Application of ICTs for rural economic development

Voice telephony has been the main option for providing access to telecommunications in rural areas. Today, a wide variety of new applications such as e-mail, e-commerce, tele-education, tele-health, and tele-medicine, among others, has made access to interactive multimedia services as important as - maybe even more important than - voice connectivity alone. Since each rural district or community requires a different mix of voice, text, image, video and audio communications to best meet its needs, telecommunication network operators must be able to support the widest possible range of services and/or applications and different bandwidth levels at a reasonable cost.

The Internet (with the unavailibity of IP network in rural area) is the most widely used platform used to deliver multimedia applications in rural areas of developing countries. Satellite broadcasting has also been widely adopted in distance education programs and other videoconferencing-based consultations in remote areas. These two platforms are expected to converge as Internet broadcasting and satellite-based Internet links continue to be developed. While much negative attention in developing countries has been focused on the use of the Internet as an illegal bypass mechanism in the international traffic arena, the long-term importance of the Internet for developing countries lies in its potential to improve the domestic flow of economic and educational resources between isolated rural communities and urban centers, until such technology IP networks are provided to the rural areas.

Technologies for rural applications

The following are basic requirements for communications systems deployed in rural areas of developing countries:

1. Implementation and operation is possible at a low cost in areas where population density is low;
2. The system can be easily installed, even in remote and inaccessible locations;
3. System operation and maintenance may be carried out even where qualified technical personnel are scarce;
4. Implementation is possible even when basic infrastructure such as mains electricity, running water, paved road networks, etc., are absent.

An increasing number of technologies are available that can meet the above requirements at a reasonable cost to rural network operators.

1. Wireless access systems

   Wireless communication technologies, such as fixed wireless access (FWA) and very small aperture terminals (VSATs), are effective means of establishing telecommunication networks in rural areas due to their advantages over wired telecommunications in terms of cost and ease of installation. For example, when installing telephones in sparsely populated rural areas, wireless communication technologies such as PHS, GSM, DECT, and other cellular technologies can be used in conjunction with satellite stations and point-to-multipoint radio systems to achieve coverage of isolated settlements over long distances.

2. IP-related technologies

   With the Internet becoming internationally widespread, the focus of new network construction around the world is shifting rapidly from conventional PSTN to IP-based technologies. Emerging packet-based wireless access technologies, such as IMT-2000 and wireless routers, are being designed to deliver a wide range of traffic types more efficiently and inexpensively than traditional wired and cellular telephony networks.

   Existing satellite operators and planned satellite systems are retrenching in order to serve the global market for Internet access and broadband communications. These technologies have much potential for use in rural areas, but they are just beginning to enter the marketplace. In order to lower the risks faced by network operators in developing countries, new systems offering transitions to packet- and IP-based network architectures need to be tested and, in all probability, developed further in order to meet the requirements of rural areas.

   Furthermore, the integration of wireless, IP-based routers with voice-over-IP software offers developing countries the additional technology option of constructing wide area networks to solve the last mile problem in rural areas. Wide area networks can be configured to share bandwidth between telephony and Internet efficiently, while taking advantage of the low cost of network servers and the easy installation of wireless systems.

3. Multimedia terminals

   The installation of inexpensive multimedia user terminals can be an effective way of providing access to Internet and multimedia services without resorting to costly and complex personal computers. E-mail, voice and video communications are becoming available through non-traditional devices, such as home entertainment systems, which cost in the range of US$300-$500 per terminal These systems can be installed at multipurpose community telecenters and shared by many users.

   E-mail-only stations, Internet client appliances, e-commerce server appliances and cellular telephones that accommodate wireless protocols such as i-mode and WAP are additional examples of the variety of devices already available in the marketplace. The proliferation of multimedia devices, and the ability to custom design and modify them, offers tremendous flexibility in the design of applications for rural areas. The price of this flexibility, however, is that service providers must understand the unique needs of their rural customers in order to determine the criteria by which to select technologies and applications.

