Telecenter Sustainability: Myths and Opportunities

This 13-page chapter from "Bridging the Rural Knowledge Gap: Information Systems for Improved Livelihoods," edited by Dixon & Wattenbach, examines financial sustainability issues involved in telecentre management, particularly in developing countries.


Sustainability, according to author Proenza, is multi-faceted, a statement he supports with structural and cost data from telecentres in 3 countries. These facets include: the region's communications and technology infrastructure, the governance structure of the individual telecentre, and the regulatory climate.


"The rules governing telecentre economics are not complex but they are unforgiving. If a telecentre revenue inflow does not cover expenses and generate a surplus to replace equipment...", the breakdown of technology equipment "and obsolescence will eventually force the telecentre to shut down." Further, "(i)f the telecentre does not generate sufficient income to cover operation and maintenance costs - operational viability - the telecentre may have to shut down even sooner."

In studying factors of sustainability, Proenza examines important lessons from the proliferation of cyber cafes. Using the example of Lima, Peru, he characterises success factors as:

• location in dense population areas;
• large numbers of underemployed engineers for low cost manufacture and maintenance;
• software pirating and cloning in parts manufacturing for low equipment cost;
• competition cutting the cost of connectivity; and
• a major awareness campaign to stimulate use.

Cyber cafe operator decisions that model good management are:

• tailored services for the location's clientele;
• basic training of low paid attendants;
• minimal software often pirated or free; and
• cost sharing strategies like shared rent or business diversification to stay competitive.

The author then examines policies at non-governmental organisation (NGO)-established telecentres to find viable management strategies. He emphasises the importance of a clear governance structure linked to the term "community ownership," including commitment from the operator to manage effectively without political influence. He examines risks in low density areas, especially with economically poor residents, and advises doing sustainable financial planning taking into account possible limited use and a need for education tied to the creation of a user base. He also suggests preparing to deal with political factionalisation in fragmented societies with marginalised groups.

Proenza discusses the positive aspects of franchising, along with the need to subsidise franchises in low income areas. He presents two of models of state-supported systems for subsidies. He reviews the strategy of studying local needs for services provided, and the partnership alliance possibilities offered by schools, post offices, and libraries. He concludes that the most promising way forward is the telecentre that is managed well by a local non-profit in partnership with a variety of agencies, businesses and civil society organisation at the local level to achieve long term sustainability.