Dear Broto, We Have Heard from Our Colleagues in Indonesia That Your Ministry Is in The

Dear Broto, we have heard from our colleagues in Indonesia that your Ministry is in the process of collecting public feedback on the proposed form of a new USO policy. As we have been working with our partners in many countries on this issue and have witnessed great success, we would like to take this opportunity to share some of the international best practices in utilizing USO funding for Internet services through which multiple applications services can be delivered to benefit rural populations.

Vietnam

The Government of Vietnam has defined a Universal Access policy which is comprehensive in its coverage of both voice and data services. All operators are required to provide Universal Service, and the definition of access includes fixed line private residential services, fixed line public payphone services, directory and emergency services. However the policy also specifically includes the provision of telecentres and rural public access to the internet together with rural access to voice services.

The Government of Vietnam together with the operators have also been engaged in a number of pilots in rural areas, including a WiMax based pilot , phase 1 in Lao Cai and phase 2 in Sapa, where the network is used to provide rural access to the internet, and voice services using VOIP. They have worked with a number of NGO’s and independent consultants to introduce these innovative services and believe they deliver real value to the communities they serve.

Pakistan

The Government of Pakistan has recently introduced a series of initiatives aimed at boosting employment together with public access to services. The government has set aside funding from their Universal Service Fund and citizens are able to obtain a low cost loan which allows them to set up a telecentre to provide access to the internet together with the associated services, aimed principally at rural populations. The scheme is supported by the National Bank of Pakistan. It provides financing for a computer, internet connection and printer to establish a telecentre in rented or owned premises.

Intel worked closely with the Government of Pakistan in setting up this facility under the President’s Rozgar Scheme. The goals of the programme are to use USF to drive broadband penetration, improve IT literacy and increase employment principally in rural areas among young people. In this case also there are a number of pilots where WiMax is being used to supply the connectivity for the telecentres.

We believe that as mobile telephony penetration increases Universal Service Funds can be effectively employed to build out access to the internet and hence facilitate for example sharing of best practice in agriculture, providing access to key government services via the internet and a plethora of other benefits including real aid for rural economic development follow.

Should you need more information on these cases or any others we would be very happy to assist you.

Thank you for your consideration

Best Regards

Yours Sincerely

Andrew Allison

Regional Manager, World Ahead Telecoms Programmes, Asia Pacfic

Intel Corporation