PRESENTATION ON INFORMATION AND COMMUNICATIONS TECHNOLOGY IN THE THE FEDERATED STATES OF MICRONESIA

1. PRESENTATION ON INFORMATION AND COMMUNICATIONS TECHNOLOGY IN THE THE FEDERATED STATES OF MICRONESIA PACIFIC ISLAND DIGITAL OPPORTUNITY (PIDO) RESEARCH COMMITTEE OF SPINF, JAPAN TOKYO, JAPAN 11-17 DECEMBER 2006 Jolden J. Johnnyboy Assistant Secretary for Communications Dept. of Transportation, Communication. & Infrastructure Government of the Federated States of Micronesia

2. CONTENTS • Map of FSM • Country Profile and General Information • Regulatory and FSM Telecom Corp. Structures • Present ICT Situation • Networked Access • Networked Learning • Networked Society • Networked Economy • Networked Policy • Summary Overview and Summary Perspectives • Global/Regional Strategic Approach • National Initiatives • Plan of Action

3. FSM: MAP

4. FSM: Country Profile and General Information Capital………….Palikir ( Located on the island of Pohnpei) Area…………....271 square miles (701 square kilometers) Population….…105, 500 (2002 Census) Currency……….U.S. Dollar GDP……………..U.S.$ 203.1 Million GDP Per Capita…1.909 Original People….Nine ethnic groups of Micronesians, Polynesians and Melanesians. Language……..… Official Language is English with 8 different languages and 4 different dialects Culture……….…….Chief System Religion…………….Pre-dominantly Christians Literacy Rate…….89 % Government………Constitutional government with 3 separate branches in free association with the United States since 1986. Federal System consist of National Gov’t. 4 State Gov’ts. of Kosrae, Chuuk, Pohnpei and Yap, with over 80 Municipal Gov’ts. National Holiday…10 May (1979) Constitutional Day

5. FSM: Regulatory and FSM Telecom Structures I. Regulatory Structure: The FSM Communications Act of 1991, mandated the Department of Transportation, Communications and Infrastructure as the telecom regulatory authority in the FSM. The Division of Communication is responsible to the Permanent Secretary (Minister) for all telecommunications matter which include – administration and management of the radio spectrum (licensing), development of policy, coordination and development of National ICT Plan. The Division is also responsible for memberships in ITU, APT and other sub-regional organizations. The Assistant Secretary of Communications is responsible for the Division of Communication.

6. FSM: Regulatory and FSM Telecom Structures II. FSM Telecom Corporate Structure: The FSM Telecommunications Corporation Act of 1983,established the corporation as the sole telecom service provider in the FSM. The Corporation is headed by a CEO/President with managers supervising various departments. The Corporation has a 5 Members Board of Directors. 4 members are nominated by the States Governors with State Legislature’s consent. 1 member is Nominated by the President with Congress consent. National policies Objectives and planning responsibilities was built into its charter:  To operate on a commercially acceptable practices and plan for the expansion and improvement of services/facilities including expansion into the remote islands and un-served areas, in a manner consistent with commercial reasonableness to promote economic development, the advancement of education and health and the preservation of the diverse cultures in the FSM… It is a government policy not to interfere with FSM Telecom business decisions.

7. FSM: Network Access The minimum necessary condition for e-readiness is access to adequate network infrastructure. Access is determined by combination of availability and affordability of the use of the Internet, communication network speed, hardware and software and support service. Infrastructure The telecommunication infrastructure in the main islands of the four states has good access to telephone services. Despite this good coverage the overall rating is lowered due to the poor coverage in the outer islands especially in Chuuk and Yap. There are about 18,000 mobile and 13,000 fixed line phones. This is a teledensity of about 30%. There are about 90 leased lines. Availability There is only one ISP (FSMTC) offering varying packages ranging from dial ups to leased lines. There are limited facilities for public Internet access. Furthermore due to lack of communication infrastructure in the outer islands there is a severe lack of internet access. Affordability The dial up packages (fixed voice) are one of the best in PICs especially since there is no telephone usage charges. Fixed telephone subscribers are charged a fixed monthly fee. Notwithstanding that the leased line packages are relatively high and no special consideration for services such as health and education.

