Improved Regional Fiber Connectivity via Digital CASA: The Opportunity for Central and South Asia

Similar documents
Connectivity in Central Asia

Pan Asian Connectivity: Leveraging Linear Infrastructure for Improved International Bandwidth

DIGITAL CENTRAL ASIA SOUTH ASIA (CASA) PROGRAM. Transport and ICT Global Practice World Bank

Broadband Infrastructure in the ASEAN Region

Improving Regional Connectivity. Asian Information Superhighway

Terabit Consulting: Broadband and Fiber Optic Market Analysis

Lighting the Way to Bandwidth Equality

BY FIKRET PASHAYEV, SENIOR ADVISER OF THE TASIM SECRETARIAT AT HIGH-LEVEL REGIONAL ROUNDTABLE ON TELECOMMUNICATIONS CONNECTIVITY IN CENTRAL ASIA

Broadband Infrastructure in North Asia and Central Asia

UN ESCAP ISOC Study Unleashing the Potential of the Internet in Central Asia and Beyond

PPP and regional infrastructure networks

UN ESCAP ISOC Study Unleashing the Potential of the Internet in Central Asia and Beyond

World Bank regional broadband programs and proposed Central Asian regional fiber optic network (CARFON) Juan Navas-Sabater Program Leader

ASIA-PACIFIC INFORMATION SUPERHIGHWAY (AP-IS) AND ASIAN HIGHWAY NETWORK

Smart infrastructure: unleashing ICT and road synergies

Strengthen the Interconnection Cooperation, Promote ICT Development in ASP

Building Blocks and Rationale of Broadband Plans

THE STATE OF ICT IN SOUTH AND SOUTH-WEST ASIA

ASIA PACIFIC INFORMATION SUPERHIGHWAY (AP-IS) Ms. Atsuko Okuda, Chief ICT and Development Section ICT and Disaster Risk Reduction Division ESCAP

ICT and Disaster Risk Reduction Division ESCAP

Emerging Subsea Networks

ICT and Disaster Risk Reduction Division ESCAP

Background Brief. The need to foster the IXPs ecosystem in the Arab region

COUNTRY PROFILE. Colombia

COUNTRY PROFILE. Bulgaria

BUILDING SYNERGIES THROUGH CO-DEPLOYMENT

COUNTRY PROFILE. Estonia

Building a case for interconnection and peering in Africa

OECD Experts Meeting on Telecommunications Services

We are also organizational home of the Internet Engineering Task Force (IETF), the premier Internet standards-setting body.

First Session of the Asia- Pacific Information Superhighway Steering Committee, 1-2 November 2017, Dhaka, Bangladesh.

Background Brief. The need to foster the IXPs ecosystem in the Arab region

COUNTRY PROFILE AUSTRALIA

COUNTRY PROFILE. Philippines

COUNTRY PROFILE. Qatar

COUNTRY PROFILE. Russia

IIXP Establishment in KSA

COUNTRY PROFILE. Mexico

Experience of GMS Information Superhighway

ICT Market and Regulatory Trends

NATIONAL BROADBAND POLICY AND IMPLEMENTATION STRATEGY. Task Team Leader

COUNTRY PROFILE. Italy

COUNTRY PROFILE. Croatia

Information and Communication Technology Infrastructure

SECTOR ASSESSMENT (SUMMARY): INFORMATION AND COMMUNICATION TECHNOLOGY

Monenco Iran Consulting Engineers

Promoting Trade, Inclusiveness and Connectivity for Sustainable Development

COUNTRY PROFILE. Iceland

COUNTRY PROFILE. Malaysia

Establishment of Regional Fiber Optic Network for *the Central Asian Countries (*Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan)

COUNTRY PROFILE. Ireland

COUNTRY PROFILE. Ukraine

Chapter 5: Spanning the Internet divide to drive development (ITU)

The below represents a summary of Section 1 of Chapter 9 of the National Integrated ICT Policy White Paper.

Cambodia s Broadband Initiatives and Future Plan

Liberia ICT Policy

Transport Trunk Corridor and Feeder Network Model Developing a Master Plan

COUNTRY PROFILE. Brazil

Smart Sustainable Cities. Trends and Real-World Opportunities

COUNTRY PROFILE. Korea Republic

COUNTRY PROFILE. Taiwan

Michuki Mwangi Senior Education Manager ISOC. Policy Coherence in the Application of ICT for Development Paris, France th Sept 2009

UAE and the NRI A brief introduction. December 2016

Broadband Policy for Africa

IFC ENERGY STORAGE MARKET REPORT

PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB4802 Project Name. ECOWAS Broadband Connectivity Program Region

Agricultural Outlook Forum February 21-22, 2008 U.S. Department of Agriculture

Broadband network initiatives and future plans in Vietnam

Internet Exchange Points An Internet Society Public Policy Briefing

ICT PROGRESS IN AFGHANISTAN

Building digital societies in Asia: mobile government and m-services

NEPAD ICT BROADBAND INFRASTRUCTURE PROGRAMME

A Framework to Approach Shared Use of Mining Related Infrastructure: ICT

An Overview of African Internet Exchange Points (IXPs)

