Achieving Digital Inclusion for All
THE STATE OF BROADBAND 2012: ACHIEVING DIGITAL INCLUSION FOR ALL
A REPORT BY THE BROADBAND COMMISSION SEPTEMBER 2012 ABOUT THE COMMISSION
The Broadband Commission for Digital Development was established by the International Telecommunication Union (ITU) and the United Nations Educational, Scientific and Cultural Organization (UNESCO) in response to UN Secretary-General Ban Ki-Moon’s call to step up efforts to meet the Millennium Development Goals (MDGs). Launched in May 2010, the Commission comprises government leaders from around the world and the top- level representatives and leaders from relevant industries and international agencies and organizations concerned with development.
The Broadband Commission embraces a range of different perspectives in a multi-stakeholder approach to promoting the roll-out of broadband, and provides a fresh approach to UN and business engagement. To date, the Commission has published a number of high-level policy reports, as well as a number of best practices and case studies. This report is published by the Commission on the occasion of the 2012 Meeting of the United Nations General Assembly in New York.
More information about the Commission is available at: www.broadbandcommission.org INCLUSION FOR ALL INCLUSIONFORALL ACHIEVING DIGITAL BROADBAND 2012: THE STATE OF SEPTEMBER 2012 A REPORT BYTHEBROADBANDCOMMISSION
Chapter ACKNOWLEDGEMENTS
This Report has been written collaboratively, drawing on insights and rich contributions from a range of Commissioners and their organizations. It has been compiled and edited by the chief editor and co-author, Phillippa Biggs of ITU. Antonio García Zaballos of the Inter-American Development Bank (IDB) contributed Chapter 7 and part of Chapter 4. Design concepts were developed by Ahone Njume-Ebong and Maria Candusso of ITU, with support from Simon de Nicola. Youlia Lozanova, Gemma Newbery, Anna Polomska and Nancy Sundberg provided regulatory analysis of National Broadband Plans. Esperanza Magpantay, Susan Teltscher, Piers Letcher and Ivan Vallejo provided statistical insights and data. Preparation of this report has been overseen by Doreen Bogdan-Martin, with administrative support from Venus Shahna-Ekman.
We are indebted to the contributors who have made this report possible. Contributors are accredited under their contribution. We wish to thank the following people for their kind review and comments (listed in alphabetical order of institution, followed by alphabetical order of surname):
Guillermo Alarcon, Florian Damas, Mirela Doicu, Florence Gaudry-Perkins, Gabrielle Gauthey, Revital Marom and André Mérigoux (Alcatel Lucent); Judi Bird, Richard Desmond, Catherine Higgins, Peter Higgins, E. O’Shea, Joseph McCarroll, Michael Rolfe and Andrew Scarvell (the Australian Government); John Garrity (Cisco); Mikael Halen, Heather Johnson, Paul Landers and Elaine Weidman (Ericsson); Alison Birkett, Fabio Nasarre and Balazs Zorenyi (European Commission); Narda Jones, Margaret Lancaster, Richard Lerner, Roxanne McElvane, Julie Saulnier and Emily Talaga (the Federal Communications Commission of the United States); Ivan Huang (Huawei); Dr. Esteban Pacha Vicente (IMSO); Melanie Yip (Infocomm Development Authority of Singapore); Christoph Legutko, Carlos Martinez, Glenn Olson, Peter Pitsch, Rakesh Puvvada and John Roman (Intel); Antonio García Zaballos (Inter- American Development Bank); Renata Brazil-David, Patrick Masambu and José Toscano (ITSO); Jose María Diaz Batanero, Paul Conneally, Gary Fowlie, Toby Johnson, Lisa Kreuzenbeck, Piers Letcher, Youlia Lozanova, Gemma Newbery, Sarah Parkes, Susan Schorr, Susan Teltscher and Ivan Vallejo (ITU); Paul Garrett and Paul Mitchell (Microsoft); Irena Posin (Government of Serbia); Dr. Saad Dhafer Al Qahtani (STC); Carlos Helú Slim (the Slim Foundation); the Telefonica team; Indrajit Banerjee, Janis Karklins, Irmgarda Kasinskaite, Fengchun Miao, Zeynep Varoglu and the UNESCO team (UNESCO); Ali Jazairy, Michele Woods and Victor Vazquez-Lopez (WIPO).
This report was externally peer-reviewed by Dr. Tim Kelly (World Bank), Michael Kende (Analysys Mason) and Michael Minges (consultant), to whom we are deeply indebted. We are especially grateful to Florence Gaudry-Perkins of Alcatel Lucent, Margaret Lancaster of U.S. Federal Communications Commission, Paul Mitchell of Microsoft and Carlos Helú Slim of the Slim Foundation for their dedicated reviews of this report. List ofAcronyms andAbbreviations Annex 8: Annex 7: Annex 6: Annex 5: Annex 4: Annex 3: Annex 2: Annex 1: LIST OFANNEXES 8. Conclusions 7. 6. 5. 4. 3. Broadband forDrivingDevelopmentandAchievingthe 2. 1. CONTENTS Broadband 4.4 4.3 4.2 4.1 Policy Leadership Millennium DevelopmentGoals Introduction Policy RecommendationstoMaximizetheImpactof Multilingual ContentasaDriverofDemand Achieving DigitalInclusionforall:InvestinginInfrastructure Evaluating GlobalGrowth inBroadband: theNeedfor Introducing ourFuture BuiltonBroadband Target 4:Gettingpeopleonline Target 3:Connectinghomestobroadband Target 2:Makingbroadband affordable Target 1:Makingbroadband policyuniversal Target 4–Percentage ofIndividualsusingtheInternet, Target 4–Percentage ofIndividualsusingtheInternet, Target 3–Percentage ofHouseholdswithInternet, FixedBroadband Penetration,Worldwide, 2011 (ITU) ImpactofBroadband onVarious Economies Target 4–Percentage ofIndividualsusingtheInternet, Mobile Broadband Penetration, Worldwide, 2011(ITU) Examples ofkeyCountrieswiththe“ReachingThird Developing Countries(ITU) LDCs (ITU) Worldwide, 2011(ITU) Developing Countries,2011(ITU) Billion” program (Intel)
88 66
34 93 91 90 86 84 82 80 76 43 42 37 20 06 04 74 60 46 44 1
Chapter LIST OF FEATURED INSIGHTS
Featured Insight 1: How Broadband is Changing our Society (Carlos Slim, President, Slim Foundation) Featured Insight 2: Broadband for Private Sector Development (Dr. Supachai Panitchpakdi, Secretary-General, UNCTAD) Featured Insight 3: Enabling Sustainable, Economic Well-being through Mobile Technology (Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Ltd) Featured Insight 4: Broadband for Improving the Lives of Women – and their Families (H.E. Ms. Jasna Matic, Government of the Rep. of Serbia) Featured Insight 5: Broadband and m-Learning (Alcatel Lucent) Featured Insight 6: Integrating ICT into Education – the Millennium Village Project (Ericsson and The Earth Institute) Featured Insight 7: E-health in China (Huawei) Featured Insight 8: A Talent for Innovation – Why Broadband is the Question and the Response (Professor Bruno Lanvin, Executive Director, INSEAD eLab) Featured Insight 9: The Trans-Eurasian Information Super Highway Project (H.E. Professor Dr. Abbasov, Minister of Communications and Information Technologies of the Government of the Republic of Azerbaijan). Featured Insight 10: The Need for Policy Leadership (Dr. Robert Pepper, Cisco) Featured Insight 11: Designing National Broadband Plans (Inter-American Development Bank) Featured Insight 12: U.S. Executive Order to “Dig Once” (U.S. Federal Communications Commission) Featured Insight 13: Australia’s National Digital Economy Strategy and National Broadband Network (Senator the Hon. Stephen Conroy, Minister for Broadband, Communications & the Digital Economy, Government of Australia) Featured Insight 14: Open Access in the Digital Economy (ITU) Featured Insight 15: The Importance of Small Cells for Wireless Broadband (Alcatel Lucent) Featured Insight 16: The Role of Satellite in Connecting the Next Billion (Mr. José Manuel Do Rosario Toscano, Director General, International Telecommunications Satellite Organization, ITSO) Featured Insight 17: How Broadband Satellite-Based Services will contribute to Meeting the Global Broadband Challenge (Dr. Esteban Pacha, Director General, International Mobile Satellite Organization, IMSO) Featured Insight 18: Reaching the Third Billion – Bringing the Prepaid Miracle to Broadband (John Davies, Vice-President, Intel) Featured Insight 19: Broadband for Empowering Women (H.E. Ms. Jasna Matic, Government of the Rep. of Serbia) Featured Insight 20: The Relationship between Local Content and Internet Development (UNESCO, OECD and ISOC) Featured Insight 21: Internationalized Domain Names (UNESCO) Featured Insight 22: Preparing for Mobile Broadband (World Bank) Featured Insight 23: Keeping an Eye on Quality of Service Standards (Leong Keng Thai, Deputy Chief Executive/Director-General (Telecoms and Post), Infocomm Development Authority of Singapore) Featured Insight 24: Intellectual Property (IP) and Broadband (Mr. Francis Gurry, Director General, World Intellectual Property Organization, WIPO)
2 LIST OF FIGURES
Figure 1: The Structure of this Report (Broadband Commission) Figure 2: Introducing our Broadband Future (various; ITU, Akamai, Twitter, Global Web Index) Figure 3: Smartphones as Portals to the Online World (ITU) Figure 4: Growth in Broadband Worldwide, 2001-2011 (ITU) Figure 5: Global Broadband Subscriptions, end 2011 (ITU, Point Topic) Figure 6: Policy Leadership in Broadband (ITU) Figure 7: Targets set by National Broadband Plans (ITU) Figure 8: Fixed-broadband sub-basket for Developing Countries, 2011 (ITU) Figure 9: Proportion of households with Internet access in Developing Countries, 2002-2015 (ITU) Figure 10: Internet User Penetration, 2000-2015 (ITU) Figure 11: Market Analysis for Broadband Provision (IDB) Figure 12: Functionality & User Experience (Intel) Figure 13: Top Ten Languages on the Internet (Internet World Stats) Figure 14: The Web of Many Languages, mid-2012 (ITU) Figure 15: Converged Regulation? The Mandates of Regulators, 2010 (ITU)
LIST OF TABLES
Table 1: Summary Statistics for High-Speed Connectivity (ITU) Table 2: Broadband and the MDGs (ITU) Table 3: Investing in Different Network Layers (ITU, Alcatel Lucent)
LIST OF BOXES
Box 1: Our Mobile High-speed Future (ITU) Box 2: The Device Wars (Ericsson and Intel) Box 3: With 6 Billion Mobile Subscriptions, Have We Cracked Universal Access? (ITU) Box 4: Practical Uses of Mobile Communications in Low-income Countries (ITU)
3 INTRODUCTION
High-speed affordable broadband importance of broadband networks, connectivity to the Internet is services, and applications for essential to modern society, offering generating economic growth and widely recognized economic and achieving social progress. social benefits (Annex 1). The It has been written collaboratively, Broadband Commission for Digital drawing on insightful and thought- Development promotes the adoption provoking contributions from our of broadband-friendly practices and leading array of Commissioners and policies for all, so everyone can take their organizations, foremost in their advantage of the benefits offered by fields. broadband. 1 This Report is structured around With this Report, the Broadband four main themes which can Commission expands awareness help us to realize the potential of and understanding of the broadband:
Figure 1: The Structure of this Report
The Need for Policy Leadership (Chapter 4)
Multilingual Our Future Investing Content as a Built on in Demand Driver Broadband Infrastructure (Chapter 6) (Chapter 2) (Chapter 5)
Broadband for Development & Achieving the MDGs (Chapter 3) 4 Chapter 1
The extension of broadband to achieve the Commission’s infrastructure, services and target for household penetration. applications is challenging, However, additional growth in especially in the current economic access is needed to achieve the climate – this Report explores targets for individual Internet user some of the technical, policy and penetration. Smartphones and business decisions involved. It mobile broadband may provide the tracks countries’ progress in the much-needed impetus to achieve Commission’s four targets anounced this extra growth. at the Broadband Leadership Summit in October 2011 for: making The Commission hopes that broadband policy universal; making this Report will inform and guide broadband affordable; connecting international broadband policy homes to broadband; and bringing discussions and support the people online. continued expansion of the benefits of broadband globally. The recent The Report recognizes a clear need UN Rio+20 Conference advancing for policy leadership to establish a the Sustainable Development strong vision among stakeholders Goals (SDGs) recognized that “it is and prioritize the deployment of essential to work toward improved broadband at the national level. access to ICT, especially broadband A growing number of countries networks and services, and bridge now have a national broadband the digital divide, recognizing plan, policy or strategy in place, the contribution of international with some 119 countries having cooperation in this regard” (Rio+20 a policy in place by mid-2012. Outcome Documents). For then, Broadband is also becoming broadband can deliver digital more affordable around the world, inclusion for all and continue although it remains out of reach to transform policy, social, and in many countries. Worldwide, development outcomes around countries are broadly on-track the world.
5 INTRODUCING OUR FUTURE BUILT ON BROADBAND
The Internet is changing. From By 2020, the number of connected narrowband to broadband, from devices may potentially outnumber kilobits to Gigabits, from connected connected people by six to one people to connected things – our (Figure 2b), transforming our networked world is changing in concept of the Internet, and society, speed, size, scale, and scope. Our forever (Featured Insight 1). ultra-connected future will build on converged Next-Generation Today’s Internet economy is large Networks (NGN), while embracing and growing fast by every measure. broader concepts of embedded In 2012, the Boston Consulting intelligence, automated Machine Group estimated the size of the 2 to Machine (M2M) traffic, and the Internet economy in the G20 ‘Internet of Things’. countries at around US$ 2.3 trillion or 4.1% of GDP in 2010; by 2016, In our future networked world, we this could nearly double to US$ shall enjoy high-speed connectivity 4.2 trillion2. In 2011, McKinsey on the move, roaming seamlessly estimated that the Internet accounts between networks, wherever we for 3.4% of total GDP and one fifth go – anywhere, anytime, via any of all growth in GDP for the G8 device. Today, the stellar growth countries plus five major economies of mobile means that many people (Rep. of Korea, Sweden, Brazil, now access the Internet via a mobile China, and India – McKinsey Global device (Figure 2a). Worldwide, Institute, 20113). Taking into account mobile phone subscriptions the spillover effects of broadband exceeded 6 billion in early 2012, could boost these estimates further, with three-quarters of those as broadband connectivity is also subscriptions in the developing argued to impact positively labor world (ITU, 2012). As the price of productivity (e.g. Booz & Company, handsets falls and their functionality 20094) and job creation (e.g. increases, soon the vast majority Ericsson, Arthur D. Little, 20125, of people on the planet will hold Shapiro & Hassett, 20126). in their hand a device with higher processing power than the most powerful computers from the 1980s (World Bank, 20121). In 2011, the number of networked devices surpassed the global population.
6 Chapter 2
Figure 2: Introducing our Broadband Future
Figure 2a: Mobile (at least 4.0 for Users) Mobile PCs and tablets The networks may or may not 3.5 Smartphones be mobile – but the users and devices definitely are. 3.0 Source: Ericsson Traffic & Market 2.5 Report 2012.
2.0
1.5 Subscriptions (billions) 1.0
0.5
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
*Smartphone forecasts from 2011 onwards
25 Mobile broadband Figure 2b: Talking Things & Talking People 20 Mobile subscriptions The number of networked devices overtook the total global Total networked devices population in 2011. 15 Source: ITU. Note: “Total networked devices” refer to 10 all SIM cards and M2M connections.
Total number (billions) Total 5
0 2011 2015 2020
7 Figure 2c: High-speed (at least for some)
Chapter 2 Countries with % connections to Akamai > 5 Mbps, shown on a sliding scale with light blue showing 100%.
Source: Akamai: www.akamai. com/stateoftheinternet/Map Visualization Note: Data unavailable for countries shaded in white.
0 % 100
The World Bank (2009) has IP (Figure 2d), share updates over estimated that a 10% increase social networks (Figures 2e, 2f), in broadband penetration would and outsource – or crowd-source yield a 1.21 and 1.38% increase in – everything from housework to GDP growth on average for high- homework (Box 1). income and low/middle-income countries respectively7. Country This will be the cutting-edge case case studies yield similar estimates for those of us able to access for individual countries as diverse high-speed broadband connections as Panama8, the Philippines9, and to the Internet. Large swathes Turkey (see Annex 1). Broadband of the industrialized world can is today a critical infrastructure in already access high-speed Internet the growing global digital economy, connectivity at over 5 Mbps; and countries that fail to invest however, the picture is not as bright in broadband infrastructure risk for Africa, much of southern Asia, being excluded from today’s online and Latin America (Figure 2c). economy, as well as the next stage of the digital revolution and future Internet.
Internet Protocol (IP)-enabled broadband connections are not just about economic empowerment, however. Always-on connectivity can improve our lives in a myriad of ways by providing better access to health and education, enabling financial inclusion, facilitating m-payments, and creating transparency in government, as just a few examples. Broadband will ultimately also enable everyone to access data easily in the cloud, use video conferencing and Voice over
8 Social network penetration % Total countries 20% 30% 70% 80% 10% 40% 50% 60% 100% 0% 20% 40% 60% 80%
Philippines 0%
Indonesia 2004 Allowed
Malaysia 2005
Brazil
Russia 2006 Closed
India
Singapore 2007
Poland Banned 2008
Mexico Hong Kong 2009
Global Average USA No Framework 2010
Canada 2011
China Australia
Netherlands UK 9 www.maproomblog.com/2011/06/ Source: Twitter citedat Maproom: 2011. after theearthquake on11March from usersinJapan inreal-time Growth in Twitter @replies toand Figure 2e:Real-time Source: ITU. number ofcountries). tion of VoIP, 2004-2011(%oftotal Worldwide regulation &legaliza (IP)-enabled Figure Protocol 2d:Internet earthquake.php earthquake.php twitter-mapping_the_japanese_ Italy networking-2011 visual.ly/global-map-social- Social Networking 2011, www. Source: Global Web Index Map as a%ofactive users. Internet Penetration, selectedcountries, Global SocialNetwork Figure 2f:Loud&Social
Spain
France
Germany Korea, Rep.
Japan
-
ChapterChapter 2 Box 1: Our Mobile High-speed Future
Chapter 2 Which trends will drive our mobile high-speed future, and how will they impact users?
–– Real-time status updates for objects, as well as people, in a growing ‘Internet of Things’; –– Using location-based services and Global Information Systems (GIS) in many different ways in our lives – for example, to summon taxis, avoid traffic jams, track late buses or stolen cars, locate friends – and ourselves; –– Apps ‘pushing’ out information to users, rather than users searching for and ‘pulling’ in information; –– Sharing our likes and dislikes, resulting in targeted advertising, as well as search results tailored to our personal preferences; –– Better access to healthcare or government services and job opportunities; –– Collaborative crowd-sourcing in authorship, project management, funding relief efforts, generating encyclopaediae or news reporting; –– ‘Collaborative consumption’10 or the outsourcing of tasks or household chores for a price; –– Changes to our notions of privacy, or even the demise of privacy? –– Converged cross-platform malware, as well as converged services; –– Storing data in the cloud – you need never again be dependent on your physical device.
Source: ITU.
Given the prolific spread of mobile, as a portal to the content and apps in the future, the digital divide11 (or available in the online world. A inequality in access to Information host of online services and apps and Communication Technologies are today making mobiles and or ICTs) may no longer describe smartphones even more powerful disparities in access, but instead by combining several functions – for denote disparities in speed and example, Instagram enables the functionality – or more specifically, fast sharing of photos and video what people can do with their over different devices or different mobile devices (Figure 3). Indeed, social networks, while Mini Opera the handset may become relatively ‘compresses’ data-heavy websites less important, as more and more for easier access over lower speed people will use their mobile device mobile connections.
10 Figure 3: Smartphones as portals to the online world Chapter 2 Chapter 1. Voice
2. Internet access
3. Newspaper/ Magazine stand
4. Games console
5. Navigation device
6. Camera & Video
7. Wallet Smart Phone
8. Television
9. Accessibility features and applications: Calculator, Alarm Clock, Address Book, GPS/Compass, Voice Recognition software, Audio prompts.
Inbuilt 10. Spirit level
11. Instant messaging/ Social media
11 There were 589 million fixed units sold18. According to Ericsson, broadband subscriptions by the end Singapore ranked number one in the of 2011 (most of which were located region for smartphone ownership19. Chapter 2 in the developed world), but nearly We are moving towards a world with twice as many mobile broadband a multiplicity of devices, including subscriptions at 1.09 billion new specialized devices in a (Table 1). Of a stock of 5.97 billion pervasive “Internet of Things”. With mobile cellular subscriptions laptops shrinking in dimensions, as worldwide by the end of 2011, some smartphones gain in functionality, 18.3% related to mobile broadband subscriptions. Nearly a third of all the space between smartphones, handsets shipped in 2011 were tablets and PCs is shrinking fast, high-speed devices (IDC, 2012)12. while the gap between smartphones According to Ericsson, to date, and basic feature phones is mobile broadband subscriptions are widening. Tablets remain a great growing by approximately 60% year- enabler for broadband usage, as on-year and could reach around 5 they are able to deliver more content billion in 201713. via a larger screen. In reality, there is an important role for all of these Worldwide, the total number of different devices (smartphones, smartphones is expected to exceed tablets, netbooks, PCs, and fixed 14 3 billion by 2017 (Ericsson, 2012 ), devices), with people choosing the with the number of smartphones appropriate device for the task at sold in Africa and the Middle East hand – but they all need broadband expected to increase four-fold from (see Box 2: The Device Wars). 29.7 million units sold in 2011 to 124.6 million by 2017 (Pyramid The strong growth in mobile Research15). In Latin America, broadband and smartphones is smartphones could represent half promising, but should not generate of all mobile phone sales by 201616. complacency. Indeed, growing Smartphone adoption is also gaining multi-device ownership means momentum rapidly in the Asia- that the number of mobile cellular Pacific region17, where smartphones subscriptions is today significantly are projected to account for 33.2% larger than the number of actual of all handsets sold in 2012, with mobile phone users (see Box 3: China alone representing 48.2% of Have We Cracked Access?).
Table 1: Summary statistics for high-speed connectivity
Broadband % Global Total Total 2011 Total, 2011 high-speed, 2011
Internet users 2.26 billion -/- -/- Source: ITU (www.itu.int/ ITU-D/ict/statistics/at_glance/ Fixed Internet 658.8 million KeyTelecom.html). Smartphone 589 million (2011) 80% (2010) shipment statistics from IDC subscriptions (2010) 2012 at www.mobithinking. com/mobile-marketing-tools/ Mobile 5.97 billion 1.09 billion* 18.3% latest-mobile-stats#phone- subscriptions shipments. Note: * includes data-only Handset 491.4 million subscriptions. 1.55 billion 31.8% shipments (smartphones)
12 technological innovation in2010, we launchedaprogramme for Connect2Compete. InMexico, In 2012, theUShaslaunched technology over multipleplatforms. best conditionsinquality, and price Operators have customers the to offer 50% intheUS, bothgrowing fast. have smartphones, andmore than Globally, 15%oftheworld population will make accesstodatahappen. technologieswhichin thesmart but we needtoinvest more quickly technologies are toimpact, starting not yet data. High-speed3Gand4G can accessvoice viamobile, but way ofachieving this. Mostpeople mobile handsetsisthemostlikely accessvia High-speed Internet by 2015. working all digitalinclusionfor for BroadbandThe Commissionis health, business, entertainment. for education,and understanding–for should have access toknowledge has tobeconnected, everyone –everyoneis crucially important connectivity. Today, beingconnected broadband anduniversal accessto to provide universal accessto launched theBroadband Commission the ITU. In2010, ITUandUNESCO of work underway attheUNand accessible toall–thisistheaim Broadband shouldbe Internet industry.transforming theservices and politicalchanges, andis triggered profound socio-economic development has oftheInternet knowledge and brainpower. The in ITandcomputingleveraging our the knowledge society, withadvances represents thecirculation systemof sector.service telecomnetworkThe developed now countries work inthe More than80%ofthepopulationin society. service society toatertiary us from industrial asecondary Technological progress istaking data andvideoatthespeedoflight. are now connectedthrough voice societies even faster, someofwhich is transforming ourworld andour change. Today, thedigitalrevolution and brought aboutcivilizational have transformed theway we live history, technology andinnovation civilization toadvance. Throughout what makes itpossible human for Technology andinnovation are OUR SOCIETY HOW BROADBAND ISCHANGING FEATURED INSIGHT1:
people can go to learn andsurfthe people cango tolearn mainly inpublic schoolswhere are creating free DigitalLibraries allpeople.for InLatinAmerica, we the mainaimofequalopportunity and thisyear, Connect2Grow, with made accessible toeducatemany universities shouldbecreated and ICTs, culture andeducation. Online in jobopeningstourism, health, young are bettertrained working for levels ofskillsandeducation, sothe People need tobetrained tohigher everyone connectedviatheweb. and contentthatcanbeusedby hundreds ofthousandsapps with thepossibilityofdeveloping opening uptocreate millionsofjobs, There are huge vistasofopportunity IT isakey economic growth. toolfor are creating new jobs. Itisclearthat culture andeconomicactivities that IT intheiractivities, promote digital jobs. Governments shouldintroduce sectors which willcreate thesenew being formed? We needtopromote new jobs? Where are thesenew jobs youth. What activities willcreate unemployment, especially among change. We are seeingvery high accompanying civilizational lack ofthedeepstructural changes challenges are arising, duetoa technological change, serious However, withsuchrapid being doneindifferent countries. can know from andlearn what is documenting bestpractices, sowe BroadbandThe Commissionis of ourcustomers.WiFi hotspotsfor home. We are developing thousands can borrow laptopsandtake them training isprovided, while people Telmex’s Bibliotecas Digitales, IT students, teachersandparents. In morehas benefited than2.8million has aprogramme inMexico, which equipment athighspeeds. Telmex web free for withloanedcomputer Carlos SlimFoundation. Source: Mr. CarlosSlim Hélu, President, the civilization.society totheindustrial societies move from theagricultural associated withtheways inwhich back andalsoacknowledge thecosts problems andcrisis. We needtolook socio-economic andpolitical in living standards, unemployment, and quickly, toavoid adeterioration Structural changes have tobemade, we retire –willhave tochange. Internet. How we work –andhow more peoplesuccessfully over the 13
ChapterChapter 2 Box 2: The Device Wars Chapter 2 With laptops shrinking in dimensions, and smartphones gaining in functionality, the differences between smartphones, tablets and PCs are shrinking fast, while the gap between smartphones and basic feature phones is widening. Which device will win out? How will tomorrow’s digital generation access the Internet? The answers, as always, depend on the the exact question asked.
