Global Digital Inclusion Benchmarking Study Jan05

7/29/2019 Global Digital Inclusion Benchmarking Study Jan05

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IATIVE

I T A c c e s s f o r E v e r y o n e

G l o b a l B e n c h m a r k i n g S t u d y

January 2005


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Written By:

Stacey Boyd and Louise Herring

ITAFE Companies:

Accenture

AMD

BMC Software

Cisco

Dell

Global Learning Ventures

Ingram Micro

Institute for Connectivity in the Americas

Intel

Philips Electronics

Synopsys

VeriSign


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Table of Contents

Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Context for ITAFE

The ITAFE Greenhouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9ITAFE Objectives for 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Global Scan

Map Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Brief Summary of Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Design of ITAFE Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

High Level Observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Understanding Demand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Building the Whole Ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . 16Appropriateness of the Solution. . . . . . . . . . . . . . . . . . . . . . . . . 17

ITAFE Matrix

Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Sources of power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Criteria for assessing power . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Devising solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Key lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Types of hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Criteria for assessing hardware . . . . . . . . . . . . . . . . . . . . . . . . . 24Devising solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Key lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Connectivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Connectivity options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Criteria for assessing connectivity . . . . . . . . . . . . . . . . . . . . . . . 29Devising solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Key lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Software and Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Software and Application options . . . . . . . . . . . . . . . . . . . . . . . 32

Criteria for assessing software and applications . . . . . . . . . . . . 33Devising solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Key lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Training & Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Types of training and support . . . . . . . . . . . . . . . . . . . . . . . . . . 36Criteria for assessing training and support. . . . . . . . . . . . . . . . . 37Devising solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Key lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Cost Structure and Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Types of cost structure and financing . . . . . . . . . . . . . . . . . . . . 39Criteria for assessing cost structure and financing. . . . . . . . . . . 40Devising solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Key lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Case Studies

n-Logue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

E-Choupal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Voxiva. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Grameen Village Phones, Bangladesh . . . . . . . . . . . . . . . . . . . . 52

Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

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I T A F E I N I T I A T I V E


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Executive Summary

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W O R L D E C O N O M I C F O R U M

Launching the IT Access

For Everyone Initiative

At the World Economic Forums 2004 annualmeeting companies from the IT and Telecomsindustry Accenture, AMD, BMC Software,Cisco, Dell, Global Learning Ventures, IngramMicro, Institute for Connectivity in the Americas,Intel, Philips Electronics, Synopsys and VeriSign launched the IT Access for Everyone Initiative(ITAFE). The ambition initially was to create anaffordable low-cost internet enabled device. How-ever, early on in the discovery process, ITAFErealized that a hardware device is only a single though highly important part of a complex valuechain that must be secured for disenfranchisedpopulations to have access to ICT. Other criticalelements include power, connectivity, relevantsoftware applications, training, support andmaintenance, cost structure and financing.

Upon evaluating dozens of case studies of ICTinitiatives in developing countries around theglobe, ITAFE determined that while a device isimportant, the real challenge is to create anecosystem of organizations that could effectivelydeliver on each of those elements of the value

chain in a sustainable and scalable manner.Thus, ITAFE focused its efforts on understandingwhich business models of previous initiatives hadbeen proven effective, leading to sustainabilityand scalability.

The ITAFE framework and the analysis of dozensof case studies around the globe are set forth inthis white paper. The framework has informed thequantitative and qualitative research the ITAFEteam has done in Brazil, ITAFEs pilot country.The 2004 results of the work conducted by ITAFE

in Brazil are included under separate cover.

The ITAFE Framework

Like a greenhouse which requires the interac-tion of water, soil, sun to reach its end result,ITAFE realizes that the existence of a singlehardware device is insufficient to result in arelevant and meaningful acceleration of Internetadoption worwide. Both supplyand demandneed to be taken into consideration.

ITAFE quickly learned that demand for anICT initiative is not only understanding thecustomer and their needs and their willingness

and ability to pay forservices, but thinking

creatively about coststructure and financing

arrangements that enablebottom of the pyramidconsumers to gain accessto ICT tools.

The supply elements of theecosystem are equally im-portant, particularly power,connectivity, hardware,

relevant software applica-tions, training and support.How each of these factorsinteracts with the othersdetermines both the quality

of the solution for the end-user and the cost. The interaction between supply and demand

determines the sustainabilityand scalabilityof the overall solution. While the developingworld is littered with ICT initiatives, few haveachieved balance between supply and demandand thus it is the exceptional initiative thatreaches scale.

None of the elements of the ITAFE ecosystemcan be considered in isolation. Each has a

significant impact on a potential businessmodel. The full ecosystem and the interplaybetween supply and demand factored intothe design of the ITAFE pilot in Brazil.

Global Scan

ITAFEs research was designed to help the ITAFEteam understand the critical success (and failure)factors in ICT initiatives around the globe. Over50 cases from around the globe were initially

reviewed. From those fifty plus projects, twodozen were selected for deeper analysis. Theprojects identified for in-depth research wereprimarily selected for one of more of thefollowing reasons:

Overall applicability to ITAFEs goal: to provideaccess to IT to those currently denied accessfor infrastructure, financial or other reasons

Project focus fell into one of the followingfour areas: economic empowerment, health,education, community

Illustrative value for the ITAFE framework Availability of research/information Mix of developing and emerging country

geographies and economic realties

ITAFE Framework


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Executive Summary

Each of the two dozen initiatives was analyzed

through the lens of the ITAFE framework. Theelements constituting supply and demand power, connectivity, hardware, software andapplications, training and support and coststructure and financing were individuallystudied and best-of-breed examples identified,both within each element of the ITAFE frameworkand overall.

Lessons Learned

The global projects researched led to severalkey lessons for ITAFEs efforts in 2004:

Focus relentlessly on end-user needs.The projects that failed most abysmally didnot have a focus on the end-user. In thosesituations typically a donor and/or NGO hadconceptualized what they believed the end-user to need and designed a project to thosespecifications. But when the solution wasrolled out, the needs of the end users differedfrom the perception of what their needs were.

Rigorous, structured, grass roots research ofend-users needs, to the contrary, has yielded

much higher success rates in ICT4D initiatives.

Hand-in-hand with the focus on end-userneeds is the importance of recognizingthe potential of the bottom of the pyramidproducers and consumers.

Build strong consortium that holisticallyincorporates each of the must-have

elements. Every single successful projectanalyzed went about creating their particularICT4D solution through the creation of aconsortium that systematically addressedboth the supply and demand components

of the framework: power, connectivity, hard-ware, software and applications, training andsupport, and cost structure and financing.

Create robust business model for eachpartner. Part and parcel of building a strongand robust consortium is the building of a sus-tainable business model, for each member ofthe consortium. The most successful projectsfrom around the globe understood that theirsuccess was only as strong as the weakestmember of the consortium. Hence, great care

was taken to ensure that the incentives of allbusiness partners are aligned.

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Executive Summary

Focus on niche market.The most successfulprojects took into account competitive dynam-

ics and industry interests and carved out aspecific market for themselves. That alloweda wider breadth of consortia members toparticipate than would have been possible ifpotential partners had felt their bread andbutter businesses were at risk of beingcannibalized.

Capitalize on entrepreneurialism.Theinitiatives that have attained the greatestscalability and replicability have harnessedthe entrepreneurial spirit of those in the field.Ownership in the form of co-investment orsole investing, oftentimes through the useof micro-finance, has proven to be a keyto success. The franchise model has beenparticularly effective in engaging otherwisedisenfranchised members of society, suchas women, in strategies that improve theirlivelihood. Local buy-in and designing initiativeswith local capacity in mind is essential.

Attack cost structure and financing frommultiple angles. Many ICT4D initiatives havelost momentum or died completely due to

reliance on a single cost structure or financingmodel. Those with a multi-pronged approachto thinking creatively about cost structure andfinancing without a reliance exclusively on anyone funding source (particularly government)have enjoyed the greatest success.

Focus on tackling a specific issue at theoutset with a view to expanding scope

once the program is up and running.

