Infrastructure sharing in bangladesh bottlenecks and way forward

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Infrastructure sharing in bangladesh bottlenecks and way forward

  1. 1. Infrastructure sharing in Bangladesh: Bottlenecks and way forward Abu Saeed Khan Senior Policy Fellow, LIRNEasia @ Westin, Dhaka. April 20, 2014
  2. 2. Bangladesh in regional ICT Development Index (IDI) Source: Measuring the Information Society 2013, ITU.
  3. 3. Bangladesh: Improved in ranking, yet remains at bottom of the list. Source:MeasuringtheInformationSociety2013,ITU.
  4. 4. Monthly median IP Transit prices (10GE) per Mbps (Q2 2013) Source: TeleGeography $1.26 $1.26 $1.27 $1.27 $1.27 $1.35 $1.62 $1.62 $1.71 $1.71 $1.71 $1.74 $1.28 $1.28 $1.29 $1.29 $1.30 $1.30 $1.50 $1.56 $1.56 $1.63 $1.64 $2.86 $4.00 $13.00 $16.49 $18.00 $20.00 $21.34 $22.40 $26.85 $32.50 $40.00 $49.98
  5. 5. Two solutions: Diversify, keep diversifying! Poor diversity Exceptions
  6. 6. Submarine networks = Terrestrial networks Courtesy: Ciena Evolution of technology = Evolution of policy
  7. 7. International Internet bandwidth (Mbps) consumption in South Asia Country 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bangladesh 172 348 642 1,264 3,637 7,148 13,647 22,083 38,085 Bhutan 7 22 30 75 116 330 485 640 940 India 8,178 16,201 35,682 76,612 193,993 335,858 649,977 914,086 1,265,928 Nepal 35 41 85 199 1,085 1,775 4,865 7,960 12,300 Pakistan 1,234 2,555 4,852 9,014 29,079 58,939 104,920 136,695 195,325 Sri Lanka 496 688 1,045 2,453 4,465 10,661 21,032 33,070 53,244 Notes: Figures represent Internet bandwidth connected across international borders. Data as of mid-year. Source: TeleGeography
  8. 8. South Asia: Gbps Club of >1.5 Tbps (2013) Country* (IDI rank) 2005 2006 2007 2008 2009 2010 2011 2012 2013 India (121) 8,178 16,201 35,682 76,612 193,993 335,858 649,977 914,086 1,265,928 (82%) Pakistan (129) 1,234 2,555 4,852 9,014 29,079 58,939 104,920 136,695 195,325 (13%) Sri Lanka (107) 496 688 1,045 2,453 4,465 10,661 21,032 33,070 53,244 (3%) Bangladesh (135) 172 348 642 1,264 3,637 7,148 13,647 22,083 38,085 (2%) *Source: TeleGeography. Figures represent Internet bandwidth connected across international borders. Data as of mid-year. ICT Development Index (IDI) global rank: Measuring the Information Society 2013, ITU.
  9. 9. TheGlobalInformation TechnologyReport2013(WEF)
  10. 10. Mobile launched in 1997: Telcos didn’t have fiber transmission*
  11. 11. Investing in Different Network Layers
  12. 12. >US$400millioninvested
  13. 13. OFC TX networks in Bangladesh Source: BTRC website (Retrieved on April 19, 2014)
  14. 14. Revised Infrastructure Sharing Guidelines Missed the opportunity of open access
  15. 15. 2008 2011 Original and amended telecom Infrastructure Sharing Guidelines
  16. 16. From competition to captive market
  17. 17. Impact analyses of amended guideline • NTTNs not necessarily own fiber infrastructure. Yet, they are exclusive providers of transmission services. – Public sector monopoly (BTCL) and private sector duopoly (Two NTTNs). – BTCL also operates access and gateways. • Airtel and Robi. – Increased operating costs and slower network rollout. • Grameenphone, Banglalink and CityCell – Investment (>US$ 400 million) under jeopardy. • The entire telecom sector – Reliability and affordability of fixed and mobile broadband is compromised. – Discouraging for foreign investments in infrastructure development.
  18. 18. Mobile industry wrote to MOPT (July 20, 2011)
  19. 19. ISP Association wrote to MOPT (October 16, 2011)
  20. 20. Barrier to affordable broadband (Digital Bangladesh?) Wasted the opportunity of open access
  21. 21. Perfect candidate for open access (Domestic and International)
  22. 22. State-owned PTT Closed access
  23. 23. Open access is not a stranger to Bangladesh Government Political goodwill for needed for technical imperatives
  24. 24. Courtesy: Ciena Internet’s infrastructure fragility and cost
  25. 25. Tweet from Renesys on November 16, 2012: “BTCL, Mango down. Fiber@Home uses terrestrial conx to India, Link3 stays on satellite up.”
  26. 26. Routine maintenance of SMW4 on January 23, 2013 20:14 to 21:53 UTC. BTCL and Mango are completely offline during the downtime. 1Asia, Aamra, NovoCom and Fiber@Home experienced increases in their traffic as customers automatically shift traffic to the surviving connection.
  27. 27. Bangladesh is among 10 emerging countries hot on the heels of the BRICS (March 26, 2014) • Coface identifies only 10 "new emerging" countries which meet all the criteria. However, these countries are not the same in terms of their business environments - the weaknesses of which can stifle growth. This leads Coface to distinguish two groups in the "new emerging" countries: – Colombia, Indonesia, Peru, the Philippines and Sri Lanka have a sound business climate (A4 or B), similar to that of the BRIC countries today. – Kenya, Tanzania, Zambia, Bangladesh and Ethiopia have very difficult (C) or extremely difficult (D) business environments which could hamper their growth prospects. Source: Coface press release.
  28. 28. A note of encouragement • Naturally, it will be more difficult for the second group of countries, who could take longer to fully realise their growth potential. • However, their business environment problems are relative: in 2001, the quality of governance in Brazil, China, India and Russia was comparable to that of Kenya, Tanzania, Zambia, Bangladesh and Ethiopia today. Julien Marcilly, Head of country risk at Coface.
  29. 29. Next steps in telecom: Back to basics • Restore Infrastructure Sharing Guidelines of 2008. – Be technology-neutral. – Encourage active infrastructure sharing. • Unbundle BTCL’s transmission from access networks. – Ensure the ITCs access to SASEC network. – Explore Structural Separation of private networks. • Unified Licenses with Open Access for NTTNs. – Reduce regulatory fees. – Tax-incentive for co-locating data centers. • Foreign carriers to trade IP Transit in Bangladesh – Declare BSCCL as a Facilities Based Operator. • Issue more Facilities Based Licenses.
  30. 30. Today’s policy shapes tomorrow Picture: The Daily Star

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