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Public Private Partnerships and the Prospects for Sustainable ICT Projects in the Developing World

Public Private Partnerships and the Prospects for Sustainable ICT Projects in the Developing World. Elizabeth Fife & Laura Hosman Center for Telecom Management University of Southern California Presented June 2, 2007 At the Los Angeles Global Mobility Roundtable Marina Del Rey, California.

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Public Private Partnerships and the Prospects for Sustainable ICT Projects in the Developing World

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  1. Public Private Partnerships and the Prospects for Sustainable ICT Projects in the Developing World Elizabeth Fife & Laura Hosman Center for Telecom Management University of Southern California Presented June 2, 2007 At the Los Angeles Global Mobility Roundtable Marina Del Rey, California

  2. Imagine… • Using a VoIP mobile phone from the most remote, rural village you can dream of to call anywhere on the globe—Timbuktu or your next door neighbor—for free or for pennies… • You don’t even need electricity—solar energy will do! • Using a mobile phone to check prices on crops or goods that you trade and thus make a higher return…

  3. This is a reality—for some… • Our case studies give evidence that these scenarios are current realities on the ground in rural villages throughout Vietnam • So, how can this also become a reality in the most places possible, the world over? • Public Private Partnerships • Third Party intermediaries

  4. Bridging the Digital Divide • Explosion of Public Private Partnerships in ICT sector in developing world • Very little corresponding academic analysis—particularly of a critical nature • Yet, there are divergent motivations: profit motive vs. meeting constituent needs…

  5. Research question: • How can these divergent motivations be aligned to ensure a win-win scenario… • …not just for the public private partners, but also for the technology recipients?

  6. PPPs: An overview • Ideally, these partnerships take advantage of synergistic interests, while building on the strengths of the individual partners.

  7. What is the reality? • “Bread vs. Broadband Debate” • Many large, Western corporations (Intel, AMD, Microsoft) already partnering in the developing world • building future markets • “doing good while doing well” • But are things really different for Telecom?

  8. Data Gathering/Interview Stage • Difficult to get in touch with corporate representatives, not so for NGOs, Govt Orgs • Our Focus Shifted: • From corporate focus to facilitator focus • From “Can divergent motivations peacefully coexist” to “HOW can divergent motivations peacefully coexist”

  9. Third Party Facilitator • We aren’t proposing this as a catch-all solution for the diverse motivations facing PPPs • We are adding a new actor to the equation, and making the case that it can often help align the diverse motivations

  10. In the PPP Contract Formation • The presence of an intermediary is invaluable. • They provide • Contacts • Experience • Financial assistance • Technological expertise • An end-date for their activities • Motives which are not driven by profits • Invaluable Because: a well-formed contract serves the PPP for the duration of the project

  11. The case of: USAID • USAid has been active, “on the ground” doing development work for over 50 years. • They have contacts all over the world. • They have development goals that do not have profit at the origin. • They make bilateral agreements—all projects must have developing state’s governmental approval to move ahead.

  12. The case of: USAID • They play the role of “matchmaker” • They set up feasible projects, but have an end date • They also promote US business interests

  13. Case Studies in Vietnam • Cases very similar: only difference is the technology employed • 1st village: Lao Cai • Chosen because the people could economically benefit from ability to communicate verbally w/Chinese neighbors just across border

  14. Case Studies in Vietnam • 3 partners: • Intel • Vietnamese Ministry of Post & Telecom • USAID • Diverse Motivations • Bring WiMAX to Vietnam • Provide underserved rural areas w/telecom access • Bring the two partners together w/good plan

  15. Case Studies in Vietnam • Both projects were successful • First project finished in > 1 year • Second project finished in 6-8 months. • 1st project used ground-based WiMAX • 2nd project used satellite-based (backhaul) to provide the Broadband Internet • Both used VoIP for voice communications

  16. Looking to the Future • High hopes for the Satellite-Based technology • Intel wants to partner with USAID to implement this project in 30 countries • They’re proposing this at USAID HQ next week

  17. Looking to the Future • Greater need to study PPPs around the world • Intermediary parties have been neglected in the literature—their role should be examined • Common PPP success factors detailed in paper • There is cause for optimism in ICT PPPs

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