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 is mainly based on development objectives and reduce agriculture, which employs over half poverty. A major development goal is of the work force and contributes over exiting the ranks of the LDCs by the 50 per cent of Gross Domestic Product conservative date of 2020. In 1997 (GDP). foreign aid accounted for 38 per cent of the government’s budget and in The Laotian economy has traditionally 1999 foreign aid per capita stood at been based on state planning and US$ 58. control. In 1986, the government launched its New Economic 1.4 Raising literacy Mechanism (NEM), aiming to create a more market-oriented economy by Laos ranks 131st out of 162 on the emphasizing privatization, promoting United Nations Development international trade and creating a Programme’s (UNDP) Human De- stable environment for foreign velopment Index (HDI). This places the investment. Between 1992 and 1997 country towards the top of the “low the economy grew by an average of human development” category. The seven per cent a year. Laos was HDI is composed of a basket of affected by the Asian financial crisis, indicators including life expectancy at which started next door, in Thailand birth, adult literacy, school enrolment in July 1997. The devaluation of the and GDP per capita (measured in Thai baht, led to a depreciation of the Purchasing Power Parity). Lao PDR Lao currency, the kip, to one-tenth its ranks lowest among South East Asian pre-crisis value and inflation rose Nations (see Table 1.2). Its major drastically. Inflation hit over 100 per weakness is the low adult literacy rate
2 1. Country background
Table 1.2: Human Development Indicators strong nationalist movement before Lao PDR compared to selected South East Asian countries, 1999 and during World War II (when the Combined country was school occupied by the Life gross Japanese), France expectancy Adult enrolment GDP Per regained control HDI at birth literacy ratio Capita over Laos. In July Rank Country (years) rate (%) (%) (PPP US$) 1949 Laos obtained 26 Singapore 77.4 92.1 75 20’767 semi-autonomy within the French 56 Malaysia 72.2 87.0 66 8’209 Indochina Union. 66 Thailand 69.9 95.3 60 6’132 An independence movement from 70 Philippines 69.0 95.1 82 3’805 Vietnam, the Viet 101 Viet Nam 67.8 93.1 67 1’860 Minh, backed by the national resistance 102 Indonesia 65.8 86.3 65 2’857 movement, the 118 Myanmar 56.0 84.4 55 1’027 Pathet Lao (“Land of Laos”), moved 121 Cambodia 56.4 68.2 62 1’361 into parts of central Laos and civil war 131 Lao PDR 53.1 47.3 58 1’471 broke out. The French eventually Source: ITU adapted from UNDP. acknowledged the independence of Laos and the Kingdom of Laos that is reported by UNDP as 47.3 per gained full sovereignty in 1954. cent for 1999. This diverges from National conflicts between different national statistics from the 1995 forces led to further internal struggles. population census where the adult In 1961 these forces agreed to a literacy rate in Laos was reported at cease-fire and the establishment of a 60 per cent. A recent government coalition government. However soon report claims that literacy had risen after, Laos became embroiled in the to 70 per cent by 2000.3 Furthermore Cold War and drawn into the US- national statistics base the literacy Vietnam war. Laos sustained some of rate on the respondent’s ability to read the heaviest bombing of the 20th and write Lao. This may result in century as US forces sought to destroy distorted results since only 53 per cent parts of the Ho Chi Minh Trail that of the population is ethnically Lao. passed through the eastern part of the country. Another terrible legacy of the 1.5 Recent history war is that more than 25 years later, some 50 per cent of Laotian territory The first Laotian state, the Kingdom contains unexploded ordnance. In of Lane Xang (“million elephants”) was December 1975 the monarchy was founded in 1353. It existed until the abolished and the Lao People’s beginning of the 18th century, when it Democratic Republic established under was divided between three separate the rule of the Pathet Lao party. Lao dynasties and ruled by the Siamese adopted its first constitution in 1991. (Thai). In 1893, Laos became a French In 1997, Lao PDR joined the Association protectorate. Although there was a of Southeast Asian Nations (ASEAN).
3 Lao PDR Internet Case Study
1 “Lao population set to double in one generation.” Vientiane Times. 9 – 12 November 2001. 2 According to the US government, some ten per cent of the Laotian population sought refugee status since 1975, including 250’000 who have settled in the United States. See U.S. Department of State. “Background Note: Laos”. www.state.gov/r/pa/bgn/index.cfm?docid=2770. According to a Thai newspaper article, 56’384 Lao workers have registered with labour authorities in Thailand and this is believed to be only a fraction of the total number of Laotians living in that country. See Penchan Charoensutthipan. “Aliens flustered as employers refuse to pay for registration.” Bangkok Post. 23 October 2001. www.bangkokpost.net/231001_News/23Oct2001_news09.html 3 Lao PDR Government. Interim Poverty Reduction Strategy Paper. 20 March 2001. www.imf.org/external/np/prsp/2001/lao/01/index.htm.
