ACHIEVING UNIVERSAL ACCESS
ITU ISSUES A 'HOW-TO' GUIDE ON ACHIEVING UNIVERSAL ACCESS

Universal access, a long-standing goal of the international community, may finally become a reality in the 21st century. Defined as a publicly available telephone, accessible to every individual in every community, universal access is increasingly possible through a combination of technology advances and sector reform.

With the widespread use of mobile phones, many people in developing countries are now within reach of a telephone. Developing countries have witnessed remarkable advances in the more widespread use of mobile phones where growth is now far outstripping that of fixed lines: between 1993 and 2002, mobile users in developing nations soared from 3 million to over 500 million. The number of mobile subscribers now exceeds fixed-lines in developing nations.

The rapid and widespread penetration of mobile telephones in developing countries is due in part to the relatively inexpensive infrastructure to install and operate, when compared with that of a fixed line. However, with effective regulatory policies in place, national governments have been able to greatly accelerate the growth of mobile telephone usage. In Nigeria, for example, the total density of telephone usage increased from 0.46 in 2000 to 1.94 in 2002 following the licensing of three mobile operators in 2001. The use of an effective policy - in this case additional licensing - allowed Nigeria to increase its teledensity by a factor of four.

But governments must consider the needs of the local population when determining which policies to adopt to promote progress towards universal access. Government regulators must balance the requirements of their constituency with the need for a valid business proposal for operators. As economies increasingly liberalize, the role of regulators does not diminish but rather increases as regulators must ensure the proper functioning of the market. For example, as the number of disputes increases, regulators must define dispute resolution mechanisms. And, as consumers drive the demand for services, they increasingly require consumer protection policies. To demonstrate the growth of sector reform, the number of countries with regulatory agencies has dramatically increased from 13 in 1993 to 123 by mid-2003.

ITU issues Trends 2003

To help country regulators determine their regulatory practices, ITU published on 11 October 2003 the latest edition of its annual Trends in Telecommunication Reform: Promoting Universal Access to Information Communication Technologies, Practical Tools for Regulators. This year's edition enables regulators to learn more about how policies, regulations and practices can encourage investment in ICT infrastructure and access to ICT services. Using effective regulatory policies, countries can take advantage of the current environment of widespread market reform and technological tools available to meet their national ICT development goals. Trends 2003 examines how regulatory reform can be used to promote universal access by fostering competition among service providers so that a wide range of ICTs are offered at the lowest possible prices.

The below case studies briefly outline how certain countries have attempted to achieve universal access based on their local market conditions. Further information on these case studies can be found in Trends 2003.

Competition in Nigeria

Telecommunication in Nigeria took off following the licensing of GSM operators by the Nigerian government to Econet, GlobalCom, MTN and Nitel. In just 18 months, the teledensity of Nigeria more than doubled¹ with the introduction of GSM. The increased teledensity in Nigeria has led to job creations with the advent of the GSM "umbrella people" who, in many towns across Nigeria, resell GSM wireless services, most notably by selling phone calls. With an umbrella to mark their stand, a Subscriber's Identification Module (SIM) card and handset, they are ready for business. GSM resale has become a viable employment opportunity for hundreds of young Nigerians. It has even become quite lucrative. In an economy where the average monthly Gross National Income per capita stands at 24.17 USD, umbrella people can net up to 15.40 USD per day.

GSM has contributed to increased access in Nigeria while also providing employment opportunities to low-income Nigerians.

Innovative Pricing Strategy in Venezuela

The start-up and monthly costs of having a fixed line in Venezuela amount to 102 USD and 11.60 USD respectively. However, pre-paid mobile start-up and monthly costs are much lower - 54 USD and 6.15 USD respectively, and are of great interest to low-income users. Pre-paid cards, which provide phone time ranging from 5 minutes to 1 hour, provide flexibility over a period of weeks and the ability to control spending.

The worldwide potential market for pre-paid cards is huge. In 1998, three years after the first prepaid mobile phone scheme was launched, 40 million people had opted for it - about 13 per cent of the world's mobile users².

Venezuela has the highest mobile telephony penetration rates than any other country in Latin America and was the first country in Latin America to surpass one million mobile phone users³. The investment rate in telecommunications grew from 490 million USD in 1995 to 1.03 billion USD in 1999⁴. The growth of Venezuela's telecommunication sector can be attributed to the establishment of a clearly defined regulatory framework.

Micro-credits in Bangladesh

Through the Phone Village Programme set up by the Bangladeshi phone carrier Grameen Telecom, women can purchase a handset and operate mobile phones as public phones in rural areas. Grameen Telecom, a non-profit company, provides micro-finance loans through its parent company Grameen Bank. With an initial loan of approximately 500 USD to cover their initial expenses, beneficiaries can sell communications services to the people in the local community, serving as the community payphone operator. Telecommunication services provided included both incoming as well as outgoing calls. On an average, each telephone covers approximately 2500 people.

