Blaise Judja-Sato
Managing Director
AT&T Submarine Systems Inc.

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The history of information and communication parallels the history of modern man. From the earliest beginnings of the human species down through the end of the Ice Age, some 15,000 to 20,000 years ago, very little is recorded that would add to our knowledge of human existence. Except for occasional cave drawings our earliest ancestors left few monuments or artifacts to record their simple, nomadic existence.

It was not until the rise in population, the development of communities and the beginnings of town life, some 5,000 years ago, that humankind began the progression from prehistory to recorded history. With it came a corresponding transition from the physical basics of existence to higher-level wants associated with self-actualization, and social interaction, facilitated through spoken and written communications.

Early telephone pioneers wisely and quickly realized that achieving the full potential of the telephone depended upon every phone being connected with every other telephone. Yet, currently total connectivity falls short of what is needed for universal information voice service, not to mention data and video services. Achieving this goal will be a great challenge for information technology and the service industry.

Today we are faced with a global society where 25 percent of the population lives in industrialized and industrializing countries, of which only nine countries account for 75 percent of the world's telephones. As a result of this disparity in teledensity, defined as number of telephone lines per 100 inhabitants, this segment of the population suffers from a severe information shortage, especially the kind of information which would help it develop socially and economically while preserving its cultural identity.

It was this very disparity that prompted an International Telecommunications Union (ITU) Commission to state that, "neither in the name of common humanity nor on grounds of common interest is such a disparity acceptable."

Challenges

The pace of technological advance is so rapid that it is difficult for societies, governments and international regimes to maintain parallel momentum. There is the continuing concern that information technology and telecommunications dictate a structure in which people must fit rather than one which is fitted to people, and that cultural integrity will be sacrificed to economic considerations.

It is a difficult task for a country's leadership to determine which resources should be devoted to telecommunications development as compared with such important alternative programs as education, health, housing, agriculture, mining and transportation, unless the beneficial impact of communications on these other programs is clearly appreciated and delineated.

Purpose

We, in the industrialized countries, take much for granted including our telecommunications, a key factor in our economic, social and political life, as well as a prime source of cultural enrichment. We need to be aware of these advantages and assist in extending them to the underdeveloped and developing countries. Therefore, the purpose of this paper is to highlight the contributions of modernizing telecommunications infrastructure to socio-economic growth in developing countries and to show how a conscientious program of investment in telecommunications infrastructure contributes both directly and indirectly to improving the quality of life.

Problem

By the next century, which is to say in another five to six years, virtually everyone should be within easy reach of a telephone. This is not a certainty, however, and can be realized only if we want to make it happen. Despite 100 years of progress in telecommunication, and consistent with Pareto's 80/20 principle, nearly 4 billion of the world's 5 billion people continue to be denied access to the basic human needs to communicate because they lack access to primary telecommunications services.

Obstacles are in front of us, but we believe we can conquer them. Developing countries are seeking to achieve greater levels of social responsibility and economic self-reliance. Accordingly, they have established development programs with goals and objectives that govern the allocation of their resources to infrastructure investment.

The problem then becomes one of perception, that is, the recognition and understanding by developing countries of the proper role telecommunications can play in their economic and social development. Our task is to demonstrate that investment in telecommunications infrastructure is the key to a balanced and properly integrated program of overall infrastructure development, leading to an enhanced quality of life in developing countries throughout the world. The time for change is here and we are going to make it happen, we must make it happen.

However, to make it happen we must be sure we are attacking the problem, not the symptoms. The old proverb says, "Give a man a fish and you will feed him for a day, but teach him how to fish and you feed him for life." We need to convince the underdeveloped and developing countries that communications and information, at all levels–individual, social, political, and economic–are necessary for people, nations, and economies to establish their identity in a world where socio-economic disparities are growing. The composition of the telecommunications infrastructure and the volume of communication and information within a community reflects its wealth and the limits of its efficiency. The telecommunications infrastructure of a nation and of an area (one encompasses the other) must be planned and designed to fit the needs, culture and growth of those it is to serve.

The basic problem is that 75 percent of the world's population is not served by adequate telecommunications infrastructure, i.e., do not have access to telephones or to information sources required to enable them to join the world community. They will not obtain access to the infrastructure they need without assistance–our assistance. It is to our advantage, and theirs, to provide this assistance.

