Rural telecommunications overview for Asia-Pacific
Pan-Asian Rural Communications Summit Hongkong 24-26 October 1994 Michael Minges Telecommunications Development Bureau (BDT)
Pan-Asian Rural Communications Summit
Regional rural population 1992 71%
71%
SubSaharan Africa
East Asia & Pacific
75%
27%
Latin America
Source: World Bank.
South Asia
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Pan-Asian Rural Communications Summit
Asia rural population > 50% rural
Source: ESCAP.
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Pan-Asian Rural Communications Summit
Rural population Asia-Pacific population distribution 1992 total: 3 billion
Rural 67% Urban 33%
Source: ESCAP. 4
Pan-Asian Rural Communications Summit
Rural employment Asia-Pacific employment distribution 1990 total: 961 million Agriculture 55%
Other 45%
Source: ESCAP. 5
Pan-Asian Rural Communications Summit
Rural economy Asia-Pacific GDP distribution 1992 total: US$1'564 billion
Agriculture 23% Other 77%
Source: World Bank. 6
Pan-Asian Rural Communications Summit
Measurements of rural telecommunications • Largest city telephones • Rural telephones • Localities with telephone service
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Pan-Asian Rural Communications Summit
Telephone distribution Developing Asia-Pacific, 1992
29%
Urban
83% 71%
Rural Population
Source: ITU.
17% Main lines
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Pan-Asian Rural Communications Summit
Largest city telephones Developing Asia-Pacific, 1992 8.57 Teledensity
Largest city
Source: ITU.
0.74
1.07
Rest of country
Overall
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Pan-Asian Rural Communications Summit
Localities with telephones % with Country Type telephones India (92) Villages (580’000) 17% Philippines (92) Municipalities (1’600) 20% Thailand (92) Tambons (4’000) 25% Viet Nam (90) Villages (9’000) 24%
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Pan-Asian Rural Communications Summit
Why poor rural communications? • Other priorities • No money • Not profitable
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Pan-Asian Rural Communications Summit
Rural revenues Pakistan Average Outgoing Monthly Revenues
Public Call Office $116 Institution $135 Business $69 Residence $17 DON’T FORGET THE INCOMING! Source: Canadian International Development Agency (CIDA)
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Pan-Asian Rural Communications Summit
Rural telephone usage Thailand, national long distance calls 1'200 1'000
Provincial Telephone Area Metro Telephone Area
800 m
600
Projection
400 200 2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
0
Source: TOT. 13
Pan-Asian Rural Communications Summit
What the manufacturers say • “We have developed systems for emerging countries...can be installed in approximately half the time and at half the cost of traditional wireline systems”—Hughes Network Systems • “New switching now available...rapid economic return...reducing project costs”—MITEL
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Pan-Asian Rural Communications Summit
What the governments say • “...extend areas of basic telecommunications services to all those underprivileged living in rural and remote areas” — ITU/ASRDC, Singapore 1993 • “...seek solutions for network expansion, particularly in rural areas...provide at least the basic telephone services within easy reach of the people” — Asia-Pacific Declaration, Singapore 1992
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Pan-Asian Rural Communications Summit
Organizational policies • • • •
Incumbent operators Revenue sharing Rural operators Carrot & Stick
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Pan-Asian Rural Communications Summit
Incumbent operators Malaysia
• Telekom Malaysia • Decentralized • 6 regional operations
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Pan-Asian Rural Communications Summit
Revenue sharing Thailand
• Thai Telephone & Telecommunications Co., Ltd. • 25 year concession to install one million lines in provinces • Contract signed 2-7-92
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Pan-Asian Rural Communications Summit
Rural operators Bangladesh
• Bangladesh Rural Telecommunications Authority • 50% private • Licensed to operate in 199 thanas (out of 402) for 25 years
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Pan-Asian Rural Communications Summit
Carrot & stick Philippines
• Executive Order 109 13/7/93 • Existing and prospective international gateway operators to provide 300’000 lines in 3 years • Nationwide cellular operators provide 400’000 lines in 5 years
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Pan-Asian Rural Communications Summit
Universal Service • Provision of a basic level of telephone service to all, at affordable rates
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Pan-Asian Rural Communications Summit
Telecommunications Development Bureau (BDT) • Integrated rural development programme • Study Group: Communications for rural and remote areas
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Pan-Asian Rural Communications Summit
Rural multimedia heaven
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