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Broadband for Development in the ESCWA Region Enhancing Access to ICT Services in a Global Knowledge Society

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Broadband for Development in the ESCWA Region Enhancing Access to ICT Services in a Global Knowledge Society Broadband for Development in the ESCWA Region Enhancing Access to ICT Services in a Global Knowledge Society Broadband for Development in the ESCWA Region Enhancing Access to ICT Services in a Global Knowledge Society Acknowledgement and Disclaimer This publication was jointly funded by UN–ESCWA and Alcatel–Lucent, with additional support for final compilation and reproduction from the United Nations Development Account proj- ect “Capacity building for ICT policymaking”. The report was super- vised by Mansour Farah, Team Leader for ICT Policies, ESCWA, and Souheil Marine, Digital Bridge Manager, Alcatel–Lucent, who defined the initial project, jointly led the publication team, contributed to the drafting of various chapters, and assured the overall quali- ty of the publication. In preparing this publication, Ayman El–Sherbiny, First Informa- tion Technology Officer in ESCWA, contributed to the drafting of var- ious chapters and acted as a focal point, defining and coordinat- ing substantive assignments between national and regional consult- ants and the publication team. Imad Sabouni, ESCWA consultant, carried out the regional analysis of case studies, compiled various contributions, and drafted core chapters. Eric Delannoy, Alcatel–Lucent consultant, also contributed to the drafting of vari- ous chapters and provided technical input. Thanks are due to Mohamed Abdel–Wahab and Mohammed Al–Wahaibi, ESCWA consultants, for their valuable contributions of case studies on Egypt and Oman respectively, and also to Habib Torbey, CEO of Globalcom Data Services, for his input on Lebanon. We would like to express our sincere appreciation to Abdulilah Dewachi, Regional Adviser on ICT, ESCWA, and to Samir Aïta, ESCWA consultant, for their review and valuable comments lead- ing to enhancements to the final drafts of the publication. This document has been reproduced in the form in which it was received, without formal editing. The opinions expressed are those of the authors and do not necessarily reflect the views of ESCWA. Copyright © 2007 ESCWA / Alcatel–Lucent All rights reserved Illustrations and layout by Atelier Antoine Maiffret - France (www.maiffret.net) Printed in Lebanon Cover photos: © Alcatel–Lucent and © ESCWA Table of Contents Foreword 4 Executive Summary 5 Introduction 8 Chapter 1: Overview 10 Chapter 2: Broadband Market Take-Up in the ESCWA Region 18 Chapter 3: Broadband Demand & Supply Patterns in the ESCWA Region 25 Chapter 4: Selected Broadband Deployment Case Studies 40 Chapter 5: Factors Affecting Broadband Demand in the ESCWA Region 47 Chapter 6: Going Forward 61 Annex 1: Background Information on the ESCWA Region 65 Annex 2: Background Information on Alcatel-Lucent 68 Annex 3: Broadband Technologies 70 Glossary of Terms 77 Bibliography 80 Foreword Broadband is used today by almost 250 million people worldwide. It is revolutionizing the way people communicate, seek knowledge, access public services, entertain, and do busi- ness. The new broadband revolution – wireline or wireless – is making changes to the telecom- munications landscape which could be as important as those made by the advent of the Inter- net and mobile telephony, yet with an even greater impact on content development and dis- semination, thus leading to accelerated socioeconomic development. Broadband access is also drastically changing the economic model for operators. Bound- aries are becoming blurred between categories of service providers that until now were sep- arate, namely telephony operators, Internet service providers, and television content providers. Broadband will trigger the creation of multi–service providers who will offer their servic- es to subscribers any place, any time and through a variety of devices. This report highlights the vast development potential in the ESCWA region as it moves towards the broadband revolution, with examples of concrete business cases focused on selected coun- tries. It also provides an assessment of factors that hinder the deployment and spread of broadband, while proposing concrete actions to guide ESCWA member countries in their quest for enhanced infrastructure to build the knowledge society. It is meant to help stake- holders in the development of broadband in the ESCWA region, including governments, reg- ulators, operators, service providers and civil society at large. We are pleased to present this publication, produced by ESCWA’s Information and Commu- nication Technology Division and the Alcatel–Lucent Digital Bridge Initiative Program, as a joint contribution to the development of broadband in the ESCWA region for the benefit of socioeconomic