rural telecom overview for asia-pacific

Rural telecommunications overview Rural telecommunications overview for Asia-Pacificfor Asia-Pacific

Pan-Asian Rural Communications SummitHongkong

24-26 October 1994

Michael MingesTelecommunications Development Bureau (BDT)

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Pan-Asian Rural Communications Summit

Regional rural population

27%

71%75%

71%1992

LatinAmerica

Sub-Saharan

Africa

EastAsia &Pacific

SouthAsia

Source: World Bank.

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Asia rural population

Source: ESCAP.

> 50% rural

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Rural population

Urban33%

Rural67%

Asia-Pacific population distribution1992 total: 3 billion

Source: ESCAP.

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Rural employment

Other45%

Agriculture55%

Asia-Pacific employment distribution1990 total: 961 million

Source: ESCAP.

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Rural economy

Agriculture23%

Other77%

Asia-Pacific GDP distribution1992 total: US$1'564 billion

Source: World Bank.

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Measurements of rural telecommunications

• Largest city telephones• Rural telephones• Localities with telephone service

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Telephone distribution

Population Main lines

71%

17%

29%

83%

Rural

Urban

Source: ITU.

Developing Asia-Pacific, 1992

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Largest city telephones

Largest city Rest ofcountry

Overall

8.57

0.74 1.07

Teledensity

Source: ITU.

Developing Asia-Pacific, 1992

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Localities with telephones

% withCountry Type telephonesIndia (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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Why poor rural communications?

• Other priorities• No money• Not profitable

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Rural revenues

Public Call Office $116Institution $135Business $69Residence $17

DON’T FORGET THE INCOMING!

PakistanAverage Outgoing Monthly Revenues

Source: Canadian International Development Agency (CIDA)

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Rural telephone usage

m

0

200

400

600

800

1'000

1'20019

88

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

ProvincialTelephone AreaMetro TelephoneArea Projection

Thailand, national long distance calls

Source: TOT.

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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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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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Organizational policies

• Incumbent operators• Revenue sharing• Rural operators• Carrot & Stick

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Incumbent operators

• Telekom Malaysia• Decentralized• 6 regional operations

Malaysia

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Revenue sharing

• Thai Telephone & Telecommunications Co., Ltd.

• 25 year concession to install one million lines in provinces

• Contract signed 2-7-92

Thailand

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Rural operators

• Bangladesh Rural Telecommunications Authority

• 50% private• Licensed to operate in 199 thanas

(out of 402) for 25 years

Bangladesh

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Carrot & stick

• 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

Philippines

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Universal Service

• Provision of a basic level of telephone service to all, at affordable rates

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Telecommunications Development Bureau (BDT)

• Integrated rural development programme

• Study Group: Communications for rural and remote areas

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Rural multimedia heaven

rural telecom overview for asia-pacific

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