Updated ICT Assessment Methodology for USAID

This methodology is designed to enable local USAID presences to create effective ICT development programs that stimulate economic growth. The methodology is based on three building blocks: the "snapshot" style ICT assessment, the "growth diagnostics" (or "constraints analysis") methodology, and the sector assessment work done by Integra LLC for the GBI initiative in Kenya. The specific elements taken from each of these building blocks include the basic information contained in previous USAID ICT assessments, the growth diagnostics analysis, and the gap analysis. The growth diagnostics analysis involves evaluating the potential explanations for observed market outcomes, such as high mobile data prices. This analysis will determine which explanation is the most important and will provide a detailed portrait of the penetration and diffusion of Internet and broadband in the country. The revised structure of ICT assessments will consist of seven parts. Part I will pose the question to be investigated, while Part II will explain the methodology used. Part III will present a connectivity snapshot, including information on infrastructure, market structure, and aggregate demand for telecommunications. Part IV will analyze the connectivity situation, examining potential constraints to telecoms expansion. Part V will provide a snapshot of value-added ICT services in the country, while Part VI will evaluate the constraints to the expansion of these services. Part VII will offer recommendations on how USAID can address the constraints identified in previous sections of the report. The process of conducting this new type of ICT Assessment will involve similar levels of personnel, time, and money as previous ICT assessments. Two full-time consultants will be devoted to the ICT Assessment: an economist with experience in the methodology and an ICT specialist. A third team member, a senior development economist with expertise in the country, its government, and regulatory environment, may also be involved on a part-time basis. The time frame for the ICT Assessment will begin with a period of desk-based research in the United States, followed by a period of field research in the country. The team will collect data on telecoms/broadband reach, access, and pricing, as well as the structure of the domestic market and the history of the ICT sector in the country. This information will be distilled, and a series of hypotheses as to the binding constraint will be formed. The team will then identify unanswered questions and refine the "binding constraints" approach as an iterative process. The revised ICT Assessment methodology will provide missions with a more refined set of policy options, enabling them to create effective ICT development programs that stimulate economic growth.