Today, according to survey data about how people are accessing the Internet, PCs remain the dominant Internet access device of preference in many countries by a large margin, including in many emerging markets (see chart below). According to Ericsson’s Traffic & Market Report (2012), “mobile data is expected to have almost doubled in 2011. Laptops, which are perhaps more aptly described as mobile PCs, dominate data traffic in most mobile networks today, but smartphone traffic is growing faster, due to high growth in subscriptions”.
The devices which people are using to access the Internet, 2012
Source: Intel.
In the near future, the outlook for Internet access devices will be more diverse. Ericsson estimates that the total subscriptions of data-heavy devices (smartphones, mobile PCs and tablets) will grow from around 850 million at the end of 2011 to 3.8 billion by 2017. In terms of the number of devices, Ericsson predicts smartphones will outnumber both tablets and PCs (Figure 2a). Regarding data traffic however, the picture is quite different. Cisco (2012) estimates that adding one smartphone to a network is equivalent to adding 35 non-smartphones; adding one tablet is equivalent to 121 non-smartphones (or 3 smartphones); while adding a laptop/mobile PC is equivalent to 500 non-smartphones. This leads Ericsson to conclude that “in later years [i.e. towards 2017], data traffic will be split fairly equally between smartphones, mobile PCs and tablets” (see chart below).
14 network deployment. and service need tointervene toexpedite connectivity, policy-makers may todeliverfailing desired broadband less. Inareas where themarket is Sudan, withspeedsof1Mbit/s or such asBangladesh, Malawi, and 49Mbit/s, compared tosomeLDCs, currently inLuxembourg found at download consumersare speedsfor According toOokla, highestaverage connectivity, aswell asbandwidth. characterized by huge gaps inbasic global broadband landscapeisstill ustobecomecomplacent.for The At thesametime, there isnoreason markets. isencouraging.This chains, knowledge networks, and value national andinternational intheSouthtolink enterprises unprecedented for opportunities developing are countries creating broadband connectivity tomore andtheexpansion of the Internet mobile apps, innovative usage of have never beengreater. New to make development useofICTs for is highonmy agenda. Possibilities development andpoverty reduction emerging economic technologiesfor understanding theimplicationsof intotheworldcountries economy, friendly integration ofdeveloping that promotes thedevelopment- and headofUNCTAD, theUNbody As aBroadband Commissioner SECTOR DEVELOPMENT BROADBAND FORPRIVATE FEATURED INSIGHT 2: Global mobiletraffic: Voice anddata,2010-2017 Box sources: Intel, andCisco Ericsson NetworkingVirtual Index 2012. Figure source: Ericsson Traffic andMarket Report 2012. Monthly PetaBytes (1015B) 10,000 8,000 2,000 4,000 6,000 0 2010 Data: mobilePCs/tablets Data: mobilephones Voice 2011 2012 2013 2014 2015 Economy 2011). Report UNCTAD data different sizes (UNCTAD Information andbetweencountries companiesof considerablyvaries –bothbetween making useofthisopportunity areextent towhich enterprises with Governments. However, the engage ine-commerce, aswell as to enables enterprises Internet theiroutputtomarkets.bring The andknowledge,information and become more productive, access canhelpenterprises the Internet it ismostneeded. Effective useof helps accelerate development where leverage broadband inaway that subscriptions. challengeThe isto already fixed surpass broadband high-speed wireless subscriptions In several developing countries, route toextending broadband. solutions willbethepreferred In mostlow-income countries, mobile Secretary-General, UNCTAD. Source: Dr. Supachai Panitchpakdi, among smallercompanies. is muchlower inLDCs, especially access, but thecorresponding share Turkey &UAE enjoy broadband Brazil, Colombia, Qatar, Singapore, of mediumandlarge in enterprises example, more thanthree-quarters is more diverse elsewhere. For access.speed Internet pattern The from benefiting high- enterprises economies, witharound 90%of today almostubiquitousindeveloped show thatfixed broadband useis
2016 2017
15
ChapterChapter 2 Box 3: With 6 Billion Mobile
Chapter 2 Subscriptions, Have We Cracked Universal Access?
Accurate and up-to-date statistics are vital for good policy-making. With nearly 6 billion mobile subscriptions globally and per capita mobile penetration standing at 86.7% by the end of 2011 (ITU, 2012) three- quarters of the world’s population now have access to a mobile phone (Pew, 201120, World Bank 201221). Mobile phone penetration stood at 117% in the developed world at the end of 2011, compared to 78.8% for developing countries, so disparities in penetration and access still persist.
Do statistics based solely on subscriptions risk generating complacency? Cisco (2012) estimates there were around 4 billion actual mobile users in 2011, forecast to rise to 5 billion mobile users by 2016, with one billion more users joining the mobile world over the next four years, equivalent to the population of India. Basing statistics on users rather than subscriptions leads to different conclusions as to whether access remains an issue for the developing world as, according to these estimates, actual user penetration is considerably lower than subscription penetration rates. The discrepancy in statistics partly derives from multiple Subscriber Identity Module (SIM) card ownership and multi-device ownership, which are increasing dramatically. Cisco estimates that by 2016, a quarter of all mobile users will own more than one device and about 9% will have three or more devices. Deloitte notes a similar trend in multi-tablet ownership (TMT Predictions 201222) .
Multi-ownership is a trend which mobile operators are monitoring closely. Today, most mobile subscriptions are device-centric (with typically one subscription per device). With multiple device ownership, it may be better to pool the bandwidth across different devices (per user), so mobile operators can offer packages for multiple devices. In spring 2012, Verizon announced the imminent introduction of data share plans, “Share Everything”, which allow users to share data plans within a single family and across multiple
Multiple Device Ownership One-quarter of users will have Multiple (2+) Mobile Devices in 2016, up from 8% in 2011
100% 8% 12% 90% 15% 19% 22% 25% 80% 70% 60% 50% 92% 88% 40% 85% 81% 78% 75% 30% 20% 10% 0% 2011 2012 2013 2014 2015 2016
16 2; Deloitte TMT Predictions. Sources: ITU, World BankIC4DReport 2012, Cisco VNI 2012; Voice ofBroadband, Vol. 7, Issue issues (www.itu.int/ITU-D/ict/wtim12/index.html). to generatediscussionandprovide trainingonICTstatisticsandstatistical hosts anannualWorld Telecommunication/ICT IndicatorsMeeting(WTIM) informed discussionofthereal needsforanalysisindifferent countries.ITU be useful,butmayengendercomplacencyandneedtoaccompaniedby discussion oftrends inmobileusage.High-levelbroad-brush statisticsmay Better marketdataisneeded,improved statistics,andmore informed looking fornewwaystokeeppacewithneed. multiple devicescouldexacerbatebandwidthconstraints,withproviders have toholdaseparateplanperdevice This isgoodnewsforconsumerswithmultipledevices,astheywillnolonger devices 23 . AT&T hasalsocommittedtolaunchingmulti-devicedataplans 25 . Growing demandforservicesvia 24 . 17
ChapterChapter 2 ENDNOTES
1. “Information and Communication for Development Report 2012: Chapter 2 Maximizing Mobile”, World Bank (2012), available at: www.worldbank.org/ ict/IC4D2012. 2. Boston Consulting Group press release, 27 January 2012, available at: www.marketwire.com/press-release/g-20s-internet-economy-is-set- reach-42-trillion-2016-up-from-23-trillion-2010-as-nearly-1611718.htm, citing from “The Connected World: The Internet Economy in the G20”, Boston Consulting Group (BCG) Report, March 2012. 3. “Internet Matters: The Net’s sweeping impact on growth, jobs, and prosperity”, McKinsey Global Institute (2011) found the Internet accounts for 3.4% GDP & 21% of GDP growth in G8 plus S. Korea, Sweden, Brazil, China & India: www.eg8forum.com/fr/documents/actualites/McKinsey_ and_Company-internet_matters.pdf. 4. For example, Booz & Company (2009) found that a 10% increase in broadband penetration in any year is correlated with a 1.5% increase in labour productivity over the following five years. “Digital Highways: The Role of Government in 21st-Century Infrastructure”, co-authored by Roman Friedrich, Karim Sabbagh, Bahjat El-Darwiche and Milind Singh. 5. For example, Ericsson and Arthur D. Little have looked at the benefits of broadband and connectivity and found that for every 1,000 broadband connections, 80 new net jobs are created. See: www.ericsson.com/res/ thecompany/docs/comp_facts/background_networkedsociety_final. pdf. The McKinsey Global Institute (2011) study found that 2.4 jobs are created through Internet industry for every job lost. 6. “The Employment Effects of Advances in Internet and Wireless Technology: Evaluating the Transitions from 2G to 3G and 3G to 4G”, Shapiro & Hassett (2012), New Policy Institute, Washington. Their analysis estimates that under the current transition, every 10% increase in the adoption of 3G and 4G wireless technologies could add more than231,000 new jobs to the U.S. economy in less than a year. 7. Information & Communication for Development Report (2009), World Bank, Washington, available from: www. web.worldbank.org/WBSITE/EXTERNAL/TOPICS/ EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/EXTIC4D /0,,contentMDK:22229759~menuPK:5870649~pagePK:64168445~piPK: 64168309~theSitePK:5870636,00.html. See Qiang & Rossotto (2009). 8. Fixed broadband is estimated to have positively impacted the GDP of Panama, accounting for 0.82% of GDP and representing 11.3% of all economic growth on average since 2005, according to the Broadband Commission’s case study of Panama, carried out by Dr. Raul Katz – see: www.itu.int/ITU-D/treg/broadband/BB_MDG_Panama_BBCOM.pdf 9. Mobile broadband adoption was found to contribute an annual 0.32% of GDP. Given the importance of mobile in the economy of the Philippines, this would account for 6.9% of all GDP growth for the economy during the past decade, , according to the Broadband Commission’s case study of the Philippines, carried out by Dr. Raul Katz – see: www.itu.int/ITU-D/ treg/broadband/BB_MDG_Philippines_BBCOM.pdf 10. “Could These Start-Ups Become the Next Big Thing?”, Jenna Wortham & Nicole Perlroth, 6 May 2012, at: www.nytimes.com/ interactive/2012/05/07/technology/start-ups-next-big-thing. html?ref=technology
18 25. 24. 23. 22. 21. 20. 19. 18. 17. 16. 15. 14. 13. 12. 11. Voice ofBroadband, Volume 7,Issue2availablefrom: source=rss#ixzz1xf2gsL9I data-pricing-not-surprise/2012-06-12?utm_medium=rss&utm_ www.fiercewireless.com/story/atts-stephenson-verizons-shared- Verizon’s shared data pricing‘notasurprise’-FierceWireless Fierce 12June2012,availableat:AT&T’s Wireless, Stephenson: “AT&T’s Stephenson:Verizon’s shared data pricing‘notasurprise’”, www.venturebeat.com/2012/06/12/verizon-share-everything-plans/ 2012, availableat:www.deloitte.com/tmtpredictions2012. Deloitte Technology, Media&Telecommunications (TMT)Predictions around 75%oftheworld’s householdshad amobilein2010. Report 2012:MaximizingMobile(DataAppendix)estimatedthat The World BankInformationandCommunicationsForDevelopment worldwide/ global-digital-communication-texting-social-networking-popular- this figure isundoubtedlyhigher. www.pewglobal.org/2011/12/20/ people owningamobilecellularphoneinMarch 2011.By2012, mobile householdpenetrationof77%in2010,withsome74% world’s Centre population,thePewInternet (2011)estimateda for individualuse,whichwasextrapolatedto4.2billionofthe Based onasurveyusingsampleof21countrieswiththemedian Science%2Band%2BTech/Story/A1Story20120619-353711.html. and quotedatwww.news.asiaone.com/News/Latest%2BNews/ Survey byEricssonConsumerLabs,publishedinJune2012 htm?sc=GL060712_AMESMTFC. from: www.pyramidresearch.com/SmartphoneForecasts. Pyramid Research SmartphoneForecast 2012,available Nielsen SmartphoneInsightsStudy, June2012. (November 2011). at theMassMarket,LatinAmericaTelecom Insider, Vol. 3,No6 Pyramid Research, OperatorsandVendors AimSmartphones htm?sc=GL060712_AMESMTFC. from: www.pyramidresearch.com/SmartphoneForecasts. Pyramid Research SmartphoneForecast 2012,available res/docs/2012/traffic_and_market_report_june_2012.pdf. Ericsson Traffic &Marketreport, June2012,at:www.ericsson.com/ res/docs/2012/traffic_and_market_report_june_2012.pdf. Ericsson Traffic &Marketreport, June2012,at:www.ericsson.com/ marketingfacts/internet-trends-2011-by-mary-meeker Web 2.0Summit,18/10/2011,availablefrom: www.slideshare.net/ TrendsIDC, 2012and“Internet 2011”,presentation byM.Meeker, Broadband”, publishedinSeptember2010. Commission, “A2010LeadershipImperative:TheFuture Builton live andwhatevertheircircumstances”, ReportoftheBroadband as thebasisofhumanopportunityforallcitizens–wherever they access tobroadband networks,basedonamultilingualapproach, of everycountryonearthwilldependaccessibleandaffordable “We firmlybelievethattoday, thesocialandeconomicdevelopment www.broadbandtrends.com/
19
ChapterChapter 2 BROADBAND FOR DRIVING DEVELOPMENT AND ACHIEVING THE MDGs
The real power of broadband Broadband technologies offer lies in its potential to improve major opportunities to advance development outcomes around socio-economic development, the world. There is today growing from providing access to education evidence that broadband is making or health information to making a tangible difference in the lives electronic payments enabling people of people around the world and to set aside valuable savings and accelerating progress towards the survive economic shocks. Mobile Millennium Development Goals phones are increasingly powerful (MDGs). The Rio+20 Conference portals to the online world, making advanced Sustainable Development people more informed and enabling 3 Goals (SDGs) recognizing that “it is them to exercise choice and make essential to work toward improved better decisions. Featured Insight access to ICT, especially broadband 3 and Table 2 outline the ways in networks and services, and bridge which broadband, and especially the digital divide, recognizing mobile broadband, is making a the contribution of international difference in the lives of people cooperation in this regard”1. around the world and accelerating progress in achieving the MDGs.
20 Chapter 3
FEATURED INSIGHT 3: ENABLING enables unbanked citizens to join the SUSTAINABLE, ECONOMIC financial mainstream – for example, WELL-BEING THROUGH MOBILE by facilitating money transfers, which TECHNOLOGY would otherwise be impossible or prohibitively expensive. Mobile networks are increasingly pervasive, transforming our lives in With 0.6 doctors for every 1000 numerous ways. This phenomenon people, access to affordable, is most compelling in emerging quality healthcare is a distant hope and developing markets where the for a vast majority of the Indian impact of resource deficiencies population. Airtel’s m-Health service, are amplified due to information ‘Mediphone’, is a doctor-on-call asymmetries. Technological service, providing customers with platforms – first mobile, and now quality health advice over mobile broadband – are unprecedented phones – anytime, anywhere. levelers for society, enabling access Launched in November 2011, to economic opportunities and social Mediphone has already helped welfare earlier out of reach. nearly 100,000 people. With more than 900 million mobile subscribers In India, farmers are among the in the country, the potential to bridge major beneficiaries of the mobile the gap for medical support is revolution. Bharti Airtel reaches out tremendous. to more than one million farmers, contributing significantly to their The power to progress well-being productivity and incomes. Through its through the mobile phone is, joint venture with IFFCO, the world’s perhaps, best exemplified in a pilot largest fertilizer cooperative, farmers led by The Earth Institute. In this are provided with vital information initiative, Airtel is supporting a host on weather, commodity prices, of innovative programmes in villages agronomy, horticulture, government across six countries in Africa. Under schemes, etc., helping them make this programme, Airtel enables citizens to access education, health timely, informed decisions. With more and solar energy through mobile than two-thirds of India’s population connectivity. dependent on agriculture for their livelihoods, the scope is significant. As the data revolution transforms mobile, the opportunities for Mobile money is another revolution enhancing economic well-being which has steadily emerged as a through mobile broadband are potent driver of inclusive growth in endless. Smartphones and feature India and Africa, driven by their large phones are already becoming populations and vast geographies cheaper. A nurturing regulatory needing coverage. According to the landscape will be the catalytic force Boston Consulting Group, US$ 350 for realizing the transformative billion is expected to be channeled impact of the broadband revolution. through this medium by 2015 in India alone. Airtel Money, present in eight Source: Sunil Bharti Mittal, Chairman & African countries and India, Managing Director, Bharti Airtel Ltd. 21 There is today no doubt that even health support and education are low-speed connectivity and Short delivered where they are most Message Service (SMS) systems needed (Featured Insights 5, 6 and Chapter 3 such as RapidSMS are improving 7). This has been accomplished development outcomes – concrete by the Azim Premji Foundation in proof of the benefits of connecting education. ICT connectivity is not remote and rural communities is a panacea, but when integrated found every day. effectively with existing systems, it can facilitate new services and help The experience of the Praekelt deliver the best results (Table 2). Foundation shows just how powerful simple text messages can be - the But what does growth in mobile Praekelt Foundation in Africa is broadband mean practically for sending out a million SMS per day, development? Some have argued such as (for example): “HIV positive that, from a demand perspective, and scared to tell your partner? For low-income consumers may spend help, please call the AIDS helpline valuable money on ICT services – 1-800-123-232”. The foundation money which they need urgently sent 2 billion messages in seven for basics such as food and shelter. languages over the last two years Others argue that money spent and generated 2.5 million calls to on ICTs reflects people’s changing the National AIDS helpline. needs and that choice should Even more could be achieved remain with individuals as the with broadband connectivity – best judges of their own needs. not simply due to higher speed Connectivity can enable people to connectivity, but due to a raft of take on new forms of work and earn new opportunities arising from the more money (Box 4). Decades of integration of communications into experience of development work existing or improved health systems. suggests that empowering women For example, using information through access to ICTs could result systems in conjunction with health in optimal decisions over income databases and Global Information and work for their families (Featured Systems (GIS) can help ensure Insight 4).
22 Table 2:Broadband andtheMDGs Gender Equality Maternal health Maternal End Poverty& Environment Child Health Partnership Education Universal HIV/AIDS Hunger
middle-income countries.Countrycasestudiessuggestastrong impactoffixedand/ a 10%increase inbroadband penetrationcouldboost GDPby1.38%inlow-and helping combatpovertyandhunger. Research bytheWorld Banksuggeststhat A growing bodyofevidencesuggeststhatbroadband canboostGDPandincome, mother-to-child transmissionofHIV such asthelaunchofasoftware moduleinGhanaAugust2011aspiringtoreduce ChildCount+ registers pregnant mothersandprovides supportforantenatalcare, rapidly toimprove treatment. existing healthinformationsystemstohelpexpertsanalyzedataonchildmore monitoring immunizations,malaria,diarrhoeaandpneumonia health status,includingscreening formalnutritionevery90days,aswell community healthextensionworkersregister children underfivetomonitortheir empowering communitiestoimprovehealth childsurvivalandmaternal ChildCount+ isacommunityhealthreporting andalertsplatformaimedat 13 billion(Chapter5) closing themobilegendergapwouldincrease revenues formobileoperatorsbyUS$ with friendsandfamilymembers Senegal, womenuseICTs toaccessinformationwhilemenprefer communication Various studieshavereported thatmenandwomenuseICTs differently, e.g.,in keep children inschools In India,theAzimPremji Foundationworksusingcomputersasaninducementto builds literacyforwomenandgirlsthrough SMSinSenegal. with laptopsasabasictoolforimproved education.TheJokkom-educationprogram Portugal andUruguayhavelaunchedprogrammes toprovide studentsandteachers ICTs acquired betterknowledge,and6.5%understoodlessonswithcontentfrom education andNGOsareGovernments providing schoolswithPCstofosterasoundprimary e.g., inthePhilippines(seeAnnex1). or mobilebroadband inindividualcountries,dependingontheireconomicstructure – and privatesectorinvestment inmanycountries. mobile broadband. Themarketformobilebroadband hasbeendrivenbycompetition leadership, theprivatesectorhasdrivenexpansionin marketsforfixedand cooperation withtheprivatesector The benefitsofnewtechnologies,especiallyICTs, shouldbemadeavailablein up to25% dematerialization. SmartuseofICTs can reduce greenhouse gas(GHG)emissionsby logistics, smartgridsandmeters,buildings,useof video conferencing and consumption through arangeoftechnologiessuchassmarttransportationand cooling andmonitoringtechnologies Smart gridscansignificantlyreduce energyconsumptionthrough improved heating, expanding toclinicswithoutdigitizedelectronic databasesoutsideJohannesburg medicationpick-ups.However,miss themorART theproject faceschallengesin TxtAlert systemtoremind HIVpatientsaboutappointmentsandtrackwhich and Tanzania AIDS andcondomusecreate jobopportunitiesinSouthAfrica,Nigeria,Kenya across Africa.Thisappuses data-intensivemobileservicestoraiseawareness about Bozza lighting usingsolarelectricitytofacilitatesaferdeliveriesofbabies. in Nigeriaprovides healthcare workersandmidwiveswithmobilephonesreliable are alsoenablingremote health.WECARESolar diagnosisandsupportformaternal 3 . High-qualityelectronic contentcurriculacanimprove educationaloutcomes isanonlineplatformwhichshares content(music,video,poetryetc.)from 2 15 . InSenegal,asurveyfound27.8%ofschoolpupilsreported theyhad . MobiletechnologyalonecouldlowerGHGsby2%2020 12 . InSouthAfrica,thePraekeltFoundationusesanopensource SMS 8 . 5 , particularlygirls,whomtheyfindhave20%lowerliteracy 7 . Formobiletelephony, GSMAhasestimatedthat 17 11 14 . Inconjunctionwithpublicsectorpolicy . Hospitalsconnectedviabroadband networks . Broadband canreduce energyandwater 23 10 . Itintegrateswith 9 . Ithelps 16 . 13 4 . . 6 .
ChapterChapter 3 FEATURED INSIGHT 4: ICTs and broadband can also BROADBAND FOR IMPROVING improve the delivery of education, THE LIVES OF WOMEN – AND enhancing educational outcomes. Chapter 3 THEIR FAMILIES Current figures show that despite Empowering women through the objective in MDG 2 of achieving ICTs can help generate social and Universal Primary Education (UPE) economic development. Experience by 2015, 69 million children still from development work over recent lack formal education18. Moreover, decades shows that empowering 774 million adults cannot read or women leads to positive economic write19; the majority of whom live in and social change – for women and for their families. Some of the developing countries. most powerful ways to advance development focus on increasing Whereas serious attention has been women’s access to education, devoted to mHealth, mAgriculture healthcare and financial services, and mPayments, mEducation or which in turn allow them to improve mLearning is taking a little longer their quality of life and that of their to come to fruition. National families. Evidence for the importance investments in education are a of women as socio-economic change solid and consistent predictor of agents includes: economic growth (Rodrik, 2000). • A 2008 OECD report cited One report concludes that one evidence that women spend up to additional year of school can be 90% of their income directly on directly associated with a 30% their families and communities. increase in per capita income20. • The FAO underlined in 2009 With the advent of cheaper tablets that women are critical for food and smartphones, the world is security, as they cultivate up to realizing the potential of broadband 80% of all food in many low- and middle-income countries. to enable access to education from anywhere and anytime via • IDB has found that children of employed mothers have 5% better mobile devices. Cloud technology educational attainment than other also promises to offer even greater children in 13 out of 15 Latin opportunities for mLearning and American countries. improving educational outcomes (Featured Insights 5 and 6). The conclusions are clear – if policy- makers wish to improve standards of Meanwhile, ITU, its Members and living over the long-term, they need NGOs are experimenting with to ensure that mothers, aunts, and sisters have access to mobile phones concepts of m-learning and digital and broadband, as women often literacy. ITU and telecentre.org make choices with the best interest of Foundation launched the Telecentre the family and the future generation Women Digital Literacy Campaign at heart. in April 2011 with the goal of Source: H.E. Jasna Matic, Former State training 1 million women to become Secretary for the Digital Agenda, digitally literate. Open to all Government of the Republic of Serbia. stakeholders, nearly 240,000 poor and marginalized women have already been empowered through this initiative (see www.women. telecentre.org/).
