INVESTMENT, INNOVATION AND COMPETITION IN ICT INFRASTRUCTURE 1 Position paper TELCO: INVESTMENT, INNOVATION AND COMPETITION IN ICT INFRASTRUCTURE Huawei Technologies Co., Ltd. 2 INVESTMENT, INNOVATION AND COMPETITION IN ICT INFRASTRUCTURE INVESTMENT, INNOVATION AND COMPETITION IN ICT INFRASTRUCTURE 3 Table of Contents Executive summary 6 1.ICT infrastructure and connectivity are fundamental to modern society .....................................7 1.1.The rapid growth of ICT infrastructure and improving connectivity of the world ........................................................ 7 1.1.1.Rapid development of ICT infrastructure ......................................................................................................... 8 1.1.2.The significant improvement of internet access and connectivity .............................................................. 12 1.1.3.Expansion in bandwidth and acceleration in connection speed ................................................................. 14 1.2.ICT becoming fundamental to modern society and helping achieve sustainable development of human society ................. 16 1.2.1.ICT and connectivity is the basic building block of modern society ............................................................. 17 1.2.2.ICT helps achieving sustainable development of human society (UN SDGs) ........................................... 18 1.3.Digital divide & ICT investment to close it ........................................................................................................... 20 2.ICT's impact on national economic development ...........................................................................26 2.1.ICT's impact on national economic growth ..................................................................................................................... 26 2.2.ICT's impact on development of different industries .................................................................................................... 27 2.2.1.ICT's improving impact to economy ................................................................................................................. 28 2.2.2.ICT's transformational impact to economy .................................................................................................... 32 2.2.3.ICT's disruptive impact to economy ................................................................................................................ 38 4 INVESTMENT, INNOVATION AND COMPETITION IN ICT INFRASTRUCTURE 3.ICT's impact on societal wellbeing and public affairs .....................................................................42 3.1.ICT changes education approach and increases accessibility ..................................................................................... 42 3.2.ICT promotes culture communication and exchange ................................................................................................... 45 3.3.ICT helps relief unemployment issues ............................................................................................................................ 46 3.4.ICT improves safety and security of both individuals and society ............................................................................... 48 3.5.ICT enhances efficiency and transparency of government affairs ............................................................................. 50 4.Government creating a favorable environment for ICT investment, innovation and competition ...................................................................................................................52 4.1.Government supporting and stimulating investment in ICT infrastructure ............................................................... 53 4.1.1.Public-private partnership ................................................................................................................................. 54 4.1.2.Tax relief and subsidy .......................................................................................................................................... 55 4.1.3.Tariff concession .................................................................................................................................................. 56 4.1.4.Infrastructure construction collaboration....................................................................................................... 57 4.1.5.Right of Way ......................................................................................................................................................... 60 4.1.6.Innovative and alternative technologies for ICT infrastructure – e.g. WTTx ................................................ 60 4.2.Government encouraging ICT innovation ........................................................................................................................ 61 4.2.1.Innovation hub and incubator ........................................................................................................................... 61 4.2.2.Funding and investment ................................................................................................................................... 63 4.2.3.Talent training and cultivation .......................................................................................................................... 64 4.2.4.Cyber security ..................................................................................................................................................... 65 INVESTMENT, INNOVATION AND COMPETITION IN ICT INFRASTRUCTURE 5 3.ICT's impact on societal wellbeing and public affairs .....................................................................42 4.3.Government guiding and regulating ICT competition ................................................................................................... 66 3.1.ICT changes education approach and increases accessibility ..................................................................................... 42 4.3.1.Operator competition regulation ...................................................................................................................... 66 3.2.ICT promotes culture communication and exchange ................................................................................................... 45 4.3.2.Frequency spectrum allocation and management ...................................................................................... 69 3.3.ICT helps relief unemployment issues ............................................................................................................................ 46 5.Conclusion and recommendation .....................................................................................................71 3.4.ICT improves safety and security of both individuals and society ............................................................................... 48 5.1.ICT development is an important trend that significantly benefits economics and societal wellbeing of countries 3.5.ICT enhances efficiency and transparency of government affairs ............................................................................. 50 round the globe ................................................................................................................................................................... 75 4.Government creating a favorable environment for ICT investment, 5.2.Government creating a favorable environment for ICT investment, innovation, and competition is very critical 71 innovation and competition ...................................................................................................................52 5.2.1.Government supporting and stimulating investment in ICT infrastructure ............................................... 73 4.1.Government supporting and stimulating investment in ICT infrastructure ............................................................... 53 5.2.2.Government encouraging ICT innovation ....................................................................................................... 74 4.1.1.Public-private partnership ................................................................................................................................. 54 5.2.3.Government guiding and regulating ICT competition ................................................................................... 75 4.1.2.Tax relief and subsidy .......................................................................................................................................... 55 5.3.Government should support ICT development thereby benefiting economics and social well-being ................. 76 4.1.3.Tariff concession .................................................................................................................................................. 56 Appendix ...................................................................................................................................................77 4.1.4.Infrastructure construction collaboration....................................................................................................... 57 Appendix 1: Literature review on ICT-to-GDP analysis ......................................................................................................... 77 4.1.5.Right of Way ........................................................................................................................................................