Telecentres Around the World: Issues to be Considered and Lessons Learned. Written by

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1 Telecentres Around the World: Issues to be Considered and Lessons Learned Written by Scott McConnell ICT Development Group For CIDA s Canada-Thai Telecentre Project May 2001

2 1 Table of Contents 1. INTRODUCTION 3 2. ASPECTS OF TELECENTRE SUSTAINABILITY (CONDITIONS NEEDED FOR TELECENTRES) 3 3. SELECTION OF TELECENTRE SITES Selecting Sites in Partnership with Existing Initiatives 4 4. SELECTION OF OPERATOR/MANAGEMENT GROUPS 4 5. EQUIPMENT USED IN THE TELECENTRES 4 6. GENDER AND TELECENTRES 5 7. FINDINGS OF TELECENTRE ACTIVITIES Importance of Training Telecentre Use Popularity of services Smaller communities can be better Telephone use dominates Sensitization Leads to Broader Usage Decentralized Services for Government and Others Age and Gender of Telecentre Users Importance of Community Support Adapting to Meet the Needs of the Community Creating a Forum for Operators and Managers The Need for Information Content Providers Telecentres Enabling Local Economic Development 8 8. MONITORING AND EVALUATION: 9

3 2 8.1 Indicators and Measures for Telecentres What to measure in a telecentre? Measuring Financial Sustainability of Telecentres Calculating Willingness to Pay for Telecommunications Services CHALLENGES TO TELECENTRE PROGRAMMES: HOW TO PROMOTE TELECENTRES? 11 BIBLIOGRAPHY 12

4 3 1. Introduction This paper provides the reader with an overview of many of the issues related with telecentre initiatives around the world. It is intended to convey an understanding of the context in which the current CIDA Inc. and NECTEC telecentre projects are being undertaken in Thailand. While the review of recent telecentre literature conducted for this paper is by no means exhaustive, it does represent many of the issues facing telecentre project planners and proponents today. For the purposes of this paper, a telecentre is defined as a community based structure providing telephone service along with access to other information and communication technology (ICT) services, which may include fax, photocopier, computers, and the world wide web (WWW). 2. Aspects of Telecentre Sustainability (Conditions needed for telecentres) The literature identifies numerous components required for the sustainable implementation and operation of telecentres. These include: a) Technical component, which includes telephone lines, electricity supply and servers (Baron, 1999, p. 9); b) Cultural component, which includes consideration of social and historical characteristics; pressing needs; cultural outlook; space and timing; and levels of education and literacy (Baron, 1999, p. 9); c) Economic component, which includes consideration of income levels and people s ability to pay; d) Political component, which includes consideration of participatory mechanisms; political networking and interaction; and local power relationships (Baron, 1999, p. 9; Delgadillo and Borja, 1999, p. 5); e) Training component, which includes information literacy training to transfer computer knowledge to the users in order that they may obtain greater use of the centre and its services (Harris, 1999, p. 4); f) Information Support component, which relates to the assistance that the centre can offer to clients in terms of knowing and advising where to look for the information they need; might also include engaging with known information providers to make the content available (Ibid.); and 1) Technical Support component, the provision of which does not necessarily need to be constantly be on hand provided there is locally available service that is sufficiently responsive (Ibid.). 3. Selection of Telecentre Sites There appears to be a lack of information available indicating exactly how telecentres are situated and selected. Holmes (1999) and Robinson (1998) both identify the importance of selecting sites that are known by the community as stable institutions, such as libraries, schools, museums, etc. Furthermore, the authors recommend that telecentres be located close to organizations or champions of the technology to encourage their use of the telecentre. Robinson also identifies the importance of keeping the site politically neutral, such as through selecting a library or cultural centre; secure, in terms of data and physical safety; and under the management of a local authority or citizens group that is willing and able to support the programmes of the centre (1998, p. 1). Scharfenberger notes that the location of telecentres can sometimes be a threat to some of its potential users (1999, p. 9), a fact linked to Richardson et al s (2000) recommendation that village telephones in rural Bangladesh be located in places which encourage universal access by both men and women, rather than in locations which discourage women s access to the service (p. 35). Biswas, in his article on information technology (IT) in rural India, acknowledges that a

