ITCN Asia 2014 – 3/4 G Impetus to growth

“This question may only be answered by someone who does NOT agree that YouTube should be opened”, I jokingly challenged the panel of eight high-profile experts sitting on the stage when a young participant at ITCN Asia 2014 (Karachi, 26thAug ’14) stood up and, lamenting the losses to the youth due to YouTube blockage, asked how could it be re-opened. I was moderating at this ICT annual event as we (the newly formed “ICT Forum Pakistan”) were invited to co-organize and co-host this year’s conference.

It is always enlightening to hear reputable professionals at ITCN’s conference track. However for me, it has been a little irksome that the speeches and presentations do not always relate to an overall theme (in fact some are just company sales presentations). Even those that are related to a theme, are not coordinated in any way and therefore there is lack of coherence and repetition. Thus it is normally impossible ‘to take something home’. Organizing this conference provided us an opportunity to try structure it in a way that would take care of the above concerns.

To start with, since 3G and 4G are presently being deployed in the country and it is a good time to talk about it’s growth, we picked up “3G and 4G – Impetus to Growth” as our theme. Then we went on to select speakers from varied backgrounds in order to cover the theme from all angles. Hence we selected an un-biased Senior Professional and high level professionals from Fixed-line Operator, eServices Provider, Equipment Vender, Government, Regulator and two Mobile Operators. Although this is still an incomplete representation of stakeholders, but it did lead to “one of the most interesting sessions of ITCN Asia conferences in years” – according to Dr Khurshid Nizam, President of e-Commerce Gateways (the main organizers).

The first speaker, independent senior professional Mr. Nooruddin Baqai provided a historical perspective, important to learn lessons. Since he used to be in the middle of the action a decade back, he could effectively share the experiences and the results. With the help of statistics he highlighted that direct contribution of ICT sector to the GDP actually reduces once the booms are over and it is the indirect contributions that keep adding to GDP growth. He thus asserted (like several after him) that the focus of the government should not be collection of ICT revenues, rather it should aim to gain through the resultant economic development. He maintained that in order to ensure continued growth and socio-economic benefits to the society, the government has to do the most, in terms of investing in ICT usage and adoption.

As it is the Mobile Operators who are the actual providers of 3G and 4G, there were two speakers from this segment. The first one was Mr Niaz Malik, Chief Corporate Officer of CMPak (Zong), the only operator who obtained 1800 MHz for 4G. After talking about the new services that would now become possible and the resulting benefits, he stressed upon the importance of investment in the eco-system. Interestingly he said that it should be done not just through government’s efforts but also through collaboration among the telcos themselves! The second speaker from the same segment was Mr. Ehtisham Rao, Director B2B Marketing of Mobilink, Pakistan’s largest mobile operator. He talked about the challenge of OTTs (Skype, Viber, Tango, etc.) who operate free of any regulations in the country. He argued that the Telcos need not be vary of the OTTs, rather the two posses complimentary user datasets, which could be one of the grounds for collaboration. He also said that Telcos have a lot more to offer than OTTs, like mWallet, mBanking, M2M, etc; enabling businesses, and therefore the opportunities for Telcos to grow were huge.

Mr Naeem Zamindar (till recently CEO of Wateen Telecom) talked from the perspective of a Fixed Line Operator, who is both a competitor (with its fixed broadband in the last-mile) as well as a facilitator (provider of backbone/backhaul) for wireless broadband. In his short, but full-of-energy talk about the importance of WiFi, he under-scored that 70% to 80% data communication takes place from the office or the home, where WiFi is undisputedly the dominant choice for broadband access. He informed that in China, China Mobile offloads 72% of its mobile data traffic to WiFi. Other than WiFi, he underlined the usefulness of Optic Fiber Cables – not only in the backhaul. He claimed that there is a demand of at least five times more Optic Fibers than the present deployment in Pakistan. He predicted that in one year, when TV cable operators will also start upgrading their networks with fibers, inflection point of broadband growth will be visible in Pakistan.

Mr Salim Rafik, COO of NADRA Technologies Ltd, represented the largest eGovernment service provider in the country. He explained that although with 3G/4G the quality of service to the populace will improve, there would still be huge other challenges. Giving an example he said that content provider is always at a loss to decide which platform he should place his bet on, as in the last decade there have been lots of ups and downs with platforms like Symbian, Black berry, iOS, Android, Windows, etc. Quoting statistics he also lamented the trend that only 16% of users actually pay for the Apps that they use. But thankfully, due to the fast upcoming ‘internet of things’ and the great population bulge of youth in Pakistan, he was upbeat regarding the growth prospects of broadband.