24 Source: ITU. Help create alow-carbon economyby: Financial inclusionviampaymentsandmbanking: Survive emergenciesandnaturaldisastersby: Improve healthoutcomes: Help farmersinagriculture andfoodchainintermediariesby: Obtain better-paid workwithmore stableand/orincreased incomeby: areas can: Using evenabasicmobilephone,peopleinremote, ruraland/orlow-income Countries CommunicationsinLow-income Box 4: Practical UsesofMobile • • • • • • • • • • • • • • • • • • cutting downoravoidingtravelthrough improved communications. reducing carbonconsumption through more efficient communications; improving crop yieldsandreducing foodwastage; Introducing more energy-efficient infrastructure; contract micro-loans, enabling themtobetterwithstandfinancialshocks. the abilitytotransfermoneycanimprove lowerincomeworkers’abilityto mPayments couldpromote transparency andcombat corruption; mPayments/mBanking canhelptransferremittances; tracing, finding,orcontactingrelatives. finding andcontactingthenearest relief centre, clinic,orfieldhospital;and efforts; summoning assistance,gettingcriticalsupportandcoordinating relief monitoring andanalyzingvitalsymptomsforbetterpreventative healthcare. disease outbreaks; and receiving diagnosesand/ortreatment reminders, helpinglimitandcontain outcomes; checking thenutritionalvalueoffoodorallergenstoimprove nutritional herds ofwilddeerorhorses). tracking themovementofimportantfoodsources (e.g.,fishstocksor tracking thelatestweatherinformationtoprotect crops andraiseyields; finding thebestmarketpricefortheircrops, increasing theirincome; collapse incommodityprices). shocks(e.g.,floods,droughtenabling themtowithstandexternal ora saving, borrowing ortransferringseasonaland/orvariableincome, nursing orchildcare); becoming contactableandworkingonaflexiblebasis(e.g.inhotels,bars,
25
ChapterChapter 3 FEATURED INSIGHT 5: 2010, this service had reached over BROADBAND AND MLEARNING 4,000 students.
mLearning is especially meaningful BBC World Service Trust in Chapter 3 in developing countries and in Bangladesh – Janala: This ground- rural areas, where infrastructure breaking multi-platform project uses is poor and access to resources mobile phones, Internet and TV to may prove a challenge. mLearning provide English lessons to millions provides anytime, anywhere of people in Bangladesh. Students educational content delivered via dial 3000 to access hundreds of 3 mobile technology. Mobile phones minute audio lessons and can assess are truly unique in their ubiquity, progress with interactive audio accessibility and affordability. quizzes. Nine months after launch, mLearning differentiates itself this service had attracted some 3 from e-learning in the sense that million calls with many repeat users. it is independent from any fixed infrastructure. mLearning can range Source: Alcatel Lucent. from simple SMS messaging, MMS live classroom sessions, web and podcasting to audio-to-text or text- FEATURED INSIGHT 6: to-audio applications. It provides rich INTEGRATING ICT INTO learning experiences via educational EDUCATION – THE MILLENNIUM video, logical reasoning and VILLAGE PROJECT problem solving games, and even To leverage the power of ICT to help mobile whiteboards for interactive improve the quality of education for discussions. students everywhere through access In developing countries, only 25% to teaching and learning resources, of homes have computers21, so Connect To Learn was launched perhaps the most important benefit in 2010 as a collaborative effort of mLearning is its potential to reach between the Earth Institute providing people through devices which, advice on development, education, before long, will be in the pockets of and evaluation; Ericsson as lead every person on the planet. The most technology partner; and Millennium up-to-date content can be accessed Promise, a non-profit organization. immediately and from anywhere and repeatedly reviewed for better The Millennium Village Project understanding. Although most places education at the core of mLearning happens today via feature integrated rural development across phones, our imaginations are inspired sub-Saharan Africa. Building on the by the greater possibilities of higher expertise of each partner, Connect bandwidth (e.g., live tutoring via To Learn identifies strategies to a mobile device). Examples of integrate teacher professional successful mLearning projects and development with 21st century ICT- initiatives already underway include: based teaching, tools and practices in classrooms. Ayala Foundation - Text2Teach in the Philippines: This programme Connect To Learn combines a cloud- offers complementary classroom- based ICT solution developed by based learning and teacher support. Ericsson and other partners for It allows teachers to download short schools with the on-the-ground videos to a mobile device and screen experience of partner NGOs. By them in the classroom. Over 57 000 using cloud technology, it aims students already benefit from this to remove ICT support tasks from program22. teachers and provides them with technology that is simpler to manage, MoMaths (mLearning for so teachers can focus on improving Mathematics Project) in South the quality of education. The solution Africa: Nokia has partnered with is provided as a service, and is several global and South African designed for users with little or no organizations so teenagers can IT competence. Improved access, access short math courses and energy efficiency and reduced a database of 10,000 questions. costs are possible because users Students receive immediate feedback do not have to worry about virus on multiple choice practice tests. By protection, software updates, content- 26 departments, aninnovative tooffer adjacent cities’ government health platform, co-operating with establish ahealthmanagement Branch worked withHuawei to In 2010, ChinaMobile’s Jiangsu E-HEALTH INCHINA FEATURED INSIGHT7: Source: Institute. andtheEarth Ericsson programs. education through innovative in scalingupaccesstoquality and otherICTsolutionscanplay transformational role thatbroadband To recognize partners Learn the in remote rural schools. Connect access toeducationalresources, even community-based educationand through learning the potentialfor personalized study, while enhancing byopportunities enabling Technology improves educational managed inthecloud. maintenance –alltaskswhich are browsing, applicationinstallationor Internet control safe capabilitiesfor
supply shortages inthecontext of greatly easessocialandmedical affordable cost. e-Healthservice The time remote at healthservices users toaccessawealth ofreal- modelwhichhealth service allows Source: Huawei. platform. based service terminals, callcentersandacloud- medical terminals, communication health management solution includes and communicationssolutions. The systems, combininghealthsolutions systems, andhospitalinformation integrates regional healthinformation systems.medical information It toexisting complementary platform solution isitshealthmanagement coreThe componentofthiseHealth to society, insomecases, by upto50%. reduces thecostsofchronic disease population-ageing, andsignificantly 27
ChapterChapter 3 The good news is broadband surpassed in Q1 201223. Growth deployments are accelerating in fixed broadband is spiking, due rapidly around the world. By the to new active markets coming Chapter 3 end of 2011, fixed broadband online and standards-based services were commercially available deployments on the rise24. In terms in 206 economies (including of technologies, Digital Subscriber broadband access through satellite Lines (DSL) account for six out of and leased lines), compared with ten fixed broadband lines, with fibre 166 economies five years earlier. optic FTTx and FTTH accounting Mobile broadband (3G and 4G) for 16.7% of the market (Point services are now commercially Topic, Figure 5c). According to available in 160 economies, up the research consultancy iDATE, from just 80 economies five years there were 220 million FTTH/B earlier (Figure 4). Globally, mobile subscriptions in the world at the end broadband penetration overtook of 2011 (iDATE, 201225). fixed broadband penetration in 2008 (Figure 4). Nevertheless, the role of mobile communications for developing ITU data show that that there were 589 million fixed (or wired) countries needs to be coupled broadband subscriptions by the with adequate investment in robust end of 2011, up 11.5% from 2010 backbone networks, since as mobile (Figure 5a, top). Point Topic puts broadband usage increases, the this estimate slightly higher, at pressure on the access networks 597 million fixed broadband lines, will also increase. The next chapter with total annual additions for considers the vital importance of 2011 the strongest since 2006, policy leadership, while Chapter 5 at 65.5 million new additions over examines the key considerations 2011. The milestone of 600 million driving network investment to fixed broadband subscribers was connect the next billion people.
Figure 4: Growth in broadband worldwide, 2001-2011
220 18 200 16 180 14 160 12 140 120 10 Sources: ITU, Trends in Telecommunication 100 8 Reform 2012; World 80 % Penetration Telecommunication/ICT Number of countries 6 Regulatory Database. 60 4 40 Note: lines refer to per 20 2 capita penetration (right y-axis); bars refer to number 0 0 of countries with service available (left y-axis). 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fixed broadband countries Mobile broadband countries
Fixed broadband penetration Mobile broadband penetration 28 FTTx (inc.VDSL,FTTx+LANetc.) Figure 5:Globalbroadband subscriptions,end2011 Cable Modem 145m; 24.9% 286m; 24.6% 160m; 27.5% 19.4% 336m; 28.9% Americas FTTH 2.6% Americas Europe Europe 14.1% Satellite/mobile 1m; 0.2% Africa 31m; 2.7% 1.9% Africa 8m; 1.2% Arab states 1.3% Other 48m; 4.1% Arab states 27m; 4.6% CIS 42m; 3.6% CIS 243m; 41.6% Asia-Pacific 421m; 36.1% Asia-Pacific 60.8% DSL 29 Subscriptions, 2011 Global FixedBroadband Figure 5a: Point Topic(bottom). Sources: ITU(top, middle); Users bytechnology, Q42011 Fixed (wired)-Broadband Figure 5c:Global Global MobileBroadband Figure 5b: Subscriptions, 2011
ChapterChapter 3 FEATURED INSIGHT 8: How can broadband help spur new A TALENT FOR INNOVATION talents? – WHY BROADBAND IS THE QUESTION & THE RESPONSE The Broadband Commission Chapter 3 has repeatedly emphasized that To maximize its benefits for growth, education will benefit tremendously employment and development, from broadband. Although the MDGs broadband needs new skills and have focused on alphabetization and talents; the good news is that primary education, it is now clear that broadband will also generate such secondary and vocational education talents on a global basis. play a vital role in generating growth, employment and development Why does broadband need new through affordable broadband skills? access. The possibility of upgrading workers’ skills through online, on- Obviously, fresh technical skills are the-job and on-demand training needed to master the technologies, could significantly improve firms’ networks, and applications associated performance for all types of firms with broadband. Today, we are in the and organizations, especially SMEs. early days of broadband deployment in many parts of the world, so such New tools and concepts can be skills are mainly to be found in applied to learning, through the the firms involved in deploying development of a largely virtual broadband networks and services. ‘augmented classroom’ through In-house training will play a vital role which students can interface with over the coming 3 to 5 years. educators, as well as others. The recent success of the Khan Academy More innovative are the fresh (where volunteers post short videos skills needed to capitalize on the new opportunities broadband will to illustrate or explain basic concepts generate – for example, high-speed in mathematics, physics, economics high-quality transmissions will impact or other subjects) is an example of the commercial and strategic value how social media, online webcasts of various forms of digital content and education can educate and (video, multi-lingual, interactive). inform large populations. The impact Generic skills (in business, finance, of such approaches would grow management and strategy) need to exponentially with broadband. Open be combined with e-skills (digital courseware and models (e.g., those content production, network pioneered by OCW at Harvard) can management, cybersecurity). increase the number of students around the world and help promote Finally, global broadband will multilingual and localized versions drive new types of global and local of the same content. Interactive environments and ecosystems, education can become a reality (e.g. needing a new type of skills-mix. the growing use of tablets in primary For example, regulatory challenges and secondary schools in Singapore), call for a new mindset in terms of fostering local talent bases. convergence, content regulation and ‘open collaboration’. Innovation through collaboration (crowd-sourcing and crowd creativity, Faced with the need to attract for example) can generate an and provide such new skills, unprecedented environment for many countries (especially in ‘Globally Engineered Serendipity’ the developing world) may find (GES). As confirmed by recent themselves in a delicate situation innovation benchmarks (such as the whereby they need to depend on WIPO-INSEAD Global Innovation external know-how to foster the Index released in July 2012), the deployment of their own broadband ability of experts in different areas networks and services. The good to interact is key to innovation, news is that broadband can especially in its early stages. Until play a critical role in bridging recently, ‘cross-fertilization’ of ideas the skills gap. would typically happen in a
30 will benefit throughwill benefit improved in particular. Developed countries underdeveloped areas ofEurasia thewholefor region andremote, term economicandsocialbenefits reduce accesscosts, delivering long- will improve connectionspeedsand infrastructureinternational project Tier 1backbonenetworks. This improving theglobaltopology for regional Tier 1backbonenetwork, (Hong-Kong). TASIM willprovide a between Europe (Frankfurt) andAsia to establish amajornew transit route connectivity ofcentral Eurasia and improve Internet theinternational Highway Project (TASIM) aims to The Trans-Eurasian Super Information PROJECT (TASIM) INFORMATION SUPERHIGHWAY THE TRANS-EURASIAN FEATURED INSIGHT9: Director ofINSEADeLab. Source: Lanvin, Professor Bruno Executive aroundcountries theworld. of education, skillsandtalentsin circles virtuous Chapter 7tosupport has madearecommendation in skills. BroadbandThe Commission potential producer ofmany ofthose source new skills, ofneedfor andthe In conclusion, broadband isboththe ‘Globally Engineered Serendipity’. global level. Hencethephrase of systematize suchanapproach atthe brand new way toengineerand campuses. Broadband a offers serendipitous fashion, onuniversity
of Azerbaijan. Technologies oftheGovernment oftheRep. Minister ofCommunications andInformation Source: H.E. MinisterProfessor Dr. Abbasov, networks. broadband backboneandaccess organizations inexpanding private sectorandinternational realize thesynergies ofgovernments, coordinated by theITU, willhelp EurasianThe Connectivity Alliance, Partnership).and theEC/Eastern SPECA, UNESCATO, BSEC, RCC, OIC, (including ITU, UNDP, UNDESA, UN organizationsinternational alike of governments, businesses and andcollaborationthe support The TASIM project from benefits signed. framework documentshaving been since 2010, withseveral milestone a commercial TASIM consortium EU have beenintalksonestablishing Kazakhstan, Russia, Turkey andthe representing Azerbaijan, China, Major regional telecomoperators, Super Highway (A/res/64/186). Transnational Eurasian Information adopted aResolutiononthe Session oftheUNGeneral Assembly 2008. InDecember2009, the64th establishment of TASIM inNovember Azerbaijan proposed the Eurasian markets. tofast-growingcomputing services provision ofmultimediaandcloud companies abroad, enabling effective connectivity theiroperating for 31
ChapterChapter 3 ENDNOTES
Chapter 3 1. Outcome Document of the Rio+20 Summit, available from: www.uncsd2012.org/ 2. Jyotsna Puri et al. (n.d.) A Study of Connectivity in Millennium Villages in Africa available at: www.mobileactive.org/files/file_ uploads/ICTD2010%20Puri%20et%20al.pdf. 3. P.34, Thioune, R., Information and communication technologies for development in Africa. Ottawa: International Development Research Centre. Council for the Development of Social Science Research in Africa, 2003, available at: www.omec.uab.cat/Documentos/TIC_ desenvolupament/0002.pdf. 4. Hugh G. Jagger, “Education Empowered by ICT - The World’s Best Investment?”, p.263, in Harnessing the potential of ICT for education a multi-stakeholder approach ; proceedings from the Dublin Global Forum of the United Nations ICT Task Force. 2005, available at: www.tcpdpodcast.org/briefings/ict4education_ebook. pdf 5. M. Madhavan Nambiar, “ICT for Education: The Experience of India”, P. 20, in Harnessing the potential of ICT for education a multi-stakeholder approach ; proceedings from the Dublin Global Forum of the United Nations ICT Task Force. 2005, available at: www.tcpdpodcast.org/briefings/ict4education_ebook.pdf 6. Azim Premji Foundation, vision statement, available at: www.azimpremjifoundation.org/Our_Vision 7. P.34, Thioune, R., Information and communication technologies for development in Africa. Ottawa: International Development Research Centre. Council for the Development of Social Science Research in Africa, 2003, available at: www.omec.uab.cat/Documentos/TIC_ desenvolupament/0002.pdf. 8. GSM Association. 2010. Women & Mobile: A Global Opportunity. www.vitalwaveconsulting.com/pdf/Women-Mobile.pdf). 9. www.childcount.org/about/ 10. “Scaling up Mobile Health: Elements Necessary for the Successful Scale up of mHealth in Developing Countries”, White Paper for Advanced Development for Africa, prepared by Actevis Consulting Group, authored by Jeannine Lemaire. 11. www.childcount.org/about/ 12. www.bozza.mobi/ 13. “Scaling up Mobile Health: Elements Necessary for the Successful Scale up of mHealth in Developing Countries”, White Paper for Advanced Development for Africa, prepared by Actevis Consulting Group, authored by Jeannine Lemaire. 14. “Smart 2020: Enabling the low carbon economy in the information age” The Climate Group on behalf of the Global eSustainability Initiative (GeSI), 2008, available at: www.gesi.org/LinkClick.aspx?file ticket=tbp5WRTHUoY%3d&tabid=60. 15. “The Broadband Bridge: Linking ICT with Climate Action for a Low-Carbon Economy”, a report by the Broadband Commission for Digital Development, available at: www.broadbandcommission.org
32 25. 24. 23. 22. 21. 20. 19. 18. 17. 16. see: www. Ultrafast-Broadband Market”,9July2012,RolandMontagne,iDATE, “Le Marché MondialduTrès Haut-Débit”or“TheWorldwide pressreleeases/2012/BBF_IPTV2012.pdf Forum, availableat: “2011 Broadband Growth FastestinFiveYears”, Broadband subscribers-worldwide/ www.telecompetitor.com/report-more-600-million-broadband- 20 June2012,availableat: Telecom competitorquotingtheBroadband ForumandPointTopic, “ environment”, Suns “Text2Teach connectsstudentstoamore interactivelearning ITU FactsandFigures 2011. today/. com/2009/10/20/education-last-century-and-economic-growth- Glaeser “Education LastCentury, andEconomicGrowth Today” byE Global CampaignforEducation. Global CampaignforEducation. shtml MDG Target 8F, asquotedat: green_manifesto.htm. www.gsmworld.com/our-work/mobile_planet/mobile_environment/ GSMA. 2009.Mobile’s Green Manifesto.November. Report: More than600MillionBroadband SubscribersWorldwide . , 20October2009at:www.economix.blogs.nytimes. blog.idate.fr/?p=2871 tar-Manila,15 March 2012. www.broadband-forum.org/news/download/
www.un.org/millenniumgoals/global. .
dward ”, ”, 33
ChapterChapter 3 EVALUATING GLOBAL GROWTH IN BROADBAND: THE NEED FOR POLICY LEADERSHIP
How can the benefits of broadband U.S. all recently reviewed their be extended to the world’s telecommunication frameworks. The population? One answer lies in European Commission adopted a policy leadership (Featured Insight Communication outlining common 10). Action and investment to boost rules within which EU and national access to broadband are more likely policies should be developed to when they are based on clear policy meet broadband targets, and today leadership, comprising a national almost all EU Member States have broadband plan1 or project investing broadband strategies which they in the national roll-out of broadband2 are actively implementing. The EU and/or the inclusion of broadband Communication was adopted along 4 in countries’ Universal Access with a Recommendation on Next- and Service (UAS) definitions. The Generation Access Networks to clear statement of policy objectives encourage investment through clear and/or targets may often (but not regulatory measures, together with always) take the form of a National a proposal for a Radio Spectrum Broadband Plan. Policy Programme3. Switzerland has concluded no change was Broadband policies are sometimes necessary to its own forward framed in the context of a national looking telecom policy objectives4. vision document or broader Information Society strategy (this National broadband strategies can was often the case for earlier be used as a vehicle for cross- policy objectives set out between sector collaboration and cross- 2000 and 2007). The advantage ministry coordination supporting of these broad plans is that they a common vision and enabling often consider linkages between broadband applications and broadband and other sectors. services to develop most effectively.
Regardless of form, policy However, many current regulatory objectives should be consistent and policy institutions often still over all national territory and work in a ‘silo’ approach, making ensure coordination at the regional decisions in isolation without regard and local levels and be updated to other sectors. Policy-makers regularly, to better guarantee must come together to formulate successful outcomes. common strategies on a converged ICT policy aligned with other policy For example, the European areas such as energy, health, Commission, Australia, New education and climate to maximize Zealand, Switzerland and the the impact of ICTs. 34 Chapter 4
FEATURED INSIGHT 10: • Provide an enabling environment THE NEED FOR POLICY for private investment to flourish. LEADERSHIP Policy leadership provides the Over the last few years, country structure to identify constraints, leaders, communications ministries opportunity gaps and actions around and national regulators have made the supply and demand of broadband broadband a policy imperative. deployment and adoption, where This rising trend in strategic the components of network broadband policies is driven by infrastructure, user skills, government growing recognition of the impact use and promotion, applications of broadband on national goals. and content creation all play roles Empirical evidence demonstrates in a mutually reinforcing system. For the effects of broadband on example, in 2010, the U.S. Federal increasing economic growth (through Communications Commission productivity gains and employment), introduced the National Broadband fostering social inclusion and Plan6. At the time, it was one of the engagement, positively impacting first comprehensive country level environmental sustainability (as attempts to spur broadband adoption highlighted in the recent report, by focusing on both supply and “The Broadband Bridge: Linking ICT demand issues and by identifying with Climate Action”5). The number challenges, opportunities and of broadband plans and policies, actions at the local, regional and as tracked by the ITU, has steadily national levels. In the same year, increased since 2008. the UN Broadband Commission was formed to boost the importance 119 Governments have now of broadband on the international adopted broadband plans (Figure policy agenda and leverage 6a) and have taken a range of roles connectivity to help meet the MDGs. leading to the question: what is the appropriate role of governments in Governments play a crucial role in driving deployment and adoption? enabling a business environment Governments play a critical role where broadband deployment in convening the private sector, and adoption can grow rapidly. By public institutions, civil society ensuring a fair and dynamic market and individual citizens to outline a where barriers to entry are low and vision for a connected nation. Policy competition is healthy, governments leadership is necessary to: can encourage private sector • Highlight the role of broadband in investment. And by implementing national development; demand-driven programs such as e-government platforms, digital • Establish a forum for dialogue and literacy initiatives and connected encouraging work across Ministries public institutions, governments and sectors; enable the broadband environment • Set an agenda that outlines policy by both stimulating investment and goals and targets; and spurring Internet adoption. 35 Strong policy leadership to catalyze FEATURED INSIGHT 11: broadband adoption through DESIGNING NATIONAL orchestrating plans and enabling BROADBAND PLANS
Chapter 4 investment does not have to mean active government build out and The design of national broadband operation. In most cases, private programmes should focus on three firms build and operate networks components: more efficiently. Governments should consider direct investment only in 1. Developing human skills to cases of market failure such as in increase demand for broadband rural areas where financial returns are services: Countries should low or non-existent. While national undertake comprehensive strategies broadband policies are critical best suited to national conditions components of country development and requirements. In Latin America, strategies and the structures of countries can commit to digital national broadband plans can vary literacy along the lines of the Plan widely, a common crucial element Inter-Americano promoting basic is government involvement and literacy, connecting schools, training leadership. Governments play key teachers and getting laptops to roles in convening, enabling and schoolchildren. Governments can orchestrating policy. also look to adopt other initiatives that have proved successful in Source: Dr. Robert Pepper, Cisco. expanding digital literacy, such as linking national e-gov portals to existing government services, Broadband strategies, whether programmes to increase the business designed by policy-makers use of digital applications by SMEs and integrating e-health into or public institutions, must government services. Incentivizing consider the market dynamics content creation, innovation through of supply and demand. Better application development and broadband infrastructure and services, and bringing content access are inherently spurred by closer to end-users (e.g., localizing advances in, and the availability information) are also key. of, digital services, education 2. Deploying telecom and e-government access. All infrastructure in coordination with stakeholders in the ICT value chain private industry: Governments can must be taken into consideration, promote broadband deployment by: if the benefits of broadband are to (1) reducing taxes and import duties be fully realized. A policy focusing on broadband services and terminals; solely on one side of the market is (2) carrying out auctions or beauty contests of spectrum suitable for 2G, unlikely to prove successful. 3G and 4G (where available) quickly, and not waiting for completion of the Similarly, market conditions differ, digital TV switchover to auction the and must be taken into account. 700 MHz band for mobile broadband; A “one size fits all” approach is and (3) using Universal Service Funds ill-advised for the communications (USFs) to finance critical broadband sector, where inappropriate national infrastructure. policies can foster or undermine 3. Improving legal and regulatory crucial private investment in frameworks to improve the enabling broadband infrastructure. An environment for accelerated extensive and detailed cost-benefit broadband deployment and to vastly approach should be adopted expand coverage among individuals, before implementing any legal and households and businesses. Increasing regulatory changes in this dynamic regulatory certainty and lowering and evolving sector. Featured barriers to market entry are also key. Insight 11 considers key factors to Source: Inter-American Development Bank. be taken into account in designing national broadband strategy.
36 4.1 (Featured Insight12). for theU.S.Federalgovernment by implementinga“digonce”policy infrastructure throughout theU.S. the constructionofbroadband an ExecutiveOrder President Obamarecently issued broadband deploymentfurther, 2010, andinaneffort tospeed its NationalBroadband Planin than envisaged.TheU.S.launched be more challengingorslower progress inimplementationmay countries withplans,achieving policy inplace.Further, ofthose of broadband plan,strategyor 62 countriesdonothaveanyform near future (Figure 6a). However, to introduce suchmeasures inthe 12 countriesor6%are planning promote broadband; andafurther national plan,strategy, orpolicyto of allcountrieshavedevelopeda world. Today, some119or62% aroundand Governments the understood bypolicy-makers policy leadershipisnowclearly The importanceofnational in UniversalAccess/Service(UAS)Definitions. national broadband planorstrategyincludebroadband
universal –by2015,allcountriesshouldhavea Advocacy Target 1:Makingbroadband policy 7 toaccelerate Commission (FCC). Source: U.S. Federal Communications across theU.S. and more than10,000buildings and includestracts ofland, roadways, managed by the Federal Government, order allpropertiesThe affects (http://permits.performance.gov). Infrastructure Projects Dashboard on theU.S. Government’s Federal projects belistedandtracked regional broadband deployment websiteson departmental andthat and leaserequirements belisted also requires thatFederal assets much easier. ExecutiveThe Order approval ofinfrastructure projects hurdles andmake submissionand follow thatwilleliminatebureaucratic broadband stepsfor to uniform firms theleasingofpropertyfor and consistent federalcontracts process will alsoberequired todevelop a construction. Federal agencies or otherproperty are already under deployment activities where roads broadbandagencies tofacilitate the U.S. by requiring Federal deployment ofbroadband throughout initiative isdesignedtohelprapid along U.S. highways. The “Dig Once” deployment onfederal landsand tobroadbandbarriers infrastructure aimed atlowering governmental issued anExecutive Order in2012 In theU.S., President Obama ONCE” U.S.ORDER TO “DIG EXECUTIVE FEATURED INSIGHT12:
37
ChapterChapter 4 Progress on policy leadership 36 out of the 99 countries included is relatively recent. Today, a broadband in their definition of UAS. small but growing number of This is a dramatic improvement Chapter 4 countries are including broadband on the situation five years earlier, in their definitions of universal when just 21 developing countries service (Figure 6b). For example, included Internet dial-up in their Singapore’s USO for its next UAS definitions and only one generation fibre broadband services included broadband. Including will start on 1 January 2013. In broadband in definitions of universal 2010, 99 or two-thirds of the 144 access and universal service developing countries had a universal implies a degree of maturity in access/service (UAS) definition. Of communications policy and signals those, 49 had included Internet dial- a policy commitment to digital up within their definition, but only inclusion for all.
