Afghanistan Policy Page
A one-page brief on a major issue concerning U.S. policy and engagement in Afghanistan.
17 March 2010
Telecommunications in
Afghanistan
Take Aways
The
telecoms sector in Afghanistan has been one of the most dynamic fields of
growth since 2002, impacting both Afghan society and the economy.
Development
of strong telecoms networks in Afghanistan is promoting an enabling environment
for private sector development as a driver for growth and employment that can
help to pull the country out of poverty.
Despite the exponential growth of telecoms since 2002, the ongoing importance of face-to-face / word of mouth communications and hand-delivered messages in Afghanistan should not be forgotten.
Key Issues and
Challenges
Language and Literacy Literacy rates in Afghanistan are
very low (28%), preventing even basic use of SMS messages or Internet. The
diversity of languages (Dari, Pashto, Uzbek) in Afghanistan
creates issues for universal telecoms services. The majority of Internet
content is in European languages & Chinese a barrier to entry for most
Afghans.
Lack of Infrastructure Large parts of the country still
suffer from lack of access to basic utilities such as electricity, severely
inhibiting telecoms coverage. The four major operators are investing over
$400million a year on building infrastructure to help expand their networks. A
proposed 3000km fiber-optic backbone connecting major urban hubs would reduce
Internet costs significantly but be vulnerable to failure or sabotage.
Regulation Afghanistan still lacks an experienced
independent regulatory telecoms body that can provide reliable legal
arbitration. The governments unpredictable tax policies and sudden tax hikes
have created problems for telecoms providers.
Security The Taliban have issued direct threats to
telecoms providers and attacked mobile phone towers throughout the country.
Taliban rationale is that international forces use mobile phone signals to
track down insurgents, and they accuse mobile operators of colluding with
foreign troops.
Key Facts
Situation In 2002:
Over 99
percent of the population had no access to telecom services.
Only
12,000 telephones in Kabul.
Little or
no access to the Internet.
Cost of
mobile handset: $400
Cost of
mobile call: $2/min
Situation Today (estimate figures):
Over 12
million mobile subscribers
50,000
fixed landlines
500,000
Internet Users
$1.2billion
of Foreign Direct Investment in the telecoms sector
Cost of
mobile handset: less than $10
Cost of
mobile call: $0.10/min
Four Major Telecom Network Providers:
Afghan
Wireless (part govt-owned)
Roshan (51% owned by the Agha
Khan Foundation)
Etisalat (UAE-based)
MTN
(Lebanese)
Contribution to Afghan Government Revenue: Roshans tax bill alone accounted for approx 7% of total
government revenue last year.
Opportunities
Mobile
Phone Banking Pilot programs to pay police officer salaries via SMS messages
to their phones are helping to combat fraud and corruption.
Employment
The telecoms sector directly employs thousands of Afghans, and employs
further 10,000s of people in indirect service provision, such as running kiosks
and distributing phone cards.
Education
e-learning courses can provide distance learning for students in remote
locations. The private telecoms sector is providing training to thousands of
its current and prospective employees.
Commerce
Building frameworks for e-commerce, making payments via SMS messages, and
access to international markets. Services providing key
agricultural information to farmers such as market prices of crops and weather
data.
Health
Services - Can be provided to remote areas virtually by specialists at a
distance using e-medicine techniques. ICT systems can make the provision of
health services less bureaucratic, simpler to obtain and more universal.
Government
Capacity Improved public access to administrative and social services. Improved communications between Kabul and the provinces/ local
districts for coordination between public agencies, ministries, etc.
Possible Questions
What can
international agencies do to support the telecoms sector in Afghanistan?
How can
government operations be successfully aligned to benefit from private sector
investment and activities in the telecoms sector?
Is the
Afghan government receiving support to build the telecom regulatory system?
In the News
During
his visit to Afghanistan last week, Iranian President Ahmadinejad
inaugurated the Afghanistan Telecommunication Training Center, paid for by the
Iranian government at a cost of more than $6 million.
The One Laptop per Child Foundation (OLPC), a nonprofit organization whose mission is to help provide every child in the world access to a modern education, recently delivered 774 XO laptop computers to students and teachers in Kandahar. To date, the Foundation has distributed more than 3,700 laptops in Afghanistan.
Further Reading
Afghan Ministry of Communications & IT
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