comparative broadband policy: hong kong, singapore, and taiwan
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Presentation for a policy memo providing brief comparative study of how the governments of Hong Kong, Singapore, and Taiwan facilitated high rates of broadband and smartphone adoption. Addresses those interested in how policy implementations influenced the development of broadband and mobile adoption, using these three regions as case studies. More specifically, this memo intends to be used for guidance by regional or national governments or companies for developing policies to grow telecommunications infrastructure and adoption. Created for Communication and International Economy (CMGT 531) at USC taught by Professor Jonathan Aronson.TRANSCRIPT
Broadband and Mobile Adoption
Policy Review of Hong Kong, Singapore, and Taiwan
Prepared by: Bessie Chu COMM 531 Communication and International Economy University of Southern California 12/4/13
WHY REVIEW? Regional and national governments may find this information useful in their own policymaking
Basis for comparison: • Recent governments all defined by post World War II geopolitics. • All three are relatively low-resource islands with ethnically Chinese majorities.
• Hong Kong and Singapore are city states. • Taipei dominant city as cultural, commerce, and governmental capital of Taiwan.
• All three arrived at similar rates of broadband and mobile penetration on different paths.
ITU
BEN
CH
MA
RK
ETS
Adop
tions
per
100
inha
bita
nts
Mobile Broadband (Smart Phones) 2005 2010 2013 Developed 47.18 44.74 41.62 Developing 12.72 11.96 11.13
World 19.12 17.82 16.49
Cell Phone Penetration 2005 2010 2013 Developed 82.09 115.00 128.16 Developing 22.92 68.96 89.40
World 33.92 77.20 96.21
Individuals with Internet Access at Home 2005 2010 2013
Developed 44.68 66.28 77.73 Developing 8.14 16.44 28.00
World 18.43 30.00 41.25
Worldwide
Hong Kong, Singapore, Taiwan, and United States Mobile-Cellular Telephone Subscriptions 2005 2010 2012
Hong Kong 125.47 195.57 214.72 Singapore 70.10 102.78 153.40
Taiwan 97.55 119.91 126.46 United States (Provided for Context) 68.63 91.86 98.17
Percentage of Individuals Using Internet 2005 2010 2012
Hong Kong 56.90 72.00 72.80 Singapore 61.00 71.00 74.18
Taiwan 58.01 71.50 75.99 United States (Provide for Context) 67.97 74.00 81.03
From: h(p://www.itu.int/en/ITU-‐D/Sta9s9cs/Pages/stat/default.aspx
Hong Kong
– British Colony from 1842 to 1997
– Special administration region within China
– Population 7+ million – $36,560 USD income
per capita
Popula9on and Income Figures from World Bank Figures 2012: h(p://data.worldbank.org/country/hong-‐kong-‐sar-‐china
HONG KONG State of Mobile and Broadband
Chart: h(p://www.budde.com.au/Research/Hong-‐Kong-‐Telecoms-‐Mobile-‐Broadband-‐and-‐Forecasts.html
Hong Kong: Government Policies
• Hong Kong Government made it a priority to establish advanced telecommunications infrastructure with policies to make it a regional e-Commerce hub
• Implemented digital network in 1993, one of first societies to have 100% digital backbone with fiber, microwave, and satellite networks – Land area of only 1092 square kilometers with 388,000
kilometers of optical fiber cables and linked with 9 submarine cables by 2000
• Used strategy of deregulated competitive market • Government was able to act as a steward by subsidizing
education and infrastructure services through real estate land leases to maintain low tax rates and remain a strong regulatory body
Hong Kong: Policy Theme “What other countries can learn from
Hong Kong is that an effective regulator is important especially in the case of increasing broadband access. By ensuring a competitive market for broadband, it is possible for the market to drive network roll out with minimal government intervention and subsidy.” From: Does a na9onal broadband policy ma(er? A Compara9ve analysis of broadband plans of Hong Kong and Singapore h(p://www.cprsouth.org/wp-‐content/uploads/2012/08/Junio_Policy_Brief.pdf/
SINGAPORE
– 1965 Separates from Malaysia shortly after Independence from UK
– Authoritarian Government effectively ruled by one party
– Population of 5+ million
– $47,210 USD income per capita
Popula9on and Income Figures from World Bank Figures 2012: h(p://data.worldbank.org/country/singapore
SINGAPORE State of Mobile and Broadband
