“Asia Broadband Program”

2nd OECD Workshop on Broadband

Session III: Policy Issues

June 5, 2002

Tetsuo YAMAKAWAMinistry of Public Management, Home Affairs,

Posts and Telecommunications, JAPAN

Oceania1%

Africa13%

EU6%

Europe ex. EU6%

Japan2% Asia ex. Japan

59%USA & Canada

5%

Americas ex. USA &Canada

8%

Asia Broadband Program

1. Policy Objective

For the world economy to grow, Asia must achieve its full potential for growth. Improving IT in Asia is essential in pursuing this goal.

Potential of Asian Countries’ Economies2000 World Population: 6,057 billion

Oceania2%

Africa2%

EU28%

Europe ex. EU4%

Americas ex. USA &Canada

6%

USA & Canada31%

Asia ex. Japan13%

Japan14%

1999 World GNP: 29,798 billion USD

Landmarks in Asian IT GrowthJapan: Mobile Internet World’s largest number of subscribers to mobile internet: over 50 mil in March 2002 (MPHPT)

Singapore: e-government World’s second biggest provider of e-government services in 2001 (Accenture)

S. Korea: Broadband spread World’s highest dissemination rate of DSL: 8.91% of population in Nov. 2001 (MPHPT)

China: Potential Market Population 1,300 mil; world’s largest number of mobile phone subscribers: 155.85 mil. in February. 2002 (China)

India: IT Software Exports Software exports: 620 mil US$ in 2000 (NASSCOM)

(Source: World Development Indicators Database, World Bank)

Compared with international trade, information flows between Asia and other parts of the world, as well as within Asia, are unreasonably small.

This imbalance must be ended.

2000 World Trade Flows(in US $)

(Source: WTO International Trade Statistics 2000)

NorthAmerica

413 trillion

NorthAmericaEurope

Asia

Asia Broadband Program

2. Current Situation

Asia

Europe

564 trillion428 trillion

2001 World Information Flows

162 Gbps

42 Gbps1 Gbps

(Source: TeleGeography; Packet Geography 2002)

Ratio of intra-regional to inter-regional Internet bandwidthin Europe, 1999-2001

Note: Domestic routes are excluded. Data as of mid-2001. (Source: TeleGeography)

Asia Broadband Program

Inter-regional

Intra-regional

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1999 2000 2001

Inte

rnet

Ban

dwid

th (

Mbp

s)

Ratio of intra-regional to inter-regional Internet bandwidth in the Asia-Pacific Region, 1999-2001

Note: Domestic routes are excluded. Data as of mid-2001. (Source: TeleGeography)

Asia Broadband Program

Inter-regional

Intra-regional

0

10

20

30

40

50

60

1999 2000 2001

Inte

rnet

Ban

dwid

th (

Mbp

s)

Asia Broadband Program

City Internet Bandwidth (Mbps)

1 New York 149,834.5

2 London 85,518.7

3 Amsterdam 24,479.6

4 Paris 22,551.8

5 San Francisco 20,813.6

6 Tokyo 16,745.6

7 Washington D.C. 13,261.2

8 Miami 11,912.4

9 Los Angeles 11,227.0

10 Copenhagen 10,417.0

11 Frankfurt 9,351.5

12 Seattle 5,891.7

13 Sydney 4,389.0

14 San Paulo 4,316.5

15 Chinese Taipei 3,738.4

City Internet Bandwidth (Mbps)

16 Seoul 3,734.1

17 Hong Kong 2,694.8

18 Madrid 2,488.0

19 Buenos Aires 2,285.7

20 Mexico City 2,166.0

21 Dallas 1,546.0

22 Sacrament 1,409.0

23 Stockholm 1,397.0

24 Osaka 1,395.0

25 Milan 1,293.5

26 Singapore 1,276.0

27 Perth 1,092.0

28 Monterey 1,077.0

29 Auckland 1,020.0

30 Rio de Janeiro 981.0

(Data as of mid-2001, Source: TeleGeography; Packet Geograph y 2002)

Top 30 Hub Cities in Internet Bandwidth

To enhance IT in Asia, Japan proposes an “Asia Broadband Program”, designed to make the region a world information hub through expansion of

broadband networks. It would also benefit worldwide ICT development.

- Establishment of broadband infrastructure- Efficient distribution of digital content- Improvement of ICT consumer environment through policy and regulation- Capacity-building and education to improve ICT literacy, etc.

Asia Broadband Program

3. Promoting ICT through Expanding Broadband Networks

<Challenges for ICT Development via Broadband>

By co-operating to set short and long-term targets, Asian countries can overcome these challenges

and promote broadband expansion.

Asia Broadband Program

4. Measures Various measures need to be discussed for expanding broadband in Asia, such as:

<Establishment of Broadband Infrastructure>- Construction of Asian R&D broadband network- Promote use of the network for international joint R&D projects- Co-operation among Asian countries in building broadband IX- Study capability of communications satellites to resolve geographical disadvantages

<Distribution of Digital Content>- Support scheme to promote efficient distribution of digital content created in Asia

Asia Broadband Program

<Improvement of ICT Consumer Environment>

- Harmonized policies to protect copyright, security etc.- Sharing knowledge and expertise among countries on policy-making and regulation- Making use of Japan’s e-Policy Support Network

<Capacity-Building and ICT Education>- Co-operation in ICT human resource development, etc.

Report to the World Summit on the Information Society (Geneva, 2003)

<Cultural Diversity>

Countries contain cultural communities with different languages, religions, etc. This could hamper the efficient transmission of digital content across the region.

Metropolitan areas and other large economic centers are adequately furnished with ICT infrastructure, but remote areas, such as islands and mountains, have poor access to such infrastructure.

Asia Broadband Program

5. Asia’s Special CharacteristicsAsia is characterized by its diversity of cultures, geographic conditions, and social

and economic systems. Attention must be paid to this diversity during development.

<Economic Diversity>

Because national income levels, main industries, etc. differ greatly from one country to another, ICT must be expected to take a different role in each country.

<Geographic Diversity>

Asia Broadband Program

6. Points of Importance

In implementing the Asia Broadband Program, we should keep in mind these principles:

<Respect for Diversity and Autonomy>- Economic, geographic and cultural diversity within Asia must be noted and each country’s autonomy must be respected- Each country should be encouraged to be active in making its own efforts to develop ICT

The improvement of broadband will best be achieved through building partnerships among:- Governments- Private-sector bodies- NPOs and NGOs- International organizations etc.

<Partnership among many public and private bodies>