Public-Private Partnerships and Financing ICT Developments

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Session VIII Public-Private Partnerships and
Financing ICT Developments
Paul Ulrich Independent ConsultantHong Kong
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Topics of Presentation

• Public-Private Partnerships
• Categories
• Success factors
• Funding ICT
• For innovation, via incubators (growth)
• For extending rural access (equity)

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Classification of Public and Private Actors
Public
Private
Government
SOEs
Business
Listed Firms
CSOs
GONGOs
Academia
Corporate Research
Donors
Foundations
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The Diffusion of Governance in the Twenty-First
Century
Source Selian, Audrey. ICTs in Support of Human
Rights, Democracy and Good Governance,
International Telecommunications Union, August
2002.
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Mapping International ICT Decision-Making Key
Players
Source Selian (2002).
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Mapping International ICT Decision-Making
Non-Governmental Actors
Source Selian (2002).
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Variance in Number and Degree of Integration of
Alliances by Industry
Intensity (number) of alliances
high
Biotech
Software, Internet-related
Real estate
Telecom Services
Oil exploration
Semiconductors
Media
Pharma
Automotive
Chemicals
Mining
Aerospace
Banking
Telecom equipment
Low priority
medium priority
Utilities
high priority
Consumer products
low
Insurance
low
high
Degree of alliance integration
Source Toffler Associates (1998)
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Factors Contributing to Success of Partnership
Partner Selection
75
Essential
Senior Management Commitment
73
Clearly Understood Roles
49
Communications Between Partners
48
Clearly Defined Objectives
39
Relationship Building
36
Important
Thorough Planning
30
Close Senior Management Ties
27
Frequent Performance Feedback
16
Day to Day Attention
16
Worthwhile
Sharing Risks Resources
15
14
Clear Payback Time Line
Alignment of Culture
11
Previous Alliance Experience
6
2
Information System Integration
80
60
40
20
0
80
60
40
20
0
of CEO Responses
Source Data Quest, 1992 Survey of 455 CEOs at
Electronics Companies
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Negotiating Partnerships Finding Common Ground
Public Entity
PrivateEntity
?

Partnership

Interests Ranked by Priority
?
?
1st
1st
1st
?
?
2nd
2nd
2nd
3rd
3rd
3rd
4th
4th
?
4th
?
5th
5th
5th
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Incubators, High-Tech Zones,and Industrial Parks

• Tax policies for software firms
• SBIR findings
• Success factors to high-tech start-ups
• Typical founder ages
• of founders
• Sponsors angels, VCs, big firms
• Physical proximity in incubators
• Affiliation with universities
• Recent phenomenon in Asia

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Foreign Direct Investment (FDI)

• Leading source/recipient of FDI in 02
• China, U.S., or Luxembourg?
• Shift from ASEAN to China
• How to attract FDI
• Domestic market
• Incentives
• A small-country example
• Educated workforce
• English language

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The Market for Universal Access
Market Efficiency Gap
Access Gap
Current Expansion Plans
Poverty
Politically Socially Desirable
Access Today
Existing Private Line Penetration
Commercially Feasible
Geographic Isolation
Source Dymond (2002)
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Retailing Innovations
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Market Niches for Different Technologies
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Regulatory and Market Structure of Selected Asian
Countries (2002)
Policy and Regulation
Market Structure
Asia
Pro-Competitive Policy
New Telecom Law
Competition in Fixed Services
Independent Regulator
Cellular Competition
Privatized Incumbent
Bangladesh
?
?
?
?
?
?
?
China
India
?
?
?
?
?
?
Indonesia
Malaysia
?
?
?
?
?
?
?
?
?
?
?
Nepal
Philippines
Sri Lanka
?
?
?
?
?
?
Thailand
?
?
?
?
?
Source Navas-Sabater (2002)
Except for international long distance
Only local competition
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Approach to Universal Service (US) or Universal
Access (UA) in Asia (2002)
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Types of Public-Private Partnerships from a
Public Perspective

• Financial Investment
• Domestic, FDI
• Portfolio investment
• Equity (e.g. IFC)
• Loans, e.g. govt/corp bonds and loan guarantees
• Mix subordinated debentures
• Grants or grant component
• Concessionary rates on infrastructure, tax
  holidays
• Exclusive territorial or service franchises
• Strategic Alliance
• Contractual
• BOT, BTO, BOO
• Marketing
• e.g. cell phones sold through post offices
• Sharing of revenue, royalty and licensing fees

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Summary

• Public-Private Partnerships Funding
• Creative design
• Conducive policies
• Constant re-assessment

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Thank YouPaul UlrichIndependent
ConsultantHong KongPaul_Ulrich_at_aya.yale.edu