UNITED NATIONS GENERAL

ECONOMIC E/ESCAP/CICT/1
AND 25 August 2008

SOCIAL COUNCIL ORIGINAL: ENGLISH

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

Committee on Information and Communications Technology

First session
19-21 November 2008
Bangkok

WORLD SUMMIT ON THE INFORMATION SOCIETY FIVE YEARS ON:

INFORMATION AND COMMUNICATIONS TECHNOLOGY
FOR INCLUSIVE DEVELOPMENT

(Item 4 of the provisional agenda)

Note by the secretariat

SUMMARY

The Asia-Pacific region has been facing challenges in fostering an inclusive- and development-oriented
information society, as envisioned in the outcome documents of the World Summit on the Information Society.
Some of the key challenges highlighted in the present document are: (a) regional trends in the development
of information and communications technology (ICT), including space-based technology and (b) key issues
earmarked for the consideration of the Committee in accordance with Commission resolution 64/1 of 30 April
2008.
In particular, a review of regional efforts towards the information society has been made, with specific
emphasis on issues related to ICT access and connectivity in under-serviced rural areas and Pacific island
countries, by summarizing successful initiatives on community e-centres to reach the under-served and the
ESCAP findings on Pacific connectivity. The secretariat identifies key priorities in promoting the expansion of
ICT access for inclusive development in the region, including strategic partnerships within the United Nations
system and with the private sector.
The Committee may wish to provide guidance on the secretariat’s future strategic direction in the area of
ICT for socio-economic development in the Asia-Pacific region, including possible outputs that could be
reflected in the programme of work for the biennium 2010-2011.

DMR A2008-000232 TP 190908 DP 190908 DI 220908 CICT_1E

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CONTENTS
Page

Introduction ...................................................................................................................................... 1

I. ICT ACCESS IN ASIA AND THE PACIFIC......................................................................... 2

II. WORLD SUMMIT ON THE INFORMATION SOCIETY: FIVE YEARS

AFTER THE GENEVA PHASE ............................................................................................. 7

III. EXPANDING ICT ACCESS IN ASIA AND THE PACIFIC................................................. 10

A. Community e-centres........................................................................................................ 13
B. Pacific connectivity .......................................................................................................... 14

IV. ISSUES FOR CONSIDERATION .......................................................................................... 17

List of figures

1. Fixed telephone lines per 100 population for major world regions, index of change,
1995-2007 ................................................................................................................................ 3
2. Mobile phone subscribers in selected Asian and Pacific country/area groupings,
2000-2007 ................................................................................................................................ 4
3. Internet users per 100 population in Asia and the Pacific, 2001 and 2007 .............................. 5
4. Number of broadband users in selected country/area groupings, 2004 and 2007.................... 6

List of boxes

1. Geneva Plan of Action of the World Summit on the Information Society: objectives,
goals and targets....................................................................................................................... 8
2. Malaysia’s Universal Service Provision Fund ......................................................................... 9
3. e-Sri Lanka............................................................................................................................... 11
4. Case study of a community e-centre in Panauti, Nepal ........................................................... 13
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Introduction

1. From 1998 to 2008, information and communications technology (ICT) 1 has significantly
transformed the Asia-Pacific region. The potential of ICT for economic growth and reducing poverty
in the region has increased considerably. In a short span of time, the Internet has become an integral
part of the Asian economy, while mobile communication has become the primary mode of
communication in the region.

2. This expansion of ICT into various spheres has been driven partly by the fact that Asia and
the Pacific have developed remarkable ICT resources. Some countries are recognized as world leaders
in terms of technological resources, be they research and development capabilities, innovation and
production or commercialization of ICT products and services. Also, some States have been very
successful in attracting business process outsourcing and foreign direct investment and are homes to
vibrant and dynamic ICT industries.

3. According to the ESCAP Economic and Social Survey of Asia and the Pacific 2008, 2 in 2007
the region enjoyed the fastest economic growth in a decade, and growth is expected to continue at a
lower, but still robust, rate in coming years. In addition, several Asia-Pacific countries have
accumulated large foreign reserves.3

4. However, disparities between more advanced economies and least developed countries,
landlocked developing countries and small island developing States, in terms of ICT penetration, are
not being reduced in the way envisaged by proponents of an inclusive and development-oriented
information society. This phenomenon—the so-called digital divide—exists not only between
developed and developing countries, but also within countries, where certain groups, such as women,
the poor and people who live in rural areas or with disabilities, among others, may be marginalized.
The worldwide recognition of this inequitable situation, along with the need to better understand the
widespread effects of ICT on society, led to the World Summit on the Information Society, held in
Geneva in 2003 and Tunis in 2005.

