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Lao Pdr Case Study INTERNET ON THE MEKONG: LAO PDR CASE STUDY March 2002 This report was written by Michael Minges and Vanessa Gray of the International Telecommunication Union (ITU). Tim Kelly provided valuable comments. Nathalie Delmas formatted the report. It is based on research carried out from 5 – 8 November 2001 as well as articles and reports noted in the document. The assistance of Lao Telecom, particularly Somchit Leuangvansay and Bounthone Phounsavath, was indispensable and highly appreciated. We would also like to thank Peter Loone (PlaNet Online) and Gi-Soon Song (Center for Development Research, ZEF) for their extensive and valuable comments on the draft version of this report. Equally, the report would not have been possible without the cooperation of the many Lao organizations who offered their time to the report’s authors. The report is one of a series of case studies examining the Internet in South East Asia carried out in 2001. Additional information is available on the ITU’s Internet Case Study web page at http://www.itu.int/ITU-D/ict/cs/. The report may not necessarily reflect the opinions of the ITU, its members or the government of the Lao People’s Democratic Republic. The title refers to the Mekong River, which runs almost the entire length of Lao. © ITU 2002 ii Contents 1. Country background ............................................................ 1 1.1 The only landlocked South East Asian nation ...........................1 1.2 Growing too fast? ................................................................. 1 1.3 Agriculture is king ................................................................2 1.4 Raising literacy .................................................................... 2 1.5Recent history ..................................................................... 3 2. Telecommunications in Laos ................................................ 5 2.1 The Ministry in charge .......................................................... 5 2.2 ETL Revival.......................................................................... 5 2.3 Building the PSTN ................................................................6 2.4 Who wants a telephone? ....................................................... 6 2.5International makes the money ............................................. 7 2.6 Mobile potential ................................................................... 8 3. Laos Internet ..................................................................... 11 3.1 Multiple initiatives .............................................................. 11 3.2 The market today ............................................................... 12 3.3 Who is in charge? ............................................................... 13 3.4 How many gateways? ......................................................... 13 3.5How much does it cost? ...................................................... 14 3.6 Laos or Los Angeles? .......................................................... 14 4. Sector absorption .............................................................. 15 4.1 E-government.................................................................... 15 4.2 Education .......................................................................... 16 4.3 Health .............................................................................. 17 4.4 E-commerce ...................................................................... 18 5. Conclusions ....................................................................... 20 5.1 State of the Internet........................................................... 20 5.2 Recommendations .............................................................. 21 Annex 1: List of meetings........................................................ 23 Annex 2: Acronyms and abbreviations .................................... 24 Annex 3: Useful links .............................................................. 26 Annex 4: Framework dimensions ............................................ 27 Annex 5: Bibliography ............................................................. 30 iii Figures 1.1 Map of Laos .........................................................................1 2.1 Mobile cellular growth ...........................................................9 3.1 Internet users in Laos ......................................................... 12 5.1 State of the Internet in Laos ................................................ 20 Tables 1.1 Population indicators ............................................................ 2 1.2 Human Development Indicators ............................................. 3 2.1 Telephone tariffs 2001 .......................................................... 8 3.1 Laos international Internet connectivity ................................ 13 3.2 Internet dial-up prices in Lao PDR ........................................ 14 4.1 Laos at school .................................................................... 17 4.2 Laos Health Facts ............................................................... 18 Boxes 2.1 Mass Media .........................................................................9 iv 1. Country background 1. Country background 1.1 The only landlocked South 1.2 Growing too fast? East Asian nation Laos had a population of 5.2 million The Lao People’s Democratic Republic at mid-year 2000 with an annual (Lao PDR, or Laos), with an area of population growth of 2.8 per cent. At 236’800 square kilometres, is South this rate, the Lao population would East Asia’s only landlocked country. double by 2025, posing, according to Lao PDR is situated in the centre of one commentator, “serious threats to the Indochina Peninsula. It is bordered Government efforts to raise the living by China to the north, Vietnam to the conditions of the Lao people.”1 east, Cambodia to the south, Thailand Families are large, with the average to the west and Myanmar to the household composed of six persons. northwest. Some 70 per cent of the Several hundred thousand Laotians country is composed of mountains and live abroad, part of an exodus high plateaux. The plains region is following the change of government situated along the Mekong River, in 1975.2 The majority of the which runs through 1’898 kilometres population, around 85 per cent, lives of Lao territory. Situated between the in rural areas. At 22 people per square Tropic of Cancer and the Equator, Laos kilometre, Laos has the lowest has a tropical climate. Administra- population density in Asia. Its capital, tively, the country is divided into Vientiane, is home to some 18 provinces, 142 districts, and 598’000 inhabitants. The country is 10’912 villages. young, with 94 per cent of the population under 29 years. Figure 1.1: Map of Laos The 1995 population census recorded 48 different ethnic groups in Laos. The major one is the Lao Loum who live in the lowlands and the Mekong river valley and who make up about 68 per cent of the population. The Lao Theung, who are believed to be Laos’ first inhabitants, make up about 22 per cent of the population and live in the mountainous region. Most of the Lao Soung, who make up about ten per cent of the population, are nomadic and often live in very remote areas, especially the highlands, above 1’000 meters. Lao culture has been influenced by Thailand, Cambodia and Vietnam and the Lao Loum share many similarities with the Thai. The official language is Lao as spoken in the capital but there are many different dialects. Most are related to Thai, which is also widely understood. As a former French colony, some people–generally the older generation–speak French. English is Source: The World Factbook. increasingly emerging as the second language, particularly among the young. Theravada Buddhism is the 1 Lao PDR Internet Case Study Table 1.1: Population indicators cent in 1999 but dropped to 24 per cent in 2000 and continues to stabilize. While Item 2000 the economy started to Population (million) 5.2 recover in 1999, the overall Population growth rate (%) 2.8 situation remains fragile and the country’s ability to recover Rural population (%) 85 from the crisis will also depend Households (thousands) 849 on Thailand’s economy. Average household size 6.1 Eighty-four per cent of Laos’ imports (1998) go to Thailand. Average life expectancy at 54.7 birth (years) Thailand also represents a large hydroelectric market and Age Distribution: a drop in energy demand from Below 15 years (%) 44 the Thai side has caused a 15-29 years (%) 50 major loss of export revenue. 30 years and older (%) 6 Thailand is also the biggest foreign investor in Laos, including in the telecommu- Source: National Statistical Centre. nications sector. Laos has great hydroelectric religion of the majority of Laotians. potential and could expand this sector. Some tribes practice animism. Other major exports include textiles, wood and forest products, agricultural 1.3 Agriculture is king products, coffee, tea, minerals, and handicrafts. In 2000, exports With an annual per capita income of accounted for US$ 393 million, 22 per US$ 290 (2000), Laos is one of the cent of GDP. Nonetheless, Laos region’s poorest nations and is imports more than it exports and in classified by the United Nations as a 1999 ran a trade deficit of Least Developed Country (LDC). Most US$ 214 million. people survive on subsistence agriculture. Around 39 per cent of the The country depends upon foreign population lives in poverty. The Lao assistance to carry out its economy
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