Initiatives the quickest to lapse into failurewere ones that were too ambitious at the

outset versus those that started with concrete,modest objectives, worked out any kinks inprocesses and then expanded operations.However, equally important, is starting outwith the expectation of the expansion ofscope. Successful, scalable projects startedsmall but designed processes at the outsetto accommodate increased capacity in theprojects near future. Less successful onescreated a model that worked on a pilot basisbut did not prove scalable.

Establish sufficient set-up funding andcore investment relations to ensure pilotproject will be fully funded.A key element

of developing this business model wasattracting sufficient funding from corporations

and investment organizations to cover set-upcosts. Successful initiatives built strong rela-tionships with these partners and managedthese relationships well to ensure that fundingfor expansion was forthcoming. Corporaterelationships also enhance the profile andvisibility of a project.

Build strong government relations whenoperating in a vertical which is heavily

influenced by government policy but do

not rely solely on government support for

a projects success. ICT initiatives are proneto need certain levels of government support.Hence, gaining government buy-in early in aprojects life-cycle is critical. Strong govern-ment relationships are key to projects whichuse cellular and switched networks becausein many developing countries they remainstate-controlled. It should be noted, however,that working with governments particularly indeveloping world contexts often incurs timelags not experienced in business and requiresthe development of a specific set of negotia-tion and relationship management skills.

The most successful projects while gaininggovernment support have built businessmodels that are not reliant solely on on-goingsupport from government.

Local Application of ITAFE: Brazil

Using the global framework and methodology toguide its efforts, ITAFE has been researching theBrazilian market. ITAFE work in Brazil done in2004 includes extensive qualitative and quantita-

tive research, particularly on the demand side ofthe equation. Through extensive market surveysand analysis and using the global framework andmethodology, the local Brazil team has done ini-tial economic modeling that begins to demon-strate how the different elements of the ITAFEgreenhouse might work together in Brazil tocreate a sustainable, viable business model forall organizations involved. ITAFEs efforts in 2005will focus on honing and refining the Brazilianbusiness model, building the local consortia todeliver on the business solution, launching thepilot and creating the tools necessary to poten-tially expand ITAFE to other locations.

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Context for ITAFE

At a formal session during the World EconomicForums 2004 Annual Meeting, leaders from the

IT and Telecoms industry concluded that, todate, no government or business entity or acombination thereof had delivered a trulyaffordable wireless connectivity computingdevice along with the infrastructure meant tosupport it in the developing areas of the world.As a result, they initiated, through the WorldEconomic Forum, a project to explore the char-acteristics of an access device designed specifi-cally to enable basic computing and Internetaccess in the developing regions of the world.

The objective of the IT Access for Everyone(ITAFE) initiative is to research the relevanceand feasibility of developing simple, low-cost,wireless/Internet enabled device(s) with thefeatures of a PC that is truly affordable in thedeveloping regions of the world. The followingorganizations are engaged in the ITAFE initiative:Accenture, AMD, BMC Software, Cisco, Dell,Global Learning Ventures, Ingram Micro, Institutefor Connectivity in the Americas, Intel, PhilipsElectronics, Synopsys and VeriSign.

The ITAFE Greenhouse

Like a greenhouse which requires the interactionof water, soil, sun to reach its end result, ITAFErealizes that the existence of a single hardwaredevice is insufficient to result in a relevant andmeaningful acceleration of Internet adoptionworldwide. A hardware device is only a single though highly important part of a complexvalue chain that must be secured for value tobe realized. Other critical elements of thegreenhouse include:

Power Connectivity Relevant software applications Training, support and maintenance Cost structure and financing

How each of these factors interacts with theothers determines both the quality of the solutionfor the end-user and the cost. Moreover, theinteraction among and between these elementswill determine the sustainability and scalabilityof the overall solution:

Power. Research indicates that 2B of the worlds6B people do not have access to electricity.

Therefore, any solution ITAFE creates must con-sider power options that do not rely on usersbeing on the grid if ITAFE is to result in arelevant and meaningful acceleration of Internetaccessibility to a third of the worlds population.

Connectivity.A device alone will not workwithout concomitant infrastructure enablingaccess to the Internet. There are several innova-tive technologies with respect to connectivity,such as wireless, that could greatly improve thequality, and reduce the total cost, of the solutionto the end user. ITAFE will consider regulatoryrealities, price, providers and the prevalenceof innovative connectivity options in designingits overall solution. If needed, ITAFE will makerecommendations on how the regulatory environ-ment in a particular country or region couldbe altered to possibly expand IT access.

Software Applications. Hardware without theavailability of applications to run on it is useless.Many IT projects have failed due to lack of con-sideration of software applications. This is partic-ularly true in the developing world. Software

needs to be relevant, provided in the local lan-guage and contextualized to local conditions andneeds. Moreover, a software solution designedto solve a particular problem oftentimes man-dates critical features of a given hardware solu-tion (e.g. screen size, speakers, etc.). As such,the ITAFE approach will include a careful analysisof software options, both existing and proposed.

Training, Maintenance and Support.Training,support and maintenance go hand-in-hand withsoftware applications as a critical greenhouse

element. IT initiatives are renowned for failingdue to lack of forethought around training andimplementation. The kind of support and traininganticipated for a particular use of a device obvi-ously has a large impact on the design of thedevice itself and will be taken into considerationin the ITAFE process.

Cost Structure and Financing. In reviewingsuccessful IT projects in the developing world,ITAFE has learned that the most successfulmodels structured innovative financing modelsfrom the projects inception. Many of them allow

for multi-users (versus a model of one device

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Context for ITAFE

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per user). Others employ micro-credit institutionsto help consumers/entrepreneurs fund the

purchase of a solution/device. Others yet havegovernment or other institutions seed demand.The willingness and ability of consumers to pay,or for government to fund an initiative, obviouslyhas important implications for the design of aprototype, as might a multi-user approach.

None of these elements of the ITAFE green-house can be considered in isolation. Eachhas a significant impact on ITAFE researchand the design of ITAFE project prototype(s).

ITAFE Objectives for 2004

Hence, in 2004 ITAFE focused on bothcreating an overarching global framework

and methodologythat can be used for multiplelocations and conducting the local researchneeded to deploy a project in Brazil.

Global framework and methodology

The focus of the global research on each of theelements of the greenhouse has been to ensurethat ITAFE incorporates any and all key lessons

learned from previous like initiatives and does notrepeat their mistakes. To begin, ITAFE surveyedover fifty IT projects in developing and emergingcountries. Approximately two dozen of those fiftyIT projects, some of which were successful anda number of which did reach their stated aims,were then selected for in-depth analysis. ITAFEsgoal was to find patterns and key lessonsamong those two dozen projects to guide itsfuture efforts, lest ITAFE fall prey to the samemistakes many initiatives in the developing worldaspiring to the same end have. This white paper

is the summary of that research and an outline ofanalytical tools built and designed on the experi-ence of the many IT projects, both failures andsuccesses, which have preceded ITAFE.

Local research and creation

of business case

Concurrent to the research being done on bestpractices around the globe, and using the globalframework and methodology, ITAFE has beenresearching the Brazilian market. ITAFE work inBrazil this year includes extensive qualitative andquantitative research. The local Brazil team,using the global framework and methodology,has also created a business plan that will,among other things, articulate how the differentelements of the ITAFE greenhouse will worktogether in Brazil to create a sustainable, viablebusiness model for all organizations involved.The business plan identifies preliminary membersof the greenhouse or consortia in Brazil whothrough collaboration will be able to deliver onthe business case. Such a consortia mightinclude, for example, a local development shopthat can write the necessary software in locallanguage, a local NGO able to provide trainingand support, a micro-finance institution willing tounderwrite loans to ITAFEs end-users, as well ashardware and connectivity providers deliveringon the device portion of ITAFEs solution.


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Global Scan

In conducting its research, ITAFE surveyed over50 cases from around the globe spanning every

continent. From those fifty plus projects, twodozen were selected for deeper analysis. Theprojects identified for in-depth research wereprimarily selected for one of more of thefollowing reasons:

Overall applicability to ITAFEs goal: to provideaccess to IT to those currently denied accessfor infrastructure, financial or other reasons

Relevance of project focus fell into one of thefollowing four areas: economic empowerment,

health, education, community Illustrative value for the ITAFE framework Availability of research/information Represented a mix of developing and emerging

country geographies and economic realities

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Map Overview


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Global Scan

Brief Summary of Projects

Continent Country Project Name Vertical Summary

Africa South Africa Vodacom Community As part of Vodacoms Community Service programthe company sets up entrepreneurs with their own con-tainers from which to provide phone access to remoteareas on South Africa.

