Benchmarking the Asia-Pacific Broadband Divide

Benchmarking the Asia-Pacific Broadband Divide : 

Benchmarking the Asia-Pacific Broadband Divide Michael Minges Senior Market Analyst

References : 

2 References Designed Digital Access Index Worked on Digital Opportunity Index

Contents : 

3 Contents Update on the ITU Digital Opportunity Index (DOI) Benchmarking broadband The Asian broadband divide

ITU Digital Opportunity Index (DOI) : 

4 ITU Digital Opportunity Index (DOI) What is Digital Opportunity? The whole population having easy access to Information and Communication Technologies (ICTs) at affordable prices; All homes equipped with ICT devices; All citizens having mobile ICT devices; and Everyone using broadband.

DOI trends 2000-2007 : 

5 DOI trends 2000-2007

DOI in detailTaiwan : 

6 DOI in detailTaiwan Source: Adapted from FIND, NCC, DGBAS.

DOI Asia-Pacific : 

7 DOI Asia-Pacific

Benchmarking broadband : 

Benchmarking broadband

Importance of broadband : 

9 Importance of broadband “Highspeed broadband, which a few years ago was considered a luxury is today a necessary part of the industrial, commercial and lifestyle landscapes.” –Government of Malaysia “Recognising the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele-medicine, e-governance, entertainment as well as employment generation...”—Government of India “Broadband not only plays a critical role in the workings of the economy, it connects consumers, businesses, governments and facilitates social interaction.”—OECD

Broadband penetration OECDDecember 2007, per 100 people : 

10 Broadband penetration OECDDecember 2007, per 100 people Source: OECD, NCC.

Aspects of broadband : 

11 Aspects of broadband Different aspects of broadband beyond just penetration OECD has identified some but not all Fixed versus wireless / mobile broadband Source: OECD.

Broadband penetration : 

12 Broadband penetration Even among high income economies, significant difference in basic broadband penetration statistic Closer inspection reveals some surprises Broadband subscribers per 100 people, 2007

Penetration by sector : 

13 Penetration by sector

Competition : 

14 Competition A more competitive broadband market, including a variety of technologies, tends to result in higher broadband penetration Competition can be measured by both technology and operators

Pricing : 

15 Pricing Wide variety of plans, coverage & exceptions / restrictions inhibit ability to compare broadband pricing: Highest speeds not always universally available Data or time volume caps in Australia, Hong Kong (some plans) and New Zealand 8 Mbps download is only comparable plan (with 10 GB download) Ongoing promotions, bundled offers, etc. make comparisons difficult

Speed : 

16 Speed Composite measure of speed in use desirable but comparable data not available: Australia: 30% < 512 kbps; 3%> 24 Mbps Hong Kong: Over 60% of customers using > 25 Mbps (HKBN) Japan: 40% fiber optic Taiwan: Average download speed 3.56 Mbps (CHT) Fall back on broadband as % of Internet in homes

3G Mobile : 

17 3G Mobile 3G mobile technology supports broadband speeds Indicators: 3G subscribers as % of total mobile subscribers 3G subscribers per 100 people 3G data cards

Coverage : 

18 Coverage Definitions vary: number of lines upgraded, population covered or households which could subscribe: Australia: 81% DSL coverage Korea: 100% DSL coverage Japan: 95% households have one or more broadband service; 84% have “ultra-high speed” broadband coverage Hong Kong: Fiber available to 2/3 of households New Zealand: 93% DSL coverage Singapore: Singtel has island wide DSL coverage Taiwan: “Substantially all installed telephone lines capable of delivering ADSL services”

Usage example: IPTV : 

19 Usage example: IPTV Note: excluding Japan.

Broadband index results : 

20 Broadband index results

The Asia-Pacific broadband digital divide : 

The Asia-Pacific broadband digital divide

Broadband divide in Asia-Pacific : 

22 Broadband divide in Asia-Pacific

Top broadband providers versus top mobile providers in Asia : 

23 Top broadband providers versus top mobile providers in Asia Developing countries Source: Adapted from company reports. Top 10 broadband operators, 2007 Top 10 mobile operators, 2007

Internet in Asia developing economies: Primarily wireless-Philippines example : 

24 Internet in Asia developing economies: Primarily wireless-Philippines example Source: Adapted from PLDT, Globe.

Broadband targets : 

25 Broadband targets

Broadband recommendations : 

26 Broadband recommendations Encourage franchising Certify Customer Premises Equipment & announce broadband plans to encourage manufacturing of CPEs Expedite mechanism for spectrum Streamlining and sharing Rights of Way Encourage broadband via broadcast technology Universal Service fund for providing broadband in underserved areas and to subsidize backhaul charges Make Multiple Dwelling Unit buildings broadband ready Adapted from Telecom Regulatory Authority of India

Conclusions : 

27 Conclusions Big broadband divide in Asia region Numerous barriers including income, geography, literacy, policy and competition Competition: intra- and inter-modal and fixed broadband versus mobile broadband Mobile and “Internet-like” use in developing countries How much broadband is enough?

The End : 

The End minges@tmgtelecom.com