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Management of USAFs: Funding Streams


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This is the presentation for the sixth session of a workshop CTO developed on the Management of Universal Service Access Funds (USAFs), held in Cameroon. It provides information on the funding streams of existing USAFs and best practices.

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Management of USAFs: Funding Streams

  1. 1. Management of Universal Access Funds for Telecommunications Regulatory Board of Cameroon Module 6: Funding Streams 7 – 9 February 2011
  2. 2. Outline <ul><ul><li>Funding Streams </li></ul></ul><ul><ul><ul><li>USAASA </li></ul></ul></ul><ul><ul><ul><li>RCDF </li></ul></ul></ul><ul><ul><ul><li>USPF </li></ul></ul></ul><ul><ul><ul><li>GIFEC </li></ul></ul></ul><ul><li>Private-Public-People-Partnerships  </li></ul>
  3. 3. USAASA Funding Streams Annual contributions (US$) Total operators contributions (US$) 1998-2008 Total Distributions (US$) 1998-2008 18.4 – 23.5 million 81.8 million 29.2 million Funding Streams Sector Contribution 0.2% levy on operators’ revenues
  4. 4. RCDF Funding Streams Annual contributions 2008 (US$) Total contributions (US$) 2001-2008 Total Distributions (US$) 2001-2008 10.3 million 22.9 million 17.5 million Funding Streams Total contribution (from 2001-2008) Sector Contribution 1% levy on operators, postal service, couriers and ISPs’ revenues 68% US$ 15,622, 000 Grants World Bank, and other multi or bi-lateral agencies 32% US$ 7,300, 000
  5. 5. RCDF Donor Contributions <ul><li>Examples of Donor Contributions: </li></ul><ul><li>International Development Research Centre (IDRC) provided financing support for study on policies and strategies best suited to RCDF </li></ul><ul><li>The World Bank funds the ICT component of ERT Project </li></ul><ul><ul><li>The Government of Uganda produced the concept of the ERT Project because of the interaction between energy and ICT services </li></ul></ul><ul><ul><li>ICT component had the objectives to extend the telephone network in 154 sub countries, establish Internet PoPs in 32 districts and poll out MCTs in 20 selected districts </li></ul></ul>
  6. 6. USPF Funding Streams Annual contributions 2008 (US$) Total operators contributions (US$) 2004-2009 Total Distributions (US$) 2004-2009 44.2 million 146.8 million 18.2 million Funding Streams Sector Contribution 50% levy of annual operator’s levy 100% contributions Contributions from NCC Donations, loans and grants Income from Investments
  7. 7. USPF Funding Streams <ul><li>World Bank Contributions </li></ul><ul><li>In 2005 World Bank conducted an assessment of demand, preferences and affordability along with the status of the telecom sector, outlook and prospects for coverage, in order to identify regional challenges and the required size of the programme of intervention </li></ul><ul><li>The World Bank designed the project to initiate the fund and its processes of disbursement, as well as help assist tendering and licensing first pilot project </li></ul>
  8. 8. GIFEC Funding Streams Annual contributions 2008 (US$) Total contributions (US$) 2005-2008 Total Distributions (US$) 2001-2008 7.8 million 21 million 2.9 million Funding Streams Sector Contribution 1% levy on fixed and mobile operators 100% Parliament contributions Grants and donations
  9. 9. Public-Private-People-Partnership (4Ps) <ul><li>Public Private Peoples Partnerships (4Ps) is to bring together the unique strengths of the following to achieve improved ICT access: </li></ul><ul><ul><li>Governments </li></ul></ul><ul><ul><li>ICT regulators </li></ul></ul><ul><ul><li>ICT operators </li></ul></ul><ul><ul><li>Technology suppliers </li></ul></ul><ul><ul><li>Development partners </li></ul></ul><ul><ul><li>Financiers, investors </li></ul></ul><ul><ul><li>Local communities </li></ul></ul>Partnership
  10. 10. <ul><ul><li>Establish the necessary relationships between the various public, private and civil society stakeholders to form a strong and effective PPPP </li></ul></ul><ul><ul><li>Enable the PPPP to collaborate in the identification and moulding of workable business models , in order to leverage each partner’s strengths to deliver financially sustainable ICT access to the identified rural area </li></ul></ul><ul><ul><li>Increase awareness and understanding, among PPPP members, of innovative technologies , including ultra low-power technologies and renewable energy technologies, that can deliver sustainable ICT access to rural areas </li></ul></ul><ul><ul><li>Nurture local ownership for ICT initiatives, in order to ensure awareness, enthusiasm and demand for ICTs among the local beneficiary communities; and, </li></ul></ul><ul><ul><li>Produce a clear strategy and plan for each member of the PPPP, and for the PPPP as a collaborative whole, to commence pilot project implementation. </li></ul></ul>Public-Private-People-Partnership (4Ps)
  11. 11. <ul><li>4Ps: Nigeria COMARCI workshops </li></ul>Public-Private-People-Partnership (4Ps) Country Place Dates Delegates Nigeria Ibaden 18 – 19 February 2010 300 Nigeria Yola 24 – 25 February, 2010 300 Nigeria Awka 18 – 19 March, 2010 600 Nigeria Minna 15 – 16 April, 2010 500 Nigeria Kano 26 – 27 April, 2010 600 Nigeria Calabar 29 – 30 April, 2010 600
  12. 12. <ul><li>USAASA model for multi-stakeholder partnerships </li></ul>Public-Private-People-Partnership (4Ps): Example