4 2. Telecommunications in Laos
2. Telecommunications in Laos
Lao PDR has made a number of changes Telecommunication development has to the structure of its telecommu- been guided by Master Plans. Detecon, nication sector over the last decade. the consulting arm of Deutsche This includes introducing private Telekom, developed the Master Plan investment through a joint venture covering the period 1990-2000. The (1994) as well as separating posts from Japanese International Cooperation telecommunications (1995). A new Agency (JICA) is developing a new telecommunication law was passed in Master Plan, covering the period 2003- 2001 and will soon be implemented. At 2015. least in theory, the sector has been open to competition since the beginning of 2.2 ETL revival November 2001. However these changes have not typically been the Until 1993, the Enterprise of Post and result of a transparent timetable. Today Telecommunications Lao (EPTL) was the telecommunications sector seems the 100 per cent government owned trapped in a web of tension between organization responsible for operating development assistance bodies, private telecommunications in the country. In investors, inter-ministerial rivalry and 1994, a joint venture was established state planners. Reconciling these forces between the government and a Thai will be a major challenge. The nation company, Shinawatra International also faces immense technical and Public Company Limited, called Lao commercial challenges in expanding Shinawatra Telecom Company Ltd (LST) telecommunications. Most of the to operate telecom services (telecom population resides in rural areas, project Phase III). It should be noted transport and electrical infrastructure that this was not the first example of are scarce and incomes are low. The private investment in the telecom traditional money earner for the sector. In 1990, Telstra of Australia industry, international telephone calls, installed and operated an international is under mounting pressure globally and gateway with satellite connectivity to local tariffs have not kept up with the Intelsat. This so-called Business recent pace of inflation and currency Cooperation Contract, following a model devaluation. common in Vietnam, was for a term of ten years and has expired. 2.1 The Ministry in charge In 1995, EPTL was divided into The Ministry of Communication, Enterprise of Post Lao (EPL), Transport, Post and Construction responsible for postal services and (MCTPC), with a staff of around 300, Enterprise of Telecommunication is responsible for telecommunication Lao (ETL), responsible for policy and regulation. The Department telecommunications. of Posts and Telecommunications (with a staff of 22) is the functional In 1996, ETL and LST were merged unit within MCTPC whose tasks include to form Lao Telecommunications frequency management, telecom and Company Limited (LTC, or LaoTel) post policy, long term development with the government owning 51 per strategy, licensing and regulation. cent and Shinawatra owning 49 per MCTPC has an annual budget allocated cent. LaoTel was granted a concession by the government. The German of 25 years with five-year exclusivity development bank, KfW, is one of a (through October 2001). number of bodies involved in advising the government on the establishment Meanwhile the Japanese government of a regulatory authority.4 had provided infrastructure grants and
5 Lao PDR Internet Case Study
loans in the 1990s. These included local backbone but in some places, the solar and transit exchanges as well as the storage units are losing capacity. international gateway. Under its official There is one fibre-optic junction. It development assistance policy, runs from east to west from the Japanese aid is not available for private Vietnamese border (via Khamkeut in companies such as LTC. Therefore a way Bolikhamxay province) to Vientiane, had to be found to regularize this and is part of the regional CSC (China- situation. So ETL was resurrected in Singapore Cable) network, planned by August 2000 and the Japanese supplied the Asian Development Bank. The idea assets transferred to it. As a result, of installing a fibre optic network along LaoTel ended up leasing certain network the highway that would run most of elements needed for its service the length of the country has been provision such as the international planned by ETL. Lao Telecom has also gateway. With the expiration of LaoTel’s petitioned the government to allow it exclusivity in October 2001, the way is to use satellite technology for now open for ETL to enter the sector as nationwide communications. a telecom service provider. ETL plans to provide fixed telephone lines, mobile 2.4 Who wants a telephone? GSM and VoIP services in 2002. Universal telephone service—where Millicom International Cellular SA, a almost every family has a telephone— Luxembourg-headquartered is still a long way off for Laos. It is international mobile investor, with estimated that fewer than four per operations in a number of countries cent of Laotian households currently including Cambodia and Vietnam, have a telephone. Less than half of announced in June 2000 that it had Laos’ districts (58 out of 142) have approval (in the form of an MOU) to fixed telephone services and only obtain a mobile cellular license upon the urban areas in half of the provinces ending of the exclusivity of LaoTel’s are covered by a mobile cellular signal. license.5 In January 2002 Millicom was awarded a GSM 900 and 1800 license. There is no specific plan for developing It will provide mobile services in a joint universal access to telecommuni- venture with the government and is cations. The telecommunication expected to launch in the second half Master Plan established targets but of 2002.6 there was no clear link between these targets and explicit mechanisms for 2.3 Building the PSTN achieving them. Of course the fact that the government owns half of Laos has made impressive strides LaoTel suggests that it can exert its during the 1990s in boosting its fixed goals into network rollout. The MCTPC telephone network. Annual growth has set a target of teledensity of three averaged 20 per cent a year between by 2005, but again there is no clear 1991-2000, the 3rd highest in the South mechanism of how this will be East Asia region. As a result the number reached. It is interesting to note that of fixed telephone lines in service grew according to official reports less than from 7’270 in 1991 to 47’810 in 6’000 people were on the waiting list September 2001. Fixed teledensity rose for a fixed telephone line at the end from 0.17 to 0.89 per 100 inhabitants of 2000. This suggests that 87 per and is poised to break one sometime in cent of all expressed demand for 2002. The local exchange network is telephone service in the country is met. completely digital. Taken at face value, one could argue that demand for telephone service in A microwave backbone running the Laos is almost satisfied. However this length of the country from north to does not factor in people that could not south was completed in 1994. It is afford telephone service or just assume starting to show its age and is having service cannot be obtained because difficulty handling the increased growth they live in areas without electricity or of the telecommunication network. Due telecommunication infrastructure. One to a lack of electricity, solar energy or estimate puts ‘hidden’ demand gasoline generators power parts of the at 35’000.
6 2. Telecommunications in Laos
It seems that affordability is only been fully exploited in Lao PDR. partly a barrier to access. The Prepaid service was only launched in connection charge for the fixed 2000, and is more than three times telephone network is just Kip 300’000 more expensive per minute than (US$ 38). This amount is equivalent subscription mobile service (800 kip to roughly 13 per cent of household per minute, or about US$ 0.8 per yearly consumption expenditure.7 minute). It seems certain that new Though this seems large, it is a one- companies planning to enter the time investment to get connected to mobile market will launch with prepaid the network and is far below the actual services. If mobile coverage can also cost of providing service. After that, be extended, this could mean a big monthly expenditures for phone boost to telecom access. service seem manageable for wealthier households. For example the With 83 per cent of its population monthly telephone fee plus residing outside urban areas, rural 100 minutes of local telephone calls telecommunication development is an (Kip 15’000 + 4’500 = 19’500) is equal important challenge for Laos. LaoTel to 10.3 per cent of average monthly has a Rural Telecom Networks project household consumption. It should be with four phases. The technology is noted that the average household based on radio links from towns with already spends 10.6 per cent of its telephone exchanges to villages. The income on transport and first three phases, covering the period communications. Furthermore, there is 1994-2001, saw the installation of a difference in consumption between 1’224 lines. The fourth phase, urban and rural households. For the covering 2001-2004, will install an average urban household, monthly additional 856 lines. telephone service would amount