SPC/CRGA 39 (09) Paper 3.5.2

ORIGINAL: ENGLISH

SECRETARIAT OF THE PACIFIC COMMUNITY THIRTY-NINTH MEETING OF THE COMMITTEE OF REPRESENTATIVES OF GOVERNMENTS AND ADMINISTRATIONS (Nuku’alofa, Tonga, 6–9 October 2009)

DIVISIONAL REPORTS

AGENDA ITEM 3.5.2 – ICT report: Pacific Digital Strategy (Paper presented by the Secretariat)

EXECUTIVE SUMMARY

1. Good progress has been made with the three initiatives that SPC has had responsibility for under the Pacific Digital Strategy. SPC has facilitated discussions between interested countries and SPIN (South Pacific Information Network), a private sector company that has been developing a trans-Pacific submarine cable; PacRICS (Pacific Rural Internet Connectivity System) installations have been deployed in 16 countries; and 14 countries have undertaken or committed to OLPC (One Laptop Per Child) trials.

2. Following endorsement of the revised Regional Institutional Framework (RIF), ICT units or positions currently based in PIFS and SOPAC will transfer to SPC and will form part of an ICT programme that SPC is establishing in its new Economic Development Division. This new, rationalised programme will be undertaken in partnership with the University of the South Pacific and others, ensuring that it is well placed to support progress toward the objectives of the Pacific Digital Strategy.

3. Specific Pacific Digital Strategy activities for 2010 include:

• continuing to work with members to roll out PacRICS to rural and remote areas; • progressing the OLPC initiative • working with development partners to secure an extension of PacRICS, including the bandwidth subsidy to the end of 2010 (this is expected to cost approximately USD 650,000); • maintaining an appropriate facilitating role between member PICTs and SPIN; • developing a strategic plan for the new ICT programme; • reviewing and updating the Pacific Digital Strategy (subject to further discussion); • progressing discussions with development partners, in particular the Asian Development Bank, on support for the programme.

RECOMMENDATIONS

4. CRGA is invited to: i. note SPC’s progress on initiatives under the Pacific Digital Strategy and plans for further development of these initiatives; and ii. note the rationalisation of PIFS, SOPAC and SPC ICT functions into a single programme at SPC.

Purpose 1. This paper reports progress on three Pacific Digital Strategy initiatives that SPC has coordinated or implemented. It also describes the initiatives of other stakeholders, work on collaborative projects and the outlook for SPC’s new ICT programme. Specific in-country activities are listed in Annex 1 and related workshops in Annex 2.

Background

2. With the implementation of RIF initiatives from January 2010, SPC will have lead responsibility at the regional level for the five priorities of the Pacific Digital Strategy as follows: i. improving access to communications technology, particularly to and from rural and remote areas; ii. reducing costs of ICT; iii. establishing higher bandwidth connectivity to the global ICT ‘backbone’; iv. removing inappropriate regulatory environments to foster higher levels of investment; and v. strengthening human resource capacity to apply and use ICT.

3. During 2006–2009, SPC took a leading role in coordinating or implementing the following major regional initiatives, in addition to its more limited role in ICT training: • The east-west trans-Pacific submarine cable, commonly referred to as SPIN; • The pan-Pacific low-cost satellite-based PacRICS, to provide internet connectivity for rural and remote outlying communities; and • The OLPC initiative, to make low-cost ICT available to school-age children and youth.

Submarine cable — SPIN

4. In line with CRGA’s direction and with the Forum’s endorsement, SPC has facilitated consultations between interested PICTs and SPIN, the private sector company that has been developing the project. SPC has also contributed to discussions involving potential development partners, such as the Government of France and development banks.

5. SPIN’s main goal is to make high-speed internet connectivity more widely available by providing cable-based ICT access to PICTs that do not currently have such access or that seek redundant capacity for existing cables.

6. Originally SPIN proposed to link 12 PICTs from French Polynesia in the east to PNG and New Caledonia in the west, providing connection opportunities en route to Cook Islands, Niue, American Samoa, Samoa, Tonga, Wallis and Futuna, Fiji Islands, New Caledonia, Vanuatu and Solomon Islands.

7. At the time of writing this paper SPIN has advised that: • seven countries and territories have signed agreements with SPIN (New Caledonia, French Polynesia, Wallis and Futuna, American Samoa, Samoa, Fiji Islands and Norfolk Island); and • An international open tender for the supply and delivery of the SPIN submarine cable system has been issued. SPIN has signed the contract with the successful bidder. The system is expected to enter operation in late 2010 or early 2011.

