2. • Globally, ICT spending is
estimated at US$3 Trillion
• Growing at an average of
8.9% per annum
• Representing 6.8% of
Global GDP.
• ICT Growth has to be a
part of a strategic plan
which drives an economy
• Essential part of Global
Market Participation.
Economic Benefit ICTs
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Ireland
Finland
US
Jamaica
EUAverage
Germany
France
Italy
Denmark
% ICT ContributiontoGDP
Ireland
Finland
US
Jamaica
EU Average
Germany
France
Italy
Denmark
3. National Vs Foreign Direct Investment
0
5
10
15
20
25
30
35
40
45
50
China India Brazil Russia South Africa Egypt Sri Lanka
PercentageofGDP
Investment in Emerging Markets
Investment (gross fixed) est. 2009
Foreign direct investment est. 2009
FDI > NI in
Many developing
Countries
4. Distribution of Foreign Investment
4
0
2000
4000
6000
8000
10000
12000
14000
China India Brazil Russia South
Africa
Egypt Sri Lanka
US$millionsest.2008
Investment in energy (million US$)
Investment in telcoms (US$)
Investment in transport (million US$)
Investment in water & sanitation (US$)
Bulk of investment is in
Health
Energy
Transport then
Telecoms
5. ICT Investment Distribution by Regions
Investment in telecommunications 2008
Investment in African
Telecommunications is far
behind all regions apart from
East Asia - Pacific
Africa – USD 12.9 per capita
Oceania – USD190.80 per
capita
8. Challenges in Emerging markets
• Inadequacy of network infrastructures: national transmission backbone,
Point of Interconnection (POI), Internet Exchange Points (IXP), etc.
• Unreliable and inadequate public electricity power supply
• Security of telecommunication network infrastructure and installations:
vandalism, theft, etc posed a threat
• Difficulties in acquiring land and suitable buildings in rural areas
• Lack of adequate funding / Appropriate Budget allocation
• Inadequacy of experienced ICT manpower in rural areas
• Rural-Urban digital divide remains as rural teledensity still remains
relatively low (<5%) for both Mobile telephony and even less for
Internet/broadband connectivity
• 60-70% Population in Rural /Semi Urban Areas
9. Improved ICT Policy / Regulations
Helping to Promote Capital Inflows
IMPLICATIONS
Converged services
means converged
regulatory authorities
Technologically neutral
licensing increasingly in
place
Focus on Access,
Service Quality,
Affordability, not
technology
Govts/Regulators
working closer with
the Private Sector
Promoting
Liberalisation,
Competition,
Privatisation
Making more
spectrum available
thru innovative
frequency planning
Consumer
protection,
awareness and
education
10. Stimulate Roll-Out in Underserved Areas
• Competitive subsidy models
• Provide operator(s) with subsidy to build and operate a network in currently
underserved areas of the country. Services provided in these areas on a non-
discriminatory basis.
• Shared infrastructure/consortium models
• Provide operators with incentive to cooperate in the development of backbone
infrastructure in currently undeserved areas of the country where
infrastructure competition is not commercially viable
• Incentive-based private-sector models
• Provide operators with an incentive to build networks in currently underserved
areas through reductions in USF contributions or sector levies.
11. ICT Investment Opportunities
Tremendous investment opportunities in ICT Sector
• Expanding National coverage to rural areas
• Opening markets for New Entrants (if necessary)
• Unified Licensing to allow new wireless technologies
• e.g. WiMax, Broadband, Rural, 3G
• National fibre backbone development
• National e-Gov Development – G2G,G2B,G2C
• in e-education, e-health e-commerce, e-agri
• Liberalisation of Broadcasting sector – new entrants
• Applications / Local content developments
• Building national data centre
12. Variety of Investment Options
• Governments, through Ministries, Public Banks, SSF
• Bilateral agencies (DfID, USAID, SIDA, DANIDA, etc)
• Other Emerging Markets (mostly India, China, Mid-east)
• Multilateral Banks/Agencies (IDA, IFC, WB, AfDB, DBSA, EU)
• Private Equity Investors—both African and globally, corporate,
consortia and individual
• Venture Capitalists
• Structured Funds—Equity, Debt, Emerging Markets/African
Infrastructure, etc
• Commercial Banks—Stnadard Charter, ECO Bank, Barclays, Stanbic,
Zenith, UBA, etc
• Investment/Merchant Bank—Merrill Lynch, Goldman, Morgan
Stanley, CSFB, etc
• Vendor Financing—Huawei, Alcatel, Cisco, Nortel, Nokia, Sony,
• New Sources—Grameen, Rural Banks, USAFAs, etc
13. Partnering with CTO 4 ICT Investments
• CTO, 100-year-old organization, owned by governments, ICT
regulators, telephone and ICT operating companies, and ICT
equipment manufacturers, vendors and stakeholders
• Telecom project development and finance sourcing, support with
market entry and development, Facilitation of Access to Key
Decision-Makers
• Capacity for Market and Sector Research—Nokia-NSN, Ericsson
• Specialist knowledge of untapped rural markets of Africa/Asia
• Projects undertaken for World Bank & UN agencies, e-NEPAD
Commission
• Provision of Consultancy and Advisory Services,
• Capacity Building Programmes and Training Courses—DfID/BDO
• Agile, flexible, business-like approach to operations
14. Conclusions
• The World is in a Knowledge Age
• Global ICT trends are leading to Convergence
• Commonwealth Economies have improved over Last 20 years
• Major Opportunities exist for ICT Investment in member
countries
• Liberalization, Privatization, Competition=Opportunities
• New Equity, Debt and Venture Funds Available for Member
Countries
• ICT Sector Getting Highest Returns on Investment in the
Commonwealth Countries
CTO is working with Governments, Operators, Vendors,
Investors, Funding agencies and others to help to bring about
Universal access / connectivity to enhance social and economic
development