PACNOG Talk

30 June 2008 Dan McGarry1 Comment

One of the items in yesterday’s brain dump was a talk I presented to the Pacific Network Operators Group (PACNOG) at the Sebel Hotel. It’s titled ‘Network Effects: Social Significance of Mobile Communications in Vanuatu‘. It explains Network Effects and how they manifest themselves in village life, then looks at some obvious and not-so-obvious implications for network providers in the Pacific. Briefly, my point is that village life features very tight communication loops from which no one is exempt. The one-to-one (but not the one-to-many and many-to-one!) aspects of village communications will be enhanced by mobile comms, and smart network operators should do what they can to enhance this effect. The result will be that our island geography (and gestalt) creates more value per user than traditional business analysis might lead us to believe.

One of the questions that came up regularly when I asked for feedback on my talk was how people would be able to afford mobile services. Given that 5000 vatu (about USD 50) per month is not an unusual family income in the village, even topping up with 200 vatu credit (currently the smallest increment available) would be a burden, would it not? The answer is yes and no.

There’s an interesting relationship between commodity prices and agricultural production here in Vanuatu. When the price of commodities like coffee, copra and cacao rises, production actually decreases rather than increasing. The reason for this is that the need for cash in rural areas is quite limited. Once a villager earns enough to pay school fees, clothing and a few staples, there’s no more need to sell their crop. So when they can earn the same amount of money for less effort, they do so.

This is one of the factors leading to a kind of economic insulation for the average ni-Vanuatu. I wrote a bit more about other aspects of this phenomenon in this article for the Daily Post.The bottom line is that the cash economy remains small in rural Vanuatu because the cash economy is only a small part of the whole picture.

When mobile communications are introduced, the perceived need for cash increases. In the short term, this puts stress on the pocket book, but things can probably work themselves out through a nominal increase in the amount of cash being generated (e.g. through cash crops). Add to this the increased efficiencies that come hand in hand with better communications, and we’ll likely see more prosperity and economic activity – in cash terms – than less.

In other words, this is not a zero sum game.

That detail is still lost in many traditional planning processes. In fact, ignorance of this dynamic is a bigger inhibitor to growth than many other external factors. If people can’t forecast capacity properly, their estimates come out consistently low, and because products and services don’t meet the need, they don’t have the effect they’re intended to, so people don’t invest in them.

Very often, taking the last few years’ numbers and extrapolating linear growth creates a self-fulfilling prophecy in which growth remains linear only because that’s as much as it can grow. Unfortunately, it allows analysts to sit back and say, ‘See? I told you so.’

Update: Looking a little further down this continuum: Once the inherent economic elasticity in this system is used up, however, poverty sets in. An example would be people planting cash crops in places once reserved for food crops. It’s a fine line between building the cash economy and building dependence on the cash economy in such as way that a person’s outputs can’t meet their costs.

Hodge Podge

29 June 2008 Dan McGarry

Here’s a quick and dirty list of geeky things that I’ve been stewing over recently:

