National Broadband Network for A Better Connected World Bello Moussa Ph.D Director Strategic partnerpship Musa.musa@huawei.com Huawei Technologies Co., Ltd.
The Future HUAWEI TECHNOLOGIES CO., LTD. Page 2
To see the future, we first look at the past… Global IP Traffic IP Traffic by region 100 50 Asia Pacific 90 FBB 45 North America Western Europe 80 Managed IP 40 Central and Eastern Europe Exabytes/month 70 MBB Exabytes/month 35 Latin America Middle East and Africa 60 30 50 25 40 20 30 15 20 10 10 5 0 0 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 CAGR 40% 30% 20% 10% 0% Asia Pacific North America Western Europe Central and Eastern Europe Latin America Middle East and Africa Source: Cisco VNI 2013-2018 HUAWEI TECHNOLOGIES CO., LTD. Page 3
Connectivity and communications is key to survival in the Digital Economy era Niger: 2001-2006 Grain price dispersion Energy Medicine 29% Daily profits Traffic Shopping Banking Source: WEF 2015 e-Education Tanzania: 2010 Work All 7 Only 2 Finance poverty criteria SNS criteria Smart improved reduced Home HUAWEI TECHNOLOGIES CO., LTD. Page 4
It is time to get Digital Sudan GDP Broadband penetration Côte d’Ivoire (2014): Broadband penetration 1.65% + 1.3% (2014): 1.22% Uganda Broadband penetration Innovation Employment (2014): Efficiency Ghana 1.27% +2-3% 15x Broadband penetration 10% (2014): Kenya 1.90% Broadband Broadband penetration Penetration (2014): Nigeria 1.16% Broadband penetration (2014): Tanzania 0.93% Productivity Broadband penetration Gas Emission (2014): +5-10% -5% 3.66% South Africa Broadband penetration (2014): Broadband penetration in 13.64% Source ： impact of broadband on the economy, ITU, 2012 African countries is very low, Source: Analysys Mason Research generally less than 2% HUAWEI TECHNOLOGIES CO., LTD. Page 5
The pillars of broadband environment in 2020 Ubiquitous 90%+ Ultrafast Population Affordable 25+ <5% Mbps HH. Spending HUAWEI TECHNOLOGIES CO., LTD. Page 6
But number of challenges need to be tackled “bandwidth has not reached “ Last mile connectivity is a a large part of the country challenges, poor FBB especially in rural areas ” penetration “ lack of digital content and “ technologies and devices to applications that have local ensure high speed connectivity relevance is a major hindrance are not in place” to broadband up take” HUAWEI TECHNOLOGIES CO., LTD. Page 7
NBN 2020 A Better Connected Nation for All Citizens A ubiquitous, high speed, affordable broadband network to everyone Coverage>90% Speed>25Mbps Price<5% GNI/M How do we go about this…? Hybrid PPP Government Construction Investment Lead Financing & Cost Open Funding reduction Access Funding Technology Policy HUAWEI TECHNOLOGIES CO., LTD. Page 8
Policy Technology Funding Set Up Regulation Cover Co erage ge Comp Compet etiti ition on Guarantee coverage Open access network in Layer 1, Layer 2. Tax subsidies to remote, low-value Enabling competition in premises ’ areas Coverage Competition TEXT Operation Investment TEXT Operation Ope tion Invest In estmen ment Annual report, costs, performance, Government intervention guided by cost customer satisfaction, and etc. benefit analysis HUAWEI TECHNOLOGIES CO., LTD. Page 9
Policy Technology Funding Broadband Redefinition Giga Korea (2020) China NBN (2020) Gigabit City (2020) BB Europe (2020) 10Gbps 1Gbps 1Gbps 100Mbps (SKT) (Developed city) (Public communities) (Urban Area) 1Gbps 50Mbps 100Mbps 30Mbps (100%) (Common (100 Million households) (100%) city) ensure timely broadband definition so as to facilitate national ICT transformation and service innovation HUAWEI TECHNOLOGIES CO., LTD. Page 10
Policy Technology Funding Stimulus measures to enhance broadband utilization Internet Penetration Rate Start with low hanging fruits 80 67.1 66 62.3 55.6 60 Percentage 31.7 40 21.1 20 Demand Supply 0 2008 2009 2010 2011 2012 2013 1Malaysia Wireless Village BBGP Tax 4,679 GDP Per Capita Change 2+ Mbps Rebate 10538.1 12000 424 1Malaysia 20+ Mbps 10000 8460.4 Internet Centre 1.1 E-Public 7277.8 US Dollars 8000 Services HSBB world finance crisis Mil 6000 4000 1Malaysia Netbook 2000 0 2008 2009 2010 2011 2012 2013 HUAWEI TECHNOLOGIES CO., LTD. Page 11