5. The Summit crafted a vision of a future information society and identified a series of
activities and commitments4 necessary to assess the impacts of ICT and to reduce the divide. To that
end, at the regional level, the ESCAP secretariat has been assisting member States in their
implementation of the outcomes of the Summit, through the Regional Action Plan towards the
Information Society in Asia and the Pacific (ST/ESCAP/2415), by initiating various activities to

1
The term “information and communications technology”, as used in the present document, should be understood to
include space-based technology, as appropriate.
2
United Nations publication, Sales No. E.08.II.F.7.
3
According to the ESCAP Economic and Social Survey of Asia and the Pacific 2008, developing economies in the
Asia-Pacific region had accumulated $3.4 trillion in foreign reserves by October 2007, up from $2.7 trillion at the end of
2006.
4
The Declaration of Principles and the Geneva Plan of Action (A/C.2/59/3, annex) and the Tunis Plan of Action (see
A/60/687).
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promote and build ICT capacities, to facilitate policy debate and to create an enabling policy
environment for ICT for development. Five years has passed since the first phase of the Summit
began. Considering that many development projects have a two- or three-year lifespan, 2008 is an
appropriate time to assess the progress and gauge the impact of initiatives at the regional level and to
learn the lessons necessary to guide future activities, especially as 2008 marks the halfway point to the
2015 target date of the Millennium Development Goals.

6. The secretariat is mindful that a series of review initiatives have recently been undertaken by
various international and regional organizations to mark the fifth anniversary of the Geneva phase,
take stock of relevant activities and measure the progress made. To supplement these analyses, the
present document describes achievements in terms of ICT for development the ICT indicators of the
Millennium Development Goals, which are at the heart of the goals and targets of the Summit. The
document presents findings being compiled by the secretariat for the forthcoming ESCAP Statistical
Yearbook for Asia and the Pacific 2008, which tracks progress towards the Goals, including
achievements associated with the ICT indicators. The document then identifies gaps and proposes
responses to reduce the disparities in ICT access, for consideration by member States.

I. ICT ACCESS IN ASIA AND THE PACIFIC

7. Mention of firm names, commercial products and specific technologies does not imply the
endorsement of the United Nations.

8. Since the Geneva phase of the World Summit on the Information Society was held in 2003,
the ICT landscape of the Asia-Pacific region has undergone significant change. The region, which is
home to two thirds of the world’s population, now hosts over half of the Internet and mobile
connectivity in the world. Should current trends continue, the region could account for two thirds of
global mobile phone users within a decade.

9. This remarkable achievement has been driven by national ICT policies, many formulated or
enhanced in response to the World Summit on the Information Society. Following the Regional
Action Plan, many Asian countries renewed strategic ICT policies to establish enabling regulatory
environments, which facilitated progress in liberalization, privatization and competitive practices in
ICT.

10. Countries in the region have combined a series of ICT policy instruments for developing the
information society. Telecommunications, mobile and Internet policies address key elements such as
universal service, interconnection, the unbundling of local loops, licensing, numbering schemes,
portability, price cap regimes, roaming conditions, significant market power, spectrum allocation, and
Internet service providers, as well as cyberspace regulations, such as spam controls, information
security and digital rights management.
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11. ICT policy has also been influenced by multilateral regulatory frameworks, including the
World Trade Organization Agreement on Basic Telecommunications, Information Technology
Agreement and Financial Services Agreement. In addition, some countries in the region formed
subregional initiatives for e-strategy and ICT policy driven by the Association of Southeast Asian
Nations, the Pacific Islands Forum Secretariat, the South Asian Association for Regional Cooperation
and the Shanghai Cooperation Organization, among others.

12. As a result, ICT policy in the region as a whole has led to significant expansion of
connectivity. Within that context, three main aspects of connectivity can be highlighted. First, mobile
phone subscriptions have surpassed those of fixed-line systems, as shown by the proportion of mobile
phone lines, which now accounts for 80 per cent of total phone lines, up from 30 per cent in 2003.
Second, fixed-line connectivity has shown sluggish expansion, from 13 lines per 100 people in 2003
to 17 per 100 people in 2007. Third, broadband networking is set to become an important platform;
while the average penetration rate in the ESCAP region is still low, at 5 per cent in 2007, such
networking is growing rapidly in some countries of the region.

13. The Asia-Pacific region has experienced phenomenal ICT development compared with other
regions. At the same time, the number of fixed telephone lines showed a decline for the first time
among ESCAP member States (figure 1). This reflects the rapid growth in mobile subscriptions
(figure 2).

Figure 1. Fixed telephone lines per 100 population for major world regions, index of change,
1995-2007

Source: ESCAP calculations based on International Telecommunication Union data.

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Figure 2. Mobile phone subscribers in selected Asian and Pacific country/area groupings,
2000-2007

Source: ESCAP calculations based on International Telecommunication Union data.

14. From an economic policy perspective, this aspect can be explained as follows. First, due to
lack of investment, the traditional fixed-line infrastructure has not significantly expanded in lower-
income countries. Rather, gaps have been filled through significant investment in mobile networks in
urban areas. Second, in middle-income countries, investment in mobile systems has outpaced
investment in fixed-line systems. Finally, the traditional fixed-line network shrank somewhat in high-
income countries, with migration into mobile and broadband networks. In these countries, investments
are made in both mobile and broadband infrastructures.

15. Stark variations in Internet usage and growth continue to exist between more advanced and
less advanced countries. Overall, between 2001 and 2007 the region witnessed phenomenal growth in
the number of Internet subscribers. The number of countries with fewer than 10 Internet users per 100
population decreased from 43 in 2001 to 26 in 2007 (figure 3). However, the disparity between high-
income countries and the last 20 countries is wider than for fixed and mobile phones.