development. It is the result of collaborative efforts between a worldwide leader in telecommunications, particularly in broadband equipment manufacturing, and a United Nations organization in charge of regional economic and social development. It cap- italizes on the two organizations’ complementary expertise and objectives, and is aimed at allowing stakeholders to benefit from the development of broadband in the ESCWA region. In this regard, we wish to pay tribute to Ms. Mervat Tallawy, Executive Secretary of ESCWA, for her commitment and encouragement. Finally, this collaboration is an illustration of the multi–stakeholder approach advocated by the outcome of the World Summit on the Information Society. Our respective organizations are committed to contributing to the implementation of the Geneva Plan of Action and the Tunis Agenda, in order to reduce the digital divide and bring the benefits of information and communication technologies to all. Yousef Nusseir Thierry Albrand Chief, ICT Division Vice–President, Digital Bridge UN–ESCWA Alcatel–Lucent 4 Broadband for Development in the ESCWA Region Executive Summary his report is a joint endeavor by Alca- icant benefits to individuals and communities, tel–Lucent and ESCWA.1 It is intended government institutions and businesses. Tto build a regional framework for broadband deployment in the ESCWA region, Since the late 1990s, broadband has wit- as a contribution to the outcome of the nessed remarkable growth around the World Summit on the Information Society world. The global number of broadband (WSIS), and as part of ESCWA’s regional Plan subscribers in the world was estimated at of Action (RPoA) for building the information about 200 million in 2005, and 250 million society in Western Asia. This report also con- in 2006, representing 35–40% of all Inter- tributes to Alcatel–Lucent’s commitment to net accounts. The regional distribution of ESCWA’s regional plan of action, and to broadband connectivity is very unbalanced. Alcatel–Lucent’s overall Digital Bridge Initia- While Europe, North America and Asia tive program.2 Pacific represented 30%, 24% and 40% respectively of the total broadband share in Furthermore, it provides guidelines for ICT the second quarter of 2006, the Middle East policymakers with respect to infrastructure and Africa region scored only 1%, with a development at the national and regional lev- total number of broadband subscribers not els, as requested by the “Workshop on infor- exceeding 2.5 million. mation and communication technology pol- icymaking in ESCWA member countries”,3 It is shown that there is a strong correlation held in Beirut from 2 to 4 May 2006, within between GDP per capita and broadband the framework of the United Nations Devel- penetration, as well as between GDP per capi- opment Account project on “Capacity build- ta and the Digital Opportunity Index (DOI).4 ing for ICT Policymaking”. Three representative countries from the ESCWA region are highlighted; showing that The approach adopted in this report is broadband deployment in the region is three–dimensional. The first dimension is an below its expected level. The significant 1 For a profile of ESCWA and analysis of the status of broadband deploy- growth of mobile penetration has actually its ICT–related activities, please refer to Annex 1. ment in the ESCWA region, substantiated by weakened the need for further developing the 2 For a profile of Alcatel– specific country case studies. The second is fixed infrastructure, and the investment in Lucent and its Digital Bridge Initiative program, please an assessment of lessons learnt from inter- deploying copper has slowed down. A fixed refer to Annex 2. national experience, focusing on what has line, however, is still necessary for DSL 3 ESCWA, 2006, Workshop on Capacity building for ICT made broadband a success in other countries. access.5 Policymaking, Report, 12 The third dimension consists of an evaluation June 2006, (E/ESCWA/ ICTD/2006/2). of technologies and business cases that may The report provides an exhaustive analysis 4 The Digital Opportunity support broadband for socioeconomic devel- of broadband indicators in the ESCWA coun- Index is a modular, develop- ment–orientated, e-index opment in the region. tries. It also discusses the market structure based on internationally and existence of any national broadband pol- agreed ICT indicators, a tool for benchmarking the most Although the definition of broadband might icy or initiative in the different countries, and important indicators for vary from one country to another, it is com- the very important issue of international con- measuring the Information Society, compiled for 180 monly accepted that it is a high-speed, nectivity. As an overall assessment, broad- economies for 2004/ 2005. always-on (as opposed to dial-up) connection band penetration in the ESCWA countries is It is based on 11 core ICT
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