Page 59 - SAMENA Trends - January 2020

ARTICLE SAMENA TRENDS

technologies), which are considered to
be general-purpose technologies (“GPT”) What is Broadband?
that fundamentally change how and The definition of broadband across countries continues to evolve as technologies
where economic activity is organized. improve, new generations emerge of wireline and wireless broadband and baseline
As technologies evolve and bandwidths expectations continue to be raised of what constitutes minimum download speeds for
increase, the scope for broadband to the optimal end-user experience. Therefore, as defined by the European Commission,
act as an enabler of structural change the term “Broadband” does not refer to a particular technology used for Internet
in the economy expands as it affects access but represents a term for a digital infrastructure that allows for high-speed
an increasing number of sectors and internet access that is always on and that is faster than traditional dial-up access.
activities. It can therefore also be The Commission defines three categories of download speeds as follows:
recognized as a cross-sectoral enabler,
underpinning national efforts to develop • ‘Basic broadband’ for speeds between 144 Kbps and 30 Mbps;
knowledge economies, fostering digital • ‘Fast broadband’ for speeds between 30 and 100 Mbps; and
transformation in government services • ‘Ultra-fast broadband’ for speeds higher than 100 Mbps.
and digital transition across all sectors,
expanding opportunities for enterprises A broadband network generally comprises three main elements, including the
and providing greater value for citizens backbone or core network, the middle mile and the last mile. The World Bank also
5
and consumers. This is evident in the identifies an “invisible mile” , which includes the network components that are not
number of national digital economy efforts visible, including the radio spectrum, network databases (for example, for numbering),
linking broadband connectivity to sectoral cybersecurity, and so on, but can also include potential bottlenecks such as market
initiatives, including the delivery of concentration, multilayered taxation of activities, lack of access to rights-of-way, and
quality education, the promotion of social inefficient regulations including transborder regulatory issues.
inclusion and the benefits that accrue
specifically in rural and remote regions.
Direct effects result from investments in
the technology and from rolling out the
infrastructure. Indirect effects come from
broadband impact on factors driving
growth, such as innovation, firm efficiency,
competition and globalization.

As such, significant impacts on the
economy can be expected from enhanced
broadband development, by enabling
organizational change and enhancing
coordination to reap productivity gains
from overall investments in ICTs. Source: Special Report No 12: Broadband in the EU Member States: despite progress,
Furthermore, compared to other historical not all the Europe 2020 targets will be met, European Court of Auditors 6
GPTs, such as railways and electricity,
the impact of Broadband and ICT may Why traditional funding and investment approaches are failing
be larger and materialize more rapidly Network operators as well as governments and regulators in many parts of the world
due to scale and network effects. High - keen to share in and realize the benefits of the digital revolution - are still grappling
speed, ubiquitous broadband internet with adapting to an all-IP environment, which has brought great disruption to the old
connectivity therefore is the critical enabler ecosystem of telecommunications and corresponding regulatory frameworks by
for digital ecosystems that are necessary uncoupling services from networks. Old assumptions of voice as the product, minutes as
components of programmes aimed at the metric, and the importance of distance, duration and location do no longer hold and
development, economic transformation have to make way for new realities, where the product is cross-border connectivity, the
and income growth. It is the foundation and metric is bandwidth / throughput and where distance, time and location do not matter.
pre-condition for digital transformation of
the economy and society and therefore Customers no longer demand and buy dedicated telecommunication services from a
may be considered as an essential utility, dedicated telecommunications network and service provider. Instead, they buy an Internet
alongside other utilities such as road, connection from a national network operator that is regulated at the national level, to
water, electricity and gas. Moreover, the access a wide range of often perceived as «free» content, apps and services that have
UN since July 2016 considers access to proliferated as a key means of local and cross-border communication (and more). These
the Internet a basic human right. are offered by alternative, and often global internet platforms and companies mostly

5 See: UN Broadband Commission Working Group Report 2019 “Connecting Africa Through Broadband: A strategy for doubling connectivity by 2021 and reaching universal access by 2030”
6 See: https://www.eurosai.org/en/databases/audits/Broadband-in-the-EU-Member-States-despite-progress-not-all-the-Europe-2020-targets-will-be-met/
59 JANUARY 2020