Leveraging the postal network for a sustainable and inclusive deployment of digital infrastructure and services (UPU)

4 Dec 2023 15:00h - 16:30h UTC

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Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Full session report

Moderator Paul Donahore

The postal network, comprising of over 650,000 post offices worldwide, plays a crucial role in promoting social and digital inclusion, particularly in rural and remote areas. These post offices act as vital hubs that connect communities, facilitating communication, trade, and providing essential services for small and medium enterprises. However, the postal industry is facing significant challenges amidst the ongoing digital transformation. The rise of digital communication and commerce necessitates the adaptation and integration of digital services in the postal industry. Collaboration between different networks and sectors becomes essential to advance the digital economy, fostering mutual benefits and comprehensive development. Postal services hold a long-standing historical importance in facilitating communication and trade. Paul Donahore, an influential advocate, recognizes the immense potential of the postal network in bridging the digital divide. He emphasizes the importance of connectivity and relevant services for post offices, reinforcing their role in delivering sustainable and inclusive digital services. Leveraging the existing infrastructure of post offices can lead to the deployment of digital services that address the needs of underserved communities. Furthermore, the future success of organizations relies heavily on connectivity and digital technology. Incorporating digital access, including live streaming and digital accessibility, into business strategies can greatly enhance operations and tap into new opportunities for growth and success. In conclusion, the postal network plays a vital role in social and digital inclusion. However, the industry faces challenges in adapting to digital transformation. Collaboration between networks and sectors is necessary to advance the digital economy. Postal services hold historical significance in facilitating communication and trade. Advocates like Paul Donahore emphasize the potential of leveraging the postal network for sustainable and inclusive digital services. Connectivity and digital technology are crucial for the future success of organizations.

Speaker 1

The telecommunications sector is currently undergoing a major shift, with a strong emphasis on digital and broadband services. This shift is accompanied by significant investments being made in data centres, fibre optics, and the expansion of broadband services. These developments reflect the growing importance of digital technology and the increasing demand for high-speed internet connectivity.

In parallel, there is a recognition of the potential role that the postal network can play in supporting the physical aspects of the evolving digital ecosystem. The postal network is seen as a crucial component in facilitating the transportation of products in e-commerce and the delivery of medical supplies in e-health services. This recognition highlights the need for a comprehensive understanding of how the postal network can effectively support these new digital services.

Given the evolving landscape, it is imperative for governments and policymakers to have a deeper understanding of the ways in which the postal network can contribute to the digital transformation. Policymakers must also plan for the necessary infrastructure and regulations to enable a sustainable and long-term reform and transformation of the postal sector. Ideally, this would involve a well-defined policy planning objective, spanning five to ten years.

While there has been significant progress in achieving 4G coverage, with 94% of the population now covered, the remaining 6% who are still unconnected represent a substantial portion. This underscores the need for focused strategic efforts to bridge the connectivity gap and ensure that all individuals have access to digital services. Governments should particularly prioritize the last unconnected percentages of the population, as this represents a significant number of people who are still excluded from the benefits of digital technology.

Moreover, efforts still need to be made to address the challenges faced by remote areas. For instance, out of the 6,000 post offices, 60 are not well-equipped to adequately serve these remote societies. This highlights the importance of targeted interventions and government support to ensure that even the most isolated regions are not left behind in the digital revolution.

In conclusion, the telecommunications sector is experiencing a shift towards digital and broadband services, backed by significant investments. The postal network has the potential to support the physical aspects of the evolving digital ecosystem, and it is crucial for governments and policymakers to understand and plan for this role. While progress has been made in achieving 4G coverage, efforts are still required to bridge the connectivity gap and address the challenges faced by remote areas. Governments must prioritize the last unconnected percentages of the population to ensure that the benefits of digital technology are accessible to all.

Ad

The PostBase Super App is a cutting-edge digital channel that enables users to access a wide range of financial services provided by Korean institutions, as well as other post-Indonesia services. This platform is designed to offer customers a convenient and accessible way to carry out their financial transactions and other related activities.

One of the key features of the PostBase Super App is its support for Micro, Small, and Medium Enterprises (MSMEs) and other types of businesses. The app serves as a comprehensive business solution, allowing MSMEs to streamline their operations and expand their reach. This support for businesses is crucial for achieving Sustainable Development Goal 8, which is focused on promoting decent work and economic growth.

The app also plays a significant role in promoting financial inclusivity and reducing inequalities, aligning with Sustainable Development Goal 10. Users can access a diverse range of financial services and carry out transactions with ease through the PostBase Super App. With over 1,800 services available, users have access to a wide array of financial options that suit their needs. Furthermore, the app enables forward transfers and provides users with the ability to contribute to communities, fostering a sense of shared prosperity. These inclusive financial services have a positive impact on reducing poverty, which is one of the goals of Sustainable Development Goal 1.

