ICT Adoption and Prospects in The Arab Region

This report has been prepared as a background document for the ITU Connect Arab Summit, which takes place in Doha, Qatar from 5 to 7 March 2012. The main objective of the report is to provide an overview of the deployment and adoption of information and communication technologies (ICT) in the Arab region, and to carry out a needs assessment that will help policy makers in the Arab States to identify key ICT areas that require future action. The report in particular focuses on the ICT issues identified by the Arab States regional initiatives adopted by the World Telecommunication Development Conference (WTDC-10), such as broadband access, digital broadcasting, opensource software, Arabic digital content and cybersecurity

This section presents an overview of the regulatory status, information and communication technology (ICT) deployment and adoption of ICT services in the Arab States region.1 The Arab region is a rapidly developing region in terms of ICTs and characterized particularly by strong growth in the area of mobile telephony over the last five years. The move towards commercially available 3G networks in almost all countries of the region has driven the number of active mobile-broadband subscriptions and helped bring more people online. ITU estimates that by the end of 2011, around 30 per cent of the population in the Arab States were using the Internet. Compared to mobile-cellular services (and in comparison to other regions) both fixed-telephone and fixed (wired)-broadband penetration rates in the region remain relatively low. The penetration for fixed-telephone subscriptions reached ten per cent at its highest and has been declining since 2008. The number of fixed (wired)-broadband subscriptions has grown from one million in 2006, to an estimated eight million in 2011, but penetration remains relatively low, at 2.2 per cent

In order to understand ICT developments within the Arab region, it is important to distinguish between ICT adoption and network deployments between the high-income GCC (Gulf Cooperation Council) countries on the one hand, and the non-GCC countries, on the other hand. Due to ample oil reserves, GCC countries have higher income levels, which tends to translate into higher ICT adoption, stronger and wider network coverage and early migration to Next Generation Access Networks (NGANs). Chart 2 presents the 2010 GDP per capita in the Arab countries, with the six GCC countries ranking at the top, and GDP per capita levels above 15’000 USD. Qatar, with a GDP per capita of more than 61’000 USD has the highest income level in the region. Income levels in the non-GCC countries range from below 1’000 USD per capita in Comoros, to just under 10’000 USD in Libya, which also heavily relies on oil reserves. Despite a relatively high income level, Libya’s ICT networks, projects and adoption have remained substandard in rela ion to its peers (in terms of national income), mainly due to a political environment in which the ICT market has been dominated by a state-owned monopoly, except for mobile-cellular (voice) services, where two state-owned operators are competing with each other.

An overview of the regulatory landscape of key telecommunication services in the Arab States, demonstrates that there are important differences among countries in terms of the liberalization of services, as well as in the number of service providers operating each service. The most liberalized ICT services sector in the region is the mobile-cellular market, where Comoros and Djibouti remain the only two countries with only one mobile-cellular operator. In both Libya and Lebanon, two operators are competing, but both operators are government-owned.

ICT Adoption and Prospects in The Arab Region. International Telecommunication Union. 2012

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ICT Applications for the Smart Grid Opportunities and Policy Implications

OECD. The smart grid is revolutionizing electricity production and consumption. However, strategic use of ICTs and the Internet in energy innovation requires clarifying the roles of partners coming from distinct industries. And it begs for greater coordination of government departments and stakeholder communities that so far had unrelated competencies. This report outlines opportunities, challenges and public policy implications from shifts to ICT-enabled, "smart" electricity grids.

This report discusses “smart” applications of information and communication technologies (ICTs) for more sustainable energy production, management and consumption. The “smart grid” is a particular application area expected to help tackle a number of structural challenges global energy supply and demand are facing. The challenges include:

The direct impact of energy supply industries on climate change and other environmental impact categories.

Explosion of energy demand worldwide over the past decades.

Wider uptake of renewable energy sources in national “energy mixes”, which holds specific challenges.

Accelerating diffusion of electric vehicles, which will impact volumes and patterns of electricity demand.

