Financing Broadband Networks of the Future to bridge digital

Knowledge Graph of Debate

Session report

Hokuto Nakagawa

In the detailed dialogue, two protagonists, Miss Adriana Labadini and Mr. Alejandro Solano, undergo an audio-visual check, addressing communication requirements to seamlessly partake in an impending discussion.

The dialogue initiates with the probe into Miss Adriana Labadini’s auditory capabilities, to which she eagerly responds in affirmation. Thus, her active participation in the auditory sphere of the exchange is substantiated. Following this, her visual confirmation, though providing evidence via her camera, is solicited. She acquiesces to the appeal, ensuring her visibility to co-participants, confirming her visual presence, adding another feather to the conversation’s cap.

The same methodology of validation was carried out for Mr. Alejandro Solano, with a focus initially on substantiating his auditory faculties with respect to the dialogue at hand. With an affirmative rejoinder, his auditory engagement is secured. Consequently, he is tasked to provide ocular evidence establishing his readiness via his camera. With a successful appearance on camera, Mr. Solano’s visual participation was similarly ratified.

By the end of the dialogue, it’s evident that both primary participants have validated their auditory and visual presence, staging up for any forthcoming communication. This procedure exemplifies a diligent paradigm to ensure smooth, undisturbed discourse in an unspecified future agenda. As a preamble to conversation flow, attention to such nuances often mitigates unexpected technical hitches, subtly promoting the proficiency of the conversation as a whole.

Agnė Vaiciukevičiūtė

The proven collaboration between the public and private sectors is instrumental in the achievement of connectivity objectives and the rollout of broadband networks. The Lithuanian case is a stellar example of this successful partnership, reflecting positively on SDG 9: Industry, Innovation, and Infrastructure. This collaborative approach prompts the government to concentrate on crafting the optimal legal and regulatory ecosystem, with the private sector augmenting official efforts.

Considerable achievements in the realm of network connectivity characterise Lithuania’s performance. The country’s success is evident in the exceptionally high figures associated with the rollout of fixed, very high-capacity networks and fibre to the premises, both surpassing the European Union average. Furthermore, Lithuania’s 5G coverage is on par with that of Japan, underscoring the nation’s substantial strides in this field.

At present, Lithuania is focusing its attention on facilitating access to gigabit broadband infrastructure. Accomplishing this ambitious aim within the next five years involves covering all significant digitally-sensitive users and allocating substantial funds from the Lithuanian government.

Lithuania demonstrates the critical role of the government in ensuring equal access to digital opportunities, irrespective of geographical location. The government proactively established a non-profit company specifically to deploy broadband infrastructure in rural areas, a model that has been effective for 18 years. Prices for wholesale services under this model are predicated solely on costs.

Lithuania advocates for the use of public funds to draw private investments into rural and remote areas. With no economically viable model for private companies to invest in these locations, the government provides a large part of the investment, paving the way for roughly 40 operators to purchase more than 5,800 units for wholesale services from the non-profit company.

Investment in 5G infrastructure is a priority for Lithuania, with the nation taking proactive measures related to self-driving cars and drones from a legislative perspective. Additionally, an impressive sum exceeding £25 million has been allocated for use cases on 5G. By the end of the current year, Lithuania aspires to launch a significant number of substantial 5G projects in various industries.

However, barriers remain, including the need to overhaul the existing legal framework for faster deployment. Current frameworks necessitate a two to three-year period for deployment, a delay Lithuania hopes to contract. Furthermore, synergy with other utilities is essential, particularly when amending road and communication infrastructures to prevent future issues.

Lithuania also underscores the importance of optimising investments. The country is working tirelessly to minimise the periods between the dedication of investments and the implementation, to expedite deployment and accelerate infrastructural development.

Overall, Lithuania has taken important steps to ensure holistic broadband connectivity, particularly in rural areas. The government-backed non-profit company, active for over 18 years since Lithuania regained independence, has been instrumental in bridging the gap between government investments and operator activities. With the government largely financing deployments and operators taking on the final connection to users, this model has achieved time-efficient and effective service provision.

