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Sharing Model to Disrupt The Last Mile

For the majority of Africans Internet access is either unaffordable or unavailable. The Internet has a huge impact on education, social inclusion, and commerce. Providing access to the unconnected communities presents a massive social and commercial opportunity.

Africa is 65% rural. Of the 35% urban population, many live in informal settlements. The population and/or revenue density in those areas simply doesn’t justify the cost of investment in fiber and 4G networks.

Poa Internet is disrupting this market by using low-cost WiFi based technologies to build wireless networks in marginalized communities. To empower local entrepreneurs to participate in the digital economy, we are introducing a new model that will enable a small business to become a micro Internet Service provider. This localized delivery model will drive commercial viability, reduce costs and accelerate scale. It will also create local commercial activity, employment and the development of technical skills in these communities.

Define three specific objectives that you would like to achieve with your proposal.

Our end goal is to provide internet in every African home
This can be achieved through:
• Ubiquitous access
• Adequate digital education

The short-term goals to achieve this are:
1. Deliver affordable high-volume, high-speed internet to marginalized communities

2. Provide tools to monetize the internet connection for the local entrepreneur
3. Turn them into community digital educators accelerate learning

What problems (particularly in value chain competitiveness and global disruption) are your community’s stakeholders facing due to the Covid-19 pandemic?

Besides disposable income, knowledge of the possibilities of the internet is limited, especially in a rural setting. People may think that Facebook and WhatsApp IS the internet, especially if you live in an area where 3G/4G has not yet been deployed

Availability of internet enabled devices such as smartphones, laptops. Although they have come down in price since inception, still not everyone has an internet enabled device.

People are industrious and resourceful, but in some cases lack the tools and knowledge to fully utilize the potential of the opportunities that high speed bandwidth can give them.

What minimum viable solution(s) are you proposing to address the challenge(s) in your community?

The sharing model is a proposition that comes on top of our current home proposition. We will provide the digital entrepreneur with an internet connection to his premise that has a higher speed/bandwidth. This internet connection will be delivered through a wireless point-to-multi-point connection via an antenna that we will install on the rooftop.

The sharing model proposition will have:

• High-speed, low cost broadband for your business or home

• Install one or more high powered WiFi hotspots to share you Internet connection with your customers, neighbors and tenants

• Generate revenues through

• The sale of Internet access

• Providing digitally enabled services

• Selling smartphones

• Mobile phone charging

• App and cloud-based platform to easily manage your hotspots, sell access and manage the service

• Micro Financing of equipment available

• Free online training on how to set up, operate and manage your hotspots.

• Make your business more attractive to your customers and generate footfall. Create adjunct revenue opportunities e.g. selling sodas to customers using Internet

• Professional installation of equipment at your premises within 48 hours

• Training and certification as Poa hotspot operator

• 2nd line support for you and your customers

• Poa marketing materials for display in and around your business

Share your story (your narrative)

The problem with the Internet in Africa is that it is either not available or it is unaffordable, it is underutilized and slow. This translates into the following problems for people:

• Customer technology/equipment is costly for the individual

• Prohibitive costing creates scarcity

• Digital skills potential not yet unlocked

The latter 2 reinforce each other, either positively or negatively.

Poa’s mission is to fix this: Internet in every African home. This in turn will help achieve its vision to drive digital inclusion for a more equitable world.

The intervention, sometimes called ‘strategy’ or ‘activity’ is to introduce and proactively facilitate a ‘sharing model’.

We believe that by introducing the sharing model, more people will start progressing on the internet adoption curve, whilst creating a resilient community by offering diversified revenue streams to micro-entrepreneurs, the backbone of African society.

This sharing model has different elements to it, so these are sub-interventions:

• High-speed, low cost broadband for your business

• Digital skills training

• Free digital educational resources

The above demonstrates that the introduction of the sharing model will have a couple of outputs:

• It will allow for innovative ‘last inch’ solutions; both sharer as well as neighbour will be assisted in finding the most effective way to get internet access to the customer

• Maximized value of the Internet; sharers will have diversified revenue streams generated from the Internet. Consumers will have more access to Internet at a price point that is within reach for everyone;

• Access to digital education resources; by offering 3rd party content, digital education training as well as 3rd party services, we create an ecosystem that will benefit both sharer as well as customer.

