000 8,000 16,000 5,000 4,000 10,000 7,500 7,500 817,500 13,625 Telecenters in Pakistan Operating cost Service Type Unit of Unit cost measurement Bandwidth dial up GPRS EVDO EDGE DVB Voice interconnect Local Mobile International Region 1 International Region 2 International Region 3 Consumables Paper Parts and spares Toner B/W Toner Color Ribbons Employee salaries Level 1 Level 2 Level 3 Utilities Electricity Incremental per PC Electricity ave small Electricity ave medium Electiricty ave large GPRS EVDO EDGE 10 24 144 168 5,000 Rs. Per hour Rs. Per hour Rs. Per hour Rs. Per hour Rs. Per month 1 PC 1 PC 3-6 Pc 3-6 Pc upto 20 PC + teleph. 2 3 3 8 12 0 per page 1,500 per computer per month 4,500 3,200 1,000 5,000 Operator 8,000 Technician 12,000 Manager 500 Rs/month 200 Rs/month base w/o AC 1000 Rs/month 1800 Rs/month 3500 Rs/month MB/hour @ 30%cycle Cost/MB Cost per hour 1.2 20 24 low number of computers - one at a time 7.2 20 144 service upto 4 per connection 8.4 20 168 service upto 6 per connection Rental & Misc Type 1 Type 2 Type 3 Type 4 2,000 4,000 6,000 10,000 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 258 of 279 Telecenters in Pakistan Cost and selling price Rupees Service Unit cost Type Bandwidth dial up GPRS EVDO EDGE DVB per month amort+ BW Voice interconnect Local Mobile International Region 1 International Region 2 International Region 3 Consumables Unit Price 10 24 144 168 6,000 2 3 3 8 12 Paper Parts and spares Toner B/W Toner Color 0.3 1,500 3,500 3,500 Ribbons 1,000 Scanner Assited e-mails Photos Rental & Misc Type 1 Type 2 Type 3 Type 4 Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 1.67 2 9 2,000 4,000 6,000 10,000 20 30 43.2 48.3 per hour per hour per hour per hour 10 10 10 0.9 per hour Selling price 4 5 6 12 15 price per page of 3.06 printing price per page of 1.53 printing 2.50 cost per page scanned 5 per page of e-mail 10.4 per printed picture Per month Per month Per month Per month 259 of 279 20 Telecenters in Pakistan Revenues Monthly 1 PC+ 1 phone Qty Telephone Minutes Local calls Mobile International Region 1 International Region 2 International Region 3 Internet hours dial up GPRS EVDO/CDMA EDGE DVB Rs 4,800 4,800 600 600 600 19,200 24,000 3,600 7,200 9,000 96 4,147 - 2 PC+ 2 phones Qty Rs 7,680 7,680 720 720 720 30,720 38,400 4,320 8,640 10,800 192 8,294 - Printing Scanning & Fax assited e-mails Photos Services 1 Services 2 TOTAL 3 PC + 3 phones Qty 8,640 8,640 960 960 960 34,560 43,200 5,760 11,520 14,400 288 240 120 360 50 67,147 101,174 Rs 6 PCs + 3 phones Qty Rs 6 PCs + 3 phones on DVB Qty 69,120 86,400 4,320 8,640 10,800 20,736 20,736 864 864 864 Rs 12,442 - 720 14,400 - 1,120 22,400 1,568 47,040 1,120 43,680 734 300 1,800 520 360 240 480 80 1,102 600 2,400 832 480 360 720 100 1,469 900 3,600 1,040 480 360 360 100 2,203 1,350 2,700 1,560 528 396 396 110 2,908 1,782 3,564 2,059 - 214,454 260 of 279 208,689 124,416 155,520 7,776 15,552 19,440 17,280 17,280 960 960 864 Rs 69,120 86,400 7,200 14,400 18,000 Telephone quantity = minutes of use Internet = hours Printing = no. of pages Scanning - number of pages Assited e-mails = no. of pages Services = per unit of delivery of specific service Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Rs 15 PC + 5 phone on DVB Qty 17,280 17,280 1,200 1,200 1,200 125,236 17,280 17,280 720 720 720 10 PCs + 4 phones on DVB Qty - 377,557 134,784 168,480 11,232 22,464 19,440 - 410,393 Telecenters in Pakistan Cost of Sales 1 PC+ 1 phone Qty Telephone Minutes Local calls Mobile International Region 1 International Region 2 International Region 3 Internet hours dial up GPRS EVDO EDGE DVB Printing Scanning assited e-mails Photos Services 1 Services 2 TOTAL 4,800 4,800 600 600 600 96 - 2 PC+ 2 phones Qty Rs 9,600 14,400 1,800 4,800 7,200 13,824 - 51,624 7,680 7,680 720 720 720 192 - Rs 15,360 23,040 2,160 5,760 8,640 27,648 - 82,608 3 PC + 3 phones Qty 8,640 8,640 960 960 960 288 240 120 360 50 - Rs 17,280 25,920 2,880 7,680 11,520 41,472 72 200 720 433 108,177 6 PCs + 3 phones Qty 17,280 17,280 1,200 1,200 1,200 