to about six per cent of consumption. Thus The Asia Cellular Satellite Company there are at least 135’000 urban (ACeS) has been lobbying the households that could afford telephone government to operate in Laos.8 This service yet only around 33’500 had pan-regional geo-mobile satellite service at September 2001. Though system covers all of South East Asia more work is needed in analysing and works with a small antenna telecommunication demand in the attached to a dual mode (satellite / country, there appears to be a mismatch GSM) mobile handset. It seems between supply and demand. especially appropriate in Laos where large parts of the country are One means of promoting wider access inaccessible by roads and lack is through public payphones. LaoTel electricity or telecommunication installs card phones since there are infrastructure. no coins in circulation. These are being upgraded to magnetic smart cards. At 2.5 International makes the September 2001, there were 312 card money phones in the country, more than double the amount three years earlier. Laos is typical of many developing The close community structure in Laos countries where international calls also lends itself to telephone sharing have been used to keep local service and those with phones will often let affordable. The country has some of neighbours use them (typically for a the highest international tariffs in the fee of between Kip 1’000 – 2’000 per world as well as some of the cheapest minute). This may explain why local ones. A one-minute call to the compared to other developing United States costs US$ 1.90 whereas countries we find few public phone a local call costs less than one US cent. centers. Also, public phone centers International services accounted for can only operate under ETL’s or 50 per cent of LaoTel’s revenues in LaoTel’s license. 2000. This situation is probably untenable. Although LaoTel currently The role that prepaid mobile has has a monopoly on overseas calls, this played in other countries for may soon end as ETL and perhaps enhancing telecom access has not yet others are expected to enter the
7 Lao PDR Internet Case Study
other developing Table 2.1: Telephone tariffs 2001 nations. For example, neigh- Item Kip US$ bour Cambodia, with roughly the Telephone connection 300’000 38 same per capita income, launched Monthly subscription 10’000 1.27 mobile about the same time as Laos. Local call (per minute) 45 0.6 US cent Yet Cambodia now has twice the mobile penetration Source: LaoTel. of Laos. At September 2001, mobile subscribers accounted for one market. Furthermore indirect third of the total telephone subscribers competition is having an impact on in Laos and mobile density was a mere international revenues. This includes 0.25 per cent. growing incoming traffic as well as refile.9 Another development is Voice There are several possible expla- over Internet Protocol (VoIP). Though nations. Laos was the last country in technically illegal for anyone to the region to introduce competition in provide besides LaoTel and ETL, VoIP the mobile sector. It also only recently is openly offered in many Internet launched prepaid (2000). Some argue cafés. In addition, ETL plans to launch that the country’s economic and an international VoIP service. geographic situation work against wide mobile penetration. Incomes are Being landlocked, Lao PDR relies low, the vast majority of inhabitants heavily on satellite technology for are rural and much of the terrain is international traffic. It uses an Intelsat mountainous. The relevance of these Standard A earth station donated by factors will become more known over the Japanese. An earth station the next year with two new mobile installed by Telstra in 1990 under a networks set to launch (ETL; ten-year so-called Business Millicom). Cooperation Contract is no longer in use. There are also radio and fibre Perhaps in anticipation of mobile optic links across the border to competition, LaoTel has been actively Thailand and Vietnam. building out the mobile network over the last year. The number of 2.6 Mobile potential subscribers grew by 75 per cent between January and September An AMPS analogue cellular network 2001, significantly above the annual was launched in 1993 serving average growth of 44 per cent a year Vientiane and a year later a GSM 900 between 1997-2000. One factor has network was introduced (December been the start of the M-Phone prepaid 1994). The AMPS network has since service. Launched in 2000, there were been shut down. The GSM network is 5’402 prepaid subscribers at now available in nine of the country’s September 2001, accounting for eighteen provinces. As coverage is 21 per cent of all mobile cellular usually available only in the largest subscribers. town of the province and does not fully extend down the nation’s main Some Laotians already benefit from a highway, it is estimated that less than sort of indirect mobile competition. ten per cent of the population is Those living along the 1’835 long covered by a mobile signal. kilometer border with Thailand can receive cellular signals from Thai Despite eight years of mobile cellular, mobile operators. For example, Lao PDR has not yet experienced a various parts of Vientiane are within wireless boom to the same extent as range of Thai mobile networks.
8 2. Telecommunications in Laos
Figure 2.1: Mobile cellular growth Laotians with business interests in Thailand have been known to take out Thai mobile subscriptions. Laos is also losing out on roaming revenues as it Mobile cellular subscribers (000s) 0.52 has few agreements with mobile operators in other countries. Some 29.5 foreigners in Laos thus connect to Thai Per 100 inhabitants networks to make roaming calls. 0.27 0.18 0.12 13.9 0.03 0.08 0.09 0.01 0.01 9.4 1.5 6.4 0.3 0.6 3.8 4.7
93 94 95 96 97 98 99 00 01
Source: ITU adapted from LaoTel.
Box 2.1: Mass Media
Lao PDR’s mass media is undeveloped. This is due comparatively wide coverage, the relatively low cost to its late start, the difficulty of delivering of a radio receiver and the fact that radio can reach newspapers over few roads, inaccessibility of illiterate sections of the population. electronic media, the low literacy rate as well as government ownership of all media. The Ministry Television broadcasting started in May 1993. Like of Information and Culture is responsible for policy radio, there are two national channels broadcast and regulation in the sector. The first newspaper over 27 nationwide stations. Terrestrial coverage was launched in August 1950. Today there are two is around 40 per cent of the population. Some major Laotian dailies—People’s Daily (Pasason) and 30 per cent of households had a television in 1997. New Vientiane (Vientiane Mai)—with a combined In frontier regions, channel availability is print run of around 15’000 copies. There is also an supplemented from cross-border television signals. English language bi-weekly, the Vientiane Times For example, three Thai television stations can be (3’000 copies) and a weekly French paper, received in Vientiane. A growing number of Laotians Rénovateur (1’000 copies). News kiosks are rare are turning to satellite television. Thailand’s UBC and foreign newspapers and magazines are virtually pay Direct-to-Home service is available in parts of unobtainable. The foreign language papers as well Laos. A Chinese cable TV operator has also been as the Lao News Agency (Khaosan Pathet Lao, KPL) licensed in Vientiane and was recently granted a have web sites.10 ten year nation-wide concession.
Radio broadcasting started in 1960. There are two Videos and VCDs do good business in Lao, since national channels and 20 provincial stations the last cinemas closed a few years ago. Thai broadcasting over AM and FM bands. Radio covers cinemas have been a beneficiary with some Laotians around 65 per cent of the population. According to hopping across the border to watch a movie. Some the National Statistical Centre, 52 per cent of 20 per cent of Laotian homes had a video recorder Laotian households had a radio in 1997. Radio is a in 1997, a high proportion considering the relatively key source of news and information due to its low level of incomes.
9 Lao PDR Internet Case Study
4 See “Advising the state on setting up regulatory authorities” on the KfW web site at www.kfw.de/en/entwicklungszusammenarbeit/news38/archive86/onfocus67/public-pri.jsp 5 Millicom. “Millicom Received Approval in Principle for the License to Provide Nationwide Cellular Telephony in Laos.” Press Release. 23 June 2000. 6 http://micc.client.shareholder.com/news/20020124-70740.cfm. 7 Average monthly household consumption was Kip 189’319 in 1997/98 the latest year for which data is available. This and other data used to calculate affordability come from National Statistical Centre. The Households of Lao PDR. December 1999. 8 For more information see the AceS web site at www.acesinternational.com 9 Refiling refers to an operator taking [refiling] its international traffic to/through a third country where lower charges apply for forwarding of traffic to its ultimate destination country. 10 The Vientiane Times web site address is www.vientianetimes.la. Le Renovateur is hosted on the Laolink web site is: www.laolink.com/renovateur/renovat.htm. The KPL web site is at: http://asean.kplnet.net.
