1. ICT Development
in Lao P.D.R: Current Status
Xayluxa INSISIENGMAY
Director, Radio Spectrum Management Division
Department of Telecommunications and the Internet
National Authority of Posts and Telecommunications
Telephone: 856 21 218897 Email: xayluxa@yahoo.com
International Symposium on Communications and Information Technologies 2008
October 21-23, 2008
Vientiane, Lao PDR
2. Contents:
I. Introduction
II. National Agency responsible for ICTs
III. ICT and Development
IV. Market Structure and ownership
V. Global Trend
VI. Telecommunication Sector performance
VII. Challenges
VIII. Conclusion
3. “If the world is serious about achieving the Millennium Development Goal of
halving the number of people living in extreme poverty by the year 2015, ICT
must figure prominently in the effort. Everyone – governments, civil society,
and private sector businesses – has a vital stake in fostering digital
opportunity and putting ICT at the service of development.”
Kofi Annan,
(Ex) UN Secretary-General
Extract from the foreword of the UNCTAD E-Commerce and Development
Report
5. Country Profile
• Population: 5.6 mill. (2005)
(80% live in rural areas)
• Area: 236,800 Km2
• Provinces: 17
• Districts: 139
• Poorest district: 47
• GDP: US$ 4.8 bill (2008)
• GDP per Capita: US$850 (2008)
• ICTs:
- Fixed line: 2.14% (2007)
- Mobile: 26.35% (2007)
- Tele-density: 28.5% (2007)
- Internet: 0.12% (2007)
- Radio coverage: 80%
- TV coverage: 60%
6. Development Vision
• “New Economic Mechanism” – in 1986
• In 1990s national economy grew at an
average rate of 6.3%
• Annual growth during 2000-06 was 6.5%
• In 2007 the growth reached 7.5%
• The Government’s objective is to maintain
the rapid economic growth, meet the
MDGs by 2015 and escape from LDC
status by 2020
Source: http://www.un.org/ecosoc/docs/pdfs/Lao%20PDR.text.pdf
7. Recent Economic Growth
• During the first six months of 2007/2008 FY ,
the GDP grew at a rate of 7.9% (8% predicted)
• Service sector grew by 9.9% (7% predicted)
• For the 2008/2009 FY, the government will
maintain the macro-economic targets at the
same level as in 2007/2008, i.e.
GDP shall grow by 8%
agriculture 3.4%
industry 1.58%
services 9.9%
Source: Vientiane Times, July 9 2008, p.19
8. Development Vision
2020: Out of LDC status
2015: Achievement of MDGs
2010: Fundamentally eradicate poverty,
Stop slash and burn cultivation
2005: Eradicate Poverty by half, Stop opium cultivation
Source: http://www.rtm.org.la/General%20RTM.php#RTM9
10. National Organization for ICT
• Authorité Nationale des Postes et des
Télécommunications or National Authority of
Post and Telecommunication (ANPT)
• ANPT created by the PM Decree No.375/PM of
22nd October 2007 and replaced Department of
Posts and Telecommunications/MCTPC
• ANPT is a organization under the Prime Minister
Office, dealing with policy, strategy and its
implementation and administrative issues on Post,
Telecommunications and ICT in Lao PDR
11. Organization Chart of NAPT
Minister to PMO
Head of ANPT
Deputy Head ANPT
Department of Department of Department Department Institute of
Administration Planning & of Telecommuni of Posts Posts & Tele
Cooperation cations and the communications
Internet
12. Policy and regulations
• NAPT is responsible for both the policy-
making and regulatory function for
telecommunications and ICT sectors
• Telecommunication Act was passed and
entered into force in 2001
• Telecommunication sector policy 2004
• Telecommunication sector policy 2007
(draft)
13. Policy and regulations
• Telecommunication market
– Government has stake in all the operators
– Based on ASEAN Framework Agreement on
Services, for value added services the new entry can
only take place through a joint venture with Lao
service provider or acquisition of existing operators
– Under BTA with the US, Lao PDR has made
commitments to provide unrestricted market access
and full national treatment for the whole range of
basic fixed and mobile (on a facilities basis or by
resale, through any means of technology) as well as
value-added telecommunications services
15. ICT’s contribution to GDP
• By their very nature, ICTs serve the society in a
way no other industry does, firstly as fast growing
industry by themselves generating employment and
wealth, and secondly as enablers of social and
economic activities.
• ICTs and Telecom sector account for a significant
percentage of the GDP in several developed and
developing countries. However difficulty arises in
assessing the impact of ICTs in terms of direct and
indirect benefits, because differences exist in
defining the goods and services covered under the
ICT sector. The contribution is normally far more
then assessed.
