EGM on Enabling Environment for the Development of Arabic e-servicese Broadband Landscape in the ESCWA Region Rami Zaatari ICT Division www.escwa.un.org 8-9 Mar. 2011
Main Points ICT Penetration in the ESCWA region ICT Infrastructure Competition in the Telecom Landscape Broadband Affordability BB 4 Development: Boosting Economies International Internet Bandwidth New Regional Submarine Cable Systems Internet & Broadband Enabling Local Content Recommendations
ICT Penetration in the ESCWA region ICT diffusion is improving in EMCs; Six-fold increase in mobile subscriptions, 2003-2009. 2009. Subscriptions or users per 100 inhabitants, 2003-2009 48% 57% 73% 11% 15% 21% 29% Logarithmic scale
ICT Penetration in the ESCWA region The prominence of ICTs has grown throughout the region; ICT penetration rates are higher, costs are lower and the adoption of broadband technologies is on the rise.
ICT Infrastructure Fixed-lines Least competitive, considered more of a national asset in most countries; Stagnant or declining in some EMC, a slower growth is observed in other countries.
ICT Infrastructure Mobile services The most dynamic and competitive sector; Impressive growth, triple digit penetration rates in a several countries.
ICT Infrastructure Internet services Mostly a competitive sector; Services offered by ISPs, Fixed and Mobile operators; Penetration rates still below world average;
ICT Infrastructure Fixed Broadband services Region's penetration rate of 1% is way below the world s average at 6.9% (in 2009); Most EMCs are promoting broadband through free access in public places.
ICT Infrastructure Mobile Broadband services Arab region's penetration rate of 6.2% is way below the world s average at 10.3% (in 2009); Mobile broadband penetration is on the rise due to the deployment of WiMAX services, 3G, and LTE networks.
Competition in the Telecom Landscape Mobile market is the most competitive and liberalized followed by Internet services and fixed line services.
Broadband Affordability Fixed Broadband Penetration and Cost Services are still expensive; access charges in LDC are higher than charges in the MDC; Broadband sub-basket basket value is 2% of monthly GNI per capita in UAE, 18% in Syria, and 278% in Yemen.
Broadband Affordability How much are we paying for fixed Broadband? Developing countries with lower GNI pay more than developed countries; Arab region is the 2 nd most expensive in fixed broadband. Source: ITU s price basket value as % of monthly GNI per capita
Broadband Affordability Comparing mobile & fixed BB: Penetration vs. prices Prices are a crucial factor in spreading the uptake of ICTs; Mobile prices are low, penetration is high; fixed BB prices are high and penetration very low. Mobile and fixed BB penetration and prices in the ESCWA region, 2009 Source: ITU s World Telecommunication/ICT Indicators database
BB 4 Development:Boosting Economies Fixed BB reached 555 million subscriptions worldwide (2010); 8% penetration rate (2010) compared to 6.9% in 2009; Changing the landscape of telecom and media and blurring boundaries between service and content providers; Broadband is a key driver of economic and social growth. Source: Broadband: Platform for Progress, Broadband Commission, 2010
BB 4 Development: Impact on GDP World Bank: every 10% increase in broadband penetration provides a boost of 1.38 additional % points to GDP growth ; An increase of 10% in Lebanon in 2008, the GDP would have increased by 1.2% - 1.5% or US $348-435 million) on a recurring basis; The impact on the Lebanese economy not to embrace broadband now would be equivalent of Lebanon not to have embraced learning foreign languages a generation ago; In China, every 10% increase in broadband penetration is seen as contributing an additional 2.5% to GDP growth; Broadband can contribute to an increase in GDP of at least 636 billion in Europe (by 2015).
BB 4 Development: Impact on Jobs Broadband can create more than two million jobs in Europe by 2015; Brazil reported that broadband added up to 1.4% to the employment growth rate; In the US, 1% increase in broadband penetration leads to a 0.2 0.3% growth in employment; In Germany: Broadband network construction will create 304,000 jobs (2010-2014), 2014), and 237,000 (2015-2020). 2020). An additional 427,000 related jobs will be created, reaching a total of 968,000 jobs (2010 2020). 2020).
BB 4 Development:Impact on Productivity Booz: 10% higher broadband penetration in a specific year is correlated with 1.5% greater labour productivity growth over the following five years; In OECD, cheaper broadband tends to be correlated with higher growth rates in labour productivity.
International Internet Bandwidth More bandwidth is coming, capacity is seen to skyrocket in 2010/2011 - new cables will also add redundancy; Total capacity (MENA) will grow from 2.11 Gps to 28 Tbps. Distribution of International Internet Bandwidth in the ESCWA region, 2008
New Submarine Cable Systems (2010-2011) More international connectivity for the ESCWA region IMEWE (India- Middle East- Western Europe) cable system Design capacity of 3.84 Tbps Source: IMEWE
New Submarine Cable Systems (2010-2011) Increasing the Gulf s region global connectivity GBI FO cable system Design capacity of 5 Tbps Source: Global Bridge International
New Submarine Cable Systems (2010-2011) More international connectivity for the MENA region MENA (Middle East North Africa) cable system Design capacity of 5.76 Tbps. Source: OmanTel, STC
New Submarine Cable Systems (2010-2011) More international connectivity for the MENA region EIG (Europe India Gateway) cable system; Design capacity of 3.84 Tbps. Source: EIG
Internet & BB Enabling Local Content Compared to 2007, the total number of web pages (in all languages) of the region has more than doubled in 2009; Arabic language is making way on the Internet; registering the highest growth rate (2000-2010). 2010).
Internet & BB Enabling Local Content There is 1 Arabic web page for every 1 million Arab Internet users vs. 20 pages for every 1 million English Internet users; The rise of Internet and broadband penetrations is driving the use and adoption of e-services e such as social media; Facebook and Internet Penetration rates in the ESCWA Region 2009-2010 Sources: ITU and Dubai School of Government
Recommendations Proceed with the liberalization of telecom sectors, especially the fixed-line and Internet sectors; and instigate competition, which has a significant impact on dissemination of telecom services; Harness the effect of broadband on development through further liberalization of broadband services, and reduce Internet subscription costs to a level affordable by a wider cross-section section of the community; Devise policies to reduce prices in order to bring more people online; Sweden was the first country in Europe to develop a broadband policy; Enable the migration to the next-generation networks, characterized by ubiquitous access to high-speed and high- quality broadband networks and the convergence of the telecommunication and media sectors.
Thank you zaatari@un.org http://www.escwa.un.org