8. Continue FSM: Network Access Network Speed Generally, relatively good dial up connections with a few 64Kbps and 128Kbps leased line connections in main islands. There are no high speed services of 1.5Mbps or more but this could be due to the prices rather than network capabilities. In addition, GSM network coverage and quality is good in the main central business districts but still with a few “black spots”. Hardware & software There are a couple of ICT suppliers but mainly to supply ICT equipments. All these equipments are sourced from abroad. The level of supports and expertise is low. There is a lack of software, database and web developers. There are a couple of websites that were developed locally but mainly by expatriates or overseas companies. There are no websites that uses local languages such as Yapese, Kosraen, Pohnpeian and Chuukese. Service Mainlines still take some time to be installed. Service response time is good but can be better and be more customer friendly. Despite this there are growing customer service ethic among service and support providers. ICT supports are available but due to lack of expertise and experience still need to be improved. There are only a few software developers and most of them are expatriates. Nocompetitive web development industry and tech supports are available but mainly in Pohnpei and to a lesser extent in the 3 other states.

9. FSM: Networked LearningHRD and capacity building is crucial for ICT development and enable community to participate in the networked world. Due to lack of training providers and ICT professionals ICT must be incorporated into the learning system to foster, help develop local capacity and expertise. School access Most of the high schools have computer laboratories especially in Pohnpei, Yap and Kosrae. Computer laboratories tend to have about 10 computers. Some of these computer laboratories are networked. There are also computers in some elementary schools. These labs also have some dial up connections and for outer Islands especially in Yap and Pohnpei they have “wavemail” which communicated using radio frequency. There are no email or webservers in these schools. They are not connected to a WAN and internet connection is only through dial ups. Computer studies are also taught in tertiary institutions such as College of Micronesia. Enhancing Education Teachers (mainly in high schools) use computers like word for preparation of school materials. Some classes (esp those in computer labs) use projector for power point presentation. ICT are not integrated into the curricula. High schools taught computer classes are elective but mainly using a TVET approach. Due to lack of internet access and skills, class information are still paper based and distributed manually. World Wide Web are yet to be incorporated into school works.

10. Continue FSM: Networked Learning Workforce There is a very limited number of ICT training providers. Certification courses tend to be done usually in Guam or Hawaii. Some ICT courses are offered at college (COM six campuses) in basic computing. Due to lack of available ICT professionals there are limited opportunities for training in skills development in organizations in government organizations.

11. FSM: NETWORKED SOCIETYReadiness depends upon the community’s incorporation of information and communication technologies into the fabric of its activities in order to maximize the gains of joining in the Networked world, In the society-at-large, ICTs can have a profound effect upon people’s professional and personal lives by providing easier access to information, more efficient ways to communicate and powerful organizational tools. To understand how a community is using ICTs, it is important to assess not only how many members of the community is using ICTs, it is important to assess not only how many members have access to technologies but also how they are using them. People Some local businesses and institutions have registered domain names. (Need to find specific numbers). Not much promotion for ICT/online service providers. There are approximately 1200 internet subscribers which roughly equate to 1% of population. Assuming 3 or 4 uses the same account this number goes up to 4-5%. A lot of awareness of ICT/internet is due to use of computers in schools. There are a lot of organizations and departments, in state and national, that do not have websites.

12. Continue FSM: Networked Society Content Not much local content. There are a couple of news/information websites but are not updated regularly. Local websites are predominantly in English and none (or very limited) in local languages. No affordable opportunities exist for web-related training. Check with FSMTC on number of registered domains. Everyday life ICT are used to a limited degree by some members of the community. Public phones are available in some parts of capitals. Some cybercafé in central business district and hotels/resorts. Bank of Micronesia doesn’t have credit card payment, online banking or ATM services. Bank of Guam provide online banking and credit card payments. Limited number of PCs in homes (based on number of subs for dial up accounts). No local online shopping sites. Workplace Not much interconnection-WAN but most of the big organizations/departments have LANs. Due to limited connectivity and proper network setup only some employees have email and web access (mainly Hotmail/yahoo etc).

