Government Should Drive Broadband
4 May 2009
4 May 2009
Broadband networks are an essential part of the global information society, enabling overall economic growth, creating new jobs, fostering innovation and enhancing national competitiveness. To achieve these and other benefits of broadband, developing nations need to establish enabling environments that support long-term cost-effective broadband deployments.
This is according to Intel, who says that broadband deployment in developing countries is reliant on the government of that country being able to create an enabling environment. Through this enabling environment, communities and ultimately countries, can achieve the critical mass necessary to lower costs and achieve all the potential benefits of broadband connectivity.
Intel says that it has extensive experience in facilitating broadband deployment in developing nations and they believe that there are a handful of best practices that governments should have in place to ensure successful deployment.
"Intel has worked with many countries to bring together government departments and ministries and helped them work together with telecommunications companies and other industry groups," says Danie Steyn, sub-Saharan regional business manager at Intel.
Steyn says that supportive regulations are essential to spread broadband access in developing countries at a pace fast enough to compete with the rest of the world. "It requires simpler and more market-based regulations and policies."
As stated in a report from the World Summit on the information society, "trustworthy, transparent and non-discriminatory legal, regulatory and policy environment is necessary to maximise the social, economic and environmental benefits of the information society".
Increased competition is essential if the consumer is to benefit from lower costs. According to Steyn encouraging competition should be a priority in regulatory and governmental policies. Transparent national policies and regulatory frameworks can promote a competitive environment that attract investment, drive down prices and make large-scale rollout more affordable.
"Encouraging competition is not always easy or popular. The innovations sparked by broadband and the digital economy it supports can be disruptive to the status quo, sparking political demands to insulate particular segments of the economy," he says.
"Policies should be weighed carefully to ensure consumers are protected while at the same time avoiding over-regulation and unnecessary protection of incumbents. However, such measures cost the larger society much more than they benefit the incumbent interests they are intended to protect."
Furthermore, governments need to invest in essential infrastructure and technology. "Broadband networks are not helpful without a reliable power supply and the widespread availability of personal computers," says Steyn.
"Particularly in developing nations, where the infrastructure is not likely to be fully developed, investment is necessary to support the intermediate infrastructure - including everything from utilities to computers- that in turn enables successful diffusion of broadband networks."
In his budget speech, Finance Minister Trevor Manuel stated that the government would invest R787 billion into uplifting infrastructure in South Africa. However, Steyn believes that government should invest in more than just bricks and mortar and rather invest in connectivity infrastructure as this will enable connectivity and successful roll out of broadband. This in turn will lead to economic growth.
"For governments the bottom line is that broadband must be supported by essential infrastructure that includes for instance, reliable electricity and dependable roads. Over time investments in the general infrastructure in combination with investments in ICT initiatives will enable successful and sustainable broadband deployments," he says.
In nearly every country, successful broadband deployments begin with a strong commitment from the government that is then carried out through extensive collaboration and partnerships among government, industry and private groups.
It is only by working together that ICT and broadband deployment succeeds on all levels - achieving national goals while profiting local businesses and providing citizens, students and other consumers with broadband.
By adopting these best practices, Intel said, developing nations can successfully deploy broadband networks and become stronger, more competitive and more prepared for continued growth in the years and decades to come.
This is according to Intel, who says that broadband deployment in developing countries is reliant on the government of that country being able to create an enabling environment. Through this enabling environment, communities and ultimately countries, can achieve the critical mass necessary to lower costs and achieve all the potential benefits of broadband connectivity.
Intel says that it has extensive experience in facilitating broadband deployment in developing nations and they believe that there are a handful of best practices that governments should have in place to ensure successful deployment.
"Intel has worked with many countries to bring together government departments and ministries and helped them work together with telecommunications companies and other industry groups," says Danie Steyn, sub-Saharan regional business manager at Intel.
Steyn says that supportive regulations are essential to spread broadband access in developing countries at a pace fast enough to compete with the rest of the world. "It requires simpler and more market-based regulations and policies."
As stated in a report from the World Summit on the information society, "trustworthy, transparent and non-discriminatory legal, regulatory and policy environment is necessary to maximise the social, economic and environmental benefits of the information society".
Increased competition is essential if the consumer is to benefit from lower costs. According to Steyn encouraging competition should be a priority in regulatory and governmental policies. Transparent national policies and regulatory frameworks can promote a competitive environment that attract investment, drive down prices and make large-scale rollout more affordable.
"Encouraging competition is not always easy or popular. The innovations sparked by broadband and the digital economy it supports can be disruptive to the status quo, sparking political demands to insulate particular segments of the economy," he says.
"Policies should be weighed carefully to ensure consumers are protected while at the same time avoiding over-regulation and unnecessary protection of incumbents. However, such measures cost the larger society much more than they benefit the incumbent interests they are intended to protect."
Furthermore, governments need to invest in essential infrastructure and technology. "Broadband networks are not helpful without a reliable power supply and the widespread availability of personal computers," says Steyn.
"Particularly in developing nations, where the infrastructure is not likely to be fully developed, investment is necessary to support the intermediate infrastructure - including everything from utilities to computers- that in turn enables successful diffusion of broadband networks."
In his budget speech, Finance Minister Trevor Manuel stated that the government would invest R787 billion into uplifting infrastructure in South Africa. However, Steyn believes that government should invest in more than just bricks and mortar and rather invest in connectivity infrastructure as this will enable connectivity and successful roll out of broadband. This in turn will lead to economic growth.
"For governments the bottom line is that broadband must be supported by essential infrastructure that includes for instance, reliable electricity and dependable roads. Over time investments in the general infrastructure in combination with investments in ICT initiatives will enable successful and sustainable broadband deployments," he says.
In nearly every country, successful broadband deployments begin with a strong commitment from the government that is then carried out through extensive collaboration and partnerships among government, industry and private groups.
It is only by working together that ICT and broadband deployment succeeds on all levels - achieving national goals while profiting local businesses and providing citizens, students and other consumers with broadband.
By adopting these best practices, Intel said, developing nations can successfully deploy broadband networks and become stronger, more competitive and more prepared for continued growth in the years and decades to come.
