Page 169 - Trends in Telecommunication Reform 2016

6 Conclusion

Midway through the 2010s, evidence points technologies, such as using broadcasting (i.e “TV
strongly to the potential for a global take-off white-space”) spectrum to promote broadband
of mobile broadband services, bringing with it services in rural areas not considered to be
expanded access to the Internet and the Digital commercially reachable with more traditional
Economy. ITU statistics indicate that the number network approaches.
of mobile-cellular subscriptions worldwide is
approaching the number of people on Earth, Governments can continue to fund broadband
which is estimated at above 7 billion -- up from networks using public–private partnerships (PPPs)
just 738 million in 2000. This corresponds to a in areas where it is not commercially viable for
global mobile service penetration rate of 97 per operators themselves to invest in broadband
cent. Meanwhile, an estimated 3.2 billion people infrastructure. Meanwhile, investment is coming
globally are using the Internet, of which 2 billion from new sources. At the “macro” end of the
are from developing countries. market, new players from the global high-tech
industry, such as Google, Microsoft and Facebook
Just to pull these two trends together, the statistics have invested in broadband networks and
also indicate that mobile broadband is the most emerging technologies. They are drawn into the
dynamic market segment, with a penetration telecommunication market space by a desire to
reach of 47 per cent in 2015 -- a value that has generate downstream revenues by leveraging
increased 12 times since 2007. The proportion increased use of broadband networks into demand
of the population covered by a 2G mobile-cellular for their content and services.
network grew from 58 percent in 2001 to 95 per
cent in 2015. During the same period, 3G mobile- At a lower (perhaps even “micro”) scale, innovative
broadband coverage was extending rapidly and investments using crowdfunding, digital currencies,
into the rural areas. pension funds and charities largely involve higher-
1
layer services (for example, development of apps
Are we even now entering the era of the Digital and electronic games) and developed markets.
Economy? If not, it is perhaps within striking This is partly due to the maturity of the Internet
distance. For this reason, this sixteenth edition of ecosystems in those developed markets, which
Trends in Telecommunication Reform has pursued foster technical innovation. But they offer new
the theme of “exploring regulatory incentives avenues, both for investors and for those who
to achieve digital opportunities.” Put another may need investment capital, to develop apps or
way, with the promise of an exponential leap in community-based infrastructure or content.
connectedness so tantalizingly close, what can
regulators do to make sure their citizens get there Building infrastructure for the digital economy
– and hopefully, get there together? remains expensive. Accelerating broadband
deployment, particularly outside the main urban
Taking the Last Steps to the Digital Economy areas, is challenging and requires innovative
solutions. Governments often favour promoting
Building up from the foundation, the first step infrastructure-sharing, also known as “co-
has to be an exploration of investment and investment,” as a way to maximize the incentives
financing. Governments can set the tone for for investors and operators to risk entering new
promoting investment by providing clarity on markets. Lowering and sharing the risks of sunk
passive infrastructure-sharing rights, working costs and boosting the accessibility of networks
with local and national governments to promote leads to the building of more network capacity and
technology pilots, and supporting community results in lower prices for consumers.
broadband initiatives. They can also help new
entrants by expediting licence applications and Governments can play a key role in fostering
easing civil planning and construction restrictions. network-sharing and spectrum “pooling” through
Governments and regulators can proactively network build-out requirements, open access
champion pilot projects that explore disruptive mandates and less-restrictive spectrum licensing.

Trends in Telecommunication Reform 2016 151