In conclusion, Lithuania’s strategic separation of investment and implementation roles between the government and telecom operators has fostered efficient and widespread broadband coverage across the country. This successful model, fostering substantial digital gains in both urban and rural realms, lends itself to replication in other countries striving to enhance their digital connectivity levels.

Adriana Labardini

The comprehensive analysis primarily centres around the escalating challenge of the digital divide, emphasising that the market alone is inadequate to resolve this pressing issue. This viewpoint is supported by evidence from the Association for Progressive Communications (APC) and its partner organisation, Resomatica. Both have been supporting local network programmes across three regions of the Global South and in as many as 22 countries. These organisations argue for empowerment through building community-owned internet infrastructure, supplying a viable solution for underserved communities to gain control over their digital futures.

APC’s study, ‘Financing Mechanisms for Locally-Owned Infrastructure’, was conducted to heighten alertness within the financial community. The research unveiled how APC’s grant-making activities have helped establish infrastructures in several communities, further substantiating this approach.

The analysis underscores the necessity for sustainable, local-level investment, particularly the use of ‘green finance’, to achieve quality education and other Sustainable Development Goals (SDGs). APC advocates for an empowering policy environment and capacity-building. The significance of sustainable investment has been further exemplified through the lessons learned during the global pandemic.

Despite this, the analysis presents a negative sentiment towards the prohibitive pricing of backbone networks and artificial scarcity in the spectrum. This bosoms as a regulatory obstruction, causing unused spectrum in rural regions. The analysis underlines calls for a shift toward these policies.

Criticism towards financial entities and development banks was expressed, suggesting a limited understanding of new models and community networks. Beyond expanding the financial sector’s understanding of the value of local networks, it advocates for enhancing financial and managerial education within communities, thereby bridging the knowledge gap.

The review encourages the global financial community to invest in sustainable, local development models, suggesting these more eco-friendly approaches have a minimised environmental impact and align with ESG standards.

The analysis proposed changes to policy-making and communication networks. It advocated for affordable spectrum access, simplified licensing regimes, open data visibility for rural infrastructure, and the redefinition of universal service funds to support local operators.

Ending on a social note, the need for gender equality in community network funding was underscored, citing Brazilian recommendations for funding women-led initiatives. Finally, a more efficient policy-making approach was proposed by advocating for the sharing of unterutilised spectrum. This exhaustive review offers critical insights into triumphing over the digital divide, advocating for sustainable ‘green finance’, and liberalising communication networks, all of which underscore the urgent need for strategic reforms.

Verena Weber

Verena Weber prominently highlighted the crucial role of broadband connectivity in the process of digital transformation across economies and societies. The point she underscored is that digital transformation is not a standalone process but is deeply interconnected with the degree of connectivity offered by robust broadband networks. This connectivity, in return, heavily relies on the amount of investment and funding devoted to them. Weber’s insights suggest that the quality and coverage of broadband networks directly result from adequate financial inputs.

In an effort to maximise network infrastructures, Weber advocated a holistic approach that considers every potential contributor to infrastructure funding. This includes the diverse ecosystem of the communication operators who deliver broadband, tech companies that create solutions to maximise network reach and efficiencies, and private funds, which often constitute an essential part of financial investments in infrastructure.

Meanwhile, the OECD is keenly aware of this complex, multifaceted ecosystem and is taking proactive steps towards devising methods to quantify investments within it. Such measures would help create a more transparent and fair environment where investment efforts are accurately measured and acknowledged, thus encouraging increased participation.

Further to these perspectives, a significant observation was made regarding the trend in government funding strategies. There has been a marked increase in state funds channelled towards enhancing connectivity, particularly in remote and rural areas. This development underscores the recognition from government bodies of connectivity’s importance as a facilitator for digital transformation and economic growth.

In conclusion, investment in broadband infrastructure emerges as a key driver in the digital transformation of societies and economies. Both Weber’s advocacy for a more holistic approach and the OECD’s intent to quantify investment suggest a move towards more strategic, fairer, and diverse investment practices, ultimately leading to more inclusive digital growth.

Audience

The discourse primarily focuses on the pivotal role of government intervention in establishing and maintaining networks in rural regions. A probing enquiry from an audience member, keen to understand the operation of a specific governmental agency in Lithuania, devoted to rural areas, instigates this discussion. Further interest in a distinctive fund in Japan, dedicated to the preservation of rural networks, is manifested by the same member.

