DAYSTARUNIVERSITY SCHOOLOFBUSINESSANDECONOMICS STRATEGICMANAGEMENT&INNOVATION MGT611 TELECOMMUNICATIONSTRATEGIESSHOULDBEADOPTEDBYDEVELOPING COUNTRIESTOREVITALIZETHEIRECONOMIES.

PRESENTEDTODANCANIRUNGU BY: MICHELLEIRAVUHAH 101262 DATE:5THJULY,2011

INTRODUCTION Telecommunication Telecommunication is the process of exchange of information between users (human or automated) using electric media (Kirch, 2008) In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example. In the modern age of electricity and electronics, telecommunications now also includes the use of electrical devices such as telegraphs, telephones, and teletypes, the use of radio and microwave communications, as well as fiber optics and their associated electronics, plus the use of the orbiting satellites and the Internet. (Wikipedia, 2011) BACKGROUND It has long been argued that one of the major factors holding back economic development in African countries has been the poor state of its communications networks. A combination of huge distances, large rural populations and insufficient funds for investment has meant that fixed-wire links have been economic to provide only in towns and cities (Curwen,P. & Whalley,J., 2011). World Bank studies have shown that there is a positive correlation between economic development and telecommunications density and available services, and some studies even claim that a causal relationship exists in both directions.

Telecommunications growth has also been linked to other stimulants like increased education, improved access to information, development of research centers and other positive changes on an economy and a culture. The telecommunications sector in China has been among the fastest growing sectors in China with an average growth rate of 31% from 2000 to 2005. Chinas 371 million phone subscribers account for one fourth of the world; its 131 million Internet users are one tenth of the worlds users. Analysys International reported in April 2007 that Chinas top four telecommunications companies alone are likely to spend nearly $32 billion on capital expenditures in 2007, which will surely fuel further growth (China Telcom, pp. 2-3) This paper will seek to propose strategies that can be adopted by developing countries to revitalize their economies. It will also outline the different approaches that can be used to mitigate the challenges that are encountered at the implementation level.

POSSIBLE STRATEGIES Diverse strategies can be applied which can be grouped under either the diffusion or participatory model. The diffusion model builds on approaches such as multimedia and campaign strategies, training and research, while the participatory model calls for upward, transactive, open and radical reforms of planning that encompass small scale and large scale processes. (Servaes,J., & UNESCO, 2008) 1. Network development and Documentation This approach requires networking through satellite telecommunication links or the Internet as basic infrastructure. The provision of flows of information regarding

development events and issues through telecommunication services or the internet are designed, implemented and researched to support the process of development. For example, in news reporting, this type networking allows journalists in one part of the world to voice their views and exchange news events from their perspectives to counterbalance the mainstream traffic of data and information from other parts of the world (Servaes,J.& UNESCO, 2008) 2. Leadership Governments should adopt a leadership role in the use of telecommunications for service delivery improvements and continuous productivity gains. Possible actions could include supporting government accountability through improved access to government information and decisions, implement eHealth and e-Learning strategies to improve health and learning outcomes particularly in non-metropolitan areas. Consolidating the management responsibility and accountability for infrastructure,networks and data centre services across the government, assisting agencies in the development of appropriate broadband enabled service delivery strategies, including Internet delivery ,supporting the development and implementation of appropriate Government ICT architectures and standards to facilitate the progressive migration to a converged whole-of-Government voice and data environment, supporting the use of geospatial and other large data types to improve government operations and decision making, developing Government Information Security Strategies which support effective communication between the Public, government agencies and their business partners.

Ensuring that cross agency telecommunications projects are coordinated, well managed and align with Government priorities, support the use of modelling and simulation to improve Government decision making and explore and develop ICT technologies to contribute to a low carbon world through reduced industry carbon footprint. (Queensland Government, 2009) 3. Policy and Legislation Governments can provide incentives to telecommunication companies to be able to penetrate remote areas that do not currently have any coverage, hence fostering development of telecommunication in these areas, and in the end result in the growth of the economy. Adoption of international telecommunication strategies like the World Trade Organisation (WTO) and the International Telecommunication Union (ITU), both of which through several mechanisms have promoted the establishment of information and communication technology (ICT) polices/strategies by all countries. As an example,Nigerian telecoms liberalization was instigated partly through the promotion of reforms by international donor agencies (Ndukwe, 2005)In cases, where policies are transferred from one country or institution to another, Dolowitz and Marsh (2000) suggest that this can happen in different ways: lesson drawing (involving the rational evaluation of alternative polices), voluntary (but driven by perceived necessity such as international acceptance),and coercive transfer (i.e. direct imposition by an aid agency). (Dolowitz, D. and Marsh, D., 2000) Policy and government intervention can also be implemented in form of providing a competitive environment. For example, While policy makers and regulators elsewhere in Africa emulate European best practice roaming regulation, despite the difficulties even resourced regulators of the European Union face in instituting legally binding maximum

