Page 61 - SAMENA Trends - January 2020

ARTICLE SAMENA TRENDS

to funding and investment are required in different countries might take a similar
Broadband Technology Development that ultimately enable inclusive and local shape could be reviewing or re-purposing
- Hybrid internet solutions combine value-enhancing digital transformation USFs – across Africa, 37 USFs are not
the copper phone network and the 4G and strike a better balance between disbursed, amounting to an estimated
mobile network to increase speed to different digital ecosystem stakeholders US$480 million. This could be a good
customers, using a specific gateway (a benefiting from advanced network start to freeing already earmarked funds
type of modem). This solution is already infrastructure. towards the building and development of
in use in Belgium and the Netherlands broadband infrastructure.
with speeds of 30 Mbps in previously Different options are being put forward
under-served areas. by various stakeholders, ranging from The debate about the need for new
- The satellite industry is currently spot approaches of infrastructure roll- approaches to funding and financing of
delivering the next-generation satellite out, including community, privately run broadband development is an ongoing
broadband. Two recent innovations municipality and operators subsidy one, most recently the central topic of the
are the high-throughput satellites and broadband models; technology-based UN Broadband Commission’s Working
the non-geostationary orbit satellites. solutions such as building multi-operator Group “Broadband for All: A Digital
By using these types of satellites, shared core- and access networks; the Moonshot Infrastructure for Africa”
connections over 30 Mbps may be creation of Special Purpose Vehicles that examined in detail the investments
offered in the future to a larger number or introduction of digital taxes, which required for doubling connectivity by 2021
of rural or remote customers. a number of countries are unilaterally and reaching universal access by 2030.
- 5G, 5th generation mobile networks are considering or implementing in the The Working Group found that to double
the next wireless telecommunications absence of an internationally agreed broadband connectivity by 2021, nearly
standards. 5G planning aims at higher solution (see InfoBox 3); the establishment 220 million new people must come online
capacity than current 4G, allowing a of dedicated ICT Funds into which and an estimated $9 billion in investment
higher density of mobile broadband companies that provide digital services is required. Moreover, nearly 1.1 billion
users, and supporting device-to-device, in a jurisdiction are obliged to contribute; new unique users must be connected to
more reliable, and massive machine- review and repurposing of USFs; to a achieve universal, affordable, and good
to-machine communications. 5G has “Pay and Play” model where recognition quality broadband internet access by
three elements: (1) enhanced mobile would be given for investments in network 2030, and an estimated additional $100
broadband, (2) massive Internet of infrastructure to recognize and incentivize billion would be needed to reach this goal
Things, (3) mission critical services partnerships and innovative approaches over the next decade.
(such as self-driving cars). 5G requires developed by digital economy players,
a middle mile infrastructure based and many more. Which type of approach The Report puts forward a number of
on fibre making 5G a complement to, is suitable will significantly differ, proposals with regards to different
but not a replacement for, high speed depending on local economic and socio- financing mechanisms, stressing the
broadband networks close to the end economic contexts and circumstances, importance for each ecosystem partner
user. the degree of regional integration, as to play a role in mobilizing necessary
-Fixed Wireless Access in the 5G well as country size/scale and system in resources and making contributions to
context can be an efficient and more place. One immediate measure, however, infrastructure funding, financing and
cost-effective means of connecting which has been put forward by numerous investment. It identifies a cost sharing
the unconnected also in those areas stakeholders and to which the approach percentage of two-thirds to be funded
that are less economical and hard-to-
reach. 5G FWA retains the key benefit Figure 5: Overview of different options for Broadband Funding
of current FWA offerings in that it
enables the establishment of a quick
and cheap broadband service, even in
areas that don’t have ready access to
fixed line home broadband. 5G FWA
doesn’t require any engineering works
at the customer end - just the provision
of so-called Customer Premise
Equipment (CPEs), which can be readily
self-installed by the subscriber. The
Market Insights Report estimates that
8
5G FWA will reduce the initial cost of
establishing ‘last-mile’ connectivity
by as much as 40% compared to a
physical fibre line approach.

8 See: https://www.marketinsightsreports.com/reports/091915307/5g-for-fwa-fixed-wireless-access-2017-2030-opportunities-challenges-strategies-forecasts
61 JANUARY 2020