The perspective of equipment suppliers was presented by Mr Ashley Gold, CEO Ericsson Pakistan. Quoting from Ericsson Mobility Report 2014, he too expressed optimism regarding growth prospects of wireless broadband, mainly owing to two factors: The first one is the gigantic potential of all kinds of connected devices – globally estimated to be 50 billion by 2020. And the second one being the extraordinary growth in mobile data traffic over smartphones, which are set to be the main driver leading to a networked society. He recommended that elements of networked society should be part of the ICT Policy.

Government’s perspective was presented by Mr Muddassar Hussain, Member Telecom Ministry of IT, that is ultimately responsible for ensuring that wireless broadband helps meet the government’s socio-economic goals. He elaborated elements out of the new Policy, that the Ministry is presently formulating, and the multiple new challenges that are being faced, when the edge (Apps and Services) has come to dominate the core. He informed that the draft of the policy will be put up for public consultation in a couple of weeks. He assured that the new policy will stress upon measures like putting more reliance on public-private partnerships, making more spectrum available, supporting collaborative eGovernment and remodeling USF and ICT R&D Fund, etc.

The floor was then opened for Q&A which generated a very lively discussion, touching myriad of topics like digital divide, lack of fiber penetration to villages, ICT jobs, entrepreneurship, etc.

Finally Dr Syed Ismail Shah, Chairman PTA wrapped up the conference proceedings. He elaborated the challenges that PTA has to face in performing it’s tasks and shared his ideas as to how PTA intends to remove some of the barriers to growth identified in the presentations. He too advocated that ICT, by itself, should not be considered a big source of revenue generation, rather be used as an enabler for bringing efficiencies in all sectors of the economy. Following his short remarks for each presentation, he assured all of Regulator’s best efforts to give the necessary impetus to growth of wireless broadband.

The overall outcomes were quite expected. Almost all speakers opined that in order to reap enormous benefits of ICTs, the government has to play a more effective role as an enabler and a facilitator, for example by:

  • decreasing it’s reliance on direct revenues from the ICT sector
  • developing eco-system through public-private partnerships, particularly relating to e-services like education, health, governance and agriculture
  • subsidising (through USF) backhaul connectivity to remote corners of the country to deliver eServices to citizens through broadband.
  • becoming the biggest consumer of ICT/broadband itself,
  • releasing a lot more spectrum, at easier terms

The speakers asked the Regulator to keep the lite-touch regulation and take further steps to facilitate deployment of WiFi hotspots and data traffic WiFi off-load by mobile operators.

On the other hand the Operators were asked to collaborate among themselves to strengthen their business cases by infrastructure sharing and by jointly developing applications and services.

(By the way nobody could answer the YouTube question as how to unblock it – except a non-serious suggestion of staging a dharna to get it unblocked!)

At the Exhibition

 

3G and 4G – what a waste…

If you can read Urdu, read the text on the accompanying picture and imagine (in case you can’t read the text, even then imagine!) how would it be if same information is conveyed to the agriculturists using VIDEOS! And imagine if these videos could be seen on cellphone screens of the targeted growers of the targeted area, timed according to relevance and usefulness! Helping the growers and educating them about the latest methods of improving productivity in this manner has the potential of bringing an agricultural revolution in the country! This is the power of wireless broadband – like 3G and 4G!

The accompanying picture is a real-life example where an international donor agency, a provincial government and a cellphone service provider have teamed up to convey important information to peach growers, through SMS. But the text itself acts as a barrier because most farmers are unable to read. Even if they can read, Urdu is not understood in most rural areas. And even if the language is changed to the local one, any text is prone to misinterpretations.On the other hand conveying information with the help of short video clips helps bridge all these issues. Such potential benefits of broadband do not end with agriculture, rather these extend to all vital sectors – e-education, e-health, e-governance, e-commerce, and much more.

In developing countries the greatest impact that broadband makes is in semi-urban and rural areas – in areas where it is difficult to physically deliver pubic services and people have to travel to nearby big cities. Access to e-Services like e-Agriculture not only leads to economic uplift of citizens of those areas, rather it has several side-benefits too, for instance reduction in migration to large cities.

