2nd OECD Workshop on Broadband Session III: Policy Issues June 5, 2002 “Asia Broadband Program” Tetsuo YAMAKAWA Ministry of Public Management, Home Affairs, Posts and Telecommunications, JAPAN Asia Broadband Program 1. Policy Objective For the world economy to grow, Asia must achieve its full potential for growth. Improving IT in Asia is essential in pursuing this goal. Potential of Asian Countries’ Economies 2000 World Population: Americas ex. USA & Canada USA & Canada 8% 5% 1999 World GNP: 6,057 billion Japan 2% 29,798 billion USD Americas ex. USA & Canada 6% Japan 14% Asia ex. Japan 59% Asia ex. Japan 13% USA & Canada 31% Europe ex. EU 6% EU 6% Oceania Africa 2% 2% Africa 13% Oceania 1% Europe ex. EU 4% (Source: World Development Indicators Database, World Bank) EU 28% Landmarks in Asian IT Growth Japan: Mobile Internet World’s largest number of subscribers to mobile internet: over 50 mil in March 2002 (MPHPT) Singapore: e-government World’s second biggest provider of e-government services in 2001 (Accenture) S. Korea: Broadband spread World’s highest dissemination rate of DSL: 8.91% of population in Nov. 2001 (MPHPT) China: Potential Market Population 1,300 mil; world’s largest number of mobile phone subscribers: 155.85 mil. in February. 2002 (China) India: IT Software Exports Software exports: 620 mil US$ in 2000 (NASSCOM) Asia Broadband Program 2. Current Situation Compared with international trade, information flows between Asia and other parts of the world, as well as within Asia, are unreasonably small. This imbalance must be ended. 2000 World Trade Flows 2001 World Information Flows (in US $) 413 trillion 162 Gbps North America Europe North America Europe 1 Gbps 428 trillion 42 Gbps 564 trillion Asia (Source: WTO International Trade Statistics 2000) Asia (Source: TeleGeography; Packet Geography 2002) Asia Broadband Program Ratio of intra-regional to inter-regional Internet bandwidth in Europe, 1999-2001 Internet Bandwidth (Mbps) 800,000 700,000 600,000 500,000 400,000 Intra-regional 300,000 200,000 100,000 Inter-regional 0 1999 2000 Note: Domestic routes are excluded. Data as of mid-2001. (Source: TeleGeography) 2001 Asia Broadband Program Ratio of intra-regional to inter-regional Internet bandwidth in the Asia-Pacific Region, 1999-2001 Internet Bandwidth (Mbps) 60 50 Intra-regional 40 30 20 Inter-regional 10 0 1999 2000 Note: Domestic routes are excluded. Data as of mid-2001. (Source: TeleGeography) 2001 Asia Broadband Program Top 30 Hub Cities in Internet Bandwidth City 1 New York 2 Internet Bandwidth (Mbps) City Internet Bandwidth (Mbps) 149,834.5 16 Seoul 3,734.1 London 85,518.7 17 Hong Kong 2,694.8 3 Amsterdam 24,479.6 18 Madrid 2,488.0 4 Paris 22,551.8 19 Buenos Aires 2,285.7 5 San Francisco 20,813.6 20 Mexico City 2,166.0 6 Tokyo 16,745.6 21 Dallas 1,546.0 7 Washington D.C. 13,261.2 22 Sacrament 1,409.0 8 Miami 11,912.4 23 Stockholm 1,397.0 9 Los Angeles 11,227.0 24 Osaka 1,395.0 10 Copenhagen 10,417.0 25 Milan 1,293.5 11 Frankfurt 9,351.5 26 Singapore 1,276.0 12 Seattle 5,891.7 27 Perth 1,092.0 13 Sydney 4,389.0 28 Monterey 1,077.0 14 San Paulo 4,316.5 29 Auckland 1,020.0 15 Chinese Taipei 3,738.4 30 Rio de Janeiro 981.0 (Data as of mid-2001, Source: TeleGeography; Packet Geograph y 2002) Asia Broadband Program 3. Promoting ICT through Expanding Broadband Networks To enhance IT in Asia, Japan proposes an “Asia Broadband Program”, designed to make the region a world information hub through expansion of broadband networks. It would also benefit worldwide ICT development. <Challenges for ICT Development via Broadband> - Establishment of broadband infrastructure - Efficient distribution of digital content - Improvement of ICT consumer environment through policy and regulation - Capacity-building and education to improve ICT literacy, etc. By co-operating to set short and long-term targets, Asian countries can overcome these challenges and promote broadband expansion. Asia Broadband Program 4. Measures Various measures need to be discussed for expanding broadband in Asia, such as: <Establishment of Broadband Infrastructure> - Construction of Asian R&D broadband network - Promote use of the network for international joint R&D projects - Co-operation among Asian countries in building broadband IX - Study capability of communications satellites to resolve geographical disadvantages <Distribution of Digital Content> - Support scheme to promote efficient distribution of digital content created in Asia Asia Broadband Program <Improvement of ICT Consumer Environment> - Harmonized policies to protect copyright, security etc. - Sharing knowledge and expertise among countries on policy-making and regulation - Making use of Japan’s e-Policy Support Network <Capacity-Building and ICT Education> - Co-operation in ICT human resource development, etc. Report to the World Summit on the Information Society (Geneva, 2003) Asia Broadband Program 5. Asia’s Special Characteristics Asia is characterized by its diversity of cultures, geographic conditions, and social and economic systems. Attention must be paid to this diversity during development. <Cultural Diversity> Countries contain cultural communities with different languages, religions, etc. This could hamper the efficient transmission of digital content across the region. <Economic Diversity> Because national income levels, main industries, etc. differ greatly from one country to another, ICT must be expected to take a different role in each country. <Geographic Diversity> Metropolitan areas and other large economic centers are adequately furnished with ICT infrastructure, but remote areas, such as islands and mountains, have poor access to such infrastructure. Asia Broadband Program 6. Points of Importance In implementing the Asia Broadband Program, we should keep in mind these principles: <Respect for Diversity and Autonomy> - Economic, geographic and cultural diversity within Asia must be noted and each country’s autonomy must be respected - Each country should be encouraged to be active in making its own efforts to develop ICT <Partnership among many public and private bodies> The improvement of broadband will best be achieved through building partnerships among: - Governments - Private-sector bodies - NPOs and NGOs - International organizations etc.