10 3. Lao Internet
3. Laos Internet
The Lao People’s Democratic Republic South East Nations (ASEAN) in 1997 faces huge barriers in Internet access has also brought a boost to the and use. First, since incomes are low, Internet. ASEAN has a number of the price of the equipment needed to projects that call on its member access the Internet is prohibitive. countries to establish Internet Second, even if Internet access was connectivity, notably the e-ASEAN affordable, telecommunication initiative
11 Lao PDR Internet Case Study
organizations were granted Figure 3.1: Internet users in Laos permission by the government to operate their own Very Small Aperture Terminal (VSAT) satellite connections 12'000 2.0 to the Internet using the Société 1.8 Internationale de Télécommunications 10'000 1.5 Aéronautiques (SITA) network. 8'000 10'000 1.2 In August 1998, Globenet
12 3. Lao Internet
the amount of use each Internet café except for licensed telecom terminal receives, Internet cafés providers. The MCTPC has indicated arguably provide more hours on the that if an IP Telephony service Internet than any other form of provider gets approval from LaoTel, Internet access in Laos. then this would be acceptable.
3.3 Who is in charge? The MoIC is theoretically responsible for approving content providers. The Lao National Internet Committee However as there are so few Laotian (LANIC) was formed in 1998 to sites it has not exercised this regulate and establish Internet policy responsibility. The MoIC is equally for the nation. It was created based responsible for content and access on an Internet Decree issued by the to pornographic and politically Prime Minister. The committee sensitive sites is meant to be blocked consists of the Ministry of via a firewall. Communication, Transportation, Posts and Construction (MCTPC); the 3.4 How many gateways? Ministry of Information and Culture (MoIC); the Ministry of Interior; the Up to now, ISPs have been allowed Ministry of Foreign Affairs (MoFA) to provide their own international and STEA. gateways. Each of the four Internet providers (three commercial and one It was never clear if LaoTel’s government) has its own exclusivity included Internet services international connection (see Table especially since GlobeNet and PlaNet 3.1). Since Laos is landlocked, obtained their license from LANIC. connectivity is mostly via satellite. In any case this is no longer an issue PlaNet/ETL, LaoTel and STEA have as LaoTel’s exclusivity ended in symmetrical connectivity while October 2001. It appears that LANIC GlobeCom has more incoming is ready to grant a limited number bandwidth than outgoing. LaoTel was of additional ISP licenses. paying around US$ 3’100 per month for its international Internet Internet cafés are theoretically bandwidth in November 2001. supposed to be licensed. Most operate without a license but are The government is keen to merge all tolerated. Few have occasionally gateways into a single connection been shut down for overtly providing with a capacity of two Mbps. This IP Telephony. IP Telephony is illegal, ‘One Gateway’ project may be initially hosted and managed by STEA, then handed over to MCTPC Table 3.1: Laos international Internet connectivity under the new regulations. So far, November 2001 little progress has been made in this area. One advantage might be to ISP International Note Bandwidth consolidate bandwidth requirements, (kbps) thus theoretically obtaining cheaper prices. However, the main motive for GlobeCom 640 in Via Mabuhay Satellite the government seems to be the 220 out desire for control, both over content Lao Tel 512 Via SingNet and potential revenue. It is alleged that firewalls are already in place STEA 512 Via Thaicom thus restricting access to sensitive PlaNet/ETL 2’000* Fibre opitc connection web sites. Disadvantages of the to Bangkok (CSC) single gateway proposal would be a lack of redundancy as well as the TOTAL 1’664 in inability of ISPs to plan their network 1’244 out growth and manage their quality of service and their expenses. In any Note: For PlaNet/ETL actual bandwidth in February 2002 was 256 kbps. case, STEA currently lacks sufficient Source: ITU adapted from ISPs. technical staff to maintain the proposed gateway.
13 Lao PDR Internet Case Study
3.5 How much does it cost? is the technical contact. STEA has sold the rights to market (and sell) second Dial-up Internet access tariffs are priced level domain names on the .la ccTLD in United States dollars. Telephone (country code Top Level Domain) to a usage charges also apply; they are company called Sterling, who are 45 Kip per minute (34 US cents per marketing it as “Los Angeles own hour). Table 3.2 shows dial-up Internet domain” and selling each domain for prices for LaoTel as well as the US$ 100. Under the agreement with corresponding telephone usage charge. Sterling, STEA is meant to be set up Unlimited dial-up packages are not and trained to sell third level domains currently available nor are pre-paid on the .la ccTLD (ie, .com.la, .org.la, cards. Dial-up Internet pricing is etc.). Although the deal was signed two relatively expensive for the South East years ago, STEA still has not sold or Asia region with Lao having the second activated any third level domains. Also, most expensive tariffs after Cambodia. despite Sterling having sold second level Internet cafés in Lao were charging .la domains for US$ 200 more than between 80 – 200 Kip per minute (US$ twelve months ago, these domains are 0.55 – US$ 1.51 per hour) for Internet still not functioning and Sterling are now access in November 2001. asking for renewals of US$ 100. The Prime Minister’s Office and MCTPC are GlobeNet charges US$ 200 per month currently trying to regain full control of for its wireless solution. The advantage the .la ccTLD. is that the service is flat fee so heavy users do not have to pay local telephone As a result, there are no known Laotian charges. A typical installation costs organizations that are using the ‘.la’ around US$ 2’500. domain name. There are about 50 sites for Lao companies and organizations 3.6 Laos or Los Angeles? using PlaNet’s laopdr.com, laopdr.net and laopdr.org third level domain level According to Network Solutions, STEA service (i.e., www.beerlao.laopdr.com). is the registrant for the ‘la’ domain name Most other local sites use second level while SingNet, Singapore Telecom’s ISP, .com or .net domain names.
Table 3.2: Internet dial-up prices in Lao PDR
LaoTel, November 2001
Monthly Telephone Package Hours included ISP charge usage charge Total
Starter 1 6 $6.00 $2.04 $8.04 Casual 1 10 $12.00 $3.40 $15.40 Casual 2 15 $18.00 $5.11 $23.11 Pro 1 25 $26.00 $8.51 $34.51 Pro 2 35 $33.00 $11.91 $44.91 Busi Pro 50 $41.00 $17.02 $58.02
Note: Telephone usage charges converted to US$ at rate on 1 November 2001 (7'932 kip per US$). Source: ITU adapted from LaoTel.
