ITU Workshop – Survey and Assessment for Internet Traffic Infrastructure 6 November 2012 Movenpick Tower and Suite Hotel, Doha Sofie Maddens Toscano ITU.

ITU Workshop – Survey and Assessment for Internet Traffic ITU Workshop – Survey and Assessment for Internet Traffic InfrastructureInfrastructure

6 November 20126 November 2012Movenpick Tower and Suite Hotel, DohaMovenpick Tower and Suite Hotel, Doha

Sofie Maddens ToscanoSofie Maddens ToscanoITU ExpertITU Expert

Session Two: Effective Framework for Session Two: Effective Framework for Infrastructure Development: A Key Infrastructure Development: A Key

Enabler for the Development of Enabler for the Development of Applications and Services Applications and Services

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Key Elements for Infrastructure DevelopmentGovernance Framework– Institutional

Framework, Policy and Legal and Regulatory Framework

Physical infrastructure - Internet infrastructure must be available, affordable, and have sufficient capacity and content for people to [want to/need to] access information

Capacity Building

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Key Governance Issues

Institutional framework and stakeholder coordination

Implementation of key regulatory and policy issues to promote infrastructure roll-out, stimulation and take-up

Issues related to the surge in use of evolving online applications and services

Environmental issues Regulatory Framework for Financing of

Infrastructure roll-out and take-up

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“Well-articulated broadband strategies and plans are now needed

to ensure that all citizens get to benefit from new applications, services and business that the

broadband world helps bring into being”

Brahima Sanou, Director of ITU’s Telecommunication Development Bureau

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Reasons for Broadband Strategy

Strategies normally set the stage for policies, programs, projects and regulatory measures that implement any defined vision

Strategies are useful to send the right signal to investors about long-term investments opportunity

Strategies are useful to provide insight about how the legislative and regulatory environment might evolve over time

Strategies need to be flexible enough to evolve

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Source: ITU Regulatory Database

More than 130 governments worldwide have adopted or are planning to adopt a national policy, strategy or plan to promote broadband

Many broadband policies and plans focus on building nationwide broadband infrastructure, stimulating demand through the adoption of online services and applications, and extending connectivity to provide universal access

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Broadband Strategies - overview

Institutional Framework

Today there are 158 separate telecom/ICT regulators worldwide

Mandates of regulators have been expanded to include:

Information technology and broadcasting (broadcasting content - 18 %)

Electronic content, cybersecurity, data protection, and privacy (regulators in charge of cybersecurity - almost 40 %; regulation of Internet content - 16 %)

Environmental matters

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International best practice shows that a solid national regulatory framework is seen as a key requirement to accelerate infrastructure roll-out and to stimulate the development of new digital goods and services

What does this mean in effect?9

Why Regulatory Intervention?

Legal and Regulatory Issues

Licensing- General Authorization Regimes for Electronic Communications networks and services to facilitate market entry

Spectrum – flexibility and shared use to promote efficiency - in-band migration, spectrum sharing and spectrum trading,

Universal access and service strategy aimed at promoting investments in more remote areas which may include Broadband

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Legal and Regulatory Issues Regulatory decisions to foster competition and

reduce prices in the telecom market, including market analysis, tariff regulations, mobile number portability

Access Measures including regulations on leased lines, active and passive infrastructure sharing, rights of way and local loop unbundling

The EC estimates that around 80% of the costs of deploying new infrastructure are civil engineering costs and these can be greatly reduced using town planning rules and regulatory remedies mandating access to passive infrastructures. Possible measures

– Making the installation of new passive infrastructures and in-building wiring a requirement for planning authorizations.

– Encouraging local authorities and regulators to make use of their powers to require the disclosure of the existence and condition of local access infrastructures from operators

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Legal and Regulatory Issues

Laws which are essential to the development of the Information Society - e-signature, cybercrime, protection of minors, electronic commerce, and e-documents

Social Media issues – local presence, public awareness, privacy and use

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“As broadband delivers “smart” solutions for our modern lives, regulators and policy-makers must develop “smart” regulatory frameworks for a broadband world”

Brahima Sanou, Director of ITU’s Telecommunication Development Bureau

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Physical Infrastructure Internet infrastructure must be available,

affordable, and have sufficient capacity for people to access information

Access remains among the top major challenges in the Arab region

At the end of 2011, the Arab States overall had reached an estimated Internet penetration of 29.1%, compared to 34.7% globally

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Physical Infrastructure The Internet is an international “network of

networks”

In order to provide the physical connections between widely separated broadband resources and consumers, countries must establish international links (gateways) to connect to the world’s Internet and telephone networks, but also ensure effective middle and last mile solutions

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Physical Infrastructure International connectivity to developing regions

has increased dramatically in recent years

In Africa a number of submarine cables were launched, such as EASSy, Main One and GLO-1 in 2010 - it is projected that by the end of 2012 almost every coastal African country will have at least one submarine cable connection, with a number having more than 5 connections

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African Fiber cables

• Between 2009 and mid-2010, East Africa went from 0 undersea fibre capacity to over 6 Tbps

• Submarine cables reach 4.4% of Africa’s population

• 25.8Tbps of Submarine cable capacity by 2012

• In East Africa prices dropped from $2k – $12k USD per Mbps (satellite) to $150- $600 USD per Mbps

• Round trip times dropped from circa 800ms to circa 200ms

Terrestrial Fiber

• Increased investments by Governments and private sector

• By July 2012, Africa’s total inventory of terrestrial transmission networks reached 732,662-km

• Some regions are more aggressive than others

• 313m people were within reach of a fiber node

• Expected to reach 50% of population with completion of planned projects

•Cross border interconnection is still a challenge

Physical Infrastructure Service providers need to contract physical

international connections in order to support their end user broadband requirements

