ANALYSIS OF PUBLIC PRIVATE INTERPLAY FRAMEWORKS IN THE DEVELOPMENT OF

RURAL TELECOMMUNICATIONS INFRASTRUCTURE

A MULTI-CASE STUDYI D O N G E S I T W I L L I A M S

C M I , A A U P H . D D E F E N S E ( 5 T H O C T O B E R , 2 0 1 5 )

CONTENT

INTRODUCTION

RESEARCH QUESTION

SCOPE OF STUDY

METHODOLOGY

ANALYSIS OF THE FINDINGS

PPI FRAMEWORK DEVELOPMENT

CONCLUSION

INTRODUCTION

Public sector Private sector

SEARCH FOR OR EXPLORE A PUBLIC-PRIVATE INTERPLAY ( PPI ) FRAMEWORK

BROADBAND INTERNET INFRASTRUCTURE

Especially in developing countries

THE CORE ASSIGNMENT

RURAL AREAS

THE PROBLEM

LOW FIXED BROADBAND PENETRATION IN SUB-SAHARAN AFRICA AND GLOBALLY

MODERATE PENETRATION OF MOBILE BROADBAND PENETRATION GLOBALLY AND IN SUB-SAHARAN AFRICA

19% USAGE OF THE INTERNET IN SUB-SAHARAN AFRICA

19% MOBILE BROADBAND INFRASTRUCTURE PENETRATION IN SUB-SAHARAN AFRICA

0.4% PENETRATION OF FIXED-BROADBAND INFRASTRUCTURE PENETRATION IN AFRICA

69% MOBILE TELEPHONY SUBSCRIPTION IN SUB-SAHARAN AFRICA

Source: ITU statshot 2014

THE EXISTENCE OF BROADBAND ACCESS GAPS

TRUE ACCESS GAPS OR SMART SUBSIDY ZONES

THESE GAPS HAMPER THE ATTAINMENT OF UNIVERSAL ACCESS AND SERVICE OF BROADBAND INTERNET SERVICE GOALS IN MOST COUNTRIES

DEVELOPING COUNTRIES AFFECTED MORE

IMPLICATIONS OF THE PROBLEM

PPI CAN BE A NECESSARY TOOL TO FILL THE ACCESS GAPS

Public sector Private sector

THE PROPOSED SOLUTION

Access GapAreas

Universal Access and Service

Cities Rural Areas

Market PPI

Public sector Private sector Universal Access and Service

Has the potential

EXPECTED IMPLICATION OF THE SOLUTION

PUBLIC PRIVATE INTERPLAY IS THE COMBINATION OR LEVERAGING OF PUBLIC AND PRIVATE SECTOR RESOURCES TO DEVELOP BROADBAND INFRASTRUCTURE

Public Sector Resources

Private Sector Resources

Contractual relationships Non-contractual relationships

Partnerships

PPP, PPPP, Joint Ventures etc.

Collaborations Co-orporations

Market reform arrangements

Public sector Private sector

THE PPI CONCEPT

RESEARCH QUESTION

WHAT TYPE OF PUBLIC PRIVATE INTERPLAY WILL ENABLE THE DEVELOPMENT OF BROADBAND INTERNET SERVICE IN RURAL AREAS OF DEVELOPING COUNTRIES?

THE MAIN RESEARCH QUESTION

Public sector Private sector

Narrow the developing country focus

Sub-Saharan Africa

Ghana, Nigeria

2014 StatisticsPopulation: >25 Million citizensTotal Area: 239 460 Square KMGDP: $US 48.14 Billion

6 mobile GSM Network Operators: MTN, GLO, TIGO, Expresso, Vodafone, Airtel

Mobile Cellular penetration: >100%?

Mobile broadband penetration: > 39.3%Fixed broadband penetration:0.3%

2014 StatisticsPopulation: >150 Million citizensTotal Area: 923 768 Square KMGDP: $US 521 Billion

4 mobile GSM network operators: MTN, GLO, Etisalat, Airtel2 active CDMA operators: Visafone, multilinks4 Fixed-wired operators: MTN ,GLO, Ipnx, 21st century2 Fixed-wireless operators: Visafone, multilinks

Mobile Cellular penetration: >91%?

Mobile broadband penetration: > 10.1%Fixed broadband penetration:0% (insignificant)

PROBLEM IN GHANA AND NIGERIA

WHAT FORM OF PPI /PPPS EXISTS IN N IGERIA AND GHANA?

WHAT EXTERNAL INSPIRATIONAL BOTTOM-UP PPP IN IT IATIVES EXISTS?

HOW ARE THESE BOTTOM-UP IN IT IATIVES ORGANIZED AND FINANCED?

HOW CAN THESE PPI IN IT IAT IVES BE APPLICABLE TO GHANA AND NIGERIA?

