QUESTION 1(B)

BROADBAND TECHNOLOGY

DEFINITION OF BROADBAND

Broadband comes from the words "broad bandwidth" and is used to describe a high-capacity, two-way link between an end user and access network suppliers capable of supporting full-motion, interactive video applications. Bandwidth refers to how fast data flows through the path that it travels to your computer; it's usually measured in kilobits, megabits or gigabits per second. Broadband is a type of data transmission in which a single medium (wire) can carry several channels at once. Cable TV, for example, uses broadband transmission.

In general, broadband refers to telecommunication in which a wide band of frequencies is available to transmit information. Because a wide band of frequencies is available, information can be multiplexed and sent on many different frequencies or channels within the band concurrently, allowing more information to be transmitted in a given amount of time (much as more lanes on a highway allow more cars to travel on it at the same time). Related terms are wideband (a synonym), baseband (a one-channel band), and narrowband (sometimes meaning just wide enough to carry voice, or simply "not broadband," and sometimes meaning specifically between 50 cps and 64 Kpbs).

Various definers of broadband have assigned a minimum data rate to the term. Here are a few:

  • Newton's Telecom Dictionary: "...greater than a voice grade line of 3 KHz...some say [it should be at least] 20 KHz."
  • Jupiter Communications: at least 256 Kbps.
  • IBM Dictionary of Computing: A broadband channel is "6 MHz wide."

It is generally agreed that Digital Subscriber Line (DSL) and cable TV are broadband services in the downstream direction.

WHY BROADBAND?

Increased and improved use of communications infrastructure, and in particular the Internet, has been recognised both internationally and locally as vital for the efficient operation of society and a catalyst for growth and development. The Internet is a worldwide system of computer networks that allows people to access information on computers other than their own. Broadband is designed to provide high speed Internet access.

Broadband, or high-capacity Internet, is used to send or view large amounts of information, including live video and audio, via the Internet. This can bring people in different regions closer together -- from a doctor in Johannesburg and a patient in Pretoria to a grade three class in Durban and a science centre in Polekwane. While this would be next to impossible with Internet access over a regular dial-up phone line, broadband provides the support needed to view or participate in these opportunities.

Broadband is simply a better way to access the Internet and you don't have to re-connect each time, as you do with a dial-up connection.

WIDELY USED TYPES OF BROADBAND

  • Broadband at home

Broadband at home uses the phone line to your house without interfering with your telephone conversations.

It keeps your phone line free, so you can surf the Internet and talk on the phone at the same time. There's no need for a second line.

  • Mobile Broadband

Broadband out and about, which works the way a mobile phone does, for people on the move using a laptop.

It's always on - there's no wait to get online as there is no dialling up It's a whole new online experience - you can shop and bank online easily, buy music and games, email large attachments, watch music and film clips from your computer and much more

IMPLICATIONS OF BROADBAND ON ADVANCEMENT OF ICT INFRASTRUCTURE

Broadband is of strategic importance because of its ability to accelerate the contribution of information and communication technologies to economic growth in all sectors, to enhance social and cultural development, and to facilitate innovation. Widespread and affordable usage can contribute to productivity and growth through applications that promote efficiency in business processes, generate network effects and positive externalities, and increase access to markets with benefits for business, the public sector and consumers. Broadband networks provide an important platform for the development of knowledge based and globally competitive national, regional and local economies.

BROADBAND PRICING

The failure of some countries to keep pace with providing broadband services that provide faster connectionsat cheaper prices is the direct result of their failure to adopt a national broadband policy. Some countries like the United States have taken a deregulatory approach under the assumption that the market willbuild enough capacity to meet the demand. While these steps may have had some positive influence, they are not sufficient. The profit/loss statements of individualfirms fail to take into account the positive externalities from a widely deployedbroadband network, including economic growth, lower-cost health care, and higherqualityeducation. In contrast, most other nations treat broadband networks asnecessary infrastructure; their governments adopted explicit broadband stimulusplans at the turn of the century, and their countries are now reaping the benefits.Countries lagging behind need to take aggressive action to significantly expand theirbroadband connectivity.

Government funding together with matching funds from the private and/or public sectorshould be used to build open, big broadband networks to every home and business.While the initial investment is significant, the returns would be enormous. First, abig broadband network would be less expensive to operate than existing coppernetworks, resulting in actual significant cost savings per year. Moreimportant, the availability of broadband capability would generate enormouseconomic activity (both from building the network and from its use) that wouldlead to greater tax revenue and economic growth. Furthermore, fibre networks arescalable upwards to an almost unlimited capacity; the investment in building thesenetworks may provide adequate broadband connectivity for several decades. Finally,once the networks are built, the need for additional funding would end, and theprivate and/or public entity that receives the funding would own and operate thenetwork without the need for ongoing government subsidies.