With the handing over of the long awaited licenses for 3G and 4G technologies, wireless broadband is now being rolled out in the country. The handing over of the licenses was a great occasion, although it would not have been such a big deal if the previous administration had not failed – thrice! But now that it has been done (credit to MoIT and PTA) we must remember that if we rest on our laurels, then we are surely wearing those at the wrong place! This is the time to start taking those next steps, so that the new technologies are not just used to download movies and Bollywood songs (although there is nothing wrong with doing that as well) but also to educate and make people more productive. The country as a whole should be able to reap the benefits of an inclusive growth.

Therefore what we require next are those videos that we just mentioned – the “Content” – dubbed in local languages. Such video-clips can be produced either with the help of real actors or with animations (just like those safety videos shown aboard the airliners now-a-days). Content that is meant for every sector of the economy. No doubt that there is a huge amount of very useful content available on the net, but there are several other issues with that. Firstly language would be an issue again, secondly rural folk will find it difficult to search in the vast ocean of internet, and finally (hopefully temporarily) the main source of such content, YouTube, stays blocked in Pakistan!

Sooner than most people think, smartphones are going to be the access devices. Big global players are already working hard to make the smartphones affordable, particularly for the large populations of developing economies. Google announced last month at it’s annual developers conference in San Francisco that it was working on a low-cost smartphone aimed at emerging markets as part of an initiative called ‘Android One’ (http://blogs.wsj.com/indiarealtime/2014/06/26/google-to-help-indian-companies-make-cheap-smartphones/). Earlier, Mozilla announced at the Mobile World Congress in Barcelona, that they will help develop a $25 smartphone, which will start selling by next year in India and Indonesia. According to a June 2014 report by Ericsson, globally smartphones accounted for around 65% of all mobile phones sold in first Quarter of 2014, compared to around 50% during same period last year (http://www.ericsson.com/res/docs/2014/ericsson-mobility-report-june-2014.pdf).

With the passage of time, cellphones will be used less and less for voice and more and more for data communications (it is already true in case of those of us who are active users of broadband via cellphones). Kids of the future will be amazed to know that the cellphones were originally created for voice! International Data Corporation (IDC) (http://www.idc.com/getdoc.jsp?containerId=prUS24314413). Worldwide report shows that already 1.5 times more smartphones are being sold than PCs + Laptops + Tablets combined since 2012. By 2017 this figure will be two-times. According to a Nokia study, in most of the world 30% of the cellphones are now smartphones, which is rapidly increasing. In Pakistan it is around 10%. But that should not be seen as low because in Pakistan we are only in the introductory phase of wireless broadband.

Thus all that spending on providing free laptops and tablets by the federal and provincial governments may be saved! Instead the efforts should focus on creating that all-important, urgently needed, local content, and making it available to the citizens in a way that they do not have to pay for it (already one-of-the-highest taxes on ICTs in the world, is causing enough harm). But unfortunately on the content front, there are no signs of any activity by the government. We, as a nation, are missing out on a unique opportunity to leapfrog and catch up with many of the developing economies who are galloping ahead riding the broadband wave – including our friends in Africa. When I got invited to the pan-Africa ICT4Ag conference in Rwanda late last year (http://www.piftikhar.com/2013/11/my-first-time-in-rwanda-and-ict4ag-conference/) I had the astonishing opportunity to see firsthand the deep and impactful use of ICTs in Agriculture in some of the African countries.

So here is what the federal and provincial governments need to do (with MoIT providing necessary guidance):

  1. Bringing the enormous experience related to Agriculture, Education and Health, etc. available in various ministries, and enormous experience of content creation available in the private sector together, and usefully employing all that to create wonderful content!
  2. Simultaneously using the funds available with USF, helping the telcos speed up roll-out of broadband in non-lucrative areas by investing in two infrastructure components: (a) Optic Fiber Cables to villages, to provide backhaul for wireless broadband, and (b) the last-mile access of wireless broadband for the villagers.

