There are a myriad of steps governments can take, even when resources are limited, to increase access to fixed internet for their populations and ultimately to meaningful connectivity — affordable internet of a high enough quality to improve the quality of a person’s life beyond what is possible with basic coverage. This includes strong policy and regulatory environments that harbor competition and innovation, according to a group of experts who met virtually to discuss creating enabling regulatory environments for national broadband rollouts. The conversation was hosted by E3 Capital, an early-stage venture capital fund, the
United States Agency for International Development, and FMO, the Dutch entrepreneurial
development bank.
Emerging markets have experienced the “mobile miracle” enabling large swaths of their populations to access basic internet relatively cheaply through mobile phones. But there is a need now to ensure people have good access to fixed internet services in their homes which allow users to access the internet in greater volumes, creating the opportunity for greater social good, participants said. “We need to make sure that good, fixed and mobile broadband is available and is adopted universally,” said Paul Garnett, chief executive officer of the
Vernonburg Group. Paul was the creator of Microsoft’s Airband Initiative in 2017, which is an effort to enable meaningful connectivity across the globe.
THE JOURNEY OF A REGULATOR
The International Telecommunication Union, or ITU, the United Nations' specialized agency for information and communication technologies (ICTs), recently published its Benchmark for Fifth generation collaborative regulation, or G5 Benchmark in short, which helps countries enhance their legal, regulatory and governance frameworks.
As reported by Alex Wong, Chief of Special Initiatives in the Telecommunication Development Bureau at ITU, in the least advanced generation of ICT regulation – G1 – regulation of state-owned monopolies had been entrusted with the government using a ‘command and control’ approach. The next generations in the evolution of domestic regulations include the opening of markets, liberalization of the information and communication sector, and the development of a core regulatory function entrusted with autonomous regulatory authorities separate from the other arms of government.
These authorities work to stimulate competition in telecom and digital services, content delivery and consumer protection and are guided by integrated regulations led by national economic and social policy goals, with inclusive dialogue with all sectors in the country. Global best practice suggests that regulatory authority should have autonomous decision-making and enforcement powers in order to be able to regulate effectively and accelerate the digital transformation of economies and societies.
DEVELOPING A NATIONAL BROADBAND PLAN
Standing in the way of bridging the broadband gap are regulatory uncertainty, fragmentation, access to financing, especially for early stage companies, and availability of infrastructure and technology, Paul said. Countries can counter these challenges with a multi-year national broadband plan to guide policymakers and regulators in a transparent and inclusive way, coupled by an implementation strategy.
While infrastructure must be available to enable connectivity, it doesn’t stop there. Access must also be affordable, people need skills to use the technology, and available content online must be relevant to the user — including in local languages, Paul said. Countries need to foster the creation of a digital economy, with the development of applications and services that people can use in their daily lives.
“The hardest part is actually getting people to adopt the technology once it's available. This is really complicated and impacts communities differently,” he said. “You've got to address both the cost of technology plus all the other factors that prevent someone from adopting technology.”
Because of this, a national broadband plan must include supply side interventions, such as spectrum policy, and demand side interventions, such as stimulating adoption of technology, he added. Paul said that often ICT strategies are confused with national broadband plans. While an ICT plan is an all-of-government approach on how it will undertake a digital transformation, a national broadband plan is a long-term policy guide for broadband.
National broadband plans do not need to focus on the creation of Universal Service Funds. Many governments don't have the money to establish funds, but there are many other policy options at their disposal they can use to create the right environment for universal access, Paul said. Universal affordability spectrum policy is one example of that, which can enable connectivity initiatives to become commercially viable. Governments can also institute policies on rights of way, power access, power sharing and open access networks, he said.
MANAGING SPECTRUM ACCESS
Dynamic Spectrum Alliance, or DSA, works to promote flexible spectrum frameworks to enable the creation of larger provider ecosystems and to ensure spectrum is not a barrier for connectivity.
