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Broadband Infrastructure in South Asia and West Asia

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Broadband Infrastructure in South Asia and West Asia Broadband Infrastructure in South Asia and West Asia Markets, Infrastructure, and Policy Options for Enhancing Cross-Border Connectivity Michael Ruddy Director of International Research Terabit Consulting www.terabitconsulting.com Part 1: Background and Methodology www.terabitconsulting.com Completed ASEAN-9 Study Phase I: Between November of 2012 and August of 2013, Terabit Consulting completed a study of 9 countries in Southeast Asia, as well as adjoining regions: – Cambodia – Indonesia – Lao PDR – Malaysia – Myanmar – Philippines – Singapore – Thailand – Vietnam – Yunnan Province, China www.terabitconsulting.com Completed North & Central Asia Study Phase II: Between June and November 2013, Terabit Consulting completed a study of 7 countries in North and Central Asia – Azerbaijan – Kazakhstan – Kyrgyz Republic – Russian Fed. – Tajikistan – Turkmenistan – Uzbekistan www.terabitconsulting.com Current Study: South Asia and West Asia Between April and October 2014 (with analysis ongoing), Terabit Consulting performed a detailed analysis of broadband infrastructure and markets in 9 strategic markets in South Asia & West Asia: – Bangladesh – Bhutan – Iran – India – Maldives – Nepal – Sri Lanka – Turkey www.terabitconsulting.com Scope (cont’d.) • The data and analysis for each country included: Telecommunications market overview and analysis of competitiveness Regulation and government intervention Fixed-line telephony market Mobile telephony market Internet and broadband market Consumer broadband pricing Evaluation of domestic network connectivity International Internet bandwidth International capacity pricing Historical and forecasted total international bandwidth Evaluation of international network connectivity including terrestrial fiber, undersea fiber, and satellite Evaluation of trans-border network development and identification of missing links Identification of key highway and rail projects www.terabitconsulting.com Sources of Data • Terabit Consulting has completed dozens of demand studies for submarine and terrestrial fiber networks worldwide – Constant contact with operators, ISPs, and other stakeholders • Terabit Consulting’s published reports include: – The Undersea Cable Report (1,500+ pages) – International Telecommunications Infrastructure Analysis (1,000+ pages) • Terabit Consulting’s data and intelligence covers infrastructure, demand, traffic flows, pricing, and market share www.terabitconsulting.com Part 2: State of South and West Asia Bandwidth and Broadband Markets www.terabitconsulting.com Overview of Broadband Status Annual 1 Mbps GDP per Int’l. Fixed and Competitive- Broadband Capita, YE Band- Int’l. Domestic Mobile IP Transit ness of Subscription + 2012 width per Connect- Connect- Broadband Price Telecom Installation as % (PPP, Capita ivity ivity Infra- Market of Nominal GDP USD) (Kbps) structure per Capita Somewhat Bangladesh $2,200 0.3 Weak Moderate Expensive Limited Very Expensive Competitive Less Bhutan $7,000 7.6 Weak Limited Expensive Limited Reasonable Competitive India $4,000 1.0 Excellent Moderate Moderate Competitive Limited Reasonable Islamic Less Somewhat Republic of $14,300 1.5 Excellent Limited Expensive Limited Competitive Expensive Iran Less Maldives $10,200 24.0 Sufficient Moderate Expensive Limited Reasonable Competitive Less Nepal $1,600 0.7 Weak Limited Expensive Limited Very Expensive Competitive Somewhat Somewhat Somewhat Pakistan $3,800 1.7 Moderate Expensive Limited Weak Competitive Expensive Less Sri Lanka $8,100 2.2 Sufficient Moderate Expensive Limited Affordable Competitive Very Less Extremely Turkey $16,900 30.7 Sufficient Moderate Limited Reasonable Competitive Affordable www.terabitconsulting.com International Internet Bandwidth, YE13 Turkey: 2.3 Tbps Iran: 113 Gbps Pakistan: 300 Gbps Nepal: 20 Gbps Bhutan: 5.7 Gbps Bangladesh: 50 Gbps India 1.2 Tbps Sri Lanka: 45 Gbps Maldives: 8 Gbps www.terabitconsulting.com Int’l. Internet Bandwidth per Capita (Kbps) 35 30.7 30 24.0 25 20 15 1 Kbps or Less: 7.0 10 Serious Obstacle to Development 2.2 5 1.7 1.5 1.0 0.7 0.3 0 • Difference between Turkey and Bangladesh: 100x • Average in Western Europe: 99 Kbps www.terabitconsulting.com International Fiber Connectivity • The Study identified and analyzed 40 trans-border terrestrial fiber optic links in the region – Across borders within the region and at the edge of the region (e.g. to China, Mynamar, Afghanistan, Iraq, and Eastern Europe) • Some transborder links form segments of multinational networks – Trans Asia-Europe (TAE) – Europe-Persia Express Gateway (EPEG) – South Asian Sub-regional Economic Cooperation (SASEC) Information Highway • The analysis also covered 28 submarine cable