A critically important component such programs is that the networks builtwith such funding must be open and accessible to all users and content andapplication providers. Thus, the entity chosen to build the network in each community would maintain both an open network forall lawful uses and affordable pricing, and may be required to make a portion of itscapacity available on a wholesale basis to competing retail service providers.

Such programs should include tax incentives tospur private sector broadband investment and should encourage public sectorinvestment by municipalities. Efforts should also be undertaken toensure that the public is made aware of the availability of these broadband services.Funding should also be provided to bolster governments' investment in long-termtelecommunications research.The benefits of broadband connectivity are felt directly by every consumer andbusiness, and final decisions must involve local leaders.

INITIATIVES TAKEN BY SOME GOVERNMENTS TO IMPROVE THEIR BROADBAND STATUS

The following discussion summarizes the successful steps taken by some governments to improve their broadband status:

1.Leadership and Goals: The executives of almost every successfulgovernment initiative began by announcing a broadband plan andsetting specific broadband goals.

South Korea, Japan, and Canada eachannounced their initiatives to promote broadband at the beginning of thisdecade. In fact, Japan has now launched the second generation of itsbroadband plan (replacing e-Japan with u-Japan). Recognizing that they wereabout to be left behind, France and the U.K. announced their ownbroadband strategies in 2002–2004. Perhaps recognizing the void at thefederal level, many U.S. governors have put together their own broadbandplans in the past two to four years. While the details of these plans oftendiffer, the common “success factor” is that they each put together abroadband plan with support from the highest levels of the government.

2.Public Funding: Almost every successful government program hasincluded significant government funding.

Other governments haverecognized that broadband is not a communications issue; it is aninfrastructure issue that generates public benefits to economic growth,health care, education, and so forth. These governments recognize thatbroadband should not be left to the market because the profit maximizingincentives of private industry do not reflect the overall public welfare.Canada, Japan, South Korea, the U.K., and Sweden are among the nationsthat have invested large amounts of public funds to build broadbandservices. State government funding has been provided or proposed byCalifornia, Georgia, Idaho, Kentucky, Maine, Michigan, Vermont, Virginia,and others.

3.Open Broadband Networks: One of the most popular models has been torequire that big broadband network providers provide service on awholesale basis to multiple retailers.

Most municipal broadband networks,such as UTOPIA and the Alberta SuperNet, operate on a wholesale basis andallow competitors to resell the network to consumers. Sweden has followedthis model in encouraging their municipalities to construct fibre networks.Similarly, British Telecom now provides wholesale access to its networkthrough a subsidiary called OpenReach. This model allows the networkowner to concentrate on building and running the network on a neutralbasis to multiple competing providers of retail service that market theirservices to the general public.

4.Public-Private Partnerships: Another consistently successful theme isgovernment-private sector cooperation in building broadband networks.

Very few, state governments, if any, express interest in building agovernment-owned broadband network. The plans of almost every stategovernor involve providing funding or incentives for the private sector toexpand their broadband networks. California, Kentucky, Maryland,Minnesota, North Carolina, and Virginia are among the states that haveadopted programs to stimulate greater private sector investment byestablishing a government-industry task force, non-profit entity, or otherorganization. Several countries have also operated in a similar fashion,including Japan, the U.K., and Canada.

5.Unbundling: The policy of unbundling local copper networks has beenused successfully to stimulate broadband, although the application ofunbundling to fibre facilities is still under consideration.

France and theU.K. have had great success in unbundling the local loop as a means tojump-start their broadband adoption, allowing them to jump to the top ofthe G7 in broadband adoption in just a few years. The European Union hastaken an active role in enforcing unbundling regimes on some countries thatwere initially reluctant. European countries are now debating whether theunbundling regime should be applied to fibre facilities as well. Japan doesrequire NTT to unbundle its fibre facilities.

6.Fibre: Except for Japan and South Korea, which are well ahead of therest of the world in deploying fibre, municipalities are taking the leadon fibre deployment.

The EC, the U.K., and France have yet to announce a fibre deployment plan, although it is under active consideration. In themeantime, several European cities (including Paris and Vienna) are jumpingon the fibre bandwagon. Sweden has had a municipal fibre deploymentstrategy from the beginning. Many U.S. cities have built or are building fibre networks, often funding the build-out by selling municipal bonds. Severalstudies document the economic benefits to those cities that have deployedtheir own fibre networks.

7.States Focus on Low-Speed Broadband: Most of the state governmentinitiatives have focused on expanding low-speed broadband services tounserved areas, not big broadband.

Almost every state has some amount ofrural and high-cost areas that have not been served by the private sector. Thestates’ governors express understandable concern that rural Americansshould not be left behind and should have access to basic broadbandconnectivity. Unfortunately, the majority of state programs do not addressthe need to promote big broadband capability that will be necessary in thenext few years. While these state initiatives are certainly well-intentioned,the question is whether the low-speed services used to fill the gaps today willbecome the dial-up of the future. Most states’ programs are largely designedto expand the reach of DSL and cellular service into rural areas. Thereremains a need for the federal government to address the need for bigbroadband.