720 360 240 480 80 - Rs 34,560 51,840 3,600 9,600 14,400 103,680 108 400 960 693 6 PCs + 3 phones on DVB Qty 17,280 17,280 720 720 720 1,120 480 360 720 100 - 219,841 Telephone quantity = minutes of use Internet = hours Printing = no. of pages Scanning - number of pages Assited e-mails = no. of pages Services = per unit of delivery of specific service Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 261 of 279 Rs 34,560 51,840 2,160 5,760 8,640 1,008 1,469 900 1,440 867 108,643 10 PCs + 4 phones on DVB Qty 20,736 20,736 864 864 864 1,568 480 360 360 100 - Rs 41,472 62,208 2,592 6,912 10,368 1,411 1,469 900 720 867 128,919 15 PC + 5 phone on DVB Qty 17,280 17,280 960 960 864 1,120 528 396 396 110 - Rs 34,560 51,840 2,880 7,680 10,368 1,008 1,616 990 792 953 112,687 Telecenters in Pakistan Cost of Sales 1 PC+ 1 phone Qty Telephone Minutes Local calls Mobile International Region 1 International Region 2 International Region 3 Internet hours dial up GPRS EVDO EDGE DVB Printing Scanning assited e-mails Photos Services 1 Services 2 4,800 4,800 600 600 600 96 - TOTAL with IP Cost = Rs 20/hr 2 PC+ 2 phones Qty Rs 9,600 14,400 1,800 4,800 7,200 960 - 38,760 7,680 7,680 720 720 720 192 - Rs 15,360 23,040 2,160 5,760 8,640 1,920 - 56,880 3 PC + 3 phones Qty 8,640 8,640 960 960 960 288 240 120 360 50 - Rs 17,280 25,920 2,880 7,680 11,520 2,880 72 200 720 433 69,585 6 PCs + 3 phones Qty 17,280 17,280 1,200 1,200 1,200 720 360 240 480 80 - Rs 34,560 51,840 3,600 9,600 14,400 7,200 108 400 960 693 6 PCs + 3 phones on DVB Qty 17,280 17,280 720 720 720 1,120 480 360 720 100 - 123,361 Telephone quantity = minutes of use Internet = hours Printing = no. of pages Scanning - number of pages Assited e-mails = no. of pages Services = per unit of delivery of specific service Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 262 of 279 Rs 34,560 51,840 2,160 5,760 8,640 1,008 1,469 900 1,440 867 108,643 10 PCs + 4 phones on DVB Qty 20,736 20,736 864 864 864 1,568 480 360 360 100 - Rs 41,472 62,208 2,592 6,912 10,368 1,411 1,469 900 720 867 128,919 15 PC + 5 phone on DVB Qty 17,280 17,280 960 960 864 1,120 528 396 396 110 - Rs 34,560 51,840 2,880 7,680 10,368 1,008 1,616 990 792 953 112,687 Telecenters in Pakistan P&L Monthly per hour at Rs. 15/MB) 1 PC+ 1 phone 2 PC+ 2 phones 3 PC + 3 phones 6 PCs + 3 phones on DVB 6 PCs + 3 phones 10 PCs + 4 15 PC + 5 phone phones on DVB on DVB Cost of operations Cost of Sales Depreciation, Rentals, etc Misc 6,000 51,624 2,000 6,000 82,608 4,000 6,000 108,177 5,453 11,800 219,841 6,000 19,800 108,643 21,130 21,500 128,919 30,075 33,500 112,687 40,825 TOTAL 59,624 92,608 119,630 237,641 149,573 180,494 187,012 Revenues 67,147 101,174 125,236 214,454 208,689 377,557 410,393 7,523 8,566 5,606 59,115 197,064 223,381 Profit/Retained earnings 1 PC+ 1 phone Profit/Retained earnings for Internet at volume charge on GPRS/CDMA 7,523 2 PC+ 2 phones 8,566 3 PC + 3 phones (23,188) 6 PCs + 3 phones on DVB 6 PCs + 3 phones 5,606 (23,188) 10 PCs + 4 15 PC + 5 phone phones on DVB on DVB 59,115 Profit/Retained earnings for Internet at volume charge on GPRS/CDMA 250,000 200,000 Rupees 150,000 100,000 50,000 1 PC+ 1 phone (50,000) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 2 PC+ 2 phones 3 PC + 3 phones 6 PCs + 3 phones 6 PCs + 3 phones on DVB 10 PCs + 4 phones on DVB 15 PC + 5 phone on DVB 263 of 279 197,064 223,381 Telecenters in Pakistan P&L with IP costs of GPRS/EVDO same as dial up 1 PC+ 1 phone 6,000 38,760 2,000 Cost of operations Cost of Sales Depreciation, Rentals, etc Misc 2 PC+ 2 phones 6,000 56,880 4,000 3 PC + 3 phones 6,000 69,585 5,453 6 PCs + 3 phones 11,800 123,361 6,000 6 PCs + 3 phones on 10 PCs + 4 15 PC + 5 phone DVB phones on DVB on DVB 19,800 21,500 33,500 108,643 128,919 112,687 21,130 30,075 40,825 TOTAL 46,760 66,880 81,038 141,161 149,573 180,494 187,012 Revenues 67,147 101,174 125,236 214,454 208,689 377,557 410,393 Profit/Retained earnings 20,387 34,294 44,198 73,292 59,115 197,064 223,381 TOTAL with IP Cost = Rs 20/hr 38,760 56,880 69,585 1 PC+ 1 phone