ICT Empowerment Network
As announced by Professor Muhammad Yunus, Managing Director of Grameen
Bank, in his special address to participants in the ITU Telecom World 06
Opening Ceremony on 3 December 2006, the International Telecommunication
Union (ITU) and Grameen, as part of their collaboration through the
Connect the World initiative, are jointly launching a virtual, global
‘ICT Empowerment Network.’
Building on the vision outlined by Professor Yunus when he received the
ITU World Information Society Award on 17 May 2006, this network of partners
will be devoted to a collective global effort to combine the power of ICTs
with micro-credit financing to help the poor to earn sustainable incomes. To
help make this initiative a success, Grameen will reach out to more than
3000 microfinance organizations and 100 million borrowers worldwide, while
ITU will lever the support and participation of its 191 member states and
some 650 private sector members from around the world.
The ICT Empowerment Network will consist of numerous independent,
self-financed groups of partners that collaborate either in physical centres
or virtually. Each group will focus on at least one of three work streams:
1) ICT solutions, 2) sustainable business models, and 3) capacity-building.
1. ICT Solutions
This work stream will include the development and implementation of ICT
Solutions, such as devices and low cost connectivity and access solutions.
Activities within the ICT Solutions work stream will serve as a vital link
between ICT designers and the more than one billion people currently without
access to information and communication technologies. Collaboration between
participating private sector R&D teams and NGOs, community leaders and
potential users will support an improved understanding of the needs of those
in currently un-served markets. This will in turn yield practical, locally
relevant and sustainable new solutions that meet those needs and make a
difference.
There is already one centre in the network being planned by a consortium
called "Enclusion" led by a Connect the World partner, Aptivate, and
two private sector companies, Sagentia and Plextek (Cambridge, UK), which
specialize in mobile device design and low-band radio connectivity,
respectively. This centre will focus on low cost rural ICT access solutions.
Enclusion’s main project is to expand the reach of existing GSM networks
into some of the poorest, most remote, rural areas using very low cost VHF
radio. This extension will support ‘low-band’ data services such as SMS and
email (for micro-credit supported applications for local farmers and small
businesses etc), and short-range voice capability to unserved and
hard-to-reach villages.
Enclusion will allow local users to access micro-finance programmes and
to send or
receive money to friends, relatives or
for small business purposes. It will support existing
social and family networks and
provide information about agriculture, health, education and
business. The service will be
operated by local telecoms operators to fit
into their existing billing
system. This will speed roll-out worldwide, ensure interoperability and
allow companies to explore demand
in new markets without great expense or risk.
2. Sustainable Business Models
Activities which come under the Sustainable Business Models work stream
will build on the experience of Grameen and its partners in assessing the
business plans of prospective entrepreneurs and providing them micro-credit
financing.
ITU, Grameen and other partners, starting with Cisco Systems, will first
team up to provide eligible graduates of
ITU’s Internet Training
Centres with business plan mentoring and micro-credit start-up capital
to launch their own ICT-related businesses such as computer repair shops,
internet or mobile phone service providers, community telecentres etc. ITU
will also encourage other ICT training programmes to join the ICT
Empowerment Network to expand the pool of potential graduates available to
receive this support.
In some locations, employment of new graduates of ICT related technical
courses by existing ICT related firms is a limited option given that a
critical mass for the local ICT sector has not yet developed. Therefore,
while technical skills are inarguably required for the development of local
ICT capacity-building, so too are the business skills required to set-up,
lead and sustain successful local ICT businesses. This mentoring and
training will not only broaden the skill set of new graduates, it will also
help stimulate new entrepreneurial activities, leading to a more dynamic
local job market for all others wishing to enter the ICT field, as well as
create positive local spin-offs. The promotion of ICT based small businesses
in developing countries will benefit both the individual as well as the
broader community.
A second early initiative to be launched within the ICT Empowerment
Network will focus on extending the reach of the successful Village Phone
concept. Through QUALCOMM's Wireless Reach™ initiative, QUALCOMM and Grameen
Technology Center will work together in 2007 to test the extension of the
successful Village Phone model in Indonesia, with the aim of eventual
broader roll out there. Such a Village Phone program in Indonesia would
develop thousands of micro-entrepreneur owned and operated
telecommunications businesses serving rural communities and villages with
access to CDMA-based wireless voice telephony and data-enabled services.
