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ITUPublications International Telecommunication Union

Study Period 2018-2021 Development Sector

Study Group 1 Question 1

Strategies and policies for


the deployment of broadband
in developing countries
Output Report on ITU D Question 1/1

Strategies and policies for the


deployment of broadband
in developing countries
Study period 2018-2021
Strategies and policies for the deployment of broadband in developing countries:
Output Report on ITU D Question 1/1 for the study period 2018-2021

ISBN 978-92-61-34471-9 (Electronic version)


ISBN 978-92-61-34481-8 (EPUB version)
ISBN 978-92-61-34491-7 (Mobi version)

© International Telecommunication Union 2021

International Telecommunication Union, Place des Nations, CH-1211 Geneva, Switzerland


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Acknowledgments
The study groups of the ITU Telecommunication Development Sector (ITU-D) provide a neutral
platform where experts from governments, industry, telecommunication organizations and
academia from around the world gather to produce practical tools and resources to address
development issues. To that end, the two ITU-D study groups are responsible for developing
reports, guidelines and recommendations based on input received from the membership.
Questions for study are decided every four years at the World Telecommunication Development
Conference (WTDC). The ITU membership, assembled at WTDC-17 in Buenos Aires in October
2017, agreed that for the period 2018-2021, Study Group 1 would deal with seven Questions
within the overall scope of “enabling environment for the development of telecommunications/
information and communication technologies.”

This report was prepared in response to Question 1/1: Strategies and policies for the deployment
of broadband in developing countries under the overall guidance and coordination of the
management team of ITU-D Study Group 1 led by Ms Regina Fleur Assoumou-Bessou (Côte
d'Ivoire), as Chairman, supported by the following Vice-Chairmen: Ms Sameera Belal Momen
Mohammad (Kuwait); Mr Amah Vinyo Capo (Togo); Mr Ahmed Abdel Aziz Gad (Egypt); Mr Roberto
Hirayama (Brazil); Mr Vadim Kaptur (Ukraine); Mr Yasuhiko Kawasumi (Japan); Mr Sangwon
Ko (Republic of Korea); Ms Anastasia Sergeyevna Konukhova (Russian Federation); Mr Víctor
Martínez (Paraguay); Mr Peter Ngwan Mbengie (Cameroon); Ms Amela Odobašic (Bosnia
and Herzegovina); Mr Kristián Stefanics (Hungary) (resigned in 2018) and Mr Almaz
Tilenbaev (Kyrgyzstan).

The report was authored by the co-Rapporteurs for Question 1/1 Mr Vadim Kaptur (O.S.
Popov Odessa National Academy of Telecommunications, Ukraine) (Chapter 1 lead editor)
and Mr Fred Ongaro (Kenya) (Chapter 2 lead editor) in collaboration with Vice-Rapporteurs:
Mr Turhan Muluk (Intel Corporation, United States) (Chapter 1 editor and Chapter 3 lead editor);
Mr Mohamed Amine Benziane (Algérie Télécom SPA, Algeria) (Chapters 1-4 editor); Ms Aminata
Niang Diagne (Senegal) (Chapter 3 editor) ; Ms Jane Coffin (Internet Society (ISOC)) (Chapter
4 lead editor); Mr Charles Zoë Banga (Central African Republic) (Chapter 4 editor); Mr Karma
Jamyang (Bhutan); Mr Issoufi K. Maiga (Mali); Mr Jean Marie Maignan (Haiti); Mr Luc Servais
Missidimbazi (Congo); Mr Abdoulaye Ouedraogo (Burkina Faso); Mr Ümit Nevruz Özdemir (Türk
Telekom, Turkey); Ms Qian Zhang (China) and Mr Chunfei Zhang (China (resigned in 2018)).

Special thanks go to the above mentioned chapter editors including Mr Stanislas Kanvoli (Côte
d'Ivoire) (Chapter 2 editor), Ms Imani K. Ellis (Cheek Sy, USA) (Chapter 2 editor) and Mr Yahya
Al-Hajri (Oman) (Chapter 4 editor) for their dedication, support and expertise.

This report has been prepared with the support of the ITU-D study group focal points, the editors
as well as the publication production team and ITU-D study group secretariat.
Table of contents
Acknowledgments�������������������������������������������������������������������������������������������������������������������������iii

Executive summary�����������������������������������������������������������������������������������������������������������������������vii

Introduction and background��������������������������������������������������������������������������������������������viii

Abbreviations�����������������������������������������������������������������������������������������������������������������������������������x

Chapter 1 − Trends in broadband access technologies and deployment


and regulatory considerations ��������������������������������������������������������������������������������������1

1.1 Trends in standards for broadband access technologies������������������������������������� 1


1.1.1 Mobile broadband���������������������������������������������������������������������������������������� 2
1.1.2 Fixed broadband������������������������������������������������������������������������������������������ 6
1.1.3 Next generation of satellite broadband����������������������������������������������������� 7
1.2 Trends in national plans for fixed- and mobile-broadband development���������� 9
1.3 Trends in regulation, investment procedures and public-private
partnership ��������������������������������������������������������������������������������������������������������������������������� 11
1.3.1 Tackling market dominance and competition���������������������������������������� 13
1.3.2 Spectrum reform unfolding ���������������������������������������������������������������������� 13
1.3.3 The growing importance of quality of service and experience������������ 14
1.3.4 VoIP �������������������������������������������������������������������������������������������������������������� 14
1.3.5 Number portability ������������������������������������������������������������������������������������ 14
1.3.6 Simplified and converged licensing regimes ����������������������������������������� 14
1.3.7 Taxation of the digital economy: Steps to build on������������������������������� 14
1.3.8 Infrastructure sharing��������������������������������������������������������������������������������� 15
1.3.9 Regulatory process is opening up ����������������������������������������������������������� 15
1.4 Trends in international connectivity in developing countries����������������������������� 15
1.5 Trends in capacity building and supporting decisions in the process
of broadband deployment������������������������������������������������������������������������������������������������� 16
1.5.1 Broadband deployment and digital equity capacity building
for State and local stakeholders������������������������������������������������������������������������������ 17
1.5.2 United States rural broadband network planning and
capacity-building workshops����������������������������������������������������������������������������������� 18
1.5.3 Women, ICTs and development��������������������������������������������������������������� 19
1.5.4 ITU spectrum management training programme���������������������������������� 19
1.5.5 Case studies and resources for ICTs and accessibility��������������������������� 19

Chapter 2 − Strategies, policies and regulations for broadband,


including financing mechanisms����������������������������������������������������������������������������������20

iv
2.1 Broadband policies����������������������������������������������������������������������������������������������������� 20
2.1.1 Create demand for broadband������������������������������������������������������������������ 21
2.1.2 Protect intellectual property rights������������������������������������������������������������� 22
2.1.3 Review of tax policies and regulatory fees������������������������������������������������ 22
2.1.4 Simplifying wayleave access������������������������������������������������������������������������ 22
2.1.5 Encourage public-private partnerships ���������������������������������������������������� 22
2.1.6 Invest in the latest innovative technology�������������������������������������������������� 23
2.1.7 Promote development and use of local Internet exchange points�������� 23
2.1.8 Encourage piloting �������������������������������������������������������������������������������������� 23
2.1.9 Categorizing broadband infrastructure as critical infrastructure������������ 24
2.1.10 Other policies������������������������������������������������������������������������������������������������ 24
2.2 Regulatory interventions�������������������������������������������������������������������������������������������� 24
2.2.1 Responsive regulatory frameworks������������������������������������������������������������ 24
2.2.2 Competitive markets������������������������������������������������������������������������������������ 25
2.2.3 Allocation of spectrum resources��������������������������������������������������������������� 25
2.2.4 Development and implementation infrastructure co-
deployment and sharing guidelines ������������������������������������������������������������������������ 26
2.2.5 Price regulation��������������������������������������������������������������������������������������������� 27
2.2.6 Other regulations������������������������������������������������������������������������������������������ 27
2.3 Deployment strategies����������������������������������������������������������������������������������������������� 27
2.3.1 Development and implementation of formal broadband plans������������ 27
2.3.2 Encourage sharing of deployment plans��������������������������������������������������� 28
2.3.3 Government funding to connect government institutions ��������������������� 28
2.3.4 Direct government investment������������������������������������������������������������������� 28
2.3.5 Establishment of community networks������������������������������������������������������ 29
2.4 Financing mechanisms ���������������������������������������������������������������������������������������������� 30
2.4.1 Public-utility model��������������������������������������������������������������������������������������� 31
2.4.2 Public-private financing model ������������������������������������������������������������������ 31
2.4.3 Operator-funded model������������������������������������������������������������������������������ 32
2.4.4 Promoting last-mile connectivity using reverse auctions������������������������ 32
2.4.5 Selecting the most appropriate financing models ���������������������������������� 33

Chapter 3 − Transition to high-speed and high-quality broadband networks�������34

3.1 Importance of high-speed and high-quality broadband �������������������������������������� 34


3.2 Transition to high-speed and high-quality broadband networks������������������������� 35
3.2.1 Transition to high-speed and high quality mobile broadband
networks (5G)�������������������������������������������������������������������������������������������������������������� 35
3.2.2 Transition to high-speed and high-quality wireless broadband
networks����������������������������������������������������������������������������������������������������������������������� 36

v
3.2.3 Transition to high-speed and high-quality fixed-broadband
networks����������������������������������������������������������������������������������������������������������������������� 36
3.3 Best-practice guidelines��������������������������������������������������������������������������������������������� 37
3.4 Country/regional examples��������������������������������������������������������������������������������������� 38

Chapter 4 − Indirect aspects for the deployment of broadband������������������������������45

4.1 Transition from IPv4 to IPv6��������������������������������������������������������������������������������������� 45


4.2 Using NFV- and SDN-based networks��������������������������������������������������������������������� 46
4.2.1 Software-defined networking (SDN)���������������������������������������������������������� 46
4.2.2 Applying SDN in segment routing-MPLS service provider networks���� 47
4.2.3 Telco cloud ��������������������������������������������������������������������������������������������������� 47
4.3 Development of Internet exchange points (IXPs)��������������������������������������������������� 48
4.3.1 IXP in Bhutan������������������������������������������������������������������������������������������������� 48
4.3.2 Model memorandum of understanding on the interconnection
of the CGIX (Republic of the Congo) and GAB-IX (Gabon) IXPs�������������������������� 48

Chapter 5 − Conclusions�������������������������������������������������������������������������������������������������49

Annex 1: Key takeaways from workshops/seminars and other activities related to


the Question������������������������������������������������������������������������������������������������������������������������������������ 50

Annex 2: Case studies�������������������������������������������������������������������������������������������������������������������� 53

vi
Executive summary

This report is the culmination of the work completed under Question 1/1 entrusted to Study
Group 1 of the ITU Telecommunications Development Sector (ITU-D), which examines strategies
and policies for the deployment of broadband in developing countries.

The report includes country experiences and best-practice guidelines to promote affordable
broadband networks; strategies to stimulate investment in broadband networks; information
on methods of broadband infrastructure deployment; overview of basic principles of transition
from narrowband to high-speed, high-quality broadband networks; case studies associated
with operational and technical issues of deploying broadband networks; examples of removing
practical and regulatory barriers to broadband infrastructure deployment; overview of national
experiences in the transition from IPv4 to IPv6; and other indirect aspects of broadband
deployment.

Chapter 1 of the report reviews trends in broadband access technologies and deployment and
regulatory considerations, including trends in standards for broadband access technologies;
trends in national plans for fixed and mobile broadband development; trends in regulation,
investment procedures and public-private partnerships; and trends in capacity building and
supporting decisions in the process of broadband deployment.

Chapter 2 examines strategies, policies and regulations for broadband, including regulatory
interventions, deployment strategies and financing mechanisms. It contains an overview of
responsive regulatory frameworks, competitive markets, principles of allocation of spectrum
resources, implementation infrastructure co-deployment and sharing guidelines, price
regulation, as well as information about the development and implementation of broadband
plans.

Chapter 3 concentrates on the transition to high-speed and high-quality broadband networks,


including an overview of basic principles for mobile-broadband networks (5G), other wireless-
broadband networks and fixed-broadband networks. It also contains best-practice guidelines
and an overview of country and regional examples.

Chapter 4 contains information on the indirect aspects of broadband deployment, including


transition from IPv4 to IPv6, using network functions virtualization (NFV) and software-defined
networking (SDN)-based networks as well as development of Internet exchange points (IXPs).

Chapter 5 summarizes the conclusions drawn in previous chapters.

vii
Introduction and background
Broadband technologies are fundamentally transforming the way we live. Broadband
infrastructure, applications and services offer important opportunities for boosting economic
growth, enhancing communications, improving energy efficiency, safeguarding the planet and
improving people’s lives. Broadband access has had a significant impact on the world economy.
Rapid evolution and new business opportunities are driving rapid but uneven growth in digital
technologies.1

According to ITU data, 2019 marked the first full year when more than half the world began
to participate in the global digital economy by logging onto the Internet. The latest ITU data
show that some 49 per cent of the world’s population currently remain unconnected (ITU, 2020
estimates).2

In this era of a global pandemic and the attendant social-distancing induced lockdowns that have
inhibited the movement of people even within their own communities, network connectivity has
fast emerged as a critical – and sometimes, the only – means of providing essential services, such
as education and healthcare, and of keeping commerce going. The COVID-19 pandemic has
thrown social fissures into greater relief. In these troubling times, the digital divide risks being
further widened in the absence of network connectivity for those on the margins of society,
whether owing to economic or geographic reasons, such as people in rural areas. This digital
divide exists not merely between developing and developed countries, but between the urban/
suburban and rural populations of developing and developed countries alike. Unless this divide
is skilfully and thoughtfully addressed, it is likely to widen during this global pandemic which,
according to experts, may last a while – especially given high contagion risks and an uncertain
time-frame for the development and distribution of an effective vaccine globally.3

Developing countries have already invested more than USD 1 trillion for the existing mobile
networks and continue to invest billions of dollars each year. According to ITU statistics,4 mobile
networks cover 96.7 per cent of the population in developing countries (3G networks cover
93 per cent of the population; 4G networks cover 85 per cent of the population). The next step
is to transform these mobile networks into high-speed and high-quality intelligent 5G networks.5
Therefore, much attention is currently focused on 5G technology, with 5G positioned as an
intelligent network that supports data and analytics use cases, driving diverse usage scenarios.
For instance, 5G is seen as enabling both developed and developing countries to make full use
of new technologies such as Internet of Things (IoT), cloud computing, machine-to-machine
(M2M) and data analytics. The COVID-19 situation also clearly shows the importance of 5G,
and detailed information can be seen in a presentation on the “Importance of 5G and AI for the
Pandemics (COVID-19)” given at the ITU Webinar on solutions for pandemics.6

The pandemic has also shown the importance of diverse information and communication
technologies (ICTs) in ensuring connectivity.7 More information can be found in the ITU “Guide

1
ITU and UNESCO. Broadband Commission for Sustainable Development. The State of Broadband 2019:
Broadband as a Foundation for Sustainable Development. Geneva, September, 2019.
2
ITU Statistics.
3
ITU-D SG1 Document SG1RGQ/382 from Ericsson Ltd. (United States)
4
ITU. ITU-D. Measuring digital development: Facts and figures 2020. Geneva, 2020.
5
ITU-D SG1 Document SG1RGQ/375(Rev.1) from Intel Corporation (United States)
6
Turhan Muluk and Mario Romao (Intel). Importance of 5G and AI for Pandemics (COVID-19). ITU Webinar:
New e-health solutions to combat pandemics with ICT, 6 July 2020.
7
ITU-D SG1 Document 1/441 from EMEA Satellite Operators Association (ESOA)

viii
to develop a TELECOM-ICT contingency plan for a pandemic response”,8 on the Reg4Covid
platform9 and in the World Summit on the Information Society (WSIS) Coronavirus Response
Special Report.10

Persons with limited digital literacy can use Internet effectively through artificial intelligence
(AI) and high-speed broadband networks. They can interact by talking to AI-based digital voice
assistants (DVAs) to access online services. DVAs could help to bridge the gap caused by
illiteracy in access to valuable information and services ranging from education and agriculture
to medical care from the Internet.11

8
ITU. ITU-D. Guide to develop a telecommunication/ICT contingency plan for a pandemic response. Geneva,
2020.
9
ITU. Global Network Resiliency Platform (#REG4COVID).
10
World Summit on the Information Society (WSIS). WSIS Stocktaking ICT Case Repository. The Coronavirus
Response – Special Report. (Zero draft, 10 September 2020).
11
ITU-D SG1 Document 1/462+Annexes from Intel Corporation (United States)

ix
Abbreviations

Abbreviation Term
3GPP 3rd Generation Partnership Project

ADSL asymmetric digital subscriber line

AI artificial intelligence

AMPS advanced mobile phone service

AR augmented reality

ARPU average revenue per user

BPON broadband passive optical network

CDMA code-division multiple access

CEPT European Conference of Postal and Telecommunications Administrations

DOCSIS data over cable service interface specification

EIB European Investment Bank

eMBB enhanced mobile broadband

EPON Ethernet passive optical network

FOCL fibre-optic cable lines

FTTH fibre-to-the-home

FWA fixed wireless access

GPON gigabit passive optical network

GSM Global System for Mobile Communications

GSMA GSM Association

HD high-definition

HTS high-throughput satellite

IAP Internet access provider

ICT information and communication technology

IEEE Institute of Electrical and Electronics Engineers

IETF Internet Engineering Task Force

IMT International Mobile Telecommunications

IoT Internet of Things

x
(continued)
Abbreviation Term
IIoT industrial Internet of Things

IPV4 / IPV6 Internet Protocol version 4 / Internet Protocol version 6

ISP Internet service provider

ITS intelligent transport system

ITU International Telecommunication Union

ITU-D ITU Telecommunication Development Sector

ITU-R ITU Radiocommunication Sector

ITU-T ITU Telecommunication Standardization Sector

IXP Internet exchange points

LDC least developed country

LEO low Earth orbit

LTE Long-Term Evolution

M2M machine-to-machine

MEO medium Earth orbit

MIMO multiple-input multiple-output

MoU memorandum of understanding

MPLS multiprotocol label switching

NGN next-generation network

non-GSO non-geostationary satellite orbit

NMT Nordic Mobile Telephone

NFV network functions virtualization

NRA national regulatory agency

OTT over-the-top

PDC personal digital cellular

PPP public-private partnership

P2P point-to-point

QoE quality of experience

QoS quality of service

SAARC South Asian Association for Regional Cooperation

SDGs United Nations Sustainable Development Goals

xi
(continued)
Abbreviation Term
SDN software-defined networking

SMEs Small- and medium-sized enterprises

TACS total access communication system

TDMA time-division multiple access

UMTS Universal Mobile Telecommunications Service

URLLC ultra-reliable low latency

VDSL very high-speed digital subscriber line

VNF virtual network function

VHCN very high-capacity network

VHTS very high-throughput satellite

VoIP voice over Internet Protocol

VR virtual reality

WBA Wireless Broadband Alliance

WCDMA wideband code-division multiple access

WiMAX Worldwide Interoperability for Microwave Access

WPA Wi-Fi protected access

WRC World Radiocommunication Conference

WSIS World Summit on the Information Society

WTDC World Telecommunication Development Conference

xii
Strategies and policies for the deployment of broadband in developing countries

Chapter 1 − Trends in broadband


access technologies and deployment
and regulatory considerations

Telecommunications in the modern information society is a key focus of the world economy
which determines the level of Member States’ competitiveness. Market competition encourages
different stakeholders to track and predict the main trends in the telecommunication industry
with the aim of investing in the most effective methods for rapid and cost-effective development
of modern telecommunication networks.

