Regulation of broadband services will enable the public to access affordable Internet services, according to the latest report by the International Telecommunication Union (ITU).
Regulation of broadband services will enable the public to access affordable Internet services, according to the latest report by the International Telecommunication Union (ITU).The 2012 edition of ITU’s flagship regulatory report, ‘Trends in Telecommunication Reform’, calls for effective national policies to counter emerging legal complexities in the sector that has emerged as a key driver for development."A solid national regulatory framework is vital in speeding up broadband roll-out and stimulating the development of new digital goods and services,” reads the report.It further offers guidance to policymakers and regulators in creating a digital environment conducive to growth, both to the ICT sector and the broader economy.The report shows that affordability of broadband services still remains a major obstacle, particularly in Africa, where fixed broadband access costs on average three times monthly per capita income. "Over the past five years, fixed broadband subscriptions have more than doubled to reach an estimated 591 million in early 2012 – yet a huge divide remains between the developed and developing worlds,” says the report.Fixed broadband penetration of 26 percent in industrialised countries contrasts dramatically with penetration of just 4.8 percent in developing nations.Reacting to the report, Patrick Nyirishema, the Head of ICT at Rwanda Development Board, said that indeed the affordability of broadband services in developing nations is still a challenge."In Rwanda, getting access to affordable broadband services is a still a challenge, but in future, it won’t be due to government’s intervention to enable the citizens’ access to affordable internet,” he told The New Times yesterday.Citing an example, Nyirishema said the government signed, in April, a ten-year $6.7 million contract with Tanzania Telecommunications Company Ltd to provide 1,244 giga bytes per second of internet speed that will help Rwanda cushion the current shortage of access to low-cost international connectivity."The government has decided to purchase the international internet bandwidth in bulk at a better price than on the market and re-sell it to various operators and service providers at a cheaper price so it reaches consumers at an affordable price,” he explained.The ITU figures indicate that the number of active social media users has now surpassed one billion, many of whom connect using their mobile devices.Statistics indicate that that only an estimated 8.5percent of the population in developing countries had access to mobile broadband services in 2011, with nearly half of all broadband-enabled phones used in a handful of high-income countries, and low-income countries accounting for just 5percent of global use."In order for all citizens to benefit from the economic growth driven by broadband, huge and sustained investments in networks are needed,” said ITU Secretary General, Hamadoun Touré, in a statement. "Ensuring investment and innovation without stifling competition is the key challenge today’s ICT regulators face”.