Broadband Policy(19 Mar 10)

実はここにも

19 March, 2010

Takahiro KONOAdvisor on ICT Policy (JICA Expert)

Ministry of Information and Communication Technology (MICT)

How to accelerate broadband/ICT use in Thailand ?

1

National target : Steps taken in Japan on ICT Strategies

2001 2003 2004 2005 2006

e-Japan Priority

Policy Program

(March 2001)

e-Japan Strategy u-Japan policy of MIC

e-Japan Priority Policy

Program - 2002

(June 2002)

e-Japan

Priority Policy

Program - 2003

(August 2003)

e-Japan Priority

Policy Program

- 2004

(June 2004)

Re

aliz

ing

a

Ub

iqu

itou

s

Ne

two

rk S

oc

iety

e-Japan Strategy

(January 2001)

e-Japan

Strategy Ⅱ(July 2003)

e-Japan Strategy

II Acceleration

Package

(February 2004)

IT Policy package

(February 2005)

New IT Reform

Strategy

(January 2006)

◆IT Basic Law

◆Establishment of IT Strategy Headquarters

(Director General: Prime Minister)

u-Japan Promotion Program ２００６（September 2006）

Realization of a

self-sustaining ICT

Society

New IT Reform Strategy

Policy package

(April 2007)

2007

Priority Policy

Program - 2007

（July 2007）Priority Policy

Program - 2006

（July 2006）

2010©2008 Ministry of Internal Affairs and Communications. All Rights Reserved.

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Next Generation Broadband Strategy 2010 (Aug. 2006, MIC）

Target

By 2010FY,

①To enable all households in Japan to access to (or use)

broadband

(To eliminate broadband zero area)

②To enable more than 90% households in Japan

to access to (or use) Ultra Broadband

Target of broadband infrastructure in Japan

“New IT Reform Strategy” (Jan. 2006)(IT Strategy Headquarters (Head of Prime Minister))

Ultra Broadband : more than 30Mbps

3

What is broadband in Japan

1 Broadband : no clear definition

*3.5G (HSDPA(High Speed Downlink Packet Access) in Japan :

384kbps(uplink), 3.6Mbps(downlink)

2 Ultra Broadband

FTTH, DSL, CATV, FWA, BWA(WiMAX*)

more than 1Mbps(downlink)

speedFTTH, DSL,CATV, FWA,BWA + 3.5G*

more than 1Mbps speed

*WiMAX in Japan : 10Mbps(uplink), 40Mbps(downlink)

FTTH more than 30Mbps speed

Necessity of Broadband Network

Broadband : Basic infrastructure (same as water, gas, electricity)

No young generations or no industry in rural area !!!

No broadband environment

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Ratio of Households on Broadband Service Coverage

New IT Reform Strategy(IT Strategic Headquarters, 2006)

Next Generation Broadband Strategy(MIC, 2006)

Next Generation Broadband Strategy(MIC, 2006)

BroadbandElimination of All Broadband

Zero Areas

93.9%(47.33 m

households)

98.3%(50.83 m

households)

98.6%(51.59 m

households)

Ultra-High-

Speed

79.7%(40.15 m

households)

86.5%(44.71 m

households)

89.5%(46.82 m

households)90%

FY2010Targets

(by March 2011)

March 2006 March 2008September

2008

(Estimation)

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Total number of households: 52.88 million (as of March 2009)

* Ultra-High-Speed: FTTH, Ultra-High-Speed CATV, etc.

Broadband Availability Map

Hokkaido

Prefecture Tokyo

Metropolis

Ultra-High-Speed

DSL Cable Internet/Wireless

In order to illustrate Broadband availability, Broadband Availability Map is regularly updated by MIC based on the inputs from 11

Local Broadband Promotion Committees, each of which is comprised of MIC’s Local Branch Office, Prefectures, Local Govt., and

Telecom Operators.

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How to verify the coverage area

of the broadband service ?

< Important >

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Number of Broadband Subscribers in Japan

FTTH16,519,000

DSL10,505,000

CATV4,262,000

FWA13,000

Total31,322,000

Population: 127.08 millionHouseholds: 52.88 millionVoIP subscribers: 20.22 million

(As of March 2009)

1. FTTH increase > DSL increaseMarch 2005

3. FTTH > DSLJune 2008

2. DSL Downturn June 2006

4. Exceeded 30 mil.Dec. 2008

BWA23,000

5. FTTH Exceeded 50%June 2009

FWA: Fixed Wireless AccessBWA: Broadband Wireless Access

(Unit: household)

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How to expand broadband/ICT infrastructure in Thailand ?

< Japan >

8

Fixed Line (Copper Cable)

Mobile(Wireless) Optical Fiber

ADSL

3G, WiMAX etc. FTTH

< Thailand >

Fixed Line (Copper Cable)

Mobile(Wireless)

Optical Fiber

ADSL

3G, WiMAX etc.

FTTH

Fixed line has been covered.