Among all the elements of modern telecommunication industry development, the following
factors have the greatest influence on the deployment of broadband:

– standards for broadband access technologies;


– national plans for fixed- and mobile-broadband development;
– regulation, investment procedures and public-private partnerships;
– capacity building and supporting decisions in the process of broadband deployment.

1.1 Trends in standards for broadband access technologies


Understanding trends in the study and standardization of broadband access technologies is
inextricably linked with the evolution of technology generations. A widespread practice is to
use commercial designations for different generations of mobile communications, such as 1G
(AMPS, TACS, NMT), 2G (TDMA, CDMA, GSM, PDC), 3G (IMT-2000, WCDMA, CDMA2000,
UMTS), 4G (IMT-Advanced, LTE-Advanced, WiMAX) and 5G (IMT-2020). Another example
of the term “generation” in infocommunications is its use as part of the term ‘next-generation
networks’ (NGN).

To concretize the task of studying the principles of building modern networks, several generations
of technologies can be used, depending on which stage of development and implementation
provide the key technical ideas for the deployment of broadband.

Generation class 1. Past generations

Generation G-3 (G “minus” 3): Technologies that today, usually, are no longer used for the
building of new telecommunication networks. Examples include 1G mobile communication
technologies as well as technologies such as BPON (broadband passive optical network) and
analogue TV-broadcasting technologies.

Generation G-2 (G “minus” 2): Technologies that continue to be used to ensure compatibility
with ageing subscriber equipment. Examples include 2G mobile communication technologies
as well as technologies such as EPON (Ethernet PON), ADSL and DOCSIS 1.0.

Output Report on ITU D Question 1/1 1


Strategies and policies for the deployment of broadband in developing countries

Generation class 2. Modern generations

Generation G-1 (G “minus” 1): Technologies that are used less nowadays for the building of
broadband access networks due to the development of more promising technologies that
are related to the G+1 generation (below). These technologies are well studied, standardized
and commercialized. Examples include 3G mobile communication technologies, as well as
technologies such as GPON, ADSL2+, VDSL and DOCSIS 2.0.

Generation G+1 (G “plus” 1): The technologies that are actively used for the building of broadband
access networks. These technologies also are well studied, standardized and commercialized.
Examples include 4G mobile communication technologies as well as technologies such as XG-
PON1, Vectored VDSL and DOCSIS 3.0.

Generation class 3. Next generations

Generation G+2 (G “plus” 2): Technologies that are currently at the stage of experimental
implementations and/or standardization. Examples include 5G mobile communication
technologies as well as technologies such as 100 EPON, G.fast and DOCSIS 3.1.

Generation G+3 (G “plus” 3): Technologies that are presented today in the form of innovative
ideas and principles and which are under study and approval.

1.1.1 Mobile broadband


For most of the population in developing countries, mobile is the primary way to access the
Internet. Mobile Internet brings a wide range of social and economic benefits by helping to
promote digital inclusion and supporting the delivery of essential services, such as mobile
money, mobile agricultural services as well as mobile-enabled health and education services.
Additionally, there is evidence that countries with high levels of mobile connectivity have
made the most progress in meeting their commitments to the United Nations Sustainable
Development Goals (SDGs).1

Despite the growth in mobile telephony, the diversity of services, and the particular features of
this technology, many populations do not yet enjoy the benefits of mobile broadband.2

The GSMA’s Mobile Connectivity Index supports the mobile industry’s commitment to connect
everyone and everything to a better future.3 The Mobile Connectivity Index, which can be found
online,4 is built up through 35 indicators feeding into 12 dimensions that are aggregated to
give a score for each of the four enablers. Scores fall within a range of 0-100.

The Mobile Connectivity Index measures the performance of 170 countries against the key
enablers of mobile Internet adoption. These data can help the mobile industry and other
stakeholders understand where to focus action in order to drive increased mobile Internet
adoption.

Strong growth in mobile-broadband subscriber numbers continues, driven in part by consumer


demand for applications with 4G LTE, now a major means of getting broadband at home in

1
ITU-D SG1 Document 1/244 from GSMA
2
ITU-D SG1 Document 1/30 from the Higher Multinational School of Telecommunications (Senegal)
3
ITU-D SG1 Document 1/247 from GSMA
4
GSMA. GSMA Mobile Connectivity Index.

2 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

several regions, as well as access to 4G networking services. These have improved considerably
over the last year, particularly in low-income countries where coverage almost doubled. LTE and
higher generation 4G technologies now account for over half of all global mobile subscribers.

First- and second-generation wireless networks were focused on voice services, then 3G and
4G shifted towards data and mobile broadband. While for mobile broadband the focus in the
future will continue to be on 5G, support for a much wider set of diverse usage scenarios is
expected. Indeed, 5G is positioned as an intelligent network that supports data and analytics use
cases, helping it reach out to drive new industries in ways not previously possible. 5G enables
developing countries to make full use of new technologies, such as AI, cloud computing, M2M
and data analytics.

Over 90 per cent of broadband subscribers in developing countries use mobile broadband, and
it is vital to migrate to 5G successfully in order to harness the full benefits of mobile broadband.
5G/IMT-2020 will provide new applications and services for both developed and developing
countries. In fact, some of the 5G/IMT-2020 applications will be much more important for
developing countries, such as smart transport systems, e-health, e-education, smart grid,
e-agriculture and disaster relief. Developing and emerging economies are leapfrogging older
technologies and becoming more mobile-oriented. 5G will have a significant economic impact
on these economies.5

Widespread ownership and use of the mobile phone can fast-track progress towards a digital
age, transforming the daily lives of millions – especially impacting women, the poor and those
in remote and rural areas – and igniting the growth of their economies for the benefit of all.6

Wi-Fi

Wi-Fi is the most widely adopted wireless technology.7 Wi-Fi’s ubiquity, flexibility and affordability
have been instrumental in the growth of connectivity in emerging markets, where it has been a
powerful tool for bridging the digital divide, as well as the driver for IoT and M2M applications.
Wi-Fi and IMT are both needed to meet 5G requirements. Wi-Fi carries most of the wireless
data traffic, and will continue to do so.

Wi-Fi has continued to evolve since the standard’s ratification in 1997. Standard updates have
improved the air interface (IEEE 802.11n, IEEE 802.11ac, and eventually IEEE 802.11ax (Wi-Fi 6)),
added new spectrum bands (WiGig in the 60 GHz band with IEEE 802.11ad, IEEE 802.11ay and
6 GHz with IEEE 802.11ax), and kept up with security needs (WPA, WPA2, WPA3). In addition,
the Wi-Fi Alliance and the Wireless Broadband Alliance (WBA) have introduced new functionality
to improve traffic management, ease of user access and authentication, roaming, voice calls
and, more generally, support for new use cases. Crucial to Wi-Fi’s success are backwards
compatibility and interoperability, which provide a continuity that has set the foundation for
market growth and that benefits vendors, service providers and users alike. Wi-Fi networks can
gradually evolve to include new functionality and improved performance, while supporting
legacy devices. For instance, there will be no need to replace devices in order to connect to
a Wi-Fi 6 AP, and a new Wi-Fi 6 device will still be able to connect to legacy APs (but not all

5
ITU and UNESCO. Broadband Commission for Sustainable Development. The State of Broadband 2018:
Broadband catalysing sustainable development. Geneva, 11 September, 2018.
6
ITU-D SG1 Document SG1RGQ/75 from the BDT Focal Point for Question 1/1
7
ITU-D SG1 Document 1/230 from Intel Corporation (United States)

Output Report on ITU D Question 1/1 3


Strategies and policies for the deployment of broadband in developing countries

benefits from Wi-Fi 6 will be available due to the possibility of certain channel bandwidths not
being available).

Wi-Fi 6 captures most of today’s attention with its increase in throughput, spectrum efficiency
and device battery life, but the evolution of Wi-Fi covers more ground – including traffic
management, security, new spectrum bands, and integration with cellular – to accommodate
new use cases. Cellular and Wi-Fi will remain complementary in addressing different traffic
demands and application requirements, while becoming more integrated to share the traffic
between them.

Availability of the 6 GHz band for unlicensed access will further promote the use of Wi-Fi
among wireless Internet service providers (WISPs). As a good example, the United States
Federal Communications Commission (FCC) took action in April 2020 to increase the supply of
unlicensed spectrum, making 1 200 MHz of spectrum in the 6 GHz band available for unlicensed
use. The rules will usher in Wi-Fi 6, the next generation of Wi-Fi.

There are many additional evolutionary paths to extending the functionality, flexibility and
efficiency of Wi-Fi and improve its performance in specific use cases:

– Multi-gigabit connectivity in the 60 GHz band (WiGig, IEEE 802.11ad, IEEE 802.11ay)
to provide even higher capacity density in the highest-traffic environments, in wireless
backhaul and fixed wireless access or in home or other indoor environments where some
applications or devices require very high throughput over short distances (e.g. AR/VR,
360‑degree video, a home video projector).
– IEEE 802.11ay enhances the initial WiGig standard based on IEEE 802.11ad by supporting
peak data rates in excess of 100 Gbit/s through the use of channel bonding and 8x8 MIMO.
– Long-range, low-power connections to devices (HaLow, IEEE 802.11ah) will set the stage
for IoT or IIoT deployments. While connections may be in the kbit/s range, devices may
have challenging battery-life requirements in the order of months/years. Wi-Fi HaLow
technology operates in the unlicensed 900 MHz.

The Wi-Fi Alliance estimated the annual global economic value of Wi-Fi at USD 1.96 trillion in
2018, projecting the figure to surpass USD 3.47 trillion by 2023. Wi-Fi brings the greatest impact
to the economy in four key domains:

1. Developing alternative technologies to expand consumer choice


2. Creating innovative business models to deliver unique services
3. Expanding access to communications services for fixed and mobile networks
4. Complementing wireline and cellular technologies to enhance their effectiveness.8

LTE

LTE and LTE-Advanced are practical and popular technologies. Improved radio capabilities
make mobile-broadband services more efficient, providing higher quality and enabling new
sets of services on top of LTE networks. These features are defined in 3GPP Releases 13/14 and
are collectively known as “LTE-Advanced Pro”.

LTE-Advanced Pro is a key technology for the immediate future of mobile network development
and introduces the next step in spectral efficiency with three-dimensional (3D) beamforming,

8
ITU-D SG1 Document 1/379 from Intel Corporation (United States)

4 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

also known as full dimensional MIMO (FD-MIMO). Increasing the number of transceivers at the
base station is the key to unlocking higher spectral efficiencies.9

5G (IMT-2020)

The first commercial 5G (IMT-2020) services have already started and the coming years will see
more launches all over the world.10

Although economic benefits are greater in the economies that were early adopters over the
period studied, the rate of contribution of mmWave in economies that embraced the technology
later outpaces that of early adopters in the final years of the study.

As the telecommunication industry races towards the commercial introduction of 5G


technology, the number of operators investing in 5G technologies is growing substantially.
Telecommunication operators from all continents have announced involvement with 5G
demonstrations, lab tests and field trials.11

5G is the fastest growing mobile technology in history.12 Coverage of 5G networks has reached
15 per cent of world’s population (1.17 billion people) by 2020, and we can imagine how the
global coverage will progress rapidly (both in urban and rural areas). Despite a global pandemic
and economic challenges, 5G powered ahead at four times the speed of subscriber growth
of 4G LTE. The world added 225 million 5G subscribers between Q3 2019 and Q3 2020, a
feat which 4G LTE took four years to attain. According to Ericsson,13 in 2026, 60 per cent of the
world’s population will have access to 5G coverage, with 5G subscriptions forecast to climb
to 3.5 billion. With the right policies and regulations, we can further accelerate this transition
from existing mobile-broadband networks to 5G networks to achieve digital equity and attain
the SDGs.

At the end of 2020, the number of commercial 5G networks reached 143 in 61 countries. As
many as 392 operators in 126 countries/territories had announced they were investing in 5G by
the end of July 2020. No fewer than 83 operators had been identified as investing in 5G FWA
services by August 2020. The number of 5G devices continues to rise and passed the 600 mark
in March 2021. There are 628 announced 5G devices as at March 2021, which is an increase of
21 per cent over the last three months.14

Around the world, regulators are either in the process of holding 5G auctions or consulting
and planning the allocation of 5G-suitable frequencies. At the same time, operators have been
working in many of the candidate spectrum bands.

The availability of intelligent high-speed broadband services through 5G is very important for
the future of developing countries. 5G is a key technology for digital transformation. 5G, AI
and IoT are complementary technologies. According to IHS, 5G will enable USD 12.3 trillion of
global economic output in 2035. McKinsey forecasts that AI has the potential to incrementally
add 16 per cent, or around USD 13 trillion, by 2030 to current global economic output, and IoT

9
ITU-D SG1 Document 1/323 from Algérie Télécom SPA (Algeria)
10
ITU-D SG1 Document SG1RGQ/243 from Intel Corporation (United States)
11
ITU-D SG1 Document 1/227 from Intel Corporation (United States)
12
ITU-D SG1 Document 1/462+Annexes from Intel Corporation (United States)
13
Ericsson. Ericsson Mobility Report. Stockholm, November, 2020.
14
Global Mobile Suppliers Association (GSA). 5G reports.

Output Report on ITU D Question 1/1 5


Strategies and policies for the deployment of broadband in developing countries

will have a potential total economic impact of as much as USD 11.1 trillion per year by 2025.
Developing countries have an opportunity to derive the maximum benefit from 5G, IoT and AI.15

Recent decades have seen a significant role for ITU in the transition from one technology
to another, such as the transition from analogue to digital broadcasting, and the transition
from IPv4 to IPv6. These topics are still on the agenda of ITU study groups and other relevant
meetings, and the excitement surrounding the deployment of 5G deserves to be tempered by
questions about the pace of progress towards this technology.

The transition to 5G is certainly an opportunity for both developed and developing countries to
seize. However, a clear and harmonized timetable remains to be defined to help policy-makers
and regulators keep pace with the hitherto unbridled speed of adoption of this technology.16

Expectations of 5G are high – an improved end-user experience, new applications, new business
models and new services riding swiftly on the back of gigabit speeds, improved network
performance and reliability.

However, there are some challenges facing the implementation of 5G today. The lack of
implementation policies/regulatory mechanisms and commercial incentives, such as grants,
or PPPs, to stimulate investment in 5G networks are key areas of concern.

The ITU Report “Setting the Scene for 5G: Opportunities and Challenges 2018” highlights
16 key issues – and responses – for policy-makers to consider as they formulate strategies to
stimulate investment in 5G networks. Together, they represent powerful means of calibrating
an overall approach across major aspects of migration and, where appropriate, embarking on
a judiciously facilitated, accelerated transition to 5G.17

Meanwhile, 5G also faces the problems of high base-station density and high power consumption.
How to guarantee power supply for 5G base stations at low cost and high efficiency has become
an urgent problem that needs to be solved during the construction phase of 5G commercial
networks. A possible solution to this problem could be the centralized construction of master
power stations and branch power stations heterogeneously to provide three-dimensional space-
decentralized power supply.18

1.1.2 Fixed broadband


While fixed-telephone subscriptions continue to decline, fixed-broadband subscriptions
continue to increase around the world. According to the latest ITU statistics, there were more
fixed-broadband connections (1.178 billion) in 2020 (estimate) than fixed-telephone connections
(915 million) in 2019.

In 42 per cent of countries, more than half of fixed-broadband subscriptions had a download
speed of more than 10 Mbit/s, already surpassing the Connect 2030 Target of 40 per cent by
2023.

In developed countries, growth in fixed-broadband subscriptions is slowing, as these countries


are getting closer to saturation levels. Since fixed-broadband connections are usually shared

15
ITU-D SG1 Document 1/378 from Intel Corporation (United States)
16
ITU-D SG1 Document SG1RGQ/214 from Côte d’Ivoire
17
ITU-D SG1 Document SG1RGQ/74 from the BDT Focal Point for Question 1/1
18
ITU-D SG1 Document 1/340 from China

6 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

by all members in the household, penetration rates are unlikely to go over 50 per cent. Indeed,
penetration rates in the highest-ranked countries were between 40 and 45 subscriptions per
100 inhabitants, compared with an average of 32.7 for all developed countries. By contrast, in
developing countries, after slowing in 2012 and 2013, growth has accelerated in the last five
years, reaching 11.4 subscriptions per 100 inhabitants in 2019. This still leaves plenty of room
for further growth. In least developed countries (LDCs), growth was strong as well, albeit from
a very low base.

While subscriptions for the lowest speed tier (≥256 kbit/s to <2 Mbit/s) have virtually disappeared
from developed countries, they are still very much a reality in LDCs, where, in 2017, 30 per cent
of fixed-broadband connections were still at speeds below 2 Mbit/s.

Asia and the Pacific registered the highest share of fixed-broadband subscriptions at speeds
equal to or above 10 Mbit/s in 2017, at 89 per cent, closely followed by Europe at 87 per cent.
At the other end of the scale, in Africa and the Arab States, high proportions of subscribers
still had subscriptions at speeds below 2 Mbit/s in 2017, at 39 and 31 per cent, respectively.

1.1.3 Next generation of satellite broadband


With its global reach and immediate availability, satellite is key to connecting people
everywhere.19,20Satellite systems can provide timely availability of broadband connectivity to
developing countries with the same quality and service level as satellite links in developed
countries. While many satellite broadband technologies are available today, the new generation
of satellite systems will further extend the capacities of the space-based services. These
include low Earth orbit (LEO) and medium Earth orbit (MEO) satellite systems as well as high-
throughput satellites (HTS) or very high-throughput satellite (VHTS) systems using multiple spot
beams. Satellite systems are increasingly deployed as hybrid satellite-terrestrial systems, thus
contributing to a network of networks.

Connecting users directly with satellite broadband is important for suburban, lower-density
and more isolated areas with available speeds of 50-100 Mbit/s. As noted above, where other
standalone solutions are not economically viable, satellite is often used to backhaul mobile base
stations or enable community Wi-Fi. Satellite technologies have been used to affordably expand
and upgrade terrestrial mobile networks from 2G to 3G and 4G, often in combination with, and
providing resilient protection for, terrestrial fixed links. They are also important for connecting
passengers in mobile environments, aircraft and ships, as well as for use in temporary and
emergency situations. As such, satellite systems offer compelling alternatives to point-to-point
(P2P) microwave backhaul because of their ability to cover all geographies cost-effectively and
with quick deployment. Examples of how developing countries rely on satellite systems are
provided in Annex 3 to this report.