Profit/Retained earnings for Internet at Dial up costs 2 PC+ 2 phones 20,387 3 PC + 3 phones 34,294 6 PCs + 3 phones 44,198 6 PCs + 3 phones on DVB 10 PCs + 4 15 PC + 5 phone phones on DVB on DVB 73,292 59,115 10 PCs + 4 phones on DVB 15 PC + 5 phone on DVB Profit/Retained earnings for Internet at Dial up costs 250,000 200,000 150,000 100,000 50,000 1 PC+ 1 phone Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 2 PC+ 2 phones 3 PC + 3 phones 6 PCs + 3 phones 6 PCs + 3 phones on DVB 264 of 279 197,064 223,381 Telecenters in Pakistan Volume 1 Part 11 Resources and Reference materials Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 265 of 279 Telecenters in Pakistan RESOURCES109 TOPIC: Management Resource Name Location Format Target Audience The Role of the Telecenter Manager In Handbook for Telecenter Staffs http://ip.cals.cornell.edu/commdev/documents/module04.doc MS Word Telecenter Staff Preparing a Business Plan In the CTCNet Manual http://www.ctcnet.org/ctc/ctcnetmanual/ch9.pdf PDF NGOs US focus In Handbook for Telecenter Staffs MS Word Telecenter staff Basic Guidelines for Telecenter Financial Sustainability (Developing a Business Plan) http://ip.cals.cornell.edu/commdev/documents/module05.doc PDF In The Community Telecenter Cookbook Developing the Business plan http://unesdoc.unesco.org/images/0012/001230/123004e.pdf (pages 14-58) Determining Program Focus 109 In CTC Manual http://www.ctcnet.org/ctc/ctcnetmanual/ch3.pdf Last Mile Initiative - TRAINING MATERIALS - relevant for LMI operators [draft as of 9/14/05] Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 266 of 279 PDF Telecenter staff Tech Centers & NGOs in the US Telecenters in Pakistan PDF In The Community Telecenter Cookbook http://unesdoc.unesco.org/images/0012/001230/123004e.pdf (pages 71-73) Telecenter staff Day-to-day Management Issues In The Community Telecenter Cookbook PDF http://unesdoc.unesco.org/images/0012/001230/123004e.pdf (pages 75-79) Telecenter staff In The Community Telecenter Cookbook http://unesdoc.unesco.org/images/0012/001230/123004e.pdf (pages 110-120) PDF Telecenter staff Example of a Business Plan Mission, Goals and Objectives WorldLinks CLIC Manual (pages 7-12) PDF Telecenter staff Pricing & Charging for your Services WorldLinks CLIC Manual (pages 32-38) PDF Telecenter staff Modules for Training Telecenter Staffs – An Interim Report with Sample Modules http://www.itu.int/ITUD/univ_access/telecentres/documents/ModTrainingTelecStaff.pdf PDF Telecenter staff Chapter 18 in Telecenters: Case Studies & Key Issues, by the Commonwealth of Learning PDF Project heads and similar high-level management Recruiting a oordinator/manager Training Telecenter Managers, Staff, and Users http://www.col.org/telecentres/chapter%2018.pdf Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 267 of 279 Telecenters in Pakistan Accounting and Financial Management http://www.smetoolkit.org/Category.jsp?iCategoryId=31&locale=1 MS Word Financial personnel Creating an Effective Business Plan http://www.smetoolkit.org/Article.jsp?id=if-amx00027&catid=2&lid=1&locale=1 MS Word Telecenter Staff ICT and Small Enterprise: A Handbook for Entrepreneurs in Developing Countries http://idpm.man.ac.uk/rsc/is/ictsme/entrephbk/index.shtml PDF and Telecenter managers and staff MS Word How to Write a Business Plan http://www.bplans.com/dp/ Online In UNESCO’s CMC Guide Getting Started - Needs Assessment, Mission Statement & Business Plan PDF file online & CDhttp://portal.unesco.org/ci/admin/file_download.php/05.pdf?URL_I ROM D=15714&filename=1084292183505.pdf&filetype=application/pdf&f ilesize=505067&name=05.pdf&location=user-S/ In UNESCO’s CMC Guide Human Resources PDF file online & http://portal.unesco.org/ci/admin/file_download.php/07.pdf?URL_I CDD=15716&filename=1084292362507.pdf&filetype=application/pdf&f ROM ilesize=253643&name=07.pdf&location=user-S/ Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 268 of 279 Telecenter staff – US focus Telecenters in Pakistan TOPIC: Marketing Resource Name Location Format Marketing your