Provision of reliable and secure national electricity infrastructures.

Electricity provision to unserved parts of the population in developing countries.

This report discusses these challenges in greater detail and links them to innovative applications of ICTs. These linkages provide the basis for what is termed the “smart grid”, i.e. electricity networks with enhanced capacities for information and communication. In concluding, this report outlines policy implications for government ministries dealing with telecommunications regulation, ICT sector and innovation promotion, consumer and competition issues.

The electricity sector is inextricably linked with global energy challenges and climate change since over two-thirds of global electricity is generated from the combustion of fossil fuels.

The smart grid has great potential for driving innovation in the ways electricity is produced, managed and consumed. Applications of information and communication technologies (ICTs) and especially the opportunities provided by the Internet can help sustain electricity supply while limiting environmental impacts. ICTs are seen as promoting a wider integration of renewable energy sources, promoting low-carbon transport options including electric vehicles and inducting structural shifts in electricity consumption.

Innovative applications for final consumers clearly revolve around the smart meter. More than a hardware device, it has the potential to balance traditional information asymmetries between electricity producers and consumers and to stimulate informed energy conservation choices; over 10% of an individual household's electricity consumption can be cut by simply providing better information (or providing information in better ways). Reductions in "peak demand" can directly contribute to lowering greenhouse gas emissions.

There is also significant innovation in the "back-end" of electricity sector operations. Improved monitoring and networked IT systems can help limit losses of electricity along the way and thereby improve capacity utilisation and avoid pollution; such losses represent on average 8% of production worldwide but over 15% in individual countries.

Integrated information and communication systems spur the emergence of new value chain entrants and business models. A prominent example are electricity supply aggregators operating "virtual power plants". Specialised IT services and infrastructure providers develop targeted solutions for the electricity sector. Moreover, "smart" operations in the ICT sector itself can contribute to limiting environmental impacts with cloud computing holding potential for effectively tackling peak electricity demand.

However, overarching policy issues need to be addressed to improve co-ordination and flows of information between smart grid stakeholders, to explore sustainable financing options for smart grids and to ensure acceptance by and engagement of consumers and society at large.

ICT-specific policy implications involve converging energy and telecommunications services, changing connectivity requirements, evolving roles for ICT companies as electricity sector partners and the resulting skills needs for IT professionals. Policy makers can facilitate innovation and co-ordination across IT and energy sectors. But they also have an important role to play in ensuring interoperability and openness of smart grids while at the same time securing critical infrastructures, safeguarding individual privacy and developing sound principles for the commercial use of personal data.

OECD (2012), “ICT Applications for the Smart Grid: Opportunities and Policy Implications”, OECD Digital Economy Papers, No. 190, OECD Publishing.

ICT Applications for the Smart Grid Opportunities and Policy Implications

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Ghana.Implementation Status Results Report

The objective of the Project is to assist the Recipient to generate growth and employment by leveraging ICT and public-private partnerships to i) develop the IT Enabled Services industry, and ii) contribute to improved efficiency and transparency of selected government functions through e-government applications.

World Bank.Author:  Ampah,Mavis A. Document Date:  2011/12/04.Document Type:  Implementation Status and Results Report.Report Number: ISR4365

Ghana - eGhana : P093610 - Implementation Status Results Report : Sequence 09

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IDB partners with CANTO to accelerate Broadband Development in Latin America

Seventy–five ICT experts and decision makers including Caribbean Government Ministers, regulators, representatives of regional organizations, operators, suppliers and civil society had open discussions regarding “Accelerating Broadband Development in the Caribbean” during the CANTO-IDB Broadband Forum held at the Hyatt Regency, Miami, on November 7th, 2011.

Placing broadband acceleration at the heart of economic development, featured speaker Amir Dossal of the Broadband Commission ITU, urged CANTO, the leading trade association of the ICT sector in the Caribbean, to continue its pioneering work of fostering collaboration between both the private and public sector to promote growth and economic development in the region. “Facilitating ICT solutions in the Caribbean through innovative partnerships with leading international organizations & private sector (is) the only way to go,” he said.

