InternationalTelecommunicationUnion 1
Stimulating Universal Access to Stimulating Universal Access to Broadband in ABBMN CountriesBroadband in ABBMN Countries
Sameer Sharma, Senior AdvisorITU Regional Office for Asia and the Pacific
Expert Group Meeting on Emerging ICT Expert Group Meeting on Emerging ICT Developments and Opportunities for Developments and Opportunities for Enhancing Cooperation for Regional Enhancing Cooperation for Regional
ConnectivityConnectivity
22-24 November 2010 Bangkok, Thailand
2
Agenda
ITU Vision on Broadband
Why Some Countries are So Successful?
Status of ABBMN Countries
Reasons for Gaps in Uptake of Broadband
How to Stimulate Broadband?
Conclusions
3
The ITU Vision on Broadband
Broadband needs to be considered as basic national Broadband needs to be considered as basic national infrastructure, as it will fundamentally reshape the infrastructure, as it will fundamentally reshape the
world in the 21st century and change the way services world in the 21st century and change the way services are delivered are delivered –– from efrom e‐‐health to ehealth to e‐‐education to education to
ee‐‐commerce to ecommerce to e‐‐government.government.
4
Broadband: National Perspective
Promoting economic and social development
Enhancing productivity and competitiveness
Helping job creation and opportunities
Raises rural income in developing countries
Gender equality and empowerment of women
Bringing economies out of economic crisis
Creating knowledge based society
5
Why Some Countries Are So Successful?
Realizing the role of ICT in national development
Creating clear vision, targets and implementation strategies for
ICT penetration and use
Support for building national backbone networks
Creating necessary supplies & critical demand for e‐applications
Enabling environment: Effective competitive environment,
investment in infrastructure, affordable access
Promoting public private partnership
6
Investment in Broadband
Source: Qiang and Rossotto, 2009;
Stimulates Economic Development
7
Correlation of ICT Levels and Income Levels:South Asia
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000
GNI per capita US$ 2008
IDI 2
008
ObservedLogarithmic
R² = 0.89
Maldives
Bhutan
Sri Lanka
India
Pakistan
Bangladesh
Nepal
Source: ITU
(0.69 including Bhutan)
Countries with lower IDI and GNI have potential to stimulate broadband by creating enabling environment and promoting investment in infrastructure
8
Impact of Broadband on InnovationInnovation efficiency vs. broadband penetration
Innovation efficiency vs. broadband penetration ratio
Source: World Economic Forum
Broadband facilitates innovation and entrepreneurship
Countries with a higher penetration see greater innovation
Broadband stokes innovation and it does so exponentially
9
Announced Government Support for ICT Development
Strong Belief that ICT Can Turn Around Source: World Economic Forum
InternationalTelecommunicationUnion 10
Status of ABBMN Countries
11
1.Where Do ABBMN Countries Stand?
