World Bank regional broadband programs and proposed Central Asian regional fiber optic network (CARFON) Juan Navas-Sabater Program Leader
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1 World Bank regional broadband programs and proposed Central Asian regional fiber optic network (CARFON) Juan Navas-Sabater Program Leader June 2015
2 Outline World Bank Group Regional Broadband Programs: o Africa Regional Broadband Programs o Caribbean Regional Communications Infrastructure Program (CARCIP) Proposed Central Asia Regional Fiber Optic Network (CARFON) Presentation Title
3 Rationale for Regional Broadband Programs Broadband contributes to growth, employment, innovation, trade Regional broadband integration multiplies those impacts and especially for landlocked countries ** McKinsey & Company, Mobile broadband for the masses, February 2009, p. 4 Source: World Bank (2009), ICT4D
4 Improved Internet connectivity = Economic benefits Sharing prosperity and supporting inclusion Jobs Online work and other ICT-enabled jobs are growing rapidly, and need good quality and affordable connectivity McKinsey Global Institute: SMEs that integrated the Internet into their businesses created twice as many jobs as the average Services ICTs support e-government improved access to affordable ICTs especially through Internet-enabled devices can help people in remote areas to access information, financial markets, and public services Can deepen citizen engagement through use of more affordable ICTs Increasing incomes and growth Trade Telecom networks underpin a majority of global trade in goods and services: a third of global GDP is from cross-border flows, share of knowledge-intensive goods and services is growing fastest For SMEs, ICT facilitates access to scale markets to sell goods and services, access labor and finance Innovation SMEs that spend more than 30 percent of their budget on Web technologies grow their revenue nine times as fast as SMEs spending less than 10 percent High quality and affordable broadband connectivity is a sine qua non for innovation and collaborative production today
5 Africa Regional Broadband Programs Full Connectivity Solutions at International, Regional, Crossborder, National levels leveraging Public & Private funding and alternative infrastructure RCIP (East/Southern) - $424m EaSSy Submarine Cable $235m ($32m IFC) Central Afr. Backbone - $215m West Africa Reg. Com. Infrastructure - $305m Drastic drop in Internet wholesale prices; connected Africa to the world
6 Africa Regional Communications Infrastructure Program (RCIP) Programmatic Approach (up to $424 million): Kenya, Burundi and Madagascar in Phase 1 ($165 m) Other countries up to 25 joining on a readiness basis 4 Main components ( Menu of options ): Enabling Environment Component Telecom Regulation Connectivity Regional backhaul and national backbone networks Government pre-purchase of capacity wholesale services for use in schools, hospitals, targeted user groups Landing stations Rural ICT Transparency / Traffic Stimulation Component e-government IT industry development Connectivity for BPO industry 5
7 Caribbean Regional Communications Infrastructure Program (CARCIP) Significant improvement in ICT infrastructure in the region, but gaps remain: National level: little investment in broadband networks beyond main urban centers, especially in the form of fiber backbone Regional Level: Inadequate connectivity between countries International level: Most countries served by only one alternative international cable Governments realize benefits of ICT for economic growth and diversification, employment generation, competitiveness, resilience to natural disasters and overall regional integration missing link links CARCIP program structured in several phases: Phase 1: 3 countries, $25 million Phase 2: Dominican Republic, $30 million Phase 3: additional countries, including Caribbean part of Central America 6
8 CARCIP Menu of Options 3 components Connectivity Infrastructure: Telecommunications regulation Landing stations, submarine cables, cross-border fiber links, IXPs Broadband backbone networks, rural access Government networks (GovNet), emergency communications ICT-Led Innovation: Policy support for IT/ITES industry Regional network of IT parks and business incubators Skills development: certification programs, university-industry collaboration, diaspora knowledge Entrepreneurship financing: Venture Capital Funds E-Transformation: Legal and regulatory framework, e-government standards, interoperability frameworks Government cloud infrastructure, e-security infrastructure E-services, mobile apps Digital literacy, credit to increase device penetration 7
9 Proposed Central Asia Regional Fiber Optic Network (CARFON) Each country in the Central Asia region suffers from poor quality and expensive internet connectivity A regional, cross-border approach is needed to create links for CA countries to the global Internet Improving regional connectivity will have three benefits: Globally, creates an alternative to the Suez Canal for global fiber optic connectivity Regionally, ends the isolation of landlocked CA by connecting countries better to international telecom networks Nationally, helps bring down costs of connectivity, linking SMEs and workers to global opportunities; helping in delivery of public services (e.g. education, health, governance, etc.)
10 Many possible routes, to be determined based on country participation and investors preferences Multiple routes are possible, depending on the interest of the investor(s) and number of countries joining. Start and end points could be: Karachi, Moscow, Frankfurt, Almaty, Shanghai each of these points is connected to multiple global fiber optic networks (serving as major hubs on the global Internet) Routes could be via (combinations of): 1. Afghanistan, Tajikistan, KR 2. Azerbaijan and Georgia (to Frankfurt) 3. China Various routes could connect with existing or planned fiber optic networks including TASIM (via Baku) or HSIB (supported by the SCO); or leverage fiber on other infrastructure networks (CASA-1000)
11 CARFON Menu of Options Preliminary Proposal Telecommunications Reforms: Regulatory reform to open markets and promote competition Institutional strengthening of regulators Connectivity Infrastructure: Regional Backbone made up of existing fiber networks and creation of new cross-border fiber links National backbone networks Rural access networks Government pre-purchase of capacity Government private network (GovNet) Demand-side support Cloud infrastructure/data centers E-government and open data initiatives IT industry support initiatives ICT skills initiatives and access to devices 10
12 THANK YOU!
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