   The wholesale price of a typical Internet appliance unit is estimated to lie in the range of US$600 to $700. This is the same price range as a low-end PC. Although Internet clients contain fewer components than PCs, their pricing is similar due largely to the much greater scale of PC production. Deployment of Internet appliances in rural areas of developing countries over the next several years would be unlikely to lower the initial investment costs of providing Internet access compared to the deployment of low-end PCs.

   Deployment of remotely managed networks of multimedia terminals, such as the Internet appliance solutions described in Section 6, should be explored in order to make it easier for rural inhabitants to learn how to use the Internet by doing away with the need for many PC management skills. Another expected advantage would be lower lifetime maintenance costs and slightly lower power requirements per unit. Social benefits could be increased by providing a mechanism for service providers to direct relevant content to rural inhabitants who might be unable to navigate the Internet on their own. Internet appliance solutions may be able to provide some or all of these benefits at a lifetime cost no higher than that of a comparable PC-based solution.

Encouraging the development of new technologies

To fulfil its mandate from TDAG to "list new measures to be taken by ITU-D to encourage manufacturers and relevant organizations to create technology tailored to developing countries," and "among those measures, recommend priorities that ITU-D should follow to help achieve the development of technology for rural applications," Focus Group 7 has prepared six recommendations, listed in Section 7.3. In addition, the focus group has identified a number of general principles to help private sector companies design products to address the rural communications and IT markets in developing countries. These principles are included in the report as Annex 3. In particular, these guidelines are aimed at companies in the computing and IT industry who may have little familiarity with the disadvantages of rural areas in developing countries.

Legacy of the Maitland Commission

"Dramatic advances in the technology of telecommunications are taking place at a time when the role telecommunications can play in economic and social development throughout the world is more important than ever. It is our considered view that henceforward no development programme of any country should be regarded as balanced, properly integrated or likely to be effective unless it includes a full and appropriate role for telecommunications, and accords a corresponding priority to the improvement and expansion of telecommunications."

"Given the vital role telecommunications play not only in such obvious fields as emergency, health and other social services, administration and commerce, but also in stimulating economic growth and enhancing the quality of life, creating effective networks world wide will bring immense benefits…The increased flow of trade and information will contribute to better international relationships…We look to governments of industrialised and developing countries alike to give fuller recognition to this common interest and to join their efforts to redress the present imbalance in the distribution of telecommunications which the entire international community should deplore."

Fifteen years before the concept of the digital divide was acknowledged, the Independent Commission for World Wide Telecommunications Development, chaired by Sir Donald Maitland, published these words. The report of the Maitland Commission, known by the title 'The Missing Link', is a core document in the founding literature of modern telecommunications development activity. The following basic recommendations of the Maitland Commission are worth repeating in the present context:

• Governments, development agencies and financing institutions are to give a higher priority to investment in the telecommunication sector.
• Developing countries should review their development plans to ensure that sufficient priority is given to investments in telecommunication.
• Existing networks (specifically rural ones) should be made more effective and commercially viable and should gradually become self-reliant.
• All projects or development activities with economic or social components should have a telecommunication element built in.

FG7 has paid particular attention to the recommendations of the Maitland Commission regarding technology development and selection:

• We recommend that manufacturers and operators be encouraged to develop systems which will enable the needs of the more remote areas of developing countries to be met at lower cost.
• Selection of product can be as important as choice of technology. Buyers must know what is available on the market. We recommend that the ITU, in conjunction with manufacturers of telecommunication equipment and components, consider compiling a comprehensive catalogue of telecommunication suppliers and systems currently in use.

As the world enters the 21st century, many of the conclusions and recommendations of the Missing Link report remain valid. Focus Group 7 cites these conclusions as important and useful guidelines for the information age, even as we conclude our own study and recommendations to promote the development of new telecommunication technologies for rural applications.

The Focus Group 7 also proposed the creation of a Task Force, consisting of a small group of volunteers among the ITU-D Study Group members to assist the BDT Director with the implementation of FG7 recommendations. The mandate of the Task Force may include:

• Monitor implementation progress of all FG7 recommendations
• Formulate suggested criteria for the establishment and location of pilot projects
• Contribute to cross-communication and coordination efforts among all parties.