The PostBase Super App acts as a bridge that connects remote areas with inclusive financial services. It offers comprehensive features and services that simplify postal Cash on Delivery (COD) services, particularly in distant regions of Indonesia. Furthermore, the app involves small and medium enterprises in providing inclusive financial services to these remote areas, contributing to Sustainable Development Goals 8 and 9.

Additionally, the app includes an innovative feature called PostBase Gold, which facilitates digital gold trading. Users can buy and sell physical gold using this digital platform, which aligns with Sustainable Development Goal 9, focused on promoting industry, innovation, and infrastructure.

In conclusion, the PostBase Super App is a game-changer in the financial services industry. It provides customers with access to Korean financial services and other post-Indonesia services, while also supporting MSMEs and promoting financial inclusivity. With its comprehensive features and services, the app helps bridge the gap between remote areas and inclusive financial services. Furthermore, the inclusion of the PostBase Gold feature demonstrates the app’s commitment to innovation. Overall, the app has a positive impact on achieving Sustainable Development Goals 1, 8, 9, and 10.

Daniel

This analysis focuses on the impact of e-commerce on MSMEs in Africa and highlights several significant points. The GSMA has been actively working to assist MSMEs in adopting mobile services and the mobile internet. This support is crucial as e-commerce is recognized as a vital tool for digitalising MSMEs. Additionally, the relevance of mobile service offerings and the need for connectivity are emphasised in order to maximise the benefits of e-commerce for MSMEs.

Access to finance and the development of digital skills are identified as essential needs for MSMEs to effectively engage in e-commerce. In fact, 40% of the e-commerce users among MSMEs mentioned access to finance as their main challenge. The postal network is seen as a potential partner in addressing this issue by potentially providing access to finance and digital skills through its wide availability.

However, there are challenges associated with e-commerce in Africa. One significant challenge is the low profitability of e-commerce platforms despite significant funding. This is primarily due to high delivery and warehousing costs, which constitute a major expense. It highlights the need for innovative solutions in delivery and distribution, with private startups introducing new delivery methods and aggregating services on motorbikes in certain markets.

The analysis also reveals the prominent role of social commerce in Africa, particularly among MSMEs. It is mentioned that social commerce accounts for 60% of total e-commerce in Africa, largely due to its extensive use by MSMEs. This reflects the prevalence of informal delivery mechanisms in the region.

Overall, the analysis concludes that while e-commerce presents significant opportunities for MSMEs in Africa, there are challenges that need to be addressed. Efforts should focus on supporting MSMEs in accessing finance, developing digital skills, and addressing delivery and warehousing costs. The postal network is seen as a potential partner in these endeavours. Partnerships and innovation in delivery methods are key to improving the profitability of e-commerce platforms.

In conclusion, e-commerce has the potential to greatly benefit MSMEs in Africa, but concerted efforts across various fronts are required to maximize its impact. By addressing challenges and capitalising on the opportunities presented by e-commerce, MSMEs can achieve digital transformation and contribute to economic growth and development in the region.

Audience

During a panel discussion, the importance of connectivity for 4G was emphasised, highlighting the impressive coverage of telecommunications in a nation comprised of over 17,000 islands. This suggests significant progress in expanding network infrastructure to ensure widespread connectivity throughout the country.

The audience, intrigued by the panel’s insights, raised questions regarding potential collaborations with telecom operators to further improve network coverage. One proposed approach was exploring infrastructure co-location, where multiple operators share the same physical infrastructure, reducing costs and expanding coverage. Another suggested solution involved utilizing edge computing facilities, which would bring data processing and storage closer to the network’s edge, improving efficiency and reducing latency.

The positive sentiment from the audience regarding collaborations with telecom operators indicates a desire for collective efforts to enhance network coverage. By teaming up with telecom operators and utilising infrastructure co-location or edge computing facilities, there is potential to boost connectivity further and bridge any existing coverage gaps.

Although specific supporting facts were not mentioned in the given information, the audience’s interest in these potential collaborations indicates their belief in the benefits of working with telecom operators. This highlights the importance of partnerships and cooperative strategies in the telecommunications industry to ensure efficient and wide-ranging network coverage.

In conclusion, the panel discussion highlighted the significance of connectivity for 4G and showcased the extensive telecommunications coverage in a nation with thousands of islands. The audience’s keen interest in collaborating with telecom operators signifies a desire for expanding network coverage through strategies such as infrastructure co-location and edge computing facilities. Such collaborations have the potential to enhance connectivity and contribute to a more inclusive and connected society.

Fazal

The digital transformation in Indonesia, particularly for Micro, Small, and Medium Enterprises (MSMEs), is being discussed with a positive sentiment. MSMEs contribute a significant 61% share to Indonesia’s GDP, highlighting their importance to the country’s economy. Furthermore, it is projected that female-run MSMEs will have a 58% share of GDP by 2022, emphasizing the vital role of women entrepreneurs in driving economic growth.