5 4 telecentre placed in a temple can inadvertently bring about the alienation of people along castes and religious lines (2001). 3.1 Selecting Sites in Partnership with Existing Initiatives Young et al (2001) found that telecentres in Tazmania, Australia which have been established as an adjunct to an existing facility, such as a school or a library, saved between USD$7,800 and $10,400 per year for each telecentre (p. 4). These savings were for costs that would otherwise have been incurred for telecommunication, accommodation, rental and power. 4. Selection of Operator/Management Groups A number of authors have outlined key points to consider with respect to selecting the managers and operators of telecentres. The common thread that runs through the literature is related to the competence of the staff (Baron, 1999; Harris, 1999; Scharffenberger, 1999). Scharffenberger states that the success and sustainability of individual telecentres will be determined by the ability with which managers and operators can clearly identify the information and communication needs of the clients, and then consequently adapt the services offered to meet those needs (1999, p. 4). Young et al (2001) emphasize the importance of combining volunteers with paid staff, and note that volunteers were pivotal to the success of telecentres in Tazmania (p. 5). Hunt (2001) recommends acquiring employees and volunteers who are qualified, professional, well-trained, enthusiastic, and skilled in technical support (p. 10). Harris (1999) emphasizes that telecentre staff must be able to relate to the clients and be user oriented, as opposed to being technically skilled individuals who lack the ability to empathize with the users (p. 3). Other authors emphasize the importance of including women in management positions and in daily activities to ensure sustainable operations (Richardson et al, 2000; Holmes, 1999). Some authors equate the stability of the telecentre with the stability and competence of the management. Baron (1999), for example, recommends the selection of an organization with a history of at least three years, legally constituted and recognized by the community (p. 1). Harris (1999) emphasizes that all of the telecentre stakeholders in the community must understand the issues and terms of ownership and responsibility from the outset of the initiative; this will go a long way towards avoiding problems which may surface later and have a negative impact on the delivery of services (Harris, 1999, p. 7). 5. Equipment Used in the Telecentres The hardware and software contained in the telecentre initiatives studied for this report is wide ranging. Telecentres can range from telephone service only, to those which offer access to telephones and other ICT tools. The list of potential services can include, but is not limited to: televisions with VCR; computers with software, printers and scanners; fax machines; telephones; photocopying machines; and uninterruptible power source (UPS) to counter power outages. Sagna (2000) notes that for the majority of Senegalese telecentres, the main information and communication tool to be implemented is a telephone. Indeed, 1999 figures show that of 10,000 telecentres in the country, only 1,000 had computers (p. 43).

6 5 The initial challenges associated with establishing rural telecentres concerns the provision of connectivity to telephone, electricity and Internet services. On the issue of telephone connectivity, Shakeel et al (2000) compared the costs involved with equipping Costa Rican telecentres with leased line telephony service versus implementing very small aperture terminal (VSAT) service. The study determined that, while initial costs are significantly higher for a VSAT connection than a leased line (grid) connection, the annual usage costs for VSAT are lower than leased line connections (p. 11). The same study also examined the choices to be made when dealing with telecentres that depend on photovoltaic (solar) energy sources for power. The authors found that by replacing desktop computers and monitors with lap top computers they could reduce energy consumption by as much as 70%; the particular telecentre in the study reduced its consumption by half (Ibid., p. 13). However, the study cautions that lap top computers are not always appropriate for use in telecentres, as they are harder to expand, upgrade and repair than their bulkier, energy consuming alternatives (Ibid.). 6. Gender and Telecentres The topic of telecommunications in rural areas around the world is closely intertwined with gender. An evaluation of the Grameen Phone Village Phone programme in Bangladesh found that women operators of the village telephone were not only provided with a profitable business opportunity, but allowed women more comfortable and equitable access to the telephone service (Richardson, 2000, p. 31). Furthermore, Village Phone operators were found to have gained increased social status within their own villages as a result of three factors: their increased income; the fact that better-off women came to use the telephone of women who were lesser-off; and the fact that the woman s house now became the centre of local activity in the village (Ibid.). Holmes (1999) notes that the South African Universal Service Agency (USA) has also recognized the importance of women s activity in telecentres, going so far as to implement a policy which requires one member of each trained telecentre team to be a woman (p. 6). Holmes emphasizes that the women who are selected for employment within the telecentres must be more than just token positions, and must have the necessary skills to deliver results (Ibid.). The author also suggests that women have roles on telecentre steering committees; echoes the USA policy in recommending that every telecentre must have at least one woman on staff; and encourages a closer consideration of gender-specific training and financial training programmes (Ibid.). 7. Findings of Telecentre Activities 7.1 Importance of Training The sustainability of telecentre operations and its link to staff training and the training and sensitization of the users continues to be emphasized by many authors (Macome and Cumbana, 2001; Shakeel et al, 2000; Baron, 1999; Dahms, 1999; Delgadillo and Borja, 1999; Holmes, 1999; Kyabwe and Kibombo, 1999; Scharffenberger, 1999). Specifically, training of staff and telecentre managers in financial management to operate the telecentres, and training of client groups to use the equipment are highlighted. Kyabwe and Kibombo s (1999) evaluation of two Ugandan telecentres reported that, to the detriment of the centres and their users, management had failed to acquire staff with the necessary technical and professional skills required for their positions (p. 19).

