Re-inventing Internet Usage Souheil MARINE Business Development Manager, MAI ITU Symposium: African...

Re-inventing Internet UsageRe-inventing Internet Usage

Souheil MARINEBusiness Development Manager, MAI

ITU Symposium: African ICT RoadmapTo achieve NEPAD ObjectivesArusha, April 1st 2003

ITU Symposium: African ICT RoadmapTo achieve NEPAD ObjectivesArusha, April 1st 2003

ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 2 All rights reserved © 2003, Alcatel

Germany

China

Turkey

Morocco

Colombia

Spain

UK

USSweden

Belgium

N.Zeland

Kuwait

0

10

20

30

40

50

60

70

80

0 10 20 30 40

GDP per Capita ('000 US$)Te

led

ensi

ty (

%)

Source: ITU

Developing Country Challenge: Access to Information

> How Teledensity and economic growth are linked together?• A key issue for economic and

social development? • … to be urgently addressed,

especially in rural (isolated) areas?

> What kind of services?• Telephone, Internet, …• Individual or community access• Prerequisites

Tunisia


A real needFrom End-user to Network Infrastructure

More Bandwidth

MultiserviceNetwork

MultiserviceNetwork

Communication•POTS, E.Mail, Chat

Local Information •HealthCare, Food•Administrative

Education•Basic•ICTs

e.Commerce•Neighborhood•International

Better Quality of Service

Cybercenters

Operators

Administrations

EntreprisesTV

Videoconference


How to take up the challenge? •“Dream solution” for Rural Telephony •dedicated subsidies •obligation of services (incumbent operator)

Universal Access:Affordability & Accessibility

Line Cost

ARPU

Low

High

UrbanRural

The famous dilemma!


User Demand is much higher than OfferUser Demand is much higher than Offer

Funding is the cornerstone !Funding is the cornerstone !

Profitability and Sustainability can be provenProfitability and Sustainability can be proven

Demand Solvency Added Revenues

from Internet services

Universal Obligation FundsBridging Digital Divide initiatives

Universal Access Funding


Rural Telecom is not as unprofitable as …it is said !

> Incoming call revenues are not taking into consideration in the business model

> Profitability issue must be reconsidered, taking advantage of potential service Internet revenues

> Population solvency is much better than foreseen• Community Access, Prepaid will improve population solvency• Real population income is much higher than GDP (--> PPP)

Still network development approaches are ….• too much individual access oriented• forgetting Internet opportunities


Internet will remain irrelevant, if ….

...merely duplicating industrialized world usage & applications

Internet Penetration

3 %…?

Scenario 1 : “Niche Market”

Content relevancy...?Bandwidth requirement…?Investment capability…?Market size…?

Worldwide BrowsingTele-medicine & educationGlobal e-Commerce, ….


Funding is the cornerstone!

CAPEX

OPEX

IINNFFRRAASSTTRRUUCCTTUURREESS

FFUUNNDDIINNCCGG

????

Demand solvency

Demand solvency ? ?

Investment Capability?

Investment Capability?


ICT DiffusionCritical Success Factors

Affordability& Accessibility

Initiatives& Policy

Adequacy& Relevancy

Awareness& Expertise

Services

Cost

Governments

Populations


Usage is the Key enabler

A Business oriented approach

Usage Usage

Traffic Traffic

Revenue Revenue

InvestmentInvestmentCapabilityCapability

NetworkNetworkCapacity Capacity

… neither Technology driven … nor

Philanthropic


INTERNET, as Public Utility

INTERNET, as Public Utility

Internet can leapfrog development, if ...

Internet is seen

as a prime Communication Tool

offering useful end-user services

based on local content

via Community Access

3 % ...?

30 %..?

Internet Penetration

Scenario 2 : “Mass Market”

… to Reinvent Internet Usage !… to Reinvent

Internet Usage !


A “virtual” market place

Professional Tool to manage Food price on real time

The cost of the service is quickly paid backby the increase of producers’ margins

Price consultation

by small producers

Internet

WAP platfor

m

Price Web Site

Price collection

on town’s markets

Price consultation

by traders


Leveraging Pediatrician Services

Sick children

for Medical Visit

(100 per month)

Alerts

Weight Data

1500 «subscribed» Children

Internet

Weight Collection

& Alerts


ICT-based Development Model New virtuous circles

Trans parent Market Place

Time &

Expense saving

Job creation

PrivateFunding

Economic Development

PublicFundingGovernance

Education

Healthcare

Rural stability

Social and political Development

Local Development

Distance, Illiteracy,...

Needs for Information

@as most affordable communication

infrastructure

Demand for Telecom Services


From usage to Infrastructure….

Traffic Traffic

Revenues Revenues

NetworkNetworkcapability capability

InvestmentInvestmentpotentialpotential

USAGE USAGE

IINNFFRRAASSTTRRUUCCTTUURREE

… … to demonstrate investment pertinence to demonstrate investment pertinence

Services Services

FinancingFinancing

www.alcatel.com

Thank you for your attention !Thank you for your attention !

Questions ?Questions ?

for any further information, please contact:for any further information, please contact:

[email protected]@alcatel.fr

[email protected]@alcatel.fr

Re-inventing Internet Usage Souheil MARINE Business Development Manager, MAI ITU Symposium: African...

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