The programme selects applicants that are literate, with a sound credit history, and a viable business opportunity near the village centre. These factors have helped ensure the programme's success with an excellent repayment record of 98%. In a pilot programme involving 150 villages, each of the village operators earned an average of 2 USD per day or approximately 700 USD per year. This annual income, enough to cover costs, is more than twice the country's annual per capita income.

Since the programme began in March 1997, it has provided telecommunication services to nearly 2.8 million villagers, previously beyond the reach of the main phone network⁵.

Government funds in Columbia

While urban areas in Columbia benefit from robust communication services, rural areas have not been as fortunate. Therefore, in 1999, the Columbian Ministry of Communications allocated 100 million USD to broaden the scope of telecommunication services in rural areas. Aiming to achieve universal access,the Compartel Programme uses mobile technology to provide public pay phones and Internet access in community centers around the country.

As a result of the Compartel Programme, 3 million Columbians benefit from telecommunication services in their town. The Programme has established:

• 6 745 telecommunication service points with 1-2 public telephones and at least 1 fax
• 670 community access centers with 2 computers/printers and 1 public telephone
• 270 community access centers with a minimum of 6 computers/printers and 2 public telephones

Compartel is the largest social communication programme in Latin America and demonstrates the beneficial role of government in bringing about universal access.

Creative technologies in India: corDECT

In an effort to provide cost-effective voice and data communications services, the TeNeT Group at the Indian Institute of Technology in Madras, with Midas Communication Technologies and Analog Devices, has developed corDECT. CorDECT provides simultaneous voice telephone and Internet services through a wireless local loop system.

The corDECT system is based on the Digital Enhanced Cordless Telecommunications (DECT) standard and supports toll quality voice, voice band fax/data, as well as Internet connectivity. As one of its key elements, corDECT aims to keep costs low. The system reduces operational costs by de-multiplexing the voice and data at the system's interface unit. In this way, data can be routed directly to an Internet service provider without incurring phone charges.

While the research and development of corDECT has taken place primarily in India, the system has prompted global interest and has been deployed in Africa and Latin America. By developing a cost effective solution adapted to local needs, corDECT helps countries obtain universal access.

New technologies in Bhutan

Using WiFi (Wireless Fidelity) technologies, Bhutan Telecom connected two remote, rural areas in the West and South of the country with voice services in July 2002. A small landlocked country in the heart of the Himalayan mountain range, Bhutan has a low teledensity of 3.4 percent.

Bhutan Telecom deployed a wireless Internet Protocol voice system to connect eight villages in Gelephu with six villages in Limukha. In deploying the networks, Bhutan Telecom selected WiFi technologies as it can support broadband data as well as voice. In addition, WiFi is relatively inexpensive as well as rapid and easy to install.

The solution provides voice services to a total of 80 customers with the anticipation of eventually bringing Internet access to local schools. Apart from initial service disruptions in Gelephu due to excessive storms, the project appears successful. It demonstrates how wireless technology can be used effectively to connect rural areas.

ITU — providing regulatory services to its Member States

ITU is an authoritative voice on - and plays a leadership role in - issues associated with policy, regulation and network readiness. ITU identifies and analyzes world trends in telecommunication reform and helps member states in reforming their telecommunication policies and regulations.

ITU publishes an annual survey of the telecommunication regulatory community, organizes workshops and seminars, produces publications and products related to telecom regulation and continually monitors the industry. Further information on ITU regulatory activities is available at: http://www.itu.int/ITU-D/treg/

The ITU leadership role in this area has become more critical than ever against a rapidly changing industry backdrop characterized by changes in operator ownership and the opening of previously protected domestic markets. Governments look to counsel and support from ITU as they move to reform their telecommunications legislation or create new regulatory agencies.

For more information please contact:

About ITU

ITU is a world-wide organization which brings governments and industry together to coordinate the establishment and operation of global telecommunication networks and services; it is responsible for standardization, coordination and development of international telecommunications including radiocommunications, as well as the harmonization of national policies.

To fulfil its mission, ITU adopts international regulations and treaties governing all terrestrial and space uses of the frequency spectrum as well as the use of all satellite orbits which serve as a framework for national legislations; it develops standards to foster the interconnection of telecommunication systems on a worldwide scale regardless of the type of technology used; it also fosters the development of telecommunications in developing countries.

ITU also organizes worldwide and regional exhibitions and forums bringing together the most influential representatives of government and the telecommunications industry to exchange ideas, knowledge and technology for the benefit of the global community, and in particular the developing world.