Africa Senegal S.A.R.L. Economic Saint Louis Net, S.A.R.L., a for-profit business offeringOpportunity IT-based services to the community.

Africa Senegal Manobi Economic Manobi is a multimedia service operator for profession-Opportunity als in the rural sector and agribusiness. In Senegal,

mobile phones and the Internet have been used toprovide multi-channel business services to farmers,

with the T2M market information system providingstrategic information to farmers through WAP enabledphones.

Africa Kenya Price Africa - Economic A project of PRIDE AFRICA (PA) designed to deliverDrumNet Opportunity financial and information services for mainstreaming

resource-poor farmers.

Africa South Africa UUNET Economic The UUNET Bandwidth Barn is an incubator for ICTBandwidth Opportunity start-ups in the Western Cape set up by the CapeBarn Information Technology Initiative, a not-for-profit agency

focused on developing the ICT sector in the WesternCape.

Africa Regional African Education Founded to address the critical needs for increased

Virtual access to quality tertiary education in Sub-SaharanUniversity Africa, building capacity and supporting economicdevelopment by leveraging the power of moderntelecoms technology.

Africa Regional Freeplay Education/ Recognizing a need for alternative energy sourcesFoundation Community amongst the worlds poorest communities, the Freeplay

Foundation was founded as an extension of theFreeplay Energy Groups commitment to developmentand empowerment.

Africa Uganda Uconnect Education The object of Mission Mobile Educations UgandaConnect project is the advancement of public education,health, agriculture and other sectors in Uganda, usingICT to improve the quality and efficiency of communica-

tions through the provision of necessary hardware andsoftware and the training of teachers and managers.

Africa South Africa The Compliance Health For-profit project set up by a South African doctor toService prevent non-compliance of patients with TB medicine.

Africa Uganda HealthNet Health HealthNet Uganda (HNU) and SATELLIFE haveaddressed the challenges of healthcare in Ugandaby supporting a low-cost email network for healthprofessionals in Kampala and beyond, distributinge-mail based information and providing computerliteracy training and technical support. In addition,HNU supports the computer network at MakerereUnis Faculty of Medicine where it is housed.


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Global Scan


Africa Senegal Afrique Health Pesinet is a non-profit organization focused onInitiatives/ preventative health care. Its mission is to improvePesinet the health of children less than 5 years of age in the

poor communities of Saint Louis.

Asia Philippines B2BPrice.now Economic E-marketplace for farmers, fisherfolk and SMEs toOpportunity access market prices and trade products. Available

via website or cell phone.

Asia Philippines Bridge IT Economic Global program to deliver digital education materialsOpportunity to schools using mobile technology. Interactive

multimedia learning materials become accessibleto local classrooms around the world.

Asia India e-Choupal Economic Web-based initiative offering farmers of India all the

Opportunity information, products & services needed to enhancefarm productivity, improve farm-gate price realizationand cut transaction costs.

Asia Bangladesh Grameen Economic Aiming to provide easy access to telephone services,Telecom/ Opportunity all over Bangladesh. To initiate a new income gener-Village Phones ating option for villagers and gradually bring the full

potential of ICT to their doorsteps.

Asia India n-Logue Economic n-Logue has created a franchise model to set-upOpportunity shared-access village kiosks designed to provide

Internet and phone system access to remote areasof India.

Asia India PicoPeta (Amita Economic Aim was to design easy to use software which wouldSimputer) Opportunity include Indian language software, be cheap to produce

and enable economic, health and education initiativesacross India.

Asia India TARAhaat Economic TARAHaat uses a franchise-based business modelOpportunity/ to bring computer and Internet technology to ruralCommunity regions and plans to use these technologies to create

revenue streams leading to financial viability for itselfand its franchises.

Asia Nepal/Global Equal Access/ Education Equal Access focuses on combining two key re-WorldSpace sources - cutting edge Information and Communica-

tions Technologies and the passion of people tomake a meaningful difference. Challenge is to fire uppeoples imaginations, tap into their potential to makereal differences and engage them as central playersin issues concerning their own development.

Asia Laos Jhai Foundation Education/ Established to provide connectivity in remote areasEconomic in Laos with the aim of promoting self-sustainableOpportunity models for education and economic opportunity.

Asia India TeleDoc Health Teledoc uses leading-edge communications capabilitiesto bring high-quality healthcare directly to patientsusing GPRS mobile networks.


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Global Scan


Latin Brazil Computador Community The CP project was sponsored by the BrazilianAmerica Popular government with the aim of providing low-income

Brazilians with access to information technologyand to get more people online.

Latin El Salvador Infocentros Community Aims to contribute to the national development ofAmerica democratization through providing access to knowl-

edge, publications and the exchange of information.

Latin Bolivia PRODEM FFP Economic The business model was designed to meet the needsAmerica Opportunity of bottom-of-the-pyramid customers by developing

accessible and low-cost banking services. It targetslow-income communities and the entrepreneurs andmicro- to medium-size enterprises that constituteBolivias informal economy, offering a wide range

of savings, credit and money transfer services.

Latin Brazil ViaSebrae Economic Aims to provide a platform for small businessesAmerica Opportunity to conduct e-commerce activities that they would

otherwise be unable to afford. Project was consistentwith Sebraes mission of working in a strategic,innovative and pragmatic way so that small business inBrazil had the best possible conditions for sustainabledevelopment, contributing to the general evolution ofthe country.

Latin Brazil CDI Education Non-profit NGO that has used IT since 1995 to pro-America mote social inclusion via Information Technology and

Citizens Rights Schools. Provides equipment (hardwareand software), training and administrative and technical

support to schools which are self-managed and sustain-able but monitored by regional CDI offices.

Latin Colombia Computadores Education Aims to establish a permanent flow of computers toAmerica para Educar public schools in all regions of the country, offering

new generations and communities access to betteropportunities for education, knowledge and progress.

Latin Argentina educ.ar Education Three-pillar strategy that intends to provide connec-America tivity and computer equipment, teacher training and

high-quality educational content to raise the standardof education for all Argentinean students. Mission is toimprove reach and quality of educational content andtools available to Argentinean students and teacherswhile providing an Internet-based platform forcollaborative learning across the country.

Latin Peru Voxiva Health Voxivas public health project in Peru created an inter-America national for-profit organization designed to facilitate

reporting and communication with health professionalsin areas without Internet access and to do so rapidlyand with no investment in new hardware.


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Global Scan

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Design of ITAFE Matrix

In surveying projects aroundthe globe, and measuringtheir success, ITAFE quicklyrealized that in many placesthere is great demand forinnovative ICT solutions. Forthe right solution, consumers,even very poor consumers,are willing to pay particularlywith an innovative cost struc-ture and financing structure.

However, the supplyof ICT

solutions (and scalability) islimited by the lack ofpower,connectivity, hardware, soft-

ware applications and training and support.Thisobservation true across all projects studied gave rise to the creation of an ITAFE matrix,focused on both supply and demand, describingthe elements an initiative focused on ICT4Dmust have in order to succeed.

Success means scalable and sustainable impacton a population that prior to the projects imple-mentation did not have access to the kind of IT

service now available to them (communication,health, education, etc.) and as a result of theproject the population served will enjoy the bene-fits of IT access for years to come. While thereare certainly other important elements in makingan ICT4D project successful, the inclusion (orlack of inclusion) of these six elements reflectingboth the supply and demand side of the equa-tion power, connectivity, hardware, softwareand applications, training and support and coststructure and financing had a dramatic impacta given projects success, without exception.