16. Distribution of population and GDP
by income group
Income Number of GDP per Population, Population Total GDP
group economies, capita 2006 %, 2006 %, 2006
2006 USD, 2006
High 57 35 496 1 030 624 15.7% 75.8%
Upper- 39 6 514 816 121 12.5% 11.0%
middle
Lower- 55 2 062 2 295 478 35.0% 9.8%
middle
Low 52 669 2 408 914 36.8% 3.3%
World 203 7 439 6 551 138 100% 100%
Source: ITU, Trend in Telecommunication Reform 2007
17. ICT and Development
• Well developed ICT infrastructure is the key to rapid
economic and social development of a country.
• A number of ITU studies over the past several
decades have analyzed the relationship between the
growth of ICT, particularly telecommunication
services, and the economic growth and found that a
direct link exists between a country’s
telecommunication penetration and the GDP.
• According to a study, ICT diffusion accounts for up to
90% of the increase in human development index.
• Although, the link does not explain the correlation or
cause and effect relation, it does establish its vital
importance for accelerating the economic growth.
18. Distribution of major ICTs by income
group, 2006
100%
15.50%
90%
34.60%
80% 9.30% 41.90%
53.40%
70%
69.80%
75.83%
60% High
16.70%
38.50%
10.90% Upper-middle
50% Lower-middle
Low
11.30%
40%
30% 36.40%
41.40% 7.40%
25.40%
20% 36.70% 11.02%
21.70%
10% 9.81%
12.30% 10.00%
5.80%
1.10% 3.34%
0%
Population Fixed lines Mobile Internet users Broadband Total GDP
subscribers subscribers
Source: ITU, Trend in Telecommunication Reform 2007
19. Asia-Pacific’s share of the global total
for various services, 2006
Population 55.50% 2.40% 57.9%
Mobile subscribers 37.80% 4.10% 41.9%
Fixed lines 43.20% 5.40% 48.6%
Internet users 30.60% 9.50% 40.1%
Broadband 39.2%
28.30% 10.90%
Subscribers
Developing Developed
Source: ITU, Trend in Telecommunication Reform 2007
20. ICT’s and Socio-economic Development
• In individual countries, some measurements of ICT
would be included in their respective capital
equipment accounts while others might be classified
as Information services. Direct impact of ICT in
comparable economic terms cannot be measured
without a globally accepted definition. Developed
nations have reached a consensus on this issue.
Developing countries have not.
• However, there is no denying the fact that ICTs
contribute directly and indirectly to the economy in
terms of revenue and employment. Their impact on
economy can be measured by their contribution to
the GDP. Indirect benefits accrue by the use and
application of ICTs in other economic sectors and
for social activities by the resulting efficiency and
productivity increase.
21. Telecommunications revenue and GDP
• Comparative Indicators of Lao PDR and the East Asia/Pacific Region
Total Telecommunications Revenue (% of GDP)
2000 2001 2002 2003 2004
Lao PDR 1.5 1.5 1.5 1.4 1.6
East Asia and 3.2 3.5 3.7 3.7 3.6
Pacific Region
Source: World Bank
• As of December 2007, the Telecommunications revenue has increased
dramatically and accounts for approximately 3% of GDP
22. Impact of Liberalization on
Economies
• Liberalization of economies. Globalization,
WTO negotiations on liberalization of basic
telecommunication services, followed by
privatization, competition and independent
regulators have paved the way for rapid
growth of ICT sector, so much so, that it is
also anticipated while going forward that a
major part of the GDP of the country would
be contributed by the ICT sector.
23. Relationship between ICTs and MDGs
• For bridging the digital divide, it is imperative to put ICT
firmly in the service of development.
• Communication infrastructure, computer availability,
Internet access and availability of alternative access, e.g.
through cable, satellite and digital TVs and availability of
content in the local language are basic issues.
• The digital divide among households appears to mainly
depend on two factors, viz. income and education. This
fact also establishes a direct relationship between ICTs
and MDGs that move us forward in reducing poverty or
conversely increasing income and increasing education.
• In fact, ICTs may be applied to all fields of human
endeavour and management, to enrich the society
through enhancement of capacities at all levels:
individuals, organizations, governments, global
partnerships.
24. Global mobile entertainment revenues
45,000
Gambling
40,000 Adult
TV
35,000
Video
30,000 Images
US$ millions
Music
25,000 Games
20,000
15,000
10,000
5,000
0
2006 2007 2008 2009 2010 2011
Source: Informa.
