93495 Papua New Guinea Rural Communications Project Improving access to telecommunications services in rural and remote communities. Provide telecommunications Background access to nearly 500,000 Papua More than 80 percent of Papua New Guinea’s population lives in rural areas. Most of these people depend New Guineans. on subsistence activities such as smallholder farming and fishing as well as alluvial mining and betel nut sales for their livelihoods . Facilitate public internet access. One of the main barriers to shared growth and development in rural areas is poor quality and lack of Contribute to economic growth, access to information and communication technologies (ICT). In fact, access levels are some of the lowest social development, and local in the world. Service delivery is extremely low due to high prices and limited investment in access business development. networks. In mid-2007, total tele-density was just four percent countrywide and zero percent in the majority of rural areas. Private operators and aggressive competition in the mobile sector has resulted in increased coverage and access. Despite this, access is still limited in many parts of the country. About the Project The objective of the Rural Communications Project is to facilitate improved access to affordable and reliable telecommunications in rural and remote areas of Papua New Guinea. The project will provide telecommunications access to nearly 500,000 rural Papua New Guineans and facilitate broadband internet access in rural district centres that currently do not have any form of internet services. The project is expected to contribute to many social and economic development objectives in the country. Location: The project will Local businesses will experience lower communications costs and improved access to information about provide telecommunications markets and prices; potential for new businesses, tourism, and services such as internet cafes will be access in four regions of Papua created; and rural communities will gain easier access to information on health and education services, job New Guinea. information, and closer contact with distant family members. Women are also expected to benefit from improved access to communications such as income-generating opportunities and family contacts. The project will provide technical assistance to the Department of Communication and Information (DCI) to strengthen ICT policy development and to the National Information & Communications Technology Approval Date: 22 July 2010 Authority (NICTA) to address emerging regulatory challenges and to strengthen the competitiveness of the telecommunications market. It will help establish a universal access and service (UAS) regime and Closing Date: 31 August 2017 associated fund to develop regulations and operating procedures. Total Project Cost: US$15 million Telecommunications services are expected to benefit up to 500,000 currently unserved people across all Donors: World Bank four regions of Papua New Guinea. This one-time subsidy, combined with existing initiatives by mobile (International Development operators, is expected to boost total population coverage from about 20 percent in 2009 to around 93 Association)—US$15 million percent by the end of 2014. A demonstration project for internet service will also provide a one-time capital subsidy to prospective bidders to increase broadband access and establish public internet access Implementing Agency: Papua points in rural district centres. New Guinea National ICT Authority (NICTA) Contact: World Bank Task Team Leader www.worldbank.org/pg Natasha Beschorner, Senior ICT Policy Specialist , nbeschorner@worldbank.org