Supply

Power:A reliable, sustainable and locallyappropriate source of power is a key elementon the demand side of the framework, particu-larly in a world where 2 billion people, mostly inrural areas do not have access to electricity1.An assessment of the criteria required toprovide power, as outlined by the ITAFE matrix,highlights a number of key constraints linked

to sustainability, reliability and scalability whichmay significantly impact an initiatives success

or failure. Successful initiatives are those whichunderstand these constraints and design solu-tions which overcome them, building incre-mentally on existing infrastructure and usinginnovative, reliable and cost-effective sourcesof power.

Connectivity: Reliable, sustainable and cost-effective connectivity be it landline, mobileGSM or wireless or satellite is essential for themajority of ICT initiatives. However developingcountries, particularly remote areas, often lackthe infrastructure to provide robust connectivity,in addition to facing regulatory constraintsaround the licensing of networks and accessto competitive connectivity options. In a globalpopulation of 6.3 billion there were only 843million main lines in use in 2003 and 604 millionInternet users2. ICT4D initiatives therefore needto focus as much as possible on using existinginfrastructure or on promising new technologiessuch as wireless or satellite to overcome theseconstraints.

Hardware: Hardware forms another key infra-

structural element of the ITAFE framework whichmust be considered closely in order to develop asuccessful ICT4D initiative. The chosen hardware be it a PC, PDA or mobile phone must be fit-to-purpose not only in its ability to run the rele-vant software and applications but also itscompatibility with an initiatives power and con-nectivity capabilities. ICT initiatives tend to use oradapt existing hardware or develop new hard-ware for their purposes and each approachattracts different costs and complexities.

Software and Applications:The softwareand applications used by the ICT initiatives aredesigned to meet the requirements of a specificvertical, such as education, health or economicopportunity. On the whole, different verticalsprovide ample opportunities for a variety of soft-ware solutions but tend to suffer from similarconstraints. Overcoming these constraintsrequires a clear understanding of the criteriaunder which software and applications in ICTinitiatives are successfully used, which includestheir fit to user requirements and the availabletechnical infrastructure and the usability of the

1 UNDP website, 2004, www.undp.org/energy/

2 CIA factbook, 2004 www.cia.gov


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Global Scan

solution. The design of an initiatives softwareand applications and their fit-to-user requirement

are essential to ensure success, sustainabilityand scalability.

Training and Support: Consideration of thetypes of training and support available for ICTinitiatives, and the logistics needed to properlydeliver the training and support necessary, is akey measure of sustainability within the ITAFEframework. Both services can be offered aslocal or remote services or as a combination ofboth. The option chosen will be affected by andimpact upon the existence and developmentof IT capacity.

Demand

Cost Structure and Financing:The coststructure and financing of ICT initiatives isthe key element in their design which ensuresboth start-up and sustainability. The majorityof projects adopt a mixed model of financingand most are designed to move towards self-sustainability after a pilot stage. The fundingprogram and business model chosen not

only determine the strategic roll out of a projectbut also heavily impact upon elements such aslocal buy-in and ownership and relations withthe government. Careful consideration of thetype of cost structure and financing adoptedis therefore required given that the decisionstaken have an immediate and long-term impactupon the initiatives success, its scalability andits sustainability.

High Level Observations

While the last section of this paper detailslessons learned at a more detailed level,there are three high level observations ITAFEmade through the study of both successful andnon-successful projects and the development ofthe matrix worth noting at the outset.

Understanding Demand

Projects that took a detailed and structuredapproach to understanding the specific

problem they were trying to solve and then

focused on creating a solution that met

those very specific user needs succeededmore frequently than those solutions createdbased on a perceived need of end users.Understanding your customer and their needs,particularly the needs of those customers at thebottom of the pyramid and their willingness topay, is essential to the successful implementationof a project. In other words, demand as well assupply matters greatly when planning an ICT4Dinitiative.

Building the Whole Ecosystem

How the must-have elements work

together within the larger context of

the project is more often than not the

determining factor in a projects success

or failure than achieving perfection on

any one of the individual elements.

The must-haves interact with one another

much like a greenhouse. Soil or sun or wateralone will not give rise to beautiful flowers.Nor will the same combination of soil, sunand water have a like-effect on sunflowers,orchids and ferns. Only when soil, sun andwater are carefully meted in the right proportionsand combination for a particular flower will thedesired outcome be met. The same holds truefor ICT4D initiatives. A hardware device alone ina developing world context is useless. As muchcare needs to be given to the availability ofpower and connectivity and to the accessibility

of relevant, useful software applications andtraining. And all of these elements are tiedtogether through proper cost structure andfinancing.

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Global Scan

Appropriateness of the Solution

There is rarely one right answer withrespect to a particular choice that an ICT4D

project makes in any of the of the must-

have elements. However, the overall busi-

ness model must drive the decision making

about which of the must-have elements

should be included and in what combina-

tion.The proper selection of the must-haveelement according to the purpose of the projectand its environmental context is critical. Usingelectric as the source of power, for example,could very well make sense if the project is oper-ating with a population that has access to mainspower. However, if the intent is to reach ruralswaths of the population off the electricity grid, aprojects decision to work with renewable energysources requiring little to no infrastructure is obvi-ously the wisest choice. The most successfulprojects match the solution to a given problemwith the corresponding must-haves weighingthe trade-offs of each option. For example,purchasing a fully equipped, state of the art PCmay seem like a wildly expensive alternative forpoorer parts of the world, yet if there is a coststructure and financing model that supports the

use of such a technology (such as a multi-usermodel) and the software application choicerequires more robust functionality, a higherpriced PC may be a better choice than theselection of a very low-cost handheld computerwith limited functionality, despite the cost differ-ential. But the very same PC might require morepower than a handheld so thought needs to begiven to the population the PC will serve andwhether there are viable power and connectivityoptions to serve that population. PCs are alsorelatively complex so training and support, too,

must factor into the decision-making process.Only when all of the greenhouse elements areconsidered together, in the context of the partic-ular project, will the right outcome be clear.

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ITAFE Matrix

The ITAFE matrix has sixmust-have components,

each of which significantlyinfluences the overall successof an ICT4D initiative.

In the paragraphs that follow,each element of the matrix power, connectivity, hard-ware, software and applica-tions, training and supportand cost structure andfinancing is explored. Thestructure for each element ofthe matrix is as follows:

an introductory overview description of the possible options

(e.g. power options include mains,battery-operated, renewables, etc.)

exploration of the criteria by which each of op-tions are evaluated in the context of an ICT4Dproject (affordability, reliability, scalability, etc.)

description of best-of-breed examples ofinnovative and creative solutions for eachmust-have element of the matrix includingan indicative assessment of the relative

success of each initiative in relation to theparticular must-have3

key lessons learned for each componentof the matrix

Broadly speaking the matrix can be thoughtof as breaking down into technological infra-structure (hardware, power and connectivity);human infrastructure (training and support) andorganizational and financial infrastructure (coststructure and financing) and it is in this orderthat the specific components of the matrix will

be discussed.

Power

Introduction

By definition, technology lies at the core of ICT4Dand the provision of power, hardware and con-nectivity is frequently a significant challenge indeveloping world contexts. A reliable, sustainableand locally appropriate source of power is,

therefore, a key element on the demand sideof the framework, particularly in a world where

2 billion people, mostly in rural areas, do nothave access to electricity 4. An assessment ofthe criteria required to provide power, as outlinedby the ITAFE matrix, highlights a number ofkey constraints linked to sustainability, reliabilityand scalability which may significantly impact aninitiatives success or failure. Successful initiativesare those which understand the constraints anddesign solutions which overcome them, buildingincrementally on existing infrastructure and usinginnovative, reliable and cost-effective sourcesof power.

Sources of power

Power sources for ICT initiatives can be dividedsimply into mains provision and stand-alone gen-erators of power that exist separately from themains infrastructure. The ITAFE matrix identifiesfive main types of stand-alone power used inICT initiatives; batteries, generators, solar power,wind-up power, and bicycle cranks. This is notan exhaustive list of the stand-alone optionsavailable on the market but indicative of those

historically preferred in ICT4D. Nor is it alwaysthe case that a single source of power is usedfor any one initiative. More frequently, powersources will be combined to ensure a reliablesource of power that meets the volumesrequired by an initiatives hardware.

