ASEAN workshop on Measurement of Digital Economy September 1920, 2002, Bangkok, Thailand

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ASEAN workshop on Measurement of Digital
EconomySeptember 19-20, 2002, Bangkok, Thailand
Status of E development in Lao PDR

• Phonpasit PHISSAMAY
• Director of Information Technology Center
• Science Technology and Environment Agency
• phonpasit_at_stea.gov.la

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Country Background

• Geography
• Area 236,800 Km2
• 70 of mountains and high plateaus
• 1898 Km along the Mekong river
• 18 provinces, 142 districts and 10,912 Villages
• Population
• 5.2 million (2000)
• Growth rate 2.8
• Families are large (average 6 persons)
• 85 lives in rural areas
• Economy
• The Lao economy is mainly based on agriculture,
  which employs over half of the work force and
  contributes over 50 of GDP
• Annual per capital income of 290 (2000) - LDC
• 39 of population lives in poverty

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Telecommunication development

• Less than 4 of household have a telephone, Less
  than half of Laos districts have fixed telephone
  service and only urban areas. There is a waiting
  list of 8,897 alone in Vientiane
• The GSM was introduced in1994, now the network
  is available in 9 provinces, estimate that is
  less than 10 of population covered by mobile
  signal. In 2001, mobile subscribers accounted 1/3
  telephone with the mobile density 0.25. The
  subscribers grew by 75 between Jan-Sep 2001
• In year 2000 the M-Phone prepaid service
  launched, there were 5,402 subscribers in 2001.
• The price still very expensive for both fixed
  line and mobile.
• In 2001, the sector has been open for competition
  
• The nation a faces immense technical and
  commercial challenges expanding
  telecommunications, due the most of population
  resides in rural areas, transport and electrical
  infrastructure are scare and income are low.

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Internet development

• Lao PDR has been one of the last countries in
  Asian region to establish full Internet
  connectivity, Lao PDR has largely remained
  disconnected from transnational world of
  cyberspace.
• Government ministries make little use of the
  global network and the business sector has
  equally been slow to implement Internet related
  application, there are several reasons
• The most obvious one is the lack of
  infrastructure. Nonetheless, only a faction of
  existing PCs is actually connected to the
  Internet.
• Few government officials use the Internet and If
  they do, it is mainly to exchange e-mail.
• There is no clear policy and lack of ICT master
  plan.

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The Market today (Internet development)

• LANIC has just certified 3 official ISPs license
  to Laotel, Lanexang and Champalao, also
  discussion on extending license to Globenet and
  Planet companies.
• At September 2001, they had around 2,900
  subscribers with LaoTel controlling around three
  quarters of the market. Based on multiplier
  users, estimated around 9,000 users in the
  country. The users has increased from 1/10,326 in
  1998 to 1/615 by September 2001
• Approximately 60 Internet café operate in Laos,
  with about 45 in Vientiane. The users at Internet
  café has grown by 50 if compared to the previous
  year.

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How much does its cost (Internet development)

• The ISPs and Internet Café were independently
  setting the prices based on users demand and
  market competition. However most of them are
  targeting to foreigners and big companies
  customers, which are limited to Laotian who are
  not using the Internet for commercial purpose.
• The dial-up Internet pricing is relatively
  expensive for South East Asia region (1 /h for
  ISP 34 cent/h for Telephone charge).
• The wireless is 200 per month plus 2,500 for
  installation.
• Internet Café charge between 0.55 - 1.51 per
  hour

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The Internet Users (Internet development)

• The government does not extensively use the
  Internet or ICT. Not all ministries have Internet
  access and for those who, have, the access is
  also limited to a few Internet Account. The
  average number of PCs with Internet Access in
  each ministry is about 10-15 PCs.

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The comparative (Internet development)
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E-business

• There is little in the way of E-business, which
  the 5 reasons
• E-business are very new concepts, in the Lao PDR.
  Little is known about the culture and technology,
  therefore it is very difficult for business to
  identify the potential benefit.
• Overall Internet access and the number of
  Internet users are too low to justify the
  investment required to establish and E-business.
  The only real feasible business endeavors related
  to tourism
• There is a definite lack of expertise and
  experience. Local businesses that have web sites
  often use their sites only as advertisement tools
• There is little need for local business to extend
  their operations. Market concentration is Local
• In the country still lacking of Credit card
  system, E-banking, E-payment and cyber law.

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E-business (2)

• Some initiatives related to E-business
• The ministry of Commerce has recently established
  the Trade Information Center, which also created
  portal website for trade promotion as well as
  organized the E-commerce seminar.
• The National Tourism Authorities has also
  established the Tourism Information Center, which
  also provide the online information for promotion
  the tourism activities and business.
• The ISPs also provide the E-business and
  e-commerce solution for some private companies
  such as design and hosting websites for them,
  including the money transaction.
• The Information Technology Center has also
  regularly conducted seminars and training courses
  on e-commerce in Vientiane.
• With the E-ASEAN framework, the national
  taskforce is also working out on cyber law and
  IAI.

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IT Administrative bodies

• Two main bodies
• STEA was given approval by the PMO to implement
  the overall policy for monitoring and controlling
  IT in Lao PDR.
• IT monitoring and Management (DST)
• IT RD (ITC)
• Knowledge base capacity development (ITC)
• Creation Approval of IT Standardization (DST
  ITC)
• IP Copy right (DST DIP)
• Consultant and Service (ITC)
• LANIC was given jurisdiction over matter
  regarding national internet policies
• Monitoring and Management of Internet in Lao PDR
• Coordinating with regional and Internet
  organization
• Operate National Internet gateway, Government ISP
  (ITC)

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IT development issues

• Lack of Coordination Many areas of overlap and
  redundancies in current activities regarding IT
  development. There needs to be coordination
  system in place to manage resources, to minimize
  inefficiencies, and to maximize development
  output and benefits.
• Lack of Standards There are virtually no IT
  standards. Both private and public sectors use
  several convention to integrate IT into their
  current organization structure (Character sets
  software and Hardware for LAN, WAN and Intranet)
• Lack of IT knowledge Capacity In the government
  is lack of expertise in areas relating to
  formulation, implementation, maintenance of
  National IT strategies and policies. In education
  institutes is a lack of resources and knowledge
  base for the integration and promotion of IT.
• Infrastructure The current telecommunication
  infrastructure does not supported technologies
  for high-speed information access. The poor power
  supply, which suffers power failure and very bad
  voltage and frequency
• The low level of purchasing power buy computers
  by both private and public.
• Localization issues (Software in Lao platform,
  Content book in Lao)

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Conclusion

• In country such as Laos, with so many pressing
  basic development needs, it is not surprising
  that attempts at establish Internet connectivity
  and E-business have been hampered by a general
  lack of skills and resource, Low levels of PC
  penetration, combined with poor telecommunication
  network with also slow the process.
• The necessary initiatives
• The urgent and greatest need in the country is
  for skilled professional and technical
  informatics experts to plan, design, install and
  maintain.
• National ICT policy and Master plan must be
  developed
• Create the environment for the experts, teachers
  and researchers in order to be coordinated and
  united.
• Promotion of IT education and localization
• Strengthen the Internet penetration and
  E-business opportunity
• Create government Intranet and e-government,
  e-society.
• Create the National Standard
• Promote the IT industry (Tax promotion and
  IPcopy right)

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Thank you