13. FSM: NETWORKED ECONOMYBusinesses and governments that are able to effectively employ information and communication technologies find more sophisticated and efficient ways of managing their external relationships and communications. This growing ICT usage helps form the critical mass of electronic transactions which supports a networked economy, both in terms of the network size and the demand for associated goods, services, labor and policy reform. Employment Some ICT employment opportunities are there but mainly at junior level. There are no or very limited ICT Policy, manager, professional jobs. Business To Community Some (very few) local businesses operate websites. Very few businesses post key information on websites (FSMTC). None have introduced online ordering. Businesses still rely on taking paper based purchase orders, some using faxes and phones.

14. Continue FSM: NETWORKED ECONOMY Business To Business Similarly to B2C. Business to business interactions remain inefficient with little transparency. No online procurement systems. Faxes and paper orders are still main form of interactions. Signatures are still required. E-Government A lot of departments do not have websites. Governments do not manages relationships with contractors or suppliers online or with other electronic mediation. Government distributes information about services, procedures, rights and responsibilities in hard copy. Some employees have email accounts. Finance and payroll systems are computerized is all (soon) states and the national government. HESA is also working on a Health Information Systems for all states, generally hospital statistical record, etc. No Government WAN.

15. FSM: NETWORKED POLICYPublic policy can be a help or a hindrance to the networked economy. The favorable climate that public policy can create for Internet use and e-Commerce encourages communities, organizations and individuals to invest in and use ICT. Telecommunication Regulation Plans for liberalization of telecommunication services are being formulated. ICT Trade Policy Trade in equipment for information and communication technologies may be hindered by high tariff. There is little foreign direct investment. Investment in ICT sector encouraged? No policy or opening of service sectors related to ecommerce. ICT Related Legislation No legislation – computer crimes or spam acts. Key question is if someone hacked or access your computer without authority can you take them to Court?. ICT Policy National ICT Policy and Action Plans are being formulated by Communication Division of the Department of Transport, Communication and Infrastructure. Yap government has also formulated a ICT Plan.

16. FSM: SUMMARY OVERVIEW OF CURRENT ICT STATUSAT PRESENT, FSM IS EXPERIENCING A VARYING DEGREEE OF ICT DEVELOPMENT WITHIN THE FSM, COMPARATIVELY FROM STATE TO STATE, ACROSS OFFICES IN BOTH THE NATIONAL AND THE FOUR STATE GOVERNMENTS, FROM SCHOOLS TO SCHOOLS AND FROM HOSPITALS TO RURAL CLINICS AND IN THE PRIVATE SECTORS, AS WELL. THIS e- FSM IS PROCEEDING AT PRESENT ON A PIECEMEAL BASIS, WITH EACH PIECE FALLING RANDOMLY INTO THE FSM ICT PUZZLE.THIS “FSM DIGITAL DIVIDE” IS MORE SIGNIFICANT BETWEEN THE URBAN AREAS AND RURAL VILLAGES NOT TO MENTION THE REMOTE ISLAND COMMUNITIES. Summary in Perspective • Severe lack of ICT Capacity not only in National/State Governments but also in Private Sectors. • No or limited ICT Infrastructure in Outer Islands. no telecom infrastructure in outer islands in Yap and Pohnpei, except in Ulithi Atoll. • Limited ICT infrastructure (some have LANs) in Government departments. Need to have proper design, setup, services (webserver, email server).

17. Continue FSM: Summary in Perspective • No local software development industry (limited, most work done by overseas company or expatriate). • No policy governing management of Domain names (.gov.fm, .com for businesses etc). Registering domain names is not organized. • Lack of coordination in various computerization projects. Duplication of efforts, waste of limited resources. • National ICT Policy are being formulated resulting in lack of direction. (Policy need to simple and practical) • Internet leased line connections are still high. (Price high compared to many other countries…).

18. Continue FSM: Summary in Perspective • ICT is not integrated into the education curricula. (Used for teaching MS Office etc but not as a subject like Math, etc.) • No computer crimes legislation.