16. Numbers of Internet users have been observed to increase in connection with the expansion of
fixed-line systems. In low-income and middle-income countries, which have limited broadband
infrastructure, Internet connectivity is through the existing copper-based fixed lines and has a
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relatively greater component of shared accounts through Internet cafes and community e-centres. In
such cases, Internet use is almost constrained by the availability of fixed lines. In contrast, high-
income countries and economic centres within middle-income countries are beginning a migration to
fibre optics, which explains the diminishing use of traditional fixed lines, and are expanding
broadband connectivity, which currently reaches 25 per cent of all Internet subscribers.

Figure 3. Internet users per 100 population in Asia and the Pacific, 2001 and 2007

Source: ESCAP calculations based on International Telecommunication Union data.

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17. In economies such as China and India, new investment in fixed-line systems is increasingly
driven by broadband, especially by fibre-to-the-home or fibre-to-the premises. In market growth terms,
the opportunity cost of investing in next generation networks5 is deemed higher than that of existing
copper line-based technologies.

18. Disparities between high-income and low income countries are striking in regard to the
uptake of broadband technologies. Although high-income economies in the region are leaders in the
usage and diffusion of various technologies, the ESCAP region as a whole is still lagging (figure 4).

Figure 4. Number of broadband users in selected country/area groupings, 2004 and 2007

Source: ESCAP calculations based on International Telecommunication Union data.

5
A next generation network (NGN) is an Internet Protocol—based network that enables a wide range of services (such
as voice, and data) over a single network. This forces traditional telecom operators to migrate from a traditional telecom
model (users are billed for what they consume) to an Internet model (users are billed a flat rate) and to adopt a new business
model. Customers, particularly small and medium-sized enterprises, benefit the most, by getting a wider range of options for
communication at a cheaper rate. NGNs presents an opportunity for developing countries lacking current ICT infrastructure
to leapfrog directly to broadband and mobile NGN: almost paradoxically, a country with poor ICT infrastructure might be
able to benefit more and faster from an NGN, provided that good regulatory environments and financing measures are in
place.
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19. In order to make significant progress towards the Millennium Development Goals and the
goals of the World Summit on the Information Society, expanding connectivity and ICT access will
remain one of the main priorities in Asia and the Pacific. With such enhanced access, especially in
least developed countries, landlocked developing countries and small island developing States,
various ICT applications will be able to deliver the developmental gains envisaged in the outcome
documents of the Summit in a more systematic and sustainable manner.

II. WORLD SUMMIT ON THE INFORMATION SOCIETY: FIVE YEARS AFTER

THE GENEVA PHASE

20. At the World Summit on the Information Society, countries focused their deliberations on the
use of ICT for socio-economic development and achieving the Millennium Development Goals. In
defining objectives, goals and targets, the Geneva Plan of Action specified a number of priorities
related to connectivity and access, as indicated in box 1. In order to systematically take stock of
progress and achievements made towards the targets of the Summit, a series of initiatives were
undertaken recently by international agencies, such as the International Telecommunication Union
(ITU), the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the
United Nations Development Programme (UNDP), which have been leading the follow-up activities.6

21. The latest results of this stocktaking exercise, which began in 2004, are presented in an ITU
report entitled Report on the World Summit on the Information Society Stocktaking 2008. A database
managed by ITU collects information on various initiatives spearheaded and implemented by
Governments, international agencies and other players in the field of ICT for development, including
ICT human resource development. A cluster of events related to the Summit were held in Geneva in
May 2008.7

22. At the global level, the follow-up to the World Summit on the Information Society is
coordinated by the Economic and Social Council through the Commission on Science and
Technology for Development. A report of the Secretary-General on progress made in the
implementation of and follow-up to the outcomes of the World Summit on the Information Society at
the regional and international levels (A/63/72-E/2008/48) was submitted to the Commission at its
eleventh session, held in Geneva from 26 to 30 May 2008.8

23. As part of the stocktaking exercise, ITU collected information on the implementation
mechanisms established at the national level in 2007.9 Of the ESCAP member States, nine reported

6
For a list of ITU initiatives see www.itu.int/wsis/follow-up/index.html; for UNESCO initiatives see http://portal.
unesco.org/ci/en/ev.php-URL_ID=1543&URL_DO=DO_TOPIC&URL_SECTION=201.html.
7
International Telecommunication Union, Report on the World Summit on the Information Society Stocking 2008
(Geneva, 2008) (available online at www.itu.int/wsis/stocking/docs/2008/WSIS-Stocking2008-e.pdf). The database is
available at www.itu.int/wsis/stocking/scripts/search.asp. The list of related events is available at www.itu.int/wsis/
implementation.
8
See Official Records of the Economic and Social Council, 2008, Supplement No. 16 (E/2008/31).
9
National reporting on WSIS implementation, available at www.itu.int/wisd/2007.
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having established national implementation mechanisms. 10 Most of these countries concluded that
connectivity, ICT access and ICT human resource development remain their major priorities.