7 6 7.2 Telecentre Use Popularity of services A number of studies have revealed the more popular services within telecentre projects, including the use of computers for word processing and printing (Baron, 1999, p. 6); the provision of computer training for community members (Dahms, 1999, p. 2); and the provision of information access through CD s (Delgadillo and Borja, 1999, p. 3) Smaller communities can be better Young et al s (2001) study of Tazmanian telecentres found that communities of less than 2,000 people had a higher average of Internet usage than did those communities which were between 2,000 and 15,000 (p. 12). The researchers attribute the higher levels of Internet use in the smaller communities to two factors: i) residents in smaller communities are more likely to be aware of the existence of telecentres in their locality than those living in larger communities, and thus more would utilize the centres; and ii) the fewer number of activities available to residents in smaller communities makes telecentres more popular than in larger communities, where greater competition for activities means that fewer people utilize the services (Ibid.) Telephone use dominates Virtually all of the telecentre reports available to date indicate that the most widely used service is the telephone. This is most clearly reflected in Sagna s (2000) revealing study of Senegalese telecentres, which found that of 10,000 telecentres in operation in 1999, only 1,000 were equipped with computers (p. 42). The Costa Rican Learning in Communities (LINCOS) project found that 50% of the daily users at the telecentre use the telephone, while 30% use computers and 20% other services such as the photocopier and scanner (Shakeel et al, 2000, p. 5). Similar figures were reported by Macome and Cumbana (2001) in their evaluation of two telecentres in Mozambique. Indeed, this latter study found that 45% of all telecentre users had used the telephone, 31% reported having used the computers; and 5% had used the fax machine; a total of 58% reported having used the photocopier (Macome and Cumbana, 2001, p. 25). Delgadillo and Borja s 1999 study of Latin American telecentres found that public calling booths and cybercafes yielded the greatest revenues vs. expenditures (p. 5). The profitability of telephone services offered through a telecentre is most clearly demonstrated by Sagna (2000), who points out that in 1996, a phone line installed in a telecentre produces four times the sales revenue of a main trunk line (p. 42). 7.3 Sensitization Leads to Broader Usage Much of the literature on telecentres discusses the importance of sensitizing community members to the opportunities available to them in order to ensure better chances for sustainability of the sites. The impacts of doing this are best reflected in Young et al. s 2001 report, which found that many of the telecentre users who became involved with e-commerce activities on the web initially began using the telecentres for social or general reasons before realizing the potential that the Internet had for their own business initiatives (p. 13). 7.4 Decentralized Services for Government and Others There are a growing number of examples whereby telecentre operations are being integrated in countries alongside national government efforts to enable their citizens have efficient, electronic access to relevant information. Delgadillo and Borja (1999) and Hunt (2001) examine experiences from Paraguay; Biswas (2001) looks at India s e-governance efforts; and Fuchs