They do so either by participating in ownership consortiums of the physical facilities or by leasing connectivity through wholesale operators Note: A relatively small number of Internet service

providers (ISPs) have the financial resources needed to invest directly in capacity in international backbone broadband networks, so most lease capacity from larger international operators

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Physical Infrastructure National and middle mile capacity still

represents a significant portion of the cost of broadband – more competition is needed

Need for holistic approach to infrastructure to backhaul from the landing stations to operators’ main points of presence and between those PoPs: options may include terrestrial fibre as well as satellite and fibre over power lines

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Physical Infrastructure As the Internet increasingly globalizes, the

interconnection between networks, content providers and users is more and more critical to creating the ‘network of networks’ that is the Internet

At the center of this globalization are Internet exchange points (IXPs), facilities where all Internet players can interconnect directly to each other, thereby improving quality of service and reducing transmission costs

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Physical Infrastructure Internet Exchange Points (IXPs) are locations

where a variety of providers (including ISPs, content providers, and enterprises) can locate servers and caches in order to exchange traffic with one another

IXPs act as centers of connectivity where content can be stored on servers and easily delivered to ISPs at low cost and with low latency

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Physical Infrastructure IXPs typically follow a gradual evolution path, building

on the growing number and diversity of their members over time Early in the Internet development cycle – more cost-

effective to use their international Internet connections to exchange domestic traffic - ‘tromboning’

The establishment of an IXP in the country enables local ISPs to connect directly together and exchange domestic traffic, typically with settlement-free peering, thereby reducing or eliminating tromboning and saving cost on international transit while reducing latency

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Physical Infrastructure Increased need to localize Internet interconnection

consumers’ growing demand for services with increasing bandwidth (such as video)

lower tolerance for latency (such as Voice over IP)

The Kenya Internet Exchange Point (KIXP) localizes more than 1Gbit/s of peak traffic reduces latency (from 200-600ms to 2-10ms on average) has allowed ISPs to save almost $1.5 million per year on international

connectivity has increased mobile data revenues by an estimated $6 million for

operators having generated at least an additional traffic of 100Mbit/s per year1;

helps the localization of content in the country including from Google; is critical to raising government tax revenues increasingly acts as a regional hub for traffic from neighboring countries

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Physical Infrastructure To the extent that the IXP begins to build critical mass,

involving most or all of the ISPs, it will also begin to attract content providers, along with business, academic, and government users, and thereby become the center of a vibrant Internet ecosystem in the country

Further, the IXP can also begin to attract international content and connectivity providers, becoming a regional center for Internet traffic

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Physical Infrastructure

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Source: Kende, M., Report for the Internet Society: How the Internet continues to sustain growth and innovation, October 2012

Physical Infrastructure

More than 350 IXPs are now operational worldwide with the US leading, at about 86 IXPs around the country

The other countries with more than 10 IXPs are: Australia (11), Brazil (19), France (15), Germany (14), Japan (16), Russia (14), Sweden (12), and United Kingdom (12)

91 countries have so far established operational IXPs

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Internet Exchange Points in Africa 26 Internet exchange points

(IXPs) in Africa of which only 20 are known to be operational

21 African Countries (39%)

South Africa (3), Tanzania (2), Nigeria and Kenya (2) are countries with more than 1 IXP

West Africa has lowest number of IXPs by ratio (30%)

New IXPs launched in Lesotho and Sudan in 2011

Source: www.nsrc.org

Physical Infrastructure

According to Packet Clearing House Report on Internet Exchange Point Locations, there are 6 Arab Countries with IXPs : Egypt Lebanon UAE Bahrain Lebanon Saudi Arabia

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Physical Infrastructure

But is the access challenge dependent only on infrastructure or on affordability or is it also a function of how rich, vibrant, and relevant the online content is?

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Benefits of Access

Arab countries can benefit from the Internet to guarantee good governance mechanisms through establishing e-government, reinforcing the notion of freedom of expression, access to information in order to increase citizens’ participation in the local policy making process

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Capacity Building An IXP benefits from network effects – the more members

it has, the more valuable it becomes to join the IXP in order to be able to exchange traffic with the existing members

As a result, a well-run IXP providing such benefits can develop critical mass, becoming home to many or all of the ISPs and content providers in the country, and bringing significant benefits to its members and the surrounding ecosystem

IMPORTANCE OF CAPACITY BUILDING

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Advancing the Value and Viability of IXPs

Level “0”No IXP

Level 1“Boxes and Wires”

Level 2Core Functionality

Level 3Catalysing Growth

Level 4Thriving, Critical Infrastructure

• Not all at the same level of development!

• Most current IXPs only between “Level 1 and 2”

• We aim to move African IXPs “Up the Curve!”

African Internet Exchange System (AXIS)

The Internet Society has been contracted by the African Union to conduct 60 capacity building workshops in 30 countries (AU Members states) without IXPs. 30 Best Practice Workshops and community mobilization 30 Technical Aspects workshops (hands-on)

AXIS project supports the establishment of a continental African internet infrastructure.

The project aims to create an African internet system through setting up: internet exchange points in 33 African countries five regional internet hubs five regional and three continental internet carriers

This will help move many countries from Level 0

Sources

Analysys Mason Limited and The Internet Society (ISOC), Assessment of the impact of Internet Exchange Points – empirical study of Kenya and Nigeria, 2012

Analysys Mason Limited and The Internet Society (ISOC), How the Internet continues to sustain growth and innovation, 2012

ITU, Smart Regulation for a Broadband World, 2012 Promoting the use of Internet Exchange Points (IXPs): A

Guide to Policy, Management and Technical Issues, March 2012

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Thank you!

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Sofie Maddens Toscano

Senior Director Global ServicesThe Internet Society

Email: [email protected]