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Cross‐sector ICT Infrastructure for Asia
Working Group meeting on the Development of Seamless Connectivity
22‐23 December 2014, Bangkok
Abu Saeed KhanSenior Policy Fellow
LIRNEasia
Broadband lags behind voice. Why?
Bad news
Asia is a diverse market
Source: GSMA, The Mobile Economy, ASIA PACIFIC 2014.
The great Asian broadband divide
Source: GSMA, The Mobile Economy, ASIA PACIFIC 2014.
$1.28
$1.28
$1.28
$1.28
$1.58
$1.58
$1.64
$1.64
$1.64
$1.77
$1.90
$1.90
$1.25
$1.26
$1.26
$1.32
$1.36
$1.36
$1.36
$1.44
$1.49
$1.50
$1.55
$2.10
$2.20
$6 $6.25 $8 $8
$10
$10 $1
1 $12
$12
$12.06
$19
$21 $2
2
Seattle
Washington
Mon
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Toronto
Dallas
Los A
ngeles
Chicago
New
York
San Francisco
Miami
Atlanta
Boston
Cope
nhagen
Frankfurt
Stockholm
Amsterdam
Lond
onParis
Warsaw
Madrid
Bucharest
Sofia
Milan
Moscow
Istanb
ulHo
ng Kon
gSingapore
Tokyo
Kuala Lumpu
rFujaira
hDo
haAm
man
Seou
lTaipei
Jakarta
Mum
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Kuwait C
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Median IP transit prices per Mbps per month on Q2 2014 Prices exclude local access and installation fees. Source: TeleGeography. Publication: Global Internet Geography 2014.
Broadband’s raw material prohibitive in Asia
Good competition•Terrestrial & submarine
Poor competition Exclusively submarine
Infrastructure divide = Broadband divide
Fierce competition•Coast‐coast terrestrial
Broadband’sbiggest barrier
Meshed and resilient telecoms ROWConnecting 32 Eurasian countries with EU through 141,000 km of standardized roadways.
Each country’s share in Asian Highway(There are 10 LLDCs)
Submarine networks = Terrestrial networksLandlocked countries = Coastal countries
Courtesy: Ciena
Roadblocks to affordable Internet
Source: The state of Broadband 2012: Achieving digital inclusion for all. ITU/UNESCO Broadband Commission.
Costs of civil works in fiber deployment
France Approximately 80% United Kingdom Between 70% and 80% Republic of Korea Between 80% and 90% European Union Approximately 80% MENA Approximately 80% OECD average (2008) Between 50% and 80%
Source: “Harnessing cross‐sectoral infrastructure synergies.” ESCAP. August 27, 2014.
Right‐of‐way (ROW) = ?%
“Noting that some states were levying hefty RoW charges, equivalent to Rs 1.27 crore (US$ 208,000) per km, DoT has urged states to scrap such practices, failing which NOFN project costs would shoot up and scuttle the Centre's ambitions of delivering affordable broadband services. DoT has reached out to states as there has scarcely been any progress in laying down optic fibre over the past three years.”
Lesson from India: ROW up to $208,000/km.
Lessons from Africa’s terrestrial projects
• Fiber not being buried deep enough – Frequent physical damage (accidental and deliberate).
• Poor quality splicing – Intermittent faults and reduction in throughput
• Poor maintenance of manholes – Leads to flooding and cable damage.
• Poor systems and processes for fault management – Sometimes the maintenance companies deliberately sabotage cables to create work for themselves.
Source: Philip Bates, Analysys Mason, April 2014
Asian Information Superhighway: Core objectives
• Creating a cross‐border telecoms consortium of 32 countries being linked through the Asian Highway.– Example: Intelsat (Past) and SEA‐ME‐WE3/4/5 (Present).
• Using Asian Highway’s right‐of‐way (ROW) for open‐access optical fiber transmission networks.– Highways are preferred ROW for long distance telecoms.
• Each country’s road authorities will own the fiber.– State‐ownership and open‐access guaranteed. No payment is required for ROW.
• Only the licensed operators will have access to it.– No regulatory disruption.
Courtesy: Ciena
Fragility of global IT infrastructure
Hybrid network of TTK: World’s largest Rail + Road + Sea
Terrestrial length: >76,000 km. Capacity: >1.6 TbpsPeering: PLIX (Warsaw), NIX.CZ (Prague), Espanix (Madrid), MIX (Milan), France‐IX (Paris), LINX (London), DE‐CIX (Frankfurt), AMS‐IX (Amsterdam)
TTK at a glance• Founded in 1997. The open joint‐stock company Russian Railways owns
100 percent equity in TTK.
• TTK’s fiber‐optic network spans the entire country of Russia, covering over 55,000 route kilometers. The company operates 21 international gateways that link to nearby countries.
• With its Eurasia Highway network, TTK is one of the few competitors in Russia on the Europe‐Asia route.
• Capacity on the Eurasia Highway network reaches 220 Gbps. TTK is upgrading portions of the system with 40 Gbps wavelengths. Once completed, this upgrade will enable throughput of 1.6 Tbps per fiber pair.
• TTK jointly owns with NTT a submarine cable from Sakhalin Island to Japan called the Hokkaido Sakhalin Cable System (HSCS).
India: Powertel network• OPGW (Optical Ground
Wire) of 25,000 km. Adding 33,000 km.
• Overhead. Immune to: fiber cuts, sabotage, vandalism.
• Coverage over 200 cities and towns.
• Reliability: 99.99% SLA• Multiple self resilient
rings of complete redundancy in backbone as well as intra‐city access networks.
Powertel Sans Frontières
India: Railtel and GAILTEL
Railtel Gas Authority of India Ltd. (GAIL)
Gas pipeline + Rail + Road = Fiberail
World’s first: 100G OPGW Network of CFE Telecom in Mexico
Source: Xtera Communications, Inc. 2012
To slim or not to slim: América Móvil of
Carlos Slim controls 70% fixed and 80% mobile
markets in Mexico.
Crossing the Amazon
Cross‐border multi‐sector infrastructure sharing by the oil‐rich countries
Middle East‐Europe Terrestrial System (MEETS) initially provides connectivity between the U.A.E., Qatar, Bahrain, and Kuwait over a fiber pair acquired from the power grid of GCC Interconnection Authority.
First phase RFS is Q3 2014 at a cost of $36 million.
The second phase would extend connectivity to Turkey via Iraq. The consortium members include du, Vodafone Qatar, Zajil, and Zain.
Source: TeleGeography
Suggested way forward for ESCAP
Internal activities
1. Conduct route survey of Asian Information Superhighway.
2. Design the network and assess the costs of C&M.
3. AH members endorse the concept of Asian Info Superhighway and approve the C&M Agreement.
4. Finalize C&MA and award the project.
External activities
1. Get engaged with partners (World Bank, ADB, ITU, APT, SATRC, BIMSTEC etc.)
2. Make the long distance telecoms carriers on board.
3. Effectively disseminate the status of Asian Information Superhighway.