Building Better Broadband (Strategic Focus)

Table of Contents

OVERVIEW

• Catalyst
• Summary

KEY MESSAGES

• Economic development provides the impetus behind the rollout of broadband services
• Broadband rollout is being promoted in order to help bridge the digital divide
• Broadband makes public services more accessible and government more efficient
• There are varied approaches to government intervention and its role in building the network
• Government must play a key role as regulator and developer of broadband strategies
• New and wide-reaching partnerships that breed innovation will be critical to vendor success
• Finding the ‘killer app' will be key in determining the future of broadband

MARKET OPPORTUNITY: DRIVERS BEHIND BROADBAND ROLLOUT

• Economic development provides the impetus behind the rollout of broadband services
  • The availability of high-speed internet is a prerequisite for business development
  • Innovative communities seek to prevent or reverse brain drain
  • There is a correlation between broadband access and gross domestic product

• Broadband rollout is being promoted in order to help bridge the digital divide
  • There is a significant divide between rural and urban areas
  • Socioeconomic factors play a key role in the digital divide as well
  • Bridging the digital divide will require more than simply providing access

• Broadband makes public services more accessible and government more efficient
  • E-government, e-health and e-learning are enhanced by the availability of high-speed broadband
  • Public safety applications allow real-time surveillance and crime prevention
  • Public works projects such as automated meter reading are significantly improved through broadband
  • Low-speed access facilitates - and high-speed access enhances - opportunities for teleworking

• Wireless and mobile networks will allow field workers to perform their job more efficiently
  • Government employees in the field often collect large datasets or high-resolution images and video
  • LTE networks will allow employees to transmit large files from the field directly to government servers
  • The enhancement of networks through broadband capabilities reduce costs and save time for agencies

CUSTOMER IMPACT: GOVERNMENT' S ROLE IN THE FUTURE OF BROADBAND

• Broadband initiatives face challenges around cost and mounting levels of data traffic
  • Cost is the key inhibitor to broadband rollout
  • There is a pressing need to prioritize the mounting levels of data traffic

• There are varied approaches to government intervention and its role in building the network
  • Government networks were an early model which have generally proven unsustainable
  • Public-private partnerships are an effective approach to build and deploy networks
  • Government-mandated monopolies and duopolies are less frequent but effective
  • Grants, loans and subsidies are gaining traction as an approach
  • Tax concessions help promote private sector involvement in underserved areas

• Government must play a key role as regulator and developer of broadband strategies
  • National broadband strategies are critical in ensuring long-term viability of networks
  • Successful broadband strategies will require robust interoperability between technologies and networks
  • The most successful ventures will be public-private partnerships

GO TO MARKET: STRATEGIC STEPS FOR VENDORS

• Vendors must ensure widespread stakeholder involvement in the regulation-setting process
  • Vendors must ensure they have a voice at the table in setting regulations for the industry

• New and wide-reaching partnerships that breed innovation will be critical to vendor success
  • Identifying executive leadership within government is a key factor for success for vendors

• The digital divide is about more than simply providing low-cost access
• Stakeholders must have clear, measurable goals as to what the network aims to achieve
• Finding the ‘killer app' will be key in determining the future of broadband
  • The rise of video applications will be a key impetus for pushing broadband access
  • Vendors must gather end-user input to determine applications which will spur adoption

APPENDIX

• Definitions and abbreviations
• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: Reasons given for lack of broadband Internet access
• Figure: Correlation between computer access and broadband subscribers in OECD countries
• Figure: As technology has evolved, online services have been signifiancantly enhanced
• Figure: Global mobile connections, 2007-2014
• Figure: Broadband allows governments to enhance a number of functions
• Figure: Broadband subscribers per 100 inhabitants, by country, December 2008
• Figure: Evolution of communications and infrastructure