Figure 6: Policy Leadership in Broadband
Figure 6a: No; Countries with National 62; 32% Broadband Plans, World, 2011
Source: ITU.
Yes 119; 62%
Planning to; 12; 6%
Figure 6b: 140 Countries with Policy Instruments to 120 Promote Broadband None National broadband plans Source: ITU. 100 Note: Left chart based on data Both a plan and a UAS for 185 countries. 80 including broadband UAS definition includes broadband 60 umber of countries
N 40
20
0 Developed countries Developing countries 38 regulators oftheircommitmentto andsignals byGovernments speed isthattheyprovide clear targets forcoverageandbroadband The advantageofsettingnational right foritscitizensin2010. further andmadebroadband alegal Finland (Figure 7).Finlandwenteven priority –forexample,Denmarkand universal serviceasanationalpolicy number ofcountrieshavespecified in theboldnessoftheirtargets.A technologies. Countrieshavevaried speeds; sometimeswithspecified specified years;oftenwith in phaseswithrolling targetsfor groups andcommunities–often broadband topopulationsorpriority often provide targetsforrolling out To date,nationalbroadband plans Coverage (% population or households) Figure 7:Targets setbyNationalBroadband plans 100 10 20 30 40 50 60 70 80 90 0 0 SPAIN 2011 EU 2010 UK, FRA 2013 AUSTRIA 20 B roadband Speed(Mbps) REP 2020 SLOVAK 40 social andpublicpolicyobjectives service obligation(USO),embodying also includeatypeofuniversal infrastructure. Nationaltargetsmay establishing advancedandmodern Digital EconomyStrategy. review ofpoliciesinitsNational Network (NBN)aspartofabroader introducing itsNationalBroadband specific experienceofAustraliain Featured Insight13considersthe than abstractandoverlyambitious. remain relevant andrealistic, rather rural areas). Targets alsoneedto of certainareas (e.g.forremote or account theneedsandgeography blunt toolthatcanfailtotakeinto national targetsdonotbecomea should takecare toensure that markets. Inthisregard, countries within commercial andcompetitive (H-H) GER 2014 60 80 FIN 2016,DEN2020 AUSTRALIA, US EU 2020(H-H) SPAIN 2015 SWE 2020 SWE 2015 EU 2020 NZ 2019 100 39 & 100MBfor50%ofhouseholds. 2020 of30MBforallhouseholds EUhasadualobjectiveThe for Mbps and7%at 12Mbps. 100% coverage, with93% at 100 Note: Australia’s targets specify Source: ITU.
ChapterChapter 4 FEATURED INSIGHT 13: ambitious project transforming how AUSTRALIA’S NATIONAL services are delivered and offering DIGITAL ECONOMY STRATEGY unprecedented opportunities for & NATIONAL BROADBAND growth. The NBN is the biggest Chapter 4 NETWORK telecommunication reform in Australia’s history, because it delivers Today’s communications rely separation between wholesale increasingly upon broadband. Like and retail service providers. NBN water, roads, rail and electricity, Limited (NBN Co) is the company the Governments around the world Australian Government established now recognize that broadband is to design, build and operate the fundamentally important for the network, which is offering wholesale economic growth of all nations. services to providers on an open The formation and implementation access, equivalent basis. In turn, of Australia’s telecommunications these service providers are offering and infrastructure policy is partly retail services to consumers. A defined by our unique geography. uniform national wholesale access Australia is vast in distance and price has been established across all sparsely populated, but Australians technologies for the basic service. pride themselves on overcoming This means fairer infrastructure the challenge of isolation for access for service providers, greater communications service delivery retail competition and better services with determination, tenacity, and for Australians whether located in the innovation. Our landscape means city or in regional Australia or more Australians are often forced to think remote areas. big and make it work. The NBN optic fibre roll-out is So in meeting the communications well underway, with commercial challenges of today, we again aimed services already available in twelve high, building a world-class National communities. More than 3.5 million Broadband Network (NBN) that will homes, schools and businesses will provide all Australian premises with be or are underway to receiving NBN access to high-speed broadband. optic fibre services by mid-2015. By Australia’s NBN will use optic fibre the end of its 10 year roll-out, the NBN capable of providing broadband will provide access to high-speed speeds of up to 1 Gbps to 93% of broadband for all premises. We have premises, and a combination of also launched an interim satellite next-generation fixed wireless and service before the launch of a satellite technologies providing peak dedicated, long-term satellite service speeds of 12 Mbps to 7% of premises. in 2015. The first fixed wireless Every home, school, medical facility, services are now available in regional business, and government service in areas and the network will be fully Australia will have access to the NBN. completed in 2015.
We announced the NBN in 2009 for In parallel to the build-out of NBN, a number of reasons. Australia was the Australian Government has falling behind other developed pursued significant legislative and countries in terms of broadband regulatory reforms to ensure the penetration – a critical concern given telecommunication sector provides the competitiveness of our region. competitive and innovative services Our broadband was delivered over to consumers. Landmark reforms an ageing copper-based network have been achieved in the structure and was not uniformly available. of the industry, the access regime, The benefits of competition in the and the strengthening of consumer telecommunication market were not safeguards. The incumbent carrier, being fully realized. Telstra, will separate its fixed line monopoly through an enforceable The Australian Government identified undertaking, approved by the nationwide, reliable, and affordable competition regulator, and high-speed broadband as key to our will no longer be a future, so the NBN was launched as an vertically-integrated supplier.
40 NBN. demonstrating thepotentialof towards thegoals, includingseveral initiatives thatwillassistprogress by 2020. StrategyThe outlines a world-leading digitaleconomy eight goalsAustralia for tobecome Economy Strategy, which lays out also released theNationalDigital of theNBN, theGovernment has Australia canmaximize thepotential reforms.as thebasisofnecessary So new arrangementsclear guidancefor recently concluded, which provides effectiveness ofexisting policy ConvergenceThe Review ofthe media andcommunicationssector. of thepolicyframework our for Government hasinitiatedreform enabled economy, theAustralian unlock thepotentialofabroadband- with theroll-out oftheNBN. To fully an extensive overhaul intandem sector inAustralia hasundergone In short, thetelecommunication lives seamless. AustralianThe between ourdigitalandphysical the NBNwillrender thetransition Economy, Ihave nodoubtthat Communications andtheDigital Broadband,As Ministerfor Australia. & theDigitalEconomy, Government of Minister forBroadband, Communications Source: Senator theHonStephen Conroy, when we aimhigh. proven we are atourmostinnovative is ambitious... has but ourhistory telecommunications history. Yes, it deliver aswe enteranew era inour on thepossibilitiesNBNwillsoon behind us, we cannow concentrate impediment ofthepast. With allthat rest oftheworld willnolonger bethe other andfrom theregion andthe oceans thatseparate usfrom each profound. hugeThe tracts oflandand economically andsocially, willbe Australia,the implicationsfor both Government isproud oftheNBN. And 41
ChapterChapter 4 Advocacy Target 2: Making broadband affordable 4.2 – by 2015, entry-level broadband services should
Chapter 4 be made affordable in developing countries through adequate regulation and market forces (amounting to less than 5% of average monthly income).
The price of broadband access Progress towards this target has plays a critical role driving been encouraging. For example, broadband diffusion and is a key between 2008 and 2009, 125 barrier to extending access to countries saw reductions in access broadband in developing countries. prices, some by as much as 80%. While broadband is becoming more Over the last two years, prices for affordable around the world – prices fixed broadband have dropped have fallen by over 50% over the by 52.2% on average and mobile last two years in some countries – it broadband prices by 22%9. In nonetheless remains unaffordable in Africa, where a number of undersea many parts of the developing world. cables are due to, or have already, come online between 2010–2012, Huge discrepancies in affordability prices have dropped significantly, persist. In 2011, the price of fixed and are expected to continue falling. broadband access cost less than 2% of average monthly income Policy-makers can address in 49 economies in the world, affordability in a number of ways, mostly in the industrialized world. including regular monitoring, Meanwhile, broadband access cost regulation, the introduction of more than half of average national subsidies, increased competition, income in 30 economies; in 19 of and tiered services. A number of the LDCs, the price of broadband national plans recognize affordability exceeds average monthly income as a key policy priority, including (ITU, 20128). By 2011, there were Hungary’s National Broadband 48 developing economies where Strategy, Nigeria’s National ICT entry-level broadband access cost Policy, and the U.S. National less than 5% of average monthly Broadband Plan. Nevertheless, income, up from just 35 the year genuine competition is widely before (Figure 8). recognized as the most effective means of lowering prices to date.
Figure 8: Fixed broadband sub-basket for Developing Countries, 2011
30 5% threshold. By 2015, most developing countries should 25 have reached the threshold.
20
15 30
22 10 18 15 Source: ITU. Number of developing countries 5 9 6 0 42 0 to <2 2-5 6-10 11-20 21-50 >50 Fixed-broadband sub-basket as a % of monthly GNI per capita 4.3 % developing countries,2002-2015 Figure 9:Proportionaccessin ofhouseholdswithInternet accessattheendofhad Internet two thirds ofhouseholdsalready In developedcountries,more than home performbetterinschool. children accessat withInternet elderly. Research hasshownthat male orfemale,children, adults,or they havejobs,gotoschool,are have access–nomatterwhether home, allhouseholdmemberscan ways ofbringingpeopleonline.At at homeisoneofthemore inclusive Access tobroadband ortheInternet fixed ormobile). access(eitherdeveloping countriesshouldhaveInternet 10 15 20 25 30 35 40 45 0 5
2002
broadband –by2015,40%ofhouseholdsin Advocacy Target 3:Connectinghomesto 2003
2004
2005
2006
2007
2008
2009 Annex 5. national rankingsinthistarget,see seen overtheperiod2010-11.For to achievethistargetby2015is growth inhouseholdaccessneeded policies. Interestingly, thestronger needs tobesupportedbypublic to drivinggrowth inthisarea, and Privateinvestmentis vitalInternet. especially withtheriseofmobile to increase significantlyby2015, (Figure 9).Yet thisproportion islikely households inthedevelopingworld 2011, compared toaround 20.5%of
2010
2011
2012 20.5%
2013
2014
2015 40% 43 internet be connectedtothe households should By 2015,40%of Source: ITU.
ChapterChapter 4 Chapter 4 Advocacy Target 4: Getting people online - by 4.4 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in LDCs.
By the end of 2011, some 2.26 24% in 2011 and at just under 6% billion people were using the in the world’s LDCs (Figure 10). At Internet, a figure which suggests current growth rates, Internet user that around a third of the world’s penetration is unlikely to achieve population is now online. The this target, but further impetus is Boston Consulting Group (BCG) required to achieve it. The question predicts that global Internet is whether mobile broadband will users will reach 3 billion in 2016, deliver the extra growth in access significantly boosting the proportion needed. For national rankings in this to around 40%10. In the developing target, see Annex 6. world, Internet penetration stood at
Figure 10: Internet user penetration, 2000-2015
100
90
80 World 70 60% of global Developing 60% population should 60 LDCs be online 50% 50
40 32.5% Per 100 inhabitants 30 24.4% 20 15%
10 6% 0 Source: ITU.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
44 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. ENDNOTES Consulting Group (BCG)Report,March 2012. “The ConnectedWorld:EconomyintheG20”,Boston TheInternet “ICT FactsandFigures”, ITU,Geneva,2011. “Measuring theInformationSociety”,ITU,Geneva,2011. make-broadband-const?goback=%2Egde_135547_member_124845613 office/2012/06/13/we-can-t-wait-president-obama-signs-executive-order- House press release, availableat: Broadband ConstructionFasterandCheaper”,13June2012,White “We Can’t Wait: President ObamaSignsExecutiveOrder toMake www.broadband.gov/plan/ pdf www.broadbandcommission.org/Documents/Climate/BD-bbcomm-climate. org/10.1787/5kg9sr5fmqwd-en Papers, No.181,OECDPublishing,availableat:www. OECD (2011),“NationalBroadband Plans”,OECDDigitalEconomy guidelines/index_en.html See www. national infrastructure (ITUConfronting theCrisis,2009). date, overfiftycountrieshaveannouncedpublicsectorinvestmentsin specific oroperationalinvestmentsinnationalbroadband backbones.To distinct from nationalbroadband projects, where countriesmaymake National broadband plansreferring tohigh-levelpolicyleadershipare documents/03-Broadband%20Policies-E.pdf Expert, availableat: Strategies andPlans,byRobertHorton,SeniorTelecommunications See GSR2011DiscussionPaperonSettingNationalBroadband Policies, ec.europa.eu/competition/consultations/2012_broadband_ www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR11/
. www.whitehouse.gov/the-press- . dx.doi.
45
ChapterChapter 4 ACHIEVING DIGITAL INCLUSION FOR ALL: INVESTING IN INFRASTRUCTURE
Given the economic benefits of Connecting new subscribers and broadband, making broadband handling the data explosion can be services available and affordable for achieved by: regulatory flexibility all has become vital for economic leaving operators greater freedom growth and social welfare. This of choice; improved and more chapter explores the factors advanced technology; better usage creating a positive environment for of spectrum; the introduction of broadband investments. In order small cells (Featured Insight 15); to foster broadband deployments, and new and improved network regardless of the source of configurations; among other factors. financing, operators must invest 5 Investing in broadband is a complex in infrastructure efficiently and optimally to make best use of challenge. National priorities for available resources in the current broadband availability tend to be challenging economic climate. long-term in focus, but the needs and returns of short-term capital Different infrastructure layers need investments also need to be to be addressed separately from a taken into account. A network is policy and financing perspective, composed of three distinct layers rather than using a “one size fits all” with very different characteristics approach. Indeed, new investment in respect to their cost and return models are needed to connect new on investment. The first layer, the subscribers, and to drive expansion passive layer (civil works and dark in capacity in order to handle the fiber), can account for up to 80% anticipated explosion in data over of the cost and has a payback the years to come. period of approximately 15 years To date, the private sector has had (Table 3). The second is the considerable success in providing active infrastructure layer, where efficient broadband infrastructure in the intelligence of the network many countries, and is well-placed concentrates, with a 5 to 7 year to drive (or follow) technological rate of return. The service layer evolution and evaluate the most has a very different cost structure appropriate mix of broadband and a much shorter rate of return. technologies. Private investments Different sources of financing are need to be facilitated by public best suited to different types of authorities to ensure that a vibrant, investment in different network sustainable private ICT sector exists layers, characterized by different with a long-term perspective. payback periods. 46 Chapter 5
Table 3: Investing in Different Network Layers
Order of Costs Payback Period Examples
70-80% of Trenches, ducts, Passive layer 15 years network costs dark fibre
Active Electronic 20-30% of 5-7 year rate of infrastructure equipment, network costs return layer OSS, BSS
Content, Few months - Service layer N/A services and 3 years applications
Source: ITU, Alcatel-Lucent.
The passive layer underpins the needs to be evaluated carefully on other layers, with longer term rates a case-by-case basis, in order to of return. Depending on market avoid discouraging investment or conditions, it may make sense in undermining competition between some cases to share it voluntarily, different platforms. Today, open co-finance it and make it open. access (opening up network Passive infrastructure sharing can facilities to service providers on fair lower the cost of civil engineering and equivalent terms) is gaining work by sharing network segments momentum as one way of curbing and ducts (the terminals may not market dominance, while protecting need to be replicated). Active incentives to invest (see Featured infrastructure sharing – where Insight 14). When establishing equipment and IT platforms for public policies on broadband business and operations support deployment, public authorities are shared – may be optimal where have to take into account the there is no viable business case. competitive consequences for other platforms (e.g., cable or mobile). For mobile networks, sharing Innovative radio-frequency licensing infrastructure (e.g., sharing schemes, passive infrastructure civil works, passive to active sharing and wholesaling capacity infrastructure, and in some cases, are also important trends even wavelengths or spectrum) to consider. 47 FEATURED INSIGHT 14: Different regulatory practices across OPEN ACCESS IN THE regions illustrate that there is an DIGITAL ECONOMY emerging regulatory consensus on the requirement for open access to Chapter 5 Recently, legacy networks are national broadband infrastructure. proving incapable of supporting Even in the most developed markets, the insatiable growth of bandwidth- the scale and scope of investment hungry applications. New required for broadband networks investments are needed, and on tend to limit the market to one a grand scale, but liberalization dominant provider. Except in the and competition have created most densely populated geographic a fragmented market lacking markets, fibre access pipes remain the economies of scale and the an essential facility or bottleneck, regulatory certainty needed for which duplication is neither to underpin such large-scale commercially nor economically investments in many countries. viable. Together, these characteristics This is not to deny the evident support a thesis of natural monopoly, benefits of competition, but a thesis even stronger in rural fresh regulatory thinking is areas and developing countries. now required for a successful Consequently, regulatory action for transition to the digital economy. broadband networks should seek to ensure access on fair, reasonable Open access is critical in the case of and non-discriminatory terms. publicly-funded national broadband networks and generally needed Open access is especially critical wherever there are actual or potential where broadband and NGA roll-out is economic bottlenecks preventing supported, at least in part, by public competitive supply. However, funding. In such circumstances, open access is progressively less mandated open access can important moving up the layers play a pivotal role in promoting (see Figure below), provided that network investment, in preventing open access is available at the uneconomic duplication of resources, lower layers and there are sufficient and in strengthening competition. incentives in the regulation of open European State Aid rules make this access to encourage investment particularly clear, so the provision in infrastructure. Regulatory and of public funding to broadband policy objectives for services infrastructure projects is dependent and applications in the digital on a commitment to open access. economy should focus mostly on demand leadership, the protection of public interest, and curbing abuse of market dominance.
Open access and the Open Systems Interconnection (OSI) model
Levels in OSI Layers in Open Access model model 7. Application Competition Layer 3: Services and Content 6. Presentation - Competitive supply with little need of open access rules 5. Session
Source: ITU, Trends in Layer 2: Transport Telecommunication 4. Transport - Open access debatable Reform 2012, Open Access Regulation in the Digital 3. Network Economy. Layer 1: Infrastructure - Open access generally 2. Data link required, especially where state funded Regulation 1. Physical 48 investors (includingtheState). Atthe tempered by theneedtosupport the desire openaccesshastobe for capabilities oftheprivate capital, requirements are beyond the above, where network investment solution.be theright Asdescribed open accessitselfmay notalways needtorealizeauthorities that layers ofthenetwork, thenregulatory is maximizingcompetitionatall If thegoal ofopenaccessregulation on thetermsofopenaccess. regulator todrive toohard abargain likely tobecounterproductive the for effects. Inthesecircumstances, itis maximize theeconomicmultiplier maximize investment inorder to penetration, policyshouldaimto ofbroadbandeconomic benefits public investment. Given theproven reduce expected payback onthe In thisregard, onerous terms also the nationalbroadband network. public fundsneededtosubsidize ultimately increases theamountof private investors;for this, inturn, the costsofnetwork infrastructure terms reduce ROIs, they increase Moreover, totheextent thatthese potential investors ininfrastructure. onerous termsare adisincentive for potential returns oninvestment. Such low thatsqueeze the accessprices that are overly onerous, suchas openaccess imposing termsfor ofRegulators needtobewary auction. tipping pointistypically through an viable. meansofidentifyingthis The investment becomescommercially the pointatwhich thebroadband be provided upto, but notbeyond, meansthatsubsidiesshould This themarkets.aid mustnotdistort conditions. Inotherwords, state provided undercompetitive supply of any infrastructure thatcouldbe prohibitEU StateAidrules subsidy withthisissue,concerned asstrict Recommendations are particularly infrastructure investment. EU The of receiving statesubsidiesfor access ismandatedasacondition be taken, example, for when open infrastructure investment. Care must a way astoretain incentives for open accessbeestablished insuch However, itisequally that important only regulatory intervention thatis enforce openaccessrules. The regulatoryfor intervention to market develops, there isnoneed a fully andeffectively competitive other endofthespectrum, where Digital Economy, seewww.itu.int/trends12. Chapter 3: Open Access Regulation inthe Source: ITU Trends in Telecom 2012, Reform their decision-making. the globalregulatory communityin forge bestpractice guidelinestohelp evaluate key regulatory trends and regulatory issuesare debated to www.itu.int/gsr/) atwhich emerging Regulators(GSR,Symposium for at: ITU hostsanannual Global monopolistic framework. backintoapurelythat hasfolded on network infrastructure provision new digitaleconomy isnottorest open accessisparamount, ifthe certainly willvary. Nevertheless, terms andconditionsofaccessmost regulatory modeladopted, andthe access may dependingonthe vary terms. preciseThe ofopen definition andequivalent onfair facilities obtain accesstothenew network or vertical markets, are able to all suppliers, whether inhorizontal success. Openaccessmeansthat is adopted, openaccessiskey to Whichever regulatory strategy or toprevent collusion. competitive mergers oracquisitions law principles, e.g. toprevent anti- occur ex-post usingcompetition required insuchcircumstances may
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ChapterChapter 5 How can we go about connecting In second-tier metropolitan areas, new subscribers? Broadband broadband can be provided through services are usually provided mobile, high-capacity microwave,
Chapter 5 through a mix of technologies, passive optical networks, metro- depending on geography and aggregation optical networks, or IP/ market analysis. In urban areas MPLS. Third-tier “no broadband” with high population density, area is the area that can often private companies are likely to be be served (either in isolation or willing to invest in commercially additionally) by satellite ISPs, viable markets which may be easy particularly under universal service to serve. Infrastructure-based policies. Although fibre backbone competition may also be feasible infrastructure might be preferred for (area 1 in Figure 11). urban areas with high population technologies, satellite technology In some countries, broadband can can play an important role in be provided to densely populated serving remote areas, rural areas major cities and urban areas by or sparsely populated areas, where laying a national fibre backbone the expansion of terrestrial fibre is infrastructure, for example. Many unlikely. countries, including Australia, have government policies about Getting the mix right ensures an extending broadband networks to economical balance to meeting the premises or work with a mix of connectivity targets. Service technologies to suit requirements. convergence around IP-based The use of optical technologies can technologies can support multiple help ensure scalability, reliability, and services, as well as multiple service security in some cases. Leveraging providers sharing the same network. existing infrastructure deployments Such alternatives need to be (such as roads or electricity lines) evaluated case-by-case, taking into can also help create backbone and account competition and market backhaul networks through sharing conditions and cost-benefit analysis, and/or public/private collaboration. to avoid discouraging investment.
Figure 11: Market Analysis for Broadband Provision PRIVATE: Areas of high 1 population density, where infrastructure - based competition is feasible. The main problems are related to 100% the regulatory framework and 3 competition. 90% 2
PRIVATE/PUBLIC: Areas where 80% 2 mobile infrastructure may be the best technological option 1 mobile broadband No broadband for voice and data services. Competition is often feasible on 70% mobile network infrastructures. There are may be regulatory and infrastructure problems. Public Households 60% intervention may accelerate broadband development. >25,000 hh./mun 50% >10,000 hh./mun > 2,500 hh./mun PUBLIC: Areas for Service / 3 Universal Access, which may 40% require a public intervention for developing broadband. The 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% main problem is the lack of infrastructures. Municipalities Source: IDB.
50 Gigabitethernet WIRELESS Figure 12:Functionality&UserExperience 2003 Kuchinsky &Bhatti2000 12, compiledonthebasisofBouch, become frustratedandquit(Figure which atypicalweb-usermay is theaveragetolerancetimeafter suggest that7-8secondsorless important userexperience.Studies objectives, aswelltheall- broadband goalsandtarget into accountlong-termneeds, expectations ofend-users,taking also helpmeetthedemandsand and distributeddatacenterscan Distribution Networks(CDNs), development platforms,Content infrastructure. Openapplication costs andavoidreplication of as muchpossiblecanlower Leveraging existingpassiveassets Source: Intel. FIXED 3.5G Cellular 3G Cellular (jpeg) 4Mbytes Transfer picture 5.0Mpixel 2 , Akamai/Forrester 2006 Ethernet ADSL WLAN Maximum speed ADSL 1000 Mbit/s 108 Mbit/s 100 Mbit/s 14 Mbit/s 2 Mbit/s 6 Mbit/s 1 Mbit/s 1 , King 1s
3 10s 0.3s 0.3s 2s 0.03s 5s ). 16s 16s 8 GBytes Download DVDmovie 7s =valuabletimeforpersontowait 1min 1min 5min 10min 11min question whethertheindustrymay speed services,leadingsometo growth inbroadband andhigh- challenges associatedwithstrong However, there are growing far outstriprevenue growth. that theincrease indatatraffic will consumption rates,Informanotes welcome suchdramaticgrowth in mobile datamarketwouldnormally Telecoms andMedia did in2011,according toInforma ten timesasmuchgamingthanthey times asmuchmusic,andnearly a-half timesasmuchvideo,eight phone usersconsumingsix-and- consumption by2016,withmobile will seeatenfoldincrease in worldwide mobiledatamarket fall victimtoitsownsuccess.The 1hrs 1hrs 1hrs 1hrs 3hrs
40 GBytes Download HDTVmovie 6hrs 10hrs 9hrs 4 . Whilethe 15hrs 18hrs Download time
51 44hrs 89hrs
ChapterChapter 5 The rapid growth of Internet traffic is FEATURED INSIGHT 15: not new – Internet traffic has been THE IMPORTANCE OF continually accelerating since the SMALL CELLS FOR WIRELESS BROADBAND Chapter 5 Internet was launched. Even if the strong growth in mobile data traffic Recent advances in wireless is sustained (Box 2), the majority of broadband technologies offer a data will still have to be transferred variety of solutions for deployment over a fixed-line backbone network, where wired solutions are too making fixed-line backbone expensive or difficult to install, slow to deploy, or not well-adapted to and mobile access networks usage requirements. Small cells complementary. Technology-based offer a cost-effective alternative to developments such as Content macro-only deployments for meeting Distribution Networks (CDNs) and coverage and capacity demands. new Internet Exchange Points (IXPs) They will not replace macro base have resulted in some economic stations, but complement them by efficiencies and have generally optimizing network performances. Due to their size, they can be self- proven helpful, where the regulatory installed (home and enterprise environment has been favorable. cells) or installed by a single person Continuing to meet the challenge of (metro cells). When small cells are traffic growth successfully requires added, they offload traffic from policy-makers to promote regulatory macro networks, increasing available certainty and lower barriers to entry. network capacity without deploying new macro sites. Metro small cells are Accelerating the deployment of a cost-efficient alternative in areas optical fiber networks would help where new macro sites are needed. to solve the increasing challenge of A new priority for policy-makers ensuring the transport capacity of and operators, small cells are raising mobile networks. Currently, mobile some challenges, but provide many networks are based on macro and potential benefits to meet political micro cell layers allowing transport and environmental objectives, capacities of up to 42 Mbit/s per including: cell. The small cell layer could • Small cells allow for superior offer throughput capacities easily network capacity, reduce the footprint of the macro layer in exceeding 100 Mbit/s in radius of crowded urban environments circa 50-200 meters, assuming they and can help improve Quality of are connected to the network via Service (QoS). optical fiber. Featured Insight 15 • Small cell deployments can help describes the potential impact of achieve broadband goals like those small cells on wireless broadband set by the European Commission’s service delivery. Digital Agenda or by President Obama for the U.S. • Smaller equipment installed “invisibly” in dense urban environments can reduce visual pollution and can improve public perception and acceptance. • Small cells can contribute to targets set by the EU Energy Law 2020. Metro cells ensure better capacity where required and better radio links, reducing the output power of user devices, as well as the power radiated by the macro layer. As such, the network provides coverage and capacity in a more efficient and greener manner, with better performance and reduced energy consumption.
