IUCN Pakistan Programme
SDNP: The Way Forward
The global SDNP's logo is the tangram which is based on seven shapes. These can help build an amazing variety of figures. Like the tangram, SDNP is based on the concept of building solutions. Countries, with assistance from UNDP, design their own unique plans to achieve sustainable development.
The figure of the tangram on the cover can be enlarged and cut out to develop figures such as those shown below.
SDNP, Pakistan, designed its unique logo in January 1993, before the logo for the global programme was developed. The beautiful motif of the Ying and the Yang are integrated with a picture of two persons shaking hands, as seen from above. This signifies the human aspects of global networking and emphasizes the ideal of the free exchange of information. The binary symbols hugging the Taoist circle represents the digital electronic medium -- SDNP's unique vehicle for helping the dissemination of information relevant to sustainable development.
SDNP is part of a global programme supported by the United Nations Development Programme (UNDP). In Pakistan, SDNP receives programmatic support from IUCN -- The World Conservation Union. This work was carried out with the aid of a joint grant from the International Development Research Centre (IDRC), Ottawa, Canada, and UNDP.
Sustainable Development Networking Programme (UNDP)
P.O. Box 3099, Hse 26, St 87, G-6/3, Islamabad.
root@sdnpk.undp.org
September 1996
"Until one is committed, there is hesitancy, the chance to draw back, always ineffective. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one commits oneself, then providence moves too. All sorts of things occur to help that would never otherwise have occurred. A whole stream of events issues from the decision, raising in one's favour all manner of unforseen incidents and meetings and material assistance, which no man could have dreamed would have come his way. Whatever you do, or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now."
Goethe
Contents
1.1 Enlarging Email Services to include Internet Connectivity
1.2 Private Network or Developing National Infrastructure
1.3 Training Activities
1.4 Consultancy Services
1.5 Databases and Web Sites for Easier Access to Data
1.6 Simulation Centre
1.7 Staffing
1.8 Future Management Structure of SDNP
1.9 Decisions to be made by UNDP and IUCN
2. History
3. Services: What will SDNP Offer?
4. Markets and Competition
5. Production: How will SDNP produce its services?
6. Marketing
7. Risks
7.1 Connectivity Issues
7.2 Coping with Swift Changes in Technologies and Demand
7.3 Databases and Web Pages
7.4 Staffing Concerns
8. Finance
9. Milestones
Appendix 1
Quotable Quotes
Preface
This report is to serve various purposes: to be a progress report, an analysis of possible options that SDNP can follow to become self-sustaining, and to be used as a basic document from which a business plan could be produced if these options are approved. As such, its structure is a compromise between such requirements.
The comprehensive executive summary details the main areas that SDNP could specialize in: Network Services; Training; Consultancy Services; Database Development; Simulation Centre. All these would require a considerable enlargement of the SDNP's activities and would necessitate a pro-active role for UNDP in its support for SDNP's programme. Prompt decisions that UNDP and IUCN need to take are outlined.
The History section that follows covers briefly the developments to date since late 1992, and in greater detail a description and analysis of networking and other activities since Oct 1995. This section lays out clearly, using tables and graphs, the results of networking activity, its volume and income receipts and the growth of its nodes. Activities prior to that are described in SDNP Progress Report: Oct 1994 to Oct 1995.
Section 3 details the services that SDNP will offer in future. Section 4 gives an overview of the market for information technology; a comparison of what SDNP intends to provide with what other's offer. A market niche is suggested for SDNP.
While Section 3 describes SDNP's future services, Section 5 details how these will become possible: the various organizational step needed to make the programme successful.
Two relatively short sections, 6 & 7, look at marketing and possible risks.
In Section 8 the financial implications for the future are outlined. The estimates provided may require significant revision, which will depend on what programmes are approved and further investigation of costs.
Section 9 lists the expected milestones of the project until end of 1998.
A single appendix gives a list of activities of SDNP since Oct 1995.
At the end is a list of quotes from around the world related to networking, development and related issues.
1. Summary
This report is principally for the Tri-Partite Review (TPR) of the Sustainable Development Networking Programme (SDNP) that is to be held in Nov 1996 to determine its future course. It also is a document to seek advice from SDNP, New York and the International Development Research Centre, Ottawa. After a decision is reached this can be used as the back-bone of a "business plan" for the next two to three years.
The current donor support for SDNP will end in March 1997. This report outlines ways in which the project can grow and become sustainable after this date.
Activities and statistics related to work since Oct 1995 are reported. Some future projections of costs and income are based on these.
This rather long summary section consists of 9 sub-sections that follow. In the first eight subsections various options for the future are outlined, supported by fairly detailed justifications. Sub-section 9 highlights the areas where decisions by UNDP and IUCN are required.
1.1 Enlarging Email Services to include Internet ConnectivityDemand for SDNP's email service continues to grow despite several commercial providers providing more "sophisticated" and cheaper services. More importantly, SDNP has come to be the standard bearer of electronic connectivity in Pakistan, and as more networks spring up it can help to forge alliances and cooperation between them as an honest broker.
To a considerable extend SDNP's reputation has been enhanced because it is the only national network that actively promotes information exchange. This is done through the encouragement of free discussion lists and conferences which help to create "virtual" communities of users that discuss a range of topics relevant to sustainable development. SDNP also makes a special effort to point users to relevant sources of information on Internet and to institutions nationally.
Existing and new users demand full Internet connectivity from SDNP. Most of SDNP's revenue must continue to come from an enhanced Internet service and this can be the only way of becoming self-supporting in the medium term. Additional revenues, albeit small, can be generated by efforts in areas such as training, consultancy, database and Web page development, and setting up of a simulation centre.
1.2 Private Network or Developing National Infrastructure
Mr Chuck Lankester, Director, SDNP, New York, in a recent article highlighted the vast sums of money that organizations such as the World Bank, The Asian Development Bank and the UN system use on communications. Mostly, these organizations set up their own data networks at high cost, which Mr Lankester feels would be better spent in developing indigenous capacity. The argument for ensuring security of information used to justify private networks has now vanished with the appearance of reliable encryption software.
The UN offices in Islamabad having recently moved to a joint central site have agreed to set up of an Internet connection through a 64 kbps line. All the Internet traffic will occur during office hours, so this network will remain essentially unused for 16 hours on working days and on weekends and public holidays. Instead of this, if the UN agencies were to obtain full Internet service from SDNP, the 64 kbps bandwidth for international connectivity would be fully utilized by the public as well as the UN system, its many projects, NGOs, development agencies and relevant government departments around the country. The UN system would in turn be able to connect with its in-country projects through SDNP's network, which will be enhanced once the nodes in Islamabad, Karachi, Lahore and Peshawar are linked by PTC's Public Data Network (PDN). Additionally, SDNP will be able to manage a Web server on a 64kbps line with developmental information of relevance to national and international users. As SDNP is to move increasingly towards the provision of information, the availability of the 64kbps is essential for this work.
Hardly any additional funds from the UN would be needed as the amount which would otherwise be given directly to the PTC would now be channelled through SDNP. To implement this plan UNDP will need to negotiate with PTC a (gratis) data network license for SDNP, which it should be eligible for because of its not-for-profit mandate. SDNP's current gratis license ends on December 31, 1996.
In the event that the UN decides not to follow the above suggestion and sets up a private network, it should consider allowing SDNP to move Internet traffic through it. This will still require UNDP to negotiate with PTC for getting SDNP a gratis license to offer services to its current and future users.
1.3 Training Activities
Training in the use and installation of networks will become increasingly important nationally. Also, training needs in the office-related information technologies will expand considerably.
Under-utilization of the capabilities of expensive information technology equipment in the North is not uncommon, but in Pakistan this is even more damaging as some of this equipment is obtained at great cost and with the hope of improving efficiency, but there is not much to show for eventually. This it primarily because of the low level of training given to staff and officers. Another aspect of this problem is that executives and middle management have very limited knowledge about these technologies and very often items are purchased depending on how persuasive the vendor is. SDNP can make a major impact in this area by offering short and medium term courses for a range of clients.