The role of satellite was highlighted even more with the COVID-19 pandemic, when the urgent
need to ensure complete connectivity was felt. Over 750 million people (around 10 per cent of
the global population), concentrated in rural and remote areas, are still not covered by mobile
broadband (a 3G connection or higher).21 This lack of coverage has influenced the deployment
of broadband during the last year towards a greater mix of fixed and wireless broadband

19
ITU-D SG1 Document SG1RGQ/320 from ESOA
20
ITU-D SG1 Document 1/441 from ESOA
21
GSMA. Connected Society. The State of Mobile Internet Connectivity 2019. London, July 2019.

Output Report on ITU D Question 1/1 7


Strategies and policies for the deployment of broadband in developing countries

developments including satellite, often being deployed together.22 Deploying solutions based
on multiple technologies can (i) speed up the time to connect communities and (ii) reduce
the cost of roll-out while enabling meaningful connectivity in developing countries.23 Mobile
operators, for example, continue to partner with satellite operators to extend the reach of 3G
and 4G networks into rural and remote areas by using satellite backhaul to connect to the
Internet backbone. The result brings transformational mobile connectivity to areas which would
otherwise be totally unconnected.24

Satellite contribution to 5G

Going forward, satellites will also be backhauling 5G networks. While some applications require
low latency, the most common broadband applications such as e-mail, web browsing, video
streaming or cloud file syncing do not, and depend rather on reliable connectivity, availability
and cost.25 Recently deployed and upcoming non-geostationary satellite orbit (non-GSO)
systems in medium and low Earth orbits can now provide low-latency connectivity supporting
a wide range of applications.

In view of the need to ensure broadband connectivity for a maximum of citizens, future 5G
architecture has been characterized by the European Commission as heterogeneous networks,
i.e. a network of networks, including satellite networks.26 This approach is supported by ITU in
its Report “Setting the Scene for 5G: Opportunities and Challenges”.27 and by the European
Conference of Postal and Telecommunications Administrations (CEPT) in ECC Report 280.28
Accordingly, the technical standardization work to support complete integration of non-terrestrial
networks such as satellite into 5G networks is ongoing within 3GPP, the standards-making body
for 5G, with the active support of mobile operators.29 Developing countries therefore have the
opportunity to get maximum benefit from 5G, IoT and AI.

The satellite component of 5G will make use of low, mid and high radio frequencies (S, L, C, Ku,
Ka, Q-V bands). For developing countries to benefit from all variants of broadband connectivity
to meet their diverse and evolving needs, ICT policy and regulatory frameworks need to be up
to date, reflect current technology status and be technology neutral to incentivize continued
and future investment in different solutions. This includes spectrum policy, which should protect
existing users, allow for the future deployment of diverse broadband solutions and implement
the decisions of the ITU World Radiocommunication Conference (Sharm el-Sheikh, 2019) (WRC-
19) which has made provision for future IMT/5G services, satellite and other services recognizing
the role of each one.

22
Global Satellite Coalition (GSC). The Global Satellite Industry and COVID-19.
23
Xataka (Mexico). Internet de 18 Mbps a 12 pesos la hora: probamos el internet de Viasat para comunidades
de México en donde apenas llega la luz. Updated 23 July 2018. [in Spanish]
24
SES. News. Press release. SES Networks and OptimERA Scale Capacity in Rural Alaska City Under “Stay at
Home” Rule. 21 April 2020.
25
Imitiaz Parvez et al. A Survey on Low Latency Towards 5G: RAN, Core Network and Caching Solutions. arXiv:​
1708​.02562v2 [cs.NI], 29 May 2018.
26
European Commission. Shaping Europe’s digital future. 5G Research & standards.
27
ITU. Setting the scene for 5G: opportunities and challenges. Geneva, 2018.
28
CEPT. Electronic Communications Committee (ECC). ECC Report 280. Satellite Solutions for 5G. Approved
18 May 2018.
29
NGMN News. Press release. NGMN Alliance and ESOA Members Collaborate to Extend Rural Connectivity
with Non-Terrestrial Networks. Frankfurt, Germany, 5 February 2020.

8 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Thanks to the wide service coverage capabilities of satellite systems and their reduced
vulnerability to physical attacks and natural disasters, satellites, either operating alone or
integrated with terrestrial systems, are expected to:

– Foster rapid and economic roll-out of 5G service in unserved areas that cannot be
covered by terrestrial 5G network (isolated/remote areas, on board aircraft or vessels)
and underserved areas (e.g. suburban/rural areas)
– Upgrade the performance of limited terrestrial networks in a cost-effective manner,
including enhancing their resilience to support critical 5G services
– Reinforce 5G service reliability by providing service continuity for M2M/IoT devices or for
passengers on board moving platforms (passenger vehicles, such as aircraft, ships, high-
speed trains and buses) or ensuring service availability anywhere, especially for critical
future railway/maritime/aeronautical communications
– Enable 5G network scalability by providing efficient multicast/broadcast resources for data
delivery towards the network edges or even user terminals.

Non-terrestrial network components in 5G are expected to play a role in the following verticals:
transport, public safety, media and entertainment, e-health, e-learning, energy, agriculture,
finance, and automotive.30

1.2 Trends in national plans for fixed- and mobile-broadband


development
Broadband networks have been recognized internationally as important public infrastructure.
They play an increasingly prominent role in promoting economic growth, changing growth
drivers and enhancing long-term competitiveness. Their development has become a major
criterion for measuring a country's overall national strength. Countries around the world have
all included broadband in their priority areas of development.31

The number of registered users in virtual society and Internet usage in volume and type differ
across countries, levels of society and, sometimes, within countries. They depend on cultural and
geographic indicators and Internet development rates in those countries. Understanding the
social differences in the characteristics and volume of people using the Internet and broadband
services helps to address the digital divide according to the level of technology development
in a society. This can be done by prioritizing broadband development and providing related
services in cases where more is needed. One of the possible ways of such prioritization is making
social surveys of the population regarding their needs in terms of broadband usage. As an
example, a “Social survey on Internet in Iran” conducted in 2017 helped compare citizens’ use
of broadband services and virtual networks on the basis of different indicators in various areas
and sectors of the country.32

According to the ITU Telecommunication/ICT Regulatory Database, at the end of 2019 more
than 164 countries had adopted national broadband plans, up from 136 in 2010.33

The main objectives that countries set for themselves in national broadband plans are:

– Build broadband infrastructure

30
ITU-D SG1 Document 1/326 from Algérie Télécom SPA (Algeria)
31
ITU-D SG1 Documents 1/351 and 1/456 from China
32
ITU-D SG1 Document 1/73 from the Islamic Republic of Iran
33
ITU. ICT-Eye.

Output Report on ITU D Question 1/1 9


Strategies and policies for the deployment of broadband in developing countries

– Connect households with broadband


– Promote adoption of broadband services
– Promote public services using broadband.

The main sources of funding for the implementation of national broadband plans are:

– Public-private partnerships (PPPs)


– Government grants/direct subsidies
– Universal service fund.

In several countries, alternatives to national broadband plans are encompassed in overall


national development strategies, a digital agenda or economic stimulus strategies. As at the
end of 2019, 119 countries reported the availability of documents of this type. Moreover, in
almost all cases, these documents contain some aspects of broadband development plans.

One of the most common trends in national broadband plans remains the building of broadband
infrastructure.

There is a clear recognition of the importance of ICTs in the LDCs. SDG Target 9.c explicitly
refers to providing universal and affordable access to the Internet in LDCs by 2020. There is no
single model for LDCs to boost connectivity, but progress to date points to the importance of
competition, public interventions when needed, open access, infrastructure sharing, and private
investment in the first, middle and last miles. Policy failures, such as market concentration,
troubled privatization, excessive taxation and monopoly control over international gateways,
remain the principal bottlenecks impeding broadband development in the LDCs.34

Turning to the developed countries, the Council of the European Union adopted conclusions
on Boosting Digital and Economic Competitiveness Across the Union and Digital Cohesion
which highlight the importance of a gigabit network society for a competitive, innovative and
highly digitized Europe.

The United Kingdom published the Statement of Strategic Priorities for Telecommunications,
the Management of Radio Spectrum, and Postal Services in July 2019, which clearly set out
gigabit-capable broadband deployment nationwide.

Germany put forward the 2050 vision of “Gigabit Germany” where everyone can enjoy “fast
Internet access” by promoting broadband infrastructure construction.

The Republic of Korea implemented the Giga Korea strategy as early as April 2012, with an
aim of 100 per cent gigabit broadband coverage by 2020. Currently, the gigabit broadband
network covers more than 90 per cent of households in the country. The Republic of Korea
also launched the 5G Plus Plan to accelerate 5G commercial development in five core services
and ten industries.

The United States released the 5G FAST Plan,35 which includes three key components:

1. Pushing more spectrum into the marketplace by speeding up auction to expedite 5G


commercialization

34
ITU and UN-OHRLLS. ITU-D. Thematic report. LDCs and small island developing states. ICTs, LDCs and the
SDGs: Achieving universal and affordable Internet in the least developed countries. Geneva, 2018.
35
ITU-D SG1 Document SG1RGQ/328(Rev.1) from the United States

10 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

2. Updating infrastructure policy to simplify the deployment process of base stations and
promote the rapid deployment of 5G networks
3. Modernizing outdated regulations to stimulate 5G investment and innovation.

In April 2019, the Chinese Government issued a policy document to further promote faster
and more affordable broadband networks, proposing to advance dual-gigabit acceleration
for fixed and mobile broadband.36

Strategies for ensuring that all citizens, wherever they may be, have access to the best possible
international infrastructure are therefore an important public policy priority that, together with
ensuring quality of service in the ever-changing digital environment, will also assist in achieving
the SDGs.

1.3 Trends in regulation, investment procedures and public-private


partnership
Digitalization is increasingly and fundamentally changing societies and economies and disrupting
many sectors in what has been termed the 4th Industrial Revolution. Meanwhile, ICT regulation
has evolved globally over the past 10 years and has experienced steady transformation.37

Advances in technology are creating new social phenomena and business models that influence
every aspect of our personal and professional lives – and which challenge regulatory paradigms.
Recognizing the potential of emerging technologies and the impact that policy and regulatory
frameworks can have on their success, regulators should encourage a regulatory paradigm that
pushes boundaries and enables digital transformation.

An investment-friendly policy and regulatory framework is needed to support digital


transformation, which permeates all industries and impacts markets in all sectors.

ICT policy and regulatory frameworks need to be up to date, flexible, incentive-based and
market-driven to support digital transformation across sectors and across geographical regions.
Next-generation collaborative ICT regulatory measures and tools are the new frontier for
regulators and policy-makers as they work towards maximizing the opportunity afforded by
digital transformation.

The high speeds of optical fibre mean that Internet access is improving in households, with many
people in the same household able to use the available connection at the same time, free of
any stream-sharing constraints. High speeds over long distances will facilitate the development
of new offers (triple and quadruple play) and of the applications necessary for development,
namely teleworking and telemedicine. Fibre is a source of secondary income for the former
mobile (now combined) operators, who profit by selling off the surplus capacity of their optical
backhaul and backbone networks. Furthermore, in order to maximize fully the possibilities
offered by 5G, IoT, AI and big data, reliable fixed-broadband connectivity is essential.

At a time when broadband remains key to achieving the SDGs and the ITU Connect 2020
objectives, it is important to assist developing countries in raising the level of their fixed-
broadband deployment, in particular by establishing:

– an incentive-based regulatory framework to foster investment in fixed broadband;

36
ITU-D SG1 Document 1/32 from the BDT Focal Point for Question 1/1
37
ITU-D SG1 Document SG1RGQ/56+Annexes from the BDT Focal Point for Question 6/1

Output Report on ITU D Question 1/1 11


Strategies and policies for the deployment of broadband in developing countries

– an ICT infrastructure deployment plan in collaboration with stakeholders;


– lasting partnerships with the private sector and international organizations.38

The ICT ITU Regulatory Tracker tracks the transition of countries through five generations of
regulation. It covers the early stage of regulation, where a government acts as policy-maker,
regulator and sector player, progressing towards a fully competitive environment in which
regulators work with other sectors in harmonizing regulation across the entire ICT ecosystem
to ensure the systematic use of ICTs in key sectors like health, education and trade.

Countries in the first generation need to create an enabling environment for investment and
innovation in the broadband market. This includes liberalization of the sector, privatization of
State-owned national incumbent operators, and separation between policy, regulator and sector
operation functions, with a view to encouraging competition and foreign direct investment, and
promoting universal access, innovation, technology neutrality, content delivery and consumer
protection.

Most regulators in developed countries have already moved into the fifth generation, whereby
they promote collaborative regulation across the different sectors that oversee ICT-sector
development, including those involved in digital financial inclusion, competition, consumer
protection, data protection and legal services. However, no LDC has yet reached the fifth
generation and built the capability to partner, collaborate and share information in order to
address common challenges across sectors, including access, interoperability, security, privacy,
data integrity, trust, quality of service and pricing.

Seven design principles have been identified to respond to new technology paradigms and
business models stemming from collaborative regulation:39

i. To achieve digital transformation, policy and regulation should be more holistic: Cross-
sectoral collaboration along with revisited regulatory approaches, such as co-regulation
and self-regulation, can lead to new forms of collaborative regulation based on common
goals, such as social and economic good, and innovation.
ii. Policy and regulation should be consultation- and collaboration-based: In the same way
that digital cuts across economic sectors, markets and geographies, regulatory decision-
making should include the expectations, ideas and expertise of all market stakeholders,
market players, academia, civil society, consumer associations, data scientists, end users,
and relevant government agencies from different sectors.
iii. Policy and regulation should be evidence-based: Evidence matters for creating a sound
understanding of the issues at stake and identifying the options going forward as well as
their impact. Appropriate authoritative benchmarks and metrics can guide regulators in
rule-making and enforcement, enhancing the quality of regulatory decisions.
iv. Policy and regulation should be outcome-based: Regulators need to address the most
pressing issues, for example market barriers and enabling synergies. The rationale for any
regulatory response to new technologies should be grounded in the impact on consumers,
societies, market players and investment flows as well as on national development as a
whole.
v. Policy and regulation should be incentive-based: Collaborative regulation is driven by
leadership, incentive and reward. Regulators should keep a wide array of investment
incentives at hand to provide impetus for markets to innovate and transform while
maximizing benefits to consumers.

38
ITU-D SG1 Document SG1RGQ/28 from Côte d’Ivoire
39
ITU. Global Symposium for Regulators (GSR). Best Practice Guidelines: Fast forward digital connectivity for
all. GSR-19, Port Vila (Vanuatu), 9-12 July 2019.

12 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

vi. Policy and regulation should be adaptive, balanced and fit for purpose: Regulation-making
is about flexibility – continually improving, refining and adjusting regulatory practices.
The balance in regulatory treatment of new services is more delicate than ever. A close,
continuous link to markets and consumers is important to get digital on the right glidepath
to achieving social and economic goals.
vii. Policy and regulation should focus on building trust and engagement: Collaborative
regulation provides the space for co-creating win-win propositions, working towards
regulatory objectives while increasing the engagement of industry. Trust becomes the
foundation of the regulatory process, underpinning the growth of digital.

The five main clusters of benchmarks for regulators:40

i. Connectivity mapping: Tracking the deployment of the various kinds of digital infrastructure
can inform the regulatory process and allow regulators to identify market gaps and market
stakeholders – to turn them into opportunities for investment and growth.
ii. Metrics for market performance: Metrics allow regulators to assess the performance of
market segments for digital services against social and economic goals and identify priority
action areas for policy and regulation.
iii. Measuring regulatory maturity and levels of collaborative regulation: Regulatory benchmarks
pinpoint the status of advancement of policy and regulatory frameworks for digital markets.
They help track progress and identify trends and gaps in regulatory frameworks, making
the case for further regulatory reform towards achieving vibrant and inclusive digital
industries.
iv. Impact assessment: A combination of quantitative and qualitative econometric studies
based on reliable data can enable regulators to explore, understand and quantify how
digital technologies, market players or regulation can contribute economically to growing
the larger digital ecosystem and make it more inclusive.
v. Regulatory roadmaps based on established authoritative metrics: Roadmaps can guide
regulators towards achieving digital connectivity objectives in a faster and targeted way.

The past decade has seen considerable evolution of ICT regulatory frameworks. Large groups of
countries have aligned their regulatory approaches in key areas – often based on the successful
experiences of peers – and these have helped shape ICT regulation over the past decade.

1.3.1 Tackling market dominance and competition


To date, 180 countries have opened their mobile-broadband markets to competition and 122
countries have liberalized their international gateways. These regulatory changes have helped
amplify digital inclusion worldwide and have enabled the advent of digital platforms.

1.3.2 Spectrum reform unfolding


Spectrum reform has been ubiquitous, seeking to capitalize on spectrum as a means of achieving
economic policy goals in view since the advent of 2G communications. Along with maturing
3G and 4G technologies, regulators have introduced more scrutiny over mobile operators and
service providers. Some 47 regulators are now entrusted with an exclusive spectrum monitoring
and enforcement role. At the same time, regulators have also introduced flexible, adaptive
regulatory practices. Of note, 151 countries allowed band migration by the end of 2019, while 64
have introduced spectrum trading. At least 90 countries have reallocated their digital dividend
spectrum as a result of analogue-to-digital migration, of which almost 90 per cent has been

40
Ibid.

Output Report on ITU D Question 1/1 13


Strategies and policies for the deployment of broadband in developing countries

reallocated to mobile services. These developments have laid the groundwork for initial and
subsequent 5G launches, their infrastructure requirements and the services that flow over them.

1.3.3 The growing importance of quality of service and experience


A main factor driving the adoption of new technologies is quality of service (QoS) and experience
(QoE). If a service is unreliable, it will likely fail to become mainstream. Efficient regulatory tools
and broad regulatory mandates in the area of QoS and QoE have helped drive the success
of digital services. By the end of 2019, nearly 170 countries had introduced requirements for
QoS monitoring. In more than 155 countries, the ICT regulator is in charge of QoS obligation
measures and monitoring. Moreover, the QoS of mobile-broadband services is a make-or-break
condition for the introduction of digital services, from mobile money to e-health services.

1.3.4 VoIP
VoIP (voice over Internet Protocol) has been one of the most successful digital applications
to date. Several options exist for handling VoIP – but all have been on the same part of the
regulatory spectrum. Blocking the use of VoIP services on a permanent basis has proven neither
desirable nor completely enforceable. At the end of 2019, 160 countries allowed individual
users to use VoIP. Around 30 countries still ban VoIP – and most of these do not plan to allow
it in the foreseeable future.

1.3.5 Number portability


Mobile has become the main medium of communication for many consumers over the past 10
years. An important factor in enhancing mobile competition and reducing consumer prices has
been number portability. By the end of 2019, mobile number portability had been implemented
in 87 countries; and was required in 33 other countries, but had not been implemented.
Although fixed number portability is lagging behind mobile, nearly 60 countries have either
authorized or enforced it over the past decade.

