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An Alternative, Practical, Plus Sustainable Approach to Addressing the Digital Divide

An Alternative, Practical, Plus Sustainable Approach to Addressing the Digital Divide. Presented by: Cliff Court 22 nd February 2006. Contents. Digital Divide definition Current initiatives What’s the actual issue? Proposed new approach Challenges it presents Discussion and feedback.

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An Alternative, Practical, Plus Sustainable Approach to Addressing the Digital Divide

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  1. An Alternative, Practical, Plus Sustainable Approach to Addressing the Digital Divide Presented by: Cliff Court 22nd February 2006

  2. Contents • Digital Divide definition • Current initiatives • What’s the actual issue? • Proposed new approach • Challenges it presents • Discussion and feedback

  3. Digital Divide Definition(s) • First coined by Dr Simon Moores in 1996 • “The socio-economic gap between communities in their access to computers and the Internet” • No clear definition that can divide society into two distinct groups • Importance of the Divide • Civil equality • Social mobility • Democracy • Economic growth

  4. Current Initiatives • $100 laptop from MIT • Simputer in India • Nivo from Ndiyo • Refurbished PCs from computers4africa.org • Bicycle-powered PCs inLaos village • PCtvt – Carnegie Mellon • Telemedicine in the Amazon – Madrid University

  5. What’s the Actual Issue? • The provision of cheap technology does not directly benefit a community • With Internet access, it does provide a new window of knowledge • How do users pay for ongoing access? • How does such technology and access actually improve their lives? • What is really needed is initiation and promotion of new economic activity in Divided communities

  6. A New Approach • Begin with the end in mind – generation of sustainable new economic activity • Must include upliftment of social services • Not yet tested in any way • Accommodates social realities and requirements – but must be able to pay for it on an ongoing basis

  7. A New Approach Trade/Ability to transact economically Financial/banking services Social Services Affordable/Cheap Communication

  8. New Approach • Four tiers • Affordable communication – foundation to everything • Social services – a better channel to reach those that are traditionally hard to reach • Financial tier – banking the un-banked • Access to trade channels – entrepreneurs exist everywhere – but often do not have the mechanisms to execute

  9. Tier 1 – Affordable Communications • The most basic enabler of economic activity is communication between parties • Communications in ‘Divide’ areas has typically been hard or non-existent – until cell phones came along • Cell voice calls are expensive and SMS’s are very limited • GPRS is suggested as the current ‘answer’ to providing affordable communications (in SA, was R50 per MB, now as low as R1 per MB) • Low-cost mobile data channel will allow useful levels of communication for personal and business use

  10. Tier 2 – Social Services • Where a channel exists to ‘Divided’ peoples, it should be used for social benefit • Social services will be dispensed using the new Tier-1 communication channel • Services include: • eHealth – HIV/AIDS, malaria, TB, local epidemic, vaccination info • eAgriculture – planting, harvesting, market price info • eGovernment – voting, tax, services info • Services are customised based on location and regional languages

  11. Tier 3 – Financial/Banking Services • Majority of African banking services are problematic • A trustworthy, borderless financial service provider or bank is needed • Due to migrant labour, the need to transfer money ‘back home’ is important • Any trade that does occur will require financial ‘comfort’ for both parties • Microloans are a key instrument of initiating economic activity in a community • The Tier 1 communication layer should be used to access such financial services

  12. Tier 4 – Trade/Economic Activity • With the Tier 1 communication and Tier 3 banking services in place, trade is enabled between distant parties • ‘Divides’ can now promote their wares and interact with potential buyers i.e. as sellers • ‘Divides’ can now also have contact with suppliers of raw materials i.e. as buyers • Tier 4 is the ultimate goal of the bridging the divide – enabling new economic activity

  13. The Proposed Model • Yet another device – but with special considerations • Use of GPRS mobile data channel • Built-in social services applications • Built-in mobile banking account – access to virtual bank at no cost • Built-in email, web browsing, IM • Free submission of products to ‘Africa’ web trade portal • Wherever possible, use tried and proven models to reduce risk

  14. The Device • Based on Hiptop device from Danger Research • GSM/GPRS device – use normal mobile operators • Intelligent but very thin client • Licenceable technology for cheap manufacture • Customisable with Java applications • Camera Email Instant Messenger ‘Proper’ Web Browser

  15. Key Device Issues • Device must be ultra-efficient in use of bandwidth – both for cost of data and load on network operators • Customisable for multiple languages and locales • OTA updatable • Content ‘push’ capability is critical • Content auto-formatted (and compressed) for form factor • Device is the Tier 1 solution – useful communication at affordable cost

  16. Provision of Social Services • Engage suitably skilled NGOs for each of the service envisaged • eHealth • eAgriculture • eGovernment • Others… • Use device ‘push’ capability and local language support in order to reach widest audience • No cost to recipient for these services • This provides the Tier 2 requirement

  17. Virtual Bank – ‘African PayPal’ • Based on eBay’s PayPal virtual bank model • PayPal info • 96 million accounts • 55 countries • High security • Person-to-person transfer/Person-to-business transfer • ‘AfPal’ account built into device with rich transactional functionality • AfPal provides trustworthy financial services and low transactional costs • Virtual bank hosted in S Africa or Europe • ‘On ramp’ and ‘Off ramp’ provided through traditional banks • This provides the Tier 3 requirement

  18. Web Trade Portal • Free, catagorised access for device users to promote manufactured goods • Goods are submitted with photo from camera, short description and price wanted • Portal staff format submissions for web site • Any purchases can be made through traditional web transaction (credit card) • Revenues are transferred directly to seller’s AfPal account • Portal can be used for purchase of raw materials for manufacturers or through normal web browser • Substantive difference to the ‘Divide’ is now achieved as new economic activity is enabled with Tier 4 in place

  19. The Model Content Providers GPRS Medical NGO Markets and sells goodspay taxes Government NGO Content collation system Agriculture NGO Divided SME Manufacturer Content Push System Central Operations Receives monies Health services Supplier on Internet Divided Communities Internet Web Trade Portal Mobile Operators Sends money home Links to Other banks Migrant worker Buyer on Internet AfPal Virtual Bank

  20. Challenges • Where’s the money? • Who is the target? • How can they afford the device and on- going access? • Hang on! You said it was sustainable! • If AfPal is needed because other banks are not trustworthy, how can you rely on them as on and off ramps? • What’s next?

  21. Discussion and Feedback • Why is this a non-starter? • What are the show-stoppers? • How would you do it? • Where would you go for funding? • Is this worth more research within UCT?

  22. Many thanks for your time today! Cliff Court Email: cliff@vine.co.za

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