National Broadband Plan: Best Practices

GET CONNECTED. [email protected] www.btrc.gov.bd +880-1552202725, DIRECTOR (SYSTEMS & SERVICES), BTRC, RAMNA, DHAKA

WTISD, 2011

BANGLADESH

Connect the Unconnected

National Broadband Plan

Best Practices

GET CONNECTED. [email protected] www.btrc.gov.bd +880-1552202725, DIRECTOR (SYSTEMS & SERVICES), BTRC, RAMNA, DHAKA 2

TABLE OF CONTENTS

• Benefit of Broadband, Correlation between GDP and Penetration?

• Do we really need a National Broadband Plan?

• National Broadband Plan, what others are saying?

• Some Best Practices, Case studies or Surveyed Information?

CORRELATION BETWEEN PENETRATION

FINANCIAL GROWTH

DEMAND SIDE AND SUPPLY SIDE DRIVERS


BROADBAND: MYTHS

• Higher per-capita incomes mean - can more people afford to purchase

broadband connectivity?

• Does broadband stimulate the economy, or does a growing economy lead to

take-up of broadband?

• Broadband can be of benefit to micro-enterprises in emerging markets, most

says, to a greater extent than mobile handset connectivity?

• To maximize the potential of broadband in emerging markets, do we consider

both the demand-side and the supply-side drivers of broadband growth?


Source: The World Bank Group (Washington, DC, 2009), Information and Communications for Development 2009: Extending Reach and Increasing Impact.

For every 10 percentage-point increase in broadband penetration there is an increase of 1.3 percentage points in economic growth.

Between 2000 and 2007, the ICT sector accounted for 3 to 7 percent of GDP, regardless of the country’s level of income.

ECONOMIC STUDIES: PENETRATION VS. ECONOMIC GROWTH

Broadband Penetration and Gross National Income in Various Economies


ECONOMIC STUDIES: PENETRATION VS. ECONOMIC GROWTH

Impacts of Broadband on Economic Activities in U.S. Communities

Source: The World Bank Group (Washington, DC, 2009), Information and Communications for Development 2009: Extending Reach and Increasing Impact.


GROWTH EFFECTS : BROADBAND

Developing Economy

with an average of 10

broadband subscribers

per 100 people would

have enjoyed a 1.38

percentage point

increase in per capita

GDP growth.


BROADBAND > PRODUCTIVITY > GENERATE NEW JOBS

Correlation between GDP Growth and Broadband Penetration

• Introduction of high-speed communications infrastructure makes it possible to welcome foreign business, such as outsourcing, and also facilitates innovation, with business and connectivity aggregation to local level.

ICT Related patents as a percent of National total

Source: OECD Patent Database 2005

7


BROADBAND PROJECTIONS: COUNTRY SPECIFIC

Even in the economic downturn, many governments are allocating funds in their economic

stimulus packages specifically for investment in broadband.

The USA has committed USD7.2 billion to the expansion of rural broadband coverage.

Australia has dedicated just over half (USD30 billion) of its total economic stimulus package to broadband.

In 1990s, South Korea created a durable backbone structure for long-term broadband policy by passing a law requiring review of a national broadband strategy every 5 years.

The Korean government built this national optic backbone in the initial stage, followed by a facilitation role in the growth stage.

8

Sou

rce:

An

alys

ysM

aso

n, F

CC

, OEC

D, A

CC

C W

ebsi

te


BROADBAND PROJECTIONS: COUNTRY SPECIFIC

Japan created an IT Strategy Headquarters to oversee the execution of its broadband strategies, beginning with the e-Japan Strategy of 2001.

In June 2009, the U.K. government published Digital Britain, its first broadband plan.

Department for Culture, Media and Sport and Department for Business, Innovation and Skills, Digital Britain: Final Report (2009), available at http://www.culture.gov.uk/images/publications/digitalbritainfinalreport-jun09.pdf.

In Japan, government used financial incentives in the growth phase of industry to develop core & access infrastructure.

BB market in Australia has been developed under the PPP model supported by financial incentives from government.

9

Sou

rce:

An

alys

ysM

aso

n, F

CC

, OEC

D, A

CC

C W

ebsi

te


THE NATIONAL BROADBAND PLAN: CONNECTING AMERICA

10


USA [1/2]: FULFILLING THE CONGRESSIONAL MANDATE [JUST A FEW ..]

• In early 2009, Congress directed the Federal Communications Commission (FCC) to

develop a National Broadband Plan to ensure every American has “access to

broadband capability.”

• Establishing competition policies.

• Ensuring efficient allocation and use of government owned and government-

influenced assets.

• Make 500 megahertz of spectrum newly available.