8 7 (1998) assesses case studies from Canada and other countries around the world where online computer terminals are being established in libraries and community centres to enable citizens access to government information. Pride Africa (2000) is an example of a non-governmental organization currently introducing online kiosks in East Africa to provide financial information to its rural micro-credit members. 7.5 Age and Gender of Telecentre Users Throughout the world, youth are the largest segment of the population utilizing computers and Internet opportunities in telecentre initiatives (Dahms, 1999, p. 2). Gomez et al (1999) cite an IDRC telecentre study in Latin America which found that over 82% of users were students (p. 6). Kyabwe and Kibombo s (1999) study of two Ugandan telecentres found that the majority (56.1%) of users were between the ages of 15 and 34 (p. 7). A similar study conducted at two Mozambican telecentres found that 51.9% of all users were between the ages of 17 and 25 (Macome and Cumbana, 2001, p.20). Moreover, this latter study reported that the majority of telecentre users (64.4%) were male, while the minority (35.6%) were female (Ibid.). These statistics highlight the importance of developing means to encourage women to use telecentres. 7.6 Importance of Community Support Throughout many of the reports on telecentre evaluations, the success of each centre is closely linked to the levels of support that the host community offers to it (Young et al, 2001; Kyabwe and Kibombo, 1999; Scharffenberger, 1999; Fuchs, 1998). Young et al s (2001) study, in particular, highlights the linkage that exists between smaller communities and information technology (IT) initiatives. This study not only found that telecentres located in communities of less than 2,000 were more valued by their citizens than were those in their larger communities, but also that the residents of the small, isolated communities felt empowered to participate in the information society (p. 14). Furthermore, the authors found that nearly half of the 13 telecentre communities with less than 2,000 inhabitants were utilized by 50% of their population; three additional communities attracted 1/3 of their respective populations as registered users (p. 9). Considering the authors assertion that the total of telecentre users in 59 telecentre locations over a two year period is equivalent to 22% of Tasmania s population, the strong correlation between small communities and telecentre use is made all the more impressive. The literature highlights the importance of involving the community as partners to obtain their buy-in and support. Kyabwe and Kibombo (1999) found that in one of the two Ugandan telecentre communities, the people s lack of support for the Steering Committee, both in terms of how it was selected and how it made its decisions, resulted in a lack of community participation and involvement (p. 7). This same study reported that for both telecentre sites, the public s perception that the centres had political affiliations negatively impacted their awareness of the services and functions available to them. These perceptions were reportedly created through two factors: first, that the people believed that political figures in the community were involved as owners of the telecentre; and second, that the sites were physically located at a government facility and thus appeared to be directly associated with those government institutions (p. 17); this draws the reader back to the importance of Robinson s (1998) comments on keeping telecentre sites politically neutral (p. 1). Kyabwe and Kibombo suggest that telecentres continually maintain sensitization programmes within their communities to encourage and increase local support (1999, p. 19).