Telecenter In Handbook for Telecenter Staffs http://ip.cals.cornell.edu/commdev/documents/module06.doc Marketing Toolkit http://www.apc.org/english/ngos/business/busplan/mtoolkit.htm Using the Internet Target Audience MS Word Field level project staff http://www.apc.org/english/capacity/strategy/index.shtml online Field level project staff Using ICT to Develop Business http://toolkit.idisc.net Online toolkit ICT Managers Review of Telecenter Sustainability Criteria for the Establishment of Sustainable Rural Business Resource Centers for SMEs in Developing Countries http://www.unido.org/en/doc/24187 PDF Field level project staff – fairly advanced – international focus http://www.ctcnet.org/ctc/ctcnetmanual/ch9.pdf PDF Field level project staff – Strategically Preparing a Business Plan for Community Technology Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 269 of 279 Telecenters in Pakistan Centers Scheduling, Outreach, and Evaluation US focus In CTC Manual http://www.ctcnet.org/ctc/ctcnetmanual/ch7.pdf PDF Field level project staff http://www.intelligentcommunities.org.uk/toolkit/sustainability/inde x.htm PDF Field- level project staff (basic) – UK focus The Community Telecenter Cookbook: How to Establish a Multi-Purpose Community Telecenter in Africa http://unesdoc.unesco.org/images/0012/001230/123004e.pdf PDF Telecenter staff Techniques de marketing et de communication Mali CLIC Training (Module 3) (dot-ORG) MS Word Telecenter staff Identifier la clientèle et les services Mali CLIC Training (Module 4) (dot-ORG) MS Word Telecenter staff Identifying your Customers WorldLinks CLIC Training (pages 21-26) PDF Telecenter staff http://www.smetoolkit.org/Category.jsp?iCategoryId=35&locale=1 MS Word Telecenter staff Wired Up Communities’ Practitioners’ Toolkit Marketing and Sales (provides links to various web-based resources) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 270 of 279 Telecenters in Pakistan Telecenter Sustainability : Myths and Opportunities http://www.fao.org/Waicent/FAOINFO/AGRICULT/ags/Agsp/p df/ProenzaTelecenter.pdf PDF Telecenter staff Using the Internet Strategically – Examples of Strategic Use of ICT http://www.apc.org/english/capacity/strategy/index.shtml Online Telecenter management and staff In UNESCO’s CMC Guide Sustainability of CMCs PDF file online & http://portal.unesco.org/ci/admin/file_download.php/12.pdf?URL_I CD-ROM D=15721&filename=1084292960512.pdf&filetype=application/pdf&f ilesize=416730&name=12.pdf&location=user-S/ In “Planning for School Based Telecenters”, Spreading the Word http://info.worldbank.org/etools/docs/library/91628/telecentres/tel ecentres/workshop/session7.htm Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 271 of 279 Downloadab le in PDF formats CMC / Telecenter managers Telecenters in Pakistan TOPIC: TECHNICAL Resource Name Making Computers Work for You Location Format In Handbook for Telecenter Staffs http://ip.cals.cornell.edu/commdev/documents/module10.doc In Managing a Technical Service Center (SchoolNet Africa ) Refurbishing & Maintaining a http://www.schoolnetafrica.net/fileadmin/1Million PC PCsTraining/Module%204/Mod4Intro.htm Target Audience MS Word Field level project staff (very basic) Web-based training School-based computer labs Software Selection and Criteria In CTC Manual http://www.ctcnet.org/ctc/ctcnetmanual/ch5.pdf PDF Field level project staff Space, Hardware, and Security In CTC Manual http://www.ctcnet.org/ctc/ctcnetmanual/ch6.pdf PDF Field level project staff A guide to free resources available to NGOs and businesses Free IT Guide Online Field level project staff PDF file & CMC / Telecenter Choosing Appropriate http://www.bridges.org/toolkit/guide_to_free_it.html In UNESCO’s CMC Guide Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 272 of 279 Telecenters in Pakistan CD-ROM Equipment & Technology http://portal.unesco.org/ci/admin/file_download.php/ 06.pdf?URL_ID=15715&filename= 1084292299506.pdf&filetype=application/ pdf&filesize=223894&name=06.pdf&location=user-S/ Telecenter Technology Chapter 