Broadband Internet Evolution in ITU and broadband infrastructure in Africa & around the world. Louisa Ama Sosu, Network Quality and Reporting Manager, MTN Ghana lafagbegee@mtn.com.gh Maputo, Mozambique, 14-16 April 2014 Video Maputo, Mozambique, 14-16 April 2014 2 Broadband which simply means a fixed-line and/or wireless connection that enables the delivery of voice, video, and data at high speed to any node with a similar connection, whether around the corner or around the world Maputo, Mozambique, 14-16 April 2014 3 -has changed the way the world works Maputo, Mozambique, 14-16 April 2014 4 Maputo, Mozambique, 14-16 April 2014 5 Mobile Broadband Maputo, Mozambique, 14-16 April 2014 6 Network Evolution Maputo, Mozambique, 14-16 April 2014 7 Demand Scenario Users: good audio, video and Internet access. They don't care about the underlying technology. Operators know that in order to avoid client attrition that they need to ensure QOE and in order to do so they need to ensure that their infrastructure can accommodate growing demand from its clientele. Maputo, Mozambique, 14-16 April 2014 8 Africa The distribution of mobile operators on the continent provides an opportunity for growing mobile broadband. Africa needs to develop a unique model to promote this growth Maputo, Mozambique, 14-16 April 2014 9 Mobile Operators in Africa Maputo, Mozambique, 14-16 April 2014 10 Main issues affecting Infrastructure Base Station: Evolving and new introductions with new technologies Transmission: Microwave, Fiber Core: Packet core evolving (IP) Spectrum Regulation Maputo, Mozambique, 14-16 April 2014 11 Improvement Areas An area where improvements in bandwidth efficiency and QoS will have the greatest impact on QoE and margins will occur in metro aggregation and transport networks, and at the very edge of the network itself, where bottlenecks can easily occur as IP-based devices proliferate Maputo, Mozambique, 14-16 April 2014 12 ITU’s Role ITU is working closely with Member States and other partners to make sure that the latest legislative approaches and best practices aimed at facilitating broadband infrastructure development are well-known and implemented worldwide Maputo, Mozambique, 14-16 April 2014 13 Infrastructure sharing Infrastructure sharing is the latest trends. However some countries are yet to make this a reality. African operators are passive network sharers. Active network sharing is a much more complex topic than tower sharing. Active networks are vital to mobile operators and are the revenue-generating assets that define it as an operator. Maputo, Mozambique, 14-16 April 2014 14 Under sea cables linking Africa Maputo, Mozambique, 14-16 April 2014 15 Fibre A critical component of the mobile network. 2G cannot serve end users anymore, and 3G is running out of capacity fast. LTE requires massive investment in fibre optic for metro backhaul. Fibre is playing an increasing role in mobile backhaul. Infonetics found that fibre will continue to grow and continue to increase its architectural share of mobile backhaul installed connections, and will grow to 43 per cent of the mobile backhaul market in 2017. Maputo, Mozambique, 14-16 April 2014 16 Fibre Fibre Optic Backhaul Lays the Foundation for High Quality User Experiences Wireless backhaul is easy to deploy, and allows moving points of presence, however, these wireless connections are slower, occupy spectrum that could be used by user devices (especially as 5.8 GHz devices proliferate), require more truck rolls (typically three times as many) as wired backhaul, are limited in bandwidth and is often viewed as an initial or temporary measure. With a fibre optic backhaul solution, efficient roll-out of network expansions can be conveniently supported. Maputo, Mozambique, 14-16 April 2014 17 Fibre Optic penetration by country Maputo, Mozambique, 14-16 April 2014 18 International Trends Due to proliferation of fibre networks, ,mobile broadband market in Europe experiencing intense competition in LTE many countries, driving data prices into the ground Fierce competition between operators has enabled customers in Europe to take advantage of some of the lowest 4G data tariffs in the world, - GSMA Intelligence. First commercial cellular LTE networks were switched on in Europe in December 2009 The most competitive LTE market in Europe is identified as Sweden - all four of the country’s mobile operators have launched the next-generation technology. Maputo, Mozambique, 14-16 April 2014 19 International Trends Europe use the deployment of LTE to overhaul their mobile broadband pricing models. Operators struggling with overloaded networks have taken the opportunity to phase out unlimited data deals in favour of speed-based offerings tied to data allowances in an effort to more effectively monetise mobile data. Over 90 percent of the LTE operators surveyed in Europe were found to use a speed-based element in their LTE tariffs. LTE operators trying to make more profitable use of their new high-speed network capacity, with most of them adopting speed-based pricing Maputo, Mozambique, 14-16 April 2014 20 International Trends This new mobile broadband tariff model, which operators have developed in line with the rationalisation of their device portfolios, allows the pricing of data on a quality of service basis for the first time, with operators offering mobile broadband packages at a range of differently-priced download speeds. The principal benefit of this approach is that it allows operators to manage their network capacity in a more revenue efficient way, and further enhance profitability by charging a premium for the highest speeds. This strategy offers advantages in terms of quality of user experience, as subscribers that exceed their monthly GB allowance will typically have their connections throttled back to 2G speeds (unless they buy an additional data allowance at a premium rate), freeing up more high-speed network capacity for those users paying the highest tariffs. It is expected that this pricing model will spread from Europe to the rest of the world, as more operators deploy LTE and 4G competition ramps up across the globe. – GSMA Intelligence Maputo, Mozambique, 14-16 April 2014 21 Recommendations Stimulating an efficient investment environment through: Regulation Promoting infrastructure sharing Developing Guidelines for the Rapid Deployment of fibre optic infrastructure Removal of unnecessary red tape for wayleaves and cross border deployment Education on the benefits of broadband infrastructure Maputo, Mozambique, 14-16 April 2014 22 THANK YOU Maputo, Mozambique, 14-16 April 2014 23