Telecommunications Contribution

The importance of information services is undeniable. Telecommunications enables coordination of the activities of spatially separated people, enables resources to be available when and where needed, and contributes to improved efficiency in virtually every industry. This is especially true in services sectors which use telecommunications most intensively. The lack of good information and telecommunications systems is singled out, along with a lack of foreign exchange, as the most significant constraint to growth in tourism.

A country's comparative advantage increasingly depends on its ability to use new technology effectively and to absorb it into its production processes. It will be a great loss if the telecommunications sectors are ignored, as telecommunications is a pre-requisite for economic success in an information-based economy.

The 1994 World Development Report, published for the World Bank, stated that the per capita provision of infrastructure services has increased in all regions of the world. The greatest improvements have been in East Asia and the smallest in Sub-Saharan Africa. This indicates a strong association between economic growth and infrastructure.

A good example is the author's experience in his native country of Cameroon where a lack of reliable telecommunications links between the capital city of Yaounde and the main economic center and port of Douala has resulted in the inability of the people in Douala to contact the capital by telephone. The only reliable connection between the two cities is by airplane. The only available road serves as a means of communication, but having to traverse a distance of over 200 kilometers, makes it costly in time, pollution and wasted resources. Nevertheless, the route is heavily traveled by businessmen and government officials for the sole purpose of administrative communication, which in an ideal situation would have been handled by telephone, telex, or facsimile. In Iran, a study undertaken by the ITU has shown that at least 25 percent of all transportation costs could be saved if the primary communication is by telephone.

Economic Aspects

Studies conducted by the ITU have demonstrated that a close relationship exists between telecommunications and economic development where GDP per capita (as a surrogate for economic development) is plotted against teledensity. Another statement made in an ITU/OECD report, says that investment in telecommunications facilities generates reciprocal investment in trade, industry and agriculture at a rate that averages four times the level of investment in telecommunications itself. This factor is even more significant in low per capita countries where telecommunications facilities are poor.

Among the benefits of telecommunications for improving efficiency and productivity are the following:

• Reduction of travel cost: in many cases telecommunications can be substituted for travel, resulting in savings in personnel time and travel costs.
• Energy savings: telecommunications can be used to increase the efficiency of shipping so that trips are not wasted and consumption of fuel is minimized.
• Decentralization: availability of telecommunications can help attract industries to rural areas, and allow decentralization of economic activities away from major urban areas.

Societal Benefits

The social impact of telecommunications is more difficult to measure than the economic impact, but it is nevertheless equally far-reaching and important.

The social impact of the telecommunications on the developing world is perhaps even more dramatic than in the advanced nations. The provision of the first telephone in a village or a community has a much greater multiplier effect on economic development than does the investment cost of providing the line. Studies of the installation of community telephones in the homelands in South Africa provide instances where new businesses and new opportunities for trading were created just in the immediate vicinity of the telephone.

Community telephones can help slow down the rural exodus, and can be used to call for medical assistance in emergencies, and to provide warnings in the case of natural disasters or epidemics.

The importance of information in social, cultural, and economic development was recognized by UNESCO's MacBride Commission, which stated "There can be no genuine, effective independence without the communication resources needed to safeguard it."

Political Benefits

Political problems are sometimes exaggerated by poor communications among countries. The Organization of African Unity recently stated: "The political backlash that plagues inter-country disputes in Africa can be attributed to the lack of adequate communication facilities between the capitals of neighboring countries." The reliance on third parties, which are usually outside the continent and have pre-conceived notions of African conflicts, is detrimental to the peace and stability required for socio-economic development. These vested interests often misinterpret minor incidents which could be reasonably resolved if the means of communicating clearly defined positions were readily available to alleviate the fears of neighbors in time of crisis.

Benefits in Rural Versus Urban Areas

Research has shown that the economic benefits of telecommunications are related to distance and density, and benefits are proportionately greater in rural areas where telephone density is low and alternatives to telephone communications are expensive and/or time consuming.

In many parts of the developing world, villages are isolated for weeks during the rainy season when flooded roads become impassable. The telephone becomes a lifeline, not only for emergency assistance, but to keep up the contact necessary to administer government services, manage development activities, and reduce the sense of isolation.