Box 1
Geneva Plan of Action of the World Summit on the Information Society: objectives, goals and
targets

Based on internationally agreed development goals, including those in the Millennium

Declaration, which are premised on international cooperation, indicative targets may serve as global
references for improving connectivity and access in the use of ICTs in promoting the objectives of the
Plan of Action, to be achieved by 2015. These targets may be taken into account in the establishment
of the national targets, considering the different national circumstances:

(a) to connect villages with ICTs and establish community access points;

(b) to connect universities, colleges, secondary schools and primary schools with ICTs;

(c) to connect scientific and research centres with ICTs;

(d) to connect public libraries, cultural centres, museums, post offices and archives with ICTs;

(e) to connect health centres and hospitals with ICTs;

(f) to connect all local and central government departments and establish websites and e-mail
addresses;

(g) to adapt all primary and secondary school curricula to meet the challenges of the information
society, taking into account national circumstances;

(h) to ensure that all of the world's population have access to television and radio services;

(i) to encourage the development of content and to put in place technical conditions in order to
facilitate the presence and use of all world languages on the Internet;

(j) to ensure that more than half the world’s inhabitants have access to ICTs within their reach.

Source: A/C.2/59/3, Annex, Section B, para. 6.

24. To achieve the goals and targets of the World Summit on the Information Society as well as
internationally agreed development goals, countries in the region have made various efforts, in areas
such as improving connectivity and expanding access to ICT. Some countries have established policy
instruments for universal service obligations, including the extension of services to rural and remote
areas through plans that rely only minimally, if at all, on subsidies, as well as the application of

10
The countries are: Azerbaijan, Bhutan, Indonesia, Japan, Mongolia, Philippines, Thailand, Turkey and Viet Nam.
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reduced customs duty on equipment imported by telecommunications service providers to offer

services to the rural areas, among others.11

25. Several countries have established special rural telecommunication development funds to help
underwrite their universal service obligations (see box 2). For instance, in India a 5 per cent universal
levy on adjusted gross revenue has been imposed on all telecommunications operators in order to
compensate less-viable rural-remote telecom operations and finance investment in such areas.

Box 2
Malaysia’s Universal Service Provision Fund

The Universal Service Provision Fund (USP Fund) was initiated to provide financing for the
establishment of telecommunication facilities in rural areas identified for USP; major industry players
responsible for USP have already received contributions. The fund aims to ensure an equitable distribution
and access to ICT infrastructure in rural and less developed areas. The rollout of the communication
services in designated areas is financed by the USP Fund, and all licensed service providers in Malaysia
must contribute.

According to the Universal Service Provision Annual Report 2006 of Malaysia,a a total of
approximately 800 million Malaysian ringgit ($ 245 million) was collected for the USP Fund in 2006. The
funds made available through the fund contributed to the expansion of connectivity and ICT access, by
facilitating Internet access to libraries and the establishment of USP Communication Centres in remote
and rural areas of the country.

Source: Collection of Cases of Financing ICT for Development in Asia and the Pacific (United Nations publication, Sales No.
E.05.II.F.18), available online at www.unescap.org/ publications/detail.asp?id=1050.
a
See www.skmm.gov.my/what_we_do/ysp/pdf/USP06.pdf.

26. Direct government ICT policies have promoted ICT use for socio-economic development in a
number of cases in the region. Several newer initiatives have been implemented within the context of
World Summit on the Information Society. The rapid expansion of mobile phones into rural and
remote areas in the region means that some communication needs among previously unconnected
people are being met. However, development gains arising from ICT have not materialized as fully as
expected, due to the limited telecommunications infrastructure and access to ICT among least
developed countries, landlocked developing countries and small island developing States. This
indicates that ICT for development applications, such as e-health, e-education and e-governments, for
poverty reduction and socio-economic benefit in remote and rural areas, especially in countries with
special needs, should be designed and implemented taking such challenges into consideration.

11
For more information on relevant financial mechanisms and policy instruments, see the ESCAP publication Best
Practices in Financial Mechanisms for ICT for Development in Asia and the Pacific available at www.unescap.org/
publications/detail.asp?id=1198.
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III. EXPANDING ICT ACCESS IN ASIA AND THE PACIFIC

27. The challenges and opportunities involved in expanding ICT infrastructure vary among
subregions. ASEAN countries have pursued the creation of a common marketplace of half a billion
people for ICT products and services. To enhance its competitiveness, the subregion pursues
integration of the ICT sector. This calls for a strong commitment from ASEAN member States to
narrow their internal digital divides. An integrated ASEAN ICT sector requires integrated policies
and regulations on the use of ICT, a subregional physical infrastructure that includes adequate Internet
connectivity, a pool of skilled ICT professionals and an integrated ICT labour market.

28. Similarly, SAARC countries have acknowledged that the changing technological scenario
requires new skills to compete in the world market. Home to 23 per cent of the world’s population,
but only about 6 per cent of its Internet users and 8 per cent of its mobile subscribers, the SAARC
subregion presents immense market growth opportunities. Bangladesh, India and Pakistan, for
example, are amongst the world’s top countries in terms of annual growth of mobile subscribers.
Players in SAARC countries have also established several good practices on community e-centres,
which provide shared ICT access as well as services that support the achievement of development
goals.