19 in Telecenters: Case Studies & Key Issues, by the Commonwealth of Learning PDF http://www.col.org/telecentres/chapter%2019.pdf Technology Planning – Open Source Software Section of ITrain Online http://www.itrainonline.org/itrainonline/mmtk/opensource.shtml Digital Dividend Web site Resource Marketplace: Software http://www.digitaldividend.org/marketplace/marketplace_11.htm OpenOffice & PDF Links to specific resources online includes links to resources related to open source Digital Dividend Web site Resource Marketplace: Hardware http://www.digitaldividend.org/marketplace/marketplace_05.htm Includes links to resources related to computer donations, computer Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 273 of 279 Links to specific resources online managers Telecenters in Pakistan refurbishing… http://www.amarc.org/wol/English/modules-en.htm Includes a trainer’s guide as well as the following modules: o Introduction to the Internet and Women's Networking Experiences on the Internet o Electronic Mail (E-mail) & Mailing Lists Women Online Training Kit o World Wide Web (WWW) and How to Find Information on the Internet o Creation of Web Pages o FTP (File Transfer Protocol) and Newsgroups o Digital Imaging o Radio on the Internet Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 274 of 279 PDF Online Trainers Telecenters in Pakistan TOPIC: Wireless Location Resource Name Format Section of ITrain Online Wireless Networking Practical Wi-Fi Security Wireless Network MiniTutorial Mobile & Wireless Technology Workshop Mesh Networking http://www.itrainonline.org/itrainonline/english/wireless.shtml HP Solutions - IT Guide Target Audience Links to specific articles Technical Staff Web pages Technical Staff http://www.hp.com/sbso/productivity/howto/it_wifisecurity/index.html WKMN Training http://www.wkmn.com/newsite/wireless.html Web-based Basic Technical Wi-Fi 101 Web-based Basic Technical Wi-Fi Planet Tutorial Web-based Intermediate Technical http://www.wi-fiplanet.com/tutorials/article.php/3520231 Make a Wireless Peer-toPeer connection http://www.practicallynetworked.com/qa/qa20050519.shtml Rural & Remote Broadband Access http://www.crc.ca/en/html/crc/home/research/rrba/rrba Canada (2003) Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 275 of 279 Web-based Intermediate Technical Web-based Telecenters in Pakistan TOPIC: M&E Resource Name Research Methods for Needs Assessment & Monitoring & Evaluation Location Format In Handbook for Telecenter Staffs http://ip.cals.cornell.edu/commdev/documents/module03.doc MS Word In UNESCO’s CMC Guide Research & Evaluation PDF file http://portal.unesco.org/ci/admin/file_download.php/13.pdf?URL_I online & D=15722&filename=1084293119513.pdf&filetype=application/pdf&f CD-ROM ilesize=269729&name=13.pdf&location=user-S/ http://info.worldbank.org/etools/docs/library/91628/telecentres/tel ecentres/SCres_management_home.html#monitoring Target Audience Field level project staff CMC / Telecenter managers MS Word and PDF Includes the following document: Monitoring and Evaluation for School-based Telecenters Research for Telecenter Planning & Operation - Sample evaluation instrument - General evaluation guide - Stakeholder discussion guide - Interview guide - Document analysis guide In APEC Telecenter Training Camp Handbook PDF online http://Telecenter.rdec.gov.tw/document/8_4_Handbook_Part_4.pdf Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 276 of 279 Telecenter evaluators/ma nagers Telecenters in Pakistan TOPIC: Basic Technology Skills Resource Name Microsoft Unlimited Potential Community Learning Curriculum Computer Basics (provides links to various web-based resources) Basic Computer and Communications Skills Location Format Target Audience http://www.microsoft.com/mscorp/citizenship/giving/programs/up /curriculum.asp Accessible by Unlimited Potential grantees only. Includes: Computer fundamentals, Information literacy, and productivity applications ? Telecenter users (?) iTrain Online http://www.apc.org/english/capacity/training/computers.shtml