[WSIS CS-Plenary] WSISPapers Newsletter No.6 - Universal Access Funds (UAFs)

WSIS Papers accuosto at chasque.net
Fri Apr 1 23:49:28 BST 2005 

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       WSIS Papers Newsletter -  March 2005 - No.6
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In this issue:     UNIVERSAL ACCESS FUNDS

Content:

- The State loses space
- Beyond the market zone: The funding of universal access
- UAFs in developing countries
- Universal access and service: background information

Available online at:
  http://wsispapers.choike.org/

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The issue of funding is at the hub of the preparations for the second phase
of the World Summit on the Information Society (WSIS) to take place in Tunis
in November 2005. The central elements of this debate are the definition of
the protagonists and the most appropriate solutions to attain the objectives
proclaimed in the first phase in Geneva, in the year 2003.

In the last two decades the advent of a new vision of goods and services
related to information and communication technologies reduced the State's
power as a decision maker. Over the past twenty years, the telecommunication
sector has been radically taken on a commercial rationale in which numerous
operators wage ferocious competition.

While limited, it would be false, however, to assert that the State no
longer has any space to ensure financing for universal access. New
mechanisms thus have appeared: universal service obligations included in the
concessions and licenses granted to operators, taxes on asymmetric
interconnections favoring rural operators and, particularly, universal
access funds. The latter appears to be one of the most promising of these
mechanisms.

Born in 1994 in Latin America, universal access funds have seen a phenomenal
expansion in recent years as a consequence of success. The process is
simple: the State, in collaboration with local authorities, first identifies
needs and divides them into small projects (for example, one tele-centre in
each of the ten midsized towns of the country). It then sets them "in
competition": the company that requires least subsidies gets the license to
operate.

Presently, these funds exist or are being planned in close on 60 developing
countries or countries in transition. Their objective is to enable
communication services in the hands of private companies to be established
in rural and/or isolated regions, by granting a subvention to cover the
costs and high initial investment.

Although the very recent nature of these mechanisms and the variability of
the results do not enable an in depth assessment to be made, some of their
aspects have proven to be very promising. Firstly, the innovative and
original method of allocating subsidies through setting operators in
competition, leads to considerable savings. Secondly, the broad
applicability of the model, which applies to infrastructure projects as well
as to the creation of contents. Finally, the definition of projects by a
single entity, makes it possible to have an overall coherent vision at
national level.

Based on the paper "The funding of universal access" by Joëlle Carron

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 The State loses space
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*  The global information society: visions, people and power
University of Geneva
Cees Hamelink
This paper develops the notion of information society, and how "the current
system of global governance greatly determines on a supranational scale, the
space available for national governments to fix their national policies".
--> http://www.unige.ch/iued/wsis/DEVDOT/01927.HTM

*  Policy and Regulatory Challenges of Access and Affordability
Alison Gillwald
The author claims that throughout the developing world, monopolies have
failed to meet the mandates of universal and affordable service: while
privatisation and competition may be necessary conditions to expand access
to basic and advanced communication services, they are far from sufficient.
The ability of the market to contribute to public interest outcomes of
access, affordability, quality and choice of service is dependent on the
existence of capacities and resources to implement, monitor and enforce the
relevant policies. If these conditions do not exist, as they do not in many
developing countries, the adoption of privatisation and liberalisation
strategies could be counterproductive. PDF format.
--> http://www.lirne.net/resources/netknowledge/gillwald.pdf


* WTO trade agreements and ICTs
WSIS Papers
This report analyzes the way in which the WTO and trade agreements have
dealt with the telecommunications sector in the past two decades. The
"commodity" approach to ICTs has hindered the access to communication and
information as a fundamental human right as the private sector gains power
through liberalization. Also available in Spanish.
--> http://www.choike.org/nuevo_eng/informes/2395.html


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 Beyond the market zone: The funding of Universal Access
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*  The funding of universal access
Joëlle Carrion
WSIS Papers
The reduction of the digital divide is, in itself, a global public good and
consequently, its funding must be ensured supportively by the entire
international community. The path to achieve this objective is, in
particular (but not exclusively), through an especially promising mechanism:
that of universal access funds. For the international community, this is on
the one hand to encourage States to establish such funds, and on the other,
to study the possibility of establishing a universal access fund on a world
scale. PDF format.
--> http://wsispapers.choike.org/funding_universal_access.pdf

*  A new policy framework for ICTD
APC
This draft paper by APC states that many countries have established
Universal Access Funds to channel finance for ICTs into under-served areas
but these do not always integrate with mainstream development projects: the
terms of reference of Universal Access Funds should be broadened to include
financial support not only for network extension in under-served areas but
also for capacity building, content and applications development, free and
cost-effective software, language development, mainstreaming ICTs with
development strategies. An ICTD Agency should be established to oversee,
coordinate and facilitate these tasks and administer the Universal Access
Fund. Word format.
-->
http://www.apc.org/apps/img_upload/6972616672696361646f63756d656e74/policyfr
amework_ICTDv4_1.doc