52 Source: AlcatelLucent. 18x Traffic increase over5yearsinaWesternEuropean DenseUrbanCity increasing for scenarios network European three cityfor different adenselyfor populated Western coverage, BellLabsran simulations anoperatorfor withgood W-CDMA increase indatatraffic over five years technology.art Assumingan18-fold cell deployments andlateststate-of- demonstrates ofsmall- thebenefits Alcatel-Lucent BellLabsresearch expectations. are deployed tomatchcitizens’ that mobilebroadband services in regulatory frameworks toensure and capacityreflect thistrend plain coverage towards coverage from ofthemobileindustry focus to considerthespeedandchanging Governments andregulators need 100 120 1000 1500 2000 2500 3000 3500 20 40 60 80 500 0 Additional sitesrequired tosupporta18xincrease intraffic over5years 0 macro layeronly macro layeronly Five-year TCO(inM€)forthe3deploymentscenarios W-CDMA W-CDMA 793 112 38% 343 macro +metro macro +metro W-CDMA W-CDMA 69 3005 TCO Savings b. a. of datatraffic: thefuturecapacity tosupport growth Source: AlcatelLucent. by upto45%. reduce totalcostofownership (TCO) macro andmetro cellslayers could and aheterogeneous network with of technologies(WCDMAandLTE) studyThe suggested thatusingamix c. layers. and amixof W-CDMA/LTE metro Deployment ofLTEmacro layer and metro layer; and Deployment of W-CDMA macro layer only; Lay-out ofthe W-CDMA macro LTE &W-CDMA LTE &W-CDMA 221 45% + LTE macro + LTE macro 62 1876
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ChapterChapter 5 Different technologies offer different FEATURED INSIGHT 16: advantages, but it is clear that THE ROLE OF SATELLITE satellite communications offer IN CONNECTING THE NEXT Chapter 5 major potential for deploying BILLION ‘universal’ broadband services Satellite technologies offer rapidly to large numbers of people opportunities for achieving universal (Featured Insight 16). Satellite broadband coverage through the broadband can prove an ideal large coverage achievable via solution in remote areas, rural a single footprint, and the fact that satellite technologies can be areas or large, sparsely populated deployed as soon as the satellite is areas, while satellite technology operational, regardless of terrain, can also provide full coverage in distance or ‘last mile’ infrastructure. rural, as well as metropolitan, areas. Satellite broadband connections Satellite has a major role to play can be deployed rapidly without in achieving universal broadband coverage either in its own right or large investment in terrestrial as a complementary technology, infrastructure – users only need a following these best practices: satellite antenna and a modem to • Including satellite technologies in obtain broadband access. It is also National Broadband Plans. a useful back-up if an undersea fibre • Adopting an ‘open skies’ policy connection goes down, although approach to facilitate competition comparative cost issues still persist and choice for end-users; in some cases. Hence, satellite • Promoting competition and technologies shall continue to play investment in satellite services; an important role in expanding • Avoiding discrimination between broadband access. foreign and national satellite systems, and ensuring that Despite its capital-intensive nature, licensing procedures are equitable the satellite industry maintained and transparent. steady growth rates throughout the • Ensuring full transparency in economic slowdown since 20085. licensing and oversight. This is partly because satellite • Harmonizing licensing frameworks communications can provide at the regional and global levels. broadband Internet connectivity at • Regularly reviewing spectrum virtually zero marginal cost, once availability to service the needs of the satellite is deployed and until satellite communications. the satellite reaches its capacity By addressing these, costs of service constraints, which has made could be significantly reduced in satellite operators good candidates future, with further reductions as for stimulus funding in some new technologies are brought into countries. Some observers perceive use. Capacity-building for policy- today’s satellite solutions as lagging makers, regulators, and operators is fibre and wireless technologies in also helpful in building awareness about satellite technologies. Today, latency, mass throughput, and cost numerous efforts are underway per bit delivered. However, today’s with training offered by various satellite technologies can be very partnerships (e.g., between ITSO/ advanced in terms of reliability, ITU), but more needs to be done. speed of deployment, and security, while the next generation will Resolution 11 (WRC-12) requires ITU-R to carry out studies regarding deliver higher transmission speeds possible regulatory measures competing with other broadband for the use of orbital slots for technologies in speed and costs delivery of international public (Featured Insight 17). telecommunications. This is an important development that could yield significant positive results and enhance the performance of the satellite industry even further.
Source: Mr. José Manuel Do Rosario Toscano, 54 Director-General, ITSO. be upgraded. existing compatible terminalscould unlimited datapackages. VSATs and reasonable cost–e.g., viafixed fee compact andaffordable terminals at 50 Mbpsdelivered globally via bandwidth andspeedsofupto speed broadband withincreased compelling combinationofhigh- andaeronauticalmaritime usersa Ku-band andL-band, offering developed to fully integrate the New technologiesare being and costs. connectivity bothintermsofspeeds with othertypesofbroadband speeds, potentially competing and willdeliver highertransmission of satellitesisunderprocurement security. Indeed, thenext generation reliability, speedofdeployment, and can bevery advanced intermsof per delivered bit. However, satellites latency, massthroughput, andcost fibre andwireless technologiesin today’s satellitesolutionslagbehind Some commentatorsargue that immediately.services users totake advantage ofbroadband in justhoursordays, allowing new most rugged andremote terrains land, VSATs canbedeployed tothe to coordinate theiroperations. On government teams andhumanitarian and reliable communicationsfor applications provide cost-effective attacks. VSATs andsatellite-based more vulnerable todisastersand communication networks may prove of natural disasters, asterrestrial intheevent public for safety platform broadband provides areliable data ontheenvironment. Satellite collection, andanalysis sharing of Broadband the alsounderpins policy andregulatory frameworks. and develop stable andenabling to make broadband policyuniversal business modelsandgovernments todevelopindustry innovative services,Internet requiring the have accesstoaffordable broadband should Consumers inallcountries of universal broadband access. theavailability ensuring vital for Mobile satellitecommunicationsare CHALLENGE THE GLOBALBROADBAND MEETING CONTRIBUTE TO SERVICES WILL BASED HOW BROADBAND SATELLITE- FEATURED INSIGHT17:
for broadband (Featured Insight18). sector toexplore similarinitiatives market haveencouragedtheprivate in drivinggrowth inthemobile experiences withprepaid telephony business modelsabound;positive to end-users.Inspirationsfornew optimal waysofmarketingservices providers mustalsoconsider markets, operatorsandservice providing broadband todifferent technological infrastructure for In additiontochoicesofthebest FRGS, MIISL, Director-General, IMSO. Source: Dr. Esteban Pacha, FNI, FIMarEST, improved efficiency. spectrum personal mobiledevices, aswell as satellite terminals, VSATs and growth indataservices, traditional very highgrowth rates driven by usage. Mobilebroadband isenjoying and increase market penetration and broadband shouldhelpreduce prices in mobile, competitioninmobile In thenext 10-15years ofgrowth
55
ChapterChapter 5 FEATURED INSIGHT 18: added benefits. Students, small- REACHING THE THIRD BILLION business owners, and others want – BRINGING THE PREPAID larger screens, the ability to create
Chapter 5 MIRACLE TO BROADBAND and store content, and other features not available on mobile phones. The Intel World Ahead Program makes 21st century technology In fast-growing developing countries more affordable and accessible for (such as Brazil, China, Indonesia, people worldwide. We work with Malaysia, Mexico and Russia), Governments to implement programs broadband access can account for 60- that increase access to technology 80% of the TCO of a PC. Often, only for all citizens, help improve about 20% of citizens could afford education quality, create local jobs the monthly plans. We decided to and spur economic growth, foster pick eight countries for a pilot study entrepreneurship, lower healthcare of prepaid broadband with entry- costs, and increase access to online level PCs. Working together with services for all citizens. Over two telecommunication companies, PC billion people worldwide now enjoy manufacturers and, in some cases, the economic and social benefits governments, Intel made available of PCs with Internet access. Our bundles of entry-level notebooks, next challenge is to bring similar compelling content, and prepaid access to more than 70% of the broadband, accompanied by exciting world’s population that have yet to advertising, branding and marketing. experience these benefits. The results were staggering! By To reach the next billion users, a the end of 2011, all eight pilots new approach was needed. Our were complete and had proved inspiration came from Sri Lanka and successful. We had delivered more Bangladesh, where we saw billboards than one million PCs plus prepaid advertising 300 MB of mobile broadband packages in the pilot broadband for extremely low prices phase. These large PC volumes of ~$0.45 USD along with inexpensive also encouraged the PC industry to mobile broadband prepaid vouchers. aggressively lower prices to as low The value proposition for customers as $200, and encouraged content was compelling and successful, providers to create exciting new resulting in many new sales. Sri content. For example, in Vietnam, PC Lanka and Bangladesh were utilizing and broadband subscriptions sales the “prepaid miracle” that has helped soared. The major telcos, Viettel make mobile phones ubiquitous and VNPT, offered 700 MB of data around the world. download for just $2 prepaid. At that price, broadband affordability Elsewhere, however, PCs were surged from 12% to 70% of citizens. typically sold with expensive monthly We launched the offer in June 2011 Internet contracts, even for entry- and had sold 150,000 packages in level PCs targeting lower income just three months. To put that in citizens. To calibrate, an entry-level perspective, sales of PCs in Vietnam PC might cost $350 but with a $25/ are typically about 140,000 per month broadband service, the Total month. The additional 150,000 over 3 Cost of Ownership (TCO) amounts to months represented a 30% increase. $1550 over 4 years, unaffordable for More importantly, this helped lower- most of the 3rd billion people. It also income citizens, who might otherwise requires them to commit to extended never have been able to afford a PC contracts, which may be less suitable, and broadband. since their cash flow and future revenues may be uncertain or erratic. Early results from the pilots have shown that boosting access to It was clear that we also have to broadband is about much more than increase the desire for a PC. We just price – it is about delivering found that many of the 3rd billion meaningful content and applications. citizens are not familiar with the In Kenya, entry-level prepaid advantages of PCs with broadband netbooks are delivered with valuable service. However, when presented content, including British Council with the greater capabilities and ‘Learn English’ software, education value of PCs compared to a mobile applications (e.g. Intel® Skoool phone, citizens often desired the and Encyclopaedia Britannica) and 56 • • include: was launched. Key drivers ofsuccess have beensoldsincetheprogram $1 USD. More than500,000packages as low theequivalent as100MBfor of broadband packages, from starting and Vodafone different prepaid offer BSNL, MTNL, MTS, Reliance, TATA, gone viral across India. Aircel, Airtel, their 3Gservice. Sincelaunch, ithas model andtieditwiththelaunchof embraced theprepaid business telecommunication companieshave India’s NationalDay. Allmajor in August2011tocoincidewith India • • drivers ofsuccessinclude: over 200,000packages sold. Key program islive insixprovinces, with tier 4-6citiesandrural areas, the Unicom. Focusing onstudentsin Mobile, China Telecom, andChina telecommunication operators: China in early 2012withthree main China programs include: points from Intel’s worldwide examples ofkeyImportant learning bycountries theendofthis year. We aimtohave programs infifty time.technology thefirst for benefits billion peoplecanafford toenjoy previous cost(seeAnnex 2), over one the TCO oftenreduced to2/3ofthe million packages already sold. With the 3rd Billionin30countries, with3 this year, we have launchedReaching deployment mode. of Sincethestart In 2012, we moved intofull or tablet. betteronaPCthanoverfar aphone thatenhanceslearning,offer andruns data download –avery compelling netbooks comewith1.5GBoffree apps. safety McAfee Inaddition, point of100MBprepaid $1USD. for memorable, withasimpleprice Packages are low costand awareness ofprepaid broadband; purchased prepaid, raising All 3Gconnectionscanbe lower thaninurban. with 2MBdatapackage priced Focus ontier 4-6citiesandrural package offerings; withattractivecarriers broadband Program embraced by allmajor – programThe was launched – programThe was launched Reaching the3 Note: Seealso Annex 2, Intel’s describing Program.Intel WorldAhead Source: Mr. John Davies, Vice-President, developing markets worldwide. affordable new customersin for digital contentmore desirable and of broadband service, PCs, and is makingtechnology packages delivered by Intelandpartners the innovative prepaid salesmodel new approach. We are pleasedthat technology needsnew ideas, anda to beingable toafford valuable world’s populationthatisclose Reaching thethird billionofthe • • • • include: month later. Key drivers ofsuccess MTN Ghanalaunchingaprogram one MTN hasmadeiteasytoscale, with witharegionalPartnering leaderlike many thousandsofschoolchildren. momentum inNigeria, benefitting hascreated atremendousoffering and Intel. Early results show thatthe the largest provider service inAfrica, education. Key are partners MTN, onstudent 2012andisfocused April Nigeria zinoxcard.com) content from Zinox card (www. Additional onlineeducational skoool™, protection. andMcAfee AppUpsm, Intel®PCBasics, Intel® literacy: Encyclopaedias, Intel education, security, anddigital pre-loaded ontoPCsaddressing Comprehensive contentpackage 750 MBand1.5GBfrom MTN; Attractive broadband packages of online educationcompany; from stories folk Ajapa, aleading Local content, includingNigerian – programThe launchedin rd Billion(R3B)program.
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ChapterChapter 5 Are there any ‘hidden’ under- Providing women with access to ICT represented or potentially neglected tools such as mobile phones can lead markets? According to estimates to a better quality of life and wider Chapter 5 from the GSMA and Cherie Blair economic growth (World Bank World Development Report 2012, UNCTAD Foundation, women represent Information Economy Report 2011). nearly two-thirds of the untapped Empowering more women with market for mobile growth. Globally, mobile phones can accelerate social a woman is 21% less likely to own a and economic development (Featured mobile phone than a man (Featured Insight 4). The ‘knowledge economy’ Insight 19). Closing this gender gap is now taking on new and unforeseen would bring the benefits of mobile dimensions, as ICTs and broadband become drivers of social change. phones to an additional 300 million 2 6 women . Mobile operators looking Policy-makers need to pay attention to lead the market in five years’ to the gender digital divide in time should excel at bringing in new designing policies considering female subscribers. accessibility, affordability and digital / literacy. Incentives for content development need to promote FEATURED INSIGHT 19: content catering to the interests and 3 BROADBAND FOR EMPOWERING needs of women, including content Women represent WOMEN focusing on education, health, jobs and economic empowerment, family, nearly two-thirds Women have less access to and community life. Policy also of the untapped technology than men. Despite the needs to encourage women and ubiquity of mobile phones, there girls to embrace technology for their market for mobile is a significant global gender gap own empowerment, to study and growth. Mobile – a woman is 21% less likely to choose careers in this sector, and to own a mobile phone than a man engage passionately in the future of operators aiming (GSMA, Cherie Blair Foundation and broadband. to be market Vital Wave Consulting). Although technology does not perceive gender, Source: H.E. Jasna Matic, Former State leader in five ICTs are not “gender neutral” as Secretary for the Digital Agenda, years time must they may be used in different ways Government of the Republic of Serbia, by men and women and may take quoting the mWomen webpage at: excel at bringing on the gender perspective of their www.mwomen.org/Research. developer from basic content through on new female to use to functionality to beneficiaries. subscribers. More women need to be involved in the ICT industry to ensure that technology is shaped to include the needs of female consumers.
Experience from international policy efforts suggests that gender biases in the information society will persist for the foreseeable future. However, ICTs may give women the opportunity to be agents of their own development. The mWomen report (2011) suggests that women feel safer and more independent and have more economic opportunities when owning a mobile phone. Women are not “waiting” for access to ICTs, but are using ICTs when they are available to get around the constraints they face in society, economy, and politics. Case studies on gender and ICTs from around the world highlight efforts by women and their communities and organizations to overcome the “digital divide” independently. 58 6. 5. 4. 3. 2. 1. ENDNOTES mobile_a_global_opportunity.pdf Consulting, at: WaveGSMA DevelopmentFundandtheCherieBlairFoundation,withVital mobile phonegendergapinlow-andmiddle-incomecountries”,the Pages 6&7,“Women &Mobile:AGlobalOpportunity–studyonthe 2009), ITU,Geneva. “Confronting theCrisis:ICTStimulusPlansforEconomicGrowth” (ITU, “Confronting theCrisis:ItsImpactonICTIndustry”(ITU,2009)and UNIQUEID=f768785b8d &s=ecek,1gmvu,4tun,atp3,792b,lpxj,bqml&MLM_MID=2455770&MLM_ Satellite Today at:www. Informa Telecoms Reportpublished30May2012–availablefrom by Akamai. 30, 2008).ThisisaJupiterResearch abandonmentsurveycommissioned a PoorOnlineShoppingExperience.”AkamaiTechnologies, (accessedMay Akamai. June2006.“RetailWeb SitePerformance:ConsumerReactionto time. New Riders,2003,25.Foundanaverageof8.6secondsfortolerablewait King, A.,2003, that CHI 2000(TheHague,TheNetherlands:April1-6,2000),297-304.Found Beholder: MeetingUsers’RequirementsQualityofService,”in forInternet Bouch, A.,Kuchinsky, A.,andN.Bhatti,“QualityisintheEyeof latency qualityratingsdrop off ataround eightto10seconds www.cherieblairfoundation.org/uploads/pdf/women_and_ Speed UpYour Site:Web SiteOptimization email.satellitetodayproducts.com/c.html?rtr=on
. Indianapolis: . 59
ChapterChapter 5 MULTILINGUAL CONTENT AS A DRIVER OF DEMAND
The vast majority of humanity lives content). Slow development of local in multilingual societies where technical skills and expertise has multilingualism is the norm. The also been reported, with low levels preservation and promotion of of digital literacy and emerging multilingualism are essential to info- and infrastructures creating preserve the vitality of human barriers for marginalized groups to societies, to strengthen dialogue access information and content on between cultures and between the Internet2. Appropriate policy peoples, and to develop openness, responses, structural changes, transparency, mutual understanding, and improved educational systems tolerance towards others, as well as are needed to create a favourable 6 to combat violence and promoting environment for the creation peace. and access to information and knowledge online. As early as 2003, UNESCO adopted a Recommendation concerning There is growing evidence that the Promotion and Use of the creation of digital content and Multilingualism and Universal Access digitization of existing information to Cyberspace by the UNESCO are important drivers of the digital General Conference. In 2005, economy. It is not just about the General Conference further connecting individuals, but asked Member States to report on connectivity and services are driving measures taken by them. UNESCO’s a new digital ecosystem (Booz 2011 Consolidated Report notes & Company3). Digital content in progress in a number of areas, as different languages is an important well as several obstacles1. Globally, driver of demand. Research by Internet services in many Member OECD, ISOC, and UNESCO finds States often remain costly and a strong correlation between local limited in availability and speed. infrastructure and local content Consequently, a full range of (Featured Insight 20). online public services may only be provided to a limited proportion of the population. In addition, the importance of multilingualism is acknowledged in WSIS Action Line C8 (Cultural diversity and identity, linguistic diversity and local
60 Chapter 6
FEATURED INSIGHT 20: The societies primarily concerned THE RELATIONSHIP BETWEEN by the MDGs are generally lower- LOCAL CONTENT AND INTERNET income societies where digital DEVELOPMENT culture is not yet fully embedded, A recent OECD, ISOC, and UNESCO sustaining digital divides. Over study reveals a correlation between recent years, infrastructure the development of network development, growing levels of infrastructure and the growth of local services and new applications have 4 content . Local content is defined helped bridge the digital divide. as being in the users’ own language and relevant to the communities Without appropriate efforts to in which they live and work. The bridge language divides in online study identifies factors present in environments with high levels of local content, returns on investment in content: infrastructure could be significantly • Homogeneity in the local language reduced, due to more limited and national population (e.g., use of the Internet. Content and Korea, Egypt, and China), even a broadband-enabled services in local cultural insularity, explains why the languages, as well as the capacities volume of local content is ahead of of local communities to create foreign content. and share content, are important • The presence of local Internet drivers of the use of broadband Exchange Points (e.g., Kenya and infrastructure by local population. Egypt). • Broadband penetration drives In terms of users, English and lower costs of access and faster Chinese dominate the Internet, network performance (e.g., Rep. of accounting for 27% and 24% Korea). of total global Internet users • For Internet content, successful respectively, with Spanish a distant local language adaptation of global third (8% of Internet users – Figure content solutions such as social networks, microblogging, and local 13). Indeed, if current growth online services (e.g., Kenya, China, rates continue, the total number of and Brazil). Internet users accessing the Internet in Chinese may overtake the number The EURid/UNESCO World Report on of Internet users predominantly Internationalized Domain Name (IDN) using English in 2015. Deployment (see Featured Insight 21) hypothesizes that these factors, as well as the size of population, are among those that affect the rate of IDN uptake in a given country or region.
Source: UNESCO, OECD and ISOC. 61 Another means of analyzing as possible clearly extends the languages on the web is to examine benefits of the digital world to as the number of languages in which many people as possible and offers popular portals or services are important and immeasurable side- Chapter 6 offered (as opposed to used – effects such as diversity and plurality many more language groups may of perspective, and opportunities use a service in their dialect). Of to appreciate the cultures and a potential language universe of views of different communities. The over 6,000 languages (estimates importance of multilingualism online differ, according to the stage of cannot be underestimated (Featured evolution at which a dialect may be Insight 21). considered a separate language), LinkedIn’s services are currently In addition to delivering content available in 17 languages; Twitter’s adapted to local cultures and in 21 languages; Google Translate context, ICTs and broadband can currently offers 63 languages; help to promote and eventually Facebook offers 70, and Wikipedia “safeguarding” endangered is available in 285 (Figure 14). languages5 – see, for example, Maintaining popular services the UNESCO Atlas of the World’s in as many different languages Languages in Danger.6
Figure 13: Top Ten Languages on the Internet (May 2011)
English 565.0
Chinese 510.0
Spanish 165.0
Japanese 99.2 Portuguese
German 75.1
Arabic 65.1 French 59.8
Russian 59.7
Source for both graphs: Korean 39.4 % of total global Internet users, Rest 378.5 Internet World Statistics: www.internetworldstats.com/ 100 200 300 400 500 600 stats7.htm Millions
English Rest 565.0m; 27% 378.5; 18%
Korean 39.4m; 2% Russian 59.7m; 3% French 59.8; 3% Arabic 65.1m; 3%
German 75.1m; 3% Portuguese 82.6m; 4% Chinese Japanese 510.0m; 24% 99.2m; 5% 62 Spanish 165.0m; 8% Figure 14:TheWeb ofManyLanguages,mid-2012 registration eligibility. policies onregistrars, pricing, and TLD registries shouldreview their introduction ofIDNsatthetoplevel. transparent processes the tofacilitate IDNs,for andadoptinclusive, adoption ofemailfunctionality standardsInternet tohastenthe could implementtheavailable policy level andlocal capacities, consideration decisionsmade atthe technicalcommunity,The takinginto literacy. an essentialcomponentofdigital orregionof IDNsintheircountry as the deployment andraise awareness to developing strategies topromote Policy-makers mustgive attention following: For thistohappen, itimpliesthe development opportunities. and provide new socio-economic and culturally diverse content increase accesstolinguistically would and on theInternet facilitate fully appreciated. Multilingualism languages onlineneedstobemore thegrowth tofoster necessary oflocal oftheecosystem as avitalpart on theInternet, therole ofIDNs In order topromote multilingualism NAMES (IDN INTERNATIONALIZED DOMAIN FEATURED INSIGHT 21: s ) languages supportedbyGoogleSearch -June2009 languages inGoogleTranslate -June2011 Estimated numberoflocalizedlanguages languages usedbyFacebook-mid2012 languages recognized byWikipedia languages stillinuseworld languages usedbyTwitter languages onLinkedin 6,000 345 285 500 70 70 17 17 63 63 21 21
• IDNs.for include: Itsfindings challenges toachieving universality World reviews Report thegeneral countries. EURid/UNESCO2012 The usersinsome Internet for experience IDNs isnotalways asatisfactory However, registering andusing index-idn.html). (see https://charts.icann.org/public/ and23different languages territories representing and 21countries ccTLD have beenintroduced, of IDNinNovember 2009, 31IDN infrastructure. Sincetheintroduction of enabling environment and a benchmarkthecreation for prerequisite andcanserve as IDNs shouldbeseenasanimportant enabler oflocallanguage content. the potentialofbroadband asan countries, andIDNscanstrengthen manyBroadband for isahighpriority • • • countries. domain namesintheirrespective about availability oflocalIDN from localdomainnameregistrars tocustomers Limited information creation ofuseraccounts. applications andwebsites inthe IDNsinpopular Poor for support challenge. 2012; implementationremains a technical standards occurred in IDNs. Publication ofrelevant Lack ofemailfunctionalityfor IDNs. for a consistentuserexperience browsersInternet donotprovide 63 used. languages inwhich Twitter is available –notthenumber of in which is Twitter userportal Note: Numberoflanguages you-to-indic.html, 21June2011. google-translate-welcomes- you-to-indic.html#!/2011/06/ google-translate-welcomes- blogspot.com/2011/06/ 5 more: www.googleblog. about/intl/en_ALL/ plus - www.translate.google.com/ Toolkit 58languages onGoogle 285-Languages-to-Translator- article/2051705/Google-Adds- www.searchenginewatch.com/ 2012; 35in2009 com/cms/node/1810 16May Source: www.translate.twttr.
