Economic and Social benefits- ISPAB

ECONOMIC AND SOCIAL BENEFITS
OF
BROADBAND
INTERNET SERVICE PROVIDE ASSOCIATION OF
BANGLADESH
MISSION AND OBJECTIVES OF ISPAB
 Mission:
 To Promote Broadband Internet for All.
 Objectives:
• To develop & establish a secure & robust infrastructure for internet penetration.
• To promote Rural Broadband by providing reliable and affordable broadband access to rural and remote areas through a combination of
technologies.
• To collaborate and associate with related National and International Organizations for update on latest technologies.
• Arranging training, awareness programs, exhibition & conference visits for ISPAB members, partially funded by Government and Development
agencies
• To achieve broadband penetration of 40% by 2020
MEMBERS OF ISPAB
Types of ISP Number of ISP Members of ISPAB
Nationwide ISP 117 77
Central Zone ISP 73 11
Zonal ISP 57 09
ADMINISTRATIVE DATA
Population 14,42,32,586
Division 09
Districts 64
Upazillas 491
Number of Household 32,173,203
Male 72,208,792
Female 72, 023,794
DATA USAGE : SMART PHONE VS LAPTOP/DESKTOP
0 10 20 30 40 50 60
Video Streaming
Social Networking
Instant Messaging
Browse/Search
Email
Music Streaming
Banking
Online Games
Cloud Stroage
E-Commerce
ISP's Telco's
SOME MORE DATA
Desktop Users 9 m
Laptop Users 6 m
Smart Phone Users 42 m
HYPE VERSUS REALITY
Industry BW Total Users(m)
Telco’s 135 Gbps 71.883
ISP’s 385 Gbps 5.259
Total 520 Gbps 77.142
Visible ASNs: Customer Populations (Est.)
https://stats.labs.apnic.net/cgi-bin/aspop?c=BD
Industry Total Users
Telco’s 10,676,705
ISP’s 11,065,477
Total 2,17,42,182
WHY BROADBAND?
 The World Bank used a cross sectional analysis to examine the impact of various ICTs including fixed broadband on
GDP growth during the period 1980-2006 for 120 developing and developed countries. The study concludes that ‘a
10 percentage point increase in fixed broadband penetration would increase GDP growth by 1.21% in developed
economies and 1.38% in developing ones’.
 In contrast, Thomas and Garbacz (2011), assert that ‘every 10 percentage point increase in mobile broadband
household penetration reduces GDP per household by 0.52’.
 The study concludes that this result could be due to nonproductive applications of mobile broadband technology
where it might be an uneconomic substitute or complement to existing
fixed broadband.
 Another truth has been accepted worldwide –
‘each 1000 fixed-broadband connection creates 8 new jobs’.
0.21
0.78
1.19
0.4
0.93
1.8
0
1
2
Mobile Internet Broadband
GDP growth impact
Per 10 Percentage Point Increase
1980-2011
Developed Countries
Developing Countries
NEED FOR A BROADBAND NETWORK
Public Internet
Access
e-education
e-governance
e-healthcare
• Land Records
• Birth/Death Certificates
• NID based services
• Online medical consultations
• Medical records
• Quality education
delivery
• Digital literacy
programmes
• Availability of Internet
services to villages
• Delivery of Internet by
Common Service Centres
e-commerce
Employment
Generation
• Rural banking through
online transactions and
ATMs
• Online purchases and
transactions for bill
payments, tickets etc.
• Large scale employment
generation through operation
and maintenance activities, BPO
services, rural entrepreneurship
etc.
MULTIPLE ECONOMIC IMPACTS
INTRODUCTION OF NATIONAL BROADBAND PLAN BY
DEVELOPED AND DEVELOPING COUNTRIES
INTERNATIONAL INITIATIVES FOR NBP
Name of Country Brief of National Broadband Plan
Australia • Government investment of USD 38 billion in National Broadband Network
(NBN).
• 90% of population shall be provided broadband access at 100 Mbps speed
with fiber based network.
Singapore • Next Generation Broadband Plan (NGBP) started in 2006 with Government
subsidy.
• Open Access Wholesale to 95% population by 2012 with initial speed 100
Mbps rising to 1 Gbps using FTTH network.
Malaysia • High speed broadband network to connect 1.3 million homes in major cities on
FTTH/FTTC network by 2012.
• Government to invest USD 0.7 billion out of total cost 3.2 billion USD.
• Government to invest additional USD 250 million in rural areas.
INTERNATIONAL INITIATIVES FOR NBP
EU EC proposes USD 12B for Broadband Investment to achieve Digital Agenda for
Europe to get Broadband for All by 2020
Sweden • Local municipals to invest more than 180 million USD to deploy 1.2 million km
of fiber in and around Stockholm.
United
Kingdom
• Government invested 1.6 billion USD for development of NGA (FTTP) in rural
areas (1/3rd of UK).
• Aim is to bring the superfast broadband (100Mbps) to 90% of population by
2014 and to “All” by 2015.
