Thailand Canada Telecentre Project

1
Thailand Canada Telecentre Project

• Delivery of ICT Services in a Commercially
  Sustainable Manner in Rural and Remote as well
  as Unserved/Underserved Areas
• Warren Wong
• July 2002

2
Basic Facts

• Project Period April 2001 to June 2003
• Review Set-Up 6 T-centres April 01-March 02
• Operate Review January 02-March 03
• Evaluate April 03-June 03
• 300,000 contribution from CIDA-INC
• Implementation by
• Hickling (intl development ICT consulting)
• Loxley (communications information technology)
• TDG (people side of ICT)

3
General Approach

• Promote Universal Access to ICT services in
  villages
• by locating several phones
• and if possible computers with internet access
• at one location that is
• easily accessible to the community
• Often referred to as a telecentre

4
General Approach
5
Objectives

• Primary To demonstrate that valuable Information
  and Communications Technology (ICT) services can
  be delivered to people in rural and remote, as
  well as unserved and underserved, areas in a
  commercially sustainable manner
• Secondary That the utilization of ICT services
• Can create jobs in rural and remote areas
• Allows end-users to make informed choices
• Is an effective way to enhance rural development
  efforts
• Helps promote the adoption of a supportive policy
  and regulatory environment

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TCTP Activities Overview
Long list of Potential communities
Availability of Telephone Lines
Short list of Potential communities
Community workshops
Community Action Plan
Telecentre Business Plan
Increased usage
Share Experience
Update Refresher Training
Telecentre
Telecentre Trains Community
Training Equip
Promote Usage
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• Telecentres providing structured and reliable ICT
  services
• Operated by local people with local
  entrepreneurial touch
• Using common set of key operational indicators
• With flexibility to incorporate local conditions
• Rely on peer pressure to increase usage and
  improve performance
• More participation enables more experiences, more
  experience sharing, learning from others

8

• Call volume Outward and Inward
• Revenue per line
• Service condition, service outages
• Computer revenue games, office, internet
• Typing service revenue
• Training revenue
• Telecentre Revenue
• Revenue per local resident
• Anecdotal, e.g., value of information, web sites

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• TCTP covers capital (one-time) costs
• E.g., phone services installation, computers,
  printer, modem, fax machine
• Telecentre covers operating (recurring) costs
• E.g., salary, electricity
• Except monthly ISP charge covered by TCTP
• Telecentre covers all operating costs, including
  monthly ISP charge, after one-year

10

• Initial 5-day training course in mid-January
  prior to launch
• Update/refresher training over the 12-month
  operational period
• Covers
• computer training (internet, word, excel)
• small business training
• financial management training
• telecentre management training.

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Telecentres Ownership

• Pong Non Formal Education Centre
• Ban Mae Womens Woodcarvers Assoc
• Jakraj PDA (Pop Commun Dev Assoc)
• Hang Hung Womens Association
• Hautanon TAO (Tambon Admin Org)
• Mae Ram TAO moved to
• Mae Hongsorn Non Formal Educ Centre

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(No Transcript)
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Preliminary ResultsProfit/Loss All Telecentres

• Initial two months in the black
• Last three months in the red, because
• Not all costs and revenues reported
• Lack of a market oriented revenue sharing
  arrangement
• Telephone cost has been greater than telephone
  revenue

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Preliminary ResultsProfit/Loss All Scenarios

• Original Revenue-Cost net (22K) THB
• Latest Revenue-Cost net (31K) THB
• Original Data with Revenue Sharing Scenario net
  1K THB
• Latest Data with Revenue Sharing Scenario net
  (8K) THB

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Preliminary ResultsPreliminary Profit/Loss All
Telecentres All Scenarios
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Preliminary ResultsMarket Oriented Revenue
Sharing Arrangement Scenario

• All Thai carriers are privatized and/or
  corporatized
• Inward calls are 3-4 times that of outward calls
• 20 commission on outward calls
• 10 commission on inward calls

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Preliminary ResultsMarket Oriented Revenue
Sharing Arrangement is Key

• Market oriented revenue sharing arrangement is
  the key factor to the financial sustainability of
  telecentres
• Add approx. THB 20,000 to telecentres bottom line
• Add approx. THB 40 to 60,000 in new revenue to
  Thai telephone companies

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Preliminary Results Revenue
19
Preliminary Results Costs
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Possible Measures to Improve PL

• Focus on human capacity development by enhancing
  computer training services (e.g., more courses,
  more trainers, different days / hours, more
  equipment)
• Focus on social and economic development by
  attracting local firms to use the business
  services (e.g., computer, printing, fax, email,
  internet).

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Possible Measures to Improve PL

• Reduce staff turnover in some t-centres by being
  more selective in the hiring.
• Provide rewards, monetary and non-monetary, to
  t-centre operators who perform well.
• We welcome other suggestions for improving the
  PL situation of the t-centres (contact
  information on last slide, thank you)

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Ban Mae T-Centre Womens Woodcarvers Association
Participatory community ICT needs workshops
Community Construction Opening
Ceremony Community donated 3 PCs
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Pong T-Centre Non Formal Education Centre
Participatory community ICT needs workshops
Pong T-Centre Signage Opening
Ceremony Community donated 5 PCs
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Hautanon T-Centre Tambon Administrative Organizati
on
Ms. Jitra Meethong, Chairperson Hautanon TAO
(Tambon Administrative Organization
Dr. Andrew McAllister, Canadian Ambassador,
Thailand Dr. Phiraphol Tritasavit, Deputy
Director General, DOLA
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Participatory Community ICT Needs Workshops
Hautanon
Jakraj T-Centre Population and Community
Development Association (PDA) Jakraj Bussakorn
Sangiemngam, Jakraj T-Centre Operator Trainer
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Thai Canada Telecentre Project

• Mini-payphone regular phone
  computer workstation fax machine
• TCTP web www.t-centre.com
• Warren Wong, Partner, David Barr, P.Eng.,
  Senior Associate, Hickling Corporation
• 150 Isabella Street, Penthouse Floor, Ottawa,
  Ontario, Canada, K1S 1V7
• Tel [phone]. Fax [phone].
  Email warrenw_at_hickling.ca dave.barr_at_sympatico.ca
  
• Dr. Jingjai Hanchanlash, Executive Vice
  President, Vasoontara Chatikavanij, Director,
• Technical Economic Cooperation, Loxley Public
  Company Ltd.
• 102 Na Ranong Road, Klong Toey, Bangkok 10110,
  Thailand
• Tel [phone]. Fax [phone].
  Email jingjai_at_loxley.co.th vasoonta_at_loxinfo.co.t
  h
• Dr. Don Richardson, Director, Galin Kora, Sr.
  Consultant, TeleCommons Development Group
• 361 Southgate Drive, Guelph, Ontario, Canada, N1G
  3M5
• Tel [phone]. Fax [phone].
  Email don_at_telecommons.com galin_at_telecommons.com