1.3.1 Using PLA Training Centres
SDNP can offer training at computer centres run by the Pakistan Library Association (PLA) in Islamabad, Karachi, Lahore, Peshawar and Quetta. These well-equipped centres were set up by a 3-year grant from the government of Netherlands, which ended its funding in August 1996. At present infrequent courses are held for librarians on a range of software packages, including a library software package that was developed as part of the grant from the Netherlands. Most of the year these centres are unused and hence the PLA is keen to collaborate with SDNP. This would make these centre open to other users, generate more revenue for PLA, and in turn bring funds to SDNP. SDNP's collaboration with the PLA centre would also create a good precedent for two previously donor supported projects joining hands for creating more services and jointly moving towards sustainability. Librarians will be critical allies in SDNP's efforts to increase accessibility to national data, and therefore it is essential to work closely with them.
1.3.2 Training Generally
SDNP will also hold workshops at venues other than the PLA centres. To enlarge training activities, SDNP will set up seven networked PCs in a new training room in its Islamabad office. This room will allow users to access one of the two 64-bit machines that Hewlett Packard Company is to donate to SDNP. A datashow and video projection facility will allow an almost continuous training programme at SDNP, Islamabad, for a limited number of people. Larger groups in Islamabad will be taught at the PLA centres, hotels or within organizations which want on-the-job training for their employees. The UN system and IUCN's other programmes could be SDNP's first clients!
The idea of getting a franchise of a North American training institute is also being explored. This will allow SDNP to give internationally recognized certificates, based on a test, to those who successfully complete training offered by SDNP.
1.4 Consultancy ServicesAs medium to large organizations set up local area networks and obtain connection to the Internet, they are left at the mercy of vendors without recourse to independent, objective advice. Management staff are unable, due to lack of training, to assess real needs either, resulting in the purchase of unnecessarily expensive and overly sophisticated technology that is later under-utilized. In the past, SDNP has provided both free and on-payment consultancy services for such matters. Further expansion of this work is contingent on the recruitment of a full-time marketing staff member. Consultancy and marketing has important links with SDNP's training programme.
As part of the consultancy service SDNP can develop Web pages for a range of organizations, as well as set up Intranets within an organization for the in-house sharing of information. The market for Intranet will grow as large local area networks are setup, and as higher bandwidths become available organizations and businesses will set up Web pages.
1.5 Databases and Web Sites for Easier Access to DataIn preparation for freer access to data it is important that organizations in possession of useful data get it into a form suitable for access through networks. Raw data is often about as useless as no data. It therefore needs a fair bit of pre-processing.
Decision making in government and elsewhere in Pakistan is adhoc, which to some degree is due to non-availability of relevant data. Much of this information is stored in government files and computer systems in a form that is not even accessible to the departments that possess them. UN's own data is generally not accessible to decision makers here as it is either in paper form which are often difficult to get hold of or in data bank presently not accessible through networks in Pakistan.
In consultation with the UN agencies, SDNP's Web Server can carry their data which is relevant to others as well as be a "mirror" site for useful data which is kept on UN's computers in New York. In the new UN office in Islamabad, SDNP can help set up an Intranet for exchange of information within the different UN offices. Some of this data relevant to UN's in-country projects can also accessed by them. All this also applied to IUCN, its projects, and its member organizations in Pakistan and internationally.
1.6 Simulation Centre
The Hewlett Packard Company will be donating two high performance state-of-the-art 64-bit computers to SDNP in Pakistan along with some other equipment such as laptop computers, scanner and printer. The main computers would be an over-kill for basic Internet work, though it may be possible to use them for housing very large databases. It would however be better to think of more creative uses for such machines. One such possibility is the setting up of a simulation unit of SDNP that could do contract work for industry and simulate various processes. It could also handle some meteorological process, pollution dispersal, and a whole range of problems limited only by imagination and the considerable capacity of the machines. A great deal of further discussion with experts in the country will be necessary to focus on commercially feasible projects.Alternatively, UNDP can explore the creation of a simulation centre in association with the University Grants Commission (UGC), which through its network would allow academics and others in research laboratory to use these machines. This centre could form the focus of a new national computational facility if the UGC is willing to invest significantly in this project in terms providing infrastructure, equipment and funds for supporting some permanent and visiting staff. The private sector could support such a place provided problems relevant to industry are solved there, and training imparted to persons who would later find employment in the sponsors' company. A proposal for setting up such a national centre of information technology was floated by the Coordinator/Programme Director of SDNP in the early 1990s and also recently by two researchers.
1.7 Staffing
The SDNP staff is over-worked and will need to be enlarged considerably if all or some of the activities recommended are pursued. Senior staff have had to handle very time consuming administrative chores leaving very little time, if any, for creative activities which would allow SDNP to grow stronger and in more fruitful directions. New recruits in the administration and marketing sections mainly, as well as the technical side, will have to be recruited to even maintain current growth.
1.8 Future Management Structure of SDNP
The project is currently managed by IUCN. If some of the above suggestions are approved, SDNP will be considerably larger than at present and it will be necessary to consider a new organizational and management structure for it. Some of the ideas that have been suggested are (a) that it become part of a new company that IUCN intends to set up by early 1997 (b) it becomes an independent NGO such as what happened when IUCN spun off the Sustainable Development Policy Institute. SDNP would then need to report to a board of directors, which will comprise of UNDP, IUCN and others. For the first half of 1997, SDNP could be managed by IUCN while arrangement are made to get it an NGO status and the necessary infrastructure for it to operate as an independent body. A decision on this is required.
1.9 Decisions to be made by UNDP and IUCN
1. UNDP and other UN agencies to decide whether to support SDNP to become their Internet service provider and to pay it the amount it would otherwise give to PTC. It should also consider giving SDNP the amount it would otherwise invest in ancillary equipment if it were to set up a private network.
2. UNDP to take a pro-active role in getting the necessary permission from PTC for SDNP to operate a network with gratis license. This is to be on the basis of SDNP being a not-for-profit organization working to improve access to data on sustainable development.
3. A decision is required about the future management structure of SDNP, ie whether it should be part of an IUCN run company or be set up as an independent NGO.
4. The five areas of work as outlined in this report require approval. This should be followed by an agreement to cover the cost needed for an expanded programme. The details can be worked out in due course as to how much will be given to SDNP after March 1997. SDNP is to receive an additional $61500 from UNDP's IP Fund before the end of this project.
5. UNDP to explore additional funding from other donors.
6. UNDP and IUCN (and its members) to ensure that all future projects with which they are involved in will have a line item in their budgets for electronic communication. Funding in existing projects may also be directed towards such speedy connectivity thereby saving funds. SDNP would facilitate such connectivity. They will also support SDNP's training programmes by sending their project staff from training in information technologies to SDNP's courses where appropriate.
7. UNDP and IUCN to work with government departments and other agencies, including NGOs to assist them financially with getting their data online. SDNP will assist on the technical side.
A speedy decision on these items is required from the UNDP and IUCN. To facilitate this, a history of the project follows, which also contains information about the current status of the project. It is important to read SDNP's comprehensive Oct 1994 to Oct 1995 Progress Report that detailed the thinking about the project's future. Several new developments have, however, led to major changes in the options now available. These are described in the sections that follow.
2. History
2.1 Global PerspectiveThe SDNP is a global initiative launched by the United Nations Development Programme (UNDP). In Pakistan it receives joint support from UNDP and the International Development Research Centre (IDRC) of Canada. The global SDNP is managed by the SDNP office in New York which handles operational nodes in at least 16 countries, with Pakistan being one of the most active nodes. In Pakistan, SDNP is managed by IUCN - The World Conservation Union, and receives general supervision from IUCN's Communications Unit.