9 8 7.7 Adapting to Meet the Needs of the Community As was previously pointed out, telecentres must be able to identify the needs of their communities and adapt their programming to those needs (Scharffenberger, 1999, p. 4). The examples of telecentre operations which have managed to do this is impressive. Hunt (2001) provides examples of Latin American and Caribbean telecentres which met the needs of their diverse communities of users, including: developing over 40 new software programmes for community groups in different sectors; developing e-commerce applications; decentralizing municipal government services; offering courses on software use and website development; and providing local commercial services to meet community demand (p. 12). Richardson et al. s (2000) Village Phone evaluation, noting the importance that remittance payments have in a family s ability to meet household subsistence needs, found that villagers use of the telephone served as a risk management tool for improving the transfer of remittances (p. 28). Robinson (2001), also citing the importance of rural telecommunications in remittance transfers, proposes integrating telecentres with microbanks over the Internet (p. 2). Such initiatives could provide digital remittance services and offer a set of generic financial, communication, education, information and e-commerce initiatives for the rural populations who require them (Ibid.). 7.8 Creating a Forum for Operators and Managers Many authors (Baron, 1999; Delgadillo and Borja, 1999; Harris, 1999; Kyabwe and Kibombo, 1999) discuss the need for operators and managers to have a forum through which they can share experiences and learn from one another. In many of the evaluation reports the isolation of one telecentre from others in the region or country is cited as a major hindrance to the operators. Authors propose sharing information on managing telecentres, tools, resources and methodologies, as well as a web-based, online resource site. Reilly and Gomez (2001) refer to a nine month electronic discussion group involving telecentre operators and researchers, through which they addressed their needs and expectations (p. 10). 7.9 The Need for Information Content Providers Much of the literature emphasizes the importance of ensuring that telecentres are able to meet the information and communication needs of the community. Many authors believe that the best way to ensure that these needs can be identified and the content can be assembled is through utilizing participatory approaches with local organizations and a diverse range of community representatives (Baron, 1999; Robinson, 1999; Scharffenberger, 1999). The provision of local content varies in how it is presented, from ensuring that the homepage for each telecentre is customized to deliver community-specific information to each site (Baron, 1999, p. 6), to having an offline CD Rom database of information that is relevant to and available for the community (Hunt, 2001, p. 11; Robinson 1999, p. 3). Scharffenberger (1999) cites the use of paid and volunteer telecentre staff as one possibility for the sustainable generation of appropriate, local content (p. 5) Telecentres Enabling Local Economic Development For many telecentre initiatives, the aim of providing rural areas with access to new information and communication technologies (ICTs) such as telephones and the Internet is to equip the people with the tools, skills and information they need to compete on an economic level with others in their own country and throughout the world. This can mean everything from learning computer skills in order to be eligible for employment, to acquiring information from the telephone, fax or on market prices in the capital city and other centres around the country, or the world. Share, in Young et al s (2001) study of Australian telecentres, states that Telecentres can be used in a transitional phase where small business proprietors can gain exposure and training in the application of ICTs which can later be used to their economic benefit (p. 3). Young et al., after

10 9 noting that those users who were now utilizing e-commerce applications for their businesses first began as social Internet users and then developed those skills to something more practical to meet their needs, states that, the provision of opportunities for people to access, and become familiar with ICTs, may prove beneficial in promoting the economic well-being of small and isolated communities (p. 14). Joseph (1999) demonstrates how the previous quote can take shape in rural communities with his look at E-marketers in India. Telecentres were established to provide basic training on the Internet and teleworking to educated unemployed youth; this training opportunity was coupled with a free offer of 500 hours of Internet browsing to enable the students to become more skilled and proficient with the technology, in addition to providing a strong user base for the centre. Once they are trained, the students are linked with Indian-based Internet supermarkets as e- marketers. As the author summarizes, Many of the unemployed youth are successful in finding a permanent income and livelihood (p. 3). 8. Monitoring and Evaluation: The literature discusses the importance of monitoring and evaluating telecentre projects throughout their lifetime, though the fact that telecentres have only recently begun to operate has meant that there is not a great deal in the way of evaluation findings available. Scharffenberger (1999) and Gomez et al (1999) both stress the importance of training to support the monitoring process, and include staff, volunteers and core users as participants in that process. Delgadillo and Borja (1999) note the importance of evaluating staff members in order to strengthen the management of the telecentre (p. 5). Young et al (2001) suggest that telecentres be obligated to keep and submit regular reports (p. 6), echoed in Kyabwe and Kibombo s (1999) recommendation for maintaining updated user registration logs and recording daily usage data (p. 19). Gomez et al. (1999) refer to these reports and methodologies as a set of powerful tools to better understand the informational needs of the telecentre communities (p. 5). Harris (1999) draws the reader to focus on identifying output measures, which relate to the additional benefits that the community enjoys as a result of utilizing the services of the center (p. 5). This pulls the focus away from the technical measures such as number of minutes used for the telephone or Internet, and selection of web sites. Output measures focus on learning the impact of the community having access to the new information sources through the telephone, fax, , etc. Output measures, writes the author, provide the acid test for telecentre evaluation (Ibid.). 8.1 Indicators and Measures for Telecentres What to measure in a telecentre? The list of what to measure in a telecentre is as diverse as the types of telecentres which are in operation around the world. While a number of indicators mostly from literature on Internetcentred telecentres -- are provided below, this section emphasizes the words of telecentre evaluation specialist Ann Whyte, who stated that what is most important is not the number of criteria that are measured, but rather that research teams interested in regional comparisons try to select some of the core indicators in common across projects (1999, p. 8). It is only through comparing the data from one telecentre with another, or one region with another, that the true learning about telecentres will be achieved, and through that the improvement of the product ultimately offered to the community users. San Sebastien (1999) suggests providing operators with constant feedback to enable them to better understand the demand in their telecentre, and benchmark it with others (p. 2). Examples of indicators include hourly activity for each type of service offered; types of services offered;

