Download Cambodian ICT Masterplan

Cambodian ICT Masterplan
ICT Industry Promotion Policies
October 30, 2013
Dr. Hwang Sung Jin (KISDI)
I
Fundamental Changes in ICT
II
Overview of Cambodian ICT Ecosystem
III
Recommendations
1
I
Fundamental Changes in ICT
2
Fundamental Changes in ICT
Incessant progress of ICT has brought
three evolutionary changes as follows,
Internet
Mobile
Digitalized Contents
- Positioned as global unified OS
- Global borderless communication
- Demand for ICT soaring up
- WLL rather than LLU
- From Voice to Data
- Diverse ICT services come up
Advent of Smartphone, a PC in the pocket
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Emerge of ICT Ecosystem
As smartphone has been introduced into the market and widely
spread, ICT has gone though substantial change,
from network operator centric to platform provider centric
The structure of ICT has been transformed from vertical like
food-chain to symbiotic with four major players such as
C (Contents), N (Network), P (Platform) and D (Devices)
The openness, basic trigger of such change, means that each
players could evolve by themselves independently i.e.
contents are not subordinate to network anymore
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Political Implications
In ecosystem ICT’s development path is not linear anymore,
instead the various combinations of four players come up
depending on ‘raison d’être’ of that ecosystem
☞ Therefore the construction of nationwide network is no
longer prerequisite, rather internet access (connectivity)
becomes more critical when the ICT policies is designed
☞
In this context the ICT policies do not always need large
amount of investment to construct the nationwide fixed-line
network, nor confined to domestic market
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II
Overview of
Cambodian ICT Ecosystem
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Contents
Strengths
-
-
Fairly developed tourism
Global attractiveness of Cambodian
culture
National pride in culture
Young generation’s strong will for job
Enough qualified human resources
Opportunities
-
-
Threats
Weakness
-
Sheer experience in global business
Fewer opportunities for business
creation
Lack of ICT experts and related
experiences
Increase of global tourism
Growing opportunities for creative
economy
Growing demand for new contents
Labor intensive with small investment
As service, easy to globalize
Wide spread of smartphone
-
Similar culture of surrounding countries
Relatively short time period of ICT
trend
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Network (Fixed-line)
Strengths
-
-
Positive investment opportunities for
foreign investors
Government’s firm recognition and
strong will for developing fixed-line
network
Enough demand brought by broadband,
mobile service expansion
Opportunities
-
Threats
Weakness
-
Relatively slow speed of expansion
which might defer the BEP
Insufficient capital needed to construct
Larger part of mountainous area which
is more costly
Insufficient electricity, and low
penetration
Low penetration rate of internet despite
of high necessity
Open market policy and privatization of
Telecom Cambodia
Network construction cost goes down
Expanding network is another
construction
-
Low long-term profitability due to
increase usage of mobile
Other alternatives like WiMAX continue
to come up
Slow down risk of Cambodian economy
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Network (Mobile)
Strengths
-
Sufficient market competition
Relatively enough market potential in
terms of profitability
Potentiality of market grow
Opportunities
-
Threats
Weakness
-
-
Relatively high dependency on foreign
capital
Relative low level of ARPU
Mobile coverage concentrated on urban
area
Relatively high portion of prepaid
Insufficient electricity, and low penetration
Mobile network construction cost keeps
going down
Installing the network will be
accompanied by construction industry
Relatively fast expansion of smartphone
-
Price war caused by excessive market
competition
Slowdown risk of Cambodian economy
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Platform
Strengths
-
Linguistic particularity to keep domestic
market, especially SW between platform
and end-users
Opportunities
-
Threats
Weakness
-
Complicate and unique language which
does not fit well to ICT
Low level of understanding on ICT
Insufficient purchasing power,
especially SW
Reduced trial and error risks as latecomer
-
No more chances to feed domestic
platform industry due to high
dependency on foreign platform
providers
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Devices
Strengths
-
Low level of operating expenses like
labor cost
Strong will of Government towards
industrialization
Opportunities
-
Threats
Weakness
-
Insufficient SOC for example electricity
Relatively lower attractiveness for
foreign manufacturers
Legal and institutional instability
No other typical advantage of
Cambodia to induce foreign
manufacturers
Globalization trend of major device
manufacturers
Recent fast spread of smartphone, new
devices
-
Many competitors like Vietnam for
inviting foreign investors
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III
Recommendations
12
Creative Economy of UN (2008 & 2010)
- Creative Economy implies set of any economic activities
producing creative assets
- Economy and Culture is not mutually exclusive anymore,
rather closely related
Scientific
Creativity
Technological
Creativity
Economic
Creativity
Cultural
Creativity
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Brief Cases of Creative Economy ( 1 )
England
-
Creative Industry (1997), Dept. of Culture, Media, Sports for job
creation
Creative Britain (2008), 26 policies for solving security, environment etc.
Australia
-
Creative Nation(1994), Policies on culture as an economic policy
Convergence of Culture industries and ICT (2006)
Strategic Digital Industry Plan (2013)
China
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Convergence(兩化融合) of industries and ICT (2011)
From ‘Made in China’ to ‘Created in China’
Knowledge Industry and Creative Industry
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Brief Cases of Creative Economy ( 2 )
USA
-
Mobile Initiative : 98% within 5 years
Startup America : Entrepreneurship, Venture, Social collaboration etc.
Japan
-
Cool Japan Strategy (2010)
More than 3% from New Growth Engine like animation, food etc.
The 3rd Wave towards Convergence from Public Interests, via Efficiency
Korea
-
Social consolidation for further progress
Convergence of science and creative industry, especially culture
Job creation and business creation for booming up the Korea
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Creative Economy Policy of Korea
www.creativekorea.or.kr
-
Open in October 2013 for all Korean
Creating jobs and businesses
Help creative idea for combined with ICT, scientific technologies,
culture & art and social science and in fact commercialized
Arrange investors, experts including marketing specialists
Korea Creative Contents Agency (KCCA)
-
Established in 2009 in combination of related institutes such as KOGIA
(game), KCCA (culture and content), KBI (broadcasting) and etc.
Contents as industry
Help contents related business including raise money and globalization
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Considerations
Contents industry is a typical service industry which could be
characterized by labor-intensive, easy scalability,
zero marginal cost and so forth
despite of its shortcoming like easy-to-copy.
Devices industry is a typical electronics industry which is key
element for industrialization alongside steel industry,
automobile industry, construction, etc. and other SOC.
Among three production factors, labor is the one which takes
longer time to get, i.e. accumulation process. Although land is
given then uncontrollable, globalization could be an answer.
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Long-term Strategic Thrusts
Considering ‘as-is’ of today’s Cambodia, to set up
Long-term ICT Industry Promotion Policies
not only for making economic development
but also for establishing bright ‘to-be’ of
Tomorrow’s New Cambodia,
it is ”Creative Cambodia”
Principles of Strategic Thrusts
• Towards Global
• Select & Focus
• Auto-Financing
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Basis of Creative Cambodia Program
Global
Cooperation
Public &
Private
Collaboration
Cambodia’s
own Contents
Human
Resources
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Thank you!