These outputs in turn will have a couple of ground-breaking, short-term outcomes:

• Affordable high-volume, high-speed internet

• Community digital educators accelerate learning

By introducing this intervention, it will drive the medium-term outcomes that are required to achieve the long-term outcome of Internet in every African home:

• Ubiquitous access

• Adequate digital education

With your support, we can achieve our vision to drive digital inclusion for a more equitable world.
Thank you very much!

Please provide any additional relevant information that you would like to share.


Winning the Digital Change-Maker Challenge will help us in running a trial for a different business model, the sharing model. We will do this by building this vital infrastructure which is missing in the rural areas. Empowering the rural communities will empower more people since they support a larger ecosystem. According to the 2019 Kenyan census, rural households in Kenya support an average of 5 members while urban households support 3 household members.

We believe that building this infrastructure in the rural areas will give the rural communities access to the digital entrepreneurial platform and will go a long way in bridging the digital divide gap while creating good jobs and inclusive entrepreneurship.

Winning the Digital Change-Maker Challenge will give us inroads into advisors that can help with access to additional grant funding, further deepening the social impact of our solutions, forge partnerships and give additional advice on sustainability, inclusion, etc.

Public (21)
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Htet Zan Linn Jul 30, 2020

It is a noble idea. My technical knowledge on this area is very basic but I am wondering how you will protect the project from big telco coming and putting up a tower washing away your months of hard work? For them it should not be that difficult right? It is just that, there so much business in Urban areas so they have left out the rural places. Once the demand in urban area is saturated wouldn't they come up for smaller rural places for business. Just curious!

DJ Koeman Jul 30, 2020

Great question Htet! And yes, in theory you are absolutely right. However in reality, Mobile Network Operators (MNOs) will do a business case for where they put up their tower. Setting up on eof those is quite a capital investment and requires therefore a certain minimum population or revenue density. They tend to go for the low hanging fruit (more/easier revenue) first, as you rightly mentioned. It is the same reason why Internet Service Providers (ISPs) tend to focus on mid/high income neighborhoods in urban settings, as well as business districts. Good point! First mover advantage however allows for getting sizable market share, which in turn will drive economies of scale, thus cost leadership. Which creates competitive advantage and reduces propensity to churn.

EUNICE KAJALA Jul 30, 2020

Hi DJ Koeman,

It is a good idea. One area of your revenue collection is by selling internet access to your targeted audience: will your target audience in rural Kenya, able to afford? Do they really need such a high speed internet access?

DJ Koeman Jul 30, 2020

Awesome question Eunice. It is a concern that has been expressed before. Providing high speed internet by itself will indeed probably not do the trick, hence our solution comes with digital skills training (train-the-trainer) and free digital content; financial literacy, digital literacy, digital education, etc. This way, people will e able to advance on the internet adoption curve (and see the need/benefits of high speed internet), the sharers will have additional revenue streams, micro finance institutions (MFIs) will be able to provide micro loans more efficiently, which in turn will help the local community to increase productivity and improve their livelihood

Thomas Mueller Jul 30, 2020

Great Idea DJ, there are a lot of different systems, applications and solutions available in Africa already from various entrepreneurs or supported by global projects. How is yours different?

We have been involved with https://www.lut.fi/web/en/news/-/asset_publis...oping-countries in Namibia.

The core challenge we figured is a) the backhaul connectivity at an affordable rate. In many cases the only current solution is VSAT or you need to feed 3G or LTE from far with special Antenna and Enquipment which we all have tested. Maybe Specelink will give a solution for this in the future. And b) theft, we had a lot of chalenges with "decentralized" solar panels, antennas etc.

DJ Koeman Jul 30, 2020

All very valid points Thomas, thank you for that! We are currently in talks with a satellite provider that can offer back-haul at quite affordable rates. Our point to point solution can actually reach quite a distance, so that can be used as an alternative (but not for the super remote locations obviously). When we launched our public WiFi initially, we had also anticipated theft to be a big issue, which actually it wasn't. As we placed our hotspots on schools, clinics and places of worship (and provide them with free internet), it was perceived as a community asset, thus reducing theft. Definitely something to monitor though. Will check out Specelink, thanks!

Thomas Mueller Aug 1, 2020

Great DJ. Do you use ubiquiti for your setup?

DJ Koeman Aug 1, 2020

Yup. Ubnt, mikrotik. Testing some other vendors as well. Challenge to find value for money. And always test in real world to cut through the marketing bs on the box, so to speak

Nabuyuni Sankan Jul 30, 2020

Hello DJ Koeman

Great concept.Quick question in Kenya the government has tried to put up electricity across many homes although some places especially the rural areas lack power how will you implement the use of solar power and training to interior community who have no access of the digital innovations ?

