SustainingRural Broadband

Anjan Ghosh

Regional Director - Corporate Affairs

July, 4th , 2011

Intel Confidential22

Studies show broadband drives economic growth• “In low- and middle-income countries, every 10 percentage point increase in

broadband penetration corresponds to an increase in economic growth of 1.38 percentage points – more than in high-income countries and more than for other telecommunications services”. World Bank report. 2010

• “Because broadband networks have the potential to contribute so much to economic development, they should be widely available at affordable prices and should become an integral part of national development strategies”. World Band, 2009.

• “Broadband can help generate jobs, growth, productivity and long-term economic competitiveness.” Dr. Toure, Secretary-General ITU

• “We call for the objective of reaching half of the global population connected to broadband internet by 2015”. Broadband Council declaration endorsed by Secretary-General UNO. NY. Sep 2010

Building Broadband: Strategies and Policies for the Developing World, World Bank, at 2 (Jan. 2010), available athttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1208273252769/Building_broadband.pdf

Key factors driving adoption

BB

Plans/Tax/S

ubsidies

policies policies

INTEL CONFIDENTIAL

Affordability

Digital Literacy

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Intel World Ahead

Price of broadband impacts ICT adoption

Ba n g la d e s h Ky rg y z s ta n L e s o th o Nic a ra g ua Na m ib ia Bo ts wa n a Alb a n ia Gre n a d a An tig u a Om a n Be la ru s Bo liv ia Ge o rg ia Az e rb a i ja n T h a ila n d Ira n Me x ic o Bra z i l Cro a tia Ku wa it Be lg iu m Ita ly F in la n d No rwa y Ge rm a n y Swe d e n

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

BB Price as % of Income

PC Penetration Rate

BB 66%

Most of EMs

34 countries needs > one salary

Mature Markets

3% income threshold

“The main barrier to get access to ICT is the cost of Broadband”. While the cost of Broadband in developed countries is less than 3% of GNI per capita, the average

cost in developing economies is 10%+ There are 34 countries where the cost is higher than the monthly income

Source: ITU Measuring of ICT development. Feb 2010

BB VAT13%

BB Price53%

Entry PC Price26%

PC Interest4%

PC VAT4%

BRIC-TIM Avg Total PC+BB solution Cost

BB 66%

PC 34%

Intel World Ahead

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Population that can afford BB

BB

as

a %

of

Inco

me

If BB costs 3% or more of income, then, 80% of BRIC+TIM population cannot afford it.

Sources: Euro monitor, CIA Fact book, ITU, Intel

BB as a % of GNI PPP per

capita Population % of

Population

< 3% 732 M 22.4%

>3% - <6% 860 M 26.3%

>6% - <10% 533 M 16.3%

>10% - <40% 1,145 M 35.0%

3,270 M

CM

INTEL CONFIDENTIAL

Affordability

Digital Literacy

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Intel Confidential88

• What is it? Community based ICT ed. Program, designed in collaboration with government agencies and non-governmental organizations (NGOs) delivered through community technology centers or school labs.

.• Target audience

Youth (ages 8-25 years) from underserved communities with little or no computer skills

• Learning objectivesDevelopment of 21st Century Learning Skills:

– Technology literacy– Problem solving and other forms of critical thinking– Collaboration and teamwork

• 10 countries, 1 million learners

Intel® Learn

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Empowering girls

24 year old Shahana, belonging to an orthodox family in a remote village

in the state of Kerala in India.

The program not only empowered her as an

individual, entrepreneur but also made her a role model for many in her

community.

She also says that the program has made her a better mother; she wants

her own children to imbibe the skills she has learnt.

“At the age of 24, I learnt to talk to others. I learnt to express my views in a confident manner. It was like I was

reborn”

Winner of the Confederation of Indian Industries (CII) woman exemplar award

in 2008

Intel Easy StepsA basic technology literacy program, for adult learners with little or no experience with computers.

Basics of computers, enabling usage to see relevance to daily lives.

• Internet Search• Email• Word Processing • Spreadsheets• Multimedia

Empowers learners to communicate with friends, family and business associates though email, research and access information on the Internet, create resumes, flyers, invitations, budgets, business documents, presentations, and more.

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Intel Easy Steps: Partners and Target AudiencePartner Organizations: • Government agencies, community organizations, and local

service providers with existing delivery channels

• Beneficiaries/End Users:• Those who need or desire ICT skills for workforce skills and/or

economic self-sufficiency. Eg: • Rural women• Rural entrepreneurs• Unemployed/Underemployed• Special populations on margins of society• Government field staff • Others requiring digital literacy for their occupation or civic

engagement

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Intel® Easy Steps – Some Key PartnershipsNehru Yuva Kendra Sangathan (NYKS) - India (Ministry of Youth Affairs & Sports Government of India)

• Empowering 50K Youth Leaders in 200 districts of India on basic IT skills

Digital Empowerment Foundation (DEF) - India• DP envisages to create 250K Panchayat websites

• Make 500K individuals, Panchayat Functionaries ICT literate

PRATHAM - India• Train more than 80K youths on basic IT skills across 10-15 states of India

TESDA- Philippines.• Provide digital literacy to 150K graduates across 126 TESDA centers across Philippines.

CICT: Commission of ICT Philippines• Reach out to 1000 plus CECs for providing access to public services to benefit from ICT in

daily life.

MSD – Malaysia• Reach out to adult populace through over 100 CBC’s

Telecenter.org Foundation:

Empower women on basic digital literacy, across 40 countries