International Telecommunication Union Promoting Broadband The Case of Canada Eric Lie Strategy and Policy Unit International Telecommunication Union 1 The views expressed in this presentation are those of the authors and do not necessarily reflect the opinions of ITU or its Membership. The author can contacted by e-mail at eric.lie@itu.int. International Telecommunication Union Overview • Geography • Demographics and Internet use • Competition and regulation • Initiatives promoting broadband 2 Broadband users, top 10 by density per 100, 2002 Korea (Rep.) 21.3 Hong Kong, China 14.6 Canada 11.5 Taiwan, China 9.4 Iceland 8.7 Denmark 8.6 Belgium 8.4 Sweden 7.7 Austria 6.6 Netherlands 6.5 Source: Source: ITU World Telecommunications Indicators Database International Telecommunication Union Geography Distribution of served and unserved communities 3 Source: Source: National Broadband Task Force International Telecommunication Union Geography Small communities less likely to have broadband • Broadband is available in 1,282 communities • Represents 85% of the population but only 24% of all communities • Policy focus is on connecting the remaining 15% scattered over more than 3,500 communities Communities with access to broadband by population, % 100 100 90 78 80 70 60 50 50 40 24 24 30 20 8 10 0 0 10 0 0 10 00 0 -5 00 5 0 00 -1 0 0, 00 10 ,0 00 1 ,0 00 00 4 Source: Source: National Broadband Task Force 10 0 0 ,0 0+ C ad an a International Telecommunication Union Demographics and Internet use • Affluent • Highly educated • Internet penetration of 43.5 per 100 • Use of Internet for high bandwidth activities • 5 playing games, downloading music, online learning Internet use by household, % 46.1 E-mail 44.3 General browsing 30.1 Medical/heatlh information 27.4 Travel info 26.3 View the news 25.6 Government info 24.4 Playing games Obtaining/saving music 23.3 Formal education/training 22.9 Financial info 22.8 Sports related info 22.1 Electronic banking 21.6 16.2 Search for employment Chat groups 13.7 Purchasing goods/services 12.7 Listening to radio 12.3 Other Internet services Source: Source: Statistics Canada 21.1 International Telecommunication Union Competition Intermodal Competition Growth of cable Internet and DSL subscribers, 1999-2001 2.5 2 No. of Subscribers (millions) 1.5 DSL Cable 1 0.5 0 Q 4 4 3 3 Q 2 Q Q1 : 01 20 Q Q 4 2 Q Q1 : 00 20 Q 3 Source: Source: Industry Canada Q 2 Q Q1 : 99 19 6 International Telecommunication Union Competition Broadband pricing • Affordable pricing • e.g. Bell Sympatico ADSL - 1Mbit/s (downstream) 160kbit/s (upstream) at C$44.95 (US$28.40) • Tiered services • Introduction of “lite” services. e.g. Bell Sympatico “lite” – 128 kbit/s (downstream) 64 kbit/s (upstream) at C$24.95 (US$15.70) • Bit cap charges • • 7 Download limits imposed e.g. 10 Gbit for ADSL Separation of heavy and light users Commoditisation of broadband services International Telecommunication Union Regulation • Market entry and licensing • • FBOs need only register before commencing operations Regulatory forbearance from Internet service market • Rights of way • CRTC jurisdiction over disputes between municipalities and carriers • Local loop unbundling • Cable open access 8 International Telecommunication Union Initiatives Key drivers • Federal • • Connecting Canadians Broadband for Rural and Northern Development Pilot Program • Provincial and territorial • e.g. Alberta SuperNet, Villages branches du Quebec • Community • 9 “Community champions” e.g. Upper Canada Networks International Telecommunication Union Initiatives Infrastructure deployment strategies • Demand aggregation model • • • • Community champions Condominium fibre builds Wireless networks Internet exchanges • Public infrastructure model • • 10 Public utility model Public sector network model International Telecommunication Union Initiatives Application and content development • Government supported broadband R&D • • • Individual government departments CANARIE Communications Research Centre (CRC) • Focus on delivery of public services • • 11 e-Learning Tele-health International Telecommunication Union Thank You http://www.itu.int/broadband 12