[CAnet - news] New OECD Broadband stats - Canada continues to drop

For more information on this item please visit my blog at=20
http://green-broadband.blogspot.com/ or http://billstarnaud.blogspot.com
-------------------------------------------

 [The latest OECD broadband stats are now available with some very
interesting analysis of issues related to future FTTh networks. Canada =
used
to be to number 2 in the OECD broadband standings. It is now number 10. =
The
CBC report provides a good summary of how Canada continues to lose its
broadband edge which should be an important lesson to other countries
looking at the challenges of national broadband.  Some excerpts from =
OECD
and CBC reports. Thanks to Sandy Liu for the CBC pointer--BSA]

Latest OECD Broadband standings
http://www.oecd.org/dataoecd/32/58/40629032.pdf main findings
http://www.oecd.org/dataoecd/32/57/40629067.pdf full report

The report notes that:


. Governments need to promote competition and give consumers more =
choices.
They should encourage new networks, particularly upgrades to fibre-optic
lines.

. Governments providing money to fund broadband rollouts should avoid
creating new monopolies. Any new infrastructure built using government =
funds
should be open access - meaning that access to that network is provided =
on
non-discriminatory terms to other market participants.=20


 The regulation of new broadband connections using fibre to the end user
will likely be the subject of considerable debate in the next few years. =
The
pressing question is whether fibre optic cables extending to homes,
buildings and street curbs should be regulated in the same way as
traditional copper telephone lines. As new fibre connections may fall
outside existing regulatory frameworks, a re-evaluation of existing =
policies
may be required. Regulators should consider whether network =
architectures
still relying on portions of the historical copper telephone =
infrastructure
should be treated differently from new all-fibre networks.

. Regulators and policy makers are increasingly concerned about =
fostering
competition on next-generation broadband networks. Some are examining =
the
functional separation of the dominant telecommunication provider into =
two
units, one which handles the physical lines and the other which provides
retail services over the lines as a way to ensure fair and
non-discriminatory access to "last mile" infrastructure. The results of
functional separation, particularly on investment, are still far from
certain and warrant significant research. Regulators should actively
consider other policy options at the same time, which may provide =
similar
outcomes - such as requiring operators to share the internal wiring in
buildings.

Governments need to actively look for ways to encourage investment in
infrastructure. Civil costs (e.g. building roads, obtaining rights of =
way)
are among the largest entry and investment barriers facing =
telecommunication
firms. Governments should take steps to improve access to passive
infrastructure (conduit, poles, and ducts) and co-ordinate civil works =
as an
effective way to encourage investment. Access to rights-of-way should be
fair and non-discriminatory. Governments should also encourage and =
promote
the installation of open-access, passive infrastructure any time they
undertake public works.

Governments should not prohibit municipalities or utilities from =
entering
telecommunication markets. However, if there are concerns about market
distortion, policy makers could limit municipal participation to only =
basic
elements (e.g. the provision of dark fibre networks under open access
rules).

Maintaining a level-playing field and reducing anti-competitive =
practices in
the face of high network effects and to promote consumer choice is =
crucial,
i.e. in particular considering the increased use of walled garden
approaches, as well as cross-industry mergers and acquisitions. With
problems such as vertical integration, lock-in of consumers in certain
standards, and poor access to certain content, an environment of =
contestable
markets should be created where small and innovative players can =
compete.
Further analysis of recent trends and impacts of concentration is also
needed. When necessary, anti-trust and other policies have the means to
restore competition. . It will be crucial to monitor and analyse the new
market structures of broadband software, service and content providers =
in
the next few years. Governments have a lot of experience when it comes =
to
ensuring efficient telecommunications markets. However, when it comes to
broadband applications, services, software and content, this is mostly =
new
territory. It is important in the coming years that policy makers =
understand
the impacts of new broadband market structures and question whether =
current
policy approaches for ensuring competition actually work.

Governments must intensify efforts to ensure there is sufficient R&D in =
the
field of ICT, so that the economic, social and cultural effectiveness of
broadband is guaranteed. The role of government and business in basic =
R&D
may have to be reaffirmed. Any government neglect in this area should be
monitored as well as examples of inadequate policy co-ordination, with =
the
aim of increasing the efficiency of broadband-related R&D.

. Strengthening broadband research networks (grids), and facilitating
international co-operation through such networks and collaborative =
research
should be a policy priority.

*  Denmark, the Netherlands, Iceland, Norway, Switzerland, Finland, =
Korea
and Sweden lead the OECD with  broadband penetration well above the OECD
average, each surpassing the 30 subscribers per 100 inhabitants =
threshold.


http://www.cbc.ca/technology/story/2008/05/20/tech-broadband.html


Canada's global edge in broadband dwindling

Canada's early position as a global broadband internet leader continues =
to
erode, with the country sliding in the latest subscription rankings from =
the
Organization for Economic Co-operation and Development.

Canada had 8.6 million broadband subscribers as of December 2007, or =
about
26.6 per 100 inhabitants, enough to rank 10th among the 30 developed
countries that make up the Organization for Economic Co-operation and
Development. In the OECD's previous survey six months ago, Canada ranked
ninth, while in 2002 it placed second behind South Korea.

Internet experts said the report painted a poor picture of the state of
competition in Canada, where many people tend to have only one or two
internet providers - usually a phone company versus a cable firm - to =
choose
from. While ISPs fought vigorously for customers in the early part of =
this
decade by offering enticing deals, which reflected Canada's early lead, =
they
have become less competitive over the past few years.

"This reflects poorly on Canada's advancement in the information =
economy,"
said University of Ottawa internet law professor Michael Geist. "Canada
remains woefully uncompetitive . We're getting a poor deal."

The average broadband connection in Canada, about 7 mbps, ranks below =
that
average. Canada also fared poorly in cost versus the speed provided, =
ranking
27th out of 30 at $28.14 U.S. for average broadband monthly price per
advertised megabit per second.

Issues that are of concern to Canada, he said, are the download =
limitations
imposed on subscribers - caps that have thus far not been introduced by =
ISPs
in the United States. According to the report, download caps could hold =
a
country's businesses back by limiting their online development.

"This may become an economic disadvantage in countries with relatively =
low
bit caps, particularly as more high-bandwidth applications appear," the
report said.

Typical limits on Canadian internet connections are 60 GB per month, =
with
higher-end plans offering around 100 GB. In the U.S., ISPs currently =
give
customers unlimited downloading, with Comcast, the nation's largest
provider, considering a cap of 250 GB - more than quadruple the typical
Canadian limit.

Canada has also not benefited from regulations that allow smaller
third-party ISPs to access the networks of large phone companies such as
Bell Canada, a practice that has flourished in Europe, Reynolds said. A =
rule
known as "local-loop unbundling" allows smaller ISPs to rent out =
portions of
a large phone company's network, then attach their own equipment to =
provide
customers with internet access.

The OECD report also noted that several countries are taking the lead in =
the
next generation of broadband deployment - superfast fibre networks. =
About 40
per cent of Japan's broadband connections are fibre, with South Korea =
coming
second at 34 per cent. Most of the OECD - 18 countries, including Canada =
-
have not yet begun rolling out fibre.



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[email protected]
web: www.canarie.ca/~bstarn
skype: pocketpro
blog: http://billstarnaud.blogspot.com/


-----------
[email protected]
[email protected]
web: www.canarie.ca/~bstarn
skype: pocketpro
blog: http://billstarnaud.blogspot.com/


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