PacRICS

8. The objective of PacRICS is to serve rural communities. PacRICS uses a satellite with a large enough footprint to provide coverage for all PICTs and small, relatively cheap satellite dishes that can be easily installed and maintained in rural locations, including outer islands that do not currently have internet access.

9. AusAID provided project funding of AUD 2 million to secure a dedicated Pacific hub on the GE 23 satellite, finance 16 pilot sites and support bandwidth costs for two years, ending 31 December 2009. The achievements of PacRICS to date are described below.

10. Good progress with the uptake of PacRICS. A total of 86 sites are registered. There are 34 public good sites such as schools, with the remaining 52 being private sites such as resorts in remote locations and sites operated by national telecoms. As the benefits of PacRICS become more visible, communities and countries have increased their demand for the technology. To date we have allocated 40 additional public good sites to PNG and 10 to Tonga, and 20 more are being considered for other members. Federated States of Micronesia has expressed interest in 30 sites this year. We expect increased uptake by private sector users and small businesses in PICTs as national regulatory frameworks are relaxed to enable clients to benefit from this technology.

Table 1: PacRICS uptake (as at September 2009) Country Private sites Public good sites Total Cook Islands 11 - 12 Kiribati 7 9 16 Fiji 1 1 2 FSM 3 2 5 Marshall Islands 3 1 4 New Caledonia 8 1 9 Niue 1 3 4 Palau 2 4 6 Papua New Guinea - 1 1 Samoa - 1 1 Solomon Islands 3 2 5 Tonga 6 1 7 Tokelau 3 1 4 Tuvalu 2 1 3 Vanuatu 1 2 3 Wallis and Futuna 1 - 1 Other (WCPFC) - 4 4

Total 52 34 86

11. Political support. Forum ICT Ministers, at their meeting in February 2009 in Tonga, commended PacRICS, endorsed its implementation in their countries and requested that SPC solicit funds to extend the subsidy on bandwidth for an additional year to enable all countries to participate before having to meet their own costs.

12. Improvements in the regulatory environment. A number of countries have made landmark decisions within the context of their regulatory environments to accommodate PacRICS. They all acknowledge that PacRICS adds value to their existing networks rather than competes with them. Examples include: (i) the telecommunications companies of PNG, Niue, Cook Islands, Tokelau and Tonga, which have decided to operate PacRICS under their licenses, thus enabling the roll- out of PacRICS in these countries within existing legislative provisions; and (ii) Kiribati, which has reformed its licensing arrangements to enable potential providers throughout the country to access PacRICS directly.

13. Competition. The introduction of PacRICS has, in some countries, encouraged existing operators to provide better services to rural areas. While this limits the deployment of PacRICS, it is a welcome outcome under the Pacific Digital Strategy.

14. Direct benefits to primary recipients and surrounding communities. These are the most important results of PacRICS. The following example illustrates recipients’ perceptions and shows how the benefits of PacRICS can extend beyond the primary beneficiaries.

Rural connectivity in Solomon Islands

At Patukae Community High School in Solomon Islands, a single satellite terminal with a repeater can provide connectivity to nine other schools, a health clinic, a resort, six small businesses and 16 surrounding villages. The resort has offered to pay the bandwidth fees at the end of the pilot period and to make an annual donation of laptops to surrounding schools as part of its community development support to PacRICS. As the Principal of Patukae Community High School said: ‘We are committed to utilising this facility to the fullest. The benefits are overwhelming and are bound to bring about changes to all our communities.

One Laptop Per Child

15. Advances in computer technology have resulted in the development of the global OLPC initiative, which provides low-cost, durable, so-called ‘XO’ laptops for children. The initiative is managed by the OLPC Association, a US-based non-profit organisation set up to oversee the creation of an affordable educational device for use in the developing world. The XO laptops, which cost as little as USD 200 each, provide learning opportunities for children, particularly those in rural and remote areas.

16. SPC secured a gift of 5000 XO units (worth approximately USD 1 million) from the OLPC Foundation for a Pacific-wide pilot project, providing the opportunity to implement pilot projects in most PICTs. To date, pilots have been launched in PNG, Solomon Islands, Nauru, Niue, Kiribati and Vanuatu. In August 2008, Niue made history by becoming the first country in the world to supply 100 per cent of its children with laptops.