• Private investment is expected to cover 70% (3.5B USD) of optical fiber cost by
2017.
United States • There is a National Broadband Plan to provide the nationwide broadband
including rural areas.
• Government to provide USD 11.6 billion under various broadband programs.
• Further USD 2.5 billion is made available for grants loan and loan guarantees.
CHALLENGES OF BROADBAND SECTOR OF BANGLADESH
 New ISP Guideline
 ILDTS Policy : 4 layers
 Infrastructure Sharing Guideline of 2008
 Tariff Policy
 Local Content: Lack of locally relevant content
 Price: Price for Broadband access at rural area.
 Cost of connectivity: High costs of transmission; Absence of National Broadband Network
 Fiscal policies: High taxes and duties, and lack of fiscal incentives for faster Broadband growth.
 Illegal ISPs: 4500+
RECOMMENDATIONS
We recommend the following actions to be taken to ensure higher broadband penetration in Bangladesh:
 Omit the IIG from the value chain.
 Declare blanket tax holiday for internet related services.
 Fix ceiling and floor price for NTTN service.
 Award more NTTN licenses to keep the market competitive.
 Disallow companies to get to multiple license within the value chain.
 Keep the government-built transmission network free to use for licensed ISP.
 Deploy more government investment in nationwide fiber optics backbone infrastructure.
 Shutdown all Illegal ISPs
CONCLUSIONS
Available data, studies, researches and practical outcomes suggest Broadband is the most appropriate sector that
needed to be addressed with highest priority to ensure sustainable economic growth both in developed and
developing countries.
While a 10 percentage point increase in fixed-broadband penetration boosts GDP growth by 1.38%, same amount
of increase in mobile-broadband decrees GDP by .52% per household. These findings are not at all surprizing,
given the extravagant usage of mobile broadband in comparatively non-productive activities like social-networking,
video-streaming or instant messaging. At the same time, a significant portion of fixed-broadband traffic is dedicated
in economically fruitful activities like Ecommerce, Banking, Email Correspondences or cloud storage.
Even the current state of Fixed-Broadband in Bangladesh has it’s own significance too - despite of visible gap
between the number of mobile and fixed broadband users per available data, APNIC recognises an almost 50/50
balance between Telco & ISP users in Bangladesh.
Whereas, each thousand fixed-broadband creates 8 new jobs, ensuring broadband connections for more than 32
million households, with virtually equal male/female ratio, means creating 256 thousand employment opportunities
accordingly.
To reach near to this target, we, as a country like Bangladesh, should follow the development initiatives taken by
countries like Singapore or Malaysia.
THANK YOU
1 of 17

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Economic and Social benefits- ISPAB

  • 1. ECONOMIC AND SOCIAL BENEFITS OF BROADBAND INTERNET SERVICE PROVIDE ASSOCIATION OF BANGLADESH
  • 2. MISSION AND OBJECTIVES OF ISPAB  Mission:  To Promote Broadband Internet for All.  Objectives: • To develop & establish a secure & robust infrastructure for internet penetration. • To promote Rural Broadband by providing reliable and affordable broadband access to rural and remote areas through a combination of technologies. • To collaborate and associate with related National and International Organizations for update on latest technologies. • Arranging training, awareness programs, exhibition & conference visits for ISPAB members, partially funded by Government and Development agencies • To achieve broadband penetration of 40% by 2020
  • 3. MEMBERS OF ISPAB Types of ISP Number of ISP Members of ISPAB Nationwide ISP 117 77 Central Zone ISP 73 11 Zonal ISP 57 09
  • 4. ADMINISTRATIVE DATA Population 14,42,32,586 Division 09 Districts 64 Upazillas 491 Number of Household 32,173,203 Male 72,208,792 Female 72, 023,794
  • 5. DATA USAGE : SMART PHONE VS LAPTOP/DESKTOP 0 10 20 30 40 50 60 Video Streaming Social Networking Instant Messaging Browse/Search Email Music Streaming Banking Online Games Cloud Stroage E-Commerce ISP's Telco's
  • 6. SOME MORE DATA Desktop Users 9 m Laptop Users 6 m Smart Phone Users 42 m
  • 7. HYPE VERSUS REALITY Industry BW Total Users(m) Telco’s 135 Gbps 71.883 ISP’s 385 Gbps 5.259 Total 520 Gbps 77.142 Visible ASNs: Customer Populations (Est.) https://stats.labs.apnic.net/cgi-bin/aspop?c=BD Industry Total Users Telco’s 10,676,705 ISP’s 11,065,477 Total 2,17,42,182
  • 8. WHY BROADBAND?  The World Bank used a cross sectional analysis to examine the impact of various ICTs including fixed broadband on GDP growth during the period 1980-2006 for 120 developing and developed countries. The study concludes that ‘a 10 percentage point increase in fixed broadband penetration would increase GDP growth by 1.21% in developed economies and 1.38% in developing ones’.  In contrast, Thomas and Garbacz (2011), assert that ‘every 10 percentage point increase in mobile broadband household penetration reduces GDP per household by 0.52’.  The study concludes that this result could be due to nonproductive applications of mobile broadband technology where it might be an uneconomic substitute or complement to existing fixed broadband.  Another truth has been accepted worldwide – ‘each 1000 fixed-broadband connection creates 8 new jobs’. 0.21 0.78 1.19 0.4 0.93 1.8 0 1 2 Mobile Internet Broadband GDP growth impact Per 10 Percentage Point Increase 1980-2011 Developed Countries Developing Countries
  • 9. NEED FOR A BROADBAND NETWORK Public Internet Access e-education e-governance e-healthcare • Land Records • Birth/Death Certificates • NID based services • Online medical consultations • Medical records • Quality education delivery • Digital literacy programmes • Availability of Internet services to villages • Delivery of Internet by Common Service Centres e-commerce Employment Generation • Rural banking through online transactions and ATMs • Online purchases and transactions for bill payments, tickets etc. • Large scale employment generation through operation and maintenance activities, BPO services, rural entrepreneurship etc.