Mains power

Mains power is the most frequently used sourceof power for the majority of ICT initiatives on thebasis that, where the correct infrastructure is inplace, it is the most cost-effective and efficient

means of reaching a large number of people.However, it is reliant firstly on the existenceand ongoing maintenance of power lines andsecondly on the financial ability of individualsor communities to connect to the grid. For the2 billion people without access to the electricitynetwork in the rural areas and informal settle-ments in and around cities in much of thedeveloping world, lack of infrastructure andlow-incomes are combined to constrainconnection to the grid.

18


3 This assessment is based on a subjective judgement of the relative success of initiatives studied for the ITAFE matrix and should not be taken as a definitivejudgement of an initiatives ability to use each of the matrices must-haves. Rather the assessment should serve as a quick guide to inform the reader as tohow well a particular initiative met the criteria on which the must-have is being assessed within this report.

4 UNDP website, 2004, www.undp.org/energy/


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ITAFE Matrix

Batteries and generators

On the basis of cost and access, therefore, there

are many advantages to stand-alone options forthe generation of power. Non-renewable sourcesof power, such as generators and batteries, arereadily available, allow individuals to overcomegeographical constraints and are therefore oftenused in areas off the grid or as a back-up supplywhere outages are a frequent occurrence. Formany consumers, however, the cost of running agenerator or buying and/or recharging batteriescan also be prohibitive. Nor does either option,however, offer either an environmentally soundalternative to mains power.

Renewable sources

Renewable sources of power in contrast offer anenvironmentally-sound alternative to extendingthe reach and reliability of power supplies. Whilstoften incurring a higher initial set-up cost, theirreliance on natural renewable sources alsomeans they can be much cheaper to run thanbatteries or generators. Solar power, for exam-ple, has been adopted by a number of initiativesin developing world contexts because its tech-nology is relatively advanced and can be used topower small- and large-scale hardware, connec-

tivity and facilities at a relatively low, and falling,cost. Similar options, such as wind turbines orhydroelectricity, also offer renewable sources butare more expensive in set-up costs and oftenrequire large amounts of infrastructure and landto generate power as well as the infrastructure torelay electricity from source to the required pointof usage.

Perhaps the simplest source of renewableenergy harnesses human energy either throughwind-up or bicycle (foot) crank generators. The

resultant power source is independent, flexible,renewable, environmentally friendly and verymobile. Unfortunately it is seldom scalablebeyond powering radios and mobile phones fora limited period of time and as such can seldombe used as a sole power source for an initiative.

The future for power

A number of new sources for generating powerhave been developed and marketed over the lastten to twenty years. Some such as solar powerhave seen widespread adoption and have metrequirements in remote areas extremely effec-

tively. HP, for example, is testing a solar fabricwith itinerant photographers in South Africa that

costs 80% less than traditional solar panels andwont crack5 whilst a number of NGOs are work-ing in developing countries to develop thecapacity to build solar panels and thus spreadtheir usage whilst promoting entrepreneurialism.

Future sources of power, such as fuel cells, alsooffer environmentally-sound compelling alterna-tives, particularly in off-the-grid locations. Fuelcells have the added benefit that, unlike solarenergy, they can store energy until it is neededand can be transported to where power isrequired. In addition to new sources, the ongoingmanufacturing and innovation around existingrenewable technologies such as solar will serveto drive down prices and hopefully to ensure thatthey become a more viable solution for ICT initia-tives with an emphasis on affordability.

Criteria for assessing power

Given the variety of options available for thegeneration of power, a set of criteria are requiredto evaluate the relative pros and cons of each

option. All ICT initiatives make an assessmentat the outset of their power requirements andselect an option or combination of options basedon factors such as the volume of power requiredat present and ongoing, the infrastructure inplace or feasibility of developing infrastructure,the affordability of power, the need for back-upgiven fluctuations in supply etc. On this basis theITAFE matrix has assessed the relative benefitsof different options of powering ICT initiativesbased on the existing infrastructure in place,suitability, affordability, reliability, efficiency and

environmental impact.

Existing infrastructure

Central to the provision of power is the existenceof infrastructure, whether that is power lines,solar panels connected to a device or the exis-tence of shops in which to purchase batteries.Assessing the success of power generation foran ICT initiative necessitates understanding howexisting infrastructure was used or new infra-structure developed and the suitability of theprovision of power to the geography, populationdensity and infrastructure where the initiative was

19


5 Business Week Techs Future, September 27, 2004, www.businessweek.com/magazine/content/04_39/b3901013.htm


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ITAFE Matrix

located. In some cases the choice to use mainselectricity can act as a constraint on initiatives

because it restricts the geographical reach of aproject. Successful projects in extremely remoteareas might instead choose a power solutionwhich requires no infrastructure and is thereforea much more viable option than reliance upona mains network.

Suitability

Not only must the power source chosen becompatible with existing or proposed infrastruc-ture, it must also be compatible with the hard-ware used. The volume and reliability of aninitiatives power source must be fit-to-purposefor the hardware required. Equally, powersources need to be easy to use or to trainpeople to use, as well as being accessibleto multiple users.

Affordability

In using existing infrastructure but particularly indeveloping new infrastructure to provide poweranother key criterion is affordability. As touchedon in the section above, different costs areincurred at different points in the provision ofpower, leaving some options more appropriate

than others. For example, the central cost ofmains electricity for the provider, particularly inremote areas with difficult terrain, is that of build-ing and maintaining the required infrastructure.Where the infrastructure is in place, the cost forconsumers of connecting to the grid and usingmains electricity may be driven down by compe-tition and the number of consumers in the mar-ket. However, although low-cost in relative terms,it may still be prohibitive for bottom of the pyra-mid consumers. In contrast, solar technology,particularly to power small items such as mobile

phones or wall-sets, may be more expensive toset-up but self-sustaining on an ongoing basis.ICT initiatives must therefore assess the afford-ability of each solution given their intended con-sumers and decide on a power source ormultiple sources accordingly.

Reliability

The reliability of the power supply is also a critical

aspect of the fit-to-purpose of the power usedfor an initiative. Particularly where using PCs andsimilar hardware, a reliable power supply can bea key element which determines an initiativessuccess or failure. Ensuring that power supply isreliable is a question of understanding the possi-bility of outages, building in back-up options andguaranteeing that all possible maintenance andrepairs capabilities possible are in place. Thedurability of equipment and its ability to operatein extreme environments may prove key depend-ing on an initiatives location.

Efficiency

The reliability of power, alongside affordability,feeds into a question of the overall efficiency ofdifferent power sources for ICT initiatives.Efficient consumption of energy is often a built infactor to the hardware used by ICT4D initiatives,based on the fact that power supply may beintermittent or low. In the same way, the ITAFEmatrix regards the efficient production and trans-port of energy as a vital decision-making factorfor ICT initiatives.

Environmental impactThe final criterion upon which power provision forICT initiatives should be assessed is environmen-tal impact. In a developing world context wherethe regulation of power generation may be lesswell enforced, it is important to consider ques-tions of pollution, wastage and the disposal ofthe infrastructure required to generate power.As discussed in the previous section, this can bean important balancing factor when consideringthe benefits of back-up options such as batteriesfor initiatives where outages are likely.

In sum, the criteria for assessing the relativebenefits of power provision for the projectsincluded in the ITAFE matrix are designedto measure the sustainability, scalability andreliability of the power sources, or combinationof power sources used by different initiatives.Investigation of how different projects havetackled each of the criteria described abovereveals a number of key constraints and solu-tions, recurring problems with power provisionand innovative solutions to overcome them.

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ITAFE Matrix

Devising solutions

Overcoming the problems associated with powersupply requires the development of two main

strategies, diversification and innovation. These

are preferably built in to the design of the project

and are in place at its start-up. However, a num-

ber of examples have also incorporated alterna-

tive power solutions once the project is underway

in an attempt to overcome the constraints which

have become evident.