The audience member’s insights evince an understanding of the requisite governmental-regulated services, particularly in regions potentially lacking comprehensive infrastructural facilities. The neutral sentiment expressed suggests an absence of conflict and a sincere quest to explore plausible solutions for the complex challenges posed to rural networks.

Significantly, the debate aligns with the global developmental aim, specifically Sustainable Development Goal 9, spotlighting industry, innovation and infrastructure. This correlation underpins a conscious commitment towards building an advanced, equitable society. It implies the vital recognition that remote and rural areas must be inclusively considered in the pursuit of comprehensive network coverage and tech-driven growth.

Moreover, the audience member implies an advocacy stance for heightened government involvement to sustain and bolster rural networks. This stance demonstrates an appreciation of the government’s cornerstone role in promoting equitable access to technological progression.

The salient themes drawn from this discourse, centered around government intervention and rural locales, amplify the importance of these facets within the comprehensive conversation. Although no solid evidence or supporting facts are presented, the exploration’s intrinsic value lies in its presentation of diverse international perspectives, using Lithuania and Japan as discerning examples.

Kojo Boakye

Meta, formerly known as Facebook, has been playing a significant role in advancing Africa’s digital infrastructure. The company’s substantial investments in infrastructure networks have focused predominantly on submarine cables, terrestrial fibre, Content Delivery Networks (CDNs), co-located caching, and services. Among its most noteworthy projects is a cable built between the U.S. and Spain, which has already had a significant economic impact of nearly nine billion and one trillion cable actions. The company also anticipates the launch of two more cables, projected to add $32 billion and $27 billion to the economies of the countries involved; they are set to go live in 2024 and 2027 respectively.

In this wave of technological innovation, Meta has become a contributing partner in the 2Africa project, one of the world’s most extensive subsea cable projects. This significant feat of engineering aims to connect east to west through southern Africa with an impressive 180 terabytes of capacity, effectively linking 33 countries. The project’s vast capacity and redundancy benefits have elicited excitement from stakeholders such as Kojo Boakye and promise a substantial impact on the continent’s connectivity.

In its strategic bid to reduce end-consumer costs, Meta has made tactical investments in open access networks and backhaul in various markets, including the Democratic Republic of Congo, Uganda, South Africa, and Nigeria. These investments permit any operator to connect and render services, stimulating competition and thereby driving down the final expenses for consumers.

Meta has also emphasised creating and promoting cost-effective services and attracting users. The focus has particularly been on small-to-micro businesses prevalent in regions such as Africa, the Middle East, and Turkey, thereby furthering SDG 8: Decent Work and Economic Growth. Furthermore, the company is dedicated to ensuring that the services are offered in local languages to maximise outreach and usage.

Beyond mere network access, last-mile delivery has also been a focus of Meta’s endeavours. As revealed by a recent UN Broadband Commission report, at least 95% of the world’s population can now access a broadband network. To further bridge this gap, Meta has been stimulating investment, particularly into last-mile networks.

In the realm of policy and regulation, Meta has been influential, fostering predictability and better cooperation with governments, even if certain policy directives do not strictly align with private sector preferences.

With the emergence of technological opportunities such as the metaverse and artificial intelligence (AI), Meta has advocated creating space for innovation. Believing that technological advancement will assist in achieving Sustainable Development Goals (SDGs), Meta continues to champion innovations.

Finally, Meta underscores the importance of inclusivity in the moulding of digital policies. Marginalised groups particularly concerning gender equality, youth, and persons with disabilities must be given due consideration, ensuring no one is left behind in the digital revolution and progress towards SDG 5: Gender Equality and SDG 10: Reduced Inequalities.

In conclusion, Meta’s comprehensive approach positions it as an influential player in Africa’s evolving digital landscape, contributing effectively towards SDGs through its investments, projects, and favourable policies.

