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Model Universal Service Fund Policy Procedures and Implementation ITU/BDT Arab Regional Workshop “Visibility of Rural Connectivity” Khartoum, Sudan, 5-7 September 2004 Presentation by Kojo Boakye Research Officer , CTO. Summary. The need for Universal Service Funds - PowerPoint PPT Presentation
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© Commonwealth Telecommunications Organisationthe ICT for development experts
Model Universal Service Fund Policy Procedures and Implementation
ITU/BDT Arab Regional Workshop“Visibility of Rural Connectivity”
Khartoum, Sudan, 5-7 September 2004
Presentation by Kojo Boakye
Research Officer , CTO
© Commonwealth Telecommunications Organisationthe ICT for development experts
Summary1. The need for Universal Service Funds2. Fund Mission, Priorities and Objectives 3. Authorising and Enabling Laws and Policies 4. Sources of Contribution to the Fund5. Management and Administration of the Fund6. Procedures for Determining Funding Allocations7. Project Definitions and Criteria8. Proposal Evaluation and Criteria9. The Commonwealth Telecommunications Organisation
(CTO)10. Conclusion
© Commonwealth Telecommunications Organisationthe ICT for development experts
1. The Need for Universal Service Funds
More than 70% of the worlds’ extremely poor live in rural areas and they highlight the need for Universal Access (UA).
Urban focus of ICT expansion is largely due to costs
and risks associated with investing in rural areas.
National digital divides create a need for additional investment mechanisms aimed at achieving UA.
We must not underestimate the need for efficient USFs
© Commonwealth Telecommunications Organisationthe ICT for development experts
2. Fund mission, objectives and priorities (1)
Overriding mission and vision:– Contribute to national economic
development and social well-being– Promote technological innovation in
the telecommunications sector– Promote competition in the
telecommunications market– Establish efficient, self-sustaining
market-oriented businesses
© Commonwealth Telecommunications Organisationthe ICT for development experts
2. Fund mission, objectives and priorities (2)
Practical objectives and priorities:– Provide access to advanced
communications capabilities– Provide universal access to basic
telephone communication– Provide support for economic
development and opportunity– Provide direct support to public and
community service institutions
© Commonwealth Telecommunications Organisationthe ICT for development experts
All key development programmes begin at a high level of national legislation, presidential decrees, or ministerial policy statements
Frameworks to ensure credibility and consistency with other national policies
Use general language, to avoid overly restricting implementation of objectives
3. Authorising and Enabling Laws and Policies (1)
© Commonwealth Telecommunications Organisationthe ICT for development experts
3. Authorising and Enabling Laws and Policies (2)
Define principles of the right to communications access
Define objectives and obligations for national telecommunications development
Mandate establishment of Universal Service/Development Fund
Define responsibilities for implementing and administering the Fund
© Commonwealth Telecommunications Organisationthe ICT for development experts
3. Authorising and Enabling Laws and Policies (3)
Emphasise market-oriented, non-discriminatory principles
Establish enforcement and dispute resolution powers
© Commonwealth Telecommunications Organisationthe ICT for development experts
4. Sources of Contributions to the Fund (1)
Equitable contribution by all market participants
Fixed percentage of designated revenues
Key questions:– Who should contribute?– What revenues should be covered?– Should anyone receive special
treatment?
© Commonwealth Telecommunications Organisationthe ICT for development experts
4. Sources of Contributions to the Fund (2)
Contribution amounts determined through appropriate market analysis– Needs assessment
Cost analysis– Revenue/demand forecasts and fee
calculations Limited options for “in-kind”
alternatives to direct financial contributions
© Commonwealth Telecommunications Organisationthe ICT for development experts
5. Management and Administration of the Fund (1)
Under control of independent telecom regulatory authority
Management autonomy Independent budget, separate
accounting
© Commonwealth Telecommunications Organisationthe ICT for development experts
5. Management and Administration of the Fund (2)
Regulatory Agency Board of Directors(Commissioners)
Fund Advisory
Committee
Universal Service
Regulatory Agency Management
Fund Director
Accounting,Legal
Project Managers
Assist. Director
Economics Division
Accounting, Legal
© Commonwealth Telecommunications Organisationthe ICT for development experts
5. Management and Administration of the Fund (3)
Accounting Standards and Procedures: Contributions
– Payments, Documentation, Certification, Audit
Fund accounts and budgets– Project Fund– Operating Budget– Reserve Fund
Project budgets
© Commonwealth Telecommunications Organisationthe ICT for development experts
6. Procedures for determining funding allocations (1)
Operating Plan– Intended projects and targets for
planning period (1-2 years) Projects
– Activities funded by the USF Concessions
– Licenses, grants, awards to individual applicants to use Fund resources in fulfillment of a Project
© Commonwealth Telecommunications Organisationthe ICT for development experts
6. Procedures for determining
funding allocations (2) Target Objectives
– Interim targets for each category of Fund assistance
– Highest priority typically to basic telephone access
– Allocations based on relative degree of progress toward targets
© Commonwealth Telecommunications Organisationthe ICT for development experts
6. Procedures for determining funding allocations (3)
