Global Trends and Experience with Regional Telecommunication

1. ICTUNIT Global Trends and Experience with Regional Telecommunication Information & Communication Technologies INNOVATE - CONNECT - TRANSFORM Rajendra Singh World Bank, ICT Unit

2. Out Line of the Presentation • Kudos to Government of Afghanistan • Regional Connectivity • Connectivity leads to Transformation , Innovation which means Economic Development and creation of Jobs • Cross-Sector Infrastructure Sharing • Some International Practices on Cross-Sector Infrastructure Sharing

3. Congratulations! Government of Afghanistan • To the best of our knowledge Afghanistan became the third country in the world to take a national policy decision on cross-sector infrastructure sharing in March , 2013 • The concept of cross-sector infrastructure sharing was discussed on December 12, 2011. • Various technical, legal, commercial and regulatory issues were discussed with various stakeholders on Feb 14, 2012 • Then Government of Afghanistan within a year’s time took this national policy decision • Congratulations to the government and whole inter ministerial team

4. Regional connectivity is essential • From Landlocked to Land linked!

5. Regional Connectivity • Increased coverage • Lower price ( Affordability) a) use of shared passive network elements b) easier market entry for new companies – more investment on access services • Quality connectivity to meet exponentially growing high speed internet demand

6. International Examples Eastern Submarine Cable System (EASSy) Caribbean regional Communications Infrastructure Program (CARCIP) • Partnership of: • about 20 African and International Telecom operators • - WB,IFC and other DFIs • Partnership of: • Caribbean countries, regional organizations, CTU, CKLN and ECTEL • - WB

7. Current trends Global smartphone penetration Global traffic growth

8. Infrastructure Synergy

9. Enabling the Enablers • Means transformation of society and governance Which lead to innations Which means econ.development, poverty reduction and new jobs Poverty reduction, new jobs ICT-led Innovations Transformation of society, governance processes

10. ICT promotes economic growth… Source: World Bank

11. …and creates jobs For every 1000 additional broadband users, approximately 80 Jobs are created. For every 10 percentage points increase in broadband penetration, GDP growth increases by approx. 1 percentage point Source: Arthur D. Little

12. Some International Examples-India • PGCIL, India sharing their OPGW with most of Indian telecom operators, with various government departments, with Banks. Their OPGW is being used to provide international connectivity with neighboring countries. This is a great example of cross-sector infrastructure sharing to improve telecom connectivity • But at the same time state level electricity transmission companies are not able to share their OPGW along with PGCIL so that they can offer end to end telecom connectivity to larger areas • There can be no technical, financial, regulatory and legal reason for the same. This is only mindset and lack of coordination

13. MSRDC , India Duct Sharing • Maharashtra State Road Development Corporation ( MSRDC) has taken a policy decision that in all future road construction projects a duct of suitable size will be laid under ground at the time of construction of the roads. • Later on telecom operators may pull OFC in these ducts. This will result up to 50 percent saving in OFC cost.

14. International Examples ( Contd.)- Bhutan • Bhutan a small country with less than a million population, Hilly terrain • Complete optical fiber system in the country is owned by Bhutan Power Company ( BPC) • By June 2014, 201 out of 204 Gewogs ( Block level) will be connected by optical fiber system owned by BPC. • Government is funding cost of OPGW to make connectivity more affordable to citizens . • Because of hilly terrain this does not make economic sense to telecom operators to lay their own UG optical fiber system • Government trying to encourage private sector investment on access and other ITES

15. Kosovo, Electricity Transmission Company • Kosovo electricity transmission company, KOSTT owns more optical fiber system than all telecom operators • There is no legal, regulatory and technical hurdle in sharing surplus telecom capacity of OPGW with telecom operators. • All private telecom operators approached KOSTT to share their OPGW and other passive infrastructure with them • All stakeholders inclsectoral regulators are keen to share OPGW. But still this has not happened. • The reason is lack of understanding of right approach which should be followed by KOSTT to share their OPGW. Various technical, commercial and regulatory concerns. • World Bank is helping Kosovo government with the help of TEIAS, Turkish electricity transmission company to develop OPGW sharing mechanism.

16. Kosovo Railways • Kosovo Railways through an auction awarded the access to their Right-of-Way ( RoW) to a private company to lay , maintain , operate and sell optical fiber system to telecom operators • Private company quoted high RoW charges which proved to be unsustainable. • Optical fiber system is not utilised and there is legal dispute.

17. Uzbekistan • Uzbek Energo and Uzbek Railways have surplus capacity on their optical fiber system. A small part of this capacity is used as a back up system by Uzbek Telecom and private ISP. • There is a need to take national policy decision to fully utilise available surplus telecom capacity owned by energy and railway companies. • This will help in improving national, regional and international telecom connectivity.

18. World Bank….. as a Global Practice …… will help overcome: • lack of awareness • Coordination failures • Regulatory- technical hurdles.

19. ICTUNIT THANK YOU Information & Communication Technologies INNOVATE - CONNECT - TRANSFORM Rajendra Singh rsingh6@worldbank.org World Bank, ICT Unit