ChapterChapter 6 Until these challenges are overcome, despite having strong infrastructure, IDN popularity will lag behind that of Qatar’s linguistically heterogeneous ASCII domain names. society means that English is used
Chapter 6 for many transactions, impacting the It is evident that the uptake of IDNs uptake of IDNs. Saudi Arabia has no in some regions (e.g. the Russian IXPs or local language adaptations of Federation and the Rep. of Korea) is content solutions. higher than in others. The EURid/ UNESCO 2012 World Report on IDN The Rep. of Korea and the Russian Deployment explores this disparity Federation score highly for ccTLD in deployment and concludes that indicators, with strong local registrar language, culture and infrastructure bases, liberal registration policies, factors on the one hand, and ccTLD low prices, and a long-established factors on the other, combine to ccTLD registry. In contrast, the Saudi impact IDN take up in a region. Arabia ccTLD has no registrars, and Country indicators include: Linguistic high retail prices. Qatar, despite and cultural homogeneity; local its liberal registration policies, has IXPs; overall broadband penetration; recently re-established its ccTLD Successful local language adaptation (brand), and 80% of its registrars of global content solutions; and size of are international rather than locally population. ccTLD indicators include: based. Egypt has a network of local a strong network of local registrars; registrars, but high prices limit the liberal registration policies; low ccTLD’s uptake. This analysis does prices; and how well-known the not intend to make any judgment ccTLD brand is. on registries, their policies, or operations. These factors are solely The Russian Federation, the Rep. of considered on the basis of their Korea, and China all have strong contribution to high volumes of IDN country indicators. In contrast, registrations, as shown in this matrix:
IDN readiness matrix
.cn .kr
High .eg .ru
Low ccTLD factors High country/language Favourable IDN rating
.sa Country / language factors
.qa
Source: UNESCO, from the High ccTLD factors
EURid/UNESCO 2012 World Low Low IDN rating Low country/language Report on IDN Deployment.
Low High
ccTLD factors
64 6. 5. 4. 3. 2. 1. ENDNOTES access prices”, 2011, a collaboration between the Internet Society,access prices”,2011,acollaborationbetweentheInternet “The relationshipdevelopmentand betweenlocalcontent,Internet of-Digitization.pdf at: “Maximizing theImpactofDigitization”,Booz&Company, available www. images/0021/002108/210804e.pdf. Access toCyberspace”,availableat:www.unesdoc.unesco.org/ thePromotionconcerning anduseofMultilingualismUniversal States fortheImplementationofRecommendation “Second ConsolidatedReportontheMeasures takenbyMember atlas-of-languages-in-danger/ www.unesco.org/new/en/culture/themes/endangered-languages/ UNESCO AtlasoftheWorld’s LanguagesinDanger, availableat: com/ Further informationcanbefoundat: CI/pdf/local_content_study.pdf available at: (OECD) andUNESCO,presented attheIGFNairobi, 2011,and the OrganisationforEconomicCo-operationandDevelopment www.booz.com/media/uploads/BoozCo_Maximizing-the-Impact- unesdoc.unesco.org/images/0021/002108/210804e.pdf www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/CI/
. www.endangeredlanguages.
65
ChapterChapter 6 POLICY RECOMMENDATIONS TO MAXIMIZE THE IMPACT OF BROADBAND
Strategies to increase broadband actions or policies and their impact adoption and use must take into on the cost to consumers of account the full range of government services, devices and relevant apps.
Explore fresh approaches to spectrum 7.1 management
7 Delivering universal and affordable governments’ overall broadband broadband access can only be policy portfolio. fully achieved through a balance of technologies and policy approaches Defining joint coverage obligations appropriate to specific situations. can also help to fulfill coverage goals The growth rate in global mobile more efficiently. Depending on which data traffic is projected to reach spectrum bands have already been 60% annually from 2011-2017, assigned, simultaneous auctions of which will result in a 15-fold different bands (high and low bands) increase in traffic by 20171, mainly may be helpful, but are unlikely due to video traffic. Growth in data to be available in many countries. consumption will also be driven by Care must be taken to give auction growth in smartphones, tablets, winners the ability to meet coverage portable and mobile PCs. Such an requirements in alternative ways. Note: This chapter has been explosion in data traffic requires contributed by Antonio García more spectrum. In this regard, Today, policy-makers are also Zaballos, Lead Specialist in considering fresh approaches to Telecommunications and policy-makers and regulators Broadband Platform Coordinator can help to create a supportive spectrum management, including at the Inter-American environment and encourage Dynamic Spectrum Access. Development Bank (IDB), and also While exploring fresh approaches draws on sources from the GSR investment and ensure sufficient Best Practice Guidelines available availability of quality spectrum to spectrum management, it is from: www.itu.int/ITU-D/treg/ (Featured Insight 22). Optimizing essential to take into account bestpractices.html/ approaches to spectrum policy, the expected spectrum needs of allocation, and management different services (e.g. mobile and become an important aspect of satellite services, among others).
66 • • • consider. Onthesupply side: ofpolicyrecommendationsseries to Maximizing Mobile”, setsouta Development:Communications for World BankReport, and “Information encourage investment. recentThe a supportive environment and and regulators canhelptocreate drive investment, policy-makers Although theprivate sectorwill heavily toprepare this. for network operators needtoinvest demand isontheway, andmobile networks. Atidalwave ofdata DSL, cable modemandfibre access overof thetraffic thatiscarried networks only asmallfraction carry and tablets. However, today’s mobile their mobilephonestosmartphones developing usersupgrade country will only grow over timeasmore of two toone, andthat imbalance fixed broadband usersby aratio broadband usersalready outnumbers Worldwide, thenumber ofmobile BROADBAND PREPARING FORMOBILE FEATURED INSIGHT22: proceeds; coverage rather thanonspectrum Focus onexpansion ofnetwork restrictions onspectrum; Eliminate technologicalorservice networks; effective mobilebroadband todeployquality spectrum cost- Ensure availability sufficient of worldbank.org/ict/ICT4D2012. Maximizing Mobile”, available at: www. Communications forDevelopment 2012: Source: World Bank(2012), “Information and • • • On thedemandside: • • • • content. broadband applicationsand Enable thedevelopment of broadband services; and Enable increasing affordability of devices; affordability ofbroadband-enabled Ensure theavailability and sharing. Foster infrastructure andspectrum and backbone broadband networks; Foster thedevelopment ofnational the market; competitivedistort conditions in hoardingLimit spectrum thatcould competition; management, andsafeguarding Require transparency intraffic 67
ChapterChapter 7 4 FEATURED INSIGHT 23: –– More than 99% for new tunnels built KEEPING AN EYE ON QUALITY OF after April 2012 SERVICE (QoS) STANDARDS –– More than 85% in-building Chapter 7 coverage starting from April 2013 The mobile network is a key delivery platform for broadband to users on In crafting the enhanced 3G mobile the move, as well as to communities QoS standards, IDA has carefully in rural and remote areas. With considered factors such as the nature spectrum constraints and other of mobile and wireless technology in technical challenges involved in areas where it would be technically deploying mobile networks, it is difficult for mobile signals to important to keep an eye on ensuring penetrate as a result of location or an acceptable quality of service surrounding building structures. For (QoS) experience for users. A mobile buildings with limited coverage, broadband network with poor user mobile operators are required to experience will discourage adoption make reasonable efforts to address and usage of broadband. issues like installing dedicated equipment within units or building In March 2012, Singapore recorded premises. a mobile penetration rate of about 150% (IDA, 2012). With a population Since 2011, mobile operators in of over 5 million, Singaporeans have Singapore have begun deploying shown a strong appetite for smart- LTE services to meet the burgeoning phones, according to surveys which demand for mobile data. IDA rank Singapore one of the world’s is currently consulting on the highest in terms of smartphone framework for allocation of spectrum penetration (Netsize Guide, Informa, for 4G services, and intends to Google, Ipsos, Go Gulf, 2011; Ericsson auction off spectrum for 4G services Consumer Lab, 2012; Nielsen, by 2013. Part of this auction will see 2012). The proliferation of smart similar requirements on winning and data-intensive communication bidders to provide nationwide devices has inevitably raised coverage for 4G services possibly consumer expectations for a better with other QoS requirements, mobile experience, including better to ensure that consumers and coverage especially when indoors, businesses in Singapore benefit from and actual broadband speeds the next evolution of mobile services. experienced by users. Source: Leong Keng Thai, Deputy Chief Over a decade ago, in April 2001, Executive/Director-General (Telecoms and the telecom regulator, the Infocomm Post), Infocomm Development Authority of Development Authority of Singapore Singapore. (IDA), first auctioned spectrum for 3G mobile services. Then, IDA required the winning bidders to provide nationwide coverage of their 3G mobile services by December 2004. In 2007, Singapore introduced minimum QoS standards for 3G services. More stringent QoS standards were subsequently imposed in 2012 to ensure mobile operators continue to meet consumer expectations. The enhanced 3G QoS framework includes: –– More than 99% nationwide outdoor coverage –– More than 95% coverage in existing tunnels for roads and subway tunnels
68 7.4 7.4 7.3 7.2 content, andotherissues.However, copyright, rightsinuser-generated proper protection ofpersonal data, electronic commerce, aswellthe certainty andallowforexpanded businesses anduserswithlegal regulatory frameworksto provide need toupdatetheirlegislativeand ICT sectorisevolving,countries Given thespeedwithwhich subsidies tofosterthedeployment public sectorcouldusetargeted not beinitiallywillingtoinvest,the In areas where privatefirmsmay the take-upofbroadband services. PPP maybeundertakentoboost fix andidentifytheareas where regulatory problems regulation can analysis todeterminethetypesof regulators carryoutadetailed andcompetition. Governments is vitaltoreducing barriersto number ofoperators,prices,etc.) power) andmarketvariables(e.g. variables (e.g.,age,purchasing distribution, socioeconomic Understanding population different broadband technologies. different challengesintheroll-out of and regulatory authoritiesface population density, policy-makers Depending ongeographyand provide broadband (seeGSR include fiberopticcablesorductsto gas, oil,water, andsewerlinesto as wellpowertransmission, investment projects innewroads, maps asatooltocoordinate canuseinfrastructureGovernments
financial mechanismstodevelopbroadband Use UniveralServiceFunds(USFs)andother Way andConstructionPermits Implement “DigOnce”Policies&ExpediteRightsof Regulations Consider ReviewingandUpdatingICT the endof2011. to high-speed,all-fibernetworksby than halfthepopulationconnected broadband penetrationandmore broadband, with105%mobile Korea theworldleaderinmobile programs havemadetheRep.of broadband development.These lasting 5-10yearstopromote launchedprogramsthe Government example istheRep.ofKorea, where Practice Guidelines2011 Broadband Access Strategies forFinancingUniversal (2011 GSRDiscussionPaperon had notbeencommercially available develop broadband inareas where it have usedpublicfundsorUSFsto can beachieved.Severalcountries and content,souniversaladoption of specificinfrastructure, devices, deployment ofinfrastructure. have contributedtodelaysinthe are instanceswhere suchpolicies may needtobepragmatic,asthere bold ideal,althoughpolicy-makers 2009 Best PracticeGuidelines2008 the market. regulation tothespecificneedsof market underreview andadapting must beapplied,evaluating each the sector. Acost-benefitanalysis could affect thefuture evolutionof frameworks, assuddenchanges radical changestoICTregulatory managed carefully inorder toavoid necessary revisions need tobe 3 ). “DigOnce”policiesare a 4 &GSRBest
5 ). One 2 and
69
ChapterChapter 7 7.5 Consider a Unified Licensing Regime Chapter 7 Service providers have struggled compete with the cable companies. with legacy inherited laws and More modern approaches to regulations that award licenses regulation may be needed – such as per service, and many companies converged regulation, simplifications have taken the issue to court – for to the licensing regime or unified example, cable TV companies licensing, where one unified license seeking to provide telephone can allow any telecommunication service over their networks, and company to provide any service, telephone companies wanting to as long as consumer rights are upgrade their networks to offer protected, and the competitiveness video programming services and of markets is not threatened.
7.6 Consider Converged Regulation
Many countries have two regulators: create an important leadership role one for telecommunications and for policy-makers and regulators the other for radio and television in stimulating the demand for broadcasting. This arrangement broadband and in promoting was acceptable in the past when investment in infrastructure6. In spectrum and telecommunications some countries, ICT regulators are were clearly divided and regulation becoming converged and involved of content was a major focus of in many more spheres of influence, any broadcasting agency. However, reflecting the involvement of ICT with the proliferation of “triple play” in many more aspects of our daily offers, it is increasingly difficult to lives. In other countries, regulators regulate services separately. ITU are becoming more specialized. At notes that the advent of high-speed present, most regulators worldwide networks and new kinds of content are still sector-specific (Figure 15).
Figure 15: Converged Regulation? The Mandates of Regulators, 2010
100%
80%
60%
Source: ITU World 40% Telecommunication/ ICT Regulatory Database, Trends in Telecommunication 20% Reform Report 2010/2011.
0% Africa Americas Arab States Asia Pacific CIS Europe 70 ICT/telecom only ICT & Post ICT & Utilities ICT & Broadcasting Other 7.9 7.9 7.8 7.7 citizens through e-govservices aregovernments assistingtheir with hundreds ofexamples onhow has createdportal ane-government Administration Network(UNPAN) TheUNPublicgovernments. the benefitofbothcitizensand expanding theire–servicesfor increasingly recognizing thisand arecountries. Governments of demandinmanydeveloping as wellanimportantdriver the principlesofgoodgovernance E-Gov servicesare importantfor traffic. Internet for international traffic locallyisusuallylowerthan the costoftransmittingInternet consume mainlylocalcontent,while (Featured Insight20).Localusers infrastructureon localInternet the highvolumeoflocalcontent a positiveeconomicimpactfrom There isevidencethatsuggests annually, andthenumberofpeople adoption hasbeengrowing at45% products andservices,broadband Lanka reduced itstaxationofICT For example,since2009,whenSri significantly boostlevelsofuptake. ICT equipmentandservicescould import dutiesontelecommunication/ suggest thatreducing taxesand There issignificantevidenceto
initiatives Enhance demandforbroadband through E-Gov telecommunication/ICT equipmentandservices Reduce taxesandimportdutieson languages Stimulate thecreation oflocalcontentin 8 . 7 , help matchcitizenswiththeskills literacy programs inlibraries can and programs. Forexample,digital literacy gapthrough e-govportals role inhelpingtobridgethedigital takeamoregovernments active generating demandistohave One keyconsiderationfor broadband infrastructure sector. knowledge andexpertiseinthe contribute tothedevelopmentof local broadband infrastructure also local jobcreation. Investmentsin of localcontentcreation canboost important tonotethatstimulation Apart from thefinancialaspect,itis place today. regional average,soitremains in unit salessignificantlyoutpacingthe has proven verysuccessful,withPC for mostPCsin2007.Thismeasure VAT wasreduced from 16%tozero million in18months.InColombia, grown from 3.5milliontoover13 who canafford broadband has through digitalliteracytraining. of citizensinE-Govprograms for waystoexpandtheparticipation inclusion to enhancecitizenparticipationand and knowledgeofe-govprograms 9 . Governments shouldlook. Governments 71
ChapterChapter 7 Monitor ICT developments, based on statistical 7.10 indicators Chapter 7
Policy choices must be informed agreed standards and definitions, by reliable data and indicators on such as those developed by ITU ICT developments in countries. and the Partnership on Measuring Statistical indicators are also ICT for Development10. Data should essential to assess the impact of be collected to monitor broadband broadband policies and to track infrastructure and access, prices progress towards national and and affordability, and broadband international broadband goals and usage by individuals, businesses targets (including the targets set and public organizations such by the Broadband Commission). as Governments, schools and Data collected at the national level hospitals. should be based on internationally
Incorporate sustainability principles into ICT 7.11 regulations and policies
The outcome document of the 2012 leadership and long-term broadband UN Conference on Sustainable plans, coupled with a convergent Development (Rio+20)11, “The view for energy, health, educational future we want”12, recognized the and climate-related applications of contribution of ICTs to promote ICT services. Regulatory certainty, knowledge exchange, technical integrated decision-making and cooperation and capacity building cross-ministerial flexibility contribute for sustainable development, to overcoming the barriers that highlighting the need to work currently hinder the adoption of towards improved access to ICT, in ICT-enabled applications that particular to broadband network and can promote environmental services. sustainability. Public policy officials were encouraged to incentivize the In April 2012, the Broadband uptake of low carbon solutions, Commission published a report, fund or facilitate scalable pilots, “The Broadband Bridge, linking form partnerships among the private ICTs with climate action for a sector and government agencies, 13 low carbon economy” , which promote the dissemination of examined the role of broadband in findings and boost measurement driving the transformation towards and standardization. Implementing a low-carbon economy. The report these recommendations would be advances a set of recommendations a step in the direction given by the promoting the adoption and Rio+20 Conference to advance in a delivery of environmentally-focused fairer and more sustainable broadband policies. In particular, future for all. it highlights the need for visionary
72 7.12 effective copyright infrastructure Conversely, broadband needs effectively intheonlineenvironment. needbroadbandservices tooperate one hand, copyright infrastructure infrastructure go hand-in-hand: onthe succeed. Broadband andcopyright thebroadbandfor revolution to content andmultimediaare critical and behaviors over protected Shared standards, practices, values Infrastructure 1) of impact: (WIPO) isleadingwork infive areas Intellectual Property Organization technologies are used. The World e-infrastructures irrespective ofwhich the development ofbroadband Intellectual property (IP)iskey to reliability, cost, orcoverage. each having different bandwidth, can provide broadband services, ofcompetingtechnologies A myriad AND BROADBAND INTELLECTUAL PROPERTY (IP) FEATURED INSIGHT 24: attract andretain suchtalents. broadband canhelpgenerate,grow, policy-makers mustconsiderhow and growing globalcompetition,so as real assetssubjecttoconstant not least,talentsmustbeviewed more girlstostudyICT. Lastly, but stages ofeducationandencourage issue ofgender/ICT, startinginearly should address proactively the educationalists andpolicy-makers and privatesectors.Governments, of therightmindsetsinpublic the conditionsforemergence Regulators canalsohelpcreate to reflect inter-disciplinary skills. with speciallyadaptedcurricula for innovatorsandentrepreneurs, networks shouldbedeveloped education. Openeducation Mathematics inprimary/secondary Technology, Engineeringand countries tofocusonScience, Commission encouragesall the needforskills,Broadband Based onFeatured Insight8on
Content and Copyright Content andCopyright
broadband Promote theskillsandtalentsnecessaryfor
and Tunisia), develop localskills, (Algeria, Egypt, Jordan, Morocco infrastructure in5Arab countries Offices” toimprove innovation of TechnologyEstablishment Transfer launched the “Pilot Project the for energy anddefense. WIPO has the economy, namely: agro-business, the healthsectorto3othersectorsof and was successfully expanded from of theprogram inSeptember2004 18 patentapplicationssincethestart In Colombia, theproject resulted in Republic ofCongo) andColombia. Chad, Guinea, Equatorial Gabonand (Cameroon, Central Republic, African countries R&D sectorofsixAfrican has beenimplementedinthehealth networkfor members. model This protection, andcommercialization reduce thecostsofresearch andIP collaboration, scientific to foster and a R&Dnetworks andIPhubsproject haveWIPO andtenpartners launched e-infrastructures anddatabanks. bandwidth-intensive broadband depends onthecreation of property andinnovation infrastructure developmentThe ofintellectual Infrastructure 2) IntellectualProperty licensing ofcreative content. explore different approaches the for licensing modalitiesin2010to Meeting onemerging copyright of rights. WIPO organized aGlobal effective exercise andmanagement infrastructure by enabling the infrastructure IPandcopyright for Broadband asolidandreliable offers reliable, andsearchable information). databases providing authoritative, (e.g., viaonlineregistries and to drive knowledge andcreativity Innovation Initiative (orintelligent WIPO isputtingtogether aNetworked promote creativity andinnovation. Raising awareness ofIPcanhelp about IntellectualProperty 3) RaisingAwareness andEducation deployment ofbroadband. modeling, which dependonthefull repositories ofdata, simulationand and resource sharing, aswell as areplatforms basedoncollaboration innovationThese infrastructures and the creation ofregional IPmarkets. improve technology transfer and 14 73
ChapterChapter 7 network) as an infrastructural effort (iv) creating a national/regional/ for the development of collaborative global university IP Forum. networks for innovation able to
Chapter 7-8 identify and connect multiple actors 5) Networked Innovation with complementary resources in Thanks to the digital revolution, the search for creative and mutually innovation is no longer an helpful solutions; an Interactive autonomous activity driven by Platform for Open Collaborative R&D experts, but the result of Projects to share experiences on networks of interaction. WIPO open innovation; and the Innovation works with its Member States to and Technology Transfer Support support the development of the Structure for National Institutions or structures, policies and expertise digital repository of training modules, necessary to nurture capacity for guides, tools, models of national IP local innovation. Through capacity- strategies, institutional IP policies, building, WIPO aims to connect best practices, case studies and a multiple actors in the search for database of standardized agreements mutually beneficial solutions. available via a one-stop-shop on Broadband can drive a “social” WIPO’s website. process of interactions among nodes in the interactive bandwidth- 4) Public Private Partnerships (PPP) intensive environment, including the Direct links between the public quadruple helix incorporating the and private sector facilitate faster government, academic universities end-to-end delivery of services & research institutes, the private across multiple domains, including sector (customers, suppliers and universities and research institutions. competitors), and individuals. The WIPO University Initiative connects ideas, technologies and WIPO is further exploring the partners from the public and private relationship between broadband sector by: and IP. From the open modalities of (i) promoting the effective use of IP, in IP licensing (such as CC and FOSS) particular, patents; which find their natural home in (ii) creating university/research a networked environment, to the institutions’ IP and technology development of new business models management infrastructure; for the distribution of music and films, (iii) developing skilled human capital the interactions of IP and broadband for IP/technology management and are bound to grow exponentially. dissemination of knowledge; Source: Mr. Francis Gurry, Director-General, World Intellectual Property Organization. CONCLUSIONS
This Report has summarized the social and economic development various policy options open to and prosperity, emphasizing both governments and policy-makers the supply and demand sides of to roll out the deployment of the market. Further, it is crucial to broadband networks and services adequately evaluate the potential and to position their country for future alternatives to be implemented in competitiveness in the growing digital order to encourage private sector economy. Broadband networks investment. A “one size fits all” policy and services are more than simple to broadband roll-out could have infrastructure – they represent a negative implications for the ICT set of transformative technologies market. Finally, a detailed cost-benefit that promise to change the way we approach should be adopted when communicate, work, play and do evaluating different public policies business. It is essential that every and regulatory options to promote country takes broadband policy into the growth and development of account to shape its future broadband in different countries around the world. 874 14. 13. 12. 11. 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. ENDNOTES Strategies forFinancingUniversalBroadband Access,GSR2011 contributions/GSR09_BestPractice_E.pdf. www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR09/consultation_ GSR BestPracticeGuidelines2009,availablefrom: GSRguidelines08_E.pdf www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR08/PDF/ GSR BestPracticeGuidelines2008,availablefrom: june_2012.pdf. www.ericsson.com/res/docs/2012/traffic_and_market_report_ Ericsson Traffic andMarketReport,June2012,availablefrom: wipo_magazine/en/pdf/2010/wipo_pub_121_2010_03.pdf WIPO Magazine,p.4,June2010,availablefrom: www.wipo.int/ Ali Jazairy, “OpenInnovation:CollectiveSolutionsforTomorrow,” Bridge.aspx 2012, at:www.broadbandcommission.org/work/working-groups/ carbon economy. Broadband Commission,ITUandUNESCO,April The Broadband Bridge:LinkingICTwithclimateactionforalow html Available fordownloadfrom: www.uncsd2012.org/thefuturewewant. information atwww.uncsd2012.org/ Held inRiodeJaneiro (Brazil)on20-22June2012.Further www.itu.int/ITU-D/ict/ DigLitBrief2011_1.pdf. www.ipac.umd.edu/sites/default/files/publications/ www.unpan.org/egovkb/global_reports/08report.htm www.oecd.org/dataoecd/49/58/2484485.pdf. www.itu.int/net/pressoffice/press_releases/2011/07.aspx. BPG_E.pdf ITU-D/treg/Events/Seminars/GSR/GSR11/consultation/GSR11_ GSR BestPracticeGuidelines2011,availablefrom: www.itu.int/ GSR/GSR11/documents/06-Universal-broabdand-access-E.pdf Consulting, availableat:www.itu.int/ITU-D/treg/Events/Seminars/ Discussion PaperbyMandlaMsimang,ManagingDirector, Pygma
75
ChapterChapter 7-8 Annex 1: Impact of Broadband on Various Economies
NO REGION RESULT SOURCE DATE TITLE 1 Africa ICTs directly contribute around 7% of Africa’s GDP, which The World 2012 The Transformational Annex 1 is higher than the global average. That’s because, in Africa, Bank and Use of Information mobile phones give access to services that are available the African and Communication in traditional forms in more developed countries, such as Development Technologies in Africa financial credit, newspapers, games and entertainment. The Bank value of a mobile phone is higher in Africa than elsewhere. Now the rapid development of mobile broadband with smartphones and affordable tablets across Africa will bring greater social and economic impacts over the next decade. 2 Australia The economic benefits of broadband for Australia are Allen 2010 The Allen Consulting estimated at 0.44% of GDP for every 10% increase in Consulting Group: Economic broadband penetration. Group Gains of Getting more Australians Online (2010) 3 Brazil Broadband has become a priority, local applications Michael 2011 Broadband in Brazil: development continues to take place and access devices Jensen – The A Multipronged Public have switched to laptops, smartphone and tablets which are World Bank Sector Approach to a one-off cost and becoming increasingly affordable. As a Digital Inclusion result, lowering broadband costs and improving performance is a key priority to achieve digital inclusion and leverage the benefits of ICTs for development. In an effort to help to improve coverage and reduce the cost of broadband access, the Government has begun a major broadband infrastructure development initiative which has set ambitious targets to triple broadband uptake by 2014. The largest ICT infrastructure project ever carried out in Brazil, the National Broadband Plan (PNBL ), it aims to ensure that broadband access is available to low-income households, especially in areas so far poorly served. 4 Brazil 10% in broadband penetration could reduce the Katz et al 2012 The impact of unemployment rate by 0.06%. If broadband penetration broadband on the were to grow by 20%, the impact on the rate of change of economy: research unemployment would be a further 0.138. Deployment of to date and policy broadband could result in a reduction of unemployment from issues the original 3.89% to 4.03%. Impact on GDP growth for each 1% change in broadband penetration: 0.008. 5 Chile 10% increase in broadband penetration will result in an Katz et al 2012 The impact of increase of 0.09% in regional GDP of Chile's regions. broadband on the Broadband deployment, which reached a penetration of economy: research 9.8%, contributed 1.76% to the employment rate, which to date and policy amounts to the creation of 114,426 direct and indirect jobs. issues Impact on GDP growth for each 1% change in broadband penetration: 0.009. 6 Dominican Increase in broadband penetration of 1% would diminish Katz et al 2012 The impact of Republic unemployment by 0.29%. If the unemployment rate were to broadband on the be 14%, an increase of 1% in broadband penetration would economy: research contribute to a reduction of unemployment to 13.7%. to date and policy issues 7 European According to the model, process improvement, increased Micus 2008 Micus, (2008) The Union specialization in knowledge-intensive activities and impact of broadband broadband-based development of innovative markets resulted on growth and in a growth of the European Gross Value Added (GVA) of € productivity. 82.4 bn per year (+0.71%) in 2006. The same study estimated that broadband development would in the basic case contribute to the creation of 1,076,000 jobs in Europe and a broadband-related growth of the economic activity of € 849 Koutroumpis,(2009), bn between 2006 and 2015. The Economic Impact of Broadband on Growth: A Koutrompis 2009 In terms of productivity, Koutroumpis shows that for each 1% Simultaneous increase in broadband penetration, GDP increases by 0.025% Approach in the old EU-15 countries.
