AFFORDABLE broadband of ADEQUATE quality THROUGHOUT Sri Lanka

Buddika WijetungaIsura SilvaMahesh de Andrado

How to engage in broadband policy and regulatory processes|25th – 28th September 2015

Popular Broadband technologies in Sri Lanka

Wireless DSL

Optical Fiber Satellite

Current scenario Do we all have broadband access ?

SLT Fixed Broadband

Mobitel Broadband Coverage

Dialog Broadband Coverage

90% covered on 2G70% covered on 3G

Major investments in Mobile Broadband

Mobile Indicators

Current scenario Do we all have broadband access ?

Criteria: Internet users are individuals who have used the Internet (from any location) in the last 12 months. Internet can be used via a computer, mobile phone, personal digital assistant, games machine, digital TV etc. Source : World bank data base , World Development Indicators

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

-5

0

5

10

15

20

25

30

Number of internet users & Incrementing rate

Incrementing rate Internet users (per 100 people)

Is broadband affordable to all Sri Lankans ?

Source : Measuring the Information Society Report 2014-ITU

Is broadband affordable to all Sri Lankans ?

Source : Measuring the Information Society Report 2014-ITU

Price of Broadband as % of GNI p.c. PPP$ GNI p.c.,USD,2013*

Mobile-broadband prices, prepaid computer-based 1 GB, 2013 0.98 7.16 3’170

Mobile-broadband prices, postpaid computer-based 1 GB, 2013 1.15 8.38 3’170

Mobile-broadband prices, prepaid handset-based 500 MB, 2013 0.98 7.16 3'170

Mobile-broadband prices, postpaid handset-based 500 MB, 2013 0.57 4.16 3'170

Are we getting ADEQUATE quality ? Parameters we should consider – Download and Upload speed– Latency– Packet loss– Jitter– Network availability

How can we measure these ?– Special Hardware devices (Eg : Samknows Whitebox)– Testing softwares

Note : Software method is not much accurate than the hardware method but it’s a cost effective way

Are we getting ADEQUATE quality • Currently used method by TRC

Are we getting ADEQUATE quality

• Measuring Download speed is not enough.• Quality may vary from place to another place• Quality is highly depends on transmission medium• Quality may vary depends on the user device limitations• Overall from users perspective Broadband quality in Sri Lanka is not adequate

Are we getting ADEQUATE quality

• Measuring Download speed is not enough.• Quality may vary from place to another place• Quality is highly depends on transmission medium• Quality may vary depends on the user device limitations• Overall from users perspective Broadband quality in Sri Lanka is not adequate

Key highlights of the Policy Brief1. Identification of and publishing of areas lacking broadband access and the waiving

off or provision of subsidies for the initial and monthly rental/s charged to telecom operators.

2. Implementation of transmission infrastructure sharing mechanism and transmission medium sharing.

3. Creating a market for 3G and 4G services to be facilitated by introducing the benefits of using said technologies. Demand side stimulation should be developed further to solidify this recommendation.

4. The TRC should establish a standardized QoS (Quality of Service)measuring mechanism and make said details available to the general public.

5. Launch ICT training programmes and incubator programmes for those in rural areas6. Identification of people who lack financial resources and providing them with

subsidies and/or free broadband access in order to cultivate their skills and help boost the economy.

7. Make Sri Lanka open to R&D projects in order to further enhance the connectivity of affordable broadband to all areas of Sri Lanka. Expansion of the Google Loon project can also be added to this recommendation.

What is broadband ?

A high-capacity enabling ICT platform that improves the variety, utility, and value of services and applications offered by a wide range of providers, to the benefit of users, society, and multiple sectors of the economy. (entire economy)

Source: Broadband Strategies Handbook, world bank group.

An effective ICT policy will address all parts of the eco system

Why Government should invest ?

Broadband enables job creation through three main channels

1. Direct jobs created to deploy the broadband infrastructure

2. indirect and induced jobs created from this activity

3. Additional jobs created as a result of broadband network externalities and spillovers (Katz 2009)

Evidence – Broadband strengthens economy

Easier access to information that increases efficiencies and productivity in the economy, “about a 1.38 percentage point increase in GDP for each 10 percent increase in broadband penetration” between 2000 and 2006 (Qiang and Rossotto 2009, 45) McKinsey and Company estimated that “a 10 percent increase in broadband household penetration delivers a boost to a country’s GDP that ranges from 0.1 percent to 1.4 percent” (Buttkereit et al. 2009).

Government SHOULD and should NOT

• Maximize competition, removing entry barriers and improve the incentives for private investment

• provide well-justified public funding interventions - promote growth of underdeveloped markets

• NOT compete with or displace private sector investment.

• Government should maintain a level playing field for competition by avoiding favoring one company (example: India broadband plan )

THANK YOU

Any Questions?