4 th Generation Regulation Driving Digital Communications Ahead

World Bank. Regional Interconnections in South Asia. Anjum Ahmad Senior Energy Specialist World Bank, Islamabad

India s National Policy On. Information Technology. Ajay Sawhney, President & CEO, National egovernance Division, Dept of IT

Case Study: Tshwane Proof of Concept

TRANS-EURASIAN INFORMATION SUPER HIGHWAY (TASIM) BANGKOK, THAILAND

Regional cooperation for expanding connectivity

Development of IIC and Future Trends in Sri Lanka. Nishantha Palihawadana Deputy Director, Telecommunications Regulatory Commission, Sri Lanka

BEST PRACTICE GUIDELINES ON POLICY AND REGULATORY INCENTIVE FOR AFFORDABLE ACCESS TO DIGITAL SERVICES

Broadband access technologies and their introduction in fixed networks of Uzbekistan

ITU SURVEY ON TARIFF POLICIES 2014

Submarine Cable Opportunity and Challenges in the Era of 5G

Recommendations for Small and Medium Enterprises. Event Date Location

9 th World Telecommunication/ICT Indicators Meeting (WTIM-11) Mauritius, 7-9 December 2011

Enhancing Access to Submarine Cables in the Pacific. 31 July 3 August, 2017

A r g e n t i n a B u s i n e s s a n d I n v e s t m e n t F o r u m M i n i s t r y o f C o m m u n i c a t i o n s

Internet Interconnection An Internet Society Public Policy Briefing

Unleashing infrastructure synergies: Connecting to opportunity

Connecting the Connectivities Symposium 11 June Thailand

BROADBAND DEFINITION

A Study for CLMV Countries. Yeong Ro, LEE

Progress Report and Future Challenges.

International cooperation on power interconnection: Mongolian Regulatory perspective

The Funding Mechanisms for Promoting the Deployment of Broadband

ICT Connectivity for Trade & Development

Agenda for the Day Morning: Afternoon:

2017/SOM3/DIA/007 Digital Trade Building Blocks

Transcription:

Improved Regional Fiber Connectivity via Digital CASA: The Opportunity for Central and South Asia Michael Ruddy Director of International Research Terabit Consulting

PART I: THE BANDWIDTH DIVIDE

International Internet Bandwidth, YE14 Russian Federation: 4,000 Gbps Azerbaijan: 340 Gbps Kazakhstan: 500 Gbps Uzbekistan: 20 Gbps Kyrgyz Republic: 15 Gbps Turkmenistan: 1 Gbps Tajikistan: 5 Gbps Afghanistan: 15 Gbps

Int l. Internet Bandwidth per Capita (Kbps) 40 35 30 25 20 27.9 Source: Terabit Consulting 29.4 35.8 15 10 5 0 THE BANDWIDTH DIVIDE Less than 10 Kbps: SERIOUS OBSTACLE TO DEVELOPMENT 0.2 0.5 0.6 0.7 Turkmenistan Afghanistan Tajikistan Uzbekistan Kyrgyz Republic Russia Kazakhstan Azerbaijan 2.6 Many Western European markets: >100 Kbps per capita

Wholesale Bandwidth Prices Wholesale bandwidth prices are 10 to 100+ times higher in Central Asia than in America or Europe Wholesale Transit Pricing per Mbps ($USD) $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 $100+ $100+ $30 $30 Source: Terabit Consulting $13 $10 $5 $2 $1

Consumer Internet Prices Internet subscriptions in many Central & So. Asian markets: unaffordable to the majority of the population High international bandwidth costs are a primary cause 1 Mbps Internet Subscription as % of Per-Capita GDP 140% 120% 100% 80% 60% 40% 20% 0% 130% 48% Source: Terabit Consulting 11% 10% 1% 0.09% 0.02%

PART II: INSUFFICENT REGIONAL BANDWIDTH INFRASTRUCTURE AND ITS EFFECTS

Weak Regional Infrastructure There are no coherent, purpose-built, costeffective pan-regional fiber optic networks for Central & South Asia International connectivity consists of bilateral, point-to-point, closed-access trans-border links International connectivity via these links is: Extremely expensive Low-capacity and not technologically-competitive Unreliable Subject to great political risk

The Impact of Low International Bandwidth & Weak International Infrastructure At the macro level: a major obstacle to economic and human development Detachment from digital economy Continued economic inefficiencies and restrained growth Lack of access to critical social development tools including telemedicine, distance learning, scientific/research networks Prevents regional integration within the aegis of knowledge-based economic development More specifically within the telecom environment: higher wholesale and consumer prices, and lower broadband adoption rates