# Fixed line has not been covered yet.

easy to expand ADSL service

difficult to expand ADSL service

# Mobile (Wireless) : key technology to

expand broadband infrastructure in Thailand

Initial cost low

Capacity not enough

# FTTH : also required in the future

Conclusion (Proposal)

1 How to accelerate broadband/ICT use in Thailand ?(1) To build infrastructure

(2) To promote broadband use

2 To build infrastructure(1) To set clear mid/long-term vision/policy targets (also easy to verify) by the

Government

(2) Wireless technology (3G, 3.9G(LTE*), WiMAX etc.)

Key technology to expand broadband infrastructure in Thailand

3 To promote broadband use

- To inform people of the usefulness and attractiveness of broadband or ICT use

To show a successful example of ICT use

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< Activities >

-ICT Pilot projects (Telemedicine, Tele-education etc.)

-Seminar/Workshop

-Broadband use in public sector

-Exhibitions etc.

*LTE : Long Term Evolution

100Mbps(downlink) / 50Mbps(uplink)

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Reference

Example of ICT pilot projects (e-medicine for pediatrics)

＜Nanto City, Toyama Prefecture＞

Remote Consultation

Remote Consultation

Remote Consultation

In order to assist hospitals without a specialist for children ‘s diseases, by using ICT,

the specialist supports diagnosis for children in the rural areas hospitals

Network for medical use

Nanto City Central Hospital

Nanto Citizen Hospital

Toga Medical OfficeKamidaira Medical

Office

Taira Medical Office

Nanto Regional Medical

Center

Home for the

elderly

Home for the

elderly

Toyama

University

hospital

hospital

clinic

11

Nurse Station

Nanto City Medical

Association

Key Drivers for Japan’s Broadband Expansion

1. Clear mid/long-term Vision/Policy targets setby the Government

2. Introduction of Competition Measures by MIC- Unbundling Rule (line-sharing) and Co-Location Rule

3. Demand-pull market expansion due to widespread of broadband contents- Large photo files, e-mail with attached files,YouTube, websites with Flash function, Peer-to-peerfile sharing etc.

4. A Monthly Flat Rate

5. Introduction of attractive new price packagesby competitors- Yahoo! BB (\2,280/month, Sep. 2001)- K-Opti.com (FTTH/VoIP Combo \5,200/month, Sep.2004)

6. NTT’s steady investment in optical fiber networkthat accommodates wide FTTH expansion- Access Network Opticalization Ratio: 43%(FY2000),89%(FY2007)

Chronology

Phase 2 (2004-present)- Sep. 2004 K-Opti.com, a subsidiary of an electric

power company, started low-pricedcombo service of FTTH & VoIP for\5,200/month, cheaper than total price ofADSL & ordinary phone of \5,547/month

Phase 1 (1999-2004)- Sep. 2001 Yahoo! BB started low-priced ADSL service

(8Mbps, \2,280/month)- Apr. 2001 Unbundling Rules for Optical Fiber- Sep. 2000 Unbundling Rules (line-sharing) for Copper

Cable (\97/month)- Sep. 2000 Co-Location Rules- Dec. 1999 Tokyo Metallic Com. started ADSL

commercial test (\5,500, later transferredto commercial)

Phase 0 (1994-1999)- Government-led strategic target of optical fiber

deployment and NTT’s steady investment.

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Promotion Schemes for Nationwide Broadband Deployment

Measures for Local Governments Measures for Telecommunications Operators

NICT will guarantee 80% of a loan made by a private telecommunications operator from a fund for building broadband facilities, such as optical fiber and ADSL, for providing telecommunications service.

Interest Aid

2. Reduction of Tax Bases for Fixed Asset Taxes (Local Tax)Partial reduction of the tax base for fixed asset taxes is allowed for telecommunications operators building broadband facilities, such as optical fiber and ADSL, for providing telecommunications service.

Tax Breaks

1. Accelerated Tax Depreciation (National Tax)Accelerated tax depreciation is allowed for telecommunications operators building broadband facilities, such as optical fiber and ADSL, for providing telecommunications service.

Debt Guarantee

National Institute of Information and Communications Technology (NICT) will grant a subsidy of interest aid with a maximum interest of 2% for a loan made by a telecommunications operator from a fund for building broadband facilities, such as optical fiber and DSL, for providing telecommunications service.

Note: Conditions apply for each scheme.

1. Local Information and Communications Infrastructure

Development Grants (ICT Grant)• Grants equivalent to one third of total project cost will be

provided to local governments that will build broadband facilities to address the digital divides.

• Budget: 7.9 billion yen (FY2009―April 2009 to March 2010)

2. Local Intranet Infrastructure Facility Development Promotion Grants• Grants equivalent to one third of total project cost will be

provided to local governments that will build broadband or ultra-high-speed local public networks connecting public facilities such as schools, libraries, and municipal offices.

• Budget: 2.2 billion yen (FY2009―April 2009 to March 2010)

Local Governments are allowed to use Special Local

Allocation Tax and to issue local government Bonds,

such as Depopulated Area Development Bonds, for a variety of their policy needs, and they may utilize

these schemes for building broadband facilities, such

as optical fiber and ADSL.

Local Government Financial Measures

Grants/Subsidies

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