Unless the true potential of wireless broadband is understood, and steps taken to use it – just like several other developing countries are doing – the huge opportunity presented by 3G, 4G, etc. is going to be nothing but a terrible waste…

 

My first time in Liberia

As I write this, I am returning from Monrovia, in Liberia, a country that has a rather interesting history. It was the first republic in Africa, established back in 1847 for the liberated slaves of America (hence the name ‘Liberia’) who were brought and settled here to work on rubber and palm plantations (some kind of innovative colonialism perhaps). But patronage of ex-slaves by the US created a ruling class of its own, who ruled Liberia merrily for more than a century, when finally the original inhabitants of the land rose against them, leading to two messy civil wars, from 1990 to 2003, with a 2-year period of relative calm in-between. Hundreds of thousands lost their lives, before UN intervened and brought in peacekeepers – among them, Pakistani soldiers and military engineers.

Saying hello to a UN peacekeeping soldier from Pakistan in Liberia

It is because of this “US connection” that the Liberian flag resembles the US flag, albeit with only one star, and the Capital Monrovia is named after the fifth US President, James Monroe. Unsurprisingly, the name of the largest mobile phone operator in Liberia is “MTN Lonestar”. Another consequence is that almost everybody speaks English. Not a mixed English, like we in Pakistan, but the accent makes it somewhat challenging to understand sometimes.

Liberia is an emerging but poor country, with rather small middle-class (but yes, they have 4-G!) . As always in the developing world, there are accusations of corruption against the rulers, one does however see a substantial amount of infrastructure development work taking place, mainly with donor money. A lot of it is being carried out by Chinese companies – roads, highways, office buildings, mines. That is why one frequently sees Chinese people in Monrovia. Someone claimed that the Chinese investments in the last fifteen years in Africa exceed what World Bank and others did in the last fifty years (and I used to think we were the only ones benefiting from the Chinese largess).

I was in Liberia for a week on a consulting assignment, as Liberia is in the process of setting up UAF (Universal Access Fund) to be able to serve their rural areas with ICTs. Half of the four million inhabitants of the country live in rural areas (the other half live in Monrovia alone). We were a team of consultants from UK, North America, Pakistan and Liberia, led by David Rogerson of Incyte consulting (www.incyteconsulting.com). I was representing Commonwealth Telecom Organisation (www.cto.int). David Townsend and Will Burnfield of Great Village (www.greatvillage.com) were other colleagues. Our main discussion partner was Liberia Telecommunications Authority (www.LTA.gov.lr), which has a 5-Member Board of Commissioners, including the Chairperson.

Conducting my part of UAF stakeholders workshop in Liberia

The week was a great learning experience for myself (one never stops learning), as I got to talk to various decision-makers in the ICT space – among them the Minister of Telecom, Deputy Minister of Finance, Chairmen Standing Committees on Telecom in the Senate and the House of Representatives, CEOs of the three largest Telecom Operators and several others.

Meeting with the Minister of Telecom and his deputies

LTA Chairperson Ms Angelique Weeks was not only the most important person in our discussions, but also the most lively, full-of-energy. She and her Commissioners had lengthy meetings with us – even after office hours – absorbing and discussing everything that we had to tell and taking quick decisions. She is the first female Telecom Regulator I have come across.

LTA Commissioners (including Chairperson, third from left), the Consultants and others, discussing proposed Regulations with the help of Video Projector, in the office of Chairperson LTA.

The present ruler of Liberia, President Ellen Johnson Sirleaf, also happens to be the first female head of state in Africa. This reminds me of this highly educated Pakistani young lady, Nyda Mukhtar from Islamabad, whom I met there. She is working with Liberian Ministry of Finance on a two-year fellowship. I think it requires a huge amount of courage to live away from home in a country that is still trying to come to terms with the aftermath of long and bloody civil war and where proper security apparatus is not yet in place. It is heartening to see Pakistani girls venturing out like this!

Coming back to my mission, at this point in time they have the Policy and the necessary Parliamentary Act in place, which define the governance structure/framework of UAF. Together with us, now they are working on formulating the Regulations and the necessary documentation for Pilot projects to test the proposed processes. Therefore we engaged with all concerned to incorporate their ideas and address their concerns, in an effort to bring all stakeholders on board. Our endeavor is to implement international best practices, remaining within the promulgated laws and the peculiarities of the land. It is challenging in some respects but offers some great opportunities too. I look forward to returning to Liberia to carry the process forward in another couple of months.