1.3.6 Simplified and converged licensing regimes


Operating licences are key to buoyant digital markets, and leaving the door open to operators
and service providers has been effective in boosting competition and helping the establishment
of new business models. Over 119 countries had introduced unified licences or general
authorization regimes by the end of 2019. Looking for alternative and complementary solutions
for connectivity and service provision, some 58 new countries have introduced licence-exempt
regimes for spectrum since 2010. This has enabled the global take-up of public – and often
free – Wi-Fi systems, and will further pave the way for 5G.

1.3.7 Taxation of the digital economy: Steps to build on


Taxation of the digital economy is a challenge faced globally and various approaches are being
established. Governments should collaborate more closely on digital services taxation matters
at both regional and international levels.

– It is important to establish effective mechanisms for collaborative regulation, given that


taxation decisions fall to finance ministries and tax authorities rather than telecommunication/
ICT authorities – for example, working together with all parties before making decisions.

14 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

This could help in evaluating the possible distorting effects of each tax on the quality and
quantity of services, as well as the possible loss of welfare of the population.
– Governments should not compromise long-term, national economic benefits by targeting
short-term revenue.
– It is better to promote fiscal, parafiscal and other incentives to encourage operators and
service providers to reduce tariffs (this could include, for instance, the elimination of
customs duties on telecommunication/ICT equipment and terminals) rather than apply
excessive taxes.
– Governments should promote policies that:

i. encourage balanced and harmonized taxes;


ii. avoid excessive burden to all stakeholders;
iii. promote both innovation and effective competition among all sector players in the
digital ecosystem;
iv. consider affordability as a priority.

1.3.8 Infrastructure sharing


Infrastructure sharing and open access have been key elements of most strategies to promote
affordable broadband access,41 and several countries have introduced regulation permitting
infrastructure sharing for mobile operators over the past decade. With IoT on the horizon,
sharing practices will multiply, from passive to active to spectrum sharing, and will involve a
wide array of technologies and regulatory practices.

1.3.9 Regulatory process is opening up


Regulatory processes have themselves become more open and collaborative. Collaborative
regulation has been steadily gaining momentum, federating peer regulators from across the
industry, in addition to market players’ cycle of successful regulatory reform, which is likely to
perpetuate itself on the back of the growth of new technologies and the social and economic
phenomena they engender.

Driven by new market dynamics and social expectation, ICT regulators have begun to consult
with market players and broader ecosystem stakeholders. Public consultations prior to major
decisions have now become mandatory in more than 150 countries over the past decade.

1.4 Trends in international connectivity in developing countries


With the explosive growth in the use of broadband, the bandwidth demands of users have
increased tremendously, resulting in soaring international capacity requirements. In 2014, it was
estimated that international capacity use was growing at about 44 per cent annually. Reflecting
greater pent-up demand, the fastest growth rates occurred in emerging markets, where Africa,
Asia and the Middle East have registered annual growth of about 50 per cent between 2010
and 2014.42

41
Document 1/447 from Montenegro
42
ITU. ITU-D. Regulatory and Market Environment. Maximizing availability of international connectivity in
developing countries: Strategies to ensure global digital inclusion. Geneva, 2016.

Output Report on ITU D Question 1/1 15


Strategies and policies for the deployment of broadband in developing countries

Prices for international capacity vary widely by region due to differences in available supply,
levels of competition and cost of the underlying infrastructure. On large-volume submarine-
cable routes, wholesale capacity is usually priced in 10 Gbit/s wavelengths and prices can vary
considerably depending on the route. The very low costs for transit capacity at the global hubs
highlight the need for developing countries to establish their own regional traffic consolidation
points.

Factors having an impact on international Internet connectivity:

– Uptake of broadband and telephony among the local population: In countries where access
to broadband is unaffordable for many, or there are other basic constraints, such as limited
electricity, the need for international capacity will be correspondingly lower.
– A country’s role in providing international capacity to neighbouring States: Some countries
carry international traffic for their neighbours, most often because of the downstream

i. availability of local applications and content;


ii. level of interconnection between local networks;
iii. degree of language isolation of the country;
iv. level of international content blocking.

Barriers to international connectivity:

– International connectivity projects can be subject to delays


– High cost of cross connects
– Challenges to open-access/equal-access models
– Landing station fees and local ownership requirements.

1.5 Trends in capacity building and supporting decisions in the process


of broadband deployment
The rapid growth in demand for new infocommunication services, as well as an increase in the
volume of information exchange, are pushing telecommunication operators to update their
networks regularly.43

The choice of a specific architectural model for building a network is a non-trivial task that is
usually based on one of the following approaches:

– Evaluation of current trends and analysis of best practices


– Expert assessment considering the current situation
– Simulation for the purpose of economic feasibility assessment.

All these approaches have their own advantages and disadvantages. For example, the simplicity
of the evaluation of current trends can lead to choosing some solutions that are not adapted
to concrete realities. And expert assessments can be burdened with a high level of subjectivity
and, sometimes, lack of economic evaluation.

As a rule to solving this problem, a technical-economic justification – based on simulation – is


developed, accompanied by a consistent evaluation of the cost of building an access network.
After comparing economic and technical characteristics, a forward-looking solution can be

43
ITU-D SG1 Document 1/42 from A.S. Popov Odessa National Academy of Telecommunications (ONAT)
(Ukraine)

16 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

reached, which is then taken as the basis for further detailed design and construction of the
network.

Obviously, the development of such a technical-economic justification often requires


considerable time and funds. As a result, network designers worldwide are trying to automate
these processes by creating different techniques and tools that can be used as an expert system
in the field of developing broadband networks.

ITU has published the ICT infrastructure business planning toolkit.44 Inspired by practical
experience in implementation, this new toolkit offers regulators and policy-makers a clear
and practical methodology to deliver accurate economic evaluation of proposed broadband
infrastructure installation and deployment plans.

The toolkit intends to:

– Serve as a practical manual for regulators and policy-makers working towards extending
broadband network deployment and access
– Address key elements for a successful business planning implementation for ICT
infrastructure development
– Present and explain best practices on infrastructure installation and deployment plans as
well as its economic feasibility assessment to support decision-making
– Provide quantitative examples of the most common projects, such as the construction of
optical fibre backbones, wireless broadband networks (including 4G), and fibre-to-the-
home (FTTH) access network projects.45

The ITU Last-Mile Internet Connectivity Toolkit46 is an effort to support Member States in
selecting sustainable connectivity solutions. The toolkit provides guidelines and software tools
to support members in closing the connectivity gap. The toolkit aims to support Member
States in designing, planning and implementing last-mile connectivity solutions. These include
identifying unconnected areas and selecting sustainable technical, financial and regulatory
solutions to ensure affordability and accessibility of relevant connectivity services. The toolkit
consolidates existing resources towards making available foundations that are a requirement
for providing and scaling connectivity to the last mile.47

1.5.1 Broadband deployment and digital equity capacity building for State
and local stakeholders
As at 2019, 22 million Americans lacked access to affordable, reliable, modern high-speed
broadband capability, of which 15 million, or 73 per cent, live in rural areas. The National
Telecommunications and Information Administration (NTIA) “BroadbandUSA” programme is
spearheading the U.S. Administration’s efforts to use all available tools to educate, convene
and assist broadband stakeholders to improve connectivity. This includes rural homes, farms,
small businesses, manufacturing sites, tribal communities, transportation systems, healthcare
facilities, and educational institutions.

44
ITU. Thematic reports. ICT infrastructure business planning toolkit. Geneva, 2019.
45
ITU-D SG1 Document 1/394 from the BDT Focal Points for Question 1/1 and Question 4/1
46
ITU. The Last-Mile Internet Connectivity Toolkit: Solutions to Connect the Unconnected in Developing
Countries. Draft – 20 January 2020.
47
ITU-D SG1 Document 1/362+Annexes from BDT

Output Report on ITU D Question 1/1 17


Strategies and policies for the deployment of broadband in developing countries

BroadbandUSA serves as a strategic adviser to communities that want to expand their


broadband capacity and promote digital inclusion. The team brings stakeholders together to
solve problems, contribute to emerging policies, link communities to other federal agencies
and funding sources, and address barriers to collaboration across agencies. Each community
is unique, so no “one-size-fits-all” approach will work.

Some lessons learned could be considered:

– Engage local stakeholders. Include stakeholders, from local schools and libraries to
chambers of commerce, local government agencies and local Internet service providers
(ISPs).
– Encourage public-private partnerships. Rural communities confront significantly higher
deployment costs due to low population density, lengthier middle-mile networks or
challenging terrain. A partnership can address such economic challenges through sharing
capital costs, thereby enhancing revenue potential.
– One size does not fit all. Each community is unique, so a technology solution or partnership
that works for one rural community will not work for all.
– Create, centralize and share information widely. Creating a one-stop shop for broadband
information makes it easier for rural communities to find resources they need.48

1.5.2 United States rural broadband network planning and capacity-building


workshops
The Rural Broadband Workshops were co-designed to build field capacity in broadband
planning in order to help develop local broadband teams, and to improve the pipeline of grant
and loan applications. The workshops’ short goal was to inspire, inform and act.

The audience for each workshop included: City mayors, city managers, council; technical leaders,
CIOs, CTOs; educational leaders, school CIOs, directors; ISPs, service providers; economic
development leaders, chambers; librarians; non-profit partners; local business leaders; and
citizens.

Some lessons learned could be considered:

Let community priorities drive the process. For example, if the priority is on fire safety, then
you will need the forest service and fire department and road department in your outreach
team; if your priority is education, you will need teachers, students, librarians, businesses and
philanthropists.

Encourage deep community engagement and outreach. Successful projects bring together a
range of stakeholders from the community, such as governments, industry, and academia to
improve health, education, job opportunities and transportation, among other goals.

Demonstrate broadband applications in practice and invite local leaders to describe benefits.
People want to learn from their peers. Keeping it local makes it real and relatable.

Use a regional multi-states approach. To make project economics work, sometimes projects
need to include neighbours or partners. Regional projects can provide stronger economies of
scale and create new opportunities to share resources and drive innovation.

48
ITU-D SG1 Document SG1RGQ/347 from the United States

18 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Leverage federal data and empower local users to add their own wisdom. Explain the data,
making them local and easy to visualize and use. This provides context to better understand
and interpret the data.

Cultivate win-win partnerships. Formal or informal, through contracts or not, core to these
partnerships is always that roles are clear and that all parties feel that they benefit from the
agreements.

Leverage local assets. The core to any community-based planning process is a solid assessment
of assets and gaps. This should include an asset inventory and detailed information on public
rights-of-way.

Articulate a broadband vision. Some call it a vision, some call it an “elevator pitch”.

Urge partners that they must plan beyond the event.49

1.5.3 Women, ICTs and development


The constantly changing ICT landscape continues to revolutionize and transform how people
live and work. To promote women’s empowerment and gender equality, women and girls must
have access to and an understanding of these technologies. ICTs offer women opportunities
to build and strengthen their businesses and become more effective citizens and leaders.
However, the gender digital divide in literacy, access, skills, resources and other factors has
excluded women from opportunities and benefits that ICTs offer. Gender equality is essential
to achieve sustainable development and ensure that no one is left behind. However, the world
remains far from achieving gender equity in ICTs. For this reason, it is necessary that efforts to
use ICTs to enable women and girls’ development continue and grow until a digital divide no
longer exists.50

1.5.4 ITU spectrum management training programme


In 2016, the African Advanced Level Telecommunications Institute (AFRALTI) entered a
partnership with ITU to deliver the Spectrum Management training programme (SMTP) to its
members and other entities regionally.51 In this period, AFRALTI also began the accreditation
process to offer the SMTP as a Masters’ programme. In addition, the plan is to have an annual
Spectrum Monitoring Masterclass included as part of the SMTP. This is a face-to-face initiative
that will empower students with practical aspects of spectrum management.

1.5.5 Case studies and resources for ICTs and accessibility


The aim of the GSMA Assistive Tech programme is to drive greater access to and use of mobile
technologies for persons with disabilities in emerging markets and to maximize opportunities for
social and economic inclusion.52 The following is a list of reports published by GSMA:
– Understanding the mobile disability gap
– How mobile operators are driving inclusion of persons with disabilities
– Bridging the mobile disability gap in refugee settings

49
ITU-D SG1 Document SG1RGQ/348 from the United States
50
ITU-D SG1 Document SG1RGQ/187 from the United States
51
ITU-D SG1 Document SG1RGQ/64+Annex from the African Advanced Level Telecommunications Institute
(AFRALTI) (Kenya)
52
ITU-D SG1 Document 1/385 from GSMA

Output Report on ITU D Question 1/1 19


Strategies and policies for the deployment of broadband in developing countries

Chapter 2 − Strategies, policies


and regulations for broadband,
including financing mechanisms

The goal of every jurisdiction is that broadband deployment is done in a timely manner,
contributes its fair share to the economy and that the industry is competitive in providing
affordable and high-quality broadband services. Many citizens in various jurisdictions across
the globe lack access to high-speed broadband service. This is particularly true for rural and
low-income communities.

It has been noted in some cases that broadband availability does not necessarily mean an
increase in subscribers to the services. Although broadband deployments and new broadband
subscriptions continue to grow, the rate of growth in urban and high-income areas outpaces
rural and low-income areas by a big margin. This may be due to low literacy levels, availability of
relevant local content, price of broadband service, poor electricity connections and poor road
networks, among other aspects.53 Policies and regulatory interventions therefore need to look
at these and other relevant areas to promote deployment of broadband.

2.1 Broadband policies54


The ICT sector has seen rapid developments in recent years, with market liberalization and
privatization contributing to healthier competition and increased private-sector investment. To
keep this growth going and ensure that the world population continues to enjoy the benefits
of broadband, there is a need to strengthen the current policy and regulatory environments to
make them more transparent and supportive of greater investment in the sector.

The aim of an effective policy should be to motivate maximum broadband coverage, ensure
safety and high quality of broadband service, improve the digital literacy of the population and
inspire rich content and applications to shore up demand for the service.

Several countries have come up with effective national broadband policies in various stages of
implementation. There are nevertheless opportunities for jurisdictions to enact a wide range
of regulatory reforms to create enabling environments for broadband deployment and use.

When establishing policies, it is important to consider a number of factors that are key in defining
the success of intended initiatives. Such factors may include differences and the specifics of
building national telecommunication networks; geographic and climatic features that affect the
possibilities for ICT development; the level of investment attractiveness of national economies
in terms of stimulating investment in the development of ICTs; the degree of influence of State
regulation on the development of the ICT market; and peculiarities of public administration in

53
ITU-D SG1 Document 1/279 from Sudan
54
Based on the ITU Telecommunications Regulation Handbook. International Bank for Reconstruction and
Development (IBRD), World Bank, InfoDev and ITU, April 2011.

20 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

the field of ICT, among others. It is also important to undertake relevant studies on trends in a
country and internationally to be able to develop and implement the right policies.55

Some of the policies that have been implemented successfully elsewhere are highlighted below
for consideration in broadband policy decision-making.

2.1.1 Create demand for broadband56


Broadband development is driven by demand for broadband services. Investors are normally
attracted to areas where they can make a return on their investment. Therefore, there is a
need to shore up demand for broadband services for infrastructure deployment to make
business sense.57 The following are various ways in which policy-makers can increase demand
for broadband services, especially in developing countries:

i. Digital literacy programmes

As a matter of policy, digital literacy programmes should be integrated into the basic education
system, tertiary and university institutions. Education systems should also focus on inculcating
a culture of innovation to solve local issues through technology.

One way of financing training and awareness is by mandating service providers to undertake
the activities on their own with approval of the regulator. The regulator may also indicate the
minimum amount to be spent on such activities.

ii. Development of local content and applications

A major hindrance to the uptake of broadband in several jurisdictions is the lack of sufficient
and relevant local digital content and applications. There is a need to develop an innovation
framework to stimulate creation of applications and content for the local population to encourage
broadband subscriptions.

iii. Availability of affordable devices

Devices are useful in accessing broadband services whether in offices, homes or on the go.
Provision of incentives including tax breaks, streamlined licensing processes, provision of land
to encourage local manufacture/assembly, and import of parts could go a long way in making
devices available for the masses.

iv. Digitization of government records

Government is the largest source of data for any country, on which all citizens depend for
critical services. Digitizing government records has the desirable effect of encouraging citizens
to undertake literacy programmes, buy digital devices and ultimately subscribe to broadband
services to be able to access government records and services.

55
ITU-D SG1 Document SG1RGQ/363 from ONAT (Ukraine)
56
ITU-D SG1 Document 1/28 from Burundi
57
ITU-D SG1 Document 1/279 from Sudan

Output Report on ITU D Question 1/1 21


Strategies and policies for the deployment of broadband in developing countries

2.1.2 Protect intellectual property rights


To encourage innovators, governments should put in place measures to protect their intellectual
property.58

2.1.3 Review of tax policies and regulatory fees59


Deployment of broadband infrastructure requires heavy investment in equipment and civil-
engineering works. Entities involved in deployment may be subject to taxes on acquisition of
materials and equipment and on services provided during deployment. These taxes unfortunately
increase the costs of deploying broadband infrastructure and reduce available capital. Taxes
and regulatory fees therefore tend to discourage investors from venturing into broadband
deployment. A review of tax and regulatory fee frameworks is necessary to incentivize the
private sector to venture into underserved regions, more especially in low-income areas with
a low return on investment.

2.1.4 Simplifying wayleave access60


When an operator wishes to lay infrastructure over or under privately owned land, they are
required to first obtain the right to do so from the property owner. An operator is required to
enter into an agreement with the property owner to grant the right of access to private property.
Because operators must first negotiate wayleaves and ultimately pay for them, this represents
a potential barrier to the timely deployment of broadband infrastructure. There is also the
possibility that the negotiating parties may not reach an agreement, thereby denying other
deserving citizens the necessary access to broadband services.

In the light of the role played by wayleaves, there is a need for governments to develop polices
to provide for different access rights, wayleave regimes and wayleave pricing regimes where
necessary. This could include:

i. Requiring provision for telecommunication/ICT networks and infrastructure in any


infrastructure projects pertaining to transport, electricity and water distribution, and in
State civil-engineering works.
ii. Requiring that property developers provide broadband telecommunication infrastructure
in buildings.
iii. Non-refusal for any operators or service providers wishing to install broadband
telecommunication infrastructure in a property at their own expense with a view to
providing connectivity for occupants.

2.1.5 Encourage public-private partnerships


There are competing priorities for limited governmental resources – some more urgent
compared to broadband deployment, such as health, food and housing. In order to ensure
timely deployment of broadband, there is a need for strong government commitment and
extensive collaboration with the industry to ensure its success.61 Public-private partnerships
(PPPs) can be an effective mechanism to facilitate co-investment from different stakeholders and

58
ITU-D SG1 Document SG1RGQ/165 from Côte d’Ivoire
59
ITU-D SG1 Document SG1RGQ/TD/1 from Malawi
60
ITU-D SG1 Document SG1RGQ/28. from Côte d’Ivoire
61
ITU-D SG1 Document SG1RGQ/TD/1 from Malawi

22 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

support the extension of network coverage in areas that otherwise represent risky investments
with limited commercial potential. PPPs can also leverage public and private synergies to deploy
and operate network infrastructure in areas that otherwise do not have sufficient economic
potential to attract private investment.62

PPPs can take the following forms:

i. Private sector-led partnerships – A private entity owns and operates the network while
government institutions support the venture through regulatory support, planning and
monetary contributions.
ii. Government-led partnerships with private-sector support – The public-sector entity has
the lead and owns the network. Under this arrangement, the private partners construct,
operate and maintain the infrastructure in exchange for financial gains on the one hand
and, on the other, deliver services on the laid infrastructure.
iii. Joint-ownership partnerships – In this arrangement, the private and public entities jointly
invest in the network infrastructure and share capacity.

