Page 12 - Trends in Telecommunication Reform 2016

Figure 1.1: Summary of investment trends

KEY

SHY STA GUS MIP
HIP PEB NBS PPPs
COM SIG QNB New and alternative investors
MET
APG Innovative investments
JBN
MEX

GUG NIC SEA

Abbreviations
MIP Mobile Infrastructure Project SIG SIGFOX
NBS National Boradband Scheme APG Facebook Asian-Pacific Gateway
NIC national ICT Backbone (NICTBB) SEA Seacom
JBN Johannesburg National Broadband Project SHY Shyp
MLi Metroweb HIP Hipcom
QNR Qatar NRN MEX meXBT
GUS Google US STA Star Citizen
GUG Google Uganda PEB Pebble
COM Community broadband

Source: Analysys Mason, 2015. Note figures are not abailable for MGTS
commercially reachable with more traditional involvement in attracting this form of investment.
network approaches. This chapter argues, however, that governments
and regulators still should be responsible for
The case studies cited in this chapter provide attracting inward investment and for stimulating
an interesting insight in investment trends, the demand for broadband services that will
particularly when the value of the investment drive investment in higher-layer services and
is plotted against the economic maturity of the connectivity. Any financial regulations being
region where the investment was made (see in considered in growth markets should safeguard
Figure 1.1). investors and consumers and enable innovation
without restricting business growth.
New market entrants and alternative investors
(technology innovators, not-for-profit investors
and financial institutions such as private-equity Chapter 2: Accelerating Broadband
or hedge funds) tend to make higher-value (and Deployment Through Network
therefore higher-risk) investments than do PPPs. Sharing and Co-investment
Moreover, investors are equally likely to invest in
both developed and developing markets.
Most governments have a policy objective to
increase the availability of affordable broadband
Innovative investments using crowdfunding, services. This often requires deploying new mobile
digital currencies, pensions and charities largely and fixed broadband networks, but these are
involve higher-layer services and developed expensive to build and entail high construction
markets. This is partly due to the maturity of the and demand risks. Accelerating broadband
Internet ecosystems in those developed markets, deployment, particularly outside the main urban
which foster technical innovation. Most of these areas, is challenging and requires innovative
investments have initially attracted low amounts solutions.
of funding – with the exception of crowdfunding –
and would therefore be unsuitable for investment This chapter examines the potential solutions
in significant broadband infrastructure projects. of network sharing and co-investment by
There is generally less government regulatory

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