bandwidth for all
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Bandwidth for All
Judith Mariscal
Mexico City, September 5th
Acorn Redecom Conference 09
What is the need for and viability of building an alternate IP backbone network?
Panel Discussion
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ICT development
Voice services are now more widely available, yet Internet penetration…
Source: ITU (2009)
0
20
40
60
80
100
120
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UK
Arge
ntina
Spai
n
Kore
a
Fran
ce
Colo
mbia
Chile
USA
Braz
il
Peru
Mex
ico
Mobile suscribers per 100 inhab. (2008)
0
5
10
15
20
25
30
35
Kore
a UK
Fran
ce USA
Spai
n
Arge
ntin
a
Chile
Mex
ico
Sout
h Af
rica
Braz
il
Colo
mbia
Internet Suscribers p 100 inahab. (2008)
Source: ITU (2009)
Latin America still lags behind other regions in broadband penetration (2007)
Low broadband penetration
Source: Multilateral Investment Fund
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.
Broadband Importance
7.2
05
101520
2530
3540
Some OECD Countries broadband penetration 2008
Mexico: Broadband Penetration
Source: OECD Broadband Portal
Mexico: 7.2 in broadband penetration
Broadband average monthly subscription price USD PPP (2008)
59.52
0 10 20 30 40 50 60 70 80 90
Slovak RepublicMexico
AustraliaGermany
SpainTurkey
New ZealandLuxembourg
CanadaUnited States
KoreaFrance
Sw itzerlandJapan
Greece
Mexico: Broadband Prices
Accessability. Mexico: 59.52 USD PPP
Source: OECD Broadband Portal
Mexico: Broadband Quality
1513.80
100002000030000400005000060000700008000090000
100000Average Advertised broadband download speeds, kbit/s (2008)
Source: OECD Broadband Portal Note: Advertised speeds are typically the theoretical maximum for the employed technologies. Users have lower speeds.
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62% of homes in Mexico has access to one competitive network (fixed)
Infrastructure Deficit
Mexico: Fixed networks
Source: The Competitive Intelligence Unit
• Key policy objective is to provide widespread and high quality access to broadband:
– Improving connectivity, increasing competition, stimulating innovation / growth and increasing social benefit.
Policy Objective
• 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.
Strategic Choices
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?