11 Chin Saik Yoon. “PAN Laos: Connecting Vientiane to the Internet.” IDRC Reports. 16 January 1998. http://www.idrc.ca/reports/read_article_english.cfm?article_num=179. 12 For more on Globenet and early networking initiatives in Lao PDR see Paula Uimonen. “Connecting Laos: Notes from the Peripheries of Cyberspace.” Proceedings of the 9th Annual Conference of the Internet Society. June 1999. http://www.isoc.org/inet99/3a/3a_2.htm. 13 “dotLA Inc. to Register .la Top.” 12 December 2000. http://asia.internet.com/asia-news/article/0,,161_675601,00.html.
14 4. Sector absorption
4. Sector absorption
This study has analyzed Information for doing this. This lack of awareness and Communication Technology (ICT) applies to more sophisticated developments in Laos by looking at the applications, as well as to basic telecom and the Internet markets, applications that could help to facilitate including the infrastructure and the many people’s lives. One might think regulatory framework. Another way of of applications for the rural population looking at Internet developments is to that could provide them with weather focus on how it is being used. How do forecasts or agricultural market prices. the different sectors of the government and the economy make use of the A third barrier to the development of Internet? Making use of the Internet the Internet in general and its use in refers to two things. On the one hand, different sectors in particular, is the lack the Internet may be used as a direct of coordination between different tool, to facilitate administrative tasks, government ministries and agencies. to communicate, or to research. As an While different agencies and groups indirect tool, the Internet may be used seem to be working on ICT related to promote the purpose of a sector, for projects, there is no overall ICT Master example, through a web site or by Plan. It is not clear whether different providing or making use of a particular interest groups are competing with each application. In both cases, the Internet other or whether the government is may allow a government or the private facing a lack of communication. It is sector to increase efficiency, provide obvious, though, that the government new services and expand its activities. needs to define and distribute responsibilities. Laos was one of the last South East Asian countries to adopt the Internet. The above-mentioned barriers are Its recent introduction manifests itself characteristic for all sectors of the in limited use of ICT. Government economy and help explain why so little ministries make little use of the global sector absorption of the Internet has network and the business sector has taken place. equally been slow to implement Internet related applications. There are several 4.1 E-government reasons, the most obvious one (but not necessarily the most obstructive) is the One of the main barriers to Internet lack of infrastructure. Nonetheless, only development in Laos is the lack of a fraction of the existing PCs are actually coordination. It is not quite clear which connected to the Internet. Few agency or ministry is in charge of ICT government officials use the Internet policies and there seems to be a and if they do, it is mainly to exchange shortage of communication between e-mail. This means that the benefits of different parts of the government. the Internet, where it is used, remain Friction over the scope of responsibilities rather subtle (after all, e-mail is very seems to exist especially between the similar to fax). Science, Technology and Environment Agency (STEA) and the Ministry of Which takes us to the second barrier to Communications, Transport, Posts and ICT development in Laos. It appears Construction (MCTPC). that there is an insufficient understanding of the benefits and the In 1996 STEA was given the potential of the Internet. Although responsibility over IT and the mandate government officials agree that the to prepare Laos for the 21st century. The Internet is important and needs to be “Lao National Plan on IT: Master Plan expanded, there are no concrete plans up to Year 2000”, drafted by STEA,
15 Lao PDR Internet Case Study
called for a series of projects, including staff). There are plans to install an the computerization of the government. intranet as well as a Wide-Area- STEA was to develop different online Network (WAN). This network would applications for the general public, support a Management Information connect all ministries with each other, System (MIS) and increase overall and develop uniform software standards efficiency, for example, by allowing to guarantee compatibility within the officials to coordinate different tasks government. None of these plans have, and projects. The Ministry has however, materialized and while the benefited from several foreign Master Plan ended in 2000, there was development projects, and donors no follow-up.14 provided most hardware. Between 1992-1998 the World Bank supplied Currently the MCTPC, together with the the Ministry with personal computers Japanese government, is working on a and in 1999/2000, l’Agence de la Telecommunication Master Plan that will Francophonie set up a basic intranet cover the period up to 2015. One of and provided technical assistance. the objectives of this plan, which will Today the Ministry is partly also cover IT policies, is to clarify the interconnected and eleven provincial responsibilities within the government. offices are able to dial-up to the head According to the MCTPC it will be in office in Vientiane and exchange charge of all ICT policies. information. There are some 140 PCs, of which 40 are Internet–compatible. 4.1.1 Government as a user Currently, the Ministry has three dial- up connections but it is hoping to Government as a user covers the ways eventually set up an Internet in which the administration uses ICT connection in every office (usually technologies internally to increase its shared by between 3-5 people). efficiency. The Lao government does not extensively use the Internet or ICT The MoE, as other ministries, has a in general. Although most ministries ‘top-to-bottom’ approach to the have some kind of computer network, development of the Internet and its they are very basic, allowing them to potential applications. It will first try share printers and files. Not all to develop ICT within the Ministry ministries have Internet access and itself, then within the University and even the MCTPC is limited to seven only then within the schools. Internet accounts. Most other ministries with Internet access have 4.2.2 Primary and secondary between 1-3 PCs, limiting access to schools the top administration. Consequently, only few government employees have No public primary or secondary their own e-mail account at work. schools in Laos have access to the Although most ministries are planning Internet. While the MoE plans to to set up their own web site, none of provide two secondary schools in each them are currently online. The Foreign province with a computer and Internet Investment Management Committee, access by the year 2005, they will with assistance of the World Bank, primarily be provided to administrative have an investment portal which staff. There are also plans to teach provides information for investors and basic computer courses at the online investment applications secondary level and some teachers (www.invest. laopdr.org). from Laos will participate in training courses in Singapore and Malaysia. 4.2 Education Currently, IT is not part of the national curriculum and if students want to 4.2.1 The Ministry learn how to use a computer or the Internet, they have to do so outside The Ministry of Education (MoE) their class schedule. employs about 250 people in Vientiane and some 35 people in each of the Many involved in ICT in Laos see 18 provinces (excluding teaching young people as the driving force
16 4. Sector absorption
behind the Internet. While Internet a driving force in ICT. NUOL has cafés used to be mainly in ‘tourist 11’740 students and 1’486 staff, zones’, this is no longer the case. 790 of which are teaching staff.16 The Places with public Internet access are Japanese government has funded a ‘trendy’ among urban youth. Equally computer lab at NUOL that has around popular are private training 20 PCs connected to a LAN and access institutions. Here anyone can learn to the Internet. The facility is located how to use PC applications, improve in the Faculty of Engineering and is their typing skills, and advance their primarily intended for their use. English—skills most often requested However, paying courses are also on the job market. These available to others. There are also a developments suggest that the few other locations at the university educational system is not adapted to with dial-up Internet access but these today’s requirements and demand are mainly limited to faculty and staff since important skills are being and primarily used for administrative acquired outside the formal network. purposes.