76 NO REGION RESULT SOURCE DATE TITLE 8 India Mobile broadband can generate a $71B incremental increase GSMA; Boston 2010 Socio-economic over the period from 2014 to 2020. The benefit from Consulting impact of allocating broadcasting would be just over one tenth of the mobile Group (BCG) 700 MHz band to dividend - $3.3B. Therefore, allocation to mobile would mobile in Asia Pacific
generate an additional benefit of $68.1B, or $43.8B in net Annex 1 present value. Most of this, around 83%, will come from increased productivity across all sectors. 9 India Direct impact on productivity and economic growth GSMA; 2010 India Wireless suggesting that an increase in broadband penetration of 1% Analysys Broadband Economic will contribute INR 162 bn, or 0.11% to Indian GDP in 2015 Mason Impact 10 India Broadband has generated nearly 9 million jobs in direct and Katz et al 2012 The impact of indirect ways. This result becomes more important taking into broadband on the consideration the latest estimates provided by the Reserve economy: research Bank of India forecasting an increment of 220 million to India’s to date and policy workforce by 2030. 10% increase in penetration will result in issues an increase of 0.3128% points in regional GDP. Impact on GDP growth for each 1% change in broadband penetration: 0.031
11 Indonesia The contribution of the broadband variable appears to be Katz et al 2012 The impact of an extremely contributor to the reduction of unemployment, broadband on the with a negative effect of -8.6%. This means that for each economy: research 1% increase in the penetration rate of the service among the to date and policy Indonesian households, the unemployment growth would be issues reduced it by 8.6% points. 12 Indonesia In GDP terms, mobile broadband would generate an extra GSMA; Boston 2010 Socio-economic $22.6B. The incremental benefits over the period, on a net Consulting impact of allocating present value basis, would be 2.9% of Indonesia’s current Group (BCG) 700 MHz band to GDP. The bulk of the increase in GDP, 52% would come from mobile in Asia Pacific increased productivity in the service sector. 700 MHz band based mobile broadband will stimulate estimated additional productivity gains of 0.4% for service industries, and 0.2% for manufacturing. This would lead to the creation of about 327,000 jobs in 2020 – many of them in rural areas. 13 Jordan The CAGR (economic growth) for the period of 2007 to Katz et al 2012 The impact of 2010 was 44%, which, when multiplied by the broadband broadband on the penetration growth coefficient yields an average annual economy: research increase of GDP per capita of 0.92%. to date and policy issues 14 Korea, Rep. Korea’s annual GDP has already passed the trillion dollar GSMA; Boston 2010 Socio-economic barrier, and it can expect to add $68.3B in GDP in the six Consulting impact of allocating years to 2020 should it devote the 700 MHz band to mobile Group (BCG) 700 MHz band to (net present value of $59.8B), over and above the expected mobile in Asia Pacific contribution from broadcasting. More than 75% of this would come from improved productivity in existing companies, taking advantage of the greater speed and flexibility offered by mobile connections. Service sector is expected to enjoy a 0.8% increase in productivity directly attributable to 700 MHz band mobile broadband. Under a quarter of the GDP impact would come from the additional 19,600 new business activities that will be stimulated by the 700 MHz band. More than 37,800 jobs, many of them in Korea’s rural regions and varying from highly sophisticated technical posts to basic service functions such as distribution would be created by these new companies. 15 Malaysia Increase of 10% in broadband penetration will contribute to Katz et al 2012 The impact of 0.7% to regional GDP growth. This result has to be put in a broadband on the context of an economy that has a service sector contributing economy: research more than 55% of the GDP. It should be noted that this to date and policy estimation, based on penetration per household, is lower than issues the 0.4% impact on GDP per 10% of broadband penetration per inhabitant estimated for Malaysia. Impact on GDP growth for each 1% change in penetration :0.077
77 NO REGION RESULT SOURCE DATE TITLE 16 Malaysia The economic opportunities created by improved access GSMA; Boston 2010 Socio-economic to mobile broadband would be expected to generate, at Consulting impact of allocating current prices, an extra $17.5 bn in GDP for the period Group (BCG) 700 MHz band to Annex 1 2014-2020. Over 90% of the GDP benefits are generated by mobile in Asia Pacific increased productivity in existing businesses. The incremental productivity benefit to industry of deploying mobile broadband in the 700 MHz band is estimated at 0.6% for services, and 0.3% for manufacturing. Mobile broadband will generate a further $2.1 bn in revenues between 2014 and 2020, with the bulk from corporation tax on profits ($1.2 bn) 17 Nigeria Wireless broadband could potentially contribute over 1% of GSMA; 2011 Nigeria – Economic GDP –and 1.7% of non-oil GDP – in 2015. If positive policy Analysys impact of wireless actions are taken to remove barriers to broadband, the benefit Mason broadband to GDP in 2015 will be an additional NGN190 billion (USD1.1 billion) or 0.27% of GDP. 18 Panama Fixed broadband has positively impacted GDP of Panama, Katz et al 2012 The economic impact accounting for 0.82% of GDP and representing 11.3% of all of broadband in economic growth on average since 2005. Panama 19 The Mobile broadband adoption was found to contribute an Katz et al 2012 The economic impact Philippines annual 0.32% of GDP. This represents 6.9% of all GDP growth of broadband in the for the economy during the past decade. Philippines 20 Qatar Qatar surpassed the broadband penetration floor of 1% in Katz et al 2012 The impact of 2004; the CAGR of broadband penetration between that broadband on the year and 2010 was 35%. By multiplying that number by economy: research the broadband coefficient in the Arab States general model to date and policy (0.0186), it is estimated that broadband contributed an issues average 0.65% to annual GDP growth. 21 Saudi Arabia 10% increase in broadband penetration would decrease the Katz et al 2012 The impact of unemployment rate by 2.4% points. broadband on the economy: research to date and policy issues 22 South Africa Wireless broadband and related industries could generate GSMA; 2010 Assessment of 1.8% of GDP (ZAR 72 bn) by 2015 and about 28,000 jobs Analysys economic impact of – plus further jobs outside the industry. The direct impact Mason wireless broadband in on productivity and economic growth suggesting that an South Africa increase in broadband penetration of 1% could result in 0.1% productivity gain. 23 Sri Lanka According to the Ministry of Finance and Planning, the post Helani Galpaya 2011 Broadband in Sri and telecommunications sector accounted for 11.7% of Sri –The World Lanka Glass Half Full Lanka’s GDP growth in 2009 (down from 36% in 2005 and Bank or Half Empty? 21.5% in 2007). As an integrated, cross-sector ICT-enabled development program, e-Sri Lanka after Seven years its start, have a number of the projects which are still being implemented and others have been abandoned. 24 Sweden Economic effects of broadband-enabled ICTs in Sweden have Tim Kelly and 2012 Broadband Strategies been larger and surfaced faster. From 1998 to 2007, average Carlo Rossotto Handbook annual productivity grew much faster in Sweden than in other – The World peer countries (2.32% compared with 0.39% in Italy and an Bank average of 1.66% among OECD countries). 25 Turkey Broadband could boost economic growth (growth of GDP) by National 0.8-1.7% and potentially create 180,000-380,000 new jobs Broadband a year. Vision 26 Turkey According to the National Broadband Vision Study of Turkey, Cagatay Telli 2011 Broadband in Turkey: through fostering broadband development the Turkish – The World Compared To What? economy could gain US$ 4.9-10 billion extra value added Bank each year thereby boosting its economic growth by 0.8- 1.7%. This economic momentum enabled by an enhanced broadband ecosystem would bring 180,000-380,000 new jobs and provide new income opportunities.
78 NO REGION RESULT SOURCE DATE TITLE 27 United Arab The average annual contribution of broadband to per capita Katz et al 2012 The impact of Emirates GDP growth between 2004 and 2010 is 0.79%. broadband on the economy: research to date and policy Annex 1 issues 28 USA Broadband added 1.0–1.4% to the growth rate in the number U.S. 2006 Measuring of jobs during 1998–2002 Department Broadband’s of Commerce, Economic Impact Economic Development Administration 29 USA Broadband added 0.5–1.2% to the growth rate in the number U.S. 2006 Measuring of firms during 1998–2002 Department Broadband’s of Commerce, Economic Impact Economic Development Administration 30 USA Broadband added 0.3–0.6% to new business creations in U.S. 2006 Measuring IT-intensive sectors in 1998–2002. Broadband reduced the Department Broadband’s share of small business (those with fewer than 10 employees) of Commerce, Economic Impact by 1.3–1.6% in 1998–2002 Economic Development Administration 31 Vietnam Solid economic growth in Vietnam has coincided with Tran Minh 2011 Broadband in increased broadband usage. Liberalization of the Truan – The Vietnam: Forging Its telecommunications sector has led to growing competition World Bank Own Path with 11 enterprises providing infrastructure. Service providers have developed modern IP-based networks with extensive fiber optic backbones. Incomes have risen so that more people can afford broadband. 32 International 10% increase in broadband household penetration delivers a McKinsey & 2009 Mobile broadband for boost to a country’s GDP that ranges from 0.1% to 1.4%. Company the masses 33 International Broadband alone has limited impact as a technological Tim Kelly and 2012 Broadband Strategies platform, but acts as an enabler. As such, it holds the Carlo Rossotto Handbook potential to have a significant impact on economic and social – The World progress and to transform the economy. However, for this Bank potential impact to be unleashed, broadband must be used by businesses, governments, and citizens in a way that increases productivity in the economy. This requires: (a) the creation and availability of broadband-enabled services and applications that increase efficiency and productivity and (b) the capacity of businesses, government, and citizens to use broadband-enabled services and applications in a productive and efficient way. These two requirements are critical for achieving the potential economic impact that broadband can produce. 34 Emerging Bringing broadband penetration levels in emerging markets to McKinsey & 2009 Mobile broadband for markets today’s Western European levels could potentially add USD Company the masses 300-400 billion in GDP and generate 10 -14 million jobs 35 Low - and Every 10% increase in broadband penetration accelerates The World 2009 Information and middle- economic growth by 1.38% — more than in high-income Bank Communications for income countries and more than for any other telecommunications Development 2009: countries service Extending Reach & Increasing Impact 36 15 OECD An increase of 1 broadband line per 100 individuals in LECG 2009 Economic Impact nations, 14 “medium or high ICT” countries increases productivity by of Broadband: An European 0.1%. This productivity gain suggests an increase in GDP Empirical Study nations & the (holding number of hours worked constant) from an increase U.S. of 1%, 5% and 10% in broadband penetration
79 Annex 2: Examples of key countries with the “Reaching the third billion” program
COUNTRY TELCOS BROADBAND SERVICE CONTENT SOLUTIONS TCO PLAN OPTIONS REDUCTION Albania AMC • USD 16 for 12 months British Council English Language Learning 41-50% Annex 2 • for 6 gbs and free 3G Modules*, Intel AppUpSM center, Intel® PC dongle Basics
Bangladesh Qubee Prepaid USD 4 and USD 15 Champs 21 (local), Encyclopedia Britannica*, 1-10% credit for 3G dongle Intel AppUp center, Intel PC Basics, Intel® skoool™ content, Khan Academy, McAfee security software* Bosnia BH Telecom Free 3G modem and free 2G British Council English Language Learning 11-20% download Modules, Intel skoool content, voucher for local ESL classes Brazil TIM 3G prepaid broadband, British Council English Language Learning 71-80% unlimited Internet access Modules, Intel® Easy Steps, Intel PC package for USD 1.20 per Basics,Intel skoool content, other day entertainment and learning applications Bulgaria Globul, 3G dongle and unlimited British Council English Language Learning 31-40%** MaxTelekom, Internet access (with Modules, Encyclopedia Britannica, Intel Mobiltel, purchase of Intel®-based AppUp center, Intel Easy Steps, Intel PC Vivacom notebook or netbook) Basics, Intel skoool content, McAfee security software, Mobiltel antivirus software* Colombia Une 12 months contract for 1G, 21-30% first six months double speed for free Ecuador CNT 20% discount - USD 15 (was 31-40% USD 18) Egypt MobiNil • USD 8 unlimited British Council English Language Learning 31-40% • USD 4 prepaid for 110 MB Modules, Intel Easy Steps, Intel skoool (one month plus one month content, local content from MoE free) El Salvador Claro USD 10/month (was USD 25), none 2 year contract Georgia Georgian • USD 14 unlimited British Council English Language Learning 81-90%** (Republic of) Telecom • USD 4 for 1G prepaid for six Modules, Intel PC Basics, local (“Learn English months Kids”) Ghana MTN 2.5 GB for same price as 1G British Council English Language Learning 1-10% Modules, Encyclopedia Britannica, Intel AppUp center, Intel PC Basics, Intel skoool content India BSNL, MTS, • USD 10 unlimited Bluebird, Intel AppUp center, Mobiline (ebook 61-70% Reliance • USD 1 prepaid for 100 MB reader), NIIT Course, Twitter,* local digital (RCOM), TATA content Indonesia Axiata, Indosat, • USD 22 unlimited British Council English Language Learning 31-40% Telkom, XL, • USD 11 unlimited (subsidy) Modules, Intel AppUp center, local digital Telkomsel content Kenya Safaricom • USD 5 for 500 MB British Council English Language Learning 71-80% • USD 10 for 1.5 GB Modules, Encyclopedia Britannica, Intel AppUp center, Intel Easy Steps, Intel PC Basics, Intel skoool content, McAfee Family Pack*, local digital content Macedonia VIP Telecom 24 month contract, eight British Council English Language Learning 51-60% months free plus free 3G Modules, Intel skoool content, voucher for dongle local ESL classes Malaysia Celcom, USD 10 unlimited for 1.5 GB British Council English Language Learning 11-20% Packet One Modules, local digital content Networks, Telekom Malaysia, Yes from YTL
80 COUNTRY TELCOS BROADBAND SERVICE CONTENT SOLUTIONS TCO PLAN OPTIONS REDUCTION Mexico Compuapoyo USD 8 (was USD 16) Intel PC Basics, Intel Easy Steps, Intel skoool 61-70% financing at 12% (was 24%), content Annex 2 USD 80 PC subsidy Nigeria MTN 1.5 GB for same price as 1G Intel PC Basics, local content, Intel AppUp 1-10% USD 25 (was USD 40/month center, Intel skoool content, Encyclopedia plus an increase to 1.5 GB) Britannica, McAfee security software Peru Telefonica 20% discount - USD 18 (was 41-50% USD 22) Philippines PLDT USD 9.99/month WiFi (5,000 Sing to Win 1-10% hotspots) PRC (China) CMCC, CTC, Reduced from USD 10/month 41-50% CUC to USD 6/month Romania Orange Unlimited Internet access with British Council English Language Learning 61-70% free 3G dongle for EUR 20 Modules, Encyclopedia Britannica, Intel AppUp center, Intel Easy Steps, Intel® Education Help Guide, Intel PC Basics, Intel skoool content Serbia BH Telekom, 3G dongle with two months British Council English Language Learning 41-50% MTS, Telenor, of usage; 10 Mbps download Modules, Intel skoool content, local VIP Telecom and 3 Mbps speed (with government content, voucher for local ESL purchase of Intel-based classes notebook, netbook, or desktop) Thailand i-mobile3Gx • USD 10 for 1 GB Local options 1-10% • USD 30 for 5 GB Uganda Orange USD 10 per 500 MB (prepaid) British Council English Language Learning 21-30% Modules, Intel Easy Steps, Intel® Education Help Guide, Intel PC Basics, Intel skoool content United States Comcast • USD 30 unlimited Digital literacy kits 31-40% • USD 10 for 1.5 GB (low- income families) Vietnam Viettel, VNPT • USD 10 unlimited British Council English Language Learning 51-60% • USD 5 unlimited (rural and Modules, Intel AppUp center, Intel PC Basics, teachers) Intel skoool content, LV Dictionary • USD 1.80 prepaid for 700 MB or USD 3 for 2 GB • Students (14-22) 500 MB/ month free (eight years max) **Reflects BB cost reduction only.
81 Annex 3: Fixed Broadband Penetration, Worldwide, 2011 Fixed (wired)-broadband subscriptions per 100 inhabitants, 2011
RANK ECONOMY FIXED (WIRED)-BROADBAND RANK ECONOMY FIXED (WIRED)-BROADBAND SUBSCRIPTIONS SUBSCRIPTIONS Annex 3 PER 100 INHABITANTS PER 100 INHABITANTS 2011 2011 1 Liechtenstein 71.6 47 Uruguay 13.5 2 Monaco 44.2 48 TFYR Macedonia 13.2 3 Switzerland 39.2 49 St. Vincent & Grenadines 12.9 4 Netherlands 38.7 50 Russia 12.2 5 Denmark 38.2 51 St. Lucia 12.1 6 Korea (Rep.) 36.9 52 Chile 11.6 7 Norway 36.5 53 China 11.6 8 France 36.1 54 Trinidad & Tobago 11.5 9 Iceland 33.9 55 Bosnia and Herzegovina 11.5 10 Belgium 33.0 56 United Arab Emirates 11.0 11 Luxembourg 32.9 57 Serbia 10.8 12 United Kingdom 32.7 58 Azerbaijan 10.7 13 Germany 32.5 59 Mexico 10.6 14 Canada 32.0 60 Argentina 10.5 15 Sweden 31.8 61 Turkey 10.3 16 Malta 30.0 62 Moldova 9.9 17 Finland 29.5 63 Seychelles 8.9 18 United States 28.7 64 Mauritius 8.9 19 Andorra 28.7 65 Costa Rica 8.7 20 Japan 27.4 66 Qatar 8.7 21 Estonia 27.1 67 Brazil 8.6 22 Austria 26.5 68 Panama 7.9 23 New Zealand 25.8 69 Georgia 7.6 24 Singapore 25.5 70 Kazakhstan 7.5 25 Slovenia 24.8 71 Malaysia 7.4 26 Australia 23.9 72 Ukraine 7.0 27 Israel 23.8 73 Colombia 6.9 28 Spain 23.5 74 Antigua & Barbuda 6.7 29 Italy 22.8 75 Maldives 6.4 30 Hungary 22.2 76 Saudi Arabia 5.7 31 Barbados 22.1 77 Brunei Darussalam 5.5 32 Lithuania 22.1 78 Thailand 5.4 33 Ireland 22.1 79 Lebanon 5.2 34 Belarus 21.9 80 Tunisia 5.1 35 Greece 21.6 81 Armenia 5.0 36 Portugal 21.0 82 Tuvalu 4.6 37 San Marino 20.6 83 Suriname 4.5 38 Latvia 20.4 84 Bahamas 4.5 39 Croatia 19.5 85 Albania 4.3 40 Cyprus 18.1 86 Cape Verde 4.3 41 Czech Republic 15.7 87 Viet Nam 4.3 42 Bulgaria 15.5 88 Ecuador 4.2 43 Romania 15.4 89 Dominican Rep. 4.0 44 Poland 14.4 90 Jamaica 3.9 45 Bahrain 13.8 91 Peru 3.5 46 Slovak Republic 13.6 92 El Salvador 3.3
82 RANK ECONOMY FIXED (WIRED)-BROADBAND RANK ECONOMY FIXED (WIRED)-BROADBAND SUBSCRIPTIONS SUBSCRIPTIONS PER 100 INHABITANTS PER 100 INHABITANTS Annex 3 2011 2011 93 Jordan 3.2 133 Swaziland 0.2 94 Belize 3.1 134 Mauritania 0.2 95 Mongolia 2.8 135 Cambodia 0.2 96 Algeria 2.8 136 Nigeria 0.1 97 Fiji 2.7 137 Angola 0.1 98 Guyana 2.5 138 Kenya 0.1 99 Iran (I.R.) 2.4 139 Papua New Guinea 0.1 100 Egypt 2.2 140 Burkina Faso 0.1 101 Philippines 1.9 141 Togo 0.1 102 Oman 1.8 142 Côte d'Ivoire 0.1 103 Morocco 1.8 143 Tajikistan 0.1 104 South Africa 1.8 144 Mozambique 0.1 105 Nicaragua 1.8 145 Malawi 0.1 106 Bhutan 1.8 146 Myanmar 0.1 107 Sri Lanka 1.7 147 Zambia 0.1 108 Djibouti 1.2 148 Timor-Leste 0.0 109 Tonga 1.2 149 Bangladesh 0.0 110 Indonesia 1.1 150 Benin 0.0 111 Libya 1.1 151 Cuba 0.0 112 India 1.0 152 Sudan 0.0 113 Paraguay 1.0 153 Rwanda 0.0 114 Kiribati 0.9 154 Ethiopia 0.0 115 Venezuela 0.9 155 Madagascar 0.0 116 Namibia 0.8 156 Honduras 0.0 117 Botswana 0.8 157 Congo (Dem. Rep.) 0.0 118 Senegal 0.7 158 Turkmenistan 0.0 119 Bolivia 0.7 159 Comoros 0.0 120 Lao P.D.R. 0.7 160 Gambia 0.0 121 Syria 0.6 161 Mali 0.0 122 Uzbekistan 0.5 162 Niger 0.0 123 Solomon Islands 0.4 163 Tanzania 0.0 124 Yemen 0.4 164 Guinea 0.0 125 S. Tomé & Principe 0.4 165 Cameroon 0.0 126 Pakistan 0.4 166 Congo 0.0 127 Nepal 0.3 167 Eritrea 0.0 128 Kyrgyzstan 0.3 168 Liberia 0.0 129 Gabon 0.3 169 Chad 0.0 130 Zimbabwe 0.3 170 Central African Rep. 0.0 131 Uganda 0.3 171 Nauru 0.0 132 Ghana 0.3 172 Haiti 0.0
Notes: The table includes ITU Member States. Data are unavailable for: Afghanistan, Burundi, Dominica, Equatorial Guinea, Grenada, Guatemala, Guinea-Bissau, Iraq, Korea D.P.R., Kuwait, Lesotho, Marshall Islands, Montenegro, Micronesia, Samoa, Sierra Leone, Somalia, South Sudan, St. Kitts & Nevis, Vanuatu, Vatican. Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database.