tariffs for roaming, in East Africa operators have dropped roaming charges from their competitive business models. The creation of an enabling policy and regulatory environment allowed operators to integrate historically separate national networks into cross-border operations, undermining roaming markets in the region and ending roaming charges in East Africa forever. Zain, (Now, Airtel) decided that the only way to save itself was to exploit its only competitive advantage licenses in adjoining countries of Kenya, Tanzania and Uganda. With the launch of One Network a product that eliminated roaming charges for cross border traffic on its three networks it set in motion a competitive struggle for roaming customers that resulted in the removal of roaming charges by competitor networks achieving in weeks what European regulators had struggled with for over a decade. Mobile phone users in this region are largely pre-paid and adept at using multiple SIM cards. There was little stopping them from churning, en masse, to a network that offered them home package rates as they moved across East Africas porous borders. With the high price of communications in East Africa and the premium charges placed on international mobile roaming, the effect of this move was to compel other regional operators to follow suit, and further, to institute various other pricing strategies in an attempt to retain or recover their dominant positions. As a result, not only did roaming charges disappear across major networks, but the prices of various other mobile services also fell as subscriber numbers soared. (Gillwald,A.& Muriuki,M., 2011) 4. Development of Digital Content and Applications This deals with the development of development of ICT and related creative industries, such as computer games, film and television production, animation and music.

This can be done in partnership with the private sector to improve collaboration and information sharing. Encouraging of activities such as the digitization of cultural collections at local government and community levels to build community capacity and grow demand for broadband infrastructure (Queensland Government, 2009) 5. Training and Capacity Building Vocational and follow-up training systems can be developed, implemented and evaluated in co-operation with local training and development centers and universities. This would provide training for agency personnel and technicians, to improve the quality of output and bilateral communication flows, exchange programmes and networking. (Servaes,J.& UNESCO, 2008). For rural women in developing countries the barriers to Internet use are exacerbated by their lower economic and social status, their lack of training and literacy, their lack of autonomy, and lack of time. In situations where Internet may be introduced to a business, organisation or institution, women regularly find themselves at the low end of the hierarchy, and are passively barred from access to computers and the Internet. A common complaint at a workshop on 'Women and the Internet" at the NGO Forum in Beijing was that computers and modems tend to go to the (male) Director's office where they remain unused, instead of to the (female) receptionist or secretary who is willing and able to use the computer for communications, management and printing. It is ironic that though more women are involved in careers in the communications sector, few have attained positions at the decisionmaking level or serve on governing boards and bodies that influence media policy. (Aitkin)

6. Use of ICTs for Development Information and Communication Technologies (ICTs), such as computer and the internet are used to bridge information and knowledge divides. Having access to education opportunities , increase transparency and efficiency in government services, enhance direct participation from the public in the democratic process, increase trade and marketing opportunities, enhance community empowerment by giving a voice to voiceless and vulnerable groups, creating networking and income opportunities. In developing countries, use of mobile and satellite telephony can help small entrepreneurs and rural farmers getting access to information needed to improve their livelihood (Servaes,J.& UNESCO, 2008) The opportunity to run a telecentre, a community communication centre or public calling centres as viable businesses create an economic opportunity where none existed before. Small business initiatives related to the operation of public access centres are proliferating in developing countries worldwide, in areas once considered tele-deserts. The extended benefits directly serve the community in which the telecentres are based. In South Africa, calling cabins - banks of cell phones set up in portable shipping containers - are connecting long-neglected black enclaves to the cities. That has allowed small businesses to flourish in some underdeveloped areas and means that the rural poor no longer have to move to cities to find jobs. (Aitkin) 7. Foreign Direct Investment Foreign Direct Investment, FDI, in Indian Telecommunications Industry is one of the most crucial parts that have caused such a hike in the telecom market so far. India, in the past 15 years have received 10,000 crore of foreign direct investment and 26 percent of the sum have been invested on the cellular segment. Crore is a unit in the Indian numbering

system equal to ten million (10,000,000; 107). It is widely used in India, Bangladesh, Nepal, and Pakistan. (Crore, 2011) Telecom is the third largest sector to attract FDI in India in the post-liberalisation era. Foreign direct investment (FDI) ceilings have been raised from 49 per cent to 74 per cent in telecom services sector. For telecom equipment manufacturing and provision of ITenabled services, 100 per cent FDI is permitted (Singh,Khemka,Gorai & Malhotra, 2010)