There is a non-governmental 4.2.4 IT training and manpower organization (NGO) project providing Laos lacks qualified IT manpower. ICT in a Laotian secondary school. This Most government and private sector initiative involves Schools Online (a US IT staff studied abroad, with the help non-profit organization), Jhai of foreign grants. Lao students Foundation (composed of US Vietnam continue to go to foreign universities war veterans), and the local community in countries such as Australia, 15 of the village of Phon Song. They are Malaysia and Singapore. Others get establishing an Internet Learning Centre training within Laos, through the at the local Phon Mee secondary school. private sector, with several private A classroom has been renovated and colleges and companies offering PCs set up. Internet access will be specialized IT training courses. NUOL provided once a telephone line is has introduced an undergraduate installed. Some 40 teachers and programme in Computer Science and students have received training. In recently graduated its first batch of order to defray costs, the centre will be students. opened after school hours for public and business use. One of the country’s most ambitious projects is the Cisco Network Academy 4.2.3 University Programme (CNAP).17 Through CNAP, Cisco Systems, in cooperation with Laos’ first and only public university, governments, the private sector and the National University of the Lao PDR educational institutions, provides IT (NUOL), was set up in 1995. As training in the area of computer opposed to many other countries, the networks. The project, which is academic sector in Laos has not been currently discussed by Cisco, the Lao government, the UNDP and the university, would provide a useful Table 4.1: Laos at school source of training. It is not quite clear Number of primary and secondary students yet where the Academy would be and teachers, 2000 hosted, but potential partners include NUOL and the Science, Technology and Environment Agency (STEA). Students Teachers Total 1’091’000 40’000 4.3 Health Primary level 831’000 28’000 Secondary The country has difficulties providing and higher 260’000 12’000 basic health facilities to its citizens and secondary Internet access is not a priority. A level Local Area Network (LAN) for the Ministry of Health is being established. Source: National Statistical Centre So far, with the help of the World
17 Lao PDR Internet Case Study
Table 4.2: Laos Health Facts signatures, validity of 2000 electronic documents or Infant mortality rate (%) 8.7 definition of Life expectancy at birth (years) 54.7 computer crime. Number of hospitals 681 Apart from some hotels, few Number of health care centers 700 businesses have Number of doctors 1’517 their own web sites. The Doctors to population ratio 1:3’427 Ministry of Number of pharmacies 2016 Commerce and Tourism (MoCT) Percentage of households more than 8 started using the 8 hours away from a hospital (1997/98) Internet only about four Source: Ministry of Public Health and National Statistical months ago. The Centre. Trade Promotion Centre (part of the MoCT) is Health Organization, each of the currently developing a web site to Ministry’s six departments has promote Lao products. This will Internet access. Internet access is include a directory of trade companies essentially limited to top as well as a database of export management. The 200 Ministry’s staff products. Eventually, this could in the Vientiane head office has a total develop into an e-commerce site. of 84 PCs, but not all are Internet compatible. Tourism has great potential as an e- commerce trendsetter for Laos. The 4.4 E-commerce number of tourists visiting Laos has been increasing around 20 per cent a Laos faces several barriers in year, from less than 10’000 in 1991 implementing e-commerce: to over 700’000 in 2000. They spent US$ 113 million, contributing some • Given the low number of Internet 6.6 per cent to the country’s Gross users, the local market for buying Domestic Product. Most overseas and selling online is limited. visitors come to Lao to learn more about the country—there are no beach • The national banking system is resorts—and its unique clulture. Most not adapted to commercial online likely there are the type of people that transactions and none of the Lao use the Internet, navigate Laotian web banks provide credit cards. sites and book their holidays online; if they could. This might also reduce • The country’s infrastructure is revenues lost to Thai and Vietnamese not yet equipped to provide and tour operators that have taken the support e-commerce opportunity and advertise side trips applications. to Laos. Recognizing this potential, the Lao National Tourism Authority has • There is only a small private established a web site
18 4. Sector absorption
14 Boualoykhong Chansavat and Phet Sayo. E-readiness assessment in the Lao PDR. UNDP/UNV Vientiane, Lao PDR, 2001 at http://www.undplao.org/unv/pdf%20Reports/IT%20Assessment.pdf. 15 For more information, see www.schoolsonline.org/whatwedo/laos.htm. 16 E-readiness assessment in the Lao PDR, Prepared by Boualoykhong Chansavat and Phet Sayo, UNDP/UNV Vientiane, Loa PDR, 2001 at http://www.undplao.org/unv/pdf%20Reports/IT%20Assessment.pdf 17 For more information on the CNAP, see http://www.cisco.com/warp/public/779/edu/academy/. 18 A recent newspaper article quotes the Chief of the Vientiane Tourism Office as attributing the rise in tourism revenues to the government’s tourism web site: “This is because we advertised our tourist spots on the Internet web-site of the National Tourism Authority.” Phonsavanh Vongsay. “Tourist numbers on the rise.” Vientiane Times. 6-8 November 2001.
19 Lao PDR Internet Case Study
5. Conclusions
5.1 State of the Internet • connectivity infrastructure: a measure based on international The Mosaic Group
• geographic dispersion: a Lao PDR values for these dimensions measure of the concentration of are shown in Figure 5.1. the Internet within a nation, from none or a single city to Pervasiveness is rated at level 2, nationwide availability. Established. At September 2001, there were an estimated • sectoral absorption: a 9’000 Internet users in the country or measure of the degree of 0.17 per cent of the population. utilization of the Internet in the education, commercial, health Geographic Dispersion is rated at care and public sectors. level 1.5, between Single location and
Figure 5.1: State of the Internet in Laos
Dimension Value Pervasiveness 4 Pervasiveness 2 3 Sophistication Dispersion Geographic Dispersion 1.5 2 1 Sectoral Absorption 1 0 Connectivity Infrastructure 1.5 Organizational Infrastructure 2 Organizational Absorption Sophistication of Use 1
Connectivity TOTAL 9
Note: The higher the value, the better. 0 = lowest, 4 = highest. Source: ITU adapted from Mosaic Group methodology.
