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Benchmarking the Asia-Pacific Broadband Divide
Citation preview
2
References
Designed Digital Access Index
Worked on Digital Opportunity Index
Evaluation of ICT indexes for UN
ITU Asia-Pacific report on broadband
3
Contents
• Update on the ITU Digital Opportunity Index (DOI)
• Benchmarking broadband • The Asian broadband divide
4
ITU Digital Opportunity Index (DOI)
• What is Digital Opportunity?– The whole population having easy access to
Information and Communication Technologies (ICTs) at affordable prices;
– All homes equipped with ICT devices; – All citizens having mobile ICT devices; and– Everyone using broadband.
5
DOI trends 2000-2007
0.00.10.20.30.40.50.60.70.80.91.0
Kor
ea
Japa
n
Den
mar
k
Sin
gapo
re
Taiw
an
Luxe
mbo
urg
Nor
way
Sw
eden
Net
herla
nds
UK
Icel
and
Aus
tralia
Hon
g K
ong
Mac
ao
N. Z
eala
nd
Can
ada
20002007
1
1
2 3 4 5 6 7 8 9 10
12
0+10
9
21-12
+5 +3 +5 +14 -3 -5 -4 +610 20
11 12 14 15 19
4 3 5 162
18 6 21 198 7-9 +6 -8 +6 0
6
DOI in detailTaiwan
0
25
50
75
100Mobile pop coverage
Internet$ % of GDP
Mobile$ % of GDP
% HH with fixed
% PC HH
% of HH with InternetMobile per 100
Mobile internet per 100
Internet per 100
Fixed broadband ratio
Mobile broadband ratio
Source: Adapted from FIND, NCC, DGBAS.
7
DOI Asia-Pacific
0.00.10.20.30.40.50.60.70.80.91.0
Mya
nmar
Sol
omon
Laos
Cam
bodi
aP
.N, G
uine
aN
epal
Van
uatu
Bhu
tan
Ban
glad
esh
Pak
ista
nV
ietn
amS
amoa
Indi
aM
ongo
liaIn
done
sia
Sri
Lank
aIra
nP
hilip
pine
sFi
jiTo
nga
Thai
land
Chi
naM
aldi
ves
Mal
aysi
aB
rune
iN
. Zea
land
Aus
tralia
Mac
aoH
ong
Kon
gS
inga
pore
Taiw
anJa
pan
Kor
ea
UsageInfrastructureOpportunity
Low
Medium
High
9
Importance of broadband• “Highspeed broadband, which a few years ago was considered a
luxury is today a necessary part of the industrial, commercial and lifestyle landscapes.” –Government of Malaysia
• “Recognising the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele-medicine, e-governance, entertainment as well as employment generation...”—Government of India
• “Broadband not only plays a critical role in the workings of the economy, it connects consumers, businesses, governments and facilitates social interaction.”—OECD
10
Broadband penetration OECDDecember 2007, per 100 people
0
5
10
15
20
25
30
35
40
Den
mar
kN
ethe
rland
sIc
elan
dN
orw
ayS
witz
erla
ndFi
nlan
dK
orea
Sw
eden
Luxe
mbo
urg
Can
ada
UK
Bel
gium
Fran
ceG
erm
any
US
AA
ustra
liaJa
pan
Taiw
anA
ustri
aN
. Zea
land
Irela
ndS
pain
Italy
Cze
ch R
ep.
Por
tuga
lH
unga
ryG
reec
eP
olan
dS
lova
k R
ep.
Turk
eyM
exic
o
Source: OECD, NCC.
11
Aspects of broadband
• Different aspects of broadband beyond just penetration
• OECD has identified some but not all
• Fixed versus wireless / mobile broadband
Source: OECD.
12
Broadband penetration
• Even among high income economies, significant difference in basic broadband penetration statistic
• Closer inspection reveals some surprises 18
1920212223242526272829303132
N. Z
eala
nd
Taiw
an
Sin
gapo
re
Japa
n
Aus
tralia
Hon
g K
ong
Kor
ea
181920212223242526272829303132
Broadband subscribers per 100 people, 2007
13
Penetration by sector
40
45
50
55
60
65
70
75
80
New
Zea
land
Aus
tralia
Japa
n
Taiw
an
Hon
g K
ong
Sin
gapo
re
Kor
ea
40
45
50
55
60
65
70
75
80
% households with broadband, 2007
Households with Internet
0102030405060708090
100
Sin
gapo
re
Hon
g K
ong
Aus
tralia
New
Zea
land
Japa
n
Taiw
an
Kor
ea
0102030405060708090100
% businesses with broadband, 2007Businesses with Internet
14
Competition• A more competitive
broadband market, including a variety of technologies, tends to result in higher broadband penetration
• Competition can be measured by both technology and operators
0
1000
2000
3000
4000
5000
6000
7000
Taiw
an
Aus
tralia
New
Zea
land
Hon
g K
ong
Sin
gapo
re
Japa
n
Kor
ea
0
1000
2000
3000
4000
5000
6000
7000
Technological HHI, 2007
15
Pricing• Wide variety of plans,
coverage & exceptions / restrictions inhibit ability to compare broadband pricing:– Highest speeds not always
universally available– Data or time volume caps in
Australia, Hong Kong (some plans) and New Zealand
• 8 Mbps download is only comparable plan (with 10 GB download)
• Ongoing promotions, bundled offers, etc. make comparisons difficult
$0
$10
$20
$30
$40
$50
$60
$70
$80
Japa
n
Taiw
an
Kor
ea
Sin
gapo
re
New
Zea
land
Hon
g K
ong
Aus
tralia
$0
$10
$20
$30
$40
$50
$60
$70
$80
One month ADSL, 8 Mbps, 10 GB, 2008
16
Speed• Composite measure of speed