PPPs come with a number of advantages, including high-quality infrastructure solutions,


increased access to innovative designs and financing approaches. The private entity can act as
a check against unrealistic government expectations, among other benefits.

PPPs should be considered after exhausting all other enabling policy and regulatory measures
to maximize coverage through market-driven mechanisms.

2.1.6 Invest in the latest innovative technology


This is particularly important in developing countries where infrastructure is not likely to be fully
developed. Investment in the latest technologies ensures that the population is able to take
advantage of benefits that accrue to it, including higher speeds, high efficiency and improved
performance, and low costs, among others.

2.1.7 Promote development and use of local Internet exchange points


One of the reasons for slow and costly Internet connections, especially in the developing world,
is the routing of local traffic via servers located thousands of miles from the local users.Efficient
IXPs are key to lowering the overall cost of broadband, more especially in developing countries
whose content tends to be international, resulting in large capital outflows. Caches across the
network can help ISPs to offer popular content on the network by storing web content and
serving it from a local network, thereby saving bandwidth while delivering faster web access to
end users.63 This calls for the implementation of national data traffic exchange centres,64 local
and regional IXPs to enable Internet service providers and network operators to effectively
route local traffic within their networks, thereby improving the quality and reducing the overall
cost of broadband services.

2.1.8 Encourage piloting


As broadband deployment projects are capital-intensive, this could lead to massive losses in the
event of poor project management decisions. It is advisable that, before embarking on full-scale

62
ITU-D SG1 Document 1/391 from GSMA
63
ITU-D SG1 Document SG1RGQ/210 from the Republic of Korea
64
ITU-D SG1 Document 1/80 from the Iran University of Science and Technology (Islamic Republic of Iran)

Output Report on ITU D Question 1/1 23


Strategies and policies for the deployment of broadband in developing countries

deployment, the management undertake a pilot phase that should ordinarily be exempt from
the mandatory bidding process for selection of service providers. This will allow some focus on
qualitative, collaborative aspects of such innovative projects.65

2.1.9 Categorizing broadband infrastructure as critical infrastructure


One major challenge to broadband infrastructure deployment in developing countries is
insecurity from theft and vandalism. To encourage investments, governments should categorize
broadband infrastructure as critical infrastructure and provide the necessary security including
measures to curb cybercrime.66

2.1.10 Other policies


Other relevant polices include:

i. Providing access to government rights of way, easing access to construction permits,


easements and access to government vertical assets, such as buildings and towers.
ii. Requiring that all public infrastructure projects, such as water, bridges, roads and power
grids make provision for broadband facilities.
iii. Establishing policies that promote open-access public network models that are open to
operator interconnections at national, State or municipal levels.

2.2 Regulatory interventions


Some of the regulatory interventions that can be implemented include:

2.2.1 Responsive regulatory frameworks


Industry challenges can be handled better if the same participants are allowed to participate in
policy formulation and implementation.67 There is a need to create a platform where industry
players can voice their opinions on regulatory policies affecting the deployment of broadband.
The platforms can also provide an opportunity for players to share information on roll-out so
as to avoid duplication of efforts. In order to support rapid adoption of new technologies,
jurisdictions should adopt technology-neutral regulatory frameworks that allow operators to
explore the available options in the provision of services.68

The regulatory framework should be responsive to the needs of new and alternative carrier
entrants to the market. Regulations should allow new entrants to deploy broadband infrastructure
in direct competition with the incumbents. Incumbent telecommunication operators should
also be accorded the same treatment; with favourable government regulatory and financing
assistance, telecommunication service providers will be able to deploy broadband infrastructure
with ease.

Licensing regimes should provide timed targets for operators to deploy infrastructure to
serve uncovered areas.69,70Failure to meet licence coverage obligations should result in some

65
ITU-D SG1 Document SG1RGQ/32+Annex from India
66
ITU-D SG1 Document SG1RGQ/167 from Burundi
67
ITU-D SG1 Document SG1RGQ/195 from Brazil
68
ITU-D SG1 Document SG1RGQ/28 from Côte d’Ivoire
69
ITU-D SG1 Document SG1RGQ/176 from Kyrgyzstan
70
ITU-D SG1 Document SG1RGQ/320 from ESOA

24 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

enforcement action, e.g. penalties, loss of licence. In the light of these requirements, the
regulator should receive deployment plans from operators on a regular basis and then evaluate
and approve coverage schedules for broadband deployment. Such an arrangement allows
governments to guarantee coverage for remote and sparsely populated rural areas, where the
building and operation of base stations for the provision of telecommunication services to the
local population is not economically viable for operators.

Regulatory regimes should be able to encourage timely deployment of broadband by


eliminating impediments that unnecessarily add delays and costs to bringing advanced wireless
services to the public.71

Actions to improve the deployment environment could include:

– streamlining the wireless infrastructure review process;


– addressing the conduct of states and local governments that needlessly slow down
deployments and increase the costs of wireless infrastructure deployments;
– modernizing preservation and environmental regulations for wireless deployments.

Additional regulatory approaches could include use of a more granular approach to licensing,
such as licence exemptions for private networks and non-profit organizations, creating specific
licences for community networks or fitted within existing exemptions that encourage a simple
authorization or notification system for small operators and those serving unconnected
populations.72

2.2.2 Competitive markets


According to an ITU survey, the market growth seen in nearly 80 per cent of Member States was
possible due to the competitive nature of those markets. It is therefore important for jurisdictions
to evaluate whether present laws and regulatory interventions meant to ensure that markets are
competitive actually meet their purpose, or, conversely, whether such policies and regulatory
interventions have become overly burdensome and only serve to discourage investment in,
and deployment of, broadband services.

Policies that promote private investment and competition will ensure that broadband networks
will be responsive to market signals and societal needs. 73,74This includes the adoption of
technology-neutral rules, which will spur additional competition. They will provide upgrade
quality continually and will also advance models of governance and regulation that support an
open, interoperable, secure and reliable Internet.

2.2.3 Allocation of spectrum resources


Sufficient allocation of spectrum resources is necessary for sustained broadband deployment.
Additional spectrum allocation in support of emerging industries and technologies will go a
long way in promoting timely deployments. There is a need for jurisdictions to be aggressive
in pushing spectrum into the commercial marketplace by adopting market-based strategies to
support broadband deployment. The allocation and assignment of spectrum should, as much

71
ITU-D SG1 Document SG1RGQ/328(Rev.1) from the United States
72
ITU-D SG1 Document SG1RGQ/385+Annex from the Association for Progressive Communications (APC)
73
ITU-D SG1 Document SG1RGQ/194 from the United States
74
ITU-D SG1 Document SG1RGQ/320 from ESOA

Output Report on ITU D Question 1/1 25


Strategies and policies for the deployment of broadband in developing countries

as possible, be undertaken using a flexible licensing approach – i.e. an open and transparent
rule-making process – to receive input from all interested parties and adopt technology-neutral
rules to accommodate a variety of technologies and business plans.75

Spectrum regulations should also allow for re-farming of spectrum to implement the latest
technologies and quick incorporation of changes of spectrum allocations in the national
frequency band plan based on the outcomes of every world radiocommunication conference
(WRC).76

Additional spectrum measures for consideration include:77

– Ensuring spectrum is available for the deployment of multiple technologies


– Setting aside IMT spectrum for rural connectivity
– Establishing use-it-or-share-it mechanisms for IMT licence
– Implementing dynamic spectrum-sharing regulation and light licensing regulation for
microwave.

2.2.4 Development and implementation infrastructure co-deployment and


sharing guidelines78
Many operators prefer to invest in their own infrastructure, a costly exercise that few can
comfortably manage. This is despite the availability of underutilized resources from other
operators and players in the market. The result is high cost of services, environmental degradation
due to multiple deployments, poor quality services and low investment in rural and low-income
areas.79 Co-deployment and sharing of infrastructure result in regulatory and economic benefits
for all parties involved. This is especially true when the following principles are used during the
planning, construction and operation of infrastructure networks of different industries:

– Minimize duplication of infrastructure facilities on the same routes


– Minimize environmental impact
– Establish long-term strategic planning for the development of infrastructure networks,
taking into account the convergence of technologies and partnerships between the parties
involved
– Minimize economic costs during construction
– Offer open access to narrow the digital divide.

Infrastructure sharing can be broadly categorized into two types:

1. Passive sharing, which is the sharing of non-electronic infrastructure, such as power, sites,
towers, shelters, poles, ducts, equipment rooms, and security.
2. Active sharing, which entails sharing electronic infrastructure, such as the access or core
network.

Policies should be put in place to encourage deeper sharing arrangements, including spectrum
sharing. 80The guidelines should prohibit the deployment of an infrastructure where one already
exists. This will encourage investors to use the funds in deploying the much-needed infrastructure

75
ITU-D SG1 Document SG1RGQ/328(Rev.1) from the United States
76
ITU-D SG1 Document SG1RGQ/92 from Namibia
77
ITU-D SG1 Document SG1RGQ/385+Annex from the Association for Progressive Communications (APC)
78
ITU-D SG1 Document 1/241 from China,
79
ITU SG1 Document 1/275 from ONAT (Ukraine)
80
ITU-D SG1 Document 1/222 from Mali

26 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

in unserved and underserved areas. To make it effective, there is a need to regulate the price
at which this infrastructure is made available and to ensure that standards are maintained to
promote a competitive and cost-effective environment.

Co-deployment and sharing therefore ensure fair competition in the telecommunication market,
encouraging operators to focus more on improving the quality of products and services.
Infrastructure sharing has many advantages, including cost savings in equipment costs, reduced
licence fees, and risk sharing in low population density areas. This enables entities to pool
spectrum to increase efficiency and reduce spectrum costs, encourages new entrants and,
ultimately, expedites faster deployment time-frames.

2.2.5 Price regulation


In order to encourage demand for broadband, regulators could consider replacing minimum
price regulation with maximum price regulation. A minimum price regulation in general leads
to increase in supply but a decrease in demand as consumers face higher prices.81

2.2.6 Other regulations


Other regulations that should be considered include data protection, net-neutrality, copyright
laws, local and regional IXPs, among others.

2.3 Deployment strategies


Some of the strategies that should be considered include:

2.3.1 Development and implementation of formal broadband plans


Broadband deployments are easily realized when nations, states and local governments
create and adopt formalized broadband plans. Plans are effective in assessing and addressing
broadband needs, stimulating action on broadband issues, developing necessary goals and
achieving actual results.

Some of the basic objectives of the national broadband plans include making broadband
Internet accessible to all citizens, encouraging production of local content, digitalizing public
services, encouraging new players, developing digital literacy of the populace and establishing
digital security and confidence to create the conditions necessary to build the confidence of
citizens and businesses in the use of digital technology.82

Broadband plans are a practical and operational planning tool that can help countries bridge
the digital divide in terms of access to high-speed and reliable broadband. The process of
developing a broadband plan may include diagnosis of the current national infrastructure and
market as well as an overview of the regulatory framework governing the sector, the target
situation in regard to the digital network, analyses of the way forward to reach that target,
and proposals for operationalizing the roadmap through an action plan and implementation
strategy.83

81
ITU-D SG1 Document SG1RGQ/210 from the Republic of Korea
82
ITU-D SG1 DocumentSG1RGQ/TD/9 from Mali
83
ITU-D SG1 Document SG1RGQ/178 from Burkina Faso.

Output Report on ITU D Question 1/1 27


Strategies and policies for the deployment of broadband in developing countries

2.3.2 Encourage sharing of deployment plans


One of the biggest obstacles to the co-deployment and co-sharing of infrastructure is the lack of
coordination in intersectoral, national and international government policies regarding access to
infrastructure, including between regulators of various industries regarding large infrastructure
projects that are under implementation. By a fortunate coincidence, the cost of building fibre-
optic cable lines (FOCL) can be optimized using the infrastructure of other industries, such as
transport and energy, thanks to co-deployment and co-sharing.84

Sharing deployment plans between operators and the public entity on a regular basis should
be encouraged as an input into infrastructure deployment plans. This will ensure effective
utilization of available infrastructure development resources and minimize unnecessary multiple
deployments.85

2.3.3 Government funding to connect government institutions


Government institutions such as hospitals, schools and libraries can be used as anchor tenants
to extend broadband infrastructure across the country. Connectivity to these institutions can be
introduced through direct government investment, universal service funds, loan guarantees,
grants, and tax incentives.86 In this way, the infrastructure built to serve these institutions can
also be made available to others in the community at a cost through private providers.

One such initiative is the development of community telecentres, which includes Internet
connectivity and computer equipment in public utilities for use by residents to provide various
services, such as telemedicine, teleworking, e-agriculture, e-tourism, e-governance, distance
learning, and e-commerce.87 One major consideration for such rural projects is the technology
to be used, which should be reliable and cost effective.

As best practice, provision of broadband to government institutions should not be limited to


public providers only. Eliminating such critical mass customers from the market will only serve
to discourage private-sector investment.

2.3.4 Direct government investment


Government investment could be in the following forms:

i. Development of national government backbone infrastructure

With the ever-increasing digital divide between urban and rural areas, governments can
invest directly in the deployment of national backbone infrastructure to bridge the gap. This
infrastructure could be utilized to provide connectivity to public institutions and the sale of
excess capacity to private operators for last-mile connectivity.

84
ITU SG1 Document 1/275 from ONAT (Ukraine)
85
ITU-D SG1 Document SG1RGQ/28 from Côte d’Ivoire
86
ITU-D SG1 Document 1/28 from Burundi
87
ITU-D SG1 Document 1/125 (Rev.1) from Cameroon

28 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

ii. Power company-owned networks

In the last century, strategies were implemented to extend electric power grids to rural areas
across the globe. These power grids already have wayleave rights and offer towers, poles and
conduit access into nearly all homes and businesses in their area of operation, complete with
existing systems and staff. Policies should be put in place to encourage collaboration of power
companies with private telecommunication operators and governments to extend broadband
infrastructure. With their support, power companies could offer the best solution in extending
coverage to rural areas.

iii. Municipal networks

Municipal networks are built and owned by municipalities/cities.

iv. Broadband deployment in underserved and unserved areas

When deploying broadband infrastructure for underserved and unserved areas, financially
viable and sustainable investment decisions should be made.88 But if commercially sound and
sustainable investment and service operation do not hold, in other words market failure occurs,
then the government should play an active role in assisting the unserved and underserved
areas, and not leave them behind. Thus, although the market is the key factor for broadband
investment, the government needs to intervene in facilitating broadband connectivity in areas
where a market failure occurs. For the unserved and underserved areas where the operators do
not provide services voluntarily, government action should be warranted to expand broadband
infrastructure for the coverage of those areas, including policy measures to provide specific
assistance and to lower the costs of deployment. In other words, the government should finance
networks for unserved and underserved areas and establish incentives when the market alone is
not able to serve them.89 This should be accomplished on a technology-neutral basis, considering
reliability and total cost of ownership aspects associated with broadband deployment.

In order to achieve universal service, there is a need to support the use of broadband services
in low-income areas, which would allow the poor to pay very low fees, and even enjoy mobile
Internet access for free. For people in poverty, a special discount package can be included in
mobile products and broadband. Some of the areas where governments can deploy broadband
for the good of a majority include establishing telecentres, Wi-Fi access in public places and
upgrading mobile network infrastructure to provide broadband access.90

2.3.5 Establishment of community networks91


Often, commercial ISPs do not see a viable business model for deploying affordable broadband
to some areas due to factors such as low population density, average income per household,
and difficult terrain that often lead to little return on investment. To fill these gaps in connectivity,
communities can deploy self-sustaining networks to complement commercial providers.
Community networks are therefore an important part of connectivity ecosystems, helping

88
ITU-D SG1 Document SG1RGQ/210 from the Republic of Korea.
89
ITU-D SG1 Document SG1RGQ/320 ESOA
90
ITU-D SG1 Document 1/375
91
ITU-D SG1 Document SG1RGQ/338 from the Internet Society (ISOC)

Output Report on ITU D Question 1/1 29


Strategies and policies for the deployment of broadband in developing countries

connect the unconnected in an affordable manner. In addition, community networks help


bring digital skills and tools to rural, remote and underserved areas.

The logistics and administration of community networks are less expensive because of their
scale and local nature. These factors make community networks sustainable from an economic
perspective. In addition, community networks are environmentally sustainable as they frequently
make use of renewable energy, such as solar and wind power. However, these networks face a
number of challenges, including access to funding mechanisms, access to appropriate licensing/
authorization frameworks and access to necessary electromagnetic spectrum and infrastructure.

On the regulatory front, governments should consider creating enabling regulations and policies
to specifically address not-for-profit operators and small-scale operators. This could include
creating licence-exemption provisions or free and light licensing for local communities with
easy-to-understand applications and low- or no-cost application and renewal fees. Streamlining
onerous regulatory obligations, such as annual reporting requirements, would reduce undue
burdens.

Governments should also review traditional licensing policies that grant exclusive use instead
of shared use of portions of spectrum over large geographic areas. This can lead to large
portions of spectrum being unused or underutilized, and exclude community networks that
could otherwise connect these areas.

Implementation of innovative funding avenues is key to the success of these networks. This
includes crowdsourcing, revenue-sharing models, subscription fees, private grants and funding
from governments. While these networks have fewer start-up costs than other approaches to
connectivity, access to government funding can be a significant help to their success and goes
a long way, since they are often launched in low population density areas and in low-income
communities. Often, funds are only needed to help launch a community network until they
reach a point of economic balance and scale.

2.4 Financing mechanisms


There are two important financial aspects that determine the success or failure of broadband
projects: the financial investment model and the financing model.

The investment model considers all revenue streams and the capital and operating expenses
related to the project. More importantly, it determines the business viability of the project by
measuring the internal rate-of-return (IRR) and net present value (NPV). This is indeed paramount
to ensuring that the goal of sustainability of capital-intensive projects is achieved.

On the other hand, when coming up with a suitable approach to fund investment, it is important
to consider their suitability to the geography and market in question in addition to the project’s
reliance on equity, debt or public funds. Due diligence should be undertaken when settling on
a financing structure, as it normally imposes stress on the fund providers and ultimately has an
effect on the viability of the project.

Financing broadband deployment can be an expensive affair, more especially for landlocked
countries. One way of financing deployments is by putting in place a regional initiative with
Member States/jurisdictions contributing to the project. Undertaking cross-country projects not
only keeps down the costs, but also reduces the challenges associated with getting regulatory

30 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

approvals.92 Broadband financing sources that can be exploited include auctions, conduct
adjustment declarations, universalization funds, tax relief and concession contracts.93

The following funding mechanisms can be considered:94

2.4.1 Public-utility model


Under this model, the government can fund broadband deployment through allocations from
the universal service fund (USF) (as is the case of Argentina, Japan, Republic of Korea, United
Kingdom and France), low-interest rate loans from development banks, and national grants.