19. FSM: GLOBAL/REGIONAL STRATEGIC APPROACH BACKGROUND-Taking into considerations global trends and regional developments: WSIS 2003: Declaration of Principles “Common Vision for an inclusive information society” • Building a people centered information society • Information Infrastructure: an essential foundation • Capacity building: continuous life-long learning • Building confidence and security in the use of ICTs • ICT applications: benefits in all aspects of life • Cultural and linguistic diversity and identity, local contents • International and regional cooperation WSIS 2003 Plan of Action to be achieved by 2015 July 2004: APT Ministerial Conf. (Asia Pacific Broadband Summit) in Bangkok, Agreed on the Bangkok Agenda for broadband and ICT development in the Asia-Pacific Region.

20. Continue FSM: GLOBAL/REGIONAL STRATEGIC APPROACH • WSIS 2005: Tunis Commitment Connecting all communities by 2015 (From closing address by Yoshio Utsumi, Secretary General of ITU) • Reaffirmed WSIS 2003 Declaration of Principles and Plan of Action • To build ICT networks and develop applications that are affordable and accessible to all, available anywhere and any time, to anyone and any device, leading to a ubiquitous network. PALM 2006, Okinawa, Japan May 2006 Okinawa Declaration of PALM 2006 to strengthen international cooperation activities on ICT projects in realizing “Benefits of ICT for All Pacific Islanders”. • The Asia Broad Program, strategic part of the e-Japan Strategy II, includes PI Cs. • WSIS has also given special attention on PICs • There is a need ICT projects for PICs in conjunction with both Asia Broadband Program and WSIS. • Japanese Government should take an initiative under the close coordination with PIF, UNU, PIDO etc.

21. Continue FSM: GLOBAL/REGIONAL STRATEGIC APPROACH At the second Forum Communications Ministers’ Meeting, convened in Suva, Fiji in April 2002, Ministers endorsed a second action plan the Communications Action Plan 2002 (CAP 2002), building on from that endorsed in 1999. Ministers also endorsed the Pacific Islands Information and Communication Technology Policy and Plan (PIIPP) with its vision for “ICTs for Every Pacific Islander”.

22. Continue FSM: GLOBAL/REGIONAL STRATEGIC APROACH In April 2004, Forum Leaders at their Special Leaders Retreat, in Auckland, New Zealand met to consider and discuss the EPG Report, and agreed to the formulation of a Pacific Plan called the “Pacific Digital Plan.” • “The development of a digital strategy would allow huge gains to be made through the countries of the region working more closely together. We regard this as an area requiring urgent, concerted action and so offer some reasonably detailed thoughts” • “The regional IT infrastructure is limited in its reach and accessibility. Few Pacific people have good access to electronic communication of any type and those who do face indifferent services and high prices. In a world increasingly divided into “information rich” and “information poor” there is little risk that the Pacific is beginning to slide down the wrong side of the digital divide. That can only lead to marginalization and isolation, both economically and socially.”

23. Continue FSM: GLOBAL/REGIONAL STRATEGIC APPROACH • In August of the same year, Leaders at the 2004 Forum Leaders Meeting, held in Apia, Samoa, adopted the following vision: “Leaders believe the Pacific region can, should and will be a region of peace, harmony, security, and economic prosperity, so that all its peoples can lead free and worthwhile lives. We treasure the diversity of the Pacific and seek a future in which its cultures, traditions and religious beliefs are valued, honoured and developed. We seek a Pacific region that is respected for the quality of its governance, the sustainable management of its resources, the full observance of democratic values, and for its defence and promotion of human rights. We seek partnerships with our neighbours and beyond to develop or knowledge, to improve our communications and to ensure a sustainable existence for all.” And agreed to: “Develop a Digital Strategy for the region, based on the 1999 Communications Action Plan.”

24. Continue FSM: GLOBAL/REGIONAL STRATEGIC APPROACH • Forum ICT Ministers endorsed the Digital Strategy at their meeting in March 2006 in Wellington, New Zealand. At this meeting, the Forum ICT Ministers also endorsed the Wellington Declaration recalling past decisions and initiatives of past Ministerial meetings, including references to the 2002 Pacific ICT Survey, as well as pledging and declaring future areas for regional ICT cooperation and collaboration. Specific reference was made to undertaking seven initiatives in the first year.