* Telecommunications and information services for the poor: towards a
strategy for universal access
World Bank
This discussion paper looks at ways of expanding access to ICTs and so
bridging the digital divide. Acknowledging the "market efficiency gap", it
advocates a greater focus on universal access programs which would have
specific pro-poor aims. PDF format.
-->
http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2002/05/03/000
094946_02041804225061/Rendered/PDF/multi0page.pdf

* Rural telecommunications development in a liberalizing environment: an
update on the Universal Access Fund
Andrew Dymonk, Sonja Oestmann
World Bank
This note provides an update on the experience gained by universal access
funds and their licensees together with the actual record of achievements in
the countries that have implemented these programs. The experience is
reviewed from two perspectives: first, whether government targets to serve
remote and low-income communities are being achieved; and second, whether
the funds have been effective in catalyzing market-oriented and commercially
sustainable service provision in the long run. PDF format.
--> http://rru.worldbank.org/PapersLinks/Open.aspx?id=1217

*  Who pays for the Information Society? Challenges and issues on financing
the Information Society
Bread for All
The first part is a critique of the debates and work on financing so far
conducted by the WSIS. The second part focuses more on proposals and aims to
give a certain number of inputs to the WSIS debate, especially on the issue
of international public financing or official development aid. PDF format.
--> http://www.ppp.ch/cms/IMG/Financing_IS.pdf

*  Task Force on Financial Mechanisms (TFFM) final report
ITU
The TFFM was established by the UN Secretary General to review financial
mechanisms for ICT for development. This is the final report, released
November 2004, in which the universal access approach is reviewed among
other mechanisms. PDF document.
--> http://www.itu.int/wsis/tffm/final-report.pdf


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 UAFs in developing countries
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* Universal Access Funds
Intelecon Research
This report focuses on examining the funds that are used to promote
universal access in developing countries and emerging markets. It also
provides a brief summary of some of the telecommunications funds that are
either planned or have been implemented in developing countries. PDF
document.
--> http://www.inteleconresearch.com/pdf/ua%20funds%202004%20update.pdf

*  UNECA urges Universal Telecom Fund
As access to the Internet remains limited in many rural areas in Africa, the
United Nations Economic Commission for Africa (UNECA), through its African
Information Society Initiative (AISI), is looking at ways to expand online
usage, especially in remote areas of the continent. In trying to balance
rural and urban access to the Internet, UNECA is suggesting the Universal
Access Fund approach, where the telecommunications operators and ISPs
(Internet service providers) contribute money in a common fund that is then
utilized to provide basic telephone and Internet access in rural areas.
--> http://www.choike.org/nuevo_eng/informes/2352.html

* Universal Access Funds in Latin America and the Caribbean
ECLAC
This document by the Economic Commision for Latin America and the Caribbean
(ECLAC) states that given the budget constraints faced by the Governments of
Latin America and the Caribbean, policies to provide phone lines, computers
or Internet access to all homes in the region, which would constitute a
genuine "universal service", are unrealistic. The most frequent practice
would be to pursue "universal access", by assuring the population's right to
obtain ICT services at accessible prices and at a "reasonable" distance from
their place of residence or by extending telephone lines to isolated rural
areas and providing free Internet access to low-income sectors through
community telecentres. This annex, part of a larger report, describes the
funding sources and uses made of universal access funds in seven countries
of Latin America and the Caribbean. PDF format.
--> http://www.choike.org/documentos/cepal_fondos.pdf

* Peru Telecoms Investment Fund
Global Knowledge Partnership
Traditional approaches to telecoms provision in Peru, first a government
monopoly, then since 1998, a liberalized competitive market, have made
little progress in providing telephony access to Peru's highly dispersed
rural areas. The implementation of the universal access fund approach
obtained considerable success.
-->
http://www.globalknowledge.org/gkps_portal/thematic.cfm?&menuid=229&thematic
id=32&action=ThResView&ResId=852&type=37

*  Negotiating the net: The Ghana case
Center for International Development and Conflict Management, University of
Maryland
William Foster and Eric M.K Osiakwan
This article analyzes the evolution of telecom access in Ghana after its
liberalization of the sector and the adoption of the Accelerated Development
Program (ADP), which included the setting of a Universal Access Fund called
the Ghana Investment Fund for Telecoms (GIFTEL), originally aimed at
building rural infrastructure. Word document.
--> http://www.cidcm.umd.edu/ntn/ghana/Ghana12%5B1%5D%5B1%5D.31.03.DOC