IMPLEMENTATION CHALLENGES & POSSIBLE SOLUTIONS 1. A lack of Strategy Implementation Oversight Forming a Strategy Implementation Committees that report directly to the Strategic Information and Information and Communication Technology Ministry to keep them informed of its activities. 2. Constantly Changing Telecommunications Environment Because of the constantly changing telecommunications environment, ensuring that the implementation framework remains current will be an ever-present challenge. To address this, the Committees appointed to oversee the strategy implementation (Strategy Implementation Committees) will have to annually review the framework, strategies and actions, depending on the changing environment and introduction of new technologies. (Queensland Government, 2009) 3. Political Interest in Policy Formation Public policy in the African context often reflects the goals and interests of the political and economic elites. Unlike the assumption that in developed countries this is created in part by the apathy of the masses, in many sub-Saharan countries the dominance of

the elites stems instead from the marginalization of the masses. Agenda setting is the result of a bargaining process between elite interests that is then advanced as the public interest. (Kalu, 2004) Another issue is that of political support which has implications for the legitimacy of the law. A policy process that does not include the wider population can create problems during implementation. In this case, the inability to participate can also undermine efforts to be inclusive. Thus the government has to factor issues such as getting input from rural areas into the design of the policy process. (Best,M.L & Thakur,D., 2009) 4. International Policy and Support True and Mintrom (2001) argue that transnational networks and policy diffusion help to explain the similarity in policy innovations that have been adopted by a variety of circumstances. (True, J.& Mintrom, M., 2001) The importance of international policy networks could also help to explain the emphasis on provision of services through marketbased competition in telecommunications policies across several states. Within these networks, other relevant non-state actors can also be influential on policy including consultants, think-tanks, foundations, academic institutions (Stone, 2001) Additionally, the significance of international policy diffusion for developing countries is partly the result of the advocacy of international organizations such as the World Trade Organization (WTO) and the International Telecommunication Union (ITU), both of which through several mechanisms have promoted the establishment of information and communication technology (ICT) polices/strategies by all countries.

5. A lack of technical and human resource Lack of human/technical resources impairs many governments ability to develop policy and created the need for international support. This also affects the implementation of the law. (Best,M.L & Thakur,D., 2009) A lack of technical and human resource also lacks that could lead to the development of digital content needed for the development of the telecommunication sector in many developing countries. By partnering with local training and development centers, and universities to produce the much needed manpower. In Kenya, communities such as the iHub and m:lab provide mentorship, resources and office space to young entrepreneurs who develop web and software content. The iHub is a technology community is an open space for the technologists, investors, tech companies and hackers in the area. This space is a tech community facility with a focus on young entrepreneurs, web and mobile phone programmers, designers and researchers. It is part open community workspace (co-working), part vector for investors and VCs(Venture Capitalists) and part incubator. (http://ihub.co.ke) m:lab East Africa,isa consortium of four organizations aiming to be a leader in identifying, nurturing and helping to build sustainable enterprises in the knowledge economy.The program foresees three tracks on mobile applications, on business incubation and technology entrepreneurship and on hosting of the Global Forum in 2011 together with a supporting track of analytical work in the field of ICTs and Innovation Systems in Agriculture. (http://www.mlab.co.ke)

CONCLUSION There are of course many more strategies but at the end of the day it is important to note that for the success of any strategy, there are factors that need to be taken into account. 1. Recognize (and manage) complexity: There is usually no one single solution to any problem. Rather than trying to "boil down" to a single approach, focus on articulating a clear direction that can help people see how different components weave into a larger approach. 2. Focus on adoption Whatever it is that is being implemented, if people aren't asking for it and they don't start using it, itll be probably forcing it on them (and the strategy probably fail). 3. Deliver tangible and visible benefits Determine how success will be measured, be sure it makes sense, and measure it. 4. Prioritize according to national needs Look for quick wins. Short-term, tangible benefits help drive adoption early, when people are skeptical and supported is needed most. 5. Take a journey of a thousand steps Change is a marathon, not a sprint. A series of small steps, when aligned with a common and well-articulated vision, will increase the chances for success, and help reduce risk of failure. 6. Provide strong leadership Leadership should focus all efforts on communicating the vision, and making sure people understand the importance and urgency of the initiative. (Gray, 2005).

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