This business model can take several forms including:

i. National open-access network: In this model, the assets of private operators are purchased
by the government with the option of opening up ownership of the public entity to
private investors in the future. In addition, the government invests to extend coverage to
underserved regions. The private service providers are then allowed to offer services on
the platform at regulated prices.
ii. National open-access alternative carrier: The national government builds a completely
new national network independent of the other existing networks. The new infrastructure
serves to break down potential bottleneck prices that may arise during the incumbent’s
operation.
iii. Fund last-mile connectivity to government institutions.

Universal service funds have traditionally been utilized to provide voice services in underserved
areas.95 A USF can be utilized, among others, to support digital literacy programmes, co-funding
with operators for infrastructure deployment where applicable and providing connectivity to
public schools, hospitals and government administration centres. There is a need to define clear
roles between the management of the USF and the regulator. The role of the universal service
management should be restricted to operationalization of the fund, while that of the regulator
should focus on oversight, including approval of budgets, plans and evaluations.96

One of the major hindrances to accelerated deployment in developing countries is high-


interest loans that come with multiple conditions.97 It is important that jurisdictions consider
the impact of the models proposed by development partners, especially in the long term. This
financing model of negotiating loans from banks or financial institutions for over-the-counter
contracts tends to lead to enormous problems for developing countries, including substandard
installations, duplication of infrastructure, and exorbitant and unreasonable market prices.

2.4.2 Public-private financing model


This model is very common with high capital-intensive projects, such as national backbone
networks. There are three main variations of PPP models:

i. The public entity’s role is limited to that of a sponsor, enabling the private entity to gain
access to tax-exempt financing.

92
ITU-D SG1 Document SG1RGQ/185 from Chad
93
ITU-D SG1 Document SG1RGQ/195 from Brazil
94
ITU-D SG1 Document SG1RGQ/253 from Kenya
95
ITU-D SG1 Document SG1RGQ/11 from Rwanda
96
ITU-D SG1 Document 1/327(Rev.1) from the United States
97
ITU-D SG1 Document 1/222 from Mali

Output Report on ITU D Question 1/1 31


Strategies and policies for the deployment of broadband in developing countries

ii. The public entity’s obligation is limited to guaranteeing a private entity’s debt for the
project.
iii. The most common one is where the public entity and the private entity create special
purpose vehicles in which investors hold ownership rights. Under this model, lending
is based on the project’s projected income, and lenders ring-fence revenues and hold
collateral against the project assets. The success of this model depends on having adequate
risk-mitigation mechanisms in place. The public fund is normally used as a guarantee
against risk factors affecting profitability.

In recent times, governments have been building partnerships with OTTs and financial
institutions for the deployment of broadband infrastructure projects. Finance is a major
challenge in infrastructure development and thus access to affordable financial capital is key.
These partnerships offer a number of advantages, including fostering accountability and
transparency mechanisms. They increase the likelihood of Official Development Assistance
and provide an ideal way to access new technologies without expending resources.

2.4.3 Operator-funded model


The private service provider assumes ownership of all equity and debt with regard to the project.
Funding can be sourced internally and supplemented with debt finance or, in some cases, the
operator can finance the project entirely with debt finance. Normally loans are sourced from
lenders at negotiated rates depending on project risks and the company’s weighted average
cost of capital (WACC).

There are two main variants of this model:

i. The operator assumes sole responsibility for financing deployment of broadband on the
strength of their market share position and broadband demand in the market.

ii. Competitive partnering, where two or more operators enter into an arrangement to
deploy infrastructure. Each partner is then allocated distinct roles with regard to the construction
and operation of passive infrastructure and brings on board a set of capabilities to the venture.

2.4.4 Promoting last-mile connectivity using reverse auctions


One way of financing broadband connectivity in remote, underserved areas utilizing limited
government funds is the use of reverse auctions, which have been successfully implemented by
the United States to fund broadband infrastructure projects, to enhance nationwide broadband
connectivity and close the digital divide. This model is used to efficiently and effectively allocate
limited government funds to broadband providers for last-mile broadband deployment and
connectivity in hard-to-reach places.98

In a reverse auction, broadband providers compete to build out broadband to a specific number
of locations in an unserved area for the smallest government subsidy. The bids represent the
amount of government support that a broadband provider would accept in order to commit
to providing broadband coverage to the specified locations in an area, while still making a
profit. The broadband provider that bids the lowest, after adjusting for quality, is awarded the
funding and is required to cover 100 per cent of the locations identified in the areas it won
within a specified number of years.

98
ITU-D SG1 Document SG1RGQ/209 from the United States

32 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Reverse auctions have several advantages over more traditional methods to achieve government
policy goals for connectivity. First, by adjusting bids based on the quality of service being offered
(speed, usage allowance, latency, etc.), a reverse auction can encompass many types of services
at the same time (satellite, fixed wireless, fibre, etc.) and find the service that is the best fit for
each area. Second, by considering many unserved and hard-to-serve areas at once, a reverse
auction can efficiently distribute government funds to those areas where government support
will make the greatest impact.

2.4.5 Selecting the most appropriate financing models


It is good to note at this point that there is no perfect model to fund the deployment of
broadband. One model may be appropriate for a certain project, but it is important for decision-
makers to select an optimal model depending on the characteristics of the particular market.
It is therefore advisable to have a mix of two or more of these funding options so as to spread
the risks and utilize their diverse experience in the projects. Funding constraints vary with the
financial muscle of the service provider and the technology to be deployed.

The most suitable model varies depending on the geographical location of the project being
deployed. Given the larger number of potential subscribers in cities and urban centres, there
are potential benefits when the government co-invests with the private sector in the deployment
of passive infrastructure. The government can leverage on the private sector’s advantage of
controlling the market through an open-access model to access attractive financing terms. This
model guarantees that the project can rapidly become self-sufficient and provide additional
investment funding from the generated cash flow.

Selecting the most appropriate financing mechanism for rural areas can be tricky given the
challenge of low rate of return due to the smaller number of users. Two models have been used
and have proved useful in this geography: at one end of the spectrum, public funds are used
to finance the entire project while, at the other, the government gives private entities subsidies
to venture into rural areas.

Output Report on ITU D Question 1/1 33


Strategies and policies for the deployment of broadband in developing countries

Chapter 3 − Transition to high-speed


and high-quality broadband networks

3.1 Importance of high-speed and high-quality broadband


Developing countries need to transition from low-speed broadband networks to high-speed
and high-quality broadband networks. This transition is also essential in order to benefit from
the social and economic benefits of digital transformation, as in developed countries.99

The outcomes of the World telecommunication Development Conference (Buenos Aires, 2017)
(WTDC-17), including the definition of Question 1/1, Resolution 43 (Rev. Buenos Aires, 2017),
on assistance in implementing IMT and future networks, and the regional initiatives, underline
the importance of high-speed, high-quality broadband for developing countries.100 More than
90 per cent of broadband users in developing countries are using mobile-broadband networks.
Therefore, the transition to 5G (IMT-2020), a high-speed, high-quality mobile-broadband
network, is very important.

Download and upload speeds can determine what kinds of applications are possible
for broadband users. Figure 3.1 illustrates the need for Internet connectivity speed and
responsiveness for a single use of an application or a service. This need increases for multiple
uses, which have become the norm since a single user often has simultaneous uses (such as
watching TV and using social networks) and a single connection often serves multiple users
simultaneously (households with children, SMEs and organizations like schools and libraries).

Figure 3.1: The importance of high-speed broadband

Source: European Commission analysis based on GSMA and EIB

99
ITU-D SG1 Document SG1RGQ/69 from Intel Corporation
100
ITU. Final Report of the World Telecommunication Development Conference (Buenos Aires, 2017) (WTDC-
17). Geneva, 2018.

34 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Low latency, reliability and guaranteed service level are important factors for high-quality
broadband services.

While there is a variety of latency requirements for each specific service or application, some
applications that can require low latency include:101

– Factory automation: Applications such as machine tools operation may allow latency as
low as 0.25ms.
– Intelligent Transport Systems (ITS): Road safety of ITS requires a latency in the order of
10 ms.
– Robotics and telepresence: Touching an object by a palm may require latency down to
1 ms.
– Virtual reality: High-resolution 360° VR requires a latency of 1 ms.
– Healthcare: Tele-diagnosis, tele-surgery and tele-rehabilitation may require latency in the
order of 1 ms.
– Advanced gaming: Immersive entertainment and human interaction with high-quality
visualization may require latency of 1ms.
– Smart grid: Dynamic activation and deactivation in smart grid requires latency in the order
of 1 ms.
– Education and culture: Tactile Internet-enabled multi-modal human-machine interface
may require latency as low as 5 ms.
– Precision agriculture: Real-time connectivity with agricultural machines and drones to
achieve maximum performance requires latency of less than 1 sec.
– Emergency, disasters and public safety: 5G will also play an important role for mission-
critical applications, such as early warning systems (earthquakes and tsunami and other
natural disasters) embodying high accuracy, low latency and other features.
– Differently abled people: New innovative applications will require low latency real-time
communication.
– Speech-to-speech translation: Real-time speech-to-speech translation will require very low
latency.

3.2 Transition to high-speed and high-quality broadband networks

3.2.1 Transition to high-speed and high quality mobile broadband networks


(5G)
Unlike previous generations of mobile networks, 5G is expected to fundamentally transform the
role that telecommunication technology plays in society. Technically, 5G is a system designed to
meet the requirements of IMT-2020 set by the ITU-R specification M.2083 and M.2150 (Detailed
specifications of the terrestrial radio interfaces of IMT-2020).102 5G will provide more advanced
and enhanced capabilities compared to 4G LTE (IMT-Advanced). It can be noted that 5G will
aim to provide 20 times the peak data rate (speed), 10 times lower latency (responsiveness) and
three times more spectral efficiency than 4G LTE. 5G has three major use case classes: enhanced
mobile broadband (eMBB), massive IoT (Ma-IoT) and ultra-reliable low latency (URLLC). The
requirements for the use case classes and the use cases within each class vary significantly.103

101
Imitiaz Parvez et al. A Survey on Low Latency Towards 5G: RAN, Core Network and Caching Solutions. arXiv:​
1708​.02562v2 [cs.NI], 29 May 2018.
102
ITU. Recommendations ITU-R M.2083, on IMT Vision - Framework and overall objectives of the future
development of IMT for 2020 and beyond, and ITU-R M.2150, on Detailed specifications of the terrestrial
radio interfaces of IMT-2020.
103
ITU-D SG1 Document 1/224 from Intel Corporation

Output Report on ITU D Question 1/1 35


Strategies and policies for the deployment of broadband in developing countries

To realize the potential of 5G, jurisdictions may consider a number of strategies, including
freeing up more spectrum for the commercial marketplace, promoting wireless infrastructure
deployment, and modernizing existing regulations to promote more fibre deployment, among
others. For possible measures to have a significant impact, it is paramount that regulators
actively engage with all relevant stakeholders.

In terms of spectrum bands earmarked for deployment of 5G, they can be sub-divided into
three macro categories: sub-1 GHz, 1-6 GHz and above 6 GHz. Sub-1 GHz bands are suitable
to support IoT services and extend mobile-broadband coverage from urban to suburban and
rural areas. The 1-6 GHz bands offer a reasonable mixture of coverage and capacity for 5G
services. Spectrum bands above 6 GHz provide significant capacity, thanks to the very large
bandwidth that can enable enhanced mobile-broadband applications.

This variety of requirements and spectrum needs show that there are many options for the
introduction of 5G, and different spectrum bands will be needed to support all use cases.
Operators must therefore consider the feasibility of different options in meeting their intended
initial use cases and interoperability of their choice with other options to ensure their networks
deliver the use cases effectively while supporting global interoperability.104

3.2.2 Transition to high-speed and high-quality wireless broadband networks


Advancements in wireless technologies such as Wi-Fi have a significant impact in improving
access to broadband, especially in rural areas. To promote such deployments, jurisdictions are
encouraged to increase the supply of unlicensed spectrum. This will be key in ushering in new
generations, such as Wi-Fi 6, that will play a major role in the growth of IoT. Unlicensed devices
can be allowed to access this spectrum together with licensed service providers.105

3.2.3 Transition to high-speed and high-quality fixed-broadband networks106


The explosion of data needs triggered by the digital transformation has opened the way to mass
deployment of international fibre infrastructure worldwide. Nevertheless, there are still a large
number of population centres, particularly in developing countries, which remain unconnected
by fibre while many others are only connected by high-cost or unreliable fibre links. The wide
variety and many factors in the affordable connectivity equation underscore the need for an
integrated approach to provide affordable access to international fibre infrastructure.

At present, lower wholesale copper access prices are competitive when set against the price
of fibre services, adversely affecting the take-up of fibre. There is no consensus on the most
appropriate approach to pricing during the transition from copper to fibre. NRAs should
consider allowing incumbents to withdraw copper-based access products as soon as they
offer fibre-based access services, to prevent the undermining of the business case for more
expensive fibre services. NRAs may consider policies and financial incentives to encourage
migration from copper to fibre and to stimulate the deployment and take-up of fibre services.

104
ITU-D SG1 Document SG1RGQ/328(Rev.1) from the United States
105
Ibid.
106
ITU. ITU-D Policy and Regulation. Global ICT Regulatory Outlook 2018. Geneva, 2018.

36 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Examples for transition from copper to fibre:

– The Government of Australia imposed a deadline of 2020 by which all premises are to
be migrated from copper to fibre. In 2014, Telstra (Australia) began to switch off services
being delivered over its copper networks. The government-funded NBNCo initiative, which
has driven wholesale fibre connectivity across Australia, will switch off copper networks in
areas where NBNCo already provides fibre services.
– Verizon (United States) requested regulatory permission to migrate its copper network in
selected markets from 2018. Verizon delivers services via its fibre infrastructure and wishes
to cease maintaining the copper facilities in Virginia, New York, New Jersey, Pennsylvania,
Rhode Island, Massachusetts, Maryland and Delaware.
– ComReg, the Irish telecommunication regulator, has launched a consultation on the
potential of its incumbent operator, Eir, to transition from copper in some parts of the
country, particularly in areas of extensive fibre coverage.
– Singtel (Singapore) announced plans to discontinue its copper-based ADSL network in
April 2018 as it accelerates fibre-based service adoption for its business and residential
customers in the city.
– Chorus (New Zealand) is set to get regulatory relief from its copper network under plans to
deregulate the copper network where it competes with fibre access networks from 2020.

3.3 Best-practice guidelines


A list of best-practice guidelines for the transition to high-speed and high-quality broadband
networks is given below:107

– Get political support at the highest level (presidents, prime ministers) on the importance
of high-speed broadband network investment for digital transformation and the economy.
– Develop a national/regional strategy and targets for the transition to high-speed broadband
networks.
– Develop a broadband and 5G plan/strategy taking into account the complementarity of
several technologies.
– Prioritize the transition to high-speed broadband networks in the national/regional digital
transformation (digital economy) plans.
– Establish a national committee on high-speed broadband connectivity in collaboration
with telecommunication operators and industry.
– Determine national and priority coverage areas for high-speed broadband connectivity
in urban and rural areas, cities/villages, schools/universities, hospitals/health clinics,
government departments, SMEs, transportation (roads, railways, harbours, airports),
industrial, business and agricultural areas.
– Provide sufficient amount of radio-frequency spectrum for 5G and adopt a technology/
service-neutral approach in the licensed 3G/4G frequency bands for the transition to 5G.
– Provide sufficient spectrum for new advanced Wi-Fi technologies.
– Provide sufficient access to spectrum for use by satellites, including by high-capacity
satellite services.
– Implement high-speed fixed wireless access (FWA) technologies both in urban and rural
areas.
– Promote facilities-based competition.
– Support high-speed broadband network investment of telecommunication operators
through different incentive subsidies, sound tax policy, infrastructure sharing, licence fee
and conditions, and financial support such as through a universal service fund (USF).

107
ITU-D SG1 Document SG1RGQ/371(Rev.1) from Intel Corporation (United States)

Output Report on ITU D Question 1/1 37


Strategies and policies for the deployment of broadband in developing countries

– Cooperate with municipalities and local authorities to aggregate demand and ease right-
of-way fees, cellular tower sites, etc.
– Promote investments in new fibre-optic networks and other high-speed wireless broadband
infrastructure.
– Provide effective use of USF for high-speed broadband network and access programmes.
– Develop funding models for high-speed broadband networks.
– Consider benefiting from the budget/funds of different ministries and municipalities by
developing joint projects, such as on e-agriculture, e-health, e-learning and smart cities.
– Implement measures to decrease infrastructure deployment costs.
– Implement a sound taxation regime on broadband-related devices and services to reduce
the cost of ownership, making high-speed broadband more affordable.
– Develop a national broadband map and determine the existing resources and gaps for
high-speed broadband access.
– Consider obligations in licence terms to meet certain coverage, deployment, speed or
other quality of service requirements, or to uphold competition in the market.
– Implement effective ICT policy and regulations to pave the way for the deployment of very
high-capacity networks (VHCNs) such as fibre, DOCSIS cable and 5G mobile.
– Plan and distribute/extend the capacities of submarine and regional/national backbones
at the national level.
– Stimulate demand by increasing broadband awareness and digital literacy, emphasizing
the promotion of high-touch distribution channels, and accelerating the uptake of high-
speed broadband.
– Increase relevant local content and applications, particularly those related to education,
government services, and economic productivity.

3.4 Country/regional examples


According to Japan’s experience, one of the possible strategies for the deployment of 5G
infrastructure is to combine it with the promotion of 5G utilization, as two sides of a coin.108

Rural areas can benefit from 5G through initiatives such as Local 5G, which allow them to
construct their own spot-like 5G networks. Otherwise, the deployment of commercial 5G
services in rural areas would come later than in urban areas. 5G is creating many different types
of value, and is expected to be able to address rural or regional needs to solve challenges faced
by local communities in many fields, such as daily life, industry, healthcare and disaster response.

The Ministry of Internal Affairs and Communications (MIC) of Japan has been conducting 5G
comprehensive demonstration tests for three years since the 2017 financial year, with the aim
of launching 5G commercial services in 2020, as well as creating new markets.

Local 5G is one new initiative from MIC that allows various entities, such as local companies and
local governments, to flexibly construct and use spot-like networks in their own buildings and
premises. With Local 5G, regional entities may build and deploy their own networks well before
they are covered by nationwide commercial mobile operators, or even outside commercial
network coverage areas.

