1 Promoting Broadband adoption in ECA and Belarus: A World Bank perspective Juan Navas Sabater World Bank Minsk, Belarus 30 June 2010

Outline International experience with broadband promotion Status in ECA and Belarus Examples of World Bank projects 2

3 IC4D09: World Bank’s report on ICT for Development Part I Chapter 1: Overview Chapter 2: Convergence Chapter 3: Economic Impact of Broadband Chapter 4: Backbone Networks in Africa Chapter 5: E-government Experiences from India Chapter 6: National E-government Institutions Chapter 7: IT and IT-enabled Services Part II Key Trends in ICT Development Progress in Measuring ICT At-a-glance Tables for 150 Economies

ICT supports economic growth, investments and job creation 4 10% increase in broadband penetration leads to 1.4% increase in annual GDP growth ** McKinsey & Company, Mobile broadband for the masses, February 2009, p. 4 Potential economic impact of increased broadband penetration 2/3 of private investments in infrastructure in ECA was from telecom Private investments in infrastructure projects in ECA, (total $202bn) Source: Private Participation in Infrastructure Database

5 Broadband Infrastructure in Stimulus Packages Broadband Component as Percentage of Total Stimulus Plans Comments  United States, Britain, Canada, Germany, Portugal and Finland have all included measures to expand broadband access and to bolster connection speeds in their planned economic stimulus packages. Australia, France, Ireland, Japan, Singapore and the Republic of Korea have announced separate broadband plans  Plans seek to speed up existing links to build faster fixed-line and wireless next- generation networks.  Another goal is to expand broadband connections to rural areas where they are currently unavailable, in some cases considering turning broadband into a universal service  United States, Britain, Canada, Germany, Portugal and Finland have all included measures to expand broadband access and to bolster connection speeds in their planned economic stimulus packages. Australia, France, Ireland, Japan, Singapore and the Republic of Korea have announced separate broadband plans  Plans seek to speed up existing links to build faster fixed-line and wireless next- generation networks.  Another goal is to expand broadband connections to rural areas where they are currently unavailable, in some cases considering turning broadband into a universal service Source: “Broadband Infrastructure Investment in Stimulus Packages: Relevance for Developing Countries”, Christine Zhen-Wei Qiang, The World Bank, May 2009

International broadband targets 6 CountryPeriodObjetive Australia Mbps for 90% households with fiber, rest wireless. South Korea (U-Korea Master Plan) 40% population with 100Mbps access by 2010, reaching 1Gbps by Spain Rural broadband, universal access. Finlandia Mbps is a legal right in Mbps for 99% population, less than 2km distance to fiber. Francia (France Numérique) Rural broadband, universal access at 512kbps, 4 million households with fiber by Japón (eJapan strategy) Rural broadband, universal access by Singapur Gbps for 100% population (60% by 2011) Suecia Rural broadband, universal access at 2Mbps by Reino Unido (Digital Britain) Rural broadband, universal access at 2Mbps by USA (America’s Plan) Rural broadband, universal access at 4Mbps by 2020, 100 million households with 100Mbps.

Australia – rural backbone Problem Fully liberalized market but no competition to Telstra on small- town/rural routes Limits to regulated access to Telstra’s network Australia – extending backbone network competition to small towns Strategy Create competition to Telstra on 6 priority up-country routes (6000km, 100 locations) through subsidizing new entrant (up to A$250). Routes selected by government and then contracts tendered. Winner required to provide on a non-discriminatory basis – enforced through PPP contract. Operation for 5 years Operator required to provide range of wholesale services (Managed wavelength, Carrier managed leased line services (SDH), Carrier managed Ethernet, interconnection) Contract and awarded to Nextgen (mid 2009).

8 Policy Options for Broadband Backbone Networks Public-private partnerships can leverage the private sector to meet ICT infrastructure development objectives.

Broadband access in ECA is limited A challenge facing CIS countries is to expand access and use of affordable broadband Internet connectivity (see Chart), and especially in rural areas. Limited access limits economic growth prospects. Missed opportunities include: –Investments, jobs, and tax revenues –Business competitiveness, service sector growth, trade 9 Chart: Broadband (fixed) market penetration CIS and EU15 (% of total population)

World Bank projects in Africa 10 East Africa (Regional Communications Infrastructure): US$ 424 million Central Africa (Central Africa Backbone): US$ 312 million West Africa (ECOWAS Broadband): US$ 260 million

Kenya: public-private financing 11 Competitive privately-funded routes Public-private financing of fiber optic backbone for rural and non profitable routes Support for backbone networks: o Competitive subsidies o Infrastructure sharing o Access to a fiber of state-owned enterprises (electricity, railways, pipelines) o Consortia to operate neutral backbone o Demand aggregation

World Bank project in Armenia 12 Armenia: E-Society and Innovation for Competitiveness Project (US$ 30 million): Broadband backbone network, government private network Electronic ID Documents Computer for all program Support for techno parks Investment fund for promotion of innovation and IT sector firms

Caribbean infrastructure program Caribbean Regional Communications Infrastructure Program (US$ 62 million – under preparation): Connectivity: access to submarine cables, national backbone networks, government networks Support to regional ICT industry Platforms for e-services 13

THANK YOU Juan Navas-Sabater