Post-Indonesia, established in the 1740s, plays a crucial role in providing postal services across Indonesia’s extensive territory, which encompasses more than 17,000 islands. To adapt to the digital era, Post-Indonesia has undergone a transformation to become a customer-centric company. As part of this transformation, the PostPay super app has been launched, offering a wide range of services to both retail and corporate customers. The app integrates financial, postal, and business services, providing users with convenient access to over 1800 services.

Fazal, in his discussion, emphasizes the importance of leveraging the postal network for digital development, particularly for MSMEs. Post-Indonesia has established diverse platforms, including physical and digital ones, to cater to the needs of MSMEs. It has also partnered with 2.1 million MSMEs, supporting their growth and development. Physical services are provided through six regional offices, 43 main branches, and over 5,000 sub-branch offices. In addition to these physical services, digital services are delivered through the PostPay super app and a specialized MSME customer platform.

Fazal also supports the idea of digital socio-commerce and life commerce as part of the PostPay super app. Live commerce allows users to sell and buy directly, utilizing the app and live streaming features for business purposes. This highlights the app’s potential to facilitate online transactions and support the growth of MSMEs in Indonesia.

The Post Office provides value-added digital services to MSMEs, including free access to WiFi and live streaming centers. These centers, ranging from 2 to 10 in a post office, aim to provide MSMEs with opportunities for promotion and direct engagement with their customers. The Post Office plans to expand the number of live streaming centers to 1,000 across Indonesia by 2024, further enhancing the support provided to MSMEs.

However, there are challenges in achieving connectivity across Indonesia’s unique geographical landscape. With more than 17,000 islands, 300 airports, and 2,700 seaports, the country presents significant logistical challenges for establishing reliable connectivity. Efforts to address this issue include discussions to establish 300 H data centers across the country and the availability of fibre optics in at least 514 cities. However, challenges remain, particularly with the availability of power sources for the data centers.

Another challenge highlighted is the high risk involved in distributing cash across remote areas, especially during the COVID-19 pandemic. To reach 20,500,000 families, employees had to navigate high-risk situations such as carrying cash in bags using boats and crossing jungles. In some cases, bags with cash even fell into the sea, illustrating the difficulties faced in ensuring secure cash distribution in remote areas.

In conclusion, the digital transformation in Indonesia, with a focus on MSMEs, is seen as a positive development. The Post-Indonesia, through its PostPay super app and various digital initiatives, plays a significant role in facilitating this transformation. The app integrates financial, postal, and business services, providing a comprehensive platform for users. However, challenges in achieving connectivity and ensuring secure cash distribution in remote areas highlight the unique geographical and logistical challenges faced by Indonesia. Overall, the efforts to embrace digital transformation and leverage the postal network are crucial for the growth and development of MSMEs in the country.

Waleed

The analysis explores various topics including digital connectivity, digital inclusion, capacity building, infrastructure, public-private partnerships, and the government’s role. One of the main concerns highlighted is that around 2.4 billion people worldwide lack internet access, hindering their ability to benefit from the digital economy. Collaboration among different stakeholders is identified as crucial to tackle this challenge.

The analysis suggests that postal networks, such as the Universal Postal Union (UPU), could collaborate with the International Telecommunication Union (ITU) to enhance digital connectivity and inclusion. Postal networks have a significant global reach and can be leveraged to create an infrastructure backbone through fiberization. This collaboration has the potential to bring digital services to remote areas and reduce inequalities, contributing to the SDGs related to industry, innovation, infrastructure, and reduced inequalities.

Capacity building is emphasized as essential for enhancing digital inclusion. The lack of skills and knowledge about digital services is identified as a major barrier, which can be overcome through training and education initiatives. Digital services also have economic value, enabling remote farmers, for example, to sell their produce online and increase their income opportunities.

The role of the private sector in driving successful and sustainable infrastructure projects is highlighted. The private sector’s leading role in such projects and its clear business case are seen as significant factors contributing to their sustainability. Public-private partnerships are also deemed necessary for addressing the infrastructure gap sustainably and achieving SDG objectives.

The analysis suggests less government intervention and more collaborative play. Companies like Meta, Google, and TikTok are interested in forming partnerships, and regulatory regimes can be adjusted to attract more partners. Encouraging collaboration between the private sector and the government through supportive regulatory frameworks can foster innovation and facilitate progress towards universal digital connectivity and inclusive development.

In conclusion, the analysis emphasizes the importance of collaboration among different stakeholders to address the challenges of digital connectivity and inclusion. It underscores the potential of collaborations involving postal networks, capacity building initiatives, private sector-driven infrastructure projects, public-private partnerships, and a collaborative approach between the government and the private sector. By leveraging resources, expertise, and fostering innovation, it is possible to enhance digital inclusion, create economic value, and promote sustainable development for all.

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Daniel

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