Locating ICTs in Asia’s Low-Income Communities: Private Sector Initiatives to Address Digital Divide

Abstract

ICTs are said to play a crucial role in development and poverty reduction and this is especially articulated in national policies. Among developing countries, this perspective incorporates ICTs into the development agenda because of their relevance in transforming human activities and in presenting new opportunities for economic growth. Even if ICTs appear ubiquitous in this day and age, it still exists, the gnawing presence of digital divide and social exclusion. It is also argued that inequalities have increased since the late 1970’s both between countries, within countries and in both developed and developing nations. A considerable number of marginalized groups, such as rural folk, women, and low-income youth remain unreached by the benefits ICTs are supposed to offer. The vision of a so-called “information society for all” as stated in both developed and developing countries’ ICT policy documents today does not apparently include “all”.2 There are reasons to question both the local practices and the visions on ICT futures, and how the industry sector can play a role for ICT inclusion, how and on whose premises. Global visions and myths on possible prosperous ICT futures are continuously repeated, but there are attempts to problematize the mindsets and visions associated with ICTs for “development”.3 Going beyond the mere visions of access to all, the existing digital divides makes it appropriate to investigate how private sector-led ICT initiatives have approached locally marginalized groups in order to bring about ICT access, and what lessons can be learned. As Jayan Jose Thomas and Govindan Parayil (2008) experienced from their study in India, already existing social and economic divides can also be reproduced through incorporation of ICTs and new divisions are also created due to the workings of emerging economic conditions. It is important that the ICT and the telecommunication industry take these arguments into account when initiating digital access to excluded and marginalized groups in the future. Taking as point of departure private sector-led ICT initiatives, the paper seeks to examine the following questions: In what ways does the private sector address the digital divide and exclusion of marginalized groups in Asia’s low-income communities? What private sector-led initiatives by telecommunication operators touch upon the issues of digital divide and social inclusion? What are some issues pertaining to culture and human infrastructure which need to be tackled to ensure inclusion through ICT? Focus is on the experience of Telenor4 in Asia, particularly that of GrameenPhone which is one of its dynamic operating companies. A distinction needs to be made here between Grameen Bank and GrameenPhone especially in relation to the Village Phone Program. While Grameen Bank provides the micro-credit for women to start their phone business in the villages, GrameenPhone focuses on the technical and telecom-related aspects of the business. Both operate on a for-profit model. GrameenPhone caters to a wider customer base, a significant part of it are in low-income communities. The GrameenPhone CICs, in particular, operate on a franchise model whereby financial sustainability and self-liquidating operations by CIC entrepreneurs are critical. Setting up a CIC in a rural or semi-urban area by an entrepreneur involves an initial investment of 50,000 Bangladeshi Takas (approximately USD 732) financed either by Grameen Bank, NGOs providing micro-credit, or other local financing institutions. Revenues for the CICs are generated from Internet browsing or specific information search, e-mail, net telephony, CD burning, fax and scanning, digital photography, flexi load for mobile phones, and other services. The article draws on empirical research using in-depth interviews, focus group discussions, observation and home visits conducted on ICT user and non-user projects in Bangladesh from July 2007 to November 2008. Fieldwork was done in semi-urban and rural areas in Bangladesh, namely, Dhaka district, Chittagong, Cox’s Bazaar, Sylhet, Jessore, Sylhet, and Khulna. These were done in phases with Community Information Centres (CICs) as entry point in understanding lifestyles, perceptions, needs, and behaviour of people in local communities especially as they relate to Internet and mobile phone usage.