29. Countries in East and North-East Asia have experienced tremendous growth in their ICT
infrastructure. The subregion continues to dominate the top spots in all broadband density rankings.
Broadband subscriber growth continues to soar, thanks to competitive pressure and the push of
policymakers. It is estimated that the number of broadband Internet subscriptions worldwide had
reached about 280 million by the end of 2006; one third of these came from China, Japan and the
Republic of Korea. Policies and programmes must promote further innovation if the subregion is to
remain a leader in ICT development.

30. ICT infrastructure has developed rapidly in some Central Asian countries as well. The
numbers of mobile subscribers per 100 population in Azerbaijan and Kazakhstan have grown steadily
and are now higher than the ESCAP average. However, further improvements in ICT connectivity in
the subregion are needed to overcome unique challenges, such as the digital isolation of landlocked
countries, difficult terrain and dispersed populations. The development of a subregional ICT
infrastructure, with broadband networks that connect countries to each other and to the world, is a
unique opportunity for transnational cooperation.

31. Improving connectivity infrastructure, services and benefits is also a challenge for Pacific
island States. Of some 500 populated Pacific islands, about half lack telecommunications access;
several islands still rely on two-way radio for connectivity. There is an urgent need to connect Pacific
islands with affordable ICT. To achieve this objective, innovative institutional and financial
arrangements should be developed through closer cooperation among Pacific States and with other
stakeholders in this arena.
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32. The construction and improvement of national and subregional ICT infrastructures present
challenges that the market is unlikely to solve unaided. Governments may take leading roles as
coordinators, policy and regulatory reformers, adopters and demand stimulators, while also forming
partnerships with the private sector, civil society, and regional and international institutions (see box 3
for an example of a progressive and comprehensive ICT for development programme: e-Sri Lanka).

33. ICT policies and programmes should aim to stimulate sustainable and environmentally
friendly growth, make markets more efficient, improve social inclusion and facilitate political
involvement. They should consider telecommunication reforms, the expansion of the physical
infrastructure, the regulatory environment and legal framework, public-private partnerships and
universal service, and should encourage pilot projects with replication in mind. Countries should keep
ICT policies flexible enough to adapt to the changing technology environment and shifting global
markets and trade patterns. Such policies should also aim to reduce inequalities and take advantage of
digital opportunities afforded by globalization.

Box 3
e-Sri Lanka
Launched in 2003 with financial and technical support from the World Bank, e-Sri Lanka
uses ICT for economic development, poverty reduction and improvement of the quality of life
of the people.a The initiative comprises six main programmes (a) re-engineering government, (b)
information infrastructure, (c) ICT investment and private sector development, (d) e-Society, (e) ICT
human resources capacity development, and (f) ICT policy, leadership and institutional development.
It served as a model in designing other World Bank assisted programmes, such as e-Bharat (in India),
e-Brazil, e-Ghana, e-Pakistan and e-Rwanda.b

Coordinating the implementation of the programme is the Information and Communication

Technology Agency (ICTA) of Sri Lanka.c ICTA is the country’s executive ICT agency, created as a
wholly government-owed company under Section 6 of the Information and Communication
Technology Act, No. 27 of 2003.d With a flexible staffing policy and organizational structure, the
newly created company was able to draw talent from not only the public sector but also civil society,
the private sector, and academia, facilitating a broader response to the dynamic ICT environment and
the population’s growing need for ICT.

A key condition for successful ICT policy and programme implementation is political
commitment from top-level authorities.e The ICTA Board of Directors is responsible to the
Parliament; the chairman of the Agency reports directly to the secretary to the president. This direct,
high-level communication has helped raise the ICT profile within the government and in the eye of
various stakeholders, and has established the credibility of the new agency. It also facilitates the
coordination of efforts to reengineer the Government through various e-government projects.
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Another notable aspect of the e-Sri Lanka programme is its e-Society Fund, which helps support
local innovations and empower communities in order to establish viable ICT initiatives in rural areas.f
The fund provides small grants the most vulnerable groups through its Community Assistance
Programme and Partnership Assistance Programme. The programmes focus on building social capital
and ensuring that the needs and aspirations of the rural poor, women and displaced persons are taken
into account. To maximize the success of the Community Assistance Programme, calls for
applications are preceded by awareness-raising campaigns and community capacity development is
made available to applicants, as representatives of poor communities might not otherwise have the
capacity to apply, manage and monitor ICT initiatives. In order to ensure ownership, grants under that
programme requires a 25 per cent matching contribution from the community.

By the end of 2006, 18 months into the operation of the fund, 64 projects had been initiated under
the Community Assistance Programme (out of 190 applications) and eight under the Partnership
Assistance Programme (out of 247 applications). Demand for grants has been increasing, due to
media exposure of the programme and the engagement of non-governmental organizations as process
consultants. Most applications have focused on setting up telecentres.