Policy Technology Funding Releasing rights of way, promotes broadband deployment Private property, How much can No way! Holland you pay? EU Proposed 1 st in FBB penetration I’m busy. you can 2007 ， legislation was updated: wait, can’t you? • municipalities must provide access of their infrastructure to operators for Property landlord Municipality Property Municipality landlord free. manager manager • Concerned municipality must promote sharing and co-ordinate upcoming Hi, civil works in order to minimize civil May I deploy a One-stop shop disruption. fiber optic cable? of rights of way • Works on private land requires formal notice 4 weeks in advance, if no Telecom Operator dispute within 6 weeks, work is permitted implicitly. High leasing price • No compensation for access for private and public land, but operators High time consuming 3H are obliged to ensure bringing back to High communication effort Operator its original condition HUAWEI TECHNOLOGIES CO., LTD. Page 12
Policy Technology Funding Infrastructure Sharing to reduce CAPEX investment on broadband construction Backbone layer construction synergy Aggregation layer construction synergy Access layer construction synergy Power transmission network, oil pipeline, Power line, gas pipe, water ducting, New building/house must deploy optical super highway and railway slopes sidewalk and municipal construction cable and share to Telco/Tower sharing Nordic governments made policy to 200+ municipal governments in Nordic China Government set up a TowerCo to facilitate cooperation between Telco region have deployed fiber optical cables manage all tower sources and utility companies for leasing or self operation Government amended Construction Law Phase 3 Telecom cooperate with power UAE government asked municipality in which new housing should deploy company and deploy fiber optic cable water supply company to share its optical fiber & share to all Telco along high voltage power lines underground water conduit to ET Tower merge and acquisition are Many governments ask utility company Haya Water deploy fiber optic network accelerating in Africa. TowerCo, e.g., IHS, open slopes or deploy ducts or optical along its sewage duct and wholesale to HTA, Eaton have own 47% (85,000) cables for Telcos operators towers by 2015 HUAWEI TECHNOLOGIES CO., LTD. Page 13
Policy Technology Funding Reusing existing copper, achieves investment efficiency Green Field & Business Area Reusing existing copper achieves investment efficiency Brown Field 56k ADSL (20Mbps) VDSL (50Mbps) Vectoring (100Mbps) g.fast (1Gbps) HUAWEI TECHNOLOGIES CO., LTD. Page 14
Policy Funding Technology PPP model, a better investment model for NBN Government • Government invested RM2.4 Billion Lack Experience • Reusing TM infrastructure 43% investment saved Lack Capability • 1.4 million households were connected in 2 years Complementary Sufficient Funding Supportive Policy • Internet Penetration rate climbed to 67.1% Sufficient fund • GDP grew 64% in 2014 compare to 2009 Supportive Policy ILEC Rich Experienced • TM invested RM8.9 Billion Strong Capability Lack Funding • Cash flow optimized, Take up rate was benefited from Lack Policy Win-Win government’s policies Rich Experience • 2009 to 2014, broadband revenue increased 30.5% Strong Capability 1. 2014 to 2017 RM50 million per year starting Revenue Sharing : TM to Government 2. 2018 to 2025 based on the TM’s subscription 15 HUAWEI TECHNOLOGIES CO., LTD. Page 15
Policy Funding Technology Supporting broadband development with USF/Government-backed loan ERDF, EAFRD fund ( 7 billion Funding is the prominent factor Euros ) for member state’s affecting broadband • Cameroon government mandates broadband network Camtel to build national broadband development infrastructure construction. network. Levy 50 pence/month from • Government provides sovereign subscribers, 170 Million guarantee to help Camtel acquire pounds per year for preferential loan (xxx Million USD) broadband development. from China. • Sufficient funding support for wide National Information fund ， range network deployment including sub marine cable, fixed and 780 million (1993-2002) for wireless broadband network broadband development. • Phase 1 is being delivered, phase 2 Establishing universal service has been launched, Cameroon will Universal Service Fund, provides be constructed as a shinning start at 400 Million USD for NOFN fund makes broadband West Africa. project for rural population. sustainable 16 HUAWEI TECHNOLOGIES CO., LTD. Page 16
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