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Broadband Internet

Electricity and the internet: two markets, one big opportunity

Anna Lerner's picture
The markets for rural energy access and internet connectivity are ripe for disruption – and increasingly, we’re seeing benefit from combining the offerings.
 
Traditionally, power and broadband industries have been dominated by large incumbent operators, often involving a state-owned enterprise. Today, new business models are emerging, breaking market barriers to jointly provide energy access and broadband connectivity to consumers.
 
As highlighted in the World Development Report 2016, access to internet has the potential to boost growth, expand economic opportunities, and improve service delivery. The digital economy is growing at 10% a year—significantly faster than the global economy as a whole. Growth in the digital economy is even higher in developing markets: 15 to 25% per year (Boston Consulting Group).
 
To make sure everyone benefits, coverage needs to be extended to the roughly four billion people that still lack access to the internet. In a testing phase, Facebook has experimented with flying drones and Google has released balloons to provide internet to remote populations.
 
But as cool as they might sound, these innovations do nothing for the one billion people who still live off the grid… and don’t have access to the electricity you need to use the internet in the first place! The findings of the Internet Inclusion Summit panel which the World Bank joined recently put this nicely: “without electricity, internet is only a black hole”.
 
That’s why efforts to expand electricity and broadband access should go hand in hand: close coordination between the energy and ICT sectors is probably one of the most efficient and sensible ways of making sure rural populations in low-income countries can reap the benefits of digital development. This thinking is also reflected in a new generation of disruptive telecom infrastructure projects.

Watching Tanzania leapfrog the digital divide

Boutheina Guermazi's picture
 
Digital opportunities are the fuel of the new economy. They have significant impact on both the economy and society. They contribute to growth, create jobs, are a key enabler of increased productivity, and have significant impact on inclusion and poverty reduction. They also provide the ability to leapfrog and accelerate development in key sectors like health and education.
 
Why is this important?  It is important because “going digital” is not a temporary phenomenon. It is a revolution—what the World Economic Forum calls “the 4th industrial revolution”. It is happening before our eyes at a dizzying pace, disrupting every aspect of business, government and individuals’ lives. And it is happening in Tanzania.

Media (R)evolutions: Making broadband policy universal for inclusive development

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In order to ensure economic and social development is inclusive, all citizens, including the poor and those living in rural areas, must have access to information. Communication services, which includes mobile broadband, remains a crucial element in this goal. However, cost, competition, demand and affordability, and customer distribution (among others) all influence how telecommunication firms view the feasibility of providing specific technology services.

National broadband plans (NBPs) and universal access and service (UAS) policies that provide regulation, financing, and access goals are essential to ensuring that a country can provide broadband services. These policies, which can be tailored to ensure they will provide access to poor and rural communities, should not be viewed as an obligation but an opportunity for growth. The World Bank acknowledges this in the 2016 World Development Report: Digital Dividends:

Government policies and regulation of the internet help shape the digital economy. Particularly through their policies for the ICT sector, governments and regulatory agencies create an enabling environment for the private sector to build networks, develop services, and provide content and applications for users. Increasingly, governments seek to cooperate across borders on issues such as cybersecurity, privacy, and cross-border data flows. Internet-enabling policies have evolved over time, especially those for the ICT sector [...] Broadband internet, in particular, is seen as a general-purpose technology, essential for the competitiveness of nations, and governments have invested more than US$50 billion in broadband networks since 2009 as part of stimulus packages. Most also have national broadband plans.


With this in mind, the Broadband Commission tracks national progress towards a set of targets, the first of which is to make broadband policy universal. Advocacy target 1 states, “All countries should have a National Broadband Plan or strategy or include broadband in their UAS definitions.” According to its latest annual report, The State of Broadband: Broadband catalyzing sustainable development, growth in the number of countries with NBPs has progressed over the past eight-year period, but has stabilized in the past three. There are now 151 countries with a NBP, and 38 have not yet developed one. Azerbaijan is the most recent addition to the list of countries with an approved NBP, and another seven countries are planning to introduce one: Cape Verde, Cuba, Dominica, Iraq, Solomon Islands, Saint Lucia and Togo.

Media (R)evolutions: Despite tremendous growth in mobile broadband, affordability remains an issue in least developed countries

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In recent years, as the number of mobile-cellular subscriptions surpassed 7.1 billion and mobile network population coverage approached close to 95%, growth in mobile subscriptions has greatly exceeded the growth in fixed connections, especially in developing countries. For many low-income groups, mobile devices are their only window to internet access.

The tremendous growth has not only contributed to greater access rates, but also to a fall in prices of mobile-cellular services around the world as providers seek to be competitive. Over the past year, the decrease in mobile-broadband prices worldwide made it, on average, 20 – 30% more affordable.  In least developed countries (LDCs), the mobile-cellular price basket continued to fall to 14% of GNI per capita by the end of 2014, compared with 29% in 2010.

Nevertheless, as the following graph from Measuring the Information Society Report 2015 by the International Telecommunication Union (ITU) illustrates, LDCs have a long way to go in order to achieve affordable mobile-broadband packages. The graph shows, the average prices for pre- and post-paid broadband connections on computers and mobile devices, as measured against monthly GNI per capita, in 2013 and 2014. 

Among the options, prepaid mobile-broadband is the most affordable. In this context, it will be important for broadband providers to offer more new services and packages for low-income groups, such as allowing users to buy data in small volumes.  

Mobile broadband prices

Pushing water downhill: Considering ICT PPPs

Jeff Delmon's picture
Students using new high-speed Internet in Tonga. Photo: World Bank Group

For private financiers, official government support to information and communications technology (ICT) projects might seem like trying to push water downhill. After all, isn’t ICT incredibly profitable? What’s the point of a public-private partnership (PPP) in this sector, anyway?

Here’s the rest of that familiar argument: Government should stay out of the way and let the private sector carry the communications sector; it is a waste of effort and inefficient to try to push forward something that has its own momentum. Like a rushing river, the naysayers conclude, ICT needs no help advancing down its inevitable course.

It sounds reasonable in theory, but in practice, that approach just doesn’t work. The government needs to guide the river down the best course for the citizens it serves, building a weir or mill to help the river provide maximum benefits to the people who need it. And, just as water is the foundation of life, communication technologies are necessary to prosper in today’s world. Knowledge is power. And specifically, access to markets is improved by mobile phones, as is access to banking services, finance, investment opportunities, and education.

Successful ICT strategies usher in jobs, empowerment and economic growth.

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

The State of Broadband 2015: Broadband as a Foundation for Sustainable Development
Broadband Commission
Broadband Internet is failing to reach those who could benefit most, with Internet access reaching near-saturation in the world’s rich nations but not advancing fast enough to benefit the billions of people living in the developing world, according to the 2015 edition of the State of Broadband report. Released today just ahead of the forthcoming SDG Summit in New York and the parallel meeting of the Broadband Commission for Sustainable Development on September 26, the report reveals that 57% of the world’s people remain offline and unable to take advantage of the enormous economic and social benefits the Internet can offer.

POWER PEOPLE PLANET: Seizing Africa’s energy and climate opportunities
Africa Progress Panel
Can the world prevent catastrophic climate change while building the energy systems needed to sustain growth, create jobs and lift millions of people out of poverty? That question goes to the heart of the defining development challenges of the 21st century, and is the focus of this year’s report. It is a vital question for Africa. No region has done less to contribute to the climate crisis, but no region will pay a higher price for failure to tackle it.