Early in the implementation of the Fund, the theme of promoting indigenous knowledge attracted
unexpected attention from communities, which applied for assistance to document folklore, artifacts
and traditional medicines, with a view to attracting tourists. Other communities applied for assistance
to develop websites to promote their local produce and assist rural entrepreneurs in marketing. One
project aimed at networking 20 rural farming communities to coordinate the prices of local produce
and exchange information on pests and diseases. Under the Partnership Assistance Programme, two
projects were approved to assist people with disabilities. The other projects focused on combating
violence against women and addressing the special information needs of women suffering from abuse
in conflict areas. One project developed a trilingual radio disaster-warning system.

One successful project which is being scaled up and replicated in other parts of the country is
e-Village,g based on the experience of Mahavilachchiya, one of the poorest villages. The project was
started by a teacher who trained youth in ICT. These youth then created employment opportunities by
marketing the local products. Based on the evaluation, the ICTA decided to replicate the initiative in
300 villages throughout the country.
a
See www.icta.lk/Insidepages/e-srilanka/e-srilanka.asp.
b
Nagy K. Hanna, Transforming Government and Empowering Communities: The Sri Lankan Experience with
e-Development (World Bank, 2008).
c
See www.icta.lk/DefaultEnglish.asp.
d
Information and Communication Technology Agency, Milestones 2006: Annual Report.
e
National Information and Communication Infrastructure (NICI) e-Strategies: Best Practices and Lessons Learnt
(United Nations publication, Sales No. E.08.II.K.1). available at www.uneca.org/AISI/nici/Documents/NICI-Book.pdf.
f
See http://icta.lk/insidepages/programmes/e-Society_Development_initiative.asp.
g
See www.icta.lk/Insidepages/programmes/e-Village.asp.
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A. Community e-centres

34. One mechanism being implemented by member States to expand ICT access in remote and
rural areas is the establishment of community e-centres (CeCs), also known as community
information centres or telecentres. Despite high expectations, there have been debates on their
sustainability and the role that they play in accelerating socio-economic development in remote and
rural areas. Although mobile phones have been spreading rapidly in many previously unconnected
areas, another mechanism for sustainable and versatile data communication will be required in order
to fulfill the information needs of people and make significant progress towards the Millennium
Development Goals and other socio-economic development goals.

35. Despite reports of CeC successes in Asia and the Pacific, there are several challenges to
understand and overcome. One involves ensuring financial, technological and social sustainability,
especially in remote and rural areas. An integrated policy and programmatic approach would be
required to address the needs of a number of independent CeC initiatives in the region whose
resources and usage could be further enhanced. Box 4 presents a case study of a telecentre in Nepal.

36. Another challenge is scalability. According to ESCAP estimates, there are about 13,000 CeCs
in the Asia-Pacific region. To provide one CeC per 5,000 rural people in the region, it would be
necessary to establish more than 450,000 new centres. The public-private partnership that is being
implemented in India to establish 100,000 common services centres is an innovative initiative that
addresses the challenge of scalability. Countries can gain leverage from this and other experiences to
develop and strengthen their own rural ICT programmes.

37. CeCs have been one of the recurrent themes of international discourse within the wider
context of ICT for development. Despite efforts by various researchers and ICT-for-development
practitioners to document and analyse success and challenges, the actual effectiveness and efficiency
of grass-roots ICT projects are largely unknown. The role of CeCs could be further examined in the
context of expediting the process of expanding connectivity and ICT access in unconnected and
underserviced remote and rural areas at the regional level, drawing on the experience of member
States which promote a comprehensive and integrated policy and programmatic approach.

Box 4
Case study of a community e-centre in Panauti, Nepal

ESCAP selected a telecentre in Panauti, Nepal as one of the case studies in the publication
entitled Collection of Cases of Financing ICT for Development in Asia and the Pacific.a ESCAP has
been undertaking a follow-up study on the performance of the centre, and the summary of the
preliminary findings is described below.

The telecentre featured in this case study, formally known as a rural information centre, is an
organization operated by the local user communities. Located about 30 kilometres east of Kathmandu,
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it was established in June 2004 with support from the High-Level Commission on Information
Technology. In the above mentioned ESCAP publication, the secretariat of ESCAP highlighted the
innovative financial mechanisms proposed for the operation of such centres in the country, including
an information technology bond and a venture capital fund based on a public-private partnership
model.

The follow-up study was undertaken to identify the successes and challenges the centre has
experienced since the publication was compiled in 2005. The preliminary findings describe the
difficulties the centre has been facing in the area of sustainability. Previously, the local users
committee was responsible for the operation of the centre. The Management Board, with the
Executive officer of the Panauti Municipality as chairman, and the Working Committee have since
been established and currently run the centre. In terms of the facilities, the follow-up study found that
only computers are in operation, while other equipment, such as a photocopy machine and a fax
machine, need repair. One of the major challenges is the lack of Internet connectivity. Due to the
limited income, the centre has been unable to pay for Internet services, and as a result, the number of
users has fallen dramatically. Accordingly, the membership of the centre is decreasing. Despite the
difficulties, the centre has continued to provide services, including computer and other vocational
training, to a wider range of users, such as government officials, students, housewives, non-
governmental organization staff and farmers.