In Viet Nam, the number of subscribers with fixed-broadband and mobile-Internet access has
increased year by year. Mobile-broadband subscribers benefited most from the deployment
of a robust 4G network infrastructure in recent years and the upcoming 5G network. Viet Nam

108
ITU-D SG1 Document 1/361 from Japan

38 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

has been testing 5G since 2019 and is on a roadmap for 5G commercial deployment in 2020.
Viet Nam is building a digital transformation strategy, taking advantage of the achievements of
the Industrial Revolution 4.0 to achieve the goal by 2025, when broadband Internet will cover
all communes in the country. By 2030, there will be 5G mobile network coverage nationwide,
and all citizens will have access to low-cost broadband Internet.109

Brazil adopted asymmetric measures as a tool for increased competition in broadband and
regional deployment of high-speed networks in small and medium-sized cities. Fixed broadband
showed steady growth in the last half of 2019, especially characterized by three movements: the
leadership of net additions by the group of regional providers that has grown 3.5 times over
2019 compared with larger groups; the increase in fibre-optic connections; and the increase
in speeds above 34 Mbit/s.110

The regional providers began operations in the second half of the 1990s, initially using the dial-
up network. The need for increased access speed and convergence in the regulatory framework
has had an impact on the creation of their own networks by these companies, initially with ADSL
technology and later through optical technology. Regional providers are spread all over Brazil
and operate in 99.8 per cent of Brazilian municipalities.

Small island States are experiencing an ever-increasing improvement in international connectivity


ensured by submarine optical fibre cables, as virtually all such States are connected to the rest
of the world by several optical fibre links. Users in these countries are satisfied with the resulting
improvements, in terms of both the diversity of offer and the quality of broadband services.

The problem lies in the fact that these markets are very limited, and operators find it difficult
to recover their investments. The populations of small island States are too small to generate
sufficient traffic and revenue for operators, thus only a very small proportion of the capacity
made available to users is actually used. Broadband can only be deployed in the small island
States based on a model adapted to the size of their populations, as best practices accepted
for large countries can pose problems in such island nations.

Comoros has invested large amounts in submarine optical fibre connectivity, placing enormous
capacity at its disposal. Comoros is currently using 22 per cent of the capacity purchased
and 4 per cent of the capacity hypothetically available. The infrastructure is thus being used
extremely inefficiently. As major transformations have occurred in the past decade in both the
local industry and the deployment of digital services, Comoros must mobilize this potential in
pursuit of its socio-economic development.111

In Chad,112 the broadband telecommunication infrastructure using optical fibre links consists of:

– A connection linking N’Djamena to Cameroon via Bongor


– A second connection linking N’Djamena to Port Sudan
– A third link known as the Trans-Saharan Backbone.

Planning an optical fibre grid across the country will help to end the digital isolation of the various
regions of Chad. Deploying optical fibres will allow the Internet to become commonplace
throughout Chad as a tool for development, to be taken up by as many people as possible.

109
ITU-D SG1 Document 1/357(Rev.1) from Viet Nam
110
ITU-D SG1 Document 1/387 from Brazil
111
ITU-D SG1 Document 1/333 from Comoros
112
ITU-D SG1 Document SG1RGQ/185 from Chad

Output Report on ITU D Question 1/1 39


Strategies and policies for the deployment of broadband in developing countries

The Central African Republic113 moved into the implementation phase of its project to establish
a fibre-optic connection (CAB) between itself, Cameroon and the Republic of the Congo
enabling it to obtain access to the submarine cables in the Atlantic Ocean. This followed the
signing of a co-funding agreement by the African Development Bank (AfDB) Group and the
European Union with the Government of the Central African Republic in Bangui in January
2018. The Central African Republic component, for its part, comprises:

i. Installation of over 1 000 km of optical fibre, connecting the country with Cameroon and
the Republic of the Congo
ii. Establishment of a national data centre and an IXP linked to an electronic administration
platform, enabling cost reductions in international Internet connectivity in accordance
with ITU-T D.50 Supplement 2: ‘Guidelines for reducing the costs of international Internet
connectivity’.114

For the operation and management of its CAB, the Central African Republic opted for an
open‑access approach in anticipation of a public-private partnership. Operators legally
established in the Central African Republic, such as Socatel, the traditional State operator,
and the other four private mobile operators, have been invited to take up holdings in the new
company responsible for the management and operation of the CAB cable.

Strategically, the cost-effectiveness of the CAB cable will free up capital to connect the remaining
14 prefectures of the Central African Republic to the CAB and their service areas along the
route in order to increase ICT connectivity in these areas and in isolated rural areas. Last-mile
technology (Wi-Fi, WiMAX, 3G and 4G) will be used to connect villages and sub-prefectures
adjacent to the Central African Republic’s CAB in order to connect them to the national and
international networks.

In India,115 the implementation of a submarine cable project will provide a robust and reliable
telecommunication facility to the people of the Andaman and Nicobar islands. It will also boost
the tourism potential of these islands. It will fulfil the basic goals of universal service obligation:
universal availability, universal affordability and universal accessibility. Experience gained
through this project can be utilized for future projects, including laying of a submarine cable
between the mainland and the Lakshadweep Islands in the Arabian Sea. In future, this cable
can be a part of the South Asian Association for Regional Cooperation (SAARC) cable or can
be connected to Myanmar as an alternate connectivity route for India’s north eastern region.
Further, this can be extended to cover the Association of Southeast Asian Nations (ASEAN)
region.

Presently, the Andaman and Nicobar Islands are connected with the mainland through satellite
links. In the absence of any alternate connectivity, these islands would be totally cut off from the
rest of the country in the eventuality of a breakdown of the satellite links. The absence of a robust
and reliable telecommunication network with the mainland has been felt acutely, particularly
during natural disasters and calamities.

Providing telecommunication connectivity to these islands is a big challenge, not only with the
mainland but also with inter-island telecommunications. With its relatively small population
of around 380 000 spread across many islands, providing telecommunication services in all

113
ITU-D SG1 Document 1/29 from the Central African Republic
114
ITU, Supplement 2 to Recommendation ITU-T D.50, on Guidelines for reducing the costs of international
Internet connectivity.
115
ITU-D SG1 Document 1/57 from India

40 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

inhabited islands is not a viable commercial proposition for the telecommunication service
providers. Very few telecommunication service providers have launched their services in these
islands.

Some specific challenges in providing telecommunication services to these islands:

i. Non availability of submarine cable: At present, no submarine cable connectivity with the
mainland is available to these islands, which poses constraints in providing high-speed
data and voice services to the citizens of the Andaman and Nicobar Islands.
ii. High satellite bandwidth cost: Due to the absence of any submarine cable connectivity,
telecommunication connectivity with the mainland and between different islands is
provided only through satellite links. The cost of satellite bandwidth is very high at present
and it also depends on the footprints of satellites over these islands. Due to these factors,
providing telecommunication services in these islands is commercially unviable.
iii. Topographical challenges: The Andaman and Nicobar Islands are spread across around
780 km in length, with a total geographical area of 8 249 square km in the Bay of Bengal.116
Only Port Blair is connected by air service to the mainland. Due to the limited availability
of transportation, travel from one island to the other is another challenge. These islands
are also prone to natural disasters, such as earthquakes, tsunamis, cyclones and other
maritime disturbances.
iv. Higher cost of infrastructure: The cost of infrastructure development is much higher as
compared to the mainland. The labour force and employees are mostly brought from the
mainland, increasing the cost of any project. Due to large inter-island distances and non-
availability of jetty facilities on some islands, transportation of material and personnel is
a big challenge and comprises a significant component of the total cost of infrastructure
development.
v. Land and power-supply constraints: The power supply is mainly generated through diesel-
powered equipment. Frequent power fluctuations and limited power availability hamper
the continuous operation of existing telecommunication infrastructure. The supply of diesel
itself is scarce on the islands owing to the non-availability of transportation facilities, further
hampering reliable power supply. Environmental protection laws impose restrictions on
activity in forest lands, and laws against the acquisition of tribal land held by the local
population leaves little space for the installation of telecommunication infrastructure.

In view of these challenges and the non-viable commercial conditions, it was felt necessary
for the government to step in and utilize the Universal Services Obligation Fund (USOF)117 for
augmentation and development of telecommunication infrastructure and connectivity in the
Andaman and Nicobar Islands. The Indian Government has approved a proposal to provide
a direct communication link through a dedicated optical-fibre submarine cable between the
mainland (at Chennai, Tamil Nadu) and Port Blair as well as seven other islands.

The submarine cable would equip the Andaman and Nicobar Islands with appropriate bandwidth
and telecommunication connectivity for the implementation of e-governance initiatives and the
establishment of enterprises and e-commerce facilities.

116
Directorate of Census Operations – Andaman and Nicobar Islands. Census of India 2011. Andaman &
Nicobar. Series - 36, Part XII-A.
117
The Universal Service Obligation Fund of India came into being with effect from 1 April 2002 with the passing
of the Indian Telegraph (Amendment) Act, with the mandate of providing access to telecommunication
services to people in rural and remote areas at reasonable and affordable prices. The source of this fund is
a universal service levy collected at 5 per cent of adjusted gross revenue of all telecommunication service
providers except value-added service providers.

Output Report on ITU D Question 1/1 41


Strategies and policies for the deployment of broadband in developing countries

In Europe, the recent European Commission policy framework118 underlines the significance of
NGN technology by including NGN deployment as part of a growth strategy for economic and
social development. In order to reap the full benefits offered by ICTs, and to remain competitive
in international markets, widespread and stable access to high-speed Internet infrastructure
and services have been targeted.

The following goals have been set for 2020:

– 30 Mbit/s coverage or more for all EU Member States


– 50 per cent of households to have 100 Mbit/s subscriptions or higher

There is still a need for action before every user has access to NGNs. In 2014, only 68 per cent
of all EU households had access to bandwidths of 30 Mbit/s. Meeting the challenge of financing
a good-quality and cost-efficient broadband infrastructure is a crucial factor. In the context of
investing in high-speed digital networks, mapping of broadband infrastructure is a key success
factor that enables policy-makers to plan ahead.

The mapping of broadband infrastructure benefits a variety of stakeholders. For example, for
policy-makers and regulators to assess policy interventions, they need large-scale independent
measurements to assess network performance when deciding about State aid schemes, and
owners of electronic network infrastructure and operators of electronic communications services
could be helped with investment planning or market research. With the importance and benefits
of mapping of broadband infrastructure in mind, the Electronic and Postal Communications
Authority (AKEP) in Albania has developed a system for mapping broadband infrastructure.

While initial development was carried out by external contractors, AKEP created additional
system requirements when using the tool, upgrading the system to fulfil their requirements,
especially for regular and ad hoc analysis and reports. AKEP also carried out benchmark research
across Europe with other mapping tools and found that a good broadband mapping tool was
being used in Slovenia.

In February 2016, a twinning concept was brought forward with the help of ITU whereby the
Agency for Electronic Communications Networks and Services (AKOS) in Slovenia worked with
AKEP on a project to map the telecommunication infrastructure in Slovenia.

The Agency for Electronic Communications and Postal Services (EKIP) of Montenegro has
developed a system for mapping broadband infrastructure and broadband network, as well
as broadband infrastructure plans, with a tool that meets their requirements for analysis and
reporting. Continuous monitoring of trends in mapping is an important tool for the effective
development of broadband networks.119

The state of broadband connectivity in Europe120 and the current trends in its modernization
will not fulfil the growing needs for better and faster Internet, enabled by very high-capacity
networks. They are needed for citizens and businesses to develop, deliver and enjoy online
goods, applications and services across Europe. The success of e-commerce, the reliability
of e-health applications and the user experience of video and audio content in gaming and
streaming all depend on the quality of networks.

118
ITU-D SG1 Document SG1RGQ/46 from BDT Focal Points for Question 1/1 and Question 5/1
119
ITU-D SG1 Document 1/447 from Montenegro
120
ITU-D SG1 Document SG1RGQ/70 from Intel Corporation (United States)

42 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Very high-capacity networks are also necessary to maximize the growth potential of the European
digital economy. Instantaneous transmission and high reliability will allow hundreds of machines
to cooperate in real time in industrial, professional or domestic settings. Ubiquity will allow
cars to drive autonomously. Responsiveness and reliability are key factors enabling doctors to
conduct surgery remotely and for cities to adapt energy consumption or traffic lights to reflect
real-time needs. High upload/download speeds will allow businesses to hold high-definition
(HD) videoconferences with many participants in different locations or to work on common
software in the cloud. Students will be able to follow courses provided by universities located
in other Member States.

Very high-capacity networks are needed to ensure territorial cohesion, for every citizen in
every community across Europe to be part of, and to benefit from, the Digital Single Market.
For Europe's growth, jobs, competitiveness and cohesion, very high-capacity networks are
becoming a necessity. A recent study estimates that successful deployment of 5G could bring
about EUR 113 billion per annum in benefits in four industries (automotive, healthcare, transport
and utilities), with benefits widely spread over business, consumers and the wider society.

In order to define more precisely what Europe's future Internet connectivity should look like,
a set of objectives for network deployment by 2025 was established. They aim at building a
gigabit society, relying on very high-capacity networks, that will ensure the benefits of the Digital
Single Market for all.

In the past few years, a new family of wholesale services has been introduced in Spain.121 The
new reference offer has been called NEBA, standing for Nuevo servicio Ethernet de Banda
Ancha (New Broadband Ethernet service). This new service is a level-2 bitstream offer, which
allows alternative operators to access both copper and FTTH subscribers.

NEBA services allow alternative operators to connect directly to the regional Ethernet network
(Layer 2). NEBA services include access to both copper and fibre services with throughputs
currently up to 600 Mbit/s symmetric (only in fibre) and under three QoS modes (Best Effort,
Gold and Real Time) which ensure certain levels in terms of packet losses, latency and jitter.

From a technical perspective, NEBA-related services differ from previous offerings in two main
aspects:

– Interconnection is effected at OSI Layer 2, instead of Layer 3


– They allow access to FTTH accessories, while traditional services are related only to copper.

Like other countries in Africa, Burundi122 has realized what society stands to gain thanks to
telecommunications. In order to build the Burundi of tomorrow, the government decided to
draw up a broadband policy that would serve as a roadmap for all telecommunication/ICT
stakeholders.

For Burundi, the broadband – or high-speed – strategy is intended to promote a knowledge


society of communities with access to high-speed national connectivity promoting the socio-
economic development of all citizens. It is also in line with the government’s vision of ICT
development. As the President of Burundi, Pierre Nkurunziza, said on 19 December 2016, the
government’s vision is to make Burundi a regional centre of ICT excellence by 2025.

121
ITU-D SG1 Document 1/158 from Axon Partners Group Consulting (Spain)
122
ITU-D SG1 Document SG1RGQ/167 from Burundi

Output Report on ITU D Question 1/1 43


Strategies and policies for the deployment of broadband in developing countries

The general objective of Burundi’s National Broadband Plan is to maximize the socio-economic
benefits for citizens, notably to:

– promote broadband deployment throughout the country (in stages);


– increase broadband use and the number of users:
– guarantee the availability of broadband services at an affordable price.

The plan’s anticipated outcome is a significant increase in the broadband Internet penetration
rate. All major cities should have an optical fibre network.

The Burundi Broadband 2025 strategy: The strategy defines how to provide, as quickly as
possible, the means needed to achieve broadband connectivity and enable the operation
of associated services throughout the country at an affordable cost. Implementation of the
broadband strategy requires the investment of colossal sums.

There are three major sources of investment and funding for the installation of broadband
infrastructure:

– private finance;
– government funding;
– funds from public-private partnerships.

The aim of the broadband strategy is to provide a roadmap setting out all the measures required
in the short term, medium term and long term to turn Burundi into an emerging society through
digital technologies. Its implementation requires a long-term commitment and considerable
action on the part of the State, local authorities, the executive and parliament, and strong private
sector participation.

44 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Chapter 4 − Indirect aspects for


the deployment of broadband

4.1 Transition from IPv4 to IPv6


Using Internet Protocol version 6 (IPv6) and its related strategies is an inevitable necessity for
the development of information technology in any country.

Burundi123 is preparing to migrate from Internet Protocol version 4 (IPv4) to IPv6. On 30 August
2017, the Agence de Régulation et de Controle des Télécommunications (ARCT), the country’s
regulatory agency, organized, in collaboration with the Agence universitaire de la francophonie
(AUF), the African Network Information Centre (AFRINIC) and the Burundian Internet access
provider (CBINET), an awareness-raising workshop for the Burundian authorities on the theme
of migrating IPv4 to IPv6. The latter is more reliable and presents a number of benefits, including
reliability, resilience, flexibility, interoperability, compatibility and high security.

In the Islamic Republic of Iran,124 IPv6 development and migrating from IPv4 is done with
nationally coordinated management and the establishment of software and hardware
infrastructure.

The most important activities conducted in the Islamic Republic of Iran are:

– IPv6 island implementation in the infrastructure communications and the country’s major
operators
– Establishing the Iran IPv6 task force by the Ministry of Communications and Information
Technology with the participation of universities and other organizations in the country
– Formation of the IPv6 country team
– Codifying the IPv6 migration map
– Codifying IPv6 implementation requirement instructions
– Codifying an IPv6 requirement document on ICT equipment.

In Mexico,125 the Federal Telecommunications Institute (IFT) developed initiatives to promote


and foster transition to the use of the IPv6 protocol. The IFT developed a microsite to provide
information about the benefits and advances of its adoption in Mexico. The microsite is
addressed to Internet users, academics, industry, those interested in the sector, dependencies
and federal, state and municipal entities.

In Oman,126 the Telecommunications Regulatory Authority (TRA) published, in April 2018, the
National IPv6 Transition Plan for all public and private entities, with emphasis on adherence to
the action plan according to the designated time-frame.

123
ITU-D SG1 Document 1/28 from Burundi
124
ITU-D SG1 Document 1/78 from the Iran University of Science & Technology (Islamic Republic of Iran)
125
ITU-D SG1 Document 1/185 from Mexico
126
ITU-D SG1 Document 1/204 from Oman

Output Report on ITU D Question 1/1 45


Strategies and policies for the deployment of broadband in developing countries

TRA formed a task force to prepare the National IPv6 Transition Plan and to oversee its
implementation in order to achieve the following objectives:

o Drive IPv6 adoption in Oman through initiatives


o Facilitate IPv6 deployment for government entities that are connected to the Oman
Government Network (OGN)
o Direct government entities, banks, oil and gas companies and others to migrate to IPv6
by 2020
o Address issues for nationwide implementation of IPv6, including address allocation,
migration process, equipment, human capacity and policy assistance.

The Central African Republic is not being bypassed by the IPv6 revolution.127 In order to ensure
a smooth transition from IPv4 to IPv6 and the necessary political will and orientation of the
principal stakeholders, given the country’s socio-economic situation and military and political
backdrop, the strategic objectives have been separated into three groups:

i. for the general administration;


ii. for telecommunication operators and Internet access providers (IAPs);
iii. transitional process prior to migration from IPv4 to IPv6.

IPv6 addresses are not compatible with IPv4 ones, and communication between a host with only
IPv6 addresses and another with only IPv4 addresses poses a problem for the administration
and stakeholders, including operators and IAPs. Consequently, there needs to be an interim
provision in place prior to the complete migration to IPv6. The goal of this transitional phase is
to allow Central African workplaces with IPv6 and/or IPv4 addresses to be able to communicate
among themselves, with IPv6 routers gradually being put online at the national level throughout
the country. The second phase will involve extending double stack to the greater part of the
Central African Internet. Tunnelling will therefore gradually become increasingly unnecessary.
The final phase will be the gradual jettisoning of IPv4 at the national level.