SDNP in Pakistan is part of the global UNDP programme to improve access to information on sustainable development issues. Its developmental objective is to promote sustainable development and the implementation of Agenda 21 through the National Conservation Strategy (NCS) in Pakistan by facilitating access to information, knowledge and expert advice, and by increased communication between stakeholders locally, nationally and globally.
2.2 Initial Phase
SDNP in Pakistan started in December 1992 with the appointment of the Coordinator/Programme Director followed by other staff. During the pilot phase (Dec 1992 - Jun 1993) the tasks performed by the SDNP team were according to the terms of reference stipulated by UNDP.
Since June 1993 SDNP has been at the forefront of the networking effort in the country, with activities involving the setting up of an electronic network, public outreach for popularizing this medium for information exchange, and in trying to change government policies that still restrict the free flow of information nationally and globally.
2.3 Administrative Structure
The Coordinator/Programme Director is responsible for the routine functioning of SDNP. Advice is sought, when significant changes are made, from an informal advisory committee comprising of 5 members. UNDP and IUCN are represented on this committee. All interactions with the committee members is by email. Most importantly, all senior members of the SDNP team are closely involved in decisions made regarding the operational plans and the future of the project. In addition, there is regular consultation with IUCN's Country Representative, its Communications Unit and Finance Department (who are responsible for the financial aspects of SDNP), as well as SDNP, New York.
The Steering Committee set up as part of UNDP's requirement for SDNP, and chaired by the UNDP Resident Representative has not been effective. It has only met twice since the start of the programme. If it is to become an effective body in future then UNDP and IUCN will need to request attendance from the right persons -- a combination of decision makers and technical persons -- who are interested in networking in the country. They should help create an environment for the opening of national sources of information and facilitate the reduction of telecommunication cost thereby making national and international access through the networks affordable for most citizens.
SDNP still operates with a lean staff, with staff members working an average of 50-60 hours a week. The total staff number nine located in 4 cities. With over 3500 nodes and steadily rising, user training and support takes a great deal of time. The expertise developed in-house is unique and it is important to retain it.
In the short to medium term it is likely that SDNP will be managed by IUCN but soon with SDNP's growing activities and the move towards self-sustainability it may be necessary for it change structure and either become a company or an independent NGO. It would then be directed by a board of governors comprising of representatives from UNDP and IUCN, financial and telecom experts, in addition to notable individuals who are in positions to enable information technologies become a valuable tool for sustainable development.
2.4 Activities and Growth
SDNP in Pakistan has recorded steady progress in achieving its objective of encouraging the flow of information about sustainable development in Pakistan. Its principal focus has been the provision of email services to a large number of users from a variety of sectors in four cities, and to point them to sources of information on the Internet and nationally, as well as help connect them to each other. In addition, SDNP has helped to popularize networking and issues connected with sustainable development through participation in fora, consultative groups and by presenting opinions in the national and international newspapers, journals and conferences.
After initially starting email services in Islamabad (within the IUCN office) SDNP moved to set up a full-fledged node in Karachi (in the IUCN's main country office) which was soon followed by a node in Lahore (in collaboration with an educational network, Edunet). The node in Peshawar started operation in December 1995 and is housed in the IUCN office.
During this period a number of network services have become fairly active. Subsidiaries of large communication companies, public and private, have sprung up in the aftermath of the government's "liberalization" policy in the communication sector. There remains a great deal of confusion about the government's thinking about the data networks, particularly those in the private sector. Clarity of government policy on import facilities, regulation and monitoring, will determine how quickly the private sector networks are going be become operational. A few brave companies, however, have already decided to take the plunge and have begun to provide service since June 1996.
Some of the more important activities of SDNP since Oct 1995 are listed in Appendix 1.
2.4.1 Quantitative Data and Analysis
Figure 1 gives a chart of the growth of nodes, the income and expenditure in four cities. Starting dates of services in these cities are given. Islamabad and Karachi now have a large number of users. Karachi's growth is particularly welcome as the city now has several service providers. Islamabad too continues to get more users despite the much cheaper and full Internet service provided by PTC. In Lahore, despite very heavy competition, there continues to be a steady stream of new users. Peshawar has yet to take off, though the free workshop there does attract a number of people. On the whole, this points to a great deal of latent demand. Despite no commercial publicity, user numbers continue to increase; many of them recommended by existing satisfied users.
SDNP now has almost 3500 nodes in 4 cities which amount to almost 7000 users across the country -- assuming on average about 2 users per node. This is a significant achievement considering that at the start of the project the goal was to have only 500 users in each city by March 1997.
Figure 2 shows a bar chart illustrating the new nodes formed each month in four cities. Without doing a detailed statistical analysis (that may not be possible any way because of the short run of data points) there is no distinct overall trend beyond a modest growth. Since Aug 1995, Islamabad, and since December 1995, Karachi, have had over 60 new users monthly. In Lahore, since Nov 1995, the number has been over 20/month. The average monthly figure for new nodes from Jan 1996 to Aug 1996 are provided at the bottom of Fig 2. The number of nodes being formed in Peshawar is low and it may take some time before networking picks up there.
In Figure 3 the income from the different nodes and the overall expenses are given in a bar chart. On the whole, the expenditure has been lower than the income. Fig 1 shows that for while total expenditure to date has been Rs 4,753,619, the income has been Rs 5,807,678.
A more accurate picture of the future trend is available through the average for Jan 1996 - Aug 1996
income/mo = Rs 476,679
expenditure/mo = Rs 251,741
_____________
Net income/mo = Rs 224,939
The two average income figures given below are computed from Fig 1.
Average income per month (Jan 1995 - Aug 1996) Rs 290,384
(this figure is much lower than the one given above
because for several months at in the early part of
1995 three of the nodes were non-functional or not
generating any revenue)
Average expenditure per month (Jan 1995 - Aug 1996) Rs 237,681
__________
Net income/mo (Jan 1995 - Aug 1996) Rs 52,703
Hence during 1996 the net income/mo has increased four fold over the average for the period Jan 1995 - Aug 1996. It would naturally be much higher than the average over the figure for the whole of 1995 when the Lahore node was going through its birth pangs.
Lack of regular billing and reporting of income, the absence of separate lines of income and expenses of each node in the IUCN financial system, and the large delays in getting financial information from Lahore are some of the factors that have contributed to some problems. In future these will be rectified, and greater vigilance in these matters will be exercised.
The statistics for Islamabad are given in Figure 5 for the period Oct 1995 to August 96. Data from other cities is not presently available to construct similar charts. Such data and much more will have to provided by other nodes in future.
Figure 5 reveals several interesting features, the most prominent among them is the large proportion (65%) of email users who operate their accounts from their homes. Although they account for two-thirds of the nodes, and require a lot of user-support they seem to provide a third of the revenue. From a purely business point of view this may not make sense (though we shall return to this point later) it is part of SDNP's mandate to popularize networking and it seems that the number of personal users points to this fact. These users are very active on the list and conferences that SDNP supports.
The proportionally low revenue from the Personal nodes is however deceptive when examined closely. A Personal node is used within a family and on average by about 2 persons. On the other hand in the Business sector, for example, most users use a local area network, and it is reasonable to assume that each Business node has about 5 users on average. Therefore the ratio of the # number of Personal to Business users is 130/75. If the user using the Personal account and the individual Business user used email equally then their revenues would be in the same ratio , ie 130/75; which is approximately equal to 33/15, the ratio of the revenue from Personal and Business nodes. This shows that the average Personal user generates about the same revenue as a Business user. The Personal user however requires a higher level of support from SDNP. This analysis has pointed out the need for a user-survey to find out how many persons use each node.
As nodes have increased the volume of traffic has gone up proportionally. This is illustrated in Figure 6 which is based on the data in Figure 4. In Figures 7 and 8 the Volume of International traffic and the revenue generated by various sectors (Personal Nodes, Educational Institutions, NGOs, Government, International Organizations, Businesses) for the Islamabad alone are shown on cumulative charts. These are also based on the data given in Fig 4. Apart from the volume used by Educational nodes which has remained essentially unchanged, the other categories have shown a modest linear increase with time. Similar charts need to be produced for traffic from all cities.