The technological, social and financial sustainability of telecentres, or CeCs, has been a persistent
issue for the whole region and is not unique to this centre or Nepal. This case shows the importance of
expanded ICT access among rural areas and highlights the need for a more comprehensive and
consistent policy and a programmatic approach in expanding ICT access and providing information
and services.
a
See www.unescap.org/icstd/pubs/ict.pdf.

B. Pacific connectivity

38. Connectivity and ICT access among the small Island developing States are limited, compared
with other subregions. Growth has been considerably slower. In this context, the Special Body on
Pacific Island Developing Countries at its ninth session recommended, among other things, that the
possible setting up and operation of improved dedicated satellite communication infrastructure for
Pacific small island developing States be considered (see E/ESCAP/1373, para. 31) in the context of
the follow-up to the Mauritius Strategy for the Further Implementation of the Programme of Action
for the Sustainable Development of Small Island Developing States.12

12
Report of the International Meeting to Review the Implementation of the Programme of Action for the Sustainable
Development of Small Island Developing States, Port Louis, Mauritius, 10-14 January 2005 (United Nations publication,
Sales No. E.05.II.A.4 and corrigendum), chap. I, resolution 1, annex II.
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39. Currently, the Pacific is served mainly by communications satellites, mostly evolved from
1970s approaches using analogue systems designed for telephone and broadcasting. Opportunities for
improved cost-effective, higher-bandwidth services exist, in the form of IP-based systems pioneered
in Asia, Australia and North America by many commercial telecommunications satellite operators.
But before such potential can be tapped, the questions of how to economize the construction, launch
and operations of such new technology, and how to generate enough revenue to successfully
implement such an approach for the Pacific, must be answered. The study and subsequent discussions
offered some suggestions, including proposals in which satellites are owned or operated by Pacific
institutions, or where user consortia lease traditional satellite capacity on improved terms.

40. Undersea cables cross many parts of the Pacific but currently serve few Pacific economies.
Fortunately, this is about to change with several planned initiatives, which have the potential to
connect most population centres in major Pacific island States by further expanding terrestrial
networks. However, this process has demonstrated that Pacific leaders might benefit from resources to
support decision-making and improve their collective negotiating ability, with a view to obtaining the
best possible results from such cable opportunities.

41. Terrestrial wireless is the fastest-growing connectivity modality in many developing countries
around the world. Though usage rates are generally low in the Pacific, often attributed to non-
competitive rates and services (or blamed on claims that economies are too small, despite the
successful rollout of services on many small island economies elsewhere), usage has grown
significantly in a few Pacific economies that have reformed their mobile telecommunications
regulatory structures. For example, one company, which played a major role in newly competitive
mobile communications in the Caribbean a few years ago, has demonstrated its interest in serving
Pacific economies. Terrestrial wireless has also been used for networking in such economies as
Tonga and Niue.

42. Based partly on a study undertaken for the Pacific Plan for Strengthening Regional
Cooperation and Integration,13 ESCAP data suggest that a competitive, less constrained marketplace
could save customers an estimated $66 million to $80 million annually. Over the 10- to 20-year
lifespan of a communications satellite or undersea cable, this equates to about $1.5 billion potentially
available to pay for telecommunications infrastructure, products and services. An investment of half
this amount could deliver significant satellite, cable and wireless infrastructure, as well as the services
they support. With such estimated savings from telecommunications restructuring, and with or
without supplementation from potential developmental and commercial partners, the Pacific should be
able to pay for enhancements.

13
Pacific Islands Forum Secretariat, October 2005 (available online at www.pacificplan.org).
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43. The study suggests that, for an average Pacific community, per capita funds available for
telecommunications might be $12 to $20 per month. When combined in family or clan groupings,
this could become $25 to $100 per month. At prices elsewhere in Asia and the Pacific, this is enough
for one or more phones, an Internet connection and some services. In poorer communities, some
services might be shared among neighbours, or through Internet cafes, e-centres or other modalities
that promote shared use. In more wealthy communities, more individual options, products and
services might be used.

44. It is worth noting that lower costs of satellite mobile phones, including solar-charged handsets
and pay phones, and business models involving partnering with local service providers can help
Pacific States pursue universal service while generating revenue and providing connectivity for
emergency management, particularly during major disasters.

45. In the short term, reductions in the cost of existing communications satellite capacity may be
achieved if Pacific States join together to lease one or more full transponders, as opposed to small
States leasing parts of transponders at higher rates. Leasing in units of one or more full transponders,
for relatively longer terms (for more than two to three years where possible), should markedly reduce
per-byte rates. An extension of the OPT French Polynesia / Telecom Cook Islands shared leasing
example might serve several Pacific island States well.

46. Potentially valuable examples which the Pacific can look to include the deregulation and
services of the Eastern Caribbean Telecommunications Authority, gratis wireless Internet in Niue,
domain-name revenue for Tuvalu and Tokelau, economical reuse of first-generation undersea cables
by a telecommunications company in Papua New Guinea, new-style “club” partnerships to build
undersea cable systems, and other modalities. Some Governments and/or operators continue to pursue
policies or practices that hinder progress in connectivity infrastructure, services and pricing—to
considerable social cost. Others, such as Samoa, are making progress in these arenas, to considerable
social benefit.