25. Continue FSM: GLOBAL/REGIONAL STRATEGIC APPROACH REGIONAL PRIORITIES: • Tele-health: The Pilot Tele-health Project • Community access: Multipurpose Community Telecentres (some best practices and success stories are becoming reality) • Human resources: Various programmes are on-going • National Policy and regulatory frameworks: Still on-going subjects in Pacific Islands countries

26. FSM: National Initiatives I. Government First ICT Workshop-”e-FSM” conducted by the e-Pacifika Project funded by Japan through the UNDP was held in November 2002, involving stakeholders from all sectors of the FSM, endorsed ICT goals and objectives for the FSM. Second ICT Workshop- “Policy Makers and Leadership Workshop” co- Sponsored Peace-sat, SPINF, FSM Telecom, College of Micronesia and FSM National Government. The participants represent many leaders from both the State and National governments, Governors, Legislatures, Department directors and Congressmen. National Policies were endorsed for government consideration.

27. Con’t. FSM; National Initiatives Draft Telecom Policies addressing present telecom market environment is completed ready to be submitted to Government for consideration and establishing National ICT Committee (CIPAC). FSM National ICT and strategic Plan is to be completed early next year. FSM in partnership with SOPAC have completed ICT assessment in FSM, report to be submitted in January 2007. Joint FSM/Japan on APT HRD Research Project to develop models for tele-centers in FSM.

28. FSM NATIONAL PLANORGANIZATION Executive order establishing National ICT Committee (INFORMATION AND COMMUNICATION POLICY ADVISORY COMMITTEE) CIPAC FSMTC CEO/GM President’s Cabinet State Rep. Private Sector Rep. Working Group

29. ICT Working Group • Formulation of ICT Working Group to advise and provide technical support to CIPAC Continue… CIPAC ICT WORKING GROUP

30. Continue FSM: National Initiatives II. Current FSM Telecom Corporation Projects Up grade of GSM system migrating from inter-wave to Huawei, 2006-2007. Plans approved to build additional GSM systems (similar to the Ulithi system) for 3 outlying atolls in Chuuk and Pohnpei, 2006-2007.

31. FSM: Plan of Action A plan is a statement of the desired future and what actions will be undertaken and resources committed so that the future is what is desired.

32. FSM: Plan of Action POLICY DIRECTION The digital divide between urban areas of developed countries and rural areas of developing countries are becoming: “wider and wider!” We must expedite and strengthen our actions to bridge the digital divide by developing information infrastructure in rural areas. Dr. Kenji Saga presentation at FSM ICT Policy and Leadership workshop, March 2006 “…Without access to affordable ICT capacity and services, our people will continue to be unable to fully benefit from opportunities that could otherwise be made available for education, health, and economic development, to name a few. Indeed, telecommunications is a necessary tool for economic and social development…” FSM President, H.E. Joseph Urusemal, Opening remarks at FSM ICT Policy and ICT Workshop, March 2006

33. Continue FSM: Plan of Action 1. National ICT Proposed Plan: Objectives-Efficient government communication network at affordable cost. This is a rolling plan with a short and long term objectives, to be achieved within the Compact II period or by 2020 year. ICT Policies built into Plan. Priority areas:( Capacity Building in all areas) e-government Health Education Universal Service Obligations Strategy-Objectives achieved by planned phases. ICT Pilot projects like telecenters, Mail-wave, etc. for rural areas should be pursued upon availability of funding. These small projects should attached under annexes in National Plan. Financial Resources-Compact Fund, FSM Governments, Donor Countries-Japan ODA, PRC grants, Regional programmes thru ITU, APT, etc… 2. Legislation to amend law to open telecom sector for competition.

34. FSM: Conclusion FSM Government supports PIDO Recommendation that : “Government of FSM to play a key role with strong support of other Pacific Island countries that Okinawa Declaration of PALM 2006 to strengthen international cooperation activities on ICT projects in realizing “Benefits of ICT for All Pacific Islanders”.

35. ? THANK YOU CONTACT: e-mail: transcom@mail.fm Cell phone: 920 9736 Tel: (691)320-2381