3. Services: What will SDNP Offer?
3.1 Current Services
SDNP offers electronic mail (email) services through its offices in Islamabad, Karachi, Lahore and Peshawar, currently with 9 staff members. Mail is exchanged nationally and internationally through dial-up connections, with the Islamabad office acting as the national hub. Currently SDNP's New York office dials the Islamabad office four times daily for exchange of mail.
As email is a relatively new technology in Pakistan new users require a considerable amount of training and support. To assist, SDNP offers customer services such as free weekly workshops, advise on purchase of modems, setting up of software in PCs and adjustment of modems. Special workshops are customized for different organizations.
SDNP acts as the backbone of newsgroups and electronic lists that are shared with other service providers free of cost. On its systems there are several active newsgroups and lists, supplemented by a selection of conferences on development issues provided by the Association of Progressive Communications (APC), which is the main source of such material globally. Several bulletin board systems (BBSs) have been set up with the assistance of SDNP and their users can access SDNP's services. To encourage networking SDNP offers discount rates to BBSs.
SDNP, Islamabad, has an extensive collection of books on wide area networking and these are consulted by persons entering the field at all levels. In addition, users can purchase copies of some books in this field from SDNP.
3.2 Future Services
As more network operators enter the field offering advanced services and full Internet connectivity, SDNP will have to offer increasingly sophisticated services to satisfy the growing expectations of the existing user base. The reliability of service offered, the emphasis on user training and the provision of information services, backed by UNDP's logo, will be SDNP's strong points.
In the foreseeable future SDNP will diversify beyond basic email services, which has been it principal activity to date. Five principal areas suggest bright possibilities for SDNP while it continues to provide access to information on sustainable development and works towards self-sustaining operations. These are:
1. Provide on-line Internet connectivity.
2. Impart training in network technologies and associated subjects.
3. Develop a consultancy service to assess and fulfill the networking needs of clients.
4. Help develop information resources related to sustainable development in-house, and as part of a consultancy for other organizations, which can be accessed electronically.
5. Set up an simulation research unit based around the two Hewlett Packard 64 bit state-of-the-art machines that SDNP is to receive as a gift from the manufacturer.
In the initial phase it is expected that the personnel-hour allocation to the 5 main activities will be: Networking (60%), Training (25%) and the remaining 15% will cover the rest.
3.2.1 Internet Connectivity
By the end of 1996, SDNP plans to offer on-line email services to it users in Islamabad, followed by similar services in the other three cities which will connect with Islamabad through Pak Telecom Corporation's (PTC) public data network (PDN). This new service would become available if:
(a) SDNP becomes a service provider to the UN system, or
(b) SDNP obtains international connection courtesy of UNDP, which plans to get bandwidth from PTC for the setting up of a private network for the UN system.
Full Internet service (textual mode) will be offered by SDNP through its connection obtained directly from PTC or a private sector re-seller, according to option (a) or from the UNDP in case option (b) is adopted.
Option (a) offers an attractive, economical, alternative for the UN system to get full Internet connectivity through SDNP. In this case payment for the international line would be made by SDNP to PTC. The UN system would support SDNP to become a service provider to not just the UN system and its present users and many new users in the development sector who would welcome full connectivity. This very important idea has been explained in some detail in the Summary section of the report.
Many current users who use SDNP's basic service may require training in the efficient use of full Internet. SDNP's training programmes can help here.
Having pioneered in the connectivity area, and now with the market filling up with commercial companies and PTC's own Internet business, it is necessary for SDNP to establish its stronghold in other related areas. Four possible area are listed below. This is where others have not yet make a significant contribution, yet a latent demand exists.
3.2.2 Training
The market for training in information technology will grow significantly according to SDNP's survey of experts, and is also borne out by its own experience. Currently, most of this work is done by small training outfits that sprang up countrywide in the late 1980s and have continued to proliferate, the latest being the PM's Computer Literacy Centres. Considerably more sophisticated is the state run Petroman which offers a range of course not limited to computers, and is currently being run without government subsidy.
Other institutions, other than university computer science departments, also offer professional courses. There are institutes such as BCCI FAST and the Pakistan Atomic Energy Commission's Computer Training Centre have long-term courses. The number of graduates coming out of these institutions is very low. The Pakistan Software Export Board (PSEB) estimates that there are only about two hundred programmer in the country who can write export-quality software while there is enough demand to absorb twenty five thousand such qualified workers.
At the high end of the market there are a few places such as the Lahore University of Management Sciences (LUMS) of Lahore and Karachi's TEC which offer short training courses. The latter provides an internationally recognized Microsoft certification for its courses and this is part of the attraction of the offering.
Internet related courses and sophisticated courses in information technologies that go beyond what is offered at the existing institutions will be provided by SDNP. The price of these courses will be competitive and geared to attract those who are discouraged from attending the very expensive courses, which are not very common any way. SDNP's courses will be run mainly at the training centres run by the Pakistan Library Association in five cities: Islamabad, Karachi, Lahore, Peshawar and Quetta. Persons belonging to the developmental sector will pay subsidized rates, or have their fees paid by a donor agency.
3.2.3 Consultancy
The expertise built up at SDNP since 1992 is currently provided as part of a consultancy service. Some of this is gratis while for more extensive involvement, a charge is levied. Recently, a paying client wanted SDNP to assess the feasibility of a plan to set up a national email service in the private sector. On the other hand, advise and assistance to the Dawn group for setting up its Internet edition was provided free of cost. In return SDNP got some publicity in the Dawn newspaper.
With the privatization of the PTC, the private sector will enter into the data communication with greater vigour. The current uncertainty springs from restrictions in place that encourage PTC's monopoly in this field. Despite these drawback some companies have staked their claim in this market so as get into this area from the start; many more will come in as the environment for investment becomes more equitable.
With the new networks there will be additional demands for setting up of value-added services such as on-line financial data, access to government regulations, national statistics, time tables for transport services, booking of tickets, etc. Much of the data is available in organizations but not easily accessible because of bureaucratic control and the lack of an easy vehicle for its dissemination. Now that Web pages on the Internet remove this difficulty it will become increasingly difficult for those who control this information to withhold it from the public. So this may be a good example of a new technology helping to open sources of information. One must however caution against too much optimism here as those who wish to exercise control through withholding information will not give up their privileged position easily.
SDNP has experience in helping the setting up of networks. It has provided inputs to the plans by the National Institute of Electronics to set up a nationwide network called PERDNET, a name in fact derived from BERDNET (Business Education, Research and Development Network, which had been earlier proposed by SDNP) with the "B" replaced by "P" for Pakistan. SDNP has also been a consultant to MegaTech, a company that wishes to provide email services nationwide.
On the software side, SDNP and Edunet (SDNP's partner organization in Lahore) have developed Web pages. Edunet's Web pages on educational material make it an outstanding resource for students and teachers who wish to go beyond the information available in commonly available textbooks. Information along with visuals can be obtained in an attractive format through searching Edunet's Web site.
In both the setting up of networks and of Web pages, SDNP is well-poised to take advantage of the developing market.
3.2.4 National Information Banks and Web Sites
This activity is intimately related to the previous three areas of interest to SDNP. While ad-hoc decision making continues to be the norm in national politics, the failure of this method is fast becoming obvious to the people, and to some politicians and bureaucrats. Change in this is inevitable. The complex issues, involving inter-sectoral linkages, that this country faces coupled with global pressures for transparency may gradually force national data to be made available in an easily understandable format, first on a "need-to-know basis" and then to the public at large.