“Spectrum is the first resource for any type of wireless network. If regulators manage it in the right way, they're creating economic growth, and inclusion. It's really, really important to have the technical perspective and to be ready to innovate,” said Martha Suarez, president of DSA, adding that completely unlicensed or license exempt access enables this innovation. “If you create the right framework for spectrum sharing, you have a larger ecosystem. That way, you aren’t pushing all the requirements for network deployments on a few stakeholders,” she added.
Frameworks based on ‘use it or share it’ are also possible, Martha said. Under those circumstances, if those who have a license in a certain area aren’t providing connectivity, others, such as wireless internet service providers, can step in.
While it's good to have a balance between license, license exempt and shared access, in reality it's hard for many authorities to implement spectrum frameworks, Martha said.
Recognizing the role of small providers in the wireless ecosystem is important, she said, as they can develop sustainable community models, deploying fiber to complement wireless. Community networks have a strong presence in Latin America, for example. But these small providers need the right conditions to compete. They often only have access to unlicensed spectrum or license except circumstances, but should be provided with more, she said.
DSA advocates for the use of 6 GHz wifi band. “That way, they could have more channels, more bandwidth. And then we can provide better connectivity for those that are unserved or underserved,” Martha said.
Large investments are essential to improve 4G and 5G networks. If different stakeholders are providing affordable connectivity, then they have the right conditions to compete. In that way, spectrum sharing and flexible spectrum frameworks create a larger ecosystem and enhance competition, she said.
PUBLIC-PRIVATE PARTNERSHIPS ENABLED BY BLENDED
FINANCE
Increasingly important in the regulatory space is creating the right conditions for public private partnerships, according to Ryan Palmer, global digital equity strategist on the Microsoft Airband team. “It's clear that closing the global digital divide, including the adoption gap, is going to require all hands on deck, especially from aggressive public private partnerships,” he said.
Airband is partnering with USAID, for example, to address the gender digital divide by bringing internet access to women in remote areas. They are providing grants to partners in Guatemala, Ghana, India, Colombia, and Kenya, who will provide insight into what sorts of regulatory support is needed. “Public private partnerships, when done right, can drive sustainable change and digital transformation in unconnected communities. That’s why it's important to implement regulations and policies that support these types of arrangements,” Ryan said.
Many potential funders are put off by high investment risks. But blended finance allows organizations to invest in tandem, reducing risk and increasing impact, he said, adding that given the current economic climate, innovative financing models help enable the creation of resilient broadband networks when resources are limited.
TECHNOLOGY NEUTRALITY
There are a lot of options on technologies for connectivity available — from fiber connectivity to ground wireless to satellite technologies. Some deliver incredible speed, but are expensive, such as fiber. Others offer slightly less speed but are faster to deploy at a lower cost. With satellite connectivity, especially with low earth orbit satellites, there are the benefits of speed and latency but huge barriers in entry to deployment and there are capacity constraints, Paul said, adding that policymakers should enable companies to utilize all of the options that potentially could be available.
“As a policymaker, you don’t want to develop policies and regulations that advantage one particular technology over the other. Don't put all your eggs in one basket,” Paul said. “You want to create an environment where new technologies can enter that market.”
STRONG REGULATORY ENVIRONMENTS
In summary, the experts said regulatory authorities should liberalize the information and communications sectors in their countries, allowing for competition. They should also develop a clear mandate, as well become autonomous decision-making and enforcement powers. Regulatory uncertainty, fragmentation, and access to financing, especially for early-stage companies and the availability of infrastructure and technology are key challenges for the sector. Countries can counter these challenges with the development of a multi-year national
broadband plan. They should also foster the creation of a digital economy, promote flexible spectrum frameworks and invest in the infrastructure around 4G and 5G networks. Frameworks based on ‘use it or share it’ can be useful, as are community-based motels. Public-private partnerships and blended finance can also help to enable the growth of the sector.