Bandwidth for All Judith Mariscal Acorn Redecom Conference 09 - PowerPoint PPT Presentation

Bandwidth for All Judith Mariscal Acorn Redecom Conference 09 Mexico City, September 5 th 1

Panel Discussion What is the need for and viability of building an alternate IP backbone network?

ICT development Voice services are now more widely available, yet Internet penetration… Mobile suscribers per 100 inhab. (2008) Internet Suscribers p 100 inahab. (2008) 140 35 30 120 25 100 20 80 15 60 10 40 5 20 0 0 South Argentina Chile France Mexico Africa Colombia Korea UK USA Spain Brazil Argentina France Colombia Spain Korea Chile USA Mexico UK Brazil Peru Source: ITU (2009) Source: ITU (2009) 3

Low broadband penetration Latin America still lags behind other regions in broadband penetration (2007) Source : Multilateral Investment Fund

Broadband Importance Lack of adequate backbone implies that significant opportunities for economic and social enhancement are lost: • Multiplied effects of network externalities (employment growth, productivity, innovation and value chain re- composition). • Impact and efficiency of public and private investments. • Without adequate broadband: increased digital exclusion.

Mexico: Broadband Penetration Mexico: 7.2 in broadband penetration Some OECD Countries broadband penetration 2008 40 35 30 25 20 15 7.2 10 5 0 OECD Denmark Finland United States Ireland Czech Republic Italy Portugal Slovak Republic Poland Netherlands Korea Germany Japan Spain Greece Turkey Mexico France Australia Hungary Sweden Source : OECD Broadband Portal

Mexico: Broadband Prices Accessability. Mexico: 59.52 USD PPP Broadband average monthly subscription price USD PPP (2008) Greece Japan Sw itzerland France Korea United States Canada Luxembourg New Zealand Turkey Spain Germany Australia 59.52 Mexico Slovak Republic 0 10 20 30 40 50 60 70 80 90 Source : OECD Broadband Portal

Mexico: Broadband Quality 100000 Average Advertised broadband download speeds, kbit/s (2008) 90000 80000 70000 60000 50000 40000 30000 20000 1513.8 10000 0 Source : OECD Broadband Portal Note : Advertised speeds are typically the theoretical maximum for the employed technologies. Users have lower speeds.

Infrastructure Deficit 62% of homes in Mexico has access to one competitive network (fixed) Mexico: Fixed networks Source : The Competitive Intelligence Unit 9

Policy Objective • Key policy objective is to provide widespread and high quality access to broadband: – Improving connectivity, increasing competition, stimulating innovation / growth and increasing social benefit.

Strategic Choices • Technology: backbone, backhaul, last mile. • Funding: Public (Australian case); Public-Private Mix; For Profit. • Regulatory Models: – Pure infrastructure provider (carrier of carriers) establishes and leases out the backbone, or – Infrastructure and Service Provider. • Regulatory Policy: Ex-ante regulation (minimal): non- discriminatory clause, wholesale network access.

Panel Discussion • What safeguards should be in place to promote fair competition under this scenario? • And what institutional conditions are necessary to avoid falling into the same oversights that have caused uneven network development and market inefficiencies in the region?