It is often impossible to get information generated within a ministry of data collected by its own staff, let alone data that is present in another organization. Development organizations also find access to national and international data very difficult. Recently SDNP was asked to locate documents related to the important ISO 14000 standard which will become increasingly important for environment protection. Most libraries in Islamabad that were contacted had no information. Finally, some information was obtained from a UNDP official who had recently received such material and it happened to be lying on his table.
Data on the UN and it numerous agencies, as well as data generated by them (some of it already available through Internet and in printed form) cannot easily be accessed in Pakistan. Similarly, information of UN's in-country projects are been only available in paper form, so that experience gained from them has not been available to other projects here and globally, at least not very easily. Monitoring of these projects, which number in the hundreds, is also very difficult using conventional methods. Inter-agency collaboration is also therefore hindered. The same applied to other international agencies.
IUCN has grown considerably over the past few years. With a large number of projects and staff members spread all over the country, it too finds that conventional means of keeping in touch with it projects increasingly difficult. As an organization that works through it members in Pakistan and elsewhere it needs to be in touch with them frequently and to share information. There are several other organizations in Pakistan in other sectors that face similar or more acute problems: of speedy access to information, and the need for contact with personnel and data about their own organization and others.
The example of the government, UN and IUCN is merely to highlight the general problem of information access and dissemination that is now increasingly felt nationally. The presence of information technology tools such as Web pages and the promise of access to much-needed data will not of itself make decision-makers actively support such openness. Here too there is a need for an organization that could act as a catalyst for opening the doors to vitally important data. Could this be SDNP, with the active support of UNDP and IUCN?
SDNP can work with UNDP and IUCN to make their internal information first accessible readily to their staff and decision makers. This can be followed by selected parts of data of UN agencies obtained from UN's Web server in New York available through SDNP's Web server. This will require a considerable amount of filtering so that only such data that is relevant to Pakistan is made available. Other data that may be required infrequently could be accessed from UN own Web site located in New York.
In parallel, an effort should be made to put in-country project data of UN agencies and IUCN on the Web. These organizations, because of their close relationship with SDNP are most likely to agree to this. Fortunately, they also interact closely with the government, and so their own experience with this new technology could help them encourage selected ministries and departments of the state to try out these technologies. The Federal Bureau of Statistics of the government is perhaps the most likely and receptive organization which could agree to put part of their data online. Arrangements can be made to charge for access to this data where necessary so that organizations which otherwise sell their data would not be deprived of the revenue.
SDNP can help all types of organizations to set up their own Web sites or allow them to use the SDNP server to carry their information. SDNP can also arrange to have the Web pages of organizations such as the Board of Investment and the Ministry of Information "mirrored" on Web servers in the US and elsewhere where high bandwidth would allow easier access to their data. This mirroring would allow the data that is put on SDNP's server in Pakistan to be replicated on machines which allow a larger number of users to access the data. Such government organizations, that are outward looking, would feel secure with SDNP hosting such data, as it is a UNDP supported project. Such services can earn SDNP a fair amount of revenue.
SDNP can help provide these services at rates competitive with commercial providers and hopefully provide a better service. Being an organization with a major interest in training as well, it would get the staff of client organization to adapt to these new technologies using modern, efficient training methods.
To switch from paper filing systems and off line systems to on-line systems will require a fair amount of staff and officer training. SDNP can provide a full training service and charge for it. Large clients such as the UN system and IUCN could become the first clients for SDNP's training programmes.
3.2.5 Simulation Research Unit
Two SDNPs (Mexico and China) have already received high powered Hewlett Packard (HP) 64-bit machines and it is expected that Pakistan's SDNP will be in the second batch of countries to receive there machine which have the computing power of super-computers of about 5-10 years ago. To use such machines for merely networking would mean a gross under-utilization of this invaluable resource. It is therefore expected that these would be used for heavy number-crunching tasks that may be possible in a few industrial projects around the country, at the national meteorology centre, in simulations of effluent dispersal in realistic models of estuaries and in air, process control of large organization and industrial systems and also some large scale business systems and for handling large databases. Collaborative projects with universities and research institutes should lead to post-graduate training in simulation techniques.
Discussion is underway with experts in the private sector about the possible use of these machines. This will be followed by talking to the University Grants Commission to see how they may wish to use these machines to provide access to university researchers through its data network which aims to connect all universities in the near future. SDNP will not allow these machines to be used for any weapons research.
Indeed, the uses of these machines are endless, but the challenge is to use them for projects relevant to Pakistan, ie simulation of processes and development of products that could assist in sustainable development. Also one needs to ask how SDNP can use these or machines or lease time on these machines to generate revenue.
4. Markets and Competition
4.1 Competition at the Low and High End of the Market
Over the last 10 years computer "institutes" have sprung up around the country offering courses in computer packages, programming and software development. These modest institutions provide basic skills, and those who graduate can usually find jobs at the low end of the market. Having been trained to follow a "recipe" these persons find it difficult to cope with the demands of the more sophisticated organizations. Most of the government-run training institutes fall in this category.
At the top end of the market are institutions like the Lahore University of Management Sciences (LUMS) and a few others which offer expensive courses for executives and others who want sophisticated training followed by certification. A firm in Karachi now offers computer courses that are backed by a Microsoft certificate, but despite the high fees these courses are in big demand.
4.2 Target Niche for SDNP
Several organizations have budgets for training of their personnel but they cannot locate affordable institutions that go beyond recipes to provide "insights" into the subject. Also, organizations that recruit new staff find that the certification of new entrants in this field does not correspond to the advanced skills and aptitude that are needed. So there is a need for an affordable, reliable certification offered by a reputable organization that can benefit both the prospective recruit and the organization looking for new entrants. SDNP needs to target the significant market niche between the very large number of low priced institutes and the most expensive training centres and offer quality services that are appropriately priced. SDNP's main strength is in networks, an area not yet covered by other training centres. Courses in this and related subjects would attract many trainees as networking grows.
As part of the software development effort that is being spearheaded by the Pakistan Software Export Board (PSEB) there is a national effort to train a large number of software engineers at specialized centres located on university campuses. SDNP has advised the PSEB to look at more innovative schemes which would produce more programmers at lower costs. One such scheme would obviate the need for trainees to spend extended periods at these centres but be provided material through the Internet. They would then gather for intensive training a few times a year as is done at Britain's Open University. Such a scheme would help to convert many more people to software engineering and programming than is possible through a formal method of learning at the planned centres.
Several companies in the North offer courses in computer programming though the Net. Such companies can be invited to offer a franchise to SDNP, which would then offer a training programme through its network. SDNP would thereby become the foreign company's representative in Pakistan. This would produce a logical combination of SDNP's experience in networking and its plans to move into training.
5. Production: How will SDNP produce its services?
5.1 Connectivity
SDNP will continue to offer dial-up connectivity to its users for another 3-6 months. It expects connection to a international lease line allowing online email initially, followed by text-based (no graphics) full Internet access. A more desirable scheme suggested earlier would require the UN system to invest in SDNP and get Internet connectivity through it. The UN system would get cheaper services from SDNP than would be possible if it opts for a private network and obtains connectivity directly from PTC.
The provision of graphics will be reconsidered when acquiring bandwidth becomes more affordable. However, the concern of some users about the ease of access to pornographic pictures on the Net should be considered.
Internet service provision will require SDNP to get a license from the Pakistan Telecommunication Authority. This license is very expensive. For the past 2 years of so, the PTC has allowed SDNP to operate under a special license (gratis) because it was helping to popularize networking in the country, and thereby helping PTC.
In the future, SDNP's role will be more diversified and will include the development of national databases in different organizations, training, consultancy, in addition to providing connectivity. Databases developed in-house or elsewhere through SDNP's assistance will be accessible from all national and international networks and this will indirectly benefit PTC because of the use of its services for such access. UNDP should therefore request PTC to allow SDNP to continue with a gratis license until the year 2000 because of its non-profit nature.
In the short term, international connectivity may only be possible from SDNP's hub in Islamabad. Before long the Karachi node would warrant a separate international connection. As traffic builds up international lease lines from the other nodes may be justifiable. Alternatively, a larger bandwidth from a few of the cities may suffice.
