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Promoting Broadband adoption in ECA and

Belarus:A World Bank perspectiveJuan Navas Sabater

World Bank

Minsk, Belarus30 June 2010

Outline

• International experience with broadband promotion• Status in ECA and Belarus• Examples of World Bank projects

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IC4D09: World Bank’s report on ICT for Development

Part I

Chapter 1: Overview

Chapter 2: Convergence

Chapter 3: Economic Impact of Broadband

Chapter 4: Backbone Networks in Africa

Chapter 5: E-government Experiences from India

Chapter 6: National E-government Institutions

Chapter 7: IT and IT-enabled Services

Part II

Key Trends in ICT Development

Progress in Measuring ICT

At-a-glance Tables for 150 Economies

http://www.worldbank.org/ic4d

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ICT supports economic growth, investments and job creation

10% increase in broadband penetration leads to 1.4% increase in annual GDP growth

Fixed t

ele...

Mobile

tele.

..

Dial up

Inte.

..

Broadb

and

0.43

0.600000000000001

0.770000000000002

1.21

0.730000000000001 0.81

1.12

1.38

Developed countries Developing countries

** McKinsey & Company, Mobile broadband for the masses, February 2009, p. 4

Potential economic impact of increased broadband penetration

2/3 of private investments in infrastructure in ECA was from telecom

Private investments in infrastructure projects in ECA, 2000-2008 (total

$202bn)

Source: Private Participation in Infrastructure Database

Energy27%

Telecom64%

Transport7%

Water and Sewerage

2%

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Broadband Infrastructure in Stimulus Packages

Broadband Component as Percentage of Total

Stimulus Plans

0.0% 5.0% 10.0% 15.0%

Australia

Finland

Spain

Japan

UnitedStates

Canada 27.1

789.0

375.0

14.6

30.0

2.65

US$bn

CommentsUnited States, Britain, Canada, Germany, Portugal and Finland have all included measures to expand broadband access and to bolster connection speeds in their planned economic stimulus packages. Australia, France, Ireland, Japan, Singapore and the Republic of Korea have announced separate broadband plans

Plans seek to speed up existing links to build faster fixed-line and wireless next-generation networks.

Another goal is to expand broadband connections to rural areas where they are currently unavailable, in some cases considering turning broadband into a universal service

Source: “Broadband Infrastructure Investment in Stimulus Packages: Relevance for Developing Countries” , Christine Zhen-Wei Qiang, The World Bank, May 2009

International broadband targets

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Country Period Objetive

Australia 2010-2018 100Mbps for 90% households with fiber, rest wireless.

South Korea 2009-2013 (U-Korea Master Plan)

40% population with 100Mbps access by 2010, reaching 1Gbps by 2012.

Spain 2009-2012 Rural broadband, universal access.

Finlandia 2009-2015 1Mbps is a legal right in 2010. 100Mbps for 99% population, less than 2km distance to fiber.

Francia 2008-2012 (France Numérique)

Rural broadband, universal access at 512kbps, 4 million households with fiber by 2012.

Japón 2009-2010(eJapan strategy)

Rural broadband, universal access by 2010.

Singapur 2009-2013 1Gbps for 100% population (60% by 2011)

Suecia 2007-2010 Rural broadband, universal access at 2Mbps by 2010.

Reino Unido 2009-2012(Digital Britain)

Rural broadband, universal access at 2Mbps by 2012.

USA 2010-2020(America’s Plan)

Rural broadband, universal access at 4Mbps by 2020, 100 million households with 100Mbps.

Australia – rural backbone

• Problem• Fully liberalized market

but no competition to Telstra on small-town/rural routes

• Limits to regulated access to Telstra’s network

Australia – extending backbone network competition to small towns

• Strategy• Create competition to Telstra on 6 priority up-country routes (6000km,

100 locations) through subsidizing new entrant (up to A$250). • Routes selected by government and then contracts tendered. • Winner required to provide on a non-discriminatory basis – enforced

through PPP contract. Operation for 5 years• Operator required to provide range of wholesale services (Managed

wavelength, Carrier managed leased line services (SDH), Carrier managed Ethernet, interconnection)

• Contract and awarded to Nextgen (mid 2009).

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Policy Options for Broadband Backbone Networks

Public-private partnerships can leverage the private sector to meet ICT infrastructure development objectives.

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Broadband access in ECA is limited

• A challenge facing CIS countries is to expand access and use of affordable broadband Internet connectivity (see Chart), and especially in rural areas.

• Limited access limits economic growth prospects. Missed opportunities include:– Investments, jobs, and tax

revenues– Business competitiveness,

service sector growth, trade

TajikistanTurkm

enistanUzbekistanArm

eniaAzerbaijanKyrgyzstanKazakhstanUkraineMoldovaBelarusRussiaPortugalGreeceItalySpainIrelandAustriaGerm

anyBelgiumU.K.Luxem

bourgFinlandFranceSweden NetherlandsDenm

ark

0%5%

10%15%20%25%30%35%40%

CIS

EU15

Chart: Broadband (fixed) market penetration CIS and EU15 (% of total population)

World Bank projects in Africa

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East Africa (Regional Communications Infrastructure): US$ 424 million

Central Africa (Central Africa Backbone): US$ 312 million

West Africa (ECOWAS Broadband): US$ 260 million

Kenya: public-private financing

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Competitive privately-funded

routes

Public-private financing of fiber optic backbone for rural and non profitable

routes

• Support for backbone networks:o Competitive subsidies o Infrastructure sharingo Access to a fiber of state-owned

enterprises (electricity, railways, pipelines)

o Consortia to operate neutral backbone

o Demand aggregation

World Bank project in Armenia

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Armenia: E-Society and Innovation for Competitiveness Project (US$ 30 million):

•Broadband backbone network, government private network

•Electronic ID Documents•Computer for all program•Support for techno parks•Investment fund for promotion of

innovation and IT sector firms

Caribbean infrastructure program

Caribbean Regional Communications Infrastructure Program (US$ 62 million – under preparation):

•Connectivity: access to submarine cables, national backbone networks, government networks

•Support to regional ICT industry•Platforms for e-services

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THANK YOU

Juan Navas-Sabaterjnavassabater@worldbank.org

www.worldbank.org/ict