2008 2007 2008 2007 2008 2007 2008 2007
WORLD* 3,58 3,32 4,07 3,76 1,70 1,39 6,37 6,30
DEVELOPING* 2,70 2,49 3,06 2,79 0,91 0,71 5,53 5,47
SOUTH ASIA* 1,96 1,80 2,34 2,08 0,33 0,24 4,45 4,35
Maldives 3,54 3,11 4,61 4,00 1,15 0,76 6,16 6,02Bhutan 1,62 1,48 1,90 1,74 0,25 0,20 3,82 3,54Bangladesh 1,41 1,34 1,78 1,59 0,01 0,01 3,48 3,48Nepal 1,34 1,27 1,37 1,31 0,06 0,05 3,83 3,61Afghanistan NA NA NA NA NA NA NA NA
*: simple averages
Use sub-index Skills sub-index
Economy
IDI Value Access sub-index
ABBMN countries lag behind especially in the “use sub-index”, which includes fixed broadband, mobile broadband and Internet usage indicators
Source: ITU
12
Source: ITU
2. Regional ICT Price Basket
ABBMN countries have potential to repeat the success of mobile in broadband
0 5 10 15 20 25 30 35 40
BangladeshNepal
Average developingAverage world
Average South AsiaPakistan
IndiaBhutan
Sri LankaMaldives
Average developed
ICT Price Basket Value 2009
Fixed telephone share Mobile cellular share Fixed broadband share
13
Source: ITU
3. Fixed Broadband Prices in South Asia
Fixed broadband sub-basket
4,4 9,
4
5,2 10
,0 14,6 16,5 21
,5
50,4
10,4 12
,7 15,6
28,5
50,2
45,4
64,1
0
10
20
30
40
50
60
70
Sri Lan
ka
Maldive
s
India
Bhutan
Pakista
n
South
Asia
Nepal
Bangla
desh
Mon
etar
y un
its
0
10
20
30
40
50
60
70
% m
onth
ly G
NI p
er c
apita
US$ PPP $ % monthly GNI per capita
14
4. Fixed Broadband Penetration in South Asia
• Negligible in Afghanistan and Bangladesh • Barely 0.3 % in Nepal, and 0.4 % in Bhutan• Only Maldives has a higher value: 5.8 %
5,8
0,8
0,6
0,5
0,4
0,3
0,3
0,00
0,03
0
1
2
3
4
5
6
7
Maldive
s
Sri Lan
ka
India
South
Asia
Bhutan
Pakist
an
Nepal
Bangla
desh
Afghanis
tan
subs
crip
tions
per
100
inha
bita
nts Upper-middle-income world
Lower-middle-income world
Low-income world
Lower-middle-income Low-income
Source: ITU
15
5. Mobile Broadband Penetration in South Asia
Source: ITU
Mobile broadband penetration
0,00
0,00
0,00
0,00
0,00
32,5
5,7
1,7
0,05
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
Maldive
s
Sri La
nka
Bhutan Ind
ia
Nepal
South
Asia
Pakist
anBan
glade
shAfg
hanis
tan
subs
crip
tions
per
100
inha
bita
nts Upper-middle-income world
Lower-middle-income world
Low-income world
Lower-middle-income Low-income
Issue of 3G spectrum licenses a major driver for broadband in ABBMN
• Not available or negligible in Afghanistan, Bangladesh and Nepal • Only 1.7 % in Bhutan, but 32,5 % in Maldives
16
6. ICT and Related Indicators: Afghanistan
Axes: normalized values to a goalpost. Source: ITU, UNESCO
0,000,050,100,150,200,250,300,35
Mobile cellularsubscriptions
International Internet
bandw idth
Fixed telephonelines
Households w ith a computer
Households w ith Internet access
Internet usersFixed
broadband subscribers
Mobile cellular broadband subscribers
Tertiary enrolment
Secondary enrolment
Literacy
2007 2008
Infrastructure Sharing on TV Hill Top., Afghanistan
Training for Internet Exchange and AfCERT
17
7. ICT and Related Indicators: Bangladesh
0,00,10,20,30,40,50,60,7
Mobile cellularsubscriptions
International Internet
bandw idth
Fixed telephonelines
Households w ith a computer
Households w ith Internet access
Internet usersFixed
broadband subscribers
Mobile cellular broadband subscribers
Tertiary enrolment
Secondary enrolment
Literacy
2007 2008
Axes: normalized values to a goalpost. Source: ITU, UNESCO
Transformation from current Low Broadband Penetration towards Digital BangladeshDigital Bangladesh
MIS
System
for B
angla
desh
Cost M