*  Uganda: a success story?
PANOS
Uganda's ICT infrastructure strategies (with "fully liberated markets")
include network rollout obligations in operator licenses. Uganda is one of
the first countries in Africa to implement a universal access fund -the
Rural Communications Development Fund (RCDF)- operating on principles
emerging internationally as best practice for allocating 'smart subsidies'
to private companies. PDF format.
--> http://www.panos.org.uk/files/Uganda.pdf

*  Designing effective and efficient funding mechanisms for rural
connectivity in Sri Lanka
Social Science Research Council (SSRC)
Rohan Samarajiva
This document analizes the experience and difficulties encountered in Sri
Lanka with the implementation of a "universal access fund" by the government
aiming to improve rural connectivity. Similar experiences occured in Chile.
PDF format.
-->
http://www.ssrc.org/programs/itic/publications/ITST_materials/samarajivabrie
f2.pdf

*  Closing the gap in access to rural communications: Chile 1995-2002
World Bank
Björn Wellenius
Björn Wellenius
During the 1990's Chile experienced a rapid growth in telecommunications
services resulting in new services that extended countrywide, technological
innovation, and prices among the world's lowest. Most rural inhabitants and
some urban dwellers, however, continued to lack access to even a payphone.
In 1994, the government established a telecommunications fund to mobilize
additional private investment to narrow this gap. This study reviews and
documents the cost effective approach developed in Chile that has become the
international best practice for improving basic access to telecommunication.
PDF format.
--> http://rru.worldbank.org/Documents/PapersLinks/1222.pdf

* The internet in the Andes: Bolivia case study
Sonia Jorge, Michael Minges, Ben Petrazzini
ITU
This paper analyzes the situation of access to ICTs in Bolivia as well as a
review of the implementation of universal access policies in the country.
PDF document.
--> http://www.itu.int/osg/spu/wtpf/wtpf2001/casestudies/bolivia.pdf


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 Universal access and service: background information
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* Universal access and service
Columbia Business School
This collection of papers and reports analyze "universal access", as the
right of any person or organization to sipply programs and content services
at non-discriminatory terms and "universal service", as the technical
connection of every residence, institution, and business establishment at
minimal or fair cost.
--> http://www.vii.org/afuniv.htm

* Rural development and Universal Access
International Telecommunications Union (ITU)
The Telecommunication Development Sector of the ITU has a policy mandate on
Rural Development and Universal Access (set at the World Telecommunication
Conference in Malta, 1998).
--> http://www.itu.int/ITU-D/univ_access/

* Universal service: International experience
Link Centre, University of the Witwatersrand
This document is part of a series of Conference Papers on ICTs in 2000.
Participants expressed their views and analized national experiences of
"universal access" policies. PDF document.
--> http://link.wits.ac.za/research/ICT_2000_Session1.pdf

* What do we mean by "Universal Access?"
Internet Society
This paper outlines some of the key policy concerns around access to the
information infrastructure. In particular, it examines issues of access from
social as well as technical perspectives.
--> http://www.isoc.org/inet96/proceedings/f2/f2_1.htm

* Universal Access Project
University of Toronto
The Universal Access Project grew out of the Information Infrastructure
(DIPCII) project in 1996, at the University of Toronto with the purpose of
conducting in-depth research on the topic of universal access to networked
services in Canada. Although the project focused on the circumstances that
define and impact the Canadian situation, the papers and articles that can
be found here (such as "What do we mean by 'Universal Access'?: social
perspectives in a Canadian context", by Andrew Clement and Leslie Regan
Shade) also provide a valuable insight into the general notion of "universal
access" and international information infrastructure projects.
--> http://www.fis.utoronto.ca/research/iprp/ua/

* Access in Africa
APC Africa Monitor
APC Africa Monitor Although the use of ICTs has grown rapidly from a low
base in developing countries (particularly in Africa), this progress is not
keeping up with advances in the more developed world. And by their very
nature, the governments of low-income countries find it hard to prioritise
spending on ICTs access over more pressing demands like health care. This
page collects news, information, resources, events, and the names of
organisations working in access.
--> http://africa.rights.apc.org/index.shtml?apc=21860se_1


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 Related Choike's in-depth reports
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* World Summit on the Information Society (WSIS)
-->  http://www.choike.org/nuevo_eng/informes/703.html

* World Trade Organization Organization (WTO)
-->  http://www.choike.org/nuevo_eng/informes/385.html

* GATS - Trade in Services
--> http://www.choike.org/nuevo_eng/informes/1169.html

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- "WSIS Papers" and "Choike" are projects of the
Instituto del Tercer Mundo (ITeM) -  Third World Institute

- "WSIS Papers" is supported by the
International Development Research Centre (IDRC) / PanAmericas
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