International Telecommunication Union
Promoting Broadband
The Case of Canada
Eric Lie
Strategy and Policy Unit
International Telecommunication Union
The views expressed in this presentation are those of the authors and do not necessarily reflect
1 the opinions of ITU or its Membership. The author can contacted by e-mail at eric.lie@itu.int.
International Telecommunication Union
Overview
• Geography Broadband users, top 10 by
density per 100, 2002
• Demographics and Korea (Rep.) 21.3
Internet use Hong Kong, China 14.6
Canada 11.5
• Competition and Taiwan, China 9.4
regulation Iceland 8.7
Denmark 8.6
• Initiatives promoting Belgium 8.4
broadband Sweden 7.7
Austria 6.6
Netherlands 6.5
2 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
Communities with access to
• Broadband is available broadband by population, %
in 1,282 communities 100
100
• Represents 85% of the 90
78
population but only 80
70
24% of all communities 60
50
• Policy focus is on 50
40
connecting the 30 24 24
remaining 15% 20
8
10
scattered over more 0
than 3,500 00
0
50
00
0,
0 00 00
0
00
0 +
ad
a
0 -1 0 - 1 0 0, 0 , an
-
communities 1 00
50
00
,0
00
-1 10 C
10
4
Source:
Source: National Broadband Task Force
International Telecommunication Union
Demographics and Internet use
• Affluent
• Highly Internet use by household, %
educated E-mail 46.1
• Internet General browsing
Medical/heatlh information 30.1
44.3
penetration of Travel info 27.4
43.5 per 100 View the news
Government info
26.3
25.6
• Use of Internet Playing games 24.4
Obtaining/saving music 23.3
for high Formal education/training 22.9
bandwidth Financial info 22.8
Sports related info 22.1
activities Electronic banking 21.6
• playing Search for employment 16.2
games, Chat groups 13.7
Purchasing goods/services 12.7
downloading Listening to radio 12.3
music, online Other Internet services 21.1
learning
5
Source:
Source: Statistics Canada
International Telecommunication Union
Competition
Intermodal Competition
Growth of cable Internet and DSL subscribers, 1999-2001
2.5
2
1.5
No. of Subscribers
(millions)
1 DSL
Cable
0.5
0
19
20
20
Q Q1
Q
Q
Q Q1
Q
Q
Q Q1
Q
Q
2
3
4
2
3
4
2
3
4
99
00
01
:
:
:
Source:
Source: Industry Canada
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
• Download limits imposed e.g. 10 Gbit for ADSL
• Separation of heavy and light users
7 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
• “Community champions” e.g. Upper Canada
Networks
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International Telecommunication Union
Initiatives
Infrastructure deployment strategies
• Demand aggregation model
• Community champions
• Condominium fibre builds
• Wireless networks
• Internet exchanges
• Public infrastructure model
• Public utility model
• Public sector network model
10
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
• e-Learning
• Tele-health
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International Telecommunication Union
Thank You
http://www.itu.int/broadband
12