11 10 and type of user, aggregated with age, gender, profession, etc. (Ibid.). Young et al (2001) collected data monthly over a two year period, focused on three areas of telecentre performance: User registration, measured by the number of user registrations; Internet use, based on the following categories: self-development; economic objectives; communication; for online transactions; and micro e-business activity (p. 6) Measuring Financial Sustainability of Telecentres Whyte states that the financial sustainability of telecentres should be measured based on whether the centre covers its operating costs (1999, p. 10). The author also provides a warning to wouldbe managers and operators that the most commonly underestimated telecentre costs are related to staff training; security (physical and data security); and the costs of updating and maintaining equipment, especially computers (Ibid.). To demonstrate the difficulties involved in generating revenue to cover telecentre costs, Whyte provides figures from telecentre studies in Kenya, Malawi and Zimbabwe, where the proportion of collect calls for outgoing calls at rural payphones was 60% (Ibid., p. 11). In instances where the regulatory system is such that the telecentre operator only receives revenue for outgoing calls paid at the source, the incentives to operate a telecentre are less attractive Calculating Willingness to Pay for Telecommunications Services Calculating how much community members are willing to spend on telecommunications services has become a science. Intven et al (2000) state that on average, people around the world spend between 2% to 3% of their incomes on telecommunication services (p. 6-6), though in countries with a low gross domestic product (GDP) per capita that figure can be below 1% (Ibid., 6-5). Typically, these figures are less than the actual amount that is spent (Whyte, 1999, p. 11). The International Telecommunications Union (ITU) uses a figure equivalent to 10% of an individual s personal purchasing power (PPP) as the figure to estimate potential telecom revenues. 9. Challenges to Telecentre Programmes: There are many challenges to telecentre operations which are cited in recent literature. Some include: 9.1 The need to build the independence of the community without becoming so dependant on external agents (Baron, 1999, p. 5). 9.2 Introducing new technologies such as the Internet and the telephone to rural areas, when they may not be regarded as permanent or regular sources of information (Ibid., p.6 ). 9.3 Overcoming illiteracy as a barrier to telephone and computer use, especially in cases involving computers and rural farmers (Dahms, 1999, p. 2); 9.4 Providing adequate information on and promotion of telecentres throughout the community (Dahms, 1999, p. 2; Dandar, 1999, p. 2) 9.5 The need for local content, especially contending with the unmet demand for information material in the local language (Hunt, 2001, p. 8; Dahms, 1999, p.2) 9.6 Adapting to and meeting the community s training needs, so as to take into account the different cultural aspects of the community (Delgadillo and Borja, 1999, p. 5);

12 Developing appropriate pricing levels that meet the abilities of low-income users (Hunt, 2001, p. 9); and 9.8 Staffing telecentres, in terms of identifying the needs of staff; addressing lack of training and resource issues; and retaining skilled staff (Ibid.) 10. How to Promote Telecentres? Many authors have suggested means through which communities can learn about the existence and activities of the local telecentres. Some of the suggestions are listed below: Storytelling (Reilly and Gomez, 2001, p. 7; Gomez and Hunt, 1999, p. 2); Web-based clearinghouse, including a document repository with contributions from participants and stakeholders (Gomez and Hunt, 1999, p. 2); Electronic communication (Ibid.); Future meetings and workshops; (Ibid.) Dissemination of collective knowledge acquired through and/or the Internet and distributed through bulletin boards, links to community radio, newspapers, television, operator forums, etc ; Invite high and middle-school teachers to bring their students to the telecentre, offering user discounts and friendly training and entertainment packages (Joseph, 1999, p. 3); and Deliver free and valued information to different authorities they could not otherwise obtain. (Ibid.)

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