Compara've analysis of four Government Broadband Ini'a'ves: India, Malaysia, Indonesia and Australia
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1 Compara've analysis of four Government Broadband Ini'a'ves: India, Malaysia, Indonesia and Australia Rohan Samarajiva, Vigneswara Ilavarasan Marawila, September, 2015
2 Internet Ecosystem Infrastructure Affordable User- friendly Devices 1Malaysia Netbook DistribuIon HSBB NOFN Palapa NBN Australia FTTH Ring fiber in from connecing industrial wholesale block areas BBGP to all network gram Islands connecivity panchayat FTTH, through fixed fiber via level muliple wireless tech or Satellite in rural areas Indonesia Australia Malaysia India Skilled Users Government Broadband Carnivals, User Network ICT Training Programs to improve ICT Affordable Anchor client packages literacy Digital Tax breaks Literacy Program AHracIve Content/ ApplicaIons E- gov, IntroducIon e- health, e- educaion, of e- gov, e- commerce educaion and My1Content e- health portal App Development Centre 2
3 India NaIonal OpIcal Fiber Network (NOFN) Point of Interface Block Point of Interface At Gram Panchayat ConnecIvity State owned Telco and Public Fiber Networks BBNL PoP Pilot- 58 GPs connected Target GPs Private Telecom Operators Customers DomesIc Access Network Implemented by BBNL SPV (BSNL, Railtel, PowerGrid ), wholesale bandwidth provider. CosIng 4.6 B USD. Digital India Cost 18 B USD. 3
4 Indonesia Palapa Ring ConnecIvity Fiber network connecing all islands Private Telecom Operators Customers DomesIc Access Network 446 ciies implemented by PT Telekom, incumbent. 51 in least commercial ciies to be implemented through government subsidized aucions. EsImated cost 1B USD. 4
5 Malaysia High Speed Broadband Network (HSBB) as at April Tbps total BW Capacity (from 682Gbps) ConnecIvity 25 Operators for HSBB Transmission TM Fiber Network DomesIc 5 Operators for HSBB Access Access Network 1.5 million Ports installed Customers 723,014 Subscribers (48% take up) Implemented by Telekom Malaysia, as a PPP with Gov. Total cost 3.5B USD, out of which Gov spent 0.75B. CondiIons to access network commercially negoiated Broadband for General PopulaIon subsidizes BB in rural areas using USP 5
6 Australia NaIonal Broadband Network (NBN) ConnecIvity NBN Co Fiber network Private Telecom Operators Customers DomesIc Access Network Implemented by NBN Co (wholesale- only SPV, providing retail telecom SPs with access). EsImated cost 40B USD. Was planned as FTTH iniially in 2009 but aeer Gov changed from Labor to CoaliIon, in 2013, muli technology approach favored. Companies Act and Access Act in place to ensure transparent and non discriminatory process. 6
7 Cost vs Fiber deployed 350, , ,000 India NOFN(6 years) Australia (12years) Fiber Route Km 200, , ,000 50,000 0 Malaysia (1.5 years) Indonesia (6 years) Cost to Government (Billion USD) 7
8 Comparison of Gov IniIaIves Encourage more PPPs in undersea cables - Malaysia Increase resilience through terrestrial internaional links DomesIc Fiber backhaul network Malaysia, Australia Push fiber as far as possible with technology neutral open access India, Indonesia Provide ROW to implementers Access Network FTTH (claims open access but prices commercially negoiated and not transparent) Malaysia Started as FTTH, but changed to MulI Technology to reduce costs and implementaion Ime Australia 8
9 Cost to Gov. (USD Bil.) Implementa'on En'ty Scope of Project Open Access? Timely implementa' on India 4.6 BSNL SPV Malaysia 0.75 ConnecIvity from Block to 250,000 GP 301,000 km fiber TM (selected with no tender process, other FTTH in high industrial operators not areas only considered) PPP 46,986 km fiber CondiIons being discussed, Tariff on web No transparent condiions or pricing, but other operators have signed up Delayed (2016) Completed on Ime (2010) Australia 40 Indonesia 1 NBN Co Wholesale only SPV PT Telekom (other operators not considered) ConnecIvity of whole country through FTTH, Clear legislaion on fixed wireless and non discriminatory satellite open access and 255,000 km fiber transparent pricing ConnecIvity of Eastern non commercial ciies 25,000 km fiber CondiIons have not been agreed Delayed (2019) Delayed (2015) 9
10 Conclusion Mobile Vs fixed BB negoiaions & aspiraions Willingness to pay for high- speed BB - > marginal Need for demand- side simulaion including, training, awareness campaigns, affordable user- friendly devices and ahracive local language content. Technology neutrality & longevity? Open transparent tender process when selecing implementer Open access to fiber backhaul network with transparent, non- discriminatory condiions and pricing. 10
11 Useful Reading Analysys Mason. (2010). Deployment models and required investments for developing rural broadband infrastructure in India. Gurgaon: Analysys Mason. KPMG and CII. (2013). viable business models for inclusive growth through the Fiber Network, New Delhi: ConfederaIon of Indian Industries. Kelly, T and RossoHo, C. M. (Eds). (2010). Broadband strategies handbook. Washington: The World Bank. 11
12 Q? 12
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