In a recent survey report by World Telecom Lab, WTL, into rural connectivity and how it can be funded, it was revealed that in many countries, Universal Service Funds have been earmarked as a source of investment that can enable connectivity to be extended beyond the reach of traditional network deployments.
Perhaps unsurprisingly, our respondents are generally supportive of such initiatives, but of course, it’s how this can actually be achieved in practice that matters.
According to the report, 86 percent of people who completed the survey felt strongly that a combination of operators, NGOs and Government Organisations is required in order to unlock investment. “This implies that connecting the unconnected requires a coalition, a collaborative approach between all relevant stakeholders, including vendors who can offer technology to deliver the connectivity required”.
Changing nature of required connectivity
The report states further that voice remains in huge demand but, increasingly, people are recognising the fundamental role that data has to play. “It’s no longer sufficient to merely plan to introduce voice connectivity; data is now a key requirement. While we note that the majority of projects with which our subjects have been involved have been and are for voice services, a growing number are for extending data connectivity”.
The survey report also provides further evidence that the growing need for both voice and data services is now recognised, and there’s the anticipation that demand for data will soon surpass that of voice. “When asked if new services should be voice oriented or include both voice and data, our data shows that the combination of voice and data was 450 percent more popular as an option”.
“This is clear. People recognise the advantages afforded by data services, and the availability of high-quality VoIP means that perhaps it’s time to end the conceptual separation. It seems to be a hangover from legacy approaches that are no longer relevant. Data gives you voice as well as much more besides, and it is clear that our subject group recognises this”.
Everyone has to be involved
“We know what is required (voice and data, though perhaps more accurately data to service both needs), but how can this be delivered? Here the answers are less clear. Of those that expressed an opinion, 46 percent believe that such infrastructure should be 100 percent funded from USFs, while 54 percent believe it should be a combination of sources, USF plus Government funds, or USF and private sector investment, for example”.
“That suggests that USFs should not be seen as the sole source of funding but rather as a contributor that has the potential to make or break an investment. Matching funding should therefore be sought rather than to imagine that these necessary investments should be dependent on USFs. This is very much in line with our finding that coalitions of partners are important to projects intended to connect the unconnected. If funds need to be mixed, so to do the teams that deliver the resulting solutions. In that respect, there’s something in them for everyone”.
“Of course, the question remains, why are there not more initiatives? Well, we explored this last time but it’s also fair to say that there needs to be more awareness that there are diverse sources of funding that can be brought to bear and that partnerships may well be the key to unlocking them”.
The survey conducted with a mix of stakeholders further reveals that USFs have a strong role to play but it’s equally clear that partnerships are a necessary step to unlocking funding of any kind. “Organisations cannot act alone. They need support and collaboration. The situation on the ground is also evolving rapidly. While voice has long been the priority, demand for data will soon overcome this”.
“What is also clear is that traditional barriers to investment are being eroded. There are now cost-effective solutions that enable data (and voice) to be delivered to even the remotest communities, at a price point that radically changes the economics”.