Also how affordable and convenient will it be as they need other sources of income especially due to the global pandemic.?

Great stuff
Best Regards

DJ Koeman Jul 30, 2020

Hi Nabuyuni, thanks for your comments, I really appreciate. Yes, rural will have its own, additional set of challenges, I am not gonna deny that. And COVID hasnt made it easier or better either. Working together with solar companies (Azuri, PowerHive) is something that we are already piloting. In addition, micro finance institutions (MFIs) are joining the bandwagon as well. By offering additional revenue streams to the micro-entrepreneur, this sharing model can benefit all players in the value chain. For those that can't afford home internet (or don't have stima) they can go to the micro-entrepreneur to use their WiFi, for say 20 bob a day. This way, there is a solution that caters for everyone's needs. By providing digital/financial literacy content, it will reduce operational expenditure for MFIs, so that will also positively contribute to the value chain. The digital skills training content will help the local community to source online jobs to improve their livelihood and resilience

James Kiruri Jul 30, 2020

Hello DJ, great idea. Please look at what Mawingu, Moja wifi, Google Loon are doing as I believe they are all trying to solve the same problem. Wish you all the very best.

DJ Koeman Jul 30, 2020

Hi James, thanks! We know all of them quite well. And yes, to some extent all are operating in the same space (more or less) but the space is big enough. Mawingu focuses on remote locations (same as us) with a fixed wiress access solution (same as us) but targeting mid/high segment with their price point (and that is where we are different). Moja Wifi focuses on the mwananchi (same as us) using Wifi (same as us) but on places outside of the home like matatu bus or cafe (and that is different from us). The majority of internet is consumed in the comfort of your own hoe and that is where our main focus is. Hope this explains the similaries and differences, they are all great initiatives and solutions btw. We all are trying to bridge the digital divide

James Kiruri Jul 30, 2020

Hi DJ, the Internet for the last mile is music to my ears as our Teleeza platform is about delivering content on a phone's Lockscreen, developed in Kenya for Kenyans and the world. The one challenge we are fully aware of not just the existence or access of Internet in the remotest parts but also affordability. We have been talking to the telcos but for them it has to make business sense. Lets keep talking and if you have an android phone, kindly download Teleeza from the Google Playstore and you will understand the idea better. We would like to take this discussion forward and see what collaboration opportunities exist.

DJ Koeman Jul 30, 2020

will download the app, rafiki. we can always engage off line

Sunday Bawa Jul 30, 2020

DJ Koeman Jul 30, 2020

thanks Sunday

Sunday Bawa Jul 30, 2020

You're welcome.

Olajide Ogunmoroti Jul 31, 2020

Dear DJ Koeman,
Good idea, I want to know will you solution depend on the existing ISP or you get yours satellite.

DJ Koeman Jul 31, 2020

It depends on the location. In some cases we can bridge the gap by having (multiple) point to point links from the fiber pop where we pick up the Internet from our wholesale upstream provider. In other cases we will use satellite as back haul

Placidius Rwechungura Aug 4, 2020

Congratulations for a good idea and daring to start

DJ Koeman Aug 4, 2020

Thank you very much Placidius, truly appreciated! Love the name, never hard it before!

Placidius Rwechungura Aug 4, 2020

Thank you very much Sir, You are most welcome in Tanzania! We can stay connected. My email is placidius@agripoa.com and Whatsap Number is +255783843833

DJ Koeman Aug 4, 2020

nashukuru mkubwa, jioni njema

Placidius Rwechungura Aug 4, 2020

Hahahaaa...asante sana ...na kwako pia

DJ Koeman Aug 13, 2020

thanks everyone for your great feedback! All good questions and concerns. Some of those I have addressed in the replies. All we need now is votes to take it to the next level!

SSEMPALA EDWARD Aug 13, 2020

Great initiative DJ Koeman, Do you have plans of scaling up to Uganda also. We shall be glad to receive you.