83 Annex 4: Mobile Broadband Penetration, Worldwide, 2011 Active mobile-broadband subscriptions per 100 inhabitants, 2011
RANK ECONOMY ACTIVE MOBILE-BROADBAND RANK ECONOMY ACTIVE MOBILE-BROADBAND SUBSCRIPTIONS PER 100 SUBSCRIPTIONS Annex 4 INHABITANTS 2011 PER 100 INHABITANTS 2011 1 Singapore 110.9 47 South Africa 19.8 2 Korea (Rep.) 105.1 48 Antigua & Barbuda 19.7 3 Japan 93.7 49 Belgium 19.4 4 Sweden 91.5 50 Belarus 18.9 5 Finland 87.1 51 TFYR Macedonia 18.7 6 Denmark 80.2 52 Uzbekistan 18.4 7 Luxembourg 66.7 53 Viet Nam 18.0 8 United States 65.5 54 Maldives 17.4 9 United Kingdom 62.3 55 Lithuania 17.2 10 Qatar 61.0 56 Chile 17.1 11 Iceland 60.7 57 Fiji 15.5 12 Ireland 59.4 58 Montenegro 15.3 13 New Zealand 53.0 59 Zimbabwe 14.9 14 Netherlands 49.2 60 Bulgaria 14.5 15 Poland 48.4 61 Panama 14.5 16 Russia 47.9 62 Romania 14.1 17 France 44.0 63 Hungary 13.2 18 Austria 43.3 64 Mongolia 12.7 19 Czech Republic 43.1 65 Mauritius 12.4 20 Australia 42.8 66 Malaysia 12.3 21 Estonia 42.0 67 Argentina 11.7 22 Israel 41.0 68 San Marino 10.6 23 Spain 40.9 69 Ecuador 10.3 24 Saudi Arabia 40.4 70 Bahrain 9.5 25 Kazakhstan 38.4 71 China 9.5 26 Oman 37.8 72 Bosnia & Herzegovina 9.2 27 Latvia 37.6 73 Uruguay 9.0 28 Switzerland 36.1 74 Albania 8.8 29 Germany 34.8 75 Turkey 8.8 30 Serbia 34.5 76 Morocco 8.0 31 Canada 32.9 77 Dominican Rep. 7.7 32 Malta 32.6 78 Nauru 6.8 33 Slovak Republic 31.9 79 Croatia 6.6 34 Greece 31.8 80 Rwanda 6.4 35 Italy 31.3 81 Brunei Darussalam 6.3 36 Slovenia 29.3 82 Jordan 4.9 37 Portugal 27.4 83 Seychelles 4.7 38 Norway 24.4 84 Mexico 4.6 39 Cyprus 24.1 85 Paraguay 4.5 40 Ghana 23.0 86 Ukraine 4.4 41 Indonesia 22.2 87 Venezuela 4.2 42 United Arab Emirates 21.7 88 Kyrgyzstan 4.1 43 Azerbaijan 21.5 89 Guatemala 4.1 44 Egypt 21.0 90 Solomon Islands 3.8 45 Brazil 20.9 91 Colombia 3.7 46 Georgia 20.5 92 Honduras 3.7
84 RANK ECONOMY ACTIVE MOBILE-BROADBAND RANK ECONOMY ACTIVE MOBILE-BROADBAND SUBSCRIPTIONS PER 100 SUBSCRIPTIONS
INHABITANTS 2011 PER 100 INHABITANTS 2011 Annex 4 93 Namibia 3.6 136 Benin 0.0 94 El Salvador 3.6 137 Burkina Faso 0.0 95 Moldova 3.5 138 Burundi 0.0 96 Philippines 3.4 139 Cameroon 0.0 97 Malawi 3.1 140 Central African Rep. 0.0 98 Cape Verde 3.0 141 Chad 0.0 99 Uganda 2.8 142 Congo (Dem. Rep.) 0.0 100 Nigeria 2.8 143 Côte d'Ivoire 0.0 101 Tunisia 2.4 144 Equatorial Guinea 0.0 102 Sri Lanka 2.3 145 Eritrea 0.0 103 Cambodia 2.2 146 Gabon 0.0 104 Costa Rica 2.0 147 Guinea 0.0 105 Bolivia 1.9 148 Guinea-Bissau 0.0 106 India 1.9 149 Niger 0.0 107 Jamaica 1.5 150 S. Tomé & Principe 0.0 108 Botswana 1.5 151 Algeria 0.0 109 Angola 1.5 152 Comoros 0.0 110 Senegal 1.5 153 Djibouti 0.0 111 Peru 1.4 154 Somalia 0.0 112 Tanzania 1.2 155 Bangladesh 0.0 113 Congo 1.2 156 Iran (I.R.) 0.0 114 Trinidad & Tobago 1.2 157 Kiribati 0.0 115 Mozambique 1.0 158 Marshall Islands 0.0 116 Nicaragua 1.0 159 Micronesia 0.0 117 Bhutan 1.0 160 Papua New Guinea 0.0 118 Syria 1.0 161 Samoa 0.0 119 Swaziland 0.7 162 Thailand 0.0 120 Lao P.D.R. 0.6 163 Timor-Leste 0.0 121 Mauritania 0.5 164 Tuvalu 0.0 122 Gambia 0.5 165 Vanuatu 0.0 123 Togo 0.4 166 Turkmenistan 0.0 124 Zambia 0.4 167 Bahamas 0.0 125 Mali 0.4 168 Barbados 0.0 126 Kenya 0.3 169 Cuba 0.0 127 Ethiopia 0.3 170 Dominica 0.0 128 Pakistan 0.3 171 Grenada 0.0 129 Liberia 0.2 172 Guyana 0.0 130 Tonga 0.1 173 Haiti 0.0 131 Yemen 0.1 174 St. Kitts and Nevis 0.0 132 Madagascar 0.1 175 St. Lucia 0.0 133 Lebanon 0.0 176 St. Vincent & Grenadines 0.0 134 Myanmar 0.0 177 Suriname 0.0 135 Nepal 0.0
Notes: The table includes ITU Member States. Data are unavailable for: Afghanistan, Andorra, Armenia, Belize, Iraq, Korea D.P.R., Kuwait, Lesotho, Libya, Lichtenstein, Monaco, Sierra Leone, South Sudan, Sudan, Tajikistan, Vatican. Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database. 85 Annex 5: Target 3 – Percentage of Households with Internet, Developing Countries
RANK ECONOMY 2011 RANK ECONOMY 2011 1 Korea (Rep.) 97.2 41 Fiji 22.1 Annex 5 2 Singapore 85.0 42 Iran (I.R.) 22.0 3 Qatar 83.6 43 Panama 20.7 4 Hong Kong, China 79.6 44 Armenia 19.5 5 Macao, China 78.0 45 Paraguay 19.3 6 Bahrain 76.8 46 New Caledonia 18.5 7 Israel 71.0 47 Tuvalu 18.0 8 Brunei Darussalam 69.0 48 Jamaica 17.8 9 United Arab Emirates 67.0 49 Peru 17.7 10 Lebanon 61.8 50 Ecuador 16.9 11 Malaysia 61.4 51 Tunisia 16.0 12 Saudi Arabia 60.5 52 Venezuela 16.0 13 Kuwait 57.7 53 Algeria 15.0 14 Cyprus 57.4 54 Philippines 15.0 15 Barbados 54.6 55 Suriname 15.0 16 Kazakhstan 48.0 56 Viet Nam 14.0 17 Antigua & Barbuda 45.0 57 Thailand 13.4 18 St. Vincent & Grenadines 45.0 58 El Salvador 12.0 19 St. Lucia 44.0 59 Dominican Rep. 11.8 20 Turkey 42.9 60 Libya 11.4 21 Belarus 40.3 61 Tonga 10.6 22 Azerbaijan 39.5 62 Honduras 10.0 23 Uruguay 39.4 63 Namibia 10.0 24 Oman 38.9 64 South Africa 9.8 25 Chile 38.8 65 Swaziland 9.5 26 Argentina 38.0 66 Bolivia 9.4 27 Brazil 37.8 67 Mongolia 9.0 28 Mauritius 36.4 68 Cape Verde 8.5 29 Syria 36.0 69 Bhutan 8.1 30 Jordan 35.4 70 Sri Lanka 8.1 31 Morocco 35.0 71 Guyana 8.0 32 Trinidad & Tobago 35.0 72 Uzbekistan 7.8 33 Seychelles 34.0 73 Guatemala 7.0 34 Costa Rica 33.6 74 Indonesia 7.0 35 China 30.9 75 Gabon 7.0 36 Egypt 30.5 76 Kenya 6.9 37 Maldives 28.9 77 Pakistan 6.7 38 Mexico 27.5 78 Angola 6.4 39 Colombia 23.4 79 Botswana 6.4 40 Georgia 23.3 80 India 6.0
86 RANK ECONOMY 2011 RANK ECONOMY 2011 81 Turkmenistan 6.0 105 Comoros 2.9 Annex 5 82 Nicaragua 5.6 106 Cambodia 2.8 83 Gambia 5.2 107 Malawi 2.5 84 Kyrgyzstan 5.0 108 Mauritania 2.5 85 Rwanda 5.0 109 Papua New Guinea 2.5 86 Senegal 5.0 110 Zambia 2.4 87 Nigeria 4.6 111 Burkina Faso 2.4 88 Tanzania 4.5 112 Madagascar 2.0 89 Uganda 4.5 113 Central African Rep. 1.9 90 Lao P.D.R. 4.2 114 Benin 1.8 91 Ghana 4.0 115 Afghanistan 1.7 92 Yemen 4.0 116 Eritrea 1.6 93 Djibouti 3.9 117 Chad 1.6 94 Sudan 3.8 118 Ethiopia 1.5 95 Mozambique 3.5 119 Guinea-Bissau 1.5 96 Solomon Islands 3.5 120 Myanmar 1.4 97 Bangladesh 3.3 121 Mali 1.4 98 Lesotho 3.1 122 Liberia 1.3 99 Nepal 3.1 123 Côte d'Ivoire 1.2 100 Haiti 3.0 124 Guinea 1.1 101 Cameroon 3.0 125 Congo 1.0 102 Cuba 3.0 126 Congo (Dem. Rep.) 1.0 103 Tajikistan 3.0 127 Niger 1.0 104 Togo 3.0 World Average 20.5
Notes: The table includes ITU Member States. Data are unavailable for: Bahamas, Belize, Burundi, Dominica, Equatorial Guinea, French Polynesia, Grenada, Iraq, Kiribati, Korea D.P.R., Marshall Islands, Micronesia, Nauru, Neth. Antilles, S. Tomé & Principe, Samoa, Sierra Leone, Somalia, South Sudan, St. Kitts & Nevis, Timor-Leste, Vanuatu. Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database.
87 Annex 6: Target 4 – Percentage of Individuals using the Internet, Worldwide, 2011
RANK ECONOMY PERCENTAGE RANK ECONOMY PERCENTAGE OF INDIVIDUALS USING OF INDIVIDUALS USING THE THE INTERNET 2011 INTERNET 2011
Annex 6 1 Iceland 95.0 47 Italy 56.8 2 Norway 94.0 48 TFYR Macedonia 56.7 3 Netherlands 92.3 49 Brunei Darussalam 56.0 4 Sweden 91.0 50 Portugal 55.3 5 Luxembourg 90.9 51 Trinidad & Tobago 55.2 6 Denmark 90.0 52 Chile 53.9 7 Finland 89.4 53 Greece 53.0 8 Qatar 86.2 54 Lebanon 52.0 9 New Zealand 86.0 55 Uruguay 51.4 10 Switzerland 85.2 56 Dominica 51.3 11 Liechtenstein 85.0 57 Morocco 51.0 12 Korea (Rep.) 83.8 58 Bulgaria 51.0 13 Germany 83.0 59 Azerbaijan 50.0 14 Canada 83.0 60 San Marino 49.6 15 United Kingdom 82.0 61 Russia 49.0 16 Antigua & Barbuda 82.0 62 Albania 49.0 17 Andorra 81.0 63 Argentina 47.7 18 Austria 79.8 64 Saudi Arabia 47.5 19 France 79.6 65 Kazakhstan 45.0 20 Japan 79.5 66 Brazil 45.0 21 Australia 79.0 67 Romania 44.0 22 Belgium 78.0 68 Seychelles 43.2 23 United States 77.9 69 St. Vincent & Grenadines 43.0 24 Bahrain 77.0 70 Panama 42.7 25 Ireland 76.8 71 Serbia 42.2 26 Estonia 76.5 72 Costa Rica 42.1 27 Singapore 75.0 73 Turkey 42.1 28 Slovak Republic 74.4 74 St. Lucia 42.0 29 Kuwait 74.2 75 Colombia 40.4 30 Czech Republic 73.0 76 Venezuela 40.2 31 Slovenia 72.0 77 Montenegro 40.0 32 Barbados 71.8 78 Belarus 39.6 33 Latvia 71.7 79 Tunisia 39.1 34 Croatia 70.7 80 China 38.3 35 United Arab Emirates 70.0 81 Moldova 38.0 36 Israel 70.0 82 Georgia 36.6 37 Malta 69.2 83 Peru 36.5 38 Oman 68.0 84 Mexico 36.2 39 Spain 67.6 85 Egypt 35.6 40 Lithuania 65.1 86 Dominican Rep. 35.5 41 Bahamas 65.0 87 Viet Nam 35.1 42 Poland 64.9 88 Mauritius 35.0 43 Malaysia 61.0 89 Jordan 34.9 44 Bosnia & Herzegovina 60.0 90 Maldives 34.0 45 Hungary 59.0 91 Cape Verde 32.0 46 Cyprus 57.7 92 Guyana 32.0
88 RANK ECONOMY PERCENTAGE RANK ECONOMY PERCENTAGE OF INDIVIDUALS USING OF INDIVIDUALS USING THE THE INTERNET 2011 INTERNET 2011 93 Suriname 32.0 136 India 10.1 Annex 6 94 Jamaica 31.5 137 Kiribati 10.0 95 Ecuador 31.4 138 Lao P.D.R. 9.0 96 Ukraine 30.6 139 Nepal 9.0 97 Uzbekistan 30.2 140 Pakistan 9.0 98 Tuvalu 30.0 141 Gabon 8.0 99 Bolivia 30.0 142 Botswana 7.0 100 Philippines 29.0 143 Rwanda 7.0 101 Nigeria 28.4 144 Djibouti 7.0 102 Kenya 28.0 145 Eritrea 6.2 103 Fiji 28.0 146 Solomon Islands 6.0 104 Tonga 25.0 147 Congo 5.6 105 Paraguay 23.9 148 Comoros 5.5 106 Thailand 23.7 149 Cameroon 5.0 107 Cuba 23.2 150 Iraq 5.0 108 Syria 22.5 151 Afghanistan 5.0 109 South Africa 21.0 152 Bangladesh 5.0 110 Bhutan 21.0 153 Turkmenistan 5.0 111 Iran (I.R.) 21.0 154 Mauritania 4.5 112 S. Tomé & Principe 20.2 155 Mozambique 4.3 113 Mongolia 20.0 156 Lesotho 4.2 114 Kyrgyzstan 20.0 157 Benin 3.5 115 Sudan 19.0 158 Togo 3.5 116 Swaziland 18.1 159 Malawi 3.3 117 Indonesia 18.0 160 Cambodia 3.1 118 El Salvador 17.7 161 Burkina Faso 3.0 119 Senegal 17.5 162 Liberia 3.0 120 Libya 17.0 163 Guinea-Bissau 2.7 121 Honduras 15.9 164 Central African Rep. 2.2 122 Zimbabwe 15.7 165 Côte d'Ivoire 2.2 123 Sri Lanka 15.0 166 Mali 2.0 124 Yemen 14.9 167 Papua New Guinea 2.0 125 Angola 14.8 168 Chad 1.9 126 Ghana 14.1 169 Madagascar 1.9 127 Algeria 14.0 170 Guinea 1.3 128 Tajikistan 13.0 171 Niger 1.3 129 Uganda 13.0 172 Somalia 1.3 130 Namibia 12.0 173 Congo (Dem. Rep.) 1.2 131 Tanzania 12.0 174 Burundi 1.1 132 Guatemala 11.7 175 Ethiopia 1.1 133 Zambia 11.5 176 Myanmar 1.0 134 Gambia 10.9 177 Timor-Leste 0.9 135 Nicaragua 10.6 World average 32.5
Notes: The table includes ITU Member States. Data are unavailable for: Armenia, Belize, Equatorial Guinea, Grenada, Haiti, Korea D.P.R., Marshall Islands, Micronesia, Monaco, Nauru, Samoa, Sierra Leone, South Sudan, St. Kitts & Nevis, Vanuatu, Vatican. Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database. 89 Annex 7: Target 4 – Percentage of Individuals using the Internet (Least Developed Countries)
RANK LDC 2011 RANK ECONOMY 2011
1 Tuvalu 23 Mozambique
Annex 7 30.0 4.3
2 Bhutan 21.0 24 Lesotho 4.2
3 S. Tomé & Principe 20.2 25 Benin 3.5
4 Sudan 19.0 26 Togo 3.5
5 Senegal 17.5 27 Malawi 3.3
6 Yemen 14.9 28 Cambodia 3.1
7 Angola 14.8 29 Burkina Faso 3.0
8 Uganda 13.0 30 Liberia 3.0
9 Tanzania 12.0 31 Guinea-Bissau 2.7
10 Zambia 11.5 32 Central African Rep. 2.2
11 Gambia 10.9 33 Mali 2.0
12 Kiribati 10.0 34 Chad 1.9
13 Lao P.D.R. 9.0 35 Madagascar 1.9
14 Nepal 9.0 36 Guinea 1.3
15 Djibouti 7.0 37 Niger 1.3
16 Rwanda 7.0 38 Somalia 1.3
17 Eritrea 6.2 39 Congo (Dem. Rep.) 1.2
18 Solomon Islands 6.0 40 Burundi 1.1
19 Comoros 5.5 41 Ethiopia 1.1
20 Afghanistan 5.0 42 Myanmar 1.0
21 Bangladesh 5.0 43 Timor-Leste 0.9
22 Mauritania 4.5 All LDCs 6.0
Notes: The table includes ITU Member States. Data are unavailable for: Equatorial Guinea, Haiti, Samoa, Sierra Leone, Vanuatu. Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database.
90 Annex 8: Target 4 – Percentage of Individuals using the Internet (Developing Countries)
RANK ECONOMY 2011 RANK ECONOMY 2011 1 Qatar 86.2 48 Guyana 32.0 Annex 8 2 Korea (Rep.) 83.8 49 Suriname 32.0 3 Antigua & Barbuda 82.0 50 Jamaica 31.5 4 Bahrain 77.0 51 Ecuador 31.4 5 Singapore 75.0 52 Uzbekistan 30.2 6 Hong Kong, China 74.5 53 Bolivia 30.0 7 Kuwait 74.2 54 Tuvalu 30.0 8 Barbados 71.8 55 Philippines 29.0 9 Israel 70.0 56 Nigeria 28.4 10 United Arab Emirates 70.0 57 Fiji 28.0 11 Oman 68.0 58 Kenya 28.0 12 Bahamas 65.0 59 Tonga 25.0 13 Malaysia 61.0 60 Paraguay 23.9 14 Macao, China 58.0 61 Thailand 23.7 15 Cyprus 57.7 62 Cuba 23.2 16 Brunei Darussalam 56.0 63 Syria 22.5 17 Trinidad & Tobago 55.2 64 Bhutan 21.0 18 Chile 53.9 65 Iran (I.R.) 21.0 19 Lebanon 52.0 66 South Africa 21.0 20 Uruguay 51.4 67 S. Tomé & Principe 20.2 21 Dominica 51.3 68 Kyrgyzstan 20.0 22 Morocco 51.0 69 Mongolia 20.0 23 Azerbaijan 50.0 70 Sudan 19.0 24 Argentina 47.7 71 Swaziland 18.1 25 Saudi Arabia 47.5 72 Indonesia 18.0 26 Brazil 45.0 73 El Salvador 17.7 27 Kazakhstan 45.0 74 Senegal 17.5 28 Seychelles 43.2 75 Libya 17.0 29 St. Vincent & Grenadines 43.0 76 Honduras 15.9 30 Panama 42.7 77 Zimbabwe 15.7 31 Costa Rica 42.1 78 Sri Lanka 15.0 32 Turkey 42.1 79 Yemen 14.9 33 St. Lucia 42.0 80 Angola 14.8 34 Colombia 40.4 81 Ghana 14.1 35 Venezuela 40.2 82 Algeria 14.0 36 Tunisia 39.1 83 Tajikistan 13.0 37 China 38.3 84 Uganda 13.0 38 Georgia 36.6 85 Namibia 12.0 39 Peru 36.5 86 Tanzania 12.0 40 Mexico 36.2 87 Guatemala 11.7 41 Egypt 35.6 88 Zambia 11.5 42 Dominican Rep. 35.5 89 Gambia 10.9 43 Viet Nam 35.1 90 Nicaragua 10.6 44 Mauritius 35.0 91 India 10.1 45 Jordan 34.9 92 Kiribati 10.0 46 Maldives 34.0 93 Lao P.D.R. 9.0 47 Cape Verde 32.0 94 Nepal 9.0 91 RANK ECONOMY 2011 RANK ECONOMY 2011 95 Pakistan 9.0 114 Malawi 3.3 96 Gabon 8.0 115 Cambodia 3.1
Annex 8 97 Botswana 7.0 116 Burkina Faso 3.0 98 Djibouti 7.0 117 Liberia 3.0 99 Rwanda 7.0 118 Guinea-Bissau 2.7 100 Eritrea 6.2 119 Central African Rep. 2.2 101 Solomon Islands 6.0 120 Côte d'Ivoire 2.2 102 Congo 5.6 121 Mali 2.0 103 Comoros 5.5 122 Papua New Guinea 2.0 104 Afghanistan 5.0 123 Chad 1.9 105 Bangladesh 5.0 124 Madagascar 1.9 106 Cameroon 5.0 125 Guinea 1.3 107 Iraq 5.0 126 Niger 1.3 108 Turkmenistan 5.0 127 Somalia 1.3 109 Mauritania 4.5 128 Congo (Dem. Rep.) 1.2 110 Mozambique 4.3 129 Burundi 1.1 111 Lesotho 4.2 130 Ethiopia 1.1 112 Benin 3.5 131 Myanmar 1.0 113 Togo 3.5 132 Timor-Leste 0.9 All developing economies 24.4
Notes: The table includes ITU Member States. Data are unavailable for: Armenia, Belize, Equitorial Guinea, Grenada, Guam, Haiti, Korea D.P.R., Marshall Islands, Micronesia, Nauru, Neth. Antilles, Samoa, Sierra Leone, South Sudan, St. Kitts & Nevis, Vanuatu. Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database.
92 LIST OF ACRONYMS AND ABREVIATIONS
2G Second-Generation mobile 3G Third-Generation mobile 4G Fourth-Generation mobile Acronyms ADSL Asymmetric Digital Subscriber Line ART Anti-retroviral Therapy BCG Boston Consulting Group CAGR Compound Annual Growth Rate CC Creative Commons ccTLD Country Code Top Level Domain CDN Content Distribution Network DSL Digital Subscriber Line € Euro EC European Commission EURid European Registry for Internet Domains FAO Food and Agricultural Organization FCC Federal Communications Commission of the United States FOSS Free and Open Source Software FTTB Fibre-to-the-Building FTTH Fibre-to-the-Home FTTx Fibre-to-the-X G8 Group of 8 Major Economies G20 Group of 20 Major Economies GB Gigabyte Gbps Gigabit per second GDP Gross Domestic Product GHG Greenhouse Gas GIS Global Information Systems GPS Global Positioning System GSMA Global Systems for Mobile Communications Association GSR Global Symposium for Regulators GVA Gross Value-Added IC4D Information and Communications for Development ICT Information and Communication Technology IDA Infocomm Development Authority of Singapore IDB Inter-American Development Bank IDN International Domain Name IFFCO Indian Farmers Fertilizers Co-operative IMSO International Mobile Satellite Organization INSEAD Institut Européen d’Administration des Affaires (European Institute of Business Administration) IP Internet Protocol IP Intellectual Property (in Featured Insight 24)) ISOC Internet Society IT Information Technology ITSO International Telecommunications Satellite Organization ITU International Telecommunication Union ITU – R International Telecommunication Union Radiocommunication Sector IXP Internet Exchange Point LAN Local Area Network 93 LDC Least Developed Country LTE Long-Term Evolution M2M Machine to Machine MB Megabyte Acronyms Mbps Megabit per second MDGs Millennium Development Goals MHz MegaHertz MMS Multimedia Messaging Service Mpixel Megapixel MPLS Multi-Protocol Label Switching NBN National Broadband Network NGA Next-Generation Access NGN Next-Generation Networks NGO Non-Governmental Organization OCW Open Courseware OECD Organisation for Economic Co-operation and Development OSI Open Systems Interconnection PC Personal Computer PPP Public Private Partnership QoS Quality of Service R&D Research and Development ROI Return on Investment SDGs Sustainable Development Goals SIM Subscriber Identity Module SME Small- and Medium-sized Enterprise SMS Short Message Service TASIM Trans-Eurasian Information Super Highway Project TCO Total Cost of Ownership TLD Top-Level Domain TMT Technology, Media, Telecommunications UAS Universal Access and Service UNCTAD United Nations Conference on Trade and Development UNDESA United Nations Department of Economic and Social Affairs UNDP United Nations Development Programme UNESCO United Nations Educational, Cultural and Scientific Organization UNPAN United Nations Public Administration Network UNSPECA United Nations Special Programme for the Economies of Central Asia UPE Universal Primary Education USD United States Dollar USF Universal Service Fund USO Universal Service Obligation VAT Value-Added Tax VDSL Very High Bit Digital Subscriber Line VoIP Voice over Internet Protocol VSAT Very Small Aperture Terminal W-CDMA Wideband Code Division Multiple Access WIPO World Intellectual Property Organization WLAN Wireless Local Area Network WRC World Radiocommunication Conference WSIS World Summit on the Information Society WTIM World Telecommunication/ICT Indicators Meeting 94
International Telecommunication Union Place des Nations CH-1211 Geneva 20 Switzerland
Printed in Switzerland, Geneva September 2012
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