47. At a consultation meeting between ESCAP and Pacific island leaders on 13 March 2008,14
leaders agreed that the proposed combination of partners, including the Pacific Plan Digital Strategy
Task Force, might constitute a sufficient mechanism to pursue further progress toward improved
telecommunications progress. In addition, the High Representative for Least Developed Countries,
Landlocked Developing Countries and Small Island Developing States, and the Director of the
Special Unit for South-South Cooperation, both expressed interest in working with ESCAP on this
important issue.

48. It is also noted that several findings of the ESCAP Pacific connectivity study may apply to
other parts of the ESCAP region.
14
See the report of the Consultative Meeting of Executive Heads of Subregional Organizations and ESCAP: Twelfth
Session and Consultation Meeting of the Under-Secretary-General of the United Nations and Executive Secretary of ESCAP
with Pacific Island Leaders, Noumea, New Caledonia, 13 March 2008.
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IV. ISSUES FOR CONSIDERATION

49. The secretariat has herein covered some key issues that the Asia-Pacific region faces, namely,
the issues of ICT access and connectivity. Despite various efforts at the national and regional levels,
the current level of ICT access, especially among least developed countries, landlocked developing
countries and small island developing States, might not be sufficient to achieve the goals of the World
Summit on the Information Society or the Millennium Development Goals. In this context, the paper
identified community e-centres (CeCs) and Pacific connectivity as key priorities in advancing such
expanded access to unconnected and underserviced people.

50. In terms of improving ICT connectivity to the people living in most Pacific islands, a
dedicated satellite system is one available option that could provide all ICT services. The economic
scale of Pacific island countries suggests that such countries must cooperate among themselves and
with outside stakeholders in such efforts. There is a need to further develop the concept of a dedicated
satellite system for the Pacific island countries, particularly through an in-depth study of the possible
financial and commercial options, taking into consideration opportunities for South-South cooperation.

51. In addition, the secretariat has herein examined recent initiatives to review the
implementation of the outcomes of the World Summit on the Information Society. Although other
regions, such as Latin America, have set up mechanisms to systematically follow up on the
implementation of the outcomes of the World Summit on the Information Society, the Asia-Pacific
region has not yet initiated a review process. Such a review and follow-up could help to identify a
coordinated and concerted approach to fill gaps in ICT access at the regional and subregional levels.
At the same time, the secretariat hopes that the present document will lead to further discussion on
how Asia and the Pacific as a whole could share and use available technological, financial and human
resources at the regional level to address challenges and disparities.

52. In its resolution 62/5 of 12 April 2006, the Commission requested the Executive Secretary,
among other things, to undertake actions to promote the exchange of information and best practices at
the regional level and to facilitate policy debate on the use of ICT for development, to assist member
States with technical and relevant information for the development of regional strategies, and to
promote cooperation of all stakeholders in collectively transforming the digital divide into digital
opportunities and bringing the benefits of ICT to all.

53. In addressing such challenges, regional cooperation might play a critical role. Especially
important is enhanced connectivity at the subregional level, which is key for enabling the majority of
people to access online knowledge and resources at an affordable price and a meaningful speed. At
the same time, regional cooperation could highlight how the Asia-Pacific region could maximize the
use of available resources, such as vetted and professionally developed knowledge and resources in
e-education, e-health, e-agriculture and e-business applications, so that least developed countries,
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landlocked developing countries and small island development States might prioritize their expansion
of connectivity and ICT access at the national level.

54. In this sense, strengthened partnership with various stakeholders, including the private sector,
should be considered as a critical vehicle for accelerating such expansion. The secretariat has been in
discussion with various partners in search of ways of leveraging their expertise and strengths to
address challenges and seize opportunities.

55. In this process, the Asian and Pacific Training Centre for Information and Communication
Technology for Development can play a catalytic role in developing the capacity of policy- and
decision makers, Government officials and various stakeholders among member States. The
secretariat will further synchronize efforts made by the Centre to address such challenges.

56. In this context, the Committee may wish to consider the following recommendations:

(a) That in-depth and focused analysis, research and policy options and recommendations
on how to ensure the sustainability and scalability of community e-centres as part of expanding rural
ICT access be undertaken by the secretariat and shared widely among policy- and decision makers
and various stakeholders; the focus will be on the unconnected and underserviced remote and rural
areas of least developed countries, landlocked developing countries and small island developing
States;

(b) That support continue for the secretariat’s efforts in expanding Pacific connectivity,
especially for an in-depth study on financing mechanisms and options for deploying satellite
technologies; the secretariat will also assist members and associate members in the establishment of
an early warning system as a critical application of ICT to address the immediate needs of countries;

(c) That the secretariat be mandated to prepare for the conclusion and final review of the
implementation of the outcomes of the World Summit on the Information Society in 2015 and
accordingly to put in place various review and follow-up mechanisms at the regional level; this
includes undertaking research and analysis on the national and regional implementation of the Geneva
Plan of Action, organizing a regional forum, and coordinating with United Nations agencies and
partners.

. . . . .