The Last Mile Initiative (LMI) is a global program operating in more than 25 countries worldwide that expands access to telecommunication services to under-served communities in developing countries with the objective of bridging the digital divide and improving the living standards of marginalized communities. It is sponsored by USAID, local government institutions and the local and international private sector. Through public-private alliances, the LMI Project seeks to bring about a unique free enterprise system that delivers sustainable ICT solutions to rural areas that have yet to capitalize on the digital revolution of the past decade.
With LMI, USAID put forward the challenge to design a business model that would respond to these five challenges:
- Leveraging appropriate technologies - with the advent of new low-cost wireless technologies at a more accessible price-point than traditional physical technologies, construct operationally viable distribution mechanisms.
- Scalability - lack of telecommunication services is a national issue, so ensure that the business model is able to scale nationwide
- Financial sustainability - traditional telcos do not enter rural communities because the existing economies do not provide the returns their stockholder seek - model should respond or address this issue
- Leverage and/or integrate Universal Service Funds - traditionally, USF seek simply to broaden the coverage of basic voice service to rural communities; LMI sought to redefine this space by including broadband coverage to rural communities and including translating voice as an additional service that is automatically provided over the high bandwidth IP network
- Integrate Public-Private partnerships - early on it was identified that a broad community of stakeholders would be required to break the existing paradigm, and that the integration of resources from local and global private sector players would be required
Managing USAID's LMI Portfolio for Latin America, Alexius gained exprience from conducting each of the three phases of executing LMI programs. We began our work with the conceptual design and business model concept for seven countries in Central and South America, taking several existing constructs and developing a disruptive innovation the Micro-Telco business model. Through a competitive process USAID chose five to move onto the project planning and design phase, including LMI Ecuador which was developed in partnership with World Council of Credit Unions. The final phase resulted in the implementation of projects in four countries: Guatemala, Paraguay, Colombia, and Peru.
Note: You can also access a white paper on the Last Mile Initiative and the Micro-Telco business model written by Darrell Owen here.
