Village operator feasibility framework: A recommended method for assessing the viability of village operator sites

Abstract

The Meraka Institute, together with its partners, have undertaken an ambitious task to provide broadband connectivity to under-served areas of South Africa through a community centric model, as opposed to a typical national telco-driven odel. The goal is to build an alternative ecosystem where the value chain emphasises local economic development and growth by encouraging the development of the ICT sector in non urban areas. In addition to achieving affordable broadband connectivity, the planned model will serve to enhance local industry and government services, and contribute directly to the local economy through job creation. The proposed model empowers local ICT service providers, known as Village Operators, to implement broadband infrastructure using wireless mesh network technology to connect local public and private sector institutions and individuals, with an emphasis on schools as beneficiaries. The South African Department of Science and Technology in partnership with the European Commission (EC) is providing the initial funding to research, develop and demonstrate the proposed models. Ungana-Afrika has been asked to develop a Feasibility Framework, against which potential Village Operator implementation sites can be evaluated to test their viability. This framework proposes that feasibility is assessed according to six dimensions – Operational, Market, Technical, Social, Management and Financial Feasibility. A theoretical overview is provided for each dimension, along with some practical guidelines for investigation. To provide a basis for decision-making and comparison, a Feasibility Scorecard is included. The scorecard compares the Village Operator against a standard set of statements that are considered universal characteristics of viable organisations, and allows the assessor to include their own evaluations through SWOT analyses. Each dimension is scored independently, and an overall feasibility score is generated for the enterprise as a whole. Finally, a business model outline for Village Operators is provided as a basis for understanding the functioning of a Village Operator enterprise. Though it is not part of the framework, it provides context for understanding the application of the framework.