DJ Koeman Aug 13, 2020

Uganda as neighboring country is definitely on the radar. Years of experience however taught me that these things usually are very much driven by opportunities that present themselves (by chance). So we will have to see about timing of the same bro

Chidi Nwaogu Aug 13, 2020

Nice idea! However, you seem to be wanting to do too much while quite young. You are offering broadband, smartphone sales, mobile phone charging, micro-financing, trainings, and a lot more. Don't you think this will take away the focus? Simplicity is velocity, they say. So, I think you should start with one powerful product/solution that is likely to produce the most impact and create the larger profit margin. Once you are known, loved, and trusted in the market for this value you offer, you can begin to branch into new verticals slowly until you dominate every vertical in the market. Just like Amazon started with the sale of books, and gradually expanded into multiple verticals. What do you think? Does this make any sense to you?

DJ Koeman Aug 14, 2020

Chidi you are absolutely right! It is a staggered approach. 1st things 1st. MVP is vanilla internet of course. Some of the local entrepreneurs are resourceful enough to start monetizing already. Then bit by bit, we start adding additional tools to monetize the internet, as well as content and diversified revenue streams. The good news is that we are already in talks with micro-insurance, MFI, educational content, digital literacy content, ag-tech and hardware partners. So yes, you are spot on, but am hopeful that we can actually move pretty quickly. Hope you still like the idea well enough to vote for it

Calister Simba Aug 14, 2020

Hi DJ, Finally I have seen a certain solution that can help rural areas in Africa, I believe most digital platforms require internet/wifi to reach a wider range of communities inclusive rural areas, you have a chance to collaborate with all of them, including me to ensure all these projects are achieving their goals, keep up at it!! You have my vote!!

DJ Koeman Aug 14, 2020

Thanks Calister, spoken like a LION, true to your name! It is our sincere belief that when we all collaborate, we can move mountains. Looking forward to the journey together!

Eduardo Salgado Aug 14, 2020

Hello!
That's a really noble idea and I like that you seem very passionate about it. I personally believe that through internet availability you can make any country grow. My question is: How do you plan to bring the necessary infrastructure to power these hotspots? Will electricity availability be a problem?

DJ Koeman Aug 14, 2020

Thanks companiero. Power consumption of devices at the edge of the network is low solar can do. That is why we will partner with a solar company. Good point though

Marabe Ditshego Aug 17, 2020

Good day DJ,
I wish to convey my gratitude for your well-being.

Let me congratulate you on your idea.

Allow me to share a few considerations.

1. I must admit that the title of your post raised certain expectations which weren’t met in the rest of the post. I was expecting your solution to be based primarily on last-mile delivery when in fact it is based on internet access. Perhaps you should look at revising the title to speak to the contents of your post.
2. Consider adding sources or citations for the facts/stats quoted throughout your post, more specifically in the idea description section, to give them more credibility.
3. Your objectives as they stand are well articulated however would be more potent is converted to SMART objectives. Thus, I propose that you consider changing them into SMART objectives that timelines for each objective. Visit https://thedigitalprojectmanager.com/project-objectives/ for a detailed explanation.
4. Consider using the problem section to articulate the exact COVID-19 related problems which your idea will be solving. Moreover, you should make use of statistics or facts pulled from reliable sources to give the problems listed credibility.

Regards.

Users tagged:

DJ Koeman Aug 19, 2020

Thanks Marabe for your valuable feedback! Will definitely take into consideration!

Marabe Ditshego Aug 19, 2020

You welcome. All the best going forward.

IKECHUKWU UMEZURUMBA Aug 19, 2020

i love this idea,but your title does not reflect what your idea is.It will be wise if in a glance someone understands your idea

DJ Koeman Aug 21, 2020

will update in final submission

IKECHUKWU UMEZURUMBA Aug 19, 2020

I will like you to visit https://cocreate.itu.int/post/3466710 for your comments and vote as well.

IKECHUKWU UMEZURUMBA Aug 19, 2020

I will like you to visit https://cocreate.itu.int/post/3466710 for your comments and vote as well.

Carol Kakooza Aug 27, 2020

This is a great innovation i can only wish you and myself luck going forward

DJ Koeman Aug 28, 2020

Thanks Carol, we are trying!

Jaymer Jayoma Aug 27, 2020

This is a good project. This kind of project is very essential to help eliminate the digital divide.

DJ Koeman Aug 28, 2020

Thanks Jaymer, we are doing our best

JOSEPH MUNJI Aug 28, 2020

This welcome. The space is big enough. Also take note that major players have become complacent just because they are big so you find that their service at time is just poor. This could form a new front for customers who would want to switch.

Users tagged:

DJ Koeman Aug 28, 2020

thanks Joseph, indeed keeping a close eye on competition