in use desirable but comparable data not available:– Australia: 30% < 512 kbps;
3%> 24 Mbps– Hong Kong: Over 60% of
customers using > 25 Mbps (HKBN)
– Japan: 40% fiber optic– Taiwan: Average download
speed 3.56 Mbps (CHT)
• Fall back on broadband as % of Internet in homes
0.1 1 10 100
NewZealand
Taiwan
Australia
Singapore
HongKong
Japan
Korea
Range of mass market broadband plans, Mbps, incumbent operator, 2008
17
3G Mobile
• 3G mobile technology supports broadband speeds
• Indicators:– 3G subscribers as %
of total mobile subscribers
– 3G subscribers per 100 people
• 3G data cards
0%10%20%30%40%50%60%70%80%90%
100%
Hon
g K
ong
New
Zea
land
Taiw
an
Sin
gapo
re
Aus
tralia
Kor
ea
Japa
n
0%10%20%30%40%50%60%70%80%90%100%
3G mobile as % of total, 2007
18
Coverage• Definitions vary: number of lines upgraded, population
covered or households which could subscribe: – Australia: 81% DSL coverage– Korea: 100% DSL coverage– Japan: 95% households have one or more broadband service;
84% have “ultra-high speed” broadband coverage– Hong Kong: Fiber available to 2/3 of households– New Zealand: 93% DSL coverage– Singapore: Singtel has island wide DSL coverage– Taiwan: “Substantially all installed telephone lines capable of
delivering ADSL services”
19
Usage example: IPTV
World rank Operator
2007 Subscrib
ers000s
Change
06/07
% broadba
nd subscrib
ers IPTV service3 Hanaro 810 305% 22% 5 PCCW 628 25% 51% .8 CHT 394 58% 11%
9Korea Telecom 325
Launch
2007 5%
15 HKBN 128 10%52%
26 SingTel 27
Launch
2007 6% Note: excluding Japan.
20
Broadband index resultsAustralia
Hong Kong Japan Korea
New Zealand
Singapore
TaiwanScore 0.40 0.52 0.71 0.79 0.45 0.67 0.63
Overall rank 7 5 2 1 6 3 4Sector use 7 4 5 1 6 3 2
Competition 6 4 2 1 5 3 7
Price 7 6 1 3 5 4 2
Home speed 5 1 6 1 7 4 3
Mobile 4 7 1 2 6 3 5
Penetration rank 3 2 4 1 7 5 6
22
Broadband divide in Asia-Pacific
0
5
10
15
20
25
30
35
$100 $1,000 $10,000 $100,000
GDP per capita, US$, 2006
Bro
adba
nd s
ubsc
riber
s pe
r 100
pe
ople
, 200
7
Low income
6%
High income
43%
China51%
Distribution of
broadband subscribers,
2007
China61%
High income
19%
Low income
20%
Distribution of fixed
telephone lines, 2007
23
Operator 000s
China Telecom 35,650
China Netcom 19,768
NTT (Japan) 12,960
Korea Telecom 6,516
Softbank (Japan) 5,164
Telstra (Australia) 4,598
CHT (Taiwan) 4,243
Hanaro (Korea) 3,658
KDDI (Japan) 2,135
LG Powercom (Korea) 1,721
Operator 000s %BB
China Mobile 369,339 0%
China Unicom 162,491 0%
Bharti (India) 55,163 0%
DoCoMo (Japan) 53,150 79%
Telkomsel (Indonesia) 47,890 7%
Reliance (India) 40,960 0%
Vodafone (India) 39,865 0%
BSNL (India) 36,810 0%
Mobilink (Pakistan) 30,613 0%
PLDT (Philippines) 30,041 4%
Top broadband providers versus top mobile providers in Asia
Developing countries Source: Adapted from company reports.
Top 10 broadband operators, 2007 Top 10 mobile operators, 2007
24
Internet in Asia developing economies: Primarily wireless-Philippines example
0 200 400 600 800
IndiaHKG
IndonesiaChina
Philippines
SMS per subscriber per
month2007
Voice45%Data
55%
PLDT 2007Mobile revenue
DSL33%
Dial-up29%
Wire-less38%
PLDT 2007Internet
subscribers
• domestic and international remittances• utility bills• insurance premiums• school tuition fees• micro tax payments• electronic loads and pins• online purchases• ferry, airline & train tickets
Source: Adapted from PLDT, Globe.
25
Broadband targets
94 95
9092949698
100
FY05 FY06 FY10
Broadband Zero in Japan: % HH
05
10152025
2005 2007 2010
PlanActual
India BB Policy: BB subscribers (m)
15.5
5075
2007 2008 2010
Actual Plan
Malaysia ICMS Goals: % BB HH
77.1
90
1997 2015
Singapore iN2015: % BB HH
26
Broadband recommendations• Encourage franchising• Certify Customer Premises Equipment & announce
broadband plans to encourage manufacturing of CPEs• Expedite mechanism for spectrum• Streamlining and sharing Rights of Way• Encourage broadband via broadcast technology• Universal Service fund for providing broadband in
underserved areas and to subsidize backhaul charges • Make Multiple Dwelling Unit buildings broadband ready
Adapted from Telecom Regulatory Authority of India
27
Conclusions
• Big broadband divide in Asia region• Numerous barriers including income,
geography, literacy, policy and competition• Competition: intra- and inter-modal and
fixed broadband versus mobile broadband• Mobile and “Internet-like” use in
developing countries • How much broadband is enough?
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