By transporting information in written, spoken, visual and electronic form, telecommunications provides a viable substitute for the transport of goods or people. It is invariably more energy efficient and less polluting to move information instead of people. Psychologists have found that when we talk to someone face-to-face, only about seven percent of what is communicated is conveyed in the meaning of the words themselves, 38 percent comes from intonation of the words, and 55 percent of communication is in the form of visual cues that can be provided by videoconferencing. Video-conferencing can provide an alternative to long-distance travel, telecommuting an alternative to commuting to work; and facsimile offers an alternative to postal services.

Case Study: Africa ONE

Nowhere is the inequality in worldwide network growth more apparent than in the developing countries in Africa. Of Africa's 54 countries, fully 65 percent have teledensities of less than one, based on ITU statistics published in 1992. Of the world's 49 Least Developed Countries with teledensities of less than one, 71 percent are located in Africa.

Coupled with Africa's low level of teledensity is a low level of economic activity characterized by low GDP/GNP, lack of foreign exchange, restricted access to capital, poor infrastructure development, high debt service burdens and little industrialization except in particular countries such as South Africa. From a socio-cultural perspective African countries lag in literacy rates and in the level of formal education associated with industrialized countries.

AT&T; Submarine Systems, Inc. (SSI) has addressed the issue of accommodating infrastructure modernization by offering high quality, low cost technical solutions for basic services for the least developed countries, and in particular African countries. In April 1994, SSI announced the Africa ONE project which plans to design and install a 40,000 Km undersea fiber optic cable that will encircle the African continent. Subject to negotiation, SSI will establish landing points in all African coastal countries and island nations, providing connectivity to the global network via existing transoceanic and regional communications systems, such as Sea-Me-We 2 and Columbus. Landlocked African countries could gain access to the undersea network via satellite, microwave radio, cellular and terrestrial links. These developments are being actively pursued by SSI together with African countries, their international correspondents, the Regional African Satellite Communication project (RASCOM), the PanAfrican Telecommunications Union (PATU), the International Telecommunications Union (ITU), and Alcatel Submarine Networks (ASN).

Advances in regional African telecommunications infrastructure modernization should result in significant growth in regional economic activity, spurring concomitant socio-economic growth in land-locked countries in the interior regions of the continent. Through such development, opportunities will be created to materially enhance the quality of life and the delivery of vital social services in all of Africa. Pockets of isolation within the African interior will be broken down, and their inhabitants will be accorded a mainstream role in world affairs. With a greater and more efficient inflow of information, remote areas will become more attractive to information-intensive corporations and will influence decisions to relocate. This contributes further to the economic viability of the region and generates incremental capital resources which can be invested in the improvement of educational facilities and job training programs, which ultimately enrich the quality of life in the region.

Solutions

The findings presented here are consistent with the hypothesis that investment in telecommunications infrastructure pays off in the social, political and economic growth of a country. The solution is obvious and simple, but needs careful thought and planning. We must identify and create investments in infrastructure, as described in the case of Africa ONE Project, to produce high economic and social returns. A developing country must have a motivator, or "spark" to direct and focus the efforts necessary to develop atelecommunications infrastructure. Without a motivator to provide the spark, such as Sam Pitroda has done in India, there will be little action to develop a telecommunications infrastructure. Potential leaders who can provide such motivation should be sought and encouraged.

We will have arrived at a solution when we have developed and implemented specific investments to improve the development of telecommunications infrastructure in under-developed and developing countries. Every country has unique domestic conditions and there is no such thing as a standard rural subscriber on which to model and plan solutions.

Conclusion

The conclusion must be drawn that the political leaders, telecommunication planners and funding agencies cannot act in isolation. Telecommunications can be a tool to help achieve national and social goals. For the maximum benefit to be derived the telecommunications system must be integrated in national and regional development plans. Therefore, telecommunications planning should be included in planning of other development sectors such as infrastructure (housing, transportation, electrification), social services (health, education, etc.) and agricultural and industrial development. Similarly, funding agencies must not consider telecommunications in isolation but as one of many strategies for development, and as a key support to other sectors.

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