E-choupal, India6

The e-Choupal internet kiosks developed by ITCin India would be one such example of a projectforced to adapt to an initial failure to guaranteepower supply. Faced with frequent power out-ages, in a country where only 56% of homeshave access to electricity7, ITC, an Indian privatecompany, looked first to a battery-poweredUPS (Unlimited Power Supply) back-up solution.However, this remained problematic as batterycharging was still reliant on line power, and thecompany has therefore moved towards a diversesolution using solar-powered in conjunction withline power.

n-Logue, India8

A similarly diverse solution was devised byn-Logue, whose kiosks provide; a 16-hour back-

up for telephone equipment, four-hour back-upfor computers, and solar-powered wall-sets withbattery stand-by systems in order to cover inter-mittency issues in electrified areas. In addition,kiosks set-up in areas off the electricity grid areprovided with a petrol-start kerosene-run 400VAgenerator. However, whilst overcoming the prob-lem of lack of infrastructure, such generatorscost USD$213 to buy and run at a USD$0.10per hour greater cost than electricity. The realityof providing off-the-grid power solutions is thatthey are often less cost-effective. However, then-Logue case shows, and most initiatives wouldconcur, that a marginal increase in operatingcosts can be justified given that power is criticalfor ICT and the alternative, to extend mains infra-structure, is both more costly and complex.

Freeplay Radio Foundation, Africa9

The second main strategy for overcomingpower-supply constraints would be to design theproject from the outset without a reliance on linepower and infrastructure. One of the best exam-ples of this approach is that of the FreeplayRadio Foundation, whose radios are human-powered through wind-up technology whichrequires no infrastructure to be in place. Theradios can also be powered either by solar-

energy or batteries, but by using wind-up theyare maximize accessibility in remote areas andprovide a mobile solution. Wind-up technology isunder utilized in ICT4D projects but this is linkedto the major constraint discussed above that it isless suitable for hardware which requires largevolumes or constant supplies of power.

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6 World Resources institute - Digital Dividend, Michigan Business School http://www.digitaldividend.org/pdf/echoupal_case.pdf August 2003http://www.unitar.org/hiroshima/ief04/Case%20study/eChoupalYoon.pdfC.K.Prahalad (2004) The Fortune at the Bottom of the Pyramid, Wharton School of Publishing

7 According to the 2001 census

8 July 2001 World Resources Institute http://www.digitaldividend.org/pdf/nlogue.pdf, http://www.n-logue.com/M.L. Best & C.M. Maclay. Community Internet Access in Rural Areas: Solving the Economic Sustainability Puzzle. The Global Information Technology Report2001-2002:Readiness for the Networked World. Oxford University Press. 2002.R. Kumar, A. Jhunjhunwala. Taking Internet to Village: A Case Study of Project at Madurai Region. MIT. 2002.C. Blattman, R. Jensen, R. Roman. Assessing the Need and Potential of Community Networking for Developing Countries: A Case Study from India. 2002.

9 http://www.freeplayfoundation.org/

Criteria Score

Fit to infrastructure 4

Affordability 4

Reliability 4

Efficiency 4

Criteria Score


Affordability 3

Reliability 5

Efficiency 4

Criteria Score


Affordability 5

Reliability 4

Efficiency 4


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ITAFE Matrix

Jhai Foundation, Laos10

Cases of complete reliance on solar, wind orother renewable sources are rare. More usualwould be the Jhai Foundation, which developedboth an innovative and diverse power solution for

low-energy PCs in remote Laotian villages with-out electricity. The Jhai PC runs on less than 20watts in normal use and less than 70 watts whenprinting and is powered by bicycle (foot) crankgenerators. Solar-powered wireless relay pointsare located on hills close to the village andservers located 20km from the village by roadcontinue to be powered by grid electricity. Theentire solution therefore provides for a reliable,renewable and extremely cheap source of powerin remote areas whilst utilizing mains grid elec-tricity where it is available and where, runningthe server, it is of greatest value.

Key lessons

The most important lesson which emerges fromstudying power usage across ICT projects in theITAFE framework is the importance of flexibility,sustainability and cost-effectiveness. In combina-tion, these elements determine whether thepower source chosen for an ICT initiative isfit-to-purpose for the project in hand.

Projects which provide innovative sources ofpower to areas with poorly developed or non-existent infrastructure may therefore often rely onrenewable sources of energy but provide two orthree alternatives as back-up to the main sourceof power. In some cases this source may bemarginally more expensive than mains electricitybut if it extends the reach of a project it is judgedworth the additional investment.

In many cases, however, such provisions are notbuilt into the initial design or development of

ICT4D initiatives and if they are not added in later

have the potential to impact upon the sustain-ability of an initiative. In many cases, using

renewable sources is a more feasible solution toguaranteeing power supplies for ICT4D, as wellas promoting environmental sustainability in thelong run.

The final key lesson with regards power is thatof cost-effectiveness. Affordability serves as aconstraint for projects like the B2B Commerceinitiative in the Philippines where electricity con-nection rates are relatively high in comparisonto most developing countries. Equally, a projectsuch as the Equal Access Foundation whoseradios require 10 AA size batteries in order tofunction, suffer from a constraint in terms ofcost, access, flexibility and sustainability. Findinga solution which meets initiatives power needswithout raising costs beyond the means of themajority of consumers is vital.

Hardware

Introduction

Hardware forms another key infrastructural

element of the ITAFE framework which mustbe considered closely in order to developa successful ICT4D initiative. The chosenhardware must be fit-to-purpose not onlyin its ability to run the relevant software andapplications but also its compatibility with aninitiatives power and connectivity capabilities.ICT4D initiatives tend to use or adapt existinghardware or develop new hardware for theirpurposes and each approach attractsdifferent costs and complexities.

Types of hardware

The types of hardware used by ICT initiativestend to be generic and based upon handheld,mobile or static devices available on the market,primarily because of the costs associated withdeveloping new hardware in relation to the bene-fits gained. Each initiative will, however, selectthe hardware used according to the needs of thevertical in which the initiative operates and thesuitability of the respective hardware to thatinitiative. Few initiatives included in the ITAFE

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10 http://www.jhai.org

Criteria Score


Affordability 4

Reliability 3

Efficiency 4


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ITAFE Matrix

matrix have undertaken the expense of develop-ing new hardware for their purposes, with the

majority choosing instead either to use or adaptexisting hardware. Focus thus far has tended tobe on PCs, PDAs, mobile and land phones asthe main hardware for projects with supportinghardware such as satellites, solar panels andwallsets used for connectivity. As with theoptions for power supply, the list of hardwaredescribed below is not exhaustive but a repre-sentation of the individual types and combina-tions which tend to be favored in ICT4D.

Mobile and static phones

One of the simplest and most effective solutionsharnessed by ICT initiatives are mobile and land-line phones. Globally there are now over 1.2 mil-lion main telephone lines and 1.4 million mobilecellular subscribers11. Public and personally-owned land-lines phones are often part of theexisting infrastructure and are well understood byusers. In many developing countries, the growthof mobile phones in the last five years has beenexponential and handsets can now be obtainedat relatively low-cost12. Mobile phones offer aparticular benefit to ICT initiatives in the form

of Short Message Services (SMS) which canprovide information and facilitate communicationat very low cost to both the service providerand recipient.

Despite growing uptake, mobiles remain particu-larly scarce in remote or poor communities. Insome cases this fact may increase their com-modity value and make them extremely vulnera-ble to theft. However, in many cases sharedusage models are applied which are reliant onsocietal interconnectedness and interdepend-

ence and mean that one phone can providebenefits to whole groups within a community.Shared usage models using both static andmobile phones can be used to promote entre-preneurship and keep expenditure on hardwarefor ICT initiatives to a minimum.

Handheld Devices

Handheld devices offer a mobile solutionwhich provides the same basic connectivity

as mobiles but with a more sophisticated userinterface and information-rich software. They can

therefore be used for projects as varied as pro-viding IT support to operating as a diagnostictool between nursing staff in remote villages anddoctors in health-clinics. Significant advance-ments over the past ten years in the develop-ment of PDAs and handheld devices have alsolowered their price, making them more affordablefor many individuals. Their cost remains a con-straint however as do the languages and set-tings to which they are predominantly configuredand which exclude users who are either illiterateor do not speak internationally-used languages.

PCs

The PC remains one of the most significantpieces of hardware used by ICT initiativesbecause, where the correct connectivity is also inplace, it offers the simplest method of accessinga wealth of information through the web andoffering multiple users access to transferable ITskills. In this respect, PCs have been of particularvalue to educational establishments, whoseequipment in turn is often utilized to promote theuse of ICT within the broader community. As withhandhelds, constraints exist for illiterate or local

language users although these can be overcomeif the relevant local language and graphic soft-ware is accessible and affordable.

