1. Building Broadband for Development January 21, 2010

2. Agenda Trends and Economic Importance of Broadband Building Broadband –Study commissioned in first round of KTF awards and completed in January 2010 Future Broadband Work –Broadband Strategies Toolkit (funding approved by the second round of KTF) –Country-level broadband TA (e.g. Egypt) 2

3. 3 Trends (1/2) # of countries with commercially-available broadband

4. 4 Trends (2/2) Broadband Penetration is closely associated with per capita income.

5. 5 Economic Impact Broadband contributes to growth and opens up new opportunities, for which it deserves a central role in development strategies. Impact on GDP of a 10% increase in penetration of ICTs

6. Rationale for Public Intervention? 6 Externalities Spillover effect Network effect Public Goods Aspects Benefiting all the users simultaneously Largest platform to deliver information Platform to deliver public and social services

7. Building Broadband 7 Table of contents 1. Status and Importance of Broadband 2. Rethinking broadband as an ecosystem 3. Broadband market development in the Republic of Korea (Ovum) 4. Experiences of other broadband leaders (Prof. Rob Frieden) 5. Strategies to build the broadband ecosystem 6. Policies and programs to build broadband 7. Building blocks for broadband Team: Yongsoo Kim (TTL), Tim Kelly, Siddhartha Raja

8. Rethinking Broadband as an ecosystem 8

9. Learning from the Pros 9 Broadband penetration in selected economies, 2000-09 Among the seven economies studied, all have reached a high level of market penetration Korea stands out for “defying the S curve” Some early leaders, like US, have fallen behind

10. Different routes, similar ends 10 CountryUnique idea/lesson FinlandAbsence of monopoly incumbent meant heavy reliance on market forces. Recently made broadband a “legal right” FranceService-level competition, climbing the “ladder of investment” JapanIntense deployment of fiber optic and wireless broadband Korea (Rep.) Public Private Partnership, with government playing key early role in demand aggregation and strategy development SwedenCombination of demand- and supply-side policies, municipal fiber rollout UKService- and facilities-based competition, structural separation USStewardship for Internet, laissez faire approach but with the comfort of facilities-based competition

11. Common elements 11 Components of the ecosystem FinlandFranceJapanKorea, Rep. SwedenU. K.U.S.A. Overall visionBroadband strategies Planned Networks and services Facilities competition Service competition Wireless broadband Financing rollout Planned Applications and users Content and media promotion Demand facilitation

12. Sequencing in Korea 12 Greater Gov’t involvement in early stages US$32bn investment Progressive shift to higher performance infrastructure

13. Policies and Programs 13 Early Stage: Promote Supply-side pump priming, including releasing spectrum, licensing competition, backbone networks, reducing investment costs Demand side facilitation, such as digital literacy, demand aggregation, low-cost devices Mid Stage: Oversee Market entry, including local-loop unbundling Regulate unfair practices Late Stage: Universalize Consider defining broadband as a universal service Subsidizing roll-out in rural areas

14. Building Blocks for Broadband 14 Mobile and broadband, penetration rate per 100 inhabs, by year since inception 1.Be visionary, yet flexible 2.Use competition to promote market growth 3.Facilitate demand

15. Broadband Strategies Toolkit 15 Phase I: Handbook (2010 – mid 2011) –1. The case for broadband –2. Broadband strategies and policies –3. Making broadband work for development –Executive Summaries of other modules Phase 2: Toolkit (mid 2011 – 2012) –4. Regulatory reform and legal issues –5. Building connectivity –6. Extending access through Public / Private Initiatives –7. Facilitating Demand Phase 3: Dissemination (2012 – 2013) –Training Materials –Self-assessment tool for policy-makers