Working Party on Communication Infrastructures and Services Policy
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Organisation for Economic Co-operation and Development DSTI/CDEP/CISP(2017)1/FINAL Unclassified English - Or. English 30 May 2018 DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INNOVATION COMMITTEE ON DIGITAL ECONOMY POLICY Cancels & replaces the same document of 10 April 2018 Working Party on Communication Infrastructures and Services Policy BRIDGING THE DIGITAL RURAL DIVIDE JT03432683 This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ DSTI/CDEP/CISP(2017)1/FINAL 1. Foreword This report was prepared by the Working Party on Communication Infrastructure and Services Policy (WPCISP). This document examines recent policy and technology approaches to bridging the digital divide in rural and remote areas in OECD countries. It includes a summary of common challenges and good practices. This paper was approved and declassified by written procedure by the Committee on Digital Economy Policy in November 2017 and prepared for publication by the OECD Secretariat. This document was drafted by Lorrayne Porciuncula and Sam Paltridge from the OECD Secretariat. Note to Delegations: This document is also available on OECD Digital Economy Papers, No. 265, OECD Publishing, Paris. http://dx.doi.org/10.1787/852bd3b9-en This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. © OECD 2018 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for commercial use and translation rights should be submitted to [email protected]. BRIDGING THE DIGITAL RURAL DIVIDE Unclassified DSTI/CDEP/CISP(2017)1/FINAL │ 3 TABLE OF CONTENTS 1. Foreword ............................................................................................................................................ 2 2. Main Points ........................................................................................................................................ 5 3. Introduction ..................................................................................................................................... 10 4. The Digital Divide ............................................................................................................................ 12 4.1. The rural broadband divide ......................................................................................................... 12 4.2. Assessing the gaps ...................................................................................................................... 14 4.3. Defining broadband speeds ......................................................................................................... 16 4.4. Establishing national targets ....................................................................................................... 17 4.5. Evolving targets for going digital ............................................................................................... 21 5. Policies for bridging the gaps in access to and use of broadband Networks and services in rural and remote areas.................................................................................................................................. 23 5.1. Improving access to broadband .................................................................................................. 23 5.1.1. Ensuring competition in broadband provision ..................................................................... 23 5.1.2. The changing nature of universal service ............................................................................. 23 5.1.3. Setting minimum speeds ...................................................................................................... 25 5.1.4. Competitive tenders .............................................................................................................. 28 5.1.5. Coverage obligations ............................................................................................................ 32 5.1.6. Open access policies ............................................................................................................. 33 5.1.7. Municipal networks .............................................................................................................. 34 5.1.8. Reducing deployment costs .................................................................................................. 37 5.1.9. Funding broadband programmes .......................................................................................... 42 5.1.10. National and rural broadband programs ............................................................................. 47 5.2. Promoting uptake ........................................................................................................................ 54 5.2.1. Affordability ......................................................................................................................... 54 5.2.2. Trust ..................................................................................................................................... 55 5.2.3. Digital literacy ...................................................................................................................... 55 6. Emerging technologies to fill gaps in broadband service ............................................................. 57 6.1. Technological trends ................................................................................................................... 57 6.1.1. Fixed broadband provision ................................................................................................... 57 6.1.2. Wireless broadband provision .............................................................................................. 59 6.1.3. Implications for rural and remote areas ................................................................................ 60 6.2. Technologies on the horizon ....................................................................................................... 64 6.2.1. AT&T’s Project AirGig ....................................................................................................... 64 6.2.2. Google Project Loon ............................................................................................................ 65 6.2.3. Facebook Telecom Infra Project .......................................................................................... 65 6.2.4. Microsoft’s Rural Airband Initiative .................................................................................... 65 6.3. Technologies bridging connectivity gaps in OECD countries .................................................... 66 6.3.1. Australia ............................................................................................................................... 66 6.3.2. Canada .................................................................................................................................. 68 6.3.3. Denmark ............................................................................................................................... 69 6.3.4. Ireland................................................................................................................................... 70 6.3.5. United Kingdom ................................................................................................................... 71 6.3.6. United States ........................................................................................................................ 72 BRIDGING THE DIGITAL RURAL DIVIDE Unclassified 4 │ DSTI/CDEP/CISP(2017)1/FINAL 7. Conclusion ........................................................................................................................................ 74 Notes ..................................................................................................................................................... 75 Bibliography ......................................................................................................................................... 77 Tables Table 1. Ranges of download speeds and services enabled ......................................................... 14 Table 2. National broadband access targets ................................................................................. 18 Table 3. Universal service frameworks and broadband ............................................................... 25 Table 4. Minimum broadband speeds in OECD Countries ......................................................... 27 Table 5. Extending and funding national broadband deployment ............................................... 44 Table 6. National and Rural