ARIN – one of the five regional Internet registries (RIRs)) – maintains a community blog called
“Team ARIN” (www​.teamarin​.net) as a public service to inform individuals, businesses, civil
society and governments on issues facing the Internet community. Team ARIN also features a
library of IPv6 case studies which offer detailed accounts from organizations that have already
made progress on their IPv6 journey.128

On the blog, guest authors from different organizations, including government, the private
sector and academia, post material on ways to overcome challenges at all levels and to share
all the opportunities related to IPv6 implementation and encourage others to adopt IPv6. The
case studies are available at https://​teamarin​.net/​get6/​ipv6​-case​-studies/​

4.2 Using NFV- and SDN-based networks

4.2.1 Software-defined networking (SDN)


SDN129 has the following principles:

– separation or disaggregation of control plan and data plan;

127
ITU-D SG1 Document SG1RGQ/27 from Central African Republic
128
ITU-D SG1 Document 1/221 from the American Registry for Internet Numbers (ARIN)
129
ITU-D SG1 Document SG1RGQ/339 from Algérie Télécom SPA (Algeria)

46 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

– centralized control;
– programmability and automation through APIs using scripting languages: Python, C/C++,
Java, R, Ruby, and others.

SDN is a set of techniques that enables users to directly programme, orchestrate, control and
manage network resources, which facilitates the design, delivery and operation of network
services in a dynamic and scalable manner.

SDN provides the following high-level capabilities:

– Programmability
The behaviour of network resources can be customized by SDN applications through a
standardized programming interface for network control and management functionality.
The user of the interface may be network providers, service providers and customers,
including end users. This enables the SDN applications to automate the operations of
network resources according to their needs.
– Resource abstraction
The property and behaviour of underlying network resources can be appropriately
abstracted and understood, orchestrated, controlled and/or managed by those who
programme them, thanks to relevant, standard information and data models. These
models provide a detailed, abstracted view of physical or virtualized network resources.

4.2.2 Applying SDN in segment routing-MPLS service provider networks


Defined as a modern variant of source routing, segment routing simplifies the network by
removing network state information from intermediate routers and placing path state information
into packet headers.130 Segment routing can leverage either Multiprotocol Label Switching
(MPLS) or IPv6 on the forwarding plane. When segment routing uses the MPLS forwarding
plane, it is referred to as SR-MPLS. SR-MPLS supports both an IPv4 and IPv6 underlay. The
introduction of SDN plays a key role in automation and programmability in segment routing-
MPLS networks, allowing several advantages. Segment routing (IETF name: SPRING) delivers
network simplification by eliminating MPLS signalling protocols such as LDP and RSVP. A key
benefit of the SDN controller is its ability to provide bandwidth reservation, which segment
routing by itself does not do well.

4.2.3 Telco cloud


Telco cloud131 is an essential piece towards the evolution from a communication service
provider (CSP) to a digital service provider (DSP). The telco cloud combines the benefits of
cloud computing, network functions virtualization (NFV) and SDN.

The telco cloud aims to take the cloud computing model into telecommunication infrastructure
by building software that can run on commercial off-the-shelf (COTS) hardware to deliver virtual
network functions (VNFs).

Flat, scalable cloud architectures increase the need for robust overlays (virtual networks) to
achieve greater agility and mobility and for a vastly simplified operational model for the underlay
physical networks. SDN attempts to address these requirements by allowing networks and

130
ITU-D SG1 Document SG1RGQ/362 from Algérie Télécom SPA (Algeria)
131
ITU-D SG1 Document SG1RGQ/330(Rev.1) from Algérie Télécom SPA (Algeria)

Output Report on ITU D Question 1/1 47


Strategies and policies for the deployment of broadband in developing countries

network functions and services to be programmatically assembled in any arbitrary combination


to produce unique, isolated and secure virtual networks on demand and in a rapid manner.132

4.3 Development of Internet exchange points (IXPs)

4.3.1 IXP in Bhutan


The Department of Information Technology and Telecom (DITT), Ministry of Information and
Communications (MoIC) of Bhutan, is in the process of establishing the Bhutan Internet Exchange
(BIX), an IXP, in Thimphu Tech Park, Thimphu.133 The BIX operates as an open neutral platform
for interconnecting Internet networks in Bhutan. BIX membership is open to all qualifying
entities – network operators, service providers, infrastructure operators and content providers
– on a voluntary basis. The IXP infrastructure consists of a single Ethernet switch supporting
1 Gbit/s and 10 Gbit/s port speeds. The IXP infrastructure also includes a host with a web server
providing a list of BIX members, joining information, aggregate traffic graph, and a Looking
Glass giving access to the list of prefixes available at the IXP. The IXP infrastructure may include
other devices only at the discretion of the IXP Board.

4.3.2 Model memorandum of understanding on the interconnection of the


CGIX (Republic of the Congo) and GAB-IX (Gabon) IXPs
A model MoU between two IXP authorities in neighbouring countries could help develop IXP in
different countries, as illustrated by the case of the Republic of the Congo and Gabon.134 This
MoU allows the entities responsible for managing IXPs to strengthen cooperation between the
States. It facilitates the establishment of Internet data servers around the world. It is a promising
policy for the development of broadband.

132
ITU-D SG1 Document SG1RGQ/337 from Algérie Télécom SPA (Algeria)
133
ITU-D SG1 Document 1/34 from Bhutan
134
ITU-D SG1 Document SG1RGQ/18 from the Republic of the Congo

48 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Chapter 5 − Conclusions

• Telecommunications in the modern information society is a key focus of the world


economy, which determines the level of Member States’ competitiveness. Market
competition encourages different stakeholders to track and predict the main trends of
the telecommunication industry with the aim of investing in the most effective methods
for the rapid and cost-effective development of modern telecommunication networks.
• Among all the elements of development in the modern telecommunications industry, the
following factors have the greatest influence on the deployment of broadband:

o standards for broadband access technologies;


o national plans of fixed and mobile broadband development;
o regulation, investment procedures and public-private partnerships;
o capacity building and supporting decisions in the process of broadband deployment.

• Nowadays three major groups of broadband access technologies are continuing to


develop: mobile broadband, fixed broadband and satellite broadband. For most of the
population in developing countries, mobile is the primary way to access the Internet.
While fixed-telephone subscriptions continue to decline, fixed-broadband subscriptions
continue to increase. With its global reach and immediate availability, satellite is key to
connecting people everywhere.
• Broadband networks have been recognized internationally as an important public
infrastructure. They play an increasingly prominent role in promoting economic growth,
changing growth drivers, and enhancing long-term competitiveness. Their development
has become a major criterion for measuring a country's overall strength. Countries around
the world have all included broadband in priority areas of national development.
• Digitalization is increasingly and fundamentally changing societies and economies and
disrupting many sectors in what has been termed the 4th Industrial Revolution. Meanwhile,
ICT regulation has evolved globally over the past 10 years and has experienced steady
transformation.
• An investment-friendly policy and regulatory framework is needed to support digital
transformation, which now permeates all industries and impacts markets in all sectors.
• Regulatory regimes should be able to encourage the timely deployment of broadband by
eliminating impediments that unnecessarily add delays and costs to bringing advanced
wireless services to the public.
• Broadband deployments are easily realized when nations, states and local governments
create and adopt formalized broadband plans. Plans are effective in assessing and
addressing broadband needs, stimulating action on broadband issues, developing
necessary goals and in achieving actual results.
• Developing countries need to move from low-speed broadband networks to high-speed
and high-quality broadband networks. This transition is essential to benefit from the social
and economic benefits of digital transformation, in line with developed countries.

Output Report on ITU D Question 1/1 49


Strategies and policies for the deployment of broadband in developing countries

Annex 1: Key takeaways from workshops/seminars and other


activities related to the Question
ITU Regional Workshop on Broadband Development (Dushanbe, Tajikistan, 29-30 May 2018)

The ITU Regional Workshop on Broadband Development, which was held in Dushanbe,
Republic of Tajikistan,135 was devoted to topical issues such as:

– global trends in broadband strategy and policy, including activities of international


organizations;
– overview of initiatives and programmes that are related to broadband deployment in
developing countries;
– selecting appropriate technologies for broadband deployment in rural and remote areas;
– technical, organizational and economic aspects of broadband networks design and
implementation;
– case studies of broadband deployment in developing countries.

Conclusions and recommendations:

I. There is a need for more active involvement of educational and academic institutions
along with national research and educational networks in the region in the activities
of ITU-D, as well as other international organizations involved in the development of
infocommunications infrastructure.
II. The importance of further research in developing newer methods of telecommunication
networks designing should be stressed.
III. The high value of the implementation results of the regional initiative “Broadband access
development and introduction of broadband in CIS” approved at WTDC-14 (Dubai, United
Arab Emirates) should be noted along with the need for spreading information on these
results among the communications administrations of the region.
IV. The need for further research of the issues of classifying broadband Internet access as
a universal service along with mechanisms for organizing public-private partnerships, in
order to ensure access to them in hard-to-reach and remote areas, including rural areas.
V. The advisability of more active involvement in the work of the ITU-D of private companies,
which have practical experience in the development of broadband access infrastructure,
including access in hard-to-reach and remote areas as well as in rural areas.
VI. The importance of the communications administrations of the region to provide on time
the information required for the calculation of the ICT Development Index (IDI), taking into
account the most relevant changes in the methodology of its calculation.
VII. The need to increase reliability of the international telecommunication infrastructure in
the region due to the increase in the number of inter-country interconnections and their
throughput.
VIII. The importance of developing and improving State strategies for the development of
broadband access networks, including aspects of building human resources for the design,
construction and maintenance of modern infocommunication infrastructure.

135
ITU-D SG1 Document SG1RGQ/8 from ONAT (Ukraine).

50 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Regional workshop on emerging technologies (Algiers, Algeria, 14-15 February 2018)

Conclusions and recommendations on 5G/IMT 2020 from the Algiers workshop included the
following:136

i. Telecommunication operators can act as facilitators in the transformation towards a digital


economy. Relying on all IP and softwarized networks and the use of SDN and virtualization
technologies play an important role in that regard.
ii. Open standards for 5G will be vital for access to the technology, in particular for developing
countries.
iii. Various opportunities are offered by 5G to developing countries, yet key issues have
to be addressed, including ensuring that technical expertise is developed and that an
R&D ecosystem is facilitated. Countries in the region should adopt a phased deployment
strategy, with a gradual upgrade of their current networks while ensuring return on
investment.
iv. 5G standardization must ensure that the technology meets different requirements, including
different frequency bands for broad spectrum coverage, standards for infrastructure
flexibility and agility to support a large variety of applications and business models, end-
to-end quality of service and management coping with the increased complexity due
to network softwarization, full fixed-mobile convergence with both service and network
benefits, and network integration of machine-learning technologies with their potential
for network design, operation and optimization.
v. ITU-T Study Group 13 plays the leading role within ITU-T when it comes to IMT-2020
standardization (“IMT-2020” is the standard and set of specifications for 5G established
by ITU) and has adopted a “deliverable package” approach (one package for each key
technical area, such as slicing, and FMC) to facilitate the understanding of the standards
framework by the user community.

Facilitating 5G roll-out and adoption will depend on adopting the right regulatory policy:

i. ensure fair/non-discriminatory spectrum auctions;


ii. prioritize infrastructure deployment, not state revenues;
iii. reform planning and administrative rules;
iv. create the right incentives for investment in 5G;
v. enable efficient network management, thus allowing innovative services with specific
quality needs to develop;
vi. support fibre backhaul by ensuring access to passive infrastructure for fibre roll-out;
vi. ensure the public sector acts as an early adopter of 5G.

ITU regional week on Emerging technologies for sustainable development and digital
transformation in the Arab region (Dubai, UAE, 26-29 August 2019)

The activities of the ITU regional week on Emerging technologies for sustainable development
and digital transformation in the Arab region were organized by ITU and hosted by the
Telecommunications Regulatory Authority (TRA) of the United Arab Emirates and the University
of Dubai, with collaboration from the National Telecommunications Regulatory Authority
of Egypt (NTRA). The meeting was supported by Intel, GSMA and Global Innovation and
Entrepreneurship (GIE), with contributions from Huawei, Siemens, Google, Nokia, Ericsson,
Microsoft, Sharjah Research Technology and Innovation Park Free Zone (SRTI Park), Weightless
SIG-UK, National Digital Transformation Unit of Saudi Arabia and HERE Technology.137

136
ITU-D SG1 Document 1/55 from the BDT Focal Point for Question 3/1
137
ITU-D SG1 Document SG1RGQ/245 from the BDT Focal Point for Question 1/2

Output Report on ITU D Question 1/1 51


Strategies and policies for the deployment of broadband in developing countries

These activities included:

– An ITU-GSMA 5G capacity-building training programme, held on 26-27 August 2019,


was organized and delivered by GSMA’s instructor Mr Michele Zarri, Technical Director,
Networks and Technology.
– A subregional Hackathon for the Gulf region on IoT, big data and smart cities, organized by
Arab IoT and AI Challenge stakeholders and supported by ITU, was held on 26-27 August
2019.
– The 4th ITU Annual Forum on “IoT, big data, smart cities and societies” for the Arab region
was held on 28-29 August 2019.

52 Output Report on ITU D Question 1/1


Strategies and policies for the deployment of broadband in developing countries

Annex 2: Case studies


Satellite broadband138

Viasat Community Wi-Fi in Mexico

Viasat connects underserved communities in rural, suburban and urban locations of Mexico
to high-speed broadband through the Community Wi-Fi programme, based on a very small
aperture terminal (VSAT) located at a store or other location in a community. The terminal is
connected to a router and modem, which is in turn connected to a Wi-Fi antenna that creates
a local Wi-Fi network extending up to 500 m in each direction.

Hughes Express Wi-Fi in Mexico

The integration of optimized high throughput satellite (HTS) and the powerful JUPITER
VSAT with advanced wireless Wi-Fi radio access technologies provides a reliable and cost-
effective solution for the fast deployment of new broadband Internet connectivity services to
geographically dispersed underserved and unserved areas where terrestrial infrastructure is not
available, is highly unreliable or is not feasible to implement due to high CAPEX and low average
revenue per user (ARPU). Hughes Express Wi-Fi has been successfully tested and implemented
in Mexico. It provides guaranteed network performance and high-quality broadband service
to end users.

iMlango, Avanti connecting schools in Kenya

iMlango provides a learning platform that delivers content in multiple formats to students and
teachers. The high-speed reliable broadband connectivity delivered in each of the iMlango
schools is provided over Avanti’s super-fast HTS Ka-band satellites that have 100 per cent
coverage across Kenya, thus ensuring that even the most remote/rural schools are included.

SES (satellite operator) providing 3G in Chad

Many parts of Chad, a landlocked country in north-central Africa, have been notoriously hard to
reach for MNOs, due to its sheer vastness, lack of terrestrial infrastructure and extensive flooding
during rainy seasons. By leveraging SES’s fully managed satellite backhaul service driven by
its multi-orbit fleet, a mobile operator, Tigo Chad, has been able to expand coverage into the
country. Using a combination of SES’s high-capacity, low-latency O3b MEO constellation, and
GSO satellites, the solution allowed Tigo Chad to introduce 2G and upgrade to 3G in rural and
previously unserved areas.

SES MEO backhaul in the Democratic Republic of the Congo

Gilat Telecom has expanded its partnership with SES to provide more bandwidth to rural
areas. It extends services to customers such as Orange DRC in the Democratic Republic of the
Congo (DRC) – a landlocked country – beyond Kinshasa and Lubumbashi, reaching unserved
or underserved Kisangani, Mbuji-Mayi and Bunia. Under the new agreement, Gilat Telecom is
using multiple Gbit/s of bandwidth on the O3b MEO system and is now also adding services
via SES’s GEO satellites.

138
ITU-D SG1 Document SG1RGQ/318+Annexes from ESOA

Output Report on ITU D Question 1/1 53


Strategies and policies for the deployment of broadband in developing countries

From 3G to 4G in Peru with SES

In Iquitos, Peru, SES partnered with Axesat to provide a managed network solution using SES’s
O3b MEO satellites to upgrade ENTEL’s network in the city from 3G to 4G-LTE. Iquitos, Peru’s
sixth-largest city, borders the Peruvian Amazon, and is only accessible by air or water. As a
gateway to the Amazon rainforest, the city of close to 500 000 residents is a major centre for
finance, sales, transportation and tourism, with a growing market in timber, petroleum, and oil
and gas production.

Supporting faster 3G services in the Central African Republic with SES

Orange will be using the SES IP Transit solution to deliver faster 3G services and better-quality
Internet connections for enterprises. The solution will be delivered by SES, using its MEO fleet
and extensive ground infrastructure. Customers of Orange Central African Republic will have
access to unparalleled availability and speed of Internet services, which has not been available
earlier in the country with its challenging terrain and lack of terrestrial infrastructure, resulting
in low Internet penetration.

Burkina Faso connectivity solution with SES

An entire end-to-end solution is being provided by SES, including terrestrial wireless


communication and integration with the already available fibre backbone network to connect
881 sites in Burkina Faso, enhancing connectivity and providing e-government, e-education
and e-health services. This project is part of an agreement concluded with Lux Dev and the
Government of Burkina Faso to roll out nationwide connectivity and further drive innovation in
the country. Several entities came together to make this a reality, including Lux Dev (funding),
the Government of Burkina Faso (funding and owning the project on the ground) and SES.

TeleGlobal-Bakti project in Indonesia by SES

Under an agreement signed in 2019, Teleglobal and SES Networks will be partnering with
the Indonesian Ministry of Communication and Information Technology’s universal service
obligation (USO) project via its USO agency, Badan Aksesibilitas Telekomunikasi dan Informasi
(BAKTI), to provide broadband Internet access and mobile backhaul services to up to 150 000
sites in remote parts of the country. It will use 1.3 GHz of capacity on SES’s high-throughput
satellite (HTS), SES‑12, operating in geostationary Earth orbit.

Intelsat community Wi-Fi for refugee camp in Ghana

Globally there are nearly 25.4 million refugees, over half of whom are under the age of 18. At the
end of 2016, Africa hosted 5 531 693 refugees. This was surpassed only by Asia, with 8 608 597
refugees. The lack of digital connectivity increases the vulnerability of people who were forced
to flee by depriving them of opportunities for communication, information, education, financial
transactions, and self/community/social development work.

Intelsat ‘Internet for All’ pilot project in South Africa

The ‘Internet for All’ initiative brings together stakeholders from the public and private sectors,
non-profit organizations, academia, international organizations, donors and civil society to
create multistakeholder partnerships aimed at bridging the digital divide. Intelsat has developed
a pilot programme aimed at testing commercial and social scenarios that may impact the roll-
out of the ‘Internet for All’ programme to rural areas in developing countries.

54 Output Report on ITU D Question 1/1


Office of the Director Office of Deputy Director and Regional Presence
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ISBN 978-92-61-34471-9

9 789261 344719

Published in Switzerland
Geneva, 2021

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