odelin
g W
orksh
op
18
8. ICT and Related Indicators: Bhutan
0,00,10,20,30,40,50,60,7
Mobile cellularsubscriptions
International Internet
bandw idth
Fixed telephonelines
Households w ith a computer
Households w ith Internet access
Internet usersFixed
broadband subscribers
Mobile cellular broadband subscribers
Tertiary enrolment
Secondary enrolment
Literacy
2007 2008
Connectin
g S
chools w
ith LC
CD
Axes: normalized values to a goalpost. Source: ITU, UNESCO
Worksh
op o
n V
oIP
& N
GN
On its way to achieve Universal Access by 2011
19
9. ICT and Related Indicators: Maldives
0,0
0,2
0,4
0,6
0,8
1,0
Mobile cellularsubscriptions
International Internet
bandw idth
Fixed telephonelines
Households w ith a computer
Households w ith Internet access
Internet usersFixed
broadband subscribers
Mobile cellular broadband subscribers
Tertiary enrolment
Secondary enrolment
Literacy
2007 2008
Axes: normalized values to a goalpost. Source: ITU, UNESCO
Technological Options for Connectivity
Highest IDI amongst ABBMN countries
Highest Mobile Penetration rate
Lowest ICT Price basket
Consistent Mobile Broadband Proliferation
20
10. ICT and Related Indicators: Nepal
0,0
0,1
0,2
0,3
0,4
0,5
0,6
Mobile cellularsubscriptions
International Internet
bandw idth
Fixed telephonelines
Households w ith a computer
Households w ith Internet access
Internet usersFixed
broadband subscribers
Mobile cellular broadband subscribers
Tertiary enrolment
Secondary enrolment
Literacy
2007 2008
Axes: normalized values to a goalpost. Source: ITU, UNESCO
E-H
ealth P
roject : N
epal
IDI Value 1.34 ( 4th in ABBMN)
Low International Internet Connectivity
Low availability of stable electricity
Quality o
f Service :N
T
InternationalTelecommunicationUnion 21
Reasons for the Gap?
22
1.780
3.640
520370400
1.040 950963
1.900
0,61 0,610,54 0,55
0,35
0,76
0,62
0,77
0,57
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
Maldive
s
Bhutan
Sri Lan
ka
India
South
Asia
Pakist
anBan
glade
sh
Nepal
Afghan
istan
GNI
/cap
ita U
S$
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,9
HDI
GNI per capita Atlas method (2008) HDI (2007)
lower-middle-incomelow-income
1.Significant Income Differences in the Region
Source: WB, UNDP
Growth build on broadband has the potential to boost GNI per capita and it’s growth does not need to wait for the GNI per capita to rise.
23
Afghanistan
Nepal
Bhutan
Pakistan
India
Sri Lanka
Maldives
Bangladesh
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 200 400 600 800 1000 1200 1400
Population density (inhabitants/km²)
Urb
an p
opul
atio
n (%
)
South Asia: 305 inhab/km²
South Asia: 29%
urban population
size : percentage of total population in the main urban agglomeration
2.Demographic Parameters Are Also Relevant
Source: UNSD, 2007
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3. Slow Pace of Infrastructure Deployment
Source: ITU
15,8
2,8
5,78
0,44
0,26
0,03
0,000,9
3,8
0,5
36,5%
0,8%3,3%
9,2%11,8%
0
2
4
6
8
10
12
14
16
18
Maldives Bhutan Nepal Bangladesh Afghanistan
per 1
00 in
habi
tant
s
0%
5%
10%
15%
20%
25%
30%
35%
40%
% fi
xed
broa
dban
d / f
ixed
tele
phon
e
Fixed telephone lines Fixed broadband subscriptions ratio (%)
Usage of the fixed telephone network to provide fixed broadband, 2009
Fixed Network Infrastructure
Improve fixed broadband by using the fixed telephone infrastructure in place Stimulate demand to create the right incentives for a fixed broadband
25
4. Low Personal Computer Penetration
Source: ITU