17. In the Pacific, OLPC is managed by OLPC Oceania working in partnership with SPC. The PacRICS technology provides the ideal interface for connectivity. SPC has conducted joint PacRICS and XO deployment trials in five PICTs and pilots will be extended to 14 PICTs by 2010. While ambitious, the goal of OLPC Oceania is most welcome: to provide laptops to all children in the Pacific aged 6–12 by 2015.

Other major players in Pacific connectivity and collaborative projects

18. The World Bank (WB) and Asian Development Bank (ADB) informed a Forum ICT Ministers meeting in Tonga of their commitment to assist PICTs in their efforts to access more reliable, faster connectivity. A study on Pacific connectivity commissioned by WB last year confirmed the feasibility of both satellite and submarine fibre optic solutions. The study confirmed that a French Polynesia – New Caledonia (FPNC) submarine cable offered a good regional cable solution (this is the exact architecture of SPIN).

19. ADB has approved a technical facility to work with SPC to further explore and develop financing options for connectivity solutions for some PICTs.

20. Other promising new satellite providers are in development, including O3B networks, which aim to ‘connect the unconnected’ — O3B stands for the ‘other 3 billion’ people who are unconnected. O3B technology might in the long run provide cable-type solutions to PICTs that cannot afford cable technology or where cable technology is not available. SPC is keeping abreast of advances in this area and will update members regularly on developments that might be of interest to them.

Outlook

21. Following endorsement of RIF, ICT units or positions will be transferred from PIFS and SOPAC to SPC. These will form part of an ICT programme that SPC is establishing in its new Economic Development Division1. This new, rationalised programme will be undertaken in partnership with the University of the South Pacific and others, ensuring it is well placed to support the region’s progress toward the objectives of the Pacific Digital Strategy.

22. Specific Pacific Digital Strategy activities for 2010 include:

• continuing to work with members to roll out PacRICS to rural and remote areas; • progressing the OLPC initiative • working with development partners to secure an extension of PacRICS, including the bandwidth subsidy to the end of 2010 (this is expected to cost approximately USD 650,000);

1 The new division is described in more detail in CRGA Paper 6.1 Organisational Reform and Implementation of the Regional Institutional Framework. • maintaining an appropriate facilitating role between member PICTs and SPIN; • developing a strategic plan for the new ICT programme; • reviewing and updating the Pacific Digital Strategy (subject to further discussion); • progressing discussions with development partners, in particular the Asian Development Bank, on support for the programme.

Conclusion

23. Good progress has been made with the three initiatives that SPC has had responsibility for under the Pacific Digital Strategy. With the implementation of RIF reforms, SPC will be in an even stronger position to support the implementation of the strategy.

Annex 1 – Country activities

Country Activity and results Cook Islands One TA mission completed OLPC discussions, ongoing FSM Two TA missions completed ICT Policy, PacRICS and OLPC discussions. One PacRICS pilot deployed; six PacRICS systems ordered. 1200 OLPCs ordered for Kosrae. Fiji Two TA missions completed RICS and OLPC discussions, ongoing Signed up to SPIN French Polynesia One TA mission completed, OLPC discussions ongoing Kiribati PacRICS and OLPC discussions; two PacRICS pilots; eight PacRICS systems ordered Marshall Islands One TA mission completed; ICT policy discussions; one PacRICS pilot deployed Nauru Two TA missions completed. OLPC pilot started New Caledonia Niue One TA mission Completed ICT policy discussions 500 OLPC pilot started Palau One TA mission completed PacRICS and OLPC discussions ongoing PNG Two TA missions completed. Four PacRICS pilots deployed, 2,300 OLPC pilots started Samoa Two TA missions completed One PacRICS pilot deployed, OLPC discussions ongoing Signed up to SPIN Solomon Islands One TA mission completed Two PacRICS sites operational 300 OLPC pilot started Tokelau Three PacRICS systems deployed Tonga Two TA missions completed Four PacRICS pilots deployed OLPC discussions ongoing Tuvalu PAcRICS and OLPC discussions ongoing Vanuatu Two TA missions completed Two PacRICS pilots deployed OLPC discussions ongoing.

Annex 2 – Meetings and Workshops

A PAcRICS/Telecenter training workshop was conducted in PNG This workshop was conducted at the PICISOC PACINET Conference in Port Moresby in September 2009. Key outcome: eight participants were trained in sustainable operation of telecenters.