A 64kbps line from PTC may be more than is needed by SDNP in the short term in Karachi if only text mode access is to be provided. It would be economical to share this capacity with other providers, as has been done by four organization in Lahore. (Current price of a 64kbps international line is $7500-10,000 per month.) Connection between the national nodes will be through PDN. For this, each SDNP node will require a lease-line connection to the PDN hub in that city, which costs about Rs 1500/km per year. Intercity connectivity within Pakistan by satellite or fibre optics (preferred) will be $5000/month.
5.2 Training
5.2.1 Training at PLA Centres
On the training front, SDNP will enter into an agreement with PLA to hold courses in their five centres. As PLA only uses these centres for less than half the year, it would be feasible to run a very full programme of courses there. A possible arrangement, which needs to be negotiated with each centre, may involve either profit sharing from SDNP's courses or by paying a charge to PLA for the use of their facilities. SDNP in association with the PLA will run specialized courses for librarians beyond what is currently offered at the PLA Centres to further improve their skills. SDNP and PLA could jointly maintain and upgrade the hardware.
In addition, SDNP will hold courses at other venues such as up-market hotels which may be suitable for attracting top executives for seminars that finish on the same day. There is significant market for this, and it is expected to grow as top decision makers try and make sense of these fast-moving technologies.
Course content and testing can either be developed by new SDNP staff or obtained through an arrangement with foreign companies which offer training franchises or by purchasing training and testing material and adapting it for local needs. Developing advanced courses in-house may not be possible if SDNP is to launch these courses in early 1997. An exploration of the various options is in progress.
5.2.2 SDNP Training Centre at Islamabad
Additional space, a hall and a large office, has become available in the Islamabad office and it is here that at least one of the 64-bit machines could be installed. (Two such machines will be given free of cost by Hewlett Packard Company to SDNP.) In the hall there is room for the installation of 7 networked computers which will be used for training on networking and other subjects. This will allow SDNP to run general courses within its existing premises almost continuously, as well as provide very specialized courses for which there is a limited audience. To economize, reconditioned 486 PCs may be ordered for this training centre from the US. As part of this shipment, other machines of similar or higher specifications will be ordered for the new staff.
6. Marketing
Being among the first to offer email services and now with about 3500 nodes (approximately 7000 users) in 4 cities, most of our new clients reach us through a recommendation of one of our users. In addition, SDNP's regular free workshops for beginners are announced in The News frequently -- this is a free announcement. In future, SDNP's services can be announced on other email services as well as on the large number of Bulletin Board Services (BBSs) that have sprung up around the country.
SDNP is also know because of the large number of articles that its staff have contributed to the national newspapers and magazines. Others have also written about the pioneering effort in networking and the good service that SDNP offers. On the diplomatic circuit, in Islamabad, the cocktail parties have helped to spread the word!
As SDNP moves into a more market-oriented mode it will have to explore other means of advertising its diversified services. These will include more newspaper articles, advertisements (which are expensive) in newspapers for special courses, inclusion in the commercial and PTC's Yellow Pages, mailings to organizations who may be interested in our services, creation of posters that could be displayed in such organizations. SDNP will continue to offer free workshop within its premises and outside.
A full time marketing officer will be recruited. In addition to having a flair for this kind of work, the new recruit will need to be well versed in the kinds of activities SDNP is involved in, and should also contribute to some of these. Quite possibly more than one person may be needed for this work.
7. Risks
7.1 Connectivity Issues
SDNP has operated as a successful project since 1992 and because of its reputation and good service continues to generate more users despite commercial competitors. With expected growth in the market for email and full Internet connectivity it is necessary that SDNP continues to offer better service than the others.
The PTC that has opened its own Internet service (through their PDN) is now making it increasingly difficult for other internet service providers to get international connectivity. If prices of PTC remain low and its restrictions continue it may become difficult for many new operators to come into the market. It may also make it difficult for SDNP to obtain an Internet connection in Karachi and Islamabad, but with strong support from UNDP's highest level this problem can be overcome. Recent regulations will prevent Pak Datacom (whose monopoly has recently been revoked) from providing connection to UNDP, and that may delay UNDP's own connection to the Internet. Hence forth all international connections will have to be obtained directly from PTC, which is currently not geared to providing this facility conveniently.
7.2 Coping with Swift Changes in Technologies and Demand
The information technology market is moving very fast and if new areas are not targeted in time by SDNP it may find itself left behind. One area which SDNP has essentially no competitor is that of industrial and environmental simulation. This seems like an ideal situation but since this is a nascent market it is very difficult to know if local organizations would be willing to support this venture. In any case it is not expected that this work will generate much revenue for a year or two. Some simple projects at the start would help to test out the local expertise and also generate some credibility for SDNP. In the event that this effort fails the new 64 bit machines could be used solely for large database management.
Training will be a major new area for SDNP. There is big demand for it in the niche area that SDNP wants to enter. This is where it has hardly any competitors presently, but this situation may not persist once others realize the potential. By continuing to offer new, appropriate programmes in training using the most relevant tools at affordable rates, SDNP can remain ahead of the pack.
7.3 Databases and Web Pages
As far as generation of Web pages are concerned there are already many businesses who have entered this area. SDNP will target the government departments, NGOs and the multi-nationals who may feel more secure having their data being handled by a UNDP supported programme. It not clear yet how much revenue this activity would generate. Reliability and the UNDP connection would also help SDNP to help develop databases for the government departments. This is not expected to bring in any funds from such departments except those that donor agencies may ear-mark for creating greater access to data.
7.4 Staffing Concerns
In the competitive information technology market, SDNP has done well to retain most its senior staff. This is mainly due to the interesting and challenging work that they perform in an informal environment, not generally available in other organizations. The global nature of the project and its link with UNDP and IUCN are also determining factors. A few of SDNP's second tier staff have gone abroad for studies in computer science, and one has joined his computer family business.
Existing senior staff are important for the success of this plan. It is, however, important to recruit new staff who can take over these senior positions in case any of the senior staffers leave.
The existing staff members do not come from a business background, and hence may find some difficulty adjusting to the new mode of operation. This can be avoided by recruitment of persons to fill the new positions with experience of working in more competitive environments. Centralized control from Islamabad needs to avoided as much as possible. This can be done by each of the other offices being headed by a Deputy Coordinator, a middle management position. This person must have a fair degree of administrative experience.
8. Finance
An increased user base will require enlargement of office space and staff and hence increase in costs. Assuming that SDNP will continue operations in 4 cities for the foreseeable future, the following rough estimates (correct hopefully to within 50%) can be a useful guide to the monthly operational cost. The personnel costs and others will only appear gradually as full Internet connectivity is provided and are also contingent on all the outlined programmes being put into action. The following assumes an independent office. Setting up of such offices will require capital expenditure for furnishings and office equipment such as photocopying machine, fax, etc.
A great deal of refinement may be needed in the following estimates.
8.1 Establishment Costs
Islamabad:
Staff Salary Rs 304,000
Programme Director
Coordinator (Administration and Business)
Coordinator (Technical)
Coordinator (Training)
Deputy Coordinator
Assistant Coordinators - Networking and Web Manager (2)
Assistant Coordinators - Training and Marketing (2)
User Support Staff (3)
Accountant
Executive Secretary/Office Administrator
Accommodation and Utilities Rs 58,000
Rental
Utilities
Guard
Cleaner
Janitor
Stationery, Postage, Photocopying
Purchase of Publication Rs 10,000
Telephone cost national Rs 10,000
Lease line connection to PDN Rs 10,000
Bandwidth from UNDP or PTC Rs ?