Greg Ross’ delightfully intelligent Futility Closet features a very interesting map. Memorising it should be a pre-requisite for any technology discussion. Understanding it should be a criterion for sainthood.
Jan Chipchase is exploring that map. He’s a poster boy for the the new geek chic: rambling around the world, finding out how people live their lives, then trying to find ways to make technology that fits. I’d be more condescending about his rock star status, but hey, that’s mostly what I do, too. If he’s the rock star, then I’m the wandering minstrel. I suppose each of us is good for the other.
I say it below, but I need to set the proper emphasis here: Mobile communication devices are the application platform for the rest of the world. Power, cost, literacy, localisation and different approaches to network management (i.e. more entrepreneurial space in newborn networks than in established ones) all contribute. 2G, 3G, NG are all great, but think about SMS interfaces first. There’s a huge opportunity space there.
Digicel launched their mobile phone service last week, making a bigger splash than anything I’ve seen since I arrived here.
- Photos of the mad queuing (and a couple from the party) here.
- They’ve done admirably in the first 90% of the job, which was getting the network up and running. Let’s see how they do on the other 90% – keeping it running.
- I bought myself a 2000 vatu (USD 20) phone and a separate SIM card for my Motorola in order to test the service. I’d been using the Digicel service for barely two days, and when I ran out of credit, I swapped in my TVL SIM (with nearly 4000 vt credit in it) and had an important call fail 5 times in a row. I immediately put my Digicel card back in and stumped up another 1000 in credit. In less than two days, I’d come to assume that calls would actually work. This in spite of the fact that I’ve been using TVL’s services (and working closely with them on occasion) for years. I should have been inured to their level of service and surprised by the improvement that Digicel provided, but the opposite was true. Lesson: We only think about the network when it’s not working.
- I heard rumours that Digicel had to fly a replacement generator to Ambae by helicopter on their first full day of service. The story might be a case of the Coconut Wireless running a little hot, but if it turns out to be true, I would be interested to know whether the machinery died of natural causes or of bush knife. There’s a whole article in here, but briefly stated, here’s the equation: A radio tower is of no value until it’s turned on, so nobody objects to its existence until the service starts up. From that moment on, people have something they can hold hostage, so however generous the initial agreement, there’s almost always a re-negotiation, usually with a metaphorical knife to the throat.
- Update: I’ve also got reports of an outage in Tanna in the South. How does it go again? One is an accident, two is incompetence, three is enemy attack. Or heck, it could just be birthing pains.
- Double Update: Turns out it wasn’t outages, per se; it was delays commissioning some of the systems. Sources with a clear view of the proceedings told me that Digicel could not have turned up their service at all even a few before the launch date – that’s how close to the wire things got. To be clear: This doesn’t reflect poorly on Digicel at all. Quite the contrary. I’ve seen projects that were trivial in comparison lose months (even years) because of minor technical or logistical problems. The fact that one or two of the generators weren’t 100% ready on the day does nothing to diminish the fact that they increased communications coverage nationally by an order of magnitude; and that, to my knowledge, is unprecedented anywhere in the Pacific since 1942.
On Monday at 09:00, I presented a talk to the Pacific Network Operators Group (PACNOG) at the Sebel Hotel. It’s titled ‘Network Effects: Social Significance of Mobile Communications in Vanuatu‘. It explains Network Effects and how they manifest themselves in village life, then looks at some obvious and not-so-obvious implications for network providers in the Pacific. Briefly, my point is that village life features very tight communication loops from which no one is exempt. The one-to-one (but not the one-to-many and many-to-one!) aspects of village communications will be enhanced by mobile comms, and smart network operators should do what they can to enhance this effect. The result will be that our island geography (and gestalt) creates more value per user than traditional business analysis might lead us to believe.
The telecom licensing regime will be opening up a little further some time before the end of the year. I need to find a way to convince local operators to take advantage of this opportunity. It won’t be easy because:
- There are a bunch of better-funded outsiders who want in, and are willing to sit on losses in order to get market share; and
- Capital investment for Vanuatu companies can be really, really hard. Most companies here live hand to mouth, so asking them to amortise any kind of investment is a huge demand.
- Hopefully, the Universal Access Fund will help mitigate the problem. It’s not clear yet how it will be administered, and there will be a lot of flies buzzing around that particular pot of honey, so I’m not willing to get enthusiastic about the opportunity just yet.
Now that we’ve actually got the beginnings of truly nationwide communications, we need to deal with power generation. The toughest part will be hardware. See, we’ll never generate enough power to run a desktop computer in every house, and community telecentres are expensive and of limited usefulness, so we need to see how suitable things like the Asus eEe, OLPC and smart phones are to use in the islands.
- On that front, Wan Smolbag Theatre will be getting about 25 XO laptops soon for their young people’s literacy project. Yay! They’ve also sent an eEe up to their youth center in Loltong on Pentecost island for evaluation.
- The Mac Minis we first sent there performed in a less-than-stellar fashion due primarily to hardware problems. Even trivial problems (like a stuck CD) can take weeks or months to resolve.
- The biggest challenge we face is the assumption that being in the tropics means we have lots of sunlight. Uh, maritime climate, anyone? Jungle? Mountains? Solar panel not work good on cloudy day under tree with no flat places. Okay, there are places in Vanuatu where solar power is fine, but unfortunately, it’s least reliable right when you need it most (e.g. hurricane season).
- One way to mitigate power requirements (and decidedly non-trivial UI/literacy issues) is to leverage SMS-based apps as a computing platform. See above. There’s a lot of work going on in this area in India and Africa. We need to do more here. See this and this for previous rants on the subject. Must find more sponsors….
UNDP has finally released funds for the Vanuatu leg of the People First Network. Only 5 years late. (Yes, you read that right: 5 years.) I’ll be doing a little consulting to try to re-frame the project to reflect the changes that have occurred in the last half decade.

Somewhere in here, I eke out a living, write 2000 words a week and try to have a life. I’d love to be a rock star just like Jan and find a Daddy Warbucks to take all my mundane worries away, but I’m not starving, so I can’t complain.

Painting the Country Red

27 June 2008 Dan McGarry1 Comment

I’m writing this neither to praise Digicel, nor to bury them. What follows are anecdotal observations of the first few days after the birth of nation-wide communications in Vanuatu.

[This week’s Communications column for the Vanuatu Independent.]

Digicel launched their mobile phone service in Vanuatu this week with a splash the likes of which have not been seen since Independence. Outside observers will find it hard to believe just how much excitement the arrival of a new phone company has engendered in Vanuatu. This column needs to be read in the context of a nation that, in terms of communications, has been utterly impoverished, but whose poverty seemed to vanish in a single day. In this light, the prospect of nearly ubiquitous mobile coverage at affordable rates is takes on historical proportions.