Maki Takahashi

Broadband connectivity is perceived as universally crucial, and the role of the Japanese government in incentivising investment in this sector is pivotal. Despite the hurdles associated with sparking investment in remote areas, the government’s targeted strategy and well-defined goals have galvanised the pursuit of nationwide connectivity. The Ministry of Internal Affairs and Communications (MIC) has formulated the National Broadband Connectivity Plan, a resolute approach aimed to achieve an outstanding 99.9% coverage of fixed broadband and 95% reach of 5G by the end of fiscal year 2025. Impressively, this coverage objective includes regions where erecting land broadband infrastructure is complex due to geographical and other risk factors.

By launching a subsidy scheme, the Japanese government has created an environment that encourages investment in connectivity. Consequently, key players like carriers and local governments have shown increased commitment and made significant strides towards closing the connectivity gap, particularly in rural areas. Additionally, a landmark amendment to the country’s telecommunication business law, introducing a universal service scheme for broadband, ensures rural broadband providers receive necessary support to maintain their infrastructure and deliver quality services.

Competition policy and spectrum allocation processes have also played substantial roles in stimulating and regulating investment in the connectivity domain. Japan, in particular, has implemented an asymmetric regulation strategy towards carriers with higher shares, fostering competition amongst carriers and encouraging ongoing investment in network enhancements.

Furthermore, Japan’s legal framework is evolving to accommodate recent technological developments, such as virtual networks, veering away from the current regulation model predominantly based on physical networks. In line with this shift, discussions around the use-cases of 5G technology, where the MIC earmarked areas like self-driving and drone usage, have gained importance.

Lastly, a characteristic of Japan’s innovative policy approach is the implementation of the universal service system. Under this scheme, both fixed and mobile broadband providers must contribute an amount based on the number of lines they operate. This fund is subsequently re-allocated to fixed broadband providers that invest in and maintain infrastructure in rural areas, ensuring even these areas have access to robust infrastructure.

In conclusion, Japan’s multi-faceted approach towards broadband connectivity, incorporating strategic policy formulation, targeted regulatory amendments, financial incentives, and proactive support for technological development, has charted a promising course in achieving nationwide connectivity. The country’s successes in this domain offer invaluable lessons for other nations facing similar challenges.

Alejandro Solano Diaz

ConnectFiber, a wholly privately-owned venture of global investment firm KKR and multinational telecoms giant Telefonica, is spearheading significant investments to augment network coverage and support systems across Colombia and Chile, with plans to expand into Peru shortly. Their commitment, projected to total approximately $240 million by the end of 2023, mirrors similar funding levels deployed by their counterparts in Chile.

Amidst a surging digital transformation across Latin America, ConnectFiber endeavours to bridge the digital divide in these nations by fostering the development of fibre-to-the-home (FTTH) infrastructure. Renowned as Colombia’s largest neutral fibre optic network, ConnectFiber is bolstering connectivity through their substantial investment in fibre optics. This is evidenced by the recent network expansion in Colombia, which saw a striking 175% growth measured by the number of households covered as of January 2022.

Underpinning ConnectFiber’s strategy is the pivotal role of open access networks in bolstering the viability of FTTH, and fostering a fertile market environment for free competition within the telecoms sector. The rise of open access networks proves crucial in overcoming challenges posed by the digital divide, lack of competition, and infrastructure deficiency, thereby facilitating fast and reliable internet access for individuals and businesses alike.

In addition, promoting and encouraging the proliferation of fibre-optic providers is found to be indispensable. Such providers offer multiple benefits, including enhanced connectivity, competition stimulation, innovation, development and significant socio-economic impacts. Notably, free and neutral networks contribute to operational efficiency by eliminating the need for deployment by multiple networks from various service providers, allowing service providers to focus resources on delivering superior customer service.

Regulatory bodies must also play their part, particularly in recognising the transformative potential of FTTH neutral networks, which disrupt traditional paradigms in telecoms network deployment. This approach not only facilitates the use of existing infrastructure, thereby reducing costs and accelerating deployment, but also underscores the critical role that technology plays in extending connectivity.

Given the diverse demographics and topography within Latin America, understanding and leveraging a range of technologies to bolster connectivity is crucial. This is especially relevant in enhancing connectivity programmes throughout the region, where internet access could ignite economic growth and significantly benefit sectors such as education, health, government and transport. Consequently, strengthening connectivity in Latin America remains an urgent need in the face of the digital revolution underway.

Speakers