(dependent on whether SDNP will provide
Internet service to UNDP or if the UN system
will allow SDNP to use UN's bandwidth)
Sub Total Cost per month for Islamabad Rs 392,000
(excluding Internet connectivity cost)
Karachi:
Staff Rs 72,000
Deputy Coordinator
Assistant Coordinators (2)
User Support Staff (2)
Accountant
Executive Secretary/Office Administrator
Accommodation and Utilities Rs 48,000
Rental
Utilities
Guard
Cleaner
Janitor
Stationery, Postage, Photocopying
Purchase of Publication Rs 5,000
Telephone cost national Rs 10,000
Bandwidth from PTC Rs 120,000
(part of 64kbps, obtained in partnership
with resellers)
Lease line to PDN Rs 10,000
Sub Total Cost per month for Karachi Rs 265,000
Cost for Lahore and Peshawar will be roughly the same as for Karachi minus the Internet connection cost (Rs 120,000).
Sub Total Cost per month for Lahore Rs 145,000
Sub Total Cost per month for Peshawar Rs 145,000
Travel (National and International) Rs ?
(expected to be not more than Rs 50,000/mo)
___________
Total Establishment Cost Rs 947,000
Note: Four new posts are added in this proposal which have not been described in previous documents (a) Coordinators (Administration and Business) & (Training) (b) Deputy Coordinator and (c) User Support Staff.
(a) The current Coordinator (Technical) is principally concerned with technical aspects of the project, including training. Another person of the same rank is required to handle the administrative and business aspects of the programme. Because of a large training programme a senior Coordinator (Training) position is needed.
(b) A Deputy Coordinator is already on the staff in Islamabad and is a senior person who can take over or share most of the responsibilities of the Coordinator (Technical). In cities other than Islamabad, the Deputy Coordinator will be responsible for the overall operation of that city's operations.
(c) SDNP has recently had an Intern who worked as a User Support Staff. Since there is now a greater pressure from users for support, and this is expected to increase, these junior level persons will handle this task.
The profile of each employee will need to be re-evaluated depending on the direction adopted by SDNP.
The two average income figures given below are computed from Fig 1.
Average income per month (Jan 1995 - Aug 1996) Rs 290,384
(this figure is much lower than the next because
for several months at in the early part of 1995
three of the nodes were non-functional or not
generating any revenue)
Average income per month (Jan 1996 - Aug 1996) Rs 475,636
Salaries Rs 180,000
Operational Expenses Rs 140,000
Total Expenditure per month Rs 320,000
Saving per month Rs 106,387
Courses (Expenditure and Income).
(Net income from courses will be added to the
savings per month given in the last column above)
Specialized 5 hour courses on a single day at PLA
assuming 18 attendees paying Rs 1000 each.
Fees Rs 18,000
Tutors (2) Rs 3,000
Rental for halls Rs 2,000
Refreshment Rs 1,000
Handouts and Misc Rs 2,000
_________
Income per course Rs 10,000
Assume these are held in 3 PLA Centres twice monthly
Net income from these course per month Rs 60,000
Regular week-long course on information technology
and office automation at Islamabad and two other
centres. Calculate initially for Islamabad.
2 hours daily (10 hours total/week). Assume 18 students.
Fees Rs 18,000
Tutor Rs 3,000
Rental Rs 4,000
Handouts Rs 1,000
_________
Income per week Rs 10,000
Net income per month from one centre Rs 40,000
Assume this course to run in 3 centres.
Impact">Net income from these course per month Rs 120,000
Estimated income from daily in-house courses
delivered at SDNP's own small training centre.
Assume 120 new accounts/month and each paying
Rs 500 for hands-on training Rs 60,000
Specialized Internet training offered through
network on various subjects. Assume 100 attendees
who pay Rs 500 each month and that expense per
student is Rs 50. Net income Rs 450/student. Rs 45,000
___________
Total income per month from courses Rs 285,000
Income from Consultancy, Database and Web pages
development Rs ?
Projected income from providing full Internet
connectivity through a single 64 kbps line assuming
3000 users using on-line services and using an
average of 6 hours per month at Rs 50 per hour Rs 900,000
Income from off-line email service Rs 600,000
Total monthly income from course and connectivity
(285,000 + 900,000 + 600,000 ) Rs 1,185,000
Estimated Establishment Cost/month computed earlier Rs 947,000
Projected Savings/month (1,185,000 - 947,000) Rs 238,000
Projected Annual Savings Rs 2,856,000
Note that costs such as insurance, and Internet connectivity cost, etc are not included and as already emphasized the above figures are merely to give very rough estimates.
Equipment Capital Costs
Islamabad
Service Equipment:
Terminal Server 1 Rs 120,000
Web Server 1 Rs 140,000
Backup Server 1 Rs 140,000
modems 50 Rs 400,000
telephone lines 50 Rs 200,000
____________
Rs 1000,000
Training Equipment:
PCs (preferably 486) 10 Rs 400,000
LAN server (Pentium) 1 Rs 120,000
Data Show 1 Rs 160,000
Overhead Projector 1 Rs 20,000
Television & VCP 1 Rs 40,000
___________
Rs 740,000
Karachi
Service Equipment:
Router 1 Rs 140,000
Terminal Server 1 Rs 120,000
Web Server 1 Rs 140,000
Backup Server 1 Rs 140,000
modems 50 Rs 400,000
telephone lines 50 Rs 200,000
___________
Rs 1140,000
Lahore
Modems 10 Rs 80,000
Lines 10 Rs 40,000
___________
Rs 120,000
Peshawar
Modems 5 Rs 40,000
Lines 5 Rs 20,000
___________
Rs 60,000
Total equipment capital cost Rs 3,060,000
Setting up Offices (Capital Cost)
if independent offices are set up
Islamabad (3-4 rooms with 14 persons,
a training room, and reception area) Rs 300,000
Karachi (2-3 rooms with 7 persons) Rs 200,000
Lahore Rs 200,000
Peshawar Rs 200,000
In the first part of 1997 SDNP will continue to
operate from its current premises except perhaps in
Karachi where there may be a shortage of space.
Office Set up Cost Rs 900,000
Total Capital Cost for Equipment and Office Set Up Rs 3,960,000
Annual Savings (computed earlier) Rs 2,856,000
It is interesting to note that most of the capital cost could be recovered in less than two years. This optimistic scenario, however, needs further investigation.
There are currently some anomalies in the figures that have been received from our different nodes and these are being re-checked. The overall picture is, however, unlikely to change significantly after the corrections.
9. Milestones
Between October 1996 and the end of the year the following could be done subject to the approval of the plan outlined above:
Run a day-long workshop on Microsoft's presentation package Powerpoint at the PLA Center in Islamabad. This will be SDNP's first experience of organizing a commercially run workshop and will give it the experience of advertising and organizing such an event. This could be held by the end of October if not earlier.
Based on the success of this workshop a similar one can be held in Lahore and Peshawar. Quetta should be considered early next year.
A workshop for executives in Karachi on the Internet at the UGC Regional Centre can be held in November. The following day another workshop for a different audience on the use of Power Point which will be conducted at the PLA Computer Training Centre.
The two 64-bit machines are expected to arrive during this period, and it would be necessary to test both and instal one in the current office. This could be connected to a new 7 PC teaching centre that SDNP will be setting up in the hall adjacent to the two rooms currently occupied.
The above plan maybe somewhat over-ambitious as it depends on a number of uncontrollable factor. Achievement of half of these objectives should be regarded as quite satisfactory.
During 1997 an effort will be made to get the simulation unit started. In case industrial or business problems backed with financial support do not become available, these machines may be made available as large database engines and/or to the academic sector for blue-sky research. A great deal of effort will go into locating clients and suitable users who can get useful results out of such machines.
The training programme will continue and try to either develop training material in-house, purchase externally produced aids or enter into a franchise agreement with a foreign company that can offer turn-key training solutions. The turn-key approach may be the swiftest way of launching the training programme, and with time SDNP can develop its own material.
