Jozef Cornu
Executive Assistant to the Chairman & CEO
and Member of the Board
Alcatel
November, 2003
I.
1. Common Vision
The members of the GBDe share the common
vision that broadband is crucial to the future
development of the Internet. GBDe members
recommend that todays public policies should
be designed according to this vision of the
future.
The
question
regarding
the
implementation of this vision is not if but
when, and the answer is key for:
On-ramps, Off-ramps: In the same way that onramps and off-ramps provide vehicle access to and
from major highways, broadband is an essential
component for adequate access to, and to exploit the
super high speeds possible on fiber backbones of the
Internet.
b) Economic benefits
Broadband networks
tremendous motors
countries or regions
conditions for their
c) Impact on Society
Improving the quality of life of all citizens is a
fundamental priority for national governments
and society in general. Internet based
technology can assist in this task. Many of the
burdens of every day life associated with
banking, shopping, learning, and access to
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II.
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2. Industry Recommendations
Interoperability standards
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DSL
Cable
Other
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15
10
14
Sp
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EU
Ja
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St
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Au
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Fi
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Be
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Sw s
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1. Overview
Broadband in Korea has become a new type of
lifeline telecommunication service exceeding
72% of penetration rate in households, ranking
the country number one in worldwide
broadband access.
More than 98% of schools, from elementary to
university, are connected to broadband Internet,
utilizing IT to perform real online education.
B ro a d b a n d S u b s c rib e rs
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
3Q - 4Q - 1Q - 2Q - 3Q - 4Q - 1Q - 2Q - 3Q - 4Q - 1Q - 2Q - 3Q - 4Q - 1Q - 2Q 99 99 00 00 00 00 01 01 01 01 02 02 02 02 03 03
xDSL
C ATV
15
LAN+Sat.
Total
Br o a d b a n d Ma r k e t S h a r e
60%
50%
40%
30%
20%
10%
0%
2Q- 00 3Q- 00 4Q- 00 1Q- 01 2Q- 01 3Q- 01 4Q- 01 1Q- 02 2Q- 02 3Q- 02 4Q- 02 1Q- 03 2Q- 03
KT
Hanaro
Thrunet
16
Others
17
Broadband in Canada
1. Overview
Of these Internet households, roughly half some 3.5 million or 30% of total households subscribed to cable modem or DSL broadband
access services at the end of 2002. This is
expected to rise to 35% of total households by
the end of 2003 and to more than 50% by 20055.
On a per capita basis, broadband access in
Canada continues to exceed that in the USA by
almost two to one, although the USA recently
has begun to narrow this gap.
2. Competition
Penetration
Driving
Broadband
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b) Pricing
This competition for customers has kept prices
low. Retail pricing for both DSL and cable
modem service generally has remained constant
at around $C40 ($US30) per month since these
services were introduced. Recently some users
have begun to see modest increases, as both the
telecommunications providers and cable
companies introduce new tiered pricing plans
based on the speed of service. However, the
availability of lower priced schemes and the
bundling of Internet access with other services
mean that prices are unlikely to increase
substantially. Both the telephone companies
and cable companies are required to provide
third party access to their broadband access
services. However, reflecting low retail prices,
the wholesale market has been slow to develop
and the incumbent cable and telephone
companies remain the major suppliers in all
regions of the country.
3. Government Strategy
While competition remains the principal driver
of broadband growth in Canada, other factors
have been important. In particular, government
understood early on the importance of Internet
access and broadband connections for both
economic and social development.
A series of initiatives were launched beginning
in 1998 under the Minister of Industrys
Connecting Canadians agenda which, among
other things, sought to ensure a friendly policy
environment for e-commerce through a
technology neutral tax regime, creating the
legal framework for digital signatures in
electronic records and to protect personal
information and encourage the development of
voluntary business guidelines to protect
consumers conducting online transactions. It
also established an ambitious e-government
program with the result that, for the past several
years, Canada has led international surveys
measuring the availability of online government
services.
c) Alternative technologies
Alternative access technologies, including fixed
wireless
and
satellite,
are
available
commercially across the country but, since they
are mainly used only in areas with very sparse
population, they do not significantly affect total
figures. Several Wi-Fi pilot projects are
underway, including the provision of wireless
broadband access on trains in the heavily
travelled Montreal-Toronto corridor, and the
government recently has announced its
intention to make available additional radio
frequency spectrum for applications such as
Internet access.
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1. Overview
In
the
U.S.,
broadband
penetration
predominately
relies
on
landline-based
technologies
using
cable
television
infrastructure (cable modem) and wireline
telephony infrastructure (Digital Subscriber
Line).
December
2002
South Korea
Canada
Belgium
Denmark
Sweden
U.S.
Switzerland
Japan
Germany
U.K.
OECD
DSL
subscribers
Cable
subscribers
Other
subscribers
Total
subscribers
Subscribers
per 100
inhabitants
6,386,646
3,701,708
39,959
10,128,313
21.4
1,642,554
517,000
307,055
424,000
6,595,532
195,220
5,645,728
3,195,000
590,000
30,058,261
2,008,566
326,181
133,003
153,700
11,300,000
260,000
1,954,000
56,845
779,319
23,075,208
25,813
5,784
142,500
1,928,152
206,189
70,000
2,000
2,625,176
3,651,120
868,994
455,842
720,200
19,823,684
455,220
7,805,917
3,321,845
1,371,319
55,758,645
11.7
8.5
8.3
8.1
6.9
6.3
6.1
4.0
2.3
4.9
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22
Graph 1
T o t a l b r o a d b a n d a c c e s s lin e s
100%
9 4 .0 5 %
90%
80%
17 566 550
12 898 260
70%
60%
EU
20 000 000
18 000 000
16 000 000
14 000 000
10 791 385
12 000 000
9 052 497
10 000 000
50%
4 2 .4 8 %
40%
8 000 000
6 000 000
30%
20%
4 000 000
1 9 .2 1 %
2 000 000
10%
0%
J u ly 0 2
O c t. 0 2
Jan. 03
% v a r ia tio n s in c e J u ly 2 0 0 2
J u ly 0 3
T o ta l b r o a d b a n d a c c e s s lin e s
23
10%
10.44%
9.36%
8%
6.62%
6.64%
FIN
6%
4.09%
4.43%
4.47%
4.65%
4.72%
UK
EU
4%
2.82%
2.87%
2.33%
2%
0%
0.02%
EL
0.25%
IRL
NL
DK
Graph 3
D S L lin e s a s % o f P S T N m a in lin e s
16
1 3 .5 9
14
1 2 .5 1
% of PSTN lines
12
1 0 .7 0
10
8
6 .1 8
6 .7 3
6 .7 8
EU
7 .4 5
7 .6 9
NL
9 .7 0
9 .8 3
F IN
5 .3 0
3 .7 5
2 .6 8
2
0
0 .0 0
0 .0 1
EL
0 .3 2
IR L
UK
competition
DK
Multiple access
infrastructure.
in
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Graph 4
Broadband Split - CBS Market FLANDERS
Estimated
ADSL WS
9%
Telenet
50%
Other
Cable
7%
Estimated
ADSL WS
8%
ADSL RT
49%
25
Other
Cable
2%
ADSL RT
40%
5. Government Policy
Regulatory environment
Public policy
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