Stimulating Universal Access to Broadband in ABBMN Countries

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


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



bandw idth




Internet usersFixed



Tertiary enrolment

Secondary enrolment

Literacy

2007 2008


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



bandw idth




Internet usersFixed



Tertiary enrolment

Secondary enrolment

Literacy

2007 2008

Connectin

g S

chools w

ith LC

CD


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



bandw idth




Internet usersFixed



Tertiary enrolment

Secondary enrolment

Literacy

2007 2008


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



bandw idth




Internet usersFixed



Tertiary enrolment

Secondary enrolment

Literacy

2007 2008


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


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

24

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


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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Stimulating Universal Access to Broadband in ABBMN Countries