Numerous studies from bodies such as the World Bank have established that access to broadband services can provide both economic and societal benefits, and there is now no question that broadband services drive growth and productivity in a market. As such, interest among public policy makers in promoting the availability of broadband networks – and especially high-speed broadband networks – has grown considerably both globally and in the Asia–Pacific region. In particular, several governments in the Asia–Pacific have chosen to intervene in a number of markets, with the most high profile of these interventions focusing on the deployment of infrastructure. For example, the public sector has invested in, or has announced plans to invest in, the roll-out of high-speed broadband networks in Australia, Malaysia, New Zealand and Singapore.
Other policy makers and national regulatory authorities may be tempted to follow this trend and invest in the roll-out of similar infrastructure in their own markets, given the extensive publicity afforded to these initiatives. However, it is essential that they have a sufficient understanding of the supply- and demand-side barriers facing the development of the broadband market, as well as the effect of these barriers on the future evolution of the market. These barriers could include:
- on the supply side – limitations or bottlenecks across any part of the network (local access, backhaul, core or international networks), or the unavailability of suitable spectrum for wireless broadband services such as WiMAX or HSPA
- on the demand side – high prices for broadband access or PCs, lack of coverage leading to constrained demand, lack of locally relevant content and applications to encourage broadband usage, or lack of education on the benefits of IT and broadband among individual users and businesses.
Based on the identified barriers, a range of interventions or action areas can be defined, as illustrated in Figure 1 below, to drive the achievement of overarching policy objectives for the broadband market. For example, in developing markets, it is important to balance the need for access to some form of broadband services in more rural areas against the desire for high-speed, or next-generation, broadband services in dense urban areas. This issue can also arise in more developed markets, where basic broadband access is widely available but higher-speed services are only available in limited areas, raising concerns over the emergence of a new digital divide.
Figure 1: Key factors and example actions in developing a national broadband plan [Source: Analysys Mason]
Finally, once the interventions or action areas have been defined, they should be assessed in terms of any interdependencies or synergies that could be achieved in their implementation, as well as their impact, and the duration of the impact, on the market. Furthermore, consideration needs to be given to the expected implementation cost and timeline for these actions. Once this assessment is complete, it is possible to prepare a comprehensive national broadband plan based around these action areas, which will support the development of a vibrant, competitive and sustainable broadband sector. This plan should be a dynamic document – one that is constantly reviewed and refined based on the evolving landscape – to ensure that it encourages the sector’s development in the most effective manner.
Analysys Mason has an unrivalled track record of assisting regulators and policy makers in developing broadband initiatives across the world and within the Asia–Pacific region. We have been at the forefront of both the design and the implementation of public-sector interventions in broadband, including programmes involving next-generation super-fast broadband access. In the Asia–Pacific region, we recently assisted AITI in Brunei Darussalam in the development of a broadband strategy and have also advised two other regional regulators on the development of their national broadband plans. We also assisted the IDA in Singapore during the conceptual design phase of the country’s Next Generation National Broadband Network.
For more information about Analysys Mason’s capabilities in developing national broadband plans, please contact Paul Sumner, Senior Manager, in our Singapore office, at paul.sumner@analysysmason.com