However, levels of PC ownership in thedeveloping world remain low. Globallyonly 650 million people have PCs13. In thedeveloping world, figures average at about1/100 people in developing countries but canbe as high as 8/100 in Argentina or as low as0.18/100 in Burundi14. Basing ICT4D initiativeson PC usage therefore requires that the hard-

ware is sourced imaginatively, for example therecycling of computers from the developedworld, and that their value and usage ismaximized across the community includingschemes for ICT capacity-building.

Kiosks and Telecentres

For a number of initiatives the benefits of the PChave been expanded by shared-usage models

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11 Source: 2003 forecast, International Telecommunications Union available online

12 In countries like Kenya the exponential growth in mobile phone ownership over the last 10 years, from close to 0 per 1000 people in 1996 to 19 per 1000in 2001 (World Bank factsheet, 2003), a total of 200,000 subscribers to in 1999 to 2m in 2004 (Safaricom and Kencell data) means that ownership ofmobile phones now outstrips landlines by 2 to 1.

13 Source: 2003 forecast International Telecommunication Union (ITU) available online at www.itu.org

14 Source: 2003 figures, ITU factsheet, November 2004 available online.


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ITAFE Matrix

such as telecentres and kiosks. In some cases,these models are little more than a group

of PCs, servers, printers etc which can beaccessed by multiple users over a periodof time but which provide the benefit of anindividual log-in that allows users to maintaintheir own email accounts and store files. Inmore sophisticated cases, such as the DrumNetkiosks in Kenya, a simplified GUI is specificallydeveloped for the initiative which enables accessto a kiosk for illiterate and local language users.

Radio

Another shared usage model, albeit one whichhas been in existence far longer than telecentresand kiosks, is the radio. It operates predomi-nantly self-sufficient of software and applicationsand, whilst extremely simple and prevalent in thedeveloped world, can provide immediate accessto news and education for many people living inextremely remote areas of the developing worldwho have no alternative methods of accessingsuch information.

Future options

The future for hardware in the area of ICT4D isclosely linked to ongoing developments in the

wider world of technology. Developing worldconsumers want the same solutions as devel-oped world consumers but in many cases havefar more to gain from accessing informationavailable on the internet and from developingIT skills. The continued development of thinclient shared-usage models, smart mobiles,tablet PCs and more advanced mobile phonesolutions and a concomitant decrease in prices,will all enable ICT initiatives to take advantageof better, more affordable and more efficienttechnology as it emerges. HP, for example,

has developed the 441 PC that can be set-upin schools or libraries, which connects four key-boards and four screens through one PC sothat multiple users can access the Net or sende-mail at the same time15.

More advanced mobile phone hardware alsooffers a number of new opportunities for ICTinitiatives in terms of the potential to improveservice, content provision and reach. One suchexample would be the possibilities which GPRS,General Packet Radio Service, phones offer inthe provision of informational services as theybecome more readily available in developingcountries. GPRS is a non-voice value-added

service that allows information to be sent andreceived across a mobile telephone network,

supplementing todays Circuit Switched Dataand SMS services. GPRS has a considerableimpact on the speed and efficiency at whichinformation can be transmitted between phones,bringing down the cost of internet connectivityvia mobiles. It would allow initiatives to providegraphic texts for illiterate users and offer consid-erable scope for services such as automationand money transfer which would potentially bevery valuable to remote communities. At present,however, GPRS phones are either too expensiveor simply unavailable in developing worldmarkets.

Beyond GPRS, the next step which willexpand opportunities for ICT4D initiativeswill be the enablement of wireless solutionsthrough 3G phones. As 3G licenses begin to begranted in some developing countries, wirelesssolutions will spread accordingly. Asia, for exam-ple, now has 30 million PCs compared with 200million cell phone users who, as of 2004 will beable to purchase 3G phones capable of handlinge-mail and Web surfing16. Such developmentschange the relative benefits of choosing a partic-

ular hardware option for an ICT initiative. Takingadvantage of these developments will requirecombining ICT initiatives in the developingworld with the creation of new, more advancedsolutions for developed world consumers,rather than viewing hardware requirements forICT4D initiatives as existing separately from theconsumer-driven developed world.

Criteria for assessing hardware

Despite advances in the possibilities whichhardware opportunities offer, the central criterionwhich applies to the choice of hardware chosencontinues to be that it is fit-to-purpose. As akey element of the infrastructure of ICT initiatives,the hardware used is often predetermined bythe projects purpose. In addition to this it mustalso be affordable, compatible with the existingor proposed infrastructure, usable, reliable,efficient and secure.

Affordability

One of the key elements for judging the successof the hardware used by ICT initiatives is afford-ability. Hardware is not only a key element of the

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15 Business Week Techs Future, September 27, 2004, www.businessweek.com/magazine/content/04_39/b3901013.htm

16 ibid


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set-up costs of such initiatives but will determinethe ongoing maintenance costs and the likely

cost of training and support. For this reason,it must be fit-to-purpose and provide a flexiblesolution without being overly complex. Solutionswhich can rely on existing landline phones forexample should do so in order to avoid outlay onunnecessary hardware and maintenance costs.In contrast, it will become more cost-effective touse hardware such as PDAs as prices fall andavailability increases and this fact should beexploited as far as possible. Ultimately, the set-up and maintenance costs of an initiatives hard-ware will have a vital impact on its sustainabilityand scalability.

Infrastructure requirements

As discussed in detail in the section on power,another key element in assessing the success ofthe hardware used by ICT initiatives is to under-stand the compatibility between the chosendevice and the various infrastructural elementsrequired to make it function to its fullest capabili-ties. Hardware must, for example, be able to runusing the available power supply and, whereconnectivity is required, be compatible with thesolutions available. It must be suitable not only

for the existing infrastructure but given futuretrends in power supplies and connectivity.

Usability

The concept of usability extends from compati-bility with existing infrastructure to the questionof ease-of-use. Take-up rates on hardware, andits likely adoption and local buy-in will be closelylinked to how usable the system is in terms ofthe technical skills and the level and provisionof training required to operate it, as well asits visual appeal and the possibility of shared

usage. Usability is a key area where an initiativestechnological infrastructure links closely withhuman capacity development in the form oftraining and support to ensure the successof an ICT initiative.

Reliability

Usability is also linked in to the reliability ofequipment. The requirement for maintenanceand repairs is a key element for considerationwhen designing an ICT initiative around a hard-ware solution. Equipment which is very difficultto repair and maintain can be next to uselessin remote areas whereas equipment whichcan easily be supported by local people with a

reasonable level of training offers opportunitiesfor existing projects and for ongoing IT capacity

development. Equally important is the availabilityof spares and the supply chain for equipment.If feasible, the use of local suppliers reduces thelikelihood that hardware will fall into disrepair andalso increases the benefits received by the localcommunity from an ICT initiative.

Efficiency and environmental impact

In order to further ensure that ICT initiativesbenefit the local and wider communities, theuse of efficient, environmentally-sound hardwareis also an important consideration. For mostICT initiatives there is scope to use hardwaredesigned either with reduced power require-ments, compatible with renewable sources ofenergy or which can be recycled or disposedof responsibly at the end of its lifespan.

Security and ongoing development

A final consideration when assessing ICT4D ini-tiatives is the likelihood of misappropriation ofhardware or eclipse by new technology. Securityrequirements may be high in models such asshared-usage telecentres, which local businesspeople are reliant on to run their enterprises.

Equally, where disease surveillance or other keyhealth information is being relayed the security ofthe data is a key element in assessing the relia-bility of the solution. The risk of eclipse by newtechnology may, in contrast be much harder toaddress. Whilst irrelevant in contexts where asimple hardware solution forms the basis of aninitiative and meets the requirements adequately,it becomes more of an issue where solutions arebased on high-technology hardware at risk ofquickly becoming obsolete and representing ahigh cost to benefit solution for an ICT initiative.