HOW CAN THESE IDENTIF IED PPI BE ORGANIZED AND FINANCED

SUB-RESEARCH QUESTIONS

SCOPE OF STUDY

2 CASE STUDIES

PRIMARY CASE STUDIES

SECONDARY CASE STUDIES

PRIMARY CASES

o A L M H U LT M U N I C I PA L I T Y B R O A D B A N D I N I T I AT I V E ( S W E D E N )

o H A L L A R Y D B R O A D B A N D C O O P ( S W E D E N )

o D J U R S L A N D S N E T ( S W E D E N )

o M A G N O L I A R O A D I N T E R N E T C O O P ( U S A )

o D H A R A M S A L A W I R E L E S S N E T W O R K ( O W N E D B Y A I R J A L D I I N D I A )

o G H A N A W I R E L E S S P R O J E C T ( G H A N A )

o J O H A N N E S B U R G W I R E L E S S U S E R G R O U P ( S O U T H A F R I C A )

SECONDARY CASES

o U N I V E R S A L S E R V I C E P R O V I S I O N F U N D ( U S P F )

o G H A N A I N V E S T M E N T F U N D F O R E L E C T R O N I C C O M M U N I C AT I O N S ( G I F E C )

SCOPE OF STUDY

METHODOLOGY

INTERPRETIV ISM/CONSTRUCTIV ISM

MULTIPLE CASE STUDY

PRIMARY CASES INVESTIGATED USING ACTOR NETWORK THEORY AND GROUNDED THEORY

SECONDARY CASES INVESTIGATED USING THE STAKEHOLDER THEORY

METHODOLOGY

ANALYSIS AND FINDING

FINDINGS FROM PRIMARY CASE STUDY

ACTOR NETWORK THEORY

o T H E A C T O R S R E L E VA N T I N E A C H C A S E

o H O W T H E Y I N T E R A C T E D W I T H E A C H O T H E R

o P P I A R R A N G E M E N T S I D E N T I F I E D I N T H E P R I M A R Y C A S E S

o H O W T H E P R I M A R Y C A S E G R O U P S W E R E O R G A N I Z E D

o T H E F I N A N C I A L A R R A N G E M E N T S A D O P T E D I N T H E P R I M A R Y C A S E S

o I T P R O V I D E D I N S P I R AT I O N F O R T H E F I N A L P P I M O D E L

o P E O P L E O W N E D I N F R A S T R U C T U R E I S P O S S I B L E

GROUNDED THEORY (STRAUSS AND CORBIN (1998) ) TRADIT ION

o O P E N C O D I N G

o A X I A L C O D I N G

o S E L E C T I V E C O D I N G

o O P E N C O D I N G F O R E A C H O F T H E 7 P R I M A R Y C A S E S ( 7 5 6 C O D E S )

o A X I A L C O D I N G F O R E A C H O F T H E 7 P R I M A R Y C A S E S ( 1 7 7 C AT E G O R I E S )

o S E L E C T I V E C O D I N G D O N E F O R E A C H O F T H E 7 C A S E S

o C A S E S G R O U P E D U N D E R D E V E L O P E D C O U N T R Y, D E V E L O P I N G C O U N T R Y, A N D P U B L I C S E C T O R C O N T E X T

o C R O S S C A S E C O D I N G F O R P R O C E S S W A S C A R R I E D O U T

FINDINGS FROM PRIMARY CASE STUDY

*

DEVELOPED COUNTRY MODELSVital Resources

Perceived Usefulness of the Technology

Deployment Possibilities

Trial/Mini-Implementation Mobilization/Union Formation Implementation

Mobilization/Union Formation Implementation

Vital Resources

Perceived Usefulness of the Technology

Deployment Possibilities

Trial/Mini-ImplementationMobilization/Union Formation Implementation

Vital Resources

Perceived Usefulness of the Technology

Deployment Possibilities

T H E R E W E R E M A J O R T E S T S A S W E L L A S L O T O F M I N O R T E S T S

Vital Resources

Usefulness of Technology

Usefulness of Services

Accepted User Need

Intention to deploy Trial/mini-implementation Mobilization of Critical mass Implementation

DEVELOPING COUNTRY MODELSVital Resources

Usefulness of Technology

Usefulness of Services

Accepted User Need

Intention to deploy Trial/mini-implementation

Mobilization of Critical mass

Organization and Implementation on a large scale

Successful trial

Critical mass achieved

Failed trial

Abandon idea

Retrial

Retrial failure

Retrial success

Critical mass not achieved

Search for more potential users

PUBLIC SECTOR MODEL

Municipality planning Enrolment of partners

Municipality decision

Coop decision to partner municipality

Private sector desire to invest

Infrastructure Development

Municipality planning Enrolment of partners

Municipality Decision

Identification of municipality partners

Infrastructure Development

FINDINGS FROM SECONDARY CASE STUDY

S TA K E H O L D E R T H E O RY S A L I E N C E ( M I T C H E L L , A G L E A N D W O O D ( 1 9 9 7 )