Socio-economic Priority Criteria:– Locations where economic conditions
inhibit pure market-based solutions– Population with low relative income– Population not integrated with a
centre of development– Scarce and dispersed population– Population with low access to
infrastructure and communications– Historically disadvantaged groups
© Commonwealth Telecommunications Organisationthe ICT for development experts
7. Project Definitions and Criteria (1) Universal Access to basic telephone
services - Availability of public telephones by village - Distance and time parameters - Affordability - Accessibility - Ease of use
Access to advanced telecommunications and information services
- Bandwidth and Transmission Quality - Access to Computers and other devices - Training support
© Commonwealth Telecommunications Organisationthe ICT for development experts
Economic development and small business support
- Access to advance business data and network services
- Business-orientated Internet services Public service institution support - Interactive Multimedia services and
capabilities - Specialised content development
7. Project Definitions and Criteria (2)
© Commonwealth Telecommunications Organisationthe ICT for development experts
8. Proposal evaluation and criteria (1)
Six Criteria of Evaluation
1. Location2. Quality of Service3. Quantity of Service4. Community Benefits5. Implementation Plan6. Cost
© Commonwealth Telecommunications Organisationthe ICT for development experts
8. Proposal evaluation and criteria (2)
Three Stage Process of Evaluation
Stage 1: Pre-qualification
Stage 2: Request for clarification, expansion, or modification of pre-qualified proposals
Stage 3: Evaluation of revised proposals and award of concessions
© Commonwealth Telecommunications Organisationthe ICT for development experts
Model Universal Service Fund Policy and Implementation
A CTO report
With contributions from:
ITU and David N. Townsend & Associates
© Commonwealth Telecommunications Organisationthe ICT for development experts
Model Universal Service Fund Policies and Procedures
Part II: Minimum Subsidy Auctions for Provision of Public Access
Telecommunications in Rural Areas Describes Model processes and procedures
for applying USF financing to construct and operate new public access telecommunications facilities in unserved rural areas in developing and least developed countries, based on a minimum subsidy competitive auction mechanism.
© Commonwealth Telecommunications Organisationthe ICT for development experts
Model Universal Access Policies
Part III: Entrepreneurial Strategies for Stimulating Telecommunications Market
Development Examines option for stimulating the
development of telecommunications markets in underserved areas using entrepreneurial ventures that are supported by a liberalised public policy.
© Commonwealth Telecommunications Organisationthe ICT for development experts
9. The Commonwealth Telecommunications Organisation
The CTO is a 100 year old International Organisation owned by 53 Member Countries and an ever increasing number of Sector Members. The CTO specialises in promoting the use of ICTs for development.
© Commonwealth Telecommunications Organisationthe ICT for development experts
9. Vision
To become the pre-eminent international ICT organisation dedicated to promoting social and economic development in the Commonwealth and beyond by helping to bridge the digital divide.
© Commonwealth Telecommunications Organisationthe ICT for development experts
9. Mission– Offer highest quality programmes for capacity
development, knowledge sharing and information services to member countries
– Deepen, expand and diversify partnerships between governments, businesses & other organisations to reduce global poverty & achieve Millennium Devt. Goals for ICT
– Help bridge the digital & knowledge divide especially in the five key sectors of food & agriculture, education, health, e-government & e-commerce
© Commonwealth Telecommunications Organisationthe ICT for development experts
Membership & market for CTO Service
National Government
Regulator
ICT Service Operators
Commun-ications Ministry
Full membershipSector membership
Industry (supply)partners
PDTcontributorsRegulator
ICT Service Operators
Development (funding) partners
CTORelationships
Telco
Regulator
Industry & development partners
Telcos
Mobile operators
ISPs
Broadcasters
© Commonwealth Telecommunications Organisationthe ICT for development experts
Range of CTO Products & Services (Applied to priority development
areas) Capacity building services
– Training & Consultancy– International & regional events– Country & company specific events– Development programmes
Research & in-country studies Information & Publication Services Consultancy, advisory & recruitment
Flexibility of supply is a key feature
© Commonwealth Telecommunications Organisationthe ICT for development experts
CTO New Initiatives Knowledge and Research: The Impact of
Telecommunications on Rural Livelihoods New Programmes for Training and
Development Tel – Coop Sea Gateway National ICT Road Map CTO Tariff Centre Portfolio of CTO Courses ICT Professionals’ Database
© Commonwealth Telecommunications Organisationthe ICT for development experts
10. Conclusion1. The need for Universal Service Funds2. Fund Mission, Priorities and Objectives 3. Authorising and Enabling Laws and Policies 4. Sources of Contribution to the Fund5. Management and Administration of the Fund6. Procedures for Determining Funding Allocations7. Project Definitions and Criteria8. Proposal Evaluation and Criteria9. The Commonwealth Telecommunications
Organisation (CTO)10. Conclusion
© Commonwealth Telecommunications Organisationthe ICT for development experts
Contact details
Research Officer:Mr Kojo Boakye
26/27 Oxendon Street,London, SW1Y 4ELTel: +44 (0)20 7839
1381Fax: +44 (0)20 7930
4248 [email protected]
www.cto.intwww.cto-ict.orgwww.ictdevagenda.org