The Forum organizers, CANTO and the Inter-American Development Bank (IDB), saw a key outcome of the dialogue being the identification of key initiatives to drive the acceleration of broadband in the region for the public good. Some projects identified included developing broadband specific policies and goals, driving greater usage of the technology by small and medium-size enterprises (SMEs) and the public in general, creating harmonized solutions for cyber security, creating a baseline map of the present broadband infrastructure, and awareness and training for various groups.

Participants recognized the urgent need to accelerate broadband deployment and adoption in the region to create knowledge-based, smart, digital economies where all citizens have an equal opportunity to participate in the global economy and ultimately improve their quality of life.

Flora Painter, Chief of the Science and Technology Division of the IDB, said that the IDB has a strong mandate to provide Latin America and the Caribbean with technical and other assistance to support accelerating the penetration and usage of broadbandas a critical technology for innovation and as a means to increase productivity, growth and social inclusion, in four main categories: policy, strategic regulation, infrastructure development and capacity building.

Dirk Currie, the Chairman of CANTO, said collaboration with IDB is a key element of CANTO’s mission to connect the Caribbean through ICT, which started in 2008. “CANTO has developed valuable public private partnerships along that journey and we are satisfied that operators, regulators, suppliers, international and regional agencies and governments with whom we dialogue, are all committed to contributing to the positive transformation of the region through broadband,” he said.

The Ministers mandated CANTO and IDB to initially focus on conducting an audit of the broadband infrastructure and regulatory frameworks in the region and developing a proposal for heightening awareness and training of various groups.

The meeting also served as a preliminary caucus for regional stakeholders in preparation for the ITU Summit of the Americas to be held in Panama in 17 to 19 July 2012. ITU, CANTO, CTU and CARICOM have committed to collaborate to identify key projects to highlight at the Summit.

CANTO and IDB have committed to make the Broadband Forum an annual event.

About CANTO

CANTO is recognized as the leading trade association of the ICT sector for shaping information and communication in the Caribbean. Founded in 1985 as a non-profit association of 8 telephone operating companies, CANTO has now grown to over 110 members in more than 32 countries. A Board of Directors appointed by the membership directs policy of the Association. This strategy is executed by the staff of a permanent Secretariat based in Trinidad and Tobago.

IDB. News Releases.Nov 11, 2011

Cote d'Ivoire's Infrastructure: a continental perspective

Infrastructure contributed 1.8 percentage points to Cote d'Ivoire's annual per capita GDP growth over the mid-2000s before conflict began to erase the country's infrastructure and its growth contributions. Raising the country's infrastructure endowment to the level of the region's middle-income countries could boost the growth rate by a further 2 percentage points.

Private sector contracts signed in the 1990s resulted in improved operational performance and funding for investments in the water, power, transport, and ICT sectors. Impressively, those contracts survived the crisis and delivered uninterrupted service. But private investment flows have decreased since the mid-2000s. Cote d'Ivoire's most pressing infrastructural challenge will be to regain the financial equilibrium needed to restore a reliable energy supply. Reestablishing the prominence of Abidjan's port will require investments in terminal capacity and road and rail infrastructure upgrades on hinterland linkages. The underfunding of road maintenance and poor sanitation are additional challenges.

Cote d'Ivoire's annual infrastructure spending was $750 million in the mid-2000s, with going to power sector operations and maintenance. If the underpricing of power and other inefficiencies (valued at $200 million annually) were eliminated, the country’s annual infrastructure funding gap would amount to $1 billion, and infrastructure goals could be reached within 20 years. Cote d'Ivoire's has relatively good prospects for bridging its funding gap by raising public investment from its low current level, choosing more efficient technologies, and harnessing additional private investment for infrastructure.

Author: Foster, Vivien; Pushak,Nataliya;Document Date: 2011/03/01.Document Type: Policy Research Working Paper.Report Number: WPS5594.Volume No: 1 of 1. Disclosure Date:  2011/03/01

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