Stakeholder Attributes

Type of Stakeholder

Definitive Expectant Latent

High Salience Medium Salience - Pay attention to Low Salience - Ignore

Dormant , Demanding, Discretionary Dangerous , Dependent, Dominant

U S P F ( N I G E R I A ) A N D G I F E C (G H A N A ) C O L L A B O R AT E W I T H C O MM U N I T I E S ( V I L L A G E S T R U C T U R E ) , I D A S , I G O S A N D N G O S

T H E C O MM U N I T I E S A R E D E F I N I T E S TA K E H O L DE R S I N B O T H C O U N T R I E S

N G O S , I D A S A ND I G O S A R E D E P E N D E NT S TA K E H O L D E R S I N N I G E R I A

N G O S A N D I D A S A R E D O MI N A N T S TA K E H O L D E R S I N G H A N A

N G O S , I D A S A ND I G O S A R E T H E R E F O R E E X P E CTA N T S TA K E H O L D E R S TO T H E I R R E S P E C T I V E U N I V E RS A L I T Y F U ND S

A P P I F R A ME W O R K B E T W E E N C O M MU N I T I E S , N G O S , U N I V E R S A L I T Y F U N D S W I L L W O RK

A C TO R C H A R A C T E R I S T I C S I N P R I MA RY C A S E A L S O E X I S T I N T H E S E C O N D A RY C A S E S

U S P F A N D G I F E C W E RE N O T AV E R S E TO P P I / P P P S

PPI FRAMEWORKS DEVELOPMENT

P O S S I B L E P E O P L E G R O U P S I D E N T I F I E D I N G H A N A A N D N I G E RI A

C O MM U N I T I E S , S O CI A L E N T E R P R I S E , N G O S , B R O A D B A N D C O O P,

I D E N T I F I E D A C TO R S , S I M I L A R TO T H AT O F P R I M A RY C A S E S

P O S S I B L E P U B L I C O R G A N I Z AT I O NS I D E N T I F I E D I N G HA N A A N D N I G E R I A (U NI V E R S A L I T Y F UN D S )

P P I F U N D I N G A N D O R G A N I Z AT I O N I N S P I R AT I O N G AT H E RE D F R O M P R I MA RY C A S E S T U D Y

P O S S I B I L I T I E S F O R O R G A N I Z I N G P E O P L E I DE N T I F I E D

S T I C K I N G P O I NT – I T S H O U L D B E A P E O P L E - O W N E D I N F RA S T R U C T U R E

POSSIBILITIES FOR A BOTTOM-UP PPI/PPP

  Design Ownership Building Management/Operations

Maintenance Finance

1 Non-profit private (people)

Non-profit private (people)

Non-profit private (people)

Non-profit private (people)

Non-profit private (people)

Non-profit private (people)

2 Public sector (Universality fund,) 

  Private sector

Private sector Private sector Public sector (Universality fund,) 

3           External funding

ORGANIZATION AND THE FINANCING OF THE PPI

INFRASTRUCTURE FINANCING

o E X P E N D I T U R E : T H E N O N - P R O F I T P R I VAT E S E C T O R , P U B L I C S E C T O R , E X T E R N A L F U N D I N G

o L O N G T E R M P E O P L E F I N A N C I N G

o R E V E N U E : “ U S E R PAY ” ( T H I S I S W H E R E T H E M O B I L I Z AT I O N M O D E L S C O M E I N T O P L AY )

IT IS IMPORTANT TO NOTE THAT SOME PUBLIC INSTITUTIONS MAY NOT REQUIRE REPAYMENT AS PART OF THEIR LEGAL OBLIGATION

PROFIT MAKING PRIVATE SECTOR IS H IRED BY THE PEOPLE

INFRASTRUCTURE AFFORDABILITY

BANKABILITY

o E L I M I N AT E D F R O M T H I S F R A M E W O R K

o P R O F I T M A K I N G P R I VAT E S E C T O R , N O T D I R E C T LY I N V O LV E D I N F I N A N C I N G T H E P R O J E C T

REGULATORY RISK

o G H A N A A N D N I G E R I A A R E M A R K E T O R I E N T E D C O U N T R I E S ,

o I N C O U N T R I E S T H AT A R E N O T M A R K E T O R I E N T E D , T H E R E I S T H E N E E D F O R P R O T E C T I O N F R O M N AT I O N A L I Z AT I O N

COMMERCIAL RISK

o I N G H A N A A N D N I G E R I A , T H E U N I V E R S A L I T Y F U N D S W I L L B E A R M O R E O F T H E S U P P LY R I S K S

