An In-Depth Study on the Broadband Infrastructure in Afghanistan and Mongolia

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An In-Depth Study on the Broadband Infrastructure in Afghanistan and Mongolia An In-Depth Study on the Broadband Infrastructure in Afghanistan and Mongolia The secretariat of the Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations and serves as the main economic and social development centre for the United Nations in Asia and the Pacific. Its mandate is to foster cooperation among its 53 members and 9 associate members. It provides the strategic link between global and country-level programmes and issues. It supports Governments of countries in the region in consolidating regional positions and advocates regional approaches to meeting the region’s unique socioeconomic challenges in a globalizing world. The ESCAP secretariat is in Bangkok. Please visit the ESCAP website at http://www.unescap.org for further information. The shaded areas of the map indicate ESCAP members and associate members. An In-Depth Study on the Broadband Infrastructure in Afghanistan and Mongolia © United Nations, 2016 This study has been prepared for ESCAP by Michael Ruddy and Esra Ozdemir, Terabit Consulting. The views expressed herein are those of the authors, and do not necessarily reflect the views of the United Nations. The information contained is based primarily on interviews, published and unpublished data, and presentations by members of the industry. The designations employed and material presented do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. References and maps obtained from external sources might not conform to the United Nations editorial guidelines. Mention of firm names and commercial products does not imply the endorsement of the United Nations. The generous funding support provided by the Republic of Korea and the Russian Federation are gratefully acknowledged. For more information contact: Information and Communications Technology and Disaster Risk Reduction Division United Nations Economic and Social Commission for Asia and the Pacific The United Nations Building Rajadamnern Nok Avenue Bangkok 10200 Thailand Telephone: +66 2 288 1234 Fax: +66 2 288 1000 Email: [email protected] Website: http://www.unescap.org/idd Contents I. Executive Summary .............................................................................................................................................. 1 Table 1: Overview of Broadband Status by Country .............................................................................................. 1 Table 2: Summary and Analysis of International Bandwidth by Country ................................................................ 2 Table 2a: Historical International Bandwidth Demand (Gbps) (International Internet, International Corporate Data and International Voice), 2003-2013 ...................................................................................................................... 3 Table 2b: Forecasted International Bandwidth Demand (Gbps) (International Internet, International Corporate Data and International Voice), 2014-2024 ............................................................................................................. 3 Table 3: Summary and Analysis of International Connectivity by Country ............................................................. 4 Table 4: Summary and Analysis of Domestic Connectivity by Country.................................................................. 5 Table 5: Summary and Analysis of International Capacity Pricing by Country ....................................................... 6 Table 6: Summary and Analysis of Competitiveness of Telecommunications Markets by Country ......................... 7 Table 7: Summary and Analysis of Fixed and Mobile Broadband Infrastructure by Country .................................. 9 Table 8: Summary and Analysis of Typical Monthly Broadband Subscription Pricing by Country ....................... 10 Table 9: Analysis of Cross-Border Connectivity and Identification of Priority Trans-Border Projects ................... 11 Stakeholder Analysis ........................................................................................................................................... 14 II. Country Analysis: Afghanistan .......................................................................................................................... 17 Telecommunications Market Overview ............................................................................................................... 18 Regulation and Government Intervention ............................................................................................................. 19 Fixed Line Telephony Market.............................................................................................................................. 19 Mobile Telephony Market ................................................................................................................................... 19 Internet and Broadband Market ........................................................................................................................... 20 Domestic Network Connectivity in Afghanistan .................................................................................................. 21 International Internet Bandwidth and Capacity Pricing in Afghanistan ................................................................. 22 International Network Connectivity in Afghanistan ............................................................................................. 24 III. Country Analysis: Mongolia .............................................................................................................................. 27 Telecommunications Market Overview ............................................................................................................... 28 Regulation and Government Intervention ............................................................................................................. 28 Fixed Line Telephony Market.............................................................................................................................. 28 Mobile Telephony Market ................................................................................................................................... 29 Internet and Broadband Market ........................................................................................................................... 29 Domestic Network Connectivity in Mongolia ...................................................................................................... 30 International Internet Bandwidth and Capacity Pricing in Mongolia ..................................................................... 31 International Network Connectivity in Mongolia ................................................................................................. 34 I. Executive Summary Between February and April 2015, Terabit Consulting performed a detailed analysis of telecommunications and Internet markets and broadband infrastructure in Afghanistan and Mongolia. The analysis followed three previous studies carried out between 2012 and 2014 covering South and South-West Asia, North and Central Asia, and South-East Asia, for a total of 27 countries across the continent. Table 1: Overview of Broadband Status by Country Annual 1 Mbps GDP Int’l. Fixed and Broadband per Band- Domesti Competitiv Mobile Subscription Capita Int’l. IP width c e-ness of Broad- + , YE Connect- Transit per Connect- Telecom band Installation 2014 ivity Price Capita ivity Market Infra- as % of (PPP, (Kbps) structure Nominal USD) GDP per Capita Afghanista Somewhat Very $1,900 0.5 Moderate Moderate Expensive Limited n Competitive Expensive $12,00 Very Mongolia 10.3 Moderate Moderate Moderate Competitive Limited 0 Expensive Table 2: Summary and Analysis of International Bandwidth by Country Int’l. 10-Year Internet CAGR International Internet Bandwidth (YE 2013) Bandwidth Evaluation (2003- per Capita 2013) (Kbps) 15 Gbps – The Ministry of Communications and Information Technology (MCIT) reported that the country’s international Internet bandwidth increased from 8 Gbps in 2013 to 15 Gbps in 2015. Afghanistan 81% 0.5 Very Weak According to the MCIT, “since there is no single gateway in Afghanistan, every Internet service provider is using its own gateway.” 30 Gbps – The Communications Regulatory Commission (CRC) reported that Mongolia’s international bandwidth was 28.270 Gbps as of mid-2014. By the end of 2014 it was estimated to have increased to 30 Gbps. Bandwidth grew 24-fold between 2008 and 2011, when it increased from 1.248 Gbps to 30.004 Gbps, according to the CRC; however, the regulator reported that Mongolia 101% 10.3 Moderate bandwidth decreased in 2012 and by mid-2014 it still had not returned to the level of 2011, leading some sources to speculate that there may have been reporting issues in the collection of the bandwidth data, since no other market had seen its 2014 international bandwidth decrease from 2011 levels. An In-Depth Study on the Broadband Infrastructure in Afghanistan and Mongolia 2 Table 2a: Historical International Bandwidth Demand (Gbps) (International Internet, International Corporate Data and International Voice), 2003-2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Afghanistan 0.1 0.1 0.4
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