BROADBAND’SOCIAL AND ECONOMIC BENEFITS

Broadband technologies are not only changing the way people do business, think and learn…they’re actually changing lives.

There are mutually reinforcing benefits between social and economic impacts from broadband. From a social services perspective, more and more government services, such as health, education, and governance, are being provided online. If all citizens have rights to equal access to government services, then it is important to understand where market forces cannot be relied upon to provide affordable access to broadband services. In such cases there is not just an economic argument for government intervention, but also a social equity argument. The following chart illustrates, at a high level, the economic and social relationships associated with affordable broadband.

A variety of applications and services, when taken together, will demand muchgreater broadband capability than is possible with small broadband:

VIDEO:

The largest consumer demand for bandwidth will likely come from video.Today, each high-definition television (HDTV) signal over the Internet generallyrequires a minimum of 20 Mbps (depending on the type of programming). Whilecompression technologies are being developed to reduce the bandwidth required for

today’s HDTV signals, it is also expected that HDTV transmissions will continue toevolve upward, enhancing the quality and expanding the bandwidth necessary totransmit these “super-HD” signals. Furthermore, most households have threetelevisions and even more computers in the home, each of which will require itsown high-definition transmission sharing the same pipe.

HD video signals will not be restricted to broadcast television or cable signals; asHDTV production equipment becomes more widely dispersed, even educationallectures, videoconferencing and TeleHealth applications will transition to HD videousage, requiring that homes have significantly larger broadband access even if theydo not watch television. Furthermore, if broadband capacity is available on asymmetrical basis (allowing the same upload and download capacity), everyone canbecome a video producer from the home: your family web page can contain full-screenhigh-definition family movies; today’s bloggers can host tomorrow’s versionof Crossfire; or a next-generation Jon Stewart can get his start from his familybasement.

In addition, the demand to download video content (a movie or a TV show) in areasonable amount of time requires significant bandwidth. The content of a DVD(about 5 gigabytes) takes two hours to download even with today’s broadband (dialupcould take days). A high-definition video disc would take four to five times thatlong. But with a gigabit connection, a DVD coulddownload in less than a minute.Only when consumers have access to that kind of bandwidth will ultimate on-demandtelevision and movie-watching be possible: anything you want to watch atany time you want to watch it.

TELEWORK:

Home-based businesses can achieve much greater efficiencies from bigbroadband capabilities. Video editing, game development and serving,engineering/drafting, scientific sample analysis, software development, and othertypes of independent content creation can be done remotely with a big broadbandnetwork, but not with small broadband. According to one source, the availability of fibre networks has quadrupled the amount of time employees spend working fromhome. TELEWORK eliminates the inefficiency of commuting to an office, improvestraffic congestion, reduces highway construction, improves the quality of our airand environment, and reduces our dependence on foreign oil.

TELEHEALTH:

Remote radiology, which requires the transmission of extremelydetailed pictures with huge amounts of information, can only be done through bigbroadband networks. Where today many patients can communicate with theirphysicians by e-mail, tomorrow they will be able to have video consultations.Patients with serious medical conditions can be “wired” with sensors and monitorsthat continuously transmit data to care givers, family, or emergency personnel.While not in itself requiring a large amount of bandwidth, remote medicalmonitoring must be provided over a secure and uninterruptible channel for which asmall broadband network susceptible to overload may not be suitable. A generationof baby boomers may be able to delay the move to a nursing home due to dailyvideo contact, from home, with a network of family, friends, neighbours, and medicalcaregivers.

EDUCATION:

Distance learning is perhaps the most obvious, but not the only,educational use of bigger bandwidth. Because over two-thirds of today’s studentslive off campus today, the need for big broadband is important to ensure that off-campusstudents receive the same quality of education as on-campus students.Furthermore, many state colleges, especially those in rural states, have extensivedistance learning programs to serve students all across the state. Many communitycolleges need big broadband to provide their students with the same quality ofinstruction as larger institutions. There are not enough teachers in enough places tomeet the need; while it is not physically possible to provide a teacher of advancedcalculus to every community, a high-speed network can extend the boundaries ofthe classroom anywhere.

College education is no longer confined to sitting in a classroom and taking notes.Increasingly, the educational process involves Internet-based research, onlinecollaboration with fellow students, videoconferences with professors andgovernment officials in other states and countries, real-time video exploration of thegalaxies or undersea expeditions. Education and gaming technologies are already beginning to merge into learning basedsimulations that will demand enormous bandwidth as they approachsuper-realistic “virtual reality.”

SOCIAL NETWORKING:

Internet-based social networking has quickly become a principalmeans of communication, especially for young people. Increasingly popular as ameans of posting, viewing, and sending video information, the sudden popularity ofthese sites is likely to demand greater bandwidth as the services grow in popularityand use, and as high-definition video becomes routine.