My first time in Rwanda and ICT4Ag Conference

I was in Rwanda (3 – 9 Nov. 2013) on the invitation of CTA (French acronyms for “Technical Center for Agricultural and Rural Cooperation” – www.cta.org) to the 4-day ICT4Ag (ICT for Agriculture) conference to speak on the importance of Universal Service Funds in providing connectivity to rural areas. My presentation (together with two others) was followed by a question-and-answer session in the ballroom of Serena Hotel, the biggest in Kigali (yes, its not only in Islamabad!). All African countries were represented, with experts from several non-African countries too (notably India). In all, more than 300 delegates from 61 countries were there. I was the only one from Pakistan and personally for me it was a great learning experience, like attending a 4-day crash course on ICT4Ag!

Presenting at the ICT4Ag conference in Rwanda (6th Nov. 2013)

I thought it was a huge event for a small country like Rwanda (population 11 mil). But I was astonished to know that just a few days ago there had been an even bigger “Transform Africa Summit” (TAS) with 1,500 delegates, where they resolved to transform Africa using the power of ICTs. TAS was co-chaired by Rwandan president Mr Kagame and Secretary General ITU Dr Toure.

Mr Kagame has been the president of Rwanda since 2000 and although democratically elected, he is somewhat controversial and is known more as a “benevolent dictator”. But I heard only praises for him from Rwandans. Under him the country has grown at an average annual growth rate of 8%. His cabinet-team is known to be very competent. We saw a glimpse of their dedication during the four days, when the Minister of Agriculture and the Minister of IT and Youth, were present for a large part of the time. During her speech at the gala-dinner the Agriculture Minister told us that the IT Minister was originally a software engineer! I think combining Ministries of IT and Youth is also an idea worth following. The two go together!

After my presentation, I had the chance of discussing with Mr Steve Mutabazi, the ‘ICT Strategist’ of Rwanda Development Board, about the recent decision that the entire telecom infrastructure (fiber cables as well as LTE last-mile delivery infrastructure) will now belong to one single state-owned company in partnership with Korea Telecom. Private Sector Service Providers will be able to compete but will be using the same infrastructure. He explained their reasons, that primarily it will prevent duplication of infrastructure and make the operators invest in services. The contract with Korea Telecom for this unique enterprise is for 25 years. It will surely be very interesting to watch it over the years.

Other than ICTs, Education gets a big importance in Rwanda. 17% of their national budget is reserved for Education, which is free for 12 grades, with medium of education being English from 4th grade onwards. As could be seen in this conference Agriculture is also high on the list of priorities. Rwanda is considered a model in how the aid money should be spent for development of people as a whole, rather than a few. Even otherwise, despite construction going on at many places, Kigali looks very clean (eg: I did not see any over-flowing garbage bins). Roads have no potholes – although roads leading to the villages are not metaled. Obviously many more roads still need to be built.

Passing through a village in Rwanda

The ICT4Ag Conference had three parallel streams and the emphasis was more on inter-active discussions and less on power-point slides. Most of the presentations and the following discussions were truly thought provoking. I found the sessions about ICT-based Commodity Exchanges and the likes of “iCow” (SMS based information and education platform), “Esoko” (mAgric platform for tracking and sharing market intelligence) and “Trac FM” (interactive radio talk shows with parallel SMS polls), particularly interesting. There was also a small exhibition going on which showcased several initiatives and ICT4Ag products.  Apart from all that, there were two very interesting items.

The ICT4Ag Conference App for Smartphones

The first one was the very useful ICT4Ag App, for smartphones, which the participants were asked to download. The App provided every piece of information about the conference, continuously updated with any announcements and changes in program etc. And since free WiFi was always available, the App freed us from carrying multiple documents.

 

The second special item was the “Hackathon”, a contest between teams of ICT professionals from various African countries, competing to create the best – and sustainable – Apps for Agriculture.  This had to be done within three days. On the fourth day they had to make presentations about their Apps, including their business models, and answer piercing questions by the judges. The winning team got 3,000 Euros plus another 3,000 promised to cover costs of initial running of their newly developed App in real world.

A team presenting their newly developed App to the 4 Judges and the audience

The 5th day was reserved for field trips, where they proudly showed us ICT4Ag development projects under way. Participants were sent descriptions of nine separate trips in advance so that we could choose what we wanted to see.

Arranging two huge conferences on ICTs within a short period of time clearly shows that leaderships with vision realize the importance of ICTs for development of their nations…

Audience at one of three conference streams