  • 11. INTRODUCTION OF NATIONAL BROADBAND PLAN BY DEVELOPED AND DEVELOPING COUNTRIES
  • 12. INTERNATIONAL INITIATIVES FOR NBP Name of Country Brief of National Broadband Plan Australia • Government investment of USD 38 billion in National Broadband Network (NBN). • 90% of population shall be provided broadband access at 100 Mbps speed with fiber based network. Singapore • Next Generation Broadband Plan (NGBP) started in 2006 with Government subsidy. • Open Access Wholesale to 95% population by 2012 with initial speed 100 Mbps rising to 1 Gbps using FTTH network. Malaysia • High speed broadband network to connect 1.3 million homes in major cities on FTTH/FTTC network by 2012. • Government to invest USD 0.7 billion out of total cost 3.2 billion USD. • Government to invest additional USD 250 million in rural areas.
  • 13. INTERNATIONAL INITIATIVES FOR NBP EU EC proposes USD 12B for Broadband Investment to achieve Digital Agenda for Europe to get Broadband for All by 2020 Sweden • Local municipals to invest more than 180 million USD to deploy 1.2 million km of fiber in and around Stockholm. United Kingdom • Government invested 1.6 billion USD for development of NGA (FTTP) in rural areas (1/3rd of UK). • Aim is to bring the superfast broadband (100Mbps) to 90% of population by 2014 and to “All” by 2015. • Private investment is expected to cover 70% (3.5B USD) of optical fiber cost by 2017. United States • There is a National Broadband Plan to provide the nationwide broadband including rural areas. • Government to provide USD 11.6 billion under various broadband programs. • Further USD 2.5 billion is made available for grants loan and loan guarantees.
  • 14. CHALLENGES OF BROADBAND SECTOR OF BANGLADESH  New ISP Guideline  ILDTS Policy : 4 layers  Infrastructure Sharing Guideline of 2008  Tariff Policy  Local Content: Lack of locally relevant content  Price: Price for Broadband access at rural area.  Cost of connectivity: High costs of transmission; Absence of National Broadband Network  Fiscal policies: High taxes and duties, and lack of fiscal incentives for faster Broadband growth.  Illegal ISPs: 4500+
  • 15. RECOMMENDATIONS We recommend the following actions to be taken to ensure higher broadband penetration in Bangladesh:  Omit the IIG from the value chain.  Declare blanket tax holiday for internet related services.  Fix ceiling and floor price for NTTN service.  Award more NTTN licenses to keep the market competitive.  Disallow companies to get to multiple license within the value chain.  Keep the government-built transmission network free to use for licensed ISP.  Deploy more government investment in nationwide fiber optics backbone infrastructure.  Shutdown all Illegal ISPs
  • 16. CONCLUSIONS Available data, studies, researches and practical outcomes suggest Broadband is the most appropriate sector that needed to be addressed with highest priority to ensure sustainable economic growth both in developed and developing countries. While a 10 percentage point increase in fixed-broadband penetration boosts GDP growth by 1.38%, same amount of increase in mobile-broadband decrees GDP by .52% per household. These findings are not at all surprizing, given the extravagant usage of mobile broadband in comparatively non-productive activities like social-networking, video-streaming or instant messaging. At the same time, a significant portion of fixed-broadband traffic is dedicated in economically fruitful activities like Ecommerce, Banking, Email Correspondences or cloud storage. Even the current state of Fixed-Broadband in Bangladesh has it’s own significance too - despite of visible gap between the number of mobile and fixed broadband users per available data, APNIC recognises an almost 50/50 balance between Telco & ISP users in Bangladesh. Whereas, each thousand fixed-broadband creates 8 new jobs, ensuring broadband connections for more than 32 million households, with virtually equal male/female ratio, means creating 256 thousand employment opportunities accordingly. To reach near to this target, we, as a country like Bangladesh, should follow the development initiatives taken by countries like Singapore or Malaysia.