Local content, Internet infrastructure and access prices

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1 Local content, Internet infrastructure and access prices WSIS Forum 2012 Geneva, Switzerland 14 May 2012 Taylor REYNOLDS The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the OECD or its Membership.

2 Advances in information sharing

3 Oral histories

4 Written language

5 15 th Century: Printing press Gutenberg s press 300 books 3 scribes = Entire life 3 printers = 3 months Early runs were thought to be 100 to 300 copies

6 1960: Photocopiers

7 Persistent literacy challenges Source: World Bank (latest figures from )

8 Voice and images

9 Telephony

10 Multimedia 1941: Commercial TV broadcasting 1951: Portable transistor radios 1971: VCR 1982: CD 1996: DVD

11 The Internet

12 The Internet in knowledge sharing Creation Preservation Dissemination Utilisation -Pen/pencil -Computers -Software -Cameras -Mobile phones -Internet (applications) -Paper/printing -Recording devices -Magnetic tape -Hard drives -Internet (storage) -Paper/printing -Photocopier -Telephony -Broadcasting -Internet (hosting) -Computers -Mobile phones -Televisions -Radios -Education -Internet (access)

13 Creation

14 Preservation Number of gigabytes of data that can be stored for USD 1 Notes: Hard drive storage calculations: 2 TB internal hard drive for USD DVD price calculations: 500 DVD-R with 4.7 GB of storage each for USD CD price calculations: 100 CD-R with 700 MB of storage each for USD Amazon S3 pricing: Online storage for USD 0.14 per GB per month,

15 Dissemination

16 Utilisation

17 The Internet & local content

18 Local content The content that is most important to people is typically in their own language and is relevant to the communities in which they live and work. Communities may be defined by location, culture, language, religion, ethnicity or area of interest Individuals may belong to many communities at the same time. Communities evolve so what is relevant will change over time. This relevant content is often referred to as local content

19 Communities Some possible communities Kenyan/Tanzanian Nilotic peoples Maasai Common language ɔl Maa Kiswahili/English Religion Common interests Animal husbandry Samsung mobile phone users Other

20 Example: Dissemination Techtronic Sound Podcast of music produced and submitted by independent artists 120+ episodes of roughly 45 minutes each Started by a music fan as a way to promote the music he enjoyed. Techtronic Sound:

21 Policy goals More Internet connectivity is good Internet infrastructure More local content is good Lower prices are good Local content Network prices

22 Testing the relationships

23 Develop measures of local content, Internet development & access prices

24 Measuring local content Local content Measurements tied to an economy Measurements tied to a language Web pages using country-code top level domains per 1000 inhabitants Number of Wikipedia articles per language per inhabitant Number of published blogs per language per inhabitant

25 Measuring infrastructure Internet infrastructure Broadband subscription rates per 100 inhabitants Autonomous systems per inhabitants Routed IPv4 addresses per capita International bandwidth capacity per capita

26 Measuring prices Network prices Domestic Internet prices International Internet prices Fixed broadband monthly subscription fee Average price for 155 Mbit/s of IP transit (full port price)

27 Results

28 Relationship mapping Other factors (demographic, educational, geographical, etc.) Local content Internet infrastructure Internet prices general economic performance

29 Results: Internet and local content INTERNET DEVELOPMENT LOCAL CONTENT A. Broadband penetration B. Autonomous systems C. International bandwidth Wikipedia entries INTERNET DEVELOPMENT Autonomous systems LOCAL CONTENT Web pages per cctld per capita INTERNET DEVELOPMENT Routed IPv4 addresses per capita LOCAL CONTENT Blogs per country, per capita

30 Results: Internet and access prices INTERNET DEVELOPMENT PRICE International bandwidth capacity (International) Fixed broadband monthly price (Domestic) INTERNET DEVELOPMENT Autonomous systems per inhabitants (Domestic) INTERNET DEVELOPMENT PRICE IP transit price (International) Broadband penetration rates (Domestic)

31 A focus on development

32 The Internet gap

33 Problem: Expensive access Lack of internal data exchanges (IXPs) B Tromboning means higher prices for local Internet access A C

34 Problem: Latency Response times will be slower for end users because of distance Increased potential for international congestion More expensive access

35 IXP Distribution (2011) Countries with IXPs; 89 Countries without IXPs; 158 Source: Packet Clearing House:

36 Cooperation as a model Local operators can significantly reduce their international transit costs by exchanging traffic locally The emergence of a local exchange also reduces barriers for emerging firms in the local market IXPs can significantly improve the experience for users

37 Overall policy considerations Foster content development Promote skills, reduce trade barriers on equipment, levies on recording media Governments putting public-sector data on the Internet Expand connectivity Increase spectrum availability, improve international capacity Create domestic Internet exchanges Lay infrastructure when other public works are taking place Promote competition Liberalise telecom markets, Remove barriers to entry

38 Thank you

39 Results (Internet & local content)

40 Results (Internet & prices)

41

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