20 5. Conclusions
Moderately dispersed. There is only administered by a US company based one Internet Point of Presence. in Los Angeles is shrouded in mystery. Internet access is however available But the fact remains that a country’s nationwide for the price of a local call. Internet name is as much part of the Nonetheless the low number of nation as its flag or national anthem. telephone lines and computers, Gaining control of the domain name particularly outside the capital, are is particularly important for the serious barriers. development of government web sites whose names should reflect where Sector Absorption is rated at they are. A consultant should be hired level 1.0, Rare. This ranking is a to investigate the situation and function of the type of connectivity in propose solutions, in co-operation education, government, health care with the ITU and ICANN. and business. Although the national university has Internet access, Although there is a domestic standard accounts are very limited. Hardly any for the Lao font (around 80 per cent primary or secondary schools have of the market uses Lao Font for Internet connections. Few Windows), it does not match government departments have web international standards nor is it sites. Usage in the business sector is designed well for use on the Internet. minimal. Efforts should be made to make a common standard based on computer The Connectivity Infrastructure is industry conventions. at level 1.5, between Thin and Expanded. International connectivity 5.2.2 Internet for Development is 1.6 Mbps incoming and 1.2 Mbps outgoing. There is no nationwide The international community is keen Internet backbone nor is there a to reduce the Digital Divide. As a Least domestic Internet exchange. There Developed Country (LDC), Laos could are few leased lines in place and there benefit from multilateral, bilateral, is no ADSL or cable modem for Non-Governmental Organization broadband local access. (NGO) and private sector ICT projects. The government should encourage the The Organizational Infrastructure international community to help Laos is at level 2, Controlled. There are two improve its access to ICT. One step operational ISPs. Entry into the ISP would be to elaborate an ICT sector market is not possible at this time strategy that outlines key areas of although it appears that may be development that development changed soon. agencies could assist with. For example, this might include Sophistication of Use is at level 1, connectivity in schools, a rural Minimal. The most popular information project and e-government applications among most users appear applications. to be e-mail, chat, Internet telephony and information retrieval. There are 5.2.3 ‘NEM’ing the Internet few local language web sites nor is there significant application The New Economic Mechanism (NEM) development. introduced liberalization to the economy. This should now be applied 5.2 Recommendations to the Internet market. Now that the exclusivity period of Lao Telecommu- 5.2.1 Making it Lao nication has ended (October 2001), the telecommunication and Internet Two intrinsically Laotian computer market is theoretically open to issues must be dealt with: its .LA competition. Indeed there are signs domain name and standardization of that this is happening. This process the Lao font. Laos must regain its needs to be accelerated and made domain name. The story of how the clear. Additional suppliers of .LA domain name ended up being telecommunication and Internet
21 Lao PDR Internet Case Study
infrastructure are badly needed since large cities and they are mainly the existing level is so low and prices, frequented by foreigners. They are also for Internet access at least, are too expensive for the average Laotian. relatively high. It might be argued that a relatively small market like Laos One of the reasons for the lack of an cannot handle too many suppliers and Internet universal access policy is that serious operators might be that the government has been discouraged from investment if there hesitant to proliferate the Internet. are too many competitors. Another While the Internet has some concern is that there is a risk of negative aspects, these are more infrastructure duplication and thus than outweighed by the positive. possible waste of resources that could Furthermore, the Internet can be be used for other important activities. used in a decisive way to alleviate Possible solutions include extracting some of Laos’ development concrete infrastructure and universal bottlenecks. Interestingly, the lack of access commitments in return for access to information and knowledge market exclusivities and encouraging was cited as a significant barrier to operators to collaborate on major civil generating more income in villages.19 works projects (e.g., sharing The Internet could help to overcome backbones, etc.). that through its window to the world of information. Another way the 5.2.4 Universal access Internet can help with development is to overcome the lack of road A policy on universal access to the transport in Lao. While it is difficult to Internet needs to be formulated. physically get newspapers and Presently only a small number of schoolbooks to rural communities, Laotians have access to the Internet. these items could be delivered via the Few people have or could afford dial- Internet. The government should up Internet access. Internet access in create a network of public Internet schools is practically non-existent. access points so that its citizens can There are a few Internet cafés in the access the information they need.
19 National Statistical Centre. The Households of Lao PDR. December 1999.
22 Annexes
Annex 1: List of meetings
No. DATE TIME ORGANIZATION
Ministry of Communications 1 05/11/01 09:00 am Transport, Posts and Construction (MCTPC)
2 05/11/01 13:30 pm Lao Telecommunications (Laotel)
3 06/11/01 09:00 am UNDP Laos
4 06/11/01 10:30 am National Statistical Center
ETL, Engineer, Planning and 5 06/11/01 02:00 pm Development Division
6 06/11/01 15:30 pm JICA, Advisor to ETL
Science, Technology and 7 07/11/01 09:00 am Environment Agency (STEA)
8 07/11/01 10:00 am Ministry of Health
9 07/11/01 11:00 am Ministry of Commerce and Tourism
10 07/11/01 01:30 pm GlobeNets (ISP)
11 08/11/01 08:00 am Ministry of Education
12 08/11/01 11:30 am Ministry of Information and Culture
23 Lao PDR Internet Case Study
Annex 2: Acronyms and abbreviations
ACSC Asia Cellular Satellite Company ASEAN Association Of South East Asian Nations ccTLD Country code top-level domain CNAP Cisco Network Academy Programme CSC China-Singapore Cable (network) EPL Enterprise of Post Lao EPTL Entreprise of Post and Telecommunications Lao ETL Enterprise of Telecommunication Lao GDP/GNP Gross Domestic Product/Gross National Product GSM Global System for Mobile Communication HDI Human Development Index ICT Information and Communication Technology IDRC Canadian International Development Research Centre ISP Internet Service Provider IT Information Technology kbps Kilo bits per second LAN Local Area Network LANIC Lao National Internet Committee Lao PDR Lao People’s Democratic Republic LaoTel Lao Telecommunications Company Limited LDC Least Developed Country LST Lao Shinawatra Telecom Company Ltd MCTPC Ministry of Communication, Transport, Post and Construction MIS Management Information System MoCT Ministry of Commerce and Tourism MoE Ministry of Education MoIC Ministry of Information and Culture MOU Memorandum of Understanding NGO Non-governmental organization NUOL National University of the Lao PDR PAN Pan Asia Networking SITA Société Internationale de Télécommunications Aéronautiques
24 Annexes
STEA Science, Technology and Environment Agency UNDP United Nations Development Programme VoIP Voice over Internet Protocol VSAT Very Small Aperture Terminal WAN Wide Area Network
25 Lao PDR Internet Case Study
Annex 3: Useful links
Organization Website Telecom operator Lao Telecommunications (LaoTel) www.laotel.com ISPs GlobeNet www.laonet.net PlaNet Online www.planetonline.laopdr.com Mass media Vientiane Times www.vientianetimes.com Rénovateur www.laolink.com/renovateur/renovat.htm Lao News Agency (Khaosan Pathet Lao) asean.kplnet.net Academic SchoolsOnline Laos www.schoolsonline.org/whatwedo/laos.htm# Portals Vientiane Times www.vientianetimes.com/Others.html Lao Net www.global.lao.net Other Lao PDR Embassy to the United States of America www.laoembassy.com Lao PDR Permanent Mission the United Nations www.un.int/lao UNDP Lao www.undplao.org Lao National Tourism Authority www.mekongcenter.com Japan International Cooperation Agency (JICA) Laos www.jica.laopdr.org/jicalaos.html
26 Annexes
Annex 4: Framework dimensions
Table 1: Pervasiveness of the Internet
Level 0 Non-existent: The Internet does not exist in a viable form in this country. No computers with international IP connections are located within the country. There may be some Internet users in the country; however, they obtain a connection via an international telephone call to a foreign ISP.