SUPPLY RISK

o C O S T O F C R E AT I N G AWA R E N E S S

o I N S O M E C A S E S A I D I N F U N D I N G S O M E O F T H E S E B O T T O M - U P I N I T I AT I V E S

DEMAND RISK

o B O R N E B Y T H E P E O P L E A S T H E U S E R PAY M O D E L I S P R O P O S E D

HENCE PEOPLE HAVE TO BE MOBIL IZED USING THE MOBILIZATION MODELS IN THE THESIS

PPI/PPP FRAMEWORK 1

Private Sector (Profit making)

Universality Fund / Public Institution

Private Sector (Non-Profit) – (NGO, Broadband coop, Village, Neighbourhood groups)

o Selection of private sector participant

o Regulation on terms of engagement with civil society

Outsource Infrastructure management and operations

Provide Finance and Regulation

Infrastructure Finance, maintenance & infrastructure financing

Infrastructure owners

MunicipalityPeople/non-profit private

sector

Financing Public entity (eg. universality funds)

Private sector model

PPI/PPP FRAMEWORK 2- MUNICIPALITY MEDIATED MODEL

POSSIBILITY FOR THE ADOPTION OF PPI FRAMEWORK

EXTENSIVE FIBRE OPTIC BACKHAUL DEVELOPMENT

THE POTENTIAL FOR RURAL CONNECTIV ITY

AFFORDABLE LOW COST BROADBAND INFRASTRUCTURE

THE POSSIB IL ITY FOR RURAL DWELLERS TO MOBIL IZE THEMSELVES

THERE IS ROOM FOR PUBLIC ASSISTANCE

THE PROJECT IS ONLY MEANT FOR AREAS WHERE MARKET FORCES MAY NOT CATER FOR ( PATCHES )

IMPLICATIONS OF THE PPI FRAMEWORK

REGULATORY IMPLICATIONS

o I N T E R C O N N E C T I O N T O E X I S T I N G F I B R E N E T W O R K

o TA X AT I O N ,

o I N C E N T I V E S

TECHNICAL IMPLICATIONS

o D E P L O Y M E N T P O S S I B I L I T I E S

o T Y P E O F I N F R A S T R U C T U R E o T R A I N I N G O F P E O P L E

FINANCIAL IMPLICATIONS

o A B U S I N E S S M O D E L N E E D E D O N A C A S E B Y C A S E B A S I S

CONTRIBUTION OF THE THESIS

CONTRIBUTION TO LITERATURE

THE THESIS AGREES WITH o T H E A D O P T I O N O F T H E H Y B R I D A P P R O A C H T O B R O A D B A N D

I N F R A S T R U C T U R E D E V E L O P M E N T ( S A L E M I N K A N D B O S W O R T H , 2 0 1 4 )

o I T C O N C U R S W I T H T H E N E E D F O R A R E G U L AT O R Y A P P R O A C H E M P O W E R I N G C O M M U N I T Y O W N E R S H I P ( K A K E K A S PA N , 2 0 1 4 )

THE THESIS CHALLENGES THE NOTION THAT

o C O O P S H AV E N O E X P E R T I S E T O D E V E L O P B R O A D B A N D I N F R A S T R U C T U R E ( YA R D LY 2 0 1 2 )

o C O O P S L A C K F I N A N C I A L A B I L I T Y T O FA C I L I TAT E B R O A D B A N D N E T W O R K S ( YA R D LY 2 0 1 2 )

o C O O P O W N E R S H I P O F B R O A D B A N D I N F R A S T R U C T U R E I S N O T P O S S I B L E W I T H O U T H Y B R I D O W N E R S H I P ( S A L E M I N K A N D B O S W O R T H , 2 0 1 4 )

LIMITATIONS

FEW CASES

LANGUAGE BARRIER

GREATER EMPHASIS ON BROADBAND INFRASTRUCTURE DELIVERY THAN SERVICE DELIVERY

LIMITATIONS POSED BY DISTANCE

FUTURE WORKS

QUANTITATIVE VALIDATION OF THE IMPLEMENTATION MODELS

THE IMPACT OF TELECENTRES TO ICT IN RURAL AREAS

FIELD TEST OF THE PPI MODEL

CONCLUSION

FACIL ITATING BOTTOM-UP APPROACHES IS POSSIBLE

THE PPI DESIGN SHOULD ASSIGN INFRASTRUCTURE OWNERSHIP TO THE PEOPLE

THE PUBLIC SECTOR OUGHT TO CARRY OUT PROPER RISK ASSESSMENT WHEN DESIGNING THE PPI

UNDERSTANDING USER NEEDS AND THE UNIQUE V ITAL RESOURCES IN THE COMMUNITY IS IMPORTANT

BOTTOM-UP PPI IN IT IATIVES ACTUALLY POSE THE POTENTIAL OF FACILITATING UNIVERSAL SERVICE