Devising solutions

Finding the best-fit hardware for an initiativewhich meets the other criteria listed aboveresults, in practice, most frequently in solutionsbased on the use or adaptation of existinghardware. In the majority of cases, it is morecost-effective for technology producers, whetherbased in developing or developed countries,to bear the cost of developing new hardware,whilst ICT initiative focus on using that hardwarecreatively and maximizing its potential.

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Uconnect, Uganda17 and CDI, Brazil18

The benefits of using existing hardware are evi-dent in a number of projects akin to Uconnect inUganda or to CDI in Brazil. Both initiatives havereused computers discarded by developed

countries, corporations etc, recycled them andadapted them for use in schools and by localbusiness people. The majority of the costsassociated with this process are in the shippingbut both initiatives have set up sponsors of theprogram who enable these costs to be signifi-cantly reduced. The actual recycling of the com-puters is low cost and can be kept low if licenseagreements with software companies can bereached.

Bridgeit/text2teach, Philippines19

The imaginative combination of a number ofdifferent forms of existing hardware can alsoproduce innovative results for ICT initiatives.The Bridgeit/text2teach project uses satellites,mobile phones, videos and TVs to transmiteducational videos from Pearson to schools inthe Philippines. The hardware itself is usedas designed for the commercial market but

it is the use to which the hardware is put,in combination with the connectivity solution,

which is innovative.

Voxiva Alert, Peru20

Adapting existing hardware can also havesignificant results. The Voxiva Alert initiativein Peru uses landlines but has adapted themto create a voicemail and reporting system.Users have individual, virtual voice accountswhich are easy-to-access and allow themto make reports and exchange peer-to-peerinformation. The initiative is differentiatedby its creative use of hardware that is simple,widespread and easy-to-use making theresultant solution an immediate successboth in Peru and globally.

Jhai Foundation, Laos21

and Freeplay Foundation, Africa22

However, overcoming more significant con-straints such as climatic extremes or remotelocations can require a solution based aroundthe development of new hardware. The JhaiPC, developed in the US for use in Laos,

26


Criteria Score

Affordability 4

Compatibility with infrastructure 5

Reliability 5

Usability 5

Criteria Score

Affordability 3


Reliability 5

Usability 5

Criteria Score

Affordability 5


Reliability 5

Usability 5

Criteria Score

Affordability 4


Reliability 5

Usability 5

17 http://www.uconnect.org/

18 Info dev Annual report 2003 http://www.infodev.org/library/AR/2003/annual03pt1.pdf

19 http://www.unescobkk.org/education/ict/v2/detail.asp?id=11184www.ayalafoundation.org/news.asphttp://www.iyfnet.org/document.cfm/39/634http://press.nokia.com/PR/200406/950416_5.html

20 Michigan Business School - December 2003 http://www.bus.umich.edu/BottomOfThePyramid/Voxiva.pdfInfoDev 2003http://www.sustainableicts.org/infodev/Voxiva.pdfC.K.Prahalad (2004) The Fortune at the Bottom of the Pyramid, Wharton School of Publishing

21 http://www.jhai.org

22 http://www.freeplayfoundation.org


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ITAFE Matrix

was specifically designed to overcome hightemperatures, dust and humidity. Similarly the

Freeplay Foundations Lifeline radio was specifi-cally designed for use in tough conditions and torequire limited maintenance. With this aim, andease of use, in mind, it features an aerial which isreplaceable with a simple piece of wire if broken,a rainbow-shaped dial and easy-to-read featuresand can be specifically built to meet customerneeds.

Simputer, India23

Not all developments of new technologiesserve their purpose as efficiently as the twoexamples above however. The Simputer,developed in India, exemplifies the dangersof over-engineering a solution, and viewinga development initiative in isolation from thewider market, when existing hardware couldhave been used with the same result. Althoughthe Simputer is more powerful than a PDA andhas SmartCard facilities which enable shared-usage, it is not sufficiently differentiated topersuade customers that it is worth itscurrent price of four times that of a PDA.Its main feature is local language software andgraphic software for illiterate users which couldbe extremely useful in a development context.To date, however, the company behind theSimputer has been unwilling to separate hard-

ware and software and as a consequence,uptake of the product has been limited.

Key lessons

Hardware usage in the examples researchedto develop the ITAFE matrix indicate that theequipment required for many ITAFE initiativesis predominantly based on the use or adaptationof existing technologies, including the recyclingof equipment. Only in a few cases, particularly

when trying to reach more remote areas, is there

benefit in significant investment in the develop-ment of new technologies.

One of the reasons to support the use oradaptation of existing technologies is the factthat set-up and maintenance costs for hard-ware can constitute a significant constrainton ICT initiatives. This constraint is more easilyovercome where projects are sponsored bycorporations who provide the equipment, asmight be the case for the e-Choupal kiosksor for Grameen Phones but is more complicatedfor smaller scale projects with lower budgetswho may more efficiently rely on using hardwarealready available in the target market. Otherwisethe constraint may be two-fold both in terms ofa lack of availability of equipment in the localeand the cost of purchase and/or shipmentfrom another location. Once the equipment hasreached the initiative in contrast, the emphasismust be on reducing constraints linked to itsusage in terms of connectivity, the applicationsand software it runs, how it is powered andhow users are trained and supported.

Connectivity

Introduction

Connectivity forms another key element of thetechnological infrastructure on the supply sideof the ITAFE matrix. Reliable, sustainable andcost-effective connectivity, whether that be tothe Internet, landline or mobile phone networks,is essential for the majority of ICT initiatives.However developing countries, particularlyremote areas, often lack the infrastructure toprovide cellular networks or internet access in

addition to facing regulatory constraints aroundthe licensing of networks and access to compet-itive connectivity options. In a global populationof 6.3bn there were only 1.2 million main lines inuse in 2003 and 650 million Internet users24. Inthe developing world, these users are concen-trated in urban areas where the infrastructure isin place to provide access and are most likelyfound amongst a social class who are able toafford the hardware and the cost of a monthlysubscription required to get connected. In orderto broaden reach across developing countriesand into poorer rural areas and informal settle-

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23 http://www.amidasimputer.com/media/http://www.simputer.org

24 Source: 2003 forecast, International Telecommunications Union

Criteria Score

Affordability 2


Reliability 5

Usability 4


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ITAFE Matrix

ments, ICT4D initiatives therefore need to focusas much as possible on developing or using

imaginatively existing infrastructure or technolo-gies which overcome geographical, socio-eco-nomic and regulatory constraints to connectivity.

Connectivity options

Connectivity options for ICT initiatives can bedivided broadly into those reliant on traditionalwire and cellular networks and those reliant onsatellite technology. In some cases the mostsuccessful projects are those that use a combi-nation of a number of sources.

Wire (Public Switched Telephone Network)/

Fibre optic solutions

Wire and fibre optic technologies are traditionalsources on which the majority of landline tele-phone networks in developed and developingcountries are based. Teledensity, as the totalnumber of fixed lines per 100 of the population isreferred to, is growing in the developing world25

but often today at a slower rate than the growthof mobile subscribers for example. Wire lines areoften controlled by the government and a failure

to deregulate acts as a constraint for many initia-tives as do the physical limitations placed by wireand fibre optic networks which restrict access tomore remote areas. The combination of theseconstraints means that many ICT initiatives seekalternative connectivity solutions which enablegreater flexibility, and speed and volume oftraffic.

Cellular/WLL (Wireless Local Loops)

A more accessible connectivity solution for manyremote areas is cellular or wireless local loop

systems, which also offer faster connectivity at acheaper price. Wireless technology provides thebasis for mobile phones across both developedand developing countries and both extensivereach and reduced dependency upon govern-ment-sponsored access to traditional networks.Most importantly cellular networks reducedependency upon physical infrastructure whichis good news for remote and poorly served areasthat many ICT initiatives aim to reach.

Satellite/ VSAT (Very Small

Aperture Terminal)

The most flexible connectivity solution currently

available is based on satellite technology. In anumber of initiatives this provides remote areas

with the capability to connect with and distributeinformation via satellite from places as far awayas the US. Satellite technology also enablesconnection to radio stations and in somecases the downloading of digital information.The scope of opportunities which satelliteconnectivity of

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