26. Telecommunications/ICTs Market
Telecom Operators/ISPs Ownership
Enterprise Telecommunication Re-established in 2000
Lao (ETL) - 100% Government of Lao PDR
Lao Telecommunication Established in 1996
Company (LTC) - 51% Government of Lao PDR
- 49 % Shinawatra Int’l Co., Thailand
Star Telecom Established in April 2008
- 51% GoL (through LAT which is 100% MoD)
- 49% Viettel Global (Vietnam State owned operator)
Millicom Lao Co. Ltd (Tigo) Established in 2003
- 22% Government of Lao PDR
- 78% Millicom Int’l Cellular (Sweden)
SKY Telecom Co., Ltd (SKY) Established in 2005
- 30% Government of Lao PDR
- 70% Skytel & Net Co., Ltd, Thailand
Planet Online Established in 1997
- Leading private ISP, Australian owned company
27. Telecommunications/ICTs Market
Telecom Operators/ISPs Technology/Services
Enterprise Telecommunication - PSTN (Fixed line), GSM900/1800, GPRS, ISP
Lao (ETL) - Dial up, ADSL, HIL, VPN
Lao Telecommunication - PSTN (Fixed Line), GSM900/1800, CDMA (WLL),ISP
Company (LTC) - 3G (WCDMA) service trial launched in July 2008
- Dial up, ADSL, IP Star
Star Telecom - PSTN (Fixed Line)
- GSM 900/1800
Millicom Lao Co. Ltd (Tigo) - GSM 900/1800, EDGE, WiMAX
SKY Telecom Co., Ltd (SKY) - CDMA2000 1X at 800/1900, WCDMA, Internet
- Voice services planned to launch late 2008
Planet Online - Broadband Wireless Internet @ 700 MHz
- ISP
32. Competition: International Trend
Competition is authorized in more than 60% of the countries in Basic and
leased line services
Competition is authorized in more than 80% of the countries in Broadband
and Mobile services
38. Other Internet access
5000
4500 Wireless
4000 Leased lines
HIL
3500
IPStar
3000
ADSL
lines
2500
2000
1500
1000
500
0
2003
2004
2005
2006
2007
39. Total number of Internet line
7000 6,624
6000
5,238
5000
4,271
4000
3000 2,538
2000
970
1000 620
350 460
0
2000 2001 2002 2003 2004 2005 2006 2007
40. Telecommunications infrastructure
• Backbone Optical Fiber
Cables are interconnected
with China, Thailand and
Vietnam.
• OFC to Cambodia and
Myanmar have reached the
borders
• Optical fiber networks are
connected to 15 provinces
and expanding to cover
90% of districts
• GSM networks are
expanding to all districts
43. Regulatory issues
• Need a clear and adequate
Telecommunication/ICTs policy on
– Licensing to new entrants
– Infrastructure sharing
– Interconnection
– Radio Spectrum
– Universal Access
• Sector’s capacity-building
44. Utilization of ICTs Infrastructure
• ICTs infrastructure is well developed but not
fully utilized
– Lack of computer literacy
– Lack of contents in local language
– Limited availability of computers
– High prices for connectivity and Internet access
45. Conclusion
• Recognizing the dominant role played by ICTs in
globalization and in attaining the UNMDGs, the governments
may seriously consider to create an enabling environment by
putting in place suitable policy, regulatory and legal
framework and fiscal incentives to encourage investment in
ICT industry, network infrastructure keeping in mind the
emerging new generation network and services, improve
access to network for broadband services in rural areas by
establishing Telecentres, Community Service centres, in the
true spirit of the WSIS vision, principles and the plan of
action.
• The countries should recognize the contribution of ICTs for
sustainable socio-economic development and in achieving
MDGs and accelerate the sector reform process for attaining
rapid growth through private sector participation with
Regulator providing a level playing field, creating an investor
friendly climate, safeguarding consumer interest, to usher in
open market competition leading to better quality of service
to end-users at lower cost.
47. Summit Objectives
By 2015
a) to connect all villages with ICTs
b) to connect all educational institutions
c) to connect all scientific and research centres;
d) to connect all public libraries, museums and archives
e) to connect all health centres and hospitals;
f) to connect local and central government departments
g) to adapt all primary and secondary school curricula to
meet the challenges of the Information Society;
h) to ensure that all have access to television and radio
services;
i) to encourage the development of content on the Internet;
j) to ensure that more than half the world’s inhabitants have
access to ICTs within their reach.