systems – Including interregional systems such as the Sea-Me-We and FLAG cables, as well as regional submarine cables www.terabitconsulting.com Our Gracious Hosts: Bhutan • Two terrestrial cables to India – Phuentsholing to Jaigaon, India (2007) – Galephu to Assam, India (2011) – Both fiber paths converge at Siliguri, India • Druknet/BT 5.3 Gbps with connectivity via LINX and HKIX – Third international POP in Singapore in 2014 • Tashi Infocomm: 370 Mbps • South Asia Subregional Economic Cooperation (SASEC) Information Highway network will connect Bangladesh, India, Bhutan, and Nepal – Included installation of new fiber link from Thimphu to Phuentsholing and Gelephu (2014) Fragile infrastructure reliant upon India, vulnerable to multiple bottlenecks including Siliguri, Mumbai, and Egyptian submarine cables www.terabitconsulting.com Bangladesh: Int’l. Infrastructure • Heavily dependent upon Sea-Me-We-4 cable – Operated by BSCCL; 200 Gbps is currently 20% used • Six ITC operators licensed to connect terrestrially to India – BTCL and BSNL networks were interconnected in 2010 – Bharti Airtel cable implemented in July, 2013 • Projects under development include Sea-Me-We-5 and a terrestrial link to MPT Myanmar Weak international infrastructure reliant upon Sea-Me- We-4 and terrestrial links to India, and vulnerable to submarine cable disruptions in Egypt. www.terabitconsulting.com India: Int’l. Infrastructure • Eleven interregional submarine cables – FLAG Europe-Asia (FEA) (1997), Sea-Me-We-3 (1999), Sea-Me-We-4 (2005) – SAFE (2002) and Seacom (2009) – i2i (2002) and TGN-TIC (2004) – Falcon (2006), I-Me-We (2010), Europe-India Gateway (2011), and the Gulf Bridge International /MENA network (2012) • International gateway share: Tata 39%, Bharti 30%, Reliance 26%, Sify 5% • Bharat Lanka Cable System and India-Maldives • Terrestrial cables: – To China: Reliance (2009), Bharti Airtel/China Telecom (2010), Tata Communications (2010) – India-Myanmar (2010) – Multiple links to Bangladesh, Bhutan, and Nepal – India-Pakistan cable between Amritsar and Lahore has been installed, but security agencies on both sides of the border are refusing its use for non-voice traffic Although India benefits from excellent international connectivity, it is still extremely vulnerable to submarine cable events in Egypt and the Strait of Malacca. Only improved, robust pan-regional terrestrial connectivity can provide a viable alternative. www.terabitconsulting.com Iran: Int’l. Infrastructure • Terrestrial connectivity to all neighbors – As of 2012, trans-border capacity was as follows: Armenia 1.4 Gbps, Azerbaijan 1.2 Gbps, Turkey 600 Mbps, Turkmenistan 600 Mbps, Iraq 300 Mbps, and Afghanistan 200 Mbps (Pakistani link reportedly under implementation) – Telecommunications Infrastructure Company of Iran (TCI) has set the following targets for 2017: Azerbaijan 4.3 Tbps, Iraq 1.2 Tbps, Turkey 1.1 Tbps, Armenia 930 Gbps, Turkmenistan 600 Gbps, Afghanistan 430 Gbps, and Pakistan 400 Gbps. • Pan-regional terrestrial networks: Trans Asia-Europe (TAE) and Europe- Persia Express Gateway (EPEG) • Submarine cables include Falcon, Gulf Bridge International (GBI), Pishgaman Oman-Iran (POI), EPEG Iran-Oman, UAE-Iran, and Kuwait- Iran. Iran’s physicial connectivity within the region is excellent, positioning it as a viable and competitive transit hub for traffic from South Asia, the Middle East, and Central Asia, as well as Europe-Asia demand. However, activated bandwidth levels must be significantly increased. www.terabitconsulting.com Maldives: Int’l. Infrastructure • Two submarine cables connecting to India and Sri Lanka – Dhiraagu submarine cable (in partnership with SLT) (2006) – WARF Telecom Maldives-India-Sri Lanka (Wataniya/Ooredoo with Lanka Bell & Reliance) (2007/2008) Although every country should optimally have more than two international outlets, Maldives’ existing infrastructure is advanced for a country of its size, and enables very high per-capita bandwidth www.terabitconsulting.com Nepal: Int’l. Infrastructure • Terrestrial interconnections to four Indian networks – Reliance, BSNL, and Airtel via the Birgunj-Raxaul and Birtatnagar-Jogbani border crossings – Tata links to the network of UTL via Birgunj-Raxaul and Bhairahwa-Sunauli • SASEC Information Highway and Nepal-China link under implementation Nepal’s international infrastructure is currently very weak, leaving it reliant almost exclusively upon India www.terabitconsulting.com Pakistan: Int’l. Infrastructure • Incumbent operator PTCL operates three submarine cables and controls about 60% of international traffic – Sea-Me-We-3 (1999), Sea-Me-We-4 (2005), I-Me-We (2010) • Transworld Associates operates the TW-1 submarine cable and handles most of the remaining 40% of international traffic – System connects to Oman and UAE • Relatively weak terrestrial connectivity
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