11

Source: US Connecting America: The National Broadband Plan.www.broadband.gov/plan/


USA [2/2]: FULFILLING THE CONGRESSIONAL MANDATE [JUST A FEW ..]

• Create the Connect America Fund (CAF) to support the provision of affordable

broadband and voice with at least 4 Mbps and shift up to $15.5 billion from

Universal Service Fund (USF).

• Reform inter-carrier compensation, which provides implicit subsidies to telephone

companies by eliminating per-minute charges.

• Broadband plan for Health care, Education and Public safety.

• Broaden the USF contribution base to ensure USF remains sustainable over time.

12

Source: US Connecting America: The National Broadband Plan. www.broadband.gov/plan/


DEVELOPED TARGET: 4MBPS BY 2020

Source: US Connecting America: The National Broadband Plan. www.broadband.gov/plan/

13


DETERMINING BROADBAND AVAILABILITY GAP, WHO ELSE TO CONNECT TO?

FCC analysis finds that the level of additional fundingrequired is approximately $24 billion (present value in 2010dollars) for this gap.

Source: US Connecting America: The National Broadband Plan.

14


USA NBP LAUNCHED AT 2010, GOVT INTERVENED

Sou

rce:

An

alys

ysM

aso

n, F

CC

, OEC

D, N

BP

Web

site

15

NBP= National Broadband Plan


MALAYSIA: GOVT KICK-STARTED BB GROWTH BY DEPLOYING BACKBONE INFRA

Sou

rce:

An

alys

ysM

aso

n, F

CC

, OEC

D, N

BP

We

bsi

te

Telekom Malaysia predicts that its high-speed broadband roll-out will boost

GDP by 0.6% by 2017 and create 100000 jobs.

16

Telekom Malaysia Berhad (Kuala Lumpur, 2009), HSBB project boosts capacity building, technology transfer and business activity for the economy.


GLOBAL EXPERIENCE: MOSTLY PPP/FINANCIAL INCENTIVES/DIVESTING INCUMBENT’S BACKHAUL

Sou

rce:

An

alys

ysM

aso

n, F

CC

, OEC

D, N

BP

Web

site

17


INDIA: BB PENETRATION AS IT REFLECTS TO GDP

• Increase in broadband

penetration of 1% will

contribute INR 162 bn, or

0.11% to Indian GDP in 2015.

• Allocation of additional 5 MHz

of 3G spectrum will increase

BB penetration by 3.3% of

population and enhance GDP

by INR 538 bn in 2015.

1. Based on World Bank report; 2. Consultation Paper on National Broadband Plan – 10th June 2010 – TRAI, GSMA Report

18


INDIA: PROPOSED INVESTMENT MODELS; ANALYSYS MASON & CII

Sou

rce:

An

alys

ysM

aso

n, I

nd

ust

ry In

pu

ts, C

II

19


BROADBAND METHODOLOGY

Demand aggregation

South Korea aggregated and guaranteed demand from public-sector bodies in

order to improve operators’ business plans.

Three phases of roll-out of broadband services, the government paid a total of

USD900 million for fibre backbone and access network, in exchange for

broadband services being provided to all public-sector bodies.

Aggregate and guarantee demand from the public sector.

Source: 1. The World Bank Group (Washington, DC, 2009), Broadband for Africa: policy for promoting the development of backbone networks.2. Creating successful broadband policies in developing countries by Daniel Jones and Martin Scott; August 2009; Analysys Mason.

20


BB METHODOLOGY

Reverse subsidy auctions

In a reverse subsidy auction the winner is the party that bids the least, for the value of the subsidy for which they are willing to carry out the specified task.

Minimizing the cost of the subsidy awarded.

Peru, with the aim of providing broadband access to 2840 localities - competitive bidding process (Reverse subsidy auctions), the winning bids totaled USD15.1 million from USD18.6 million.

21

Source: 1. The World Bank Group (Washington, DC, 2009), Broadband for Africa: policy for promoting the development of backbone networks.2. Creating successful broadband policies in developing countries by Daniel Jones and Martin Scott; August 2009; Analysys Mason.


MORE BEST PRACTICES …

Undertake an analysis of competitiveness in the broadband

market

Create a broadband promotion agency, Broadband Commission

Aggregate public-sector demand

Subsidize expansion of broadband access

Digital literacy and awareness of the benefits of broadband

Source: Creating successful broadband policies in developing countries by Daniel Jones and Martin Scott; August 2009, Analysys Mason.

22


OPEN SESSION

Source: Peter Broelman; http://newmatilda.com/2009/04/09/43-billion-elephant-0

23

National Broadband Plan: Best Practices

Documents

Transcript of National Broadband Plan: Best Practices