Full Internet connectivity (text mode) for users in Islamabad should be available and online email for users in other cities. As soon as PTC provides the necessary bandwidth in Karachi, full Internet will be provided there. Lahore and Peshawar may have to manage with on-line email unless lowered PTC rates allows SDNP to get additional bandwidth for these cities.
During 1998, areas such as software development particularly for communications could be explored. As an off-shoot of the training programme, multi-media tools could be used to develop courses for use within SDNP's centres and perhaps for the export market. Along with this, it is expected that the core activities started earlier will be enlarged and improved.
Given that most of the above is tentative it would be unreasonable to project beyond end of 1998.
Appendix 1
Activities of SDNP since Oct 1995
o Ran a workshop on the Internet through electronic mail for about 300 nodes throughout Pakistan. This lasted for about 5 weeks beginning from Sept 20, 1995.
o Invited lecture by Coordinator on "The Information Highway: resources available and issues involved" as part of the course on Information Technology for the Foreign Service officers (delivered on Oct. 16, 1995).
o Coordinator participated as a panelist from Islamabad in a discussion conducted through the Worldnet satellite TV on "Global Information Infrastructure" on Nov 6, 1995. Held at the US Centre Islamabad, the Worldnet programme was followed by the panelists fielding questions from the local audience.
o Conducted a workshop at the US Centre as a sequel to the email workshop on the Internet. This included questions and answers about the material of the workshop, a video show on the Internet and a panel discussion on "Internet in Pakistan".
o Coordinator participated as a discussant in the special session on "Developing User Services" at the one day conference on "Human Resources Development in Telecommunications" held in Islamabad on Dec 17, 1995.
o Coordinator gave a talk on "Internet: A new means of communications" to the participants of Buraq Planetary Society's space camp in Islamabad on Dec 27, 1995.
o Coordinator gave a lecture at the Centre for Nuclear Studies, Nilore, entitled, "Information Super Highway: Hype and Reality" on Jan 23, 1996.
o Conducted a two day workshop on Information Technology for associates of the LEAD (Leadership on Environment and Development) 4th Cohort Training Programme at LUMS (Lahore University of Management Sciences), May 1314, 1996.
o Programme Director was appointed to the Prime Minister's High Powered Committee to Review the State of Science and Technology in the country. May 1996.
o Programme Director attended the SDNP Coordinators' Conference in Mexico City, May, 1996.
o Programme Director attended the Developing Countries' Workshop and INET 96 Conference in Montreal, June, 1996.
o Coordinator gave an invited talk on "Networking through E-mail" under the auspices of IEEE, Islamabad Chapter on May 19, 1996.
o Coordinated the two day Information Technology session for the LEAD Pakistan Training Programme for their 5th Cohort of associates at LUMS, Lahore, June 1011, 1996.
o Gave a an invited talk, "Internet: New Developments and Future Prospects" at the Department of Computer Sciences, Quaid-e-Azam University, Islamabad on June 17, 1996.
o Conducted one day workshops on "Email and Internet for Librarians" under the auspices of the Netherlands Library Development Programme. These workshops were held in Islamabad, Lahore and Karachi on June 26, and in Peshawar on June 27.
o Conducted two day workshops on "Email and Internet for Librarians in Pakistan" for the Pakistan Library Association sponsored by the Netherlands Library Development Programme. These workshops were held on August 2627 in Peshawar and August 2829 in Islamabad and Karachi.
Quotable Quotes
This report began with the powerful plea by Goethe urging us to begin the voyage into the unknown. It is therefore appropriate to conclude with some wise words from a few modern pioneers of global networking-- persons who have seen the other shore and have returned to tell us that the journey is worth taking.
The following quotations were chosen from the writings of a few leaders of networking who responded to SDNP's request to send their articles. These illustrate some of SDNP's guiding principles more succinctly than is possible through a formal report. While browsing through these pithy sayings readers may discover new ideas that could further the goals of global networking for sustainable development. This brief anthology may, in time, be expanded.
S. Ramani (India)
1. The ships and guns decided the course of the last 500 years. Information Technology (IT) will decide the course of the next 500 years.
2. Progress is in IT, particularly in relation to telecom, in developing countries is systematically sabotaged. Not by forces from outside but by the "status quoists" who oppose all regulatory progress. Their contribution is to bind our hands and feet as the race is about to begin.
3. Mahatma Gandhi said to the British: "God gave us salt. Why should we pay you tax on it?"
If he were alive today, he could have said "God gave us the electromagnetic spectrum. Who are you to prevent us from using it?" This is obviously not to be said to the British!
The following were provided by Ramani but are not his:
1. The choice is between networking and "not working".
2. Investing in network infrastructure now is as important as investments in railways was in the nineteenth century.
Larry Press (USA)
1. The good news is that the Internet has grown like a weed, and many welcome it as a tool for productivity and enlightenment; the bad news is that it is almost unknown in developing nations.
2. Communication pays. In recent telecommunication investments in developing nations, the World Bank expects rates of return between 13 and 20 percent, averaging about 20 percent. In addition to return on investment, they estimate 1530 percent return to the general economy. They also find "very large economic returns" from the telecommunications components in other sectors such as railways, power, tourism, banking, and rural development.
3. Networks enable international communication with suppliers, customers, and other stakeholders. Much of the economic success of the US is attributable to our lead in establishing a mass, tarifffree market supported by good communication and transportation. Networks can help open mass, global markets to developing nations.
4. Universities and research in developing nations will be strengthened, and the "brain drain" diminished as the Net reduces pressure on professionals to move abroad.
5. One might expect networks to encourage democracy by providing people living under dictatorship with outside information and ideas, and by enabling them to share ideas and coordinate political activity within their nations.
6. Perhaps breadth of choice is at the heart of quality of life. A simpler, rural life may be desirable if it is freely chosen, rather than imposed by necessity. Choice implies awareness, and communication technology expands horizons, making us aware of vocational, political, and value issues and alternatives.
7. A government frozen by the dictator's dilemma or a bureaucracy seeking to milk telecommunication as a revenue source, will stop networking in its tracks. The government should also plan networks with broad national policy (for instance, regarding urbanization) in mind.
George Sadowsky (USA)
1. The Internet will in retrospect be seen as one of the fundamental innovations that has changed the way in which we teach and learn.
2. [The spread of networking in developing countries] involves identifying communities of potential users, working with and training local engineers to provide training and services, and establishing permanent network connections. When users are well-served, the network well-engineered, and costs recouped through initial subsidies and reasonable charges for use, we have found that networks will flourish.
3. The correlation between information, communication and economic growth is well-known, making the usefulness of networks nearly self-evident. Electronic networking is a powerful, rapid, and inexpensive way to communicate and to exchange information. When networks are available, previously unanticipated collaboration seems to come into being almost spontaneously. The underlying cause seems to involve a latent demand that remains latent as long as joint work requires either the disruption of waiting for the post, the continual retyping of texts transmitted by post or fax, or the need to secure large budgets and approvals for extensive international travel.
4. ... the free flow of information and movement toward democratization cannot be down-played. Access to information affects political democratization efforts at the global level as well as within nations.
5. ... given the growing commercialization of the Internet, the potential for the creation of local businesses is non-negligible: business associated with computer-based communication, as well as other sorts, can benefit from the improved communications potential that networking offers. The timeliness and functionality of network-based communications are strong incentives for organizations needing international communications to join the network.
6. ... many outside agencies (e.g., United Nations, NGO's, donor agencies, etc.) have attempted to build networks in Africa, often driven to such efforts by the absence of indigenous networks. The difficulty with many of these networks is that they are private and do not contribute to public networking, whereas the placement of network hosts in local institutions (e.g., universities) generally leads to the creation of a more open network.
7. A Model for Networking Development: ...include technology transfer, training, adoption of self-funding models, continued interchange with the technology developers, and the development of network sites within universities, NGO's, statistical and research ministries, and other public and private agencies committed to open, nationwide, networking.
| Project Summary Status | Africa | Arab States | Asia | Europe/CIS | LA/Caribbean |