Chart: h(p://www.budde.com.au/Research/Singapore-‐Telecoms-‐Mobile-‐and-‐Broadband.html
Singapore: Government Policies • Development of internet crucial as a regional shipping
and financial hub since 1980s with National IT Plan • Intelligent Island 2000 Master plan beginning in 1991 for
IT to permeate island • SingaporeONE broadband initiative
– Regarded as failure for not understanding users and no avenue for complaints
• Liberalized telecommunications sector starting in 2000 by letting more operators compete and giving less support to SingTel and Starhub
• First country to have fully broadband network and one of first to look to look at internet content and other policy issues
• Policies dominated by Infocomm Development Authority
Singapore: Policy Theme ”1997 Masterplan for Information
Technology in education with vision of everyone home, office, and school wired to nationwide information infrastructure… Intelligent Nation 2015 Masterplan to navigate Singapore’s transition into An Intelligent Nation, A Global City, Powered by Infocomm” From: h(p://www.ida.gov.sg/Infocomm-‐Landscape/iN2015-‐Masterplan/Progress-‐Milestones/Infocomm-‐in-‐Singapore-‐Today
TAIWAN
• Taiwan Key Facts – 1945 Japanese
surrenders the island to Republic of China as ruling government
– Current multi-party democracy after 1987
– Population 23+ million – $39,600 USD income
per capita
Popula9on and Income Figures CIA World Factbook: h(ps://www.cia.gov/library/publica9ons/the-‐world-‐factbook/geos/tw.html
TAIWAN State of Mobile and Broadband
Chart: h(p://www.budde.com.au/Research/Taiwan-‐Telecoms-‐Mobile-‐Broadband-‐and-‐Forecasts.html
Taiwan: Government Policies
• Priority given to telecommunications investments since 1980s
• Government led “networking” of firms, cooperative networks, and development plans
• Moves to lower taxes and reduce red tape to spur development and investment
• 1996 New Telecommunications Act: separation of Chunghwa Telecommunications for privatization
• National Info-Com Develop Plan – E-Government and E-infrastructure (2002-2007) – Mobile Taiwan (2005-2009) – Ubiquitous Taiwan (2008-2011) – Intelligent Taiwan (2008-present)
Taiwan: Policy Theme “The Taiwan government’s entire
industrial policy apparatus was geared toward promoting nationally owned firms, private and public, in both industry and services. Competition from foreign investors was structured in such a way as to strengthen national firms through technology transfer and ‘spillover’.” From: Alice H. Amsden, Wan-‐wen Chu. (2003). Beyond late development taiwan's upgrading policies. Cambridge, Massachuse(s: The MIT Press.
Comparative Notes
• All recognized and actively competed against each other, in particular Singapore and Hong Kong as port cities and regional financial hubs
• Policies also became priority as China opened up and developed, partially spurred by desire to create and have regional influence on Chinese Internet
Deregulated Competitive Landscape
Hong Kong Top Down
Government Initiatives
Singapore Government Invention and Networks
Taiwan
Hong Kong Fiber at home service 1,000 megabits (gig) a second for less than $26 | Fastest service at
Verizon is 50 megabits a second for $144.99 “In the United States, costs would come down if
companies shared the financial burden of putting fiber into the ground and then competed on the basis
of services built on top of the shared assets. That would bring multiple competitors into the picture,
pushing down prices. But it would also require regulatory changes that the Federal Communications
Commission has yet to show an appetite for.”
Why Should We Care?
For developing countries and underserved regions:
“Price is a big determinant in adoption in different countries,” even with infrastructure (James, 2003).
From: Stross, R. (2011, Mar 6, 2011). Cheap, ultrafast broadband? at least hong kong has it: [money and
Business/Financial desk]. New York Times, s, R. (pp. BU.4.
James, J. (2013). Digital interac9ons in developing countries an economic perspec9ve. New York, NY: Routledge
Recommendations
Active Government Approach with Localization in Mind
Infrastructure
Build Social, Educational, and
Business Capacity
Eventual Deregulation and Liberalization of
Telecom Companies
Interoperability and Spectrum Management
Price Affordability
THANK YOU Questions?
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