Ratio of households with Internet access to households with a PC in ABBMN countries, 20082,
2 4,2
30,2
1,90
1,15 2,
80
9,70
1,001,5 3,
2
86,4%
31,3%32,1%
66,7%
76,7%
0
5
10
15
20
25
30
35
Bangladesh Afghanistan Bhutan Maldives Nepal
perc
enta
ge
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ratio
(hh
with
Inte
rnet
/ hh
with
a P
C)
% households w ith a PC % households w ith Internet access ratio (%)
Define national programs for the distribution of low-cost computing
Encourage community access to broadband ( Connect School , Connect Community)
26
5. Very High Broadband Prices
Source: ITU
Price US$ 2009
Price % income 2009 ∆ 2009/2008
Price broadband / fixed telephone
2009
Penetration fixed telephone / fixed broadband
2009
Bangladesh
50.4 (currently reduced to US$ 8-15)
116 % - 7 % 32 times higher 31 times higher
Bhutan 10.0 6.3 % - 84 % 3 times higher 8,5 times higher
Maldives 9.4 3 % 0 % 2 times higher 3 times higher
Nepal 21.5 64 % - 6 % 7 times higher 11 times higher
Australia 26.0 0.8 % -5 % Equal 1,5 times higher
Korea Rep. 25.3 1.4 % 25 % 5 times higher Nearly equal
Sweden 35.5 0.8 % 10 % Nearly equal 1,5 times higher
United States 20.0 0.5 % 33 % 1,5 times higher 2 times higher
Low Low
High High
Address the bottlenecks in access, backhaul and international connectivity
27
6. Limited Use of Funding Support for Broadband Deployment
Source: ITU ABBMN Questionnaire (June 2010)
No
Tax exemption for telecom equipment imported for rural
services
Yes, in rural areasUSO imposed on the incumbent fixed line
operator, and financed through US Fund and
interconnection charges
Currently a draft under consultationNepal
Yes, for educational purposesNoNoNoMaldives
NoNoNoYesBhutan
NoNoNo, but foreseen in the National Broadband PolicyYes[1]Bangladesh
NoTDF FundNoBeing developedAfghanistan
Are there social tariffs for broadband subscribers?
Are there other financing mechanisms for broadband?
Universal service includes broadband?
Is there a national broadband plan?
Define National broadband strategies
Consider broadband for inclusion under universal service
Incentives for investment in rural and remote areas
28
7. Regulatory Environment
Source: ITU
Year created
Is it autonomous in its decision-making?
Are public consultations mandatory before adopting regulations?
Can the regulator impose sanctions?
Are there clear dispute-resolution mechanisms?
Who has the ultimate authority to overturn a decision of the regulator?
Nepal Telecommunications Authority 1997 Yes Only in some issues
requiring input Yes Yes The judiciary
Bhutan InfoComm & Media Authority
2000
Yes
(after 2006) Yes, before adopting rules Yes Only alternative
dispute resolution The Appellate Tribunal
Bangladesh Telecommunication Regulatory Commission
2001 Yes Yes Yes Yes The judiciary
Communications Authority of Maldives 2003 Yes No Yes No The President
Telecommunication Regulatory Board (Afghanistan)
2003 Yes Just in certain cases Yes Yes The sector Ministry
United States (FCC) 1934 Yes Yes Yes Yes The judiciary
Sweden (NPTA) 1992 Yes Yes Yes Binding decisions The judiciary
Korea Rep. (KCC) 1997 Yes NA Yes Courts/ litigation The judiciary
United Kingdom (Ofcom) 2002 Yes Yes Yes Yes The judiciary
Australia (ACMA) 2005 Yes Yes Yes Yes The judiciary, Administrative Appeals Tribunal
InternationalTelecommunicationUnion 29
How to Stimulate Broadband?
30
ABBMN Countries are Making Progress
0 1 2 3 4
Nepal
Bangladesh
Pakistan
Bhutan
India
Sri Lanka
Maldives
IDI 2002 IDI 2007 IDI 2008
Source: ITU
But is it sufficient and fast enough?
