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Building Broadband for Development. January 21, 2010. Agenda. Trends and Economic Importance of Broadband Building Broadband Study commissioned in first round of KTF awards and completed in January 2010 Future Broadband Work
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Building Broadband for Development January 21, 2010
Agenda • Trends and Economic Importance of Broadband • Building Broadband • Study commissioned in first round of KTF awards and completed in January 2010 • Future Broadband Work • Broadband Strategies Toolkit (funding approved by the second round of KTF) • Country-level broadband TA (e.g. Egypt)
Trends (1/2) # of countries with commercially-available broadband
Trends (2/2) Broadband Penetration is closely associated with per capita income.
Economic Impact Broadband contributes to growth and opens up new opportunities, for which it deserves a central role in development strategies. Impact on GDP of a 10% increase in penetration of ICTs
Rationale for Public Intervention? • Externalities • Spillover effect • Network effect • Public Goods Aspects • Benefiting all the users simultaneously • Largest platform to deliver information • Platform to deliver public and social services
Building Broadband Table of contents Status and Importance of Broadband Rethinking broadband as an ecosystem Broadband market development in the Republic of Korea (Ovum) Experiences of other broadband leaders (Prof. Rob Frieden) Strategies to build the broadband ecosystem Policies and programs to build broadband Building blocks for broadband • Team: Yongsoo Kim (TTL), Tim Kelly, Siddhartha Raja
Learning from the Pros Broadband penetration in selected economies, 2000-09 • Among the seven economies studied, all have reached a high level of market penetration • Korea stands out for “defying the S curve” • Some early leaders, like US, have fallen behind
Sequencing in Korea • Greater Gov’t involvement in early stages • US$32bn investment • Progressive shift to higher performance infrastructure
Policies and Programs • Early Stage: Promote • Supply-side pump priming, including releasing spectrum, licensing competition, backbone networks, reducing investment costs • Demand side facilitation, such as digital literacy, demand aggregation, low-cost devices • Mid Stage: Oversee • Market entry, including local-loop unbundling • Regulate unfair practices • Late Stage: Universalize • Consider defining broadband as a universal service • Subsidizing roll-out in rural areas
Building Blocks for Broadband Mobile and broadband, penetration rate per 100 inhabs, by year since inception Be visionary, yet flexible Use competition to promote market growth Facilitate demand
Broadband Strategies Toolkit • Phase I: Handbook (2010 – mid 2011) • 1. The case for broadband • 2. Broadband strategies and policies • 3. Making broadband work for development • Executive Summaries of other modules • Phase 2: Toolkit (mid 2011 – 2012) • 4. Regulatory reform and legal issues • 5. Building connectivity • 6. Extending access through Public / Private Initiatives • 7. Facilitating Demand • Phase 3: Dissemination (2012 – 2013) • Training Materials • Self-assessment tool for policy-makers