Level 1 Embryonic: The ratio of users per capita is on the order of magnitude of less than one in a thousand (less than 0.1%).
Level 2 Established: The ratio of Internet users per capita is on the order of magnitude of at least one in a thousand (0.1% or greater).
Level 3 Common: The ratio of Internet users per capita is on the order of magnitude of at least one in a hundred (1% or greater).
Level 4 Pervasive: The Internet is pervasive. The ratio of Internet users per capita is on the order of magnitude of at least one in 10 (10% or greater).
Table 2: Geographic Dispersion of the Internet
Level 0 Non-existent. The Internet does not exist in a viable form in this country. No computers with international IP connections are located within the country. A country may be using UUCP connections for email and USEnet.
Level 1 Single location: Internet points-of-presence are confined to one major population centre.
Level 2 Moderately dispersed: Internet points-of-presence are located in at least half of the first-tier political subdivisions of the country.
Level 3 Highly dispersed: Internet points-of-presence are located in at least three-quarters of the first- tier political subdivisions of the country.
Level 4 Nationwide: Internet points-of-presence are located in all first-tier political sub-divisions of the country. Rural dial-up access is publicly and commonly available and leased line connectivity is available.
Table 3a: Sectoral Use of the Internet
Sector Rare Moderate Common
Academic - primary >0-10% have leased-line 10-90% have leased-line >90% have leased-line and secondary schools, Internet connectivity Internet connectivity Internet connectivity universities
Commercial- >0-10% have Internet 10-90% have Internet >90% have Internet businesses with > 100 servers servers servers employees
Health-hospitals and >0-10% have leased-line 10-90% have leased-line >90% have leased-line clinics Internet connectivity Internet connectivity Internet connectivity
Public-top and second >0-10% have Internet 10-90% have Internet >90% have Internet tier government servers servers servers entities
27 Lao PDR Internet Case Study
Table 3b: The Sectoral Absorption of the Internet
Sectoral point total Absorption dimension rating 0 Level 0 Non-existent
1-4 Level 1 Rare
5-7 Level 2 Moderate
8-9 Level 3 Common
10-12 Level 4 Widely used
Table 4: Connectivity Infrastructure of the Internet
Domestic International Internet Access Methods backbone Links Exchanges Level 0 Non- None None None None existent
Level 1 Thin ≤ 2 Mbps ? 128 Kbps None Modem
Level 2 Expanded >2 >128 kbps 1 Modem – 200 Mbps -- 45 Mbps 64 Kbps leased lines
Level 3 Broad >200 Mbps >45 Mbps More than 1; Modem -- 100 Gbps -- 10 Gbps Bilateral or Open > 64 Kbps leased lines
Level 4 Immense > 100 Gbps > 10 Gbps Many; Both < 90% modem Bilateral and Open > 64 Kbps leased lines
Table 5: The Organizational Infrastructure of the Internet
Level 0 None: The Internet is not present in this country.
Level 1 Single: A single ISP has a monopoly in the Internet service provision market. This ISP is generally owned or significantly controlled by the government.
Level 2 Controlled: There are only a few ISPs because the market is closely controlled through high barriers to entry. All ISPs connect to the international Internet through a monopoly telecommunications service provider. The provision of domestic infrastructure is also a monopoly.
Level 3 Competitive: The Internet market is competitive and there are many ISPs due to low barriers to market entry. The provision of international links is a monopoly, but the provision of domestic infrastructure is open to competition, or vice versa.
Level 4 Robust: There is a rich service provision infrastructure. There are many ISPs and low barriers to market entry. International links and domestic infrastructure are open to competition. There are collaborative organizations and arrangements such as public exchanges, industry associations, and emergency response teams.
28 Annexes
Table 6: The Sophistication of Use of the Internet
Level 0 None: The Internet is not used, except by a very small fraction of the population that logs into foreign services.
Level 1 Minimal: The small user community struggles to employ the Internet in conventional, mainstream applications.
Level 2 Conventional: The user community changes established practices somewhat in response to or in order to accommodate the technology, but few established processes are changed dramatically. The Internet is used as a substitute or straight-forward enhancement for an existing process (e.g. e-mail vs. post). This is the first level at which we can say that the Internet has "taken hold" in a country.
Level 3 Transforming: The user community's use of the Internet results in new applications, or significant changes in existing processes and practices, although these innovations may not necessarily stretch the boundaries of the technology's capabilities. One strong indicator of business process re-engineeering to take advantage of the Internet, is that a significant number (over 5%) of Web sites, both government and business, are interactive.
Level 4 Innovating: The user community is discriminating and highly demanding. The user community is regularly applying, or seeking to apply the Internet in innovative ways that push the capabilities of the technology. The user community plays a significant role in driving the state-of-the-art and has a mutually beneficial and synergistic relationship with developers.
29 Lao PDR Internet Case Study
Annex 5: Bibliography
Paula Uimonen. “Connecting Laos: Notes from the Peripheries of Cyberspace.” Proceedings of the 9th Annual Conference of the Internet Society. June 1999. At http://www.isoc.org/inet99/3a/3a_2.htm
Phet Sayo and Boualaykhong Chansavat. Lao E-readiness assessment in the Lao PDR. UNDP. 2001. At http://www.undplao.org/UNV/pdf%20Reports/IT%20Assessment.pdf.
National Statistical Centre. Basic Statistics of the Lao PDR 2000. State Planning Committee. Vientiane, 2001.
National Statistical Centre. Basic Statistics of the Lao PDR 1975-2000. State Planning Committee. Vientiane, May 2000.
National Statistical Centre. Results from the Population Census 1995. State Planning Committee. Vientiane, April 1997.
National Statistical Centre. The Households of Lao PDR. Social and economic indicators. Lao Expenditure and Consumption Survey 1997/98. State Planning Committee. December 1999.
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