PART III: THE BENEFITS OF IMPROVED FIBER CONNECTIVITY FOR CENTRAL ASIA AND SOUTH ASIA

Improved Regional Fiber Connectivity: Telecom Benefits & Opportunities for Cent. & So. Asia 1. Would bring lower-cost, higher-volume bandwidth Digital CASA would improve the region s access to bandwidth hubs in Russia, Europe, and China 2. Would increase reliability of int l. connectivity Additional fiber connectivity decreases the likelihood of network outages 3. Would increase value of domestic networks The region s domestic fiber is essentially stranded by a lack of international connectivity; the value of this infrastructure will increase exponentially according to the number of connections (Metcalfe) 4. Would present a stronger opportunity for the sale of transit capacity to neighbors & share of Europe-Asia Digital CASA would allow for the region s countries to efficiently export bandwidth to neighboring markets (in Phase I), and also to capture a share of the lucrative Europe-to-Asia transit market (currently in excess of 15 Tbps)

Terrestrial as a Solution for Submarine Source: The Undersea Cable Report 2015 by Terabit Consulting The global telecommunications industry is desperate for a cost-effective solution that would avoid undersea choke points. Digital CASA could be an alternative.

Economic Benefits & Gov t. Financial Benefits 1. Benefits to consumers and end-users Improved regional connectivity would reduce end-users unit costs per Mbps, increase their Internet throughput and reliability This would greatly enhance the utility and value of each country s Internet infrastructure and promote the growth of the digital economy 2. Economic growth Improvement in ICT infrastructure yields: Increased demand for the output of other industries (demand multiplier) New opportunities for production in other industries (supply multiplier) New goods and services for consumers (final demand) It also increases firms innovation capabilities and increases the probability of new products, innovations, and organizations

Economic Benefits & Gov t. Financial Benefits (Continued) 3. Increased government revenue Growth in economic output from ICT investment results in greater tax revenue Increased employment in the telecommunications sector Greater collections from telecom licenses and excise Rent collections from transport and utility ROWs 4. Regional stability through better international and intercultural relations More efficient routing of trans-border traffic would encourage trans-border initiatives in the education, healthcare, and research sectors that would not otherwise be possible. Telecommunications networks are a key element of regional integration

PART IV: STRATEGY FOR IMPROVING REGIONAL FIBER INFRASTRUCTURE

Principles to Guide Future Network Development 1. Developed to function and be monitored as a single, uniform network Existing multi-national terrestrial networks cannot offer uniform quality-ofservice guarantees between endpoints (as good as weakest link or weakest operator ). 2. Leveraging existing infrastructure Right-of-way procurement and uniform construction techniques would be enabled through the use of linear infrastructure such as the highways (ESCAP Asian Information Superhighway), railways, or energy transport and transmission infrastructure 3. Fully integrated and coherent Redundant ring or mesh architecture would allow for in-network healing in the event of physical cable outages or instability affecting connectivity in specific countries.

Principles to Guide Future Network Development (Continued) 4. Cost-effective With suitable transmission capacity and fiber count, a pan-regional terrestrial fiber network could compete effectively with submarine cable on both a regional and intercontinental basis. 5. Open access and non-discriminatory pricing In order to achieve development and policy goals, as well as to serve the region s consumers, all purchasers of capacity must be able to access the network on an equal, non-discriminatory basis. 6. Developed, managed, and operated within a special independent framework to meet policy goals A framework to ensure the neutrality and efficiency of the network Should allow participation by all stakeholders while still maintaining arm slength terms over all capacity sales and leases.

Options for Regional Network Development Government Ownership and Project Management Choice of Project Design and Engineering, Supplier, Maintenance Authority, Operational Plan Strategy for the Improvement of Central and Southern Asian Terrestrial Fiber Optic Connectivity Construction of a Coherent Regional Terrestrial Fiber Network Continued Use of Fractured, Bilateral Terrestrial Fiber Infrastructure Intervention by World Bank Group / Government to Facilitate Implementation Marketplace Left to Implement Its Own Coherent Solution Public-Private Partnership (PPP) / Private Sector Project Management Special Purpose Vehicle (SPV) with Govt./WB Shareholding (Investment) Special Purpose Vehicle (SPV) with Govt./WB Contribution (Subsidy) Build-Operate-Transfer (BOT) Project Management Contract

Parallel Downstream Policy Initiatives for Bandwidth Success 1. Truly independent and transparent regulatory environment 2. A strong commitment to competition and open-access, non-discriminatory tariff frameworks throughout the entire telecommunications ecosystem Not only international bandwidth and IP transit Backhaul, interconnection, domestic transport, and access networks 3. Local-loop unbundling, as well as antenna and tower site sharing, to ensure competitive service offerings to endusers 4. Promotion of public Internet exchanges to more efficiently interconnect domestic operators and prevent hairpinning of domestic and/or regional traffic via international transit paths. By encouraging private-sector IXP participation as well as requiring government entities (and possibly educational and research networks) to participate in IXPs

Thank you!