This week’s column isn’t so much a commentary as a sketch of first impressions about Digicel, its services and people’s reactions to both.

Digicel’s launch was a coordinated campaign designed to make it look to most people as if it sprang fully formed from the ground on the morning of the 25th. Billboards went up overnight, the flagship store was unveiled, the largest bandstand in Vanuatu history was constructed in the aptly-chosen Independence Park. Top-up signs appeared on store fronts everywhere, sometimes four to a block. Even newspaper sellers were transformed into Digicel vendors. One of the biggest concerts in Vanuatu history went off on-time and without a hitch. Hundreds of people – athletes, the disabled, the wealthy and the powerful – were entertained with food and drink that flowed smoothly and in apparently limitless quantities. It culminated with the biggest fireworks display in living memory.

Digicel wasn’t just showing off. There was a deliberate point to be made, and they made it emphatically: Digicel delivers.

Read more “Painting the Country Red”

The Case for Openness

20 June 2008 Dan McGarry1 Comment

I’ve been an interested observer and sometime participant in the development of communications in Vanuatu for coming on five years now. In all that time, probably the most interesting phenomenon that I’ve witnessed has been the effect of openness, both within the IT community and among users of this new technology.

[This week’s Communications column for the Vanuatu Independent.]

I’ve written about this before, of course. Here is a brief excerpt:

“Those in business and government who have traditionally worn the office of custodian of the public good will find that, while the[ir] role is not diminished, it will be shared among a great many others. To coin a tortured phrase, improved communications means that we’ll have to learn to communicate better.

“Barriers between institutions will need to come down as well. Some of them, such as interconnectivity between competing mobile phone systems, will be legislated away, but others will only fall through our collective willingness to accommodate others, to show some flexibility in the face of change, and most of all from our collective willingness to allow these new channels of communication to flow productively in both directions.”

The last 12 months of rapid change have been accompanied by mixed results in this regard. I was originally tempted to report on progress in the form of a report card, but this is neither the time nor the place for naming and shaming. The purpose here is not to embarrass. On the contrary, it’s to demonstrate how taking advantage of Vanuatu’s status as a small community is more rewarding than conventional wisdom might lead us to believe.
Read more “The Case for Openness”

The Thermocline of Truth

18 June 2008 Dan McGarry

I’m going to let someone else do the writing for this one. I like the metaphor a lot. It helps that it’s true, too.

I’ll integrate this into an upcoming column sometime soon.

Walking The Beat

15 June 2008 Dan McGarry

[Originally published in the Vanuatu Daily Post’s Weekender Edition.]

On Tuesday the Daily Post published a Pacific News Service article about the Project Wickenby debacle, in which Vanuatu-based members of the Australian Federal Police raided four local financial institutions for evidence of misdeeds by Vanuatu citizen Robert Agius.

The raids raised a storm of controversy concerning the right of the AFP to conduct such operations on Vanuatu soil, and raised questions concerning their treatment of a Vanuatu citizen.

Politicians, chiefs and private citizens all expressed dismay at what they perceived as an assault on Vanuatu sovereignty by a ‘bullying’ Australia, who some claimed abused its status as a primary aid donor to leverage the complicity of the Vanuatu government.

The PNS story largely recapitulates these much-discussed events. But it’s noteworthy because it contains the first public response from the commander of the Vanuatu detachment of the AFP’s transnational crime unit in Port Vila.

These comments demonstrate a fundamental failure to understand the dynamics of the situation in Vanuatu. Worse, due to unfortunate phrasing, they appear to hold community values and approaches in low regard.

Some will take this as a reason to remain silent on contentious issues. A more appropriate response to this would be more, not less, communication.

Whose Success?

6 June 2008 Dan McGarry1 Comment

[This week’s Communications column for the Vanuatu Independent.]

I don’t often talk about my motives. Newspapers, in my opinion, make lousy confessionals. I’ll make an exception today, because it helps make a point.

I recently experienced a curious moment. I’d spent a sunny Port Vila Saturday at the office catching up on email, news and whatnot. There were a couple of stories in the local newspaper about communications companies setting up shop here, there was a link to a story about ‘eternal’ airplanes – unmanned spy planes that never have to land. There was a story about spy agencies listening to our Skype calls. One about radio tag implants for everyone, so we can be tracked more easily.

I locked my screen, turned off the lights, and headed out of the office. The sun was westering, drifting almost level with the bay. An acquaintance happened by and invited me for coffee.

I found myself curiously disoriented. It’s happened before, and will no doubt happen again. In the course of a few steps, I’d traveled from an echoing data chamber to a sleepy village where strangers don’t exist.