Initial Lessons Learned About Private Sector Participation in Telecentre Development

Excerpted from the summary

Telecentres have become a popular and often effective approach to telecommunications development and achieving universal access/service. They can also play a significant role in poverty reduction, ranging from job creation to providing ICT skills. Nevertheless, telecentres have also suffered from sustainability problems and from dependence on donors. As this study will demonstrate, increased private sector investment is critical for telecentre sustainability and growth.

The remainder of this study is divided into four chapters. Chapter Two examines:

• Sector drivers that account for telecentre growth;
• Various approaches of telecentre development;
• Ways in which telecentres may be used to reduce poverty; and
• Telecentre sustainability.

Chapter Three provides an extended analysis of the opportunities and constraints to private sector investment in telecentre development projects. It focuses on:

• A description of major categories of private sector investors;
• Reasons why the private sector has been reluctant to invest in telecentres; and
• Opportunities for private sector involvement in bringing information and communication services to underserved communities, especially in the provision of hardware and software.

Chapter Four focuses on four parameters that might help policymakers assess the effectiveness of telecentres in achieving their development objectives:

• Legal and regulatory environments;
• Institutional arrangements;
• Basic implementation considerations; and
• Funding and cost recovery strategies.

Six case studies reflecting the three telecentre models and parameters substantiate these issues: MCTs and basic telecentres in Peru, an MCT in Benin, an MCT in Uganda, an MCT in South Africa, a phone shop network in Senegal, and a telecentre network in Indonesia. More extensive discussion of these case studies is provided in Appendix One.

Chapter Five provides an overview of a telecentre impact assessment methodology. This methodology is designed to help policymakers and stakeholders evaluate individual telecentre projects in three different areas:

• Poverty reduction;
• Enhancing private sector participation; and
• Sustainability.

Within these themes, the impact assessment methodology provides a list of impact questions and research tools over a typical telecentre's lifespan, namely its short (1-2 years), medium (3-4 years) and long-term (5-7 years) phases. A complete impact assessment methodology is provided in Appendix Three.

Chapter Six offers next steps for encouraging telecentre growth, including:

• Legal and regulatory elements that can encourage private sector participation;
• Strategies to generate more information about telecentre sustainability and the potential for increased private sector investment; and
• Practical steps to strengthen public-private sector linkages.