31
Role of Government
Stipulate clear vision and strategy in the national
agenda for development (Digital Bangladesh 2021)
Build Digital Highways: Support national backbone
networks
Create Critical Demand : e‐ government applications
Provide Tax Incentives for Broadband
Encourage Deployment of Low Cost Computing Devices
Build the skills to harness the full potential of broadband
32
Role of NRA
Predictable regulatory framework
Mandatory transparent consultation process
Converged licensing framework
Promoting competition
Investment in infrastructure : Incentives based regulation
Timely dispute resolution mechanism
Spectrum allocation for wireless broadband
Infrastructure sharing framework based on national
environment
33
Role of Private Sector
Investment in infrastructure
Innovation and deployment of new technologies
Develop different business models and consider the
introduction of e‐health/telemedicine services
Infrastructure Sharing
Join PPP initiatives for a win‐win outcome
34
Role of ITU
Encourage policies to promote investment in infrastructure and competition
Publish best practice guidelines , research & analysis and case studies
Assist in design & deploy ICT pilot network infrastructures
Assist in development of Broadband Policies and Master Plans
Resource mobilization and partnerships for Regional Initiatives
Seminar/ Trainings on New Technologies and ICT applications
Build human and institutional capacity in areas of policy, regulation, ICT skills
Produce technical standards for new and emerging technologies
Lead assignment of spectrum for mobile broadband services on global level
35
ITU Development Programs (2011‐14)
Cybersecurity, ICT Applications and IPCybersecurity, ICT Applications and IP‐‐based based
networknetwork‐‐related issuesrelated issues
Enabling EnvironmentEnabling Environment
Capacity Building and digital inclusionCapacity Building and digital inclusion
Least developed countries, countries in special need, Least developed countries, countries in special need, emergency telecommunications and climate change adaptationemergency telecommunications and climate change adaptationProgramme 5
Programme 4
Programme 3
Programme 2
Programme 1 Information and communication infrastructureInformation and communication infrastructureand technology developmentand technology development
36
Asia‐Pacific Regional Initiatives (2011‐14)
Emergency telecommunications
Digital broadcasting
Broadband access and uptake in urban and rural areas
Telecommunications/ICT policy and regulation
in the Asia‐Pacific region
ASP RI 1ASP RI 1Unique ICT needs of least developed countries (LDCs), small
island developing States (SIDS) and landlocked developing countries
ASP RI 2ASP RI 2
ASP RI 3ASP RI 3
ASP RI 4ASP RI 4
ASP RI 5ASP RI 5
37
Outcome of ABBMN Forum: Ministerial Declaration on Broadband
Establish National Broadband Policies and enabling regulatory
environment to stimulate investment of infrastructures including the
establishment of Internet Exchange especially in those countries where
such exchanges are still absent.
Establish or strengthen National Advanced ICT training capabilities in
each ABBMN country to educate citizens on the benefits of broadband
technologies and applications to develop appropriate skills to harness
the full potential of broadband.
38
Outcome of ABBMN Forum: Ministerial Declaration (II)
Encourage service providers to expand broadband access using full
potential of wireless broadband to deliver innovative solutions in rural
and remote areas while encouraging establishment of Broadband
Community Centers, capable of offering online applications including e‐
Governance, e‐Learning, e‐Health, e‐Publications using local contents
with engagement of local communities.
Facilitate to resolve the high bandwidth costs of international
connectivity among the neighboring countries to enable affordable
access and use of broadband services especially for the landlocked
countries.
39
Conclusions
ABBMN countries have recently experienced unprecedented mobile growth & have the potential to repeat the same for broadband
Broadband can be stimulated by:
(a) Appropriate public policy initiatives
(b) Enabling regulatory environment
(c) Involvement of the private sector
ITU and its partners would continue to assist through technical cooperation and resource mobilization
The report “Stimulating Universal Access to Broadband in ABBMN Countries” provides recommendations on the way forward
40ITU : ITU : http://www.itu.inthttp://www.itu.int
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