List of hyperlinks Telecenter staff with limited knowledge of computers and beginner users http://www.smetoolkit.org/Article.jsp?id=ifmob00011&catid=36&lid=1&locale=1#1 MS Word Center staff with limited knowledge of computers International Computer Driving Licence http://www.ecdl.com/main/countries.php Basic Skills (Computer Basics, Office Productivity Software, Internet & Email Basics, Finding information online) Section in ITrain Online http://www.itrainonline.org/itrainonline/english/basic_skills.shtml Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 277 of 279 Links to various sites & formats Telecenters in Pakistan Types of ‘Telecenters110 Name Tele Center Definition Name used by the Organization Reference Tele-Centers are “shared Premises” where the Public can access information and Communication Technologies”(Colle & Roman 1991:1) Telecenter Sustainability - Commercial Tele-Center commercial Telecenters are located in urban marginal neighborhoods they are frequented primarily by well-educated young people. to reach the large mass of low-income people, most of whom have limited education, specific measures – promotion campaigns, start-up investment capital, training programs, and demand support during the initial stages while users become familiar with the technology - will need to be instituted. Multi Pourpose Community (1) to set up a one-stop shop information resource center Telecenter 110 Rural Telecenters: e-wwg.com for the people in the barangays, to give them access to people, information and organizations, using simple and Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Myths and Opportunities* “Bridging the rural knowledge gap: Information FAO systems for improved livelihoods” Francisco J. Proenza ITU & UNESCO 278 of 279 Experiences in the Philippine Government’s Multipurpose Community Telecenter Pilot Projects : Policy Implications Ms. Merlita M. Opena Telecenters in Pakistan state-of-the-art communication tools, which can provide answers to the communities’ concerns; and Philippine Council for Health Research and Development Department of Science and Technology (2) to serve as a venue for learning, interaction as well as for creating content and ICT-based applications in education, health, agriculture and rural enterprise development which respond to the needs of the communities. Little Intelligence Communities (LINCOS) Operation in Costa Rica and Three in the Dominican Republic Cyber Café LINCOS is an innovative multi – Purpose community Tele-Center that integrates a Varity of services and multimedia application to empower community Development Cybercafés often provide as many services as other types of Telecenters. They train their clients (for example, in basic computer skills and office Massachusetts Institute of Technology, Cambridge, MA USA FAO Tele-Cottages TeletechGlobal Telecenters combination of “ Internet café, virtual classroom, internet service provider and small (electrical appliance and equipment) showroom under one roof” Salman Ansari Technology Consultants (Pvt) Ltd Final Report Oct 17, 2006 Telecenter Sustainability -Myths and Opportunities* “Bridging the rural knowledge gap: Information systems for improved livelihoods” Francisco J. Proenza applications) - either in response to local demand or to stimulate demand for their services Telecottage is on the more general level, rural modernization, economic development, and a strengthening of democracy and civil society. More specifically, the goals are provision of services to as many as possible with the help of telecottages as an infrastructure. Comparing Urban & Rural Telecenter Cost, Hani Shakeel hshakeel@mit.edu , Michael Best mikeb@media.mit.edu , Bruno Miller brunom@mit.edu , Sam Weber Hungarian Telecottage Association/ ITU FAO Telecottage in Hungary, unpublished 2001 manuscript paper produced by Hungarian Telecottage Association. Telecenter Sustainability -Myths and Opportunities* “Bridging the rural knowledge gap: Information systems for improved livelihoods” Francisco J. Proenza 279 of 279