The core concept is simple, effective and sustainable: a local
small businessperson purchases a cellular phone and service plan with a
micro-loan and then retails the "minutes" to her friends and neighbours.
The programme builds on a model that has proved successful in Bangladesh,
Uganda and, most recently, Rwanda. Village Phone generates wide-scale
benefits. The microfinance customer or borrower benefits from
operating a thriving business and community members benefit from access to
communication services. The microfinance institution(s) benefit(s)
from establishing a new product and revenue stream. Most broadly, the
introduction of Village Phone can spur transformative development by
empowering people to participate more fully in the economy and the political
process. Village Phone in Uganda has established over 5000 ICT
businesses for the poorest community members. Each Village Phone
business serves a community with people often traveling many kilometers to
use the voice and data services of their local Village Phone Operator.
3. Capacity-Building
The Capacity-Building work stream will aim to lever Grameen’s
micro-credit financing and expertise to expand the availability of loans for
students in ICT-related studies. To start, Grameen will provide micro-credit
financed loans for eligible students at ITU Internet Training Centres,
starting with those jointly run with Cisco Systems, as well as some eligible
applicants to the
ITU’s
Youth Education Scheme (YES), which currently provides scholarships to
high potential students in ICT-related fields. Over time, ITU and Grameen
will encourage additional ICT training programmes to join the network and
expand the availability of micro-credit loans for additional students.
The audience served by the ITU Internet Training Centres varies depending
on the location, curricula and specific partner initiative. However, all of
these centres run on a cost recovery basis with an emphasis on providing
affordable training to students of participating institutions and the
general public.
Though the fees of ITU Internet Training Centres are typically lower than
those of commercial training institutes, they still cost several hundred
dollars (USD), putting the courses beyond the reach of some potential
students. Expanding the reach of this training and the future employment
opportunities that will result to these potential students is the core
objective of this new micro-credit loan initiative.
Background
On 17 May, during his acceptance speech upon receiving the inaugural
World Information Society Award, Nobel Peace Prize laureate Professor
Muhammad Yunus of Grameen Bank called on global ICT companies to work with
NGOs and social business enterprises to develop technology solutions and
business models where ICTs can be used as an income generating tool by the
poor. He suggested that a virtual network be established to support this
work.
In describing his vision, Professor Yunus said that he would like "ICT
designers to be given the challenge and opportunities to show their talent
in designing equipment and gadgets which will solve the problems of the
poor." To inspire their work, he added "these designers will have pictures
of poor women in Bangladesh, Somalia or Bolivia on their desks to remind
themselves who they are working for."
Professor Yunus believes that major progress in bridging the digital
divide will be possible when designers in global ICT companies have this new
end user in mind, and are stimulated to ask themselves each day "what are
her daily problems?" and "how can my device/appliance help her find
solutions to these problems?"
Since May, ITU has been in discussions with Professor Yunus on potential
collaboration to help realize this vision. Given the expertise of ITU and
its partners in ICT training, the concept has evolved to include capacity
building, in addition to the original emphasis on the development of
technical ICT solutions and business models.
Guiding Principles
The ICT Empowerment Network will adhere to the following guiding
principles:
-
Develop local capacity-building (i.e.
local assembly, support and maintenance of equipment) and involvement at
all stages;
-
Focus on locally relevant solutions
that offer transferability and scalability across regions and
applications;
-
Ensure that technical solutions and business
models integrate environmentally sustainable practices, including
recycling and safe operation and disposal of equipment;
-
Encourage multi-stakeholder participation.
Each group of partners should include representation from at least two
of the following stakeholder categories: government, business,
international organizations and civil society; and
-
Share results within the network and
with the broader public to stimulate follow-on developments and
adaptations to suit additional regions/user groups.
Coordination
This network will be a key activity of the Connect the World (CtW)
initiative. The CtW secretariat will therefore provide overall coordination
and communication support for the decentralized ICT Empowerment Network,
with assistance from ITU Regional Offices and a designated Grameen company.
ITU will also work with Grameen to track progress and mobilize new partners
and resources. A website will be built and supported by ITU to provide a
main centralized source of information and interaction for the virtual
network. This will be linked to the websites of ITU-CtW and a designated
Grameen company.
Financial Support
Financial and in-kind contributions will be solicited to support network
coordination, partner outreach and communications activities as well as
website development and maintenance.
