Currently there are 5 telecommunication operators having PSTN line capacity of 145,729 lines with 91,289 in use. The Optic fiber STM 16 with the capacity of 2.5 G has been installed connecting all 17 provinces. The GSM line capacity 1,061,968 with line in use 776, 236, the CDMA/WLL line capacity 50,000 with line in use 14,152, the Internet ADSL or Wireless line capacity 46,240 with line in use 4,233. There 338 Public Telephone and 793 Rural Telephone covered 118 districts out of 141 districts.
The Internet Service Provider (ISP) licenses were given to 12 companies, including 5 telecom operators. However there are only 6 companies being providing the service, which the remaining are facing the problem with set up their own Internet Infrastructure and marketing plan. Estimated there 300 Internet cafes in the country, which the highest number still in Vientiane having around 150 Internet cafes and followed by Luang Prabang province having around 50 Internet cafes. There are more Lao people using Internet, which having around 80% compared to year 2003 is only 30%, which more then 50% are foreigner and tourists at that time. Estimate there are around 20,000 Laotians people using Internet regularly, which student were ranking as number one however the main purpose of Internet utilization is for the chatting or any other entertainment but not yet for the education and research, due to the students mainly connected to Internet via the Internet Caf?, which the Internet utilization at university and colleges are reserving for administration use only. The government and projects staffs are coming as second, which mainly access through the office with the organization budget support.
There is generally no problem to find the computer equipment and standard of the shelf software in Vientiane, which having around 67 computer companies (reseller), which half of them having the foreigner joint venture or being the dealer and/or distributor of international brand name. It logically gets harder the further away from the capital having only one or two computer companies in the provinces, which 3 provinces in the north and 2 provinces in south doesn't have any computer service companies.
A relatively large number of small businesses import computer parts and assemble computer systems according to customer specifications. There is a 5% import on office supplies (for office use), computers, photocopiers, and its peripherals, etc., which in many countries would be marginal but of course does not help the sector in Lao PDR since the purchasing power is so constrained. If the equipment is intended for resale/retail, the import tariff is 10% for office equipment. On telecom equipment the import tariffs are 3% for office use and 10% if intended for resale/retail and there is also 3-5% of profit tax, which makes all together 18 to 20% tax. There is an ongoing debate on whether to lower the tariffs to stimulate the sector. Specialized items, larger servers, telecom equipment, etc., are generally ordered internationally. There is an important second-hand market, serving the large segment that find new computers and equipment too costly. It is around 1,200 USD for the new PC selling in the Lao PDR, while the no-brand is cost around 600 USD and second hand brand new computer is cost less then 400 USD. Most ICT related consulting services can be found in Vientiane; including system administration, development, integration, programming, etc. It is hard to judge the quality of available services. It is probably not totally out of line to assume that most services available do not meet up to international standards due to the hitherto limited exposure of opportunities to build up sector capacity. Therefore for the huge ICT project, especially the electronic solution is mainly the foreigner companies or the company having the foreigner consultants was win the bid.
The Government recognizes that the Communication Information Technology is essential to the country's overall social and economic growth and development, and is essential to increase service penetration to the levels that are available among Lao PDR's regional neighbors and major trading partners, because the increased availability of modern telecommunications services and ICT services in Lao PDR will stimulate domestic economic growth and will enable greater participation of Lao PDR in the region and in the ASEAN and global information economy. In spite of its technical, financial and human resource problems, the Government of Lao PDR is making great efforts to narrow the digital divide among Asian countries.
Countries have begun to recognize the emergence of e-governance as a potential to reorganize government functioning to provide timely, transparent and cost effective service to the citizens. The vision for implementing e-Governance in the country is to adopt ICT tools across various tiers of administration at the Ministries, Departments, Provinces, Districts and Villages of Lao PDR to bring about SMART Government and offer appropriate e-interfaces to the people (in cities as well as villages) through electronic delivery channels. This vision is to be achieved with the following objectives: Anywhere, anytime access to Government Information which brings about transparency, efficiency and empowerment of citizens; e-Delivery of Government services to the citizens through Web and Integrated Citizen Service Centres, which will be particularly beneficial to poor communities in remote areas by saving money and time in dealings with government; Increase internal efficiency and prompt delivery of citizen services; and Strengthening Communitisation.
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