Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable

The United Nations Broadband Commission has committed the international community to accelerate universal broadband, but the cost of meeting these objectives in the context of rapid technological change are not well understood. Using scenario analysis, this paper compares the global cost-effect...

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Main Authors: Oughton, Edward J., Comini, Niccolo, Foster, Vivien, Hall, Jim W.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/658521614715617195/Policy-Choices-Can-Help-Keep-4G-and-5G-Universal-Broadband-Affordable
http://hdl.handle.net/10986/35212
id okr-10986-35212
recordtype oai_dc
spelling okr-10986-352122022-09-20T00:09:27Z Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable Oughton, Edward J. Comini, Niccolo Foster, Vivien Hall, Jim W. TELECOMMUNICATIONS BROADBAND UNIVERSAL BROADBAND DIGITAL DIVIDE 5G TECHNOLOGY TELECOMMUNICATIONS POLICY The United Nations Broadband Commission has committed the international community to accelerate universal broadband, but the cost of meeting these objectives in the context of rapid technological change are not well understood. Using scenario analysis, this paper compares the global cost-effectiveness of different infrastructure strategies for the developing world to achieve universal 4G or 5G mobile broadband. Utilizing remote sensing and demand forecasting, least-cost network designs are developed for eight representative low- and middle-income countries (Malawi, Uganda, Kenya, Senegal, Pakistan, Albania, Peru, and Mexico), which provide the basis for aggregation to the global level. The cost of meeting UN Broadband Commission targets across the developing world is estimated at $1.6-1.7 trillion over the next decade, approximately 0.5-0.6% of annual gross domestic product for the developing world over the next decade. However, by creating a favorable regulatory environment, governments can bring down these costs by as much as three-quarters – to US$0.5 trillion (around 0.15 percent of annual gross domestic product) – and largely avoid the need for public subsidies. While 4G technology remains somewhat more cost-effective at the global scale, 5G NSA can sometimes prove less costly at the national level, particularly for countries with relatively low existing coverage of 4G technologies, and a tendency to be capacity-constrained in terms of demand. Providing that governments make judicious choices, adopting fiscal and regulatory regimes that are conducive to lowering costs, universal broadband may be within reach of most developing countries over the next decade. 2021-03-04T14:51:13Z 2021-03-04T14:51:13Z 2021-03 Working Paper http://documents.worldbank.org/curated/en/658521614715617195/Policy-Choices-Can-Help-Keep-4G-and-5G-Universal-Broadband-Affordable http://hdl.handle.net/10986/35212 English Policy Research Working Paper;No. 9563 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Africa Eastern and Southern (AFE) Africa Western and Central (AFW) Europe and Central Asia Latin America & Caribbean South Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic TELECOMMUNICATIONS
BROADBAND
UNIVERSAL BROADBAND
DIGITAL DIVIDE
5G TECHNOLOGY
TELECOMMUNICATIONS POLICY
spellingShingle TELECOMMUNICATIONS
BROADBAND
UNIVERSAL BROADBAND
DIGITAL DIVIDE
5G TECHNOLOGY
TELECOMMUNICATIONS POLICY
Oughton, Edward J.
Comini, Niccolo
Foster, Vivien
Hall, Jim W.
Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable
geographic_facet Africa
Africa Eastern and Southern (AFE)
Africa Western and Central (AFW)
Europe and Central Asia
Latin America & Caribbean
South Asia
relation Policy Research Working Paper;No. 9563
description The United Nations Broadband Commission has committed the international community to accelerate universal broadband, but the cost of meeting these objectives in the context of rapid technological change are not well understood. Using scenario analysis, this paper compares the global cost-effectiveness of different infrastructure strategies for the developing world to achieve universal 4G or 5G mobile broadband. Utilizing remote sensing and demand forecasting, least-cost network designs are developed for eight representative low- and middle-income countries (Malawi, Uganda, Kenya, Senegal, Pakistan, Albania, Peru, and Mexico), which provide the basis for aggregation to the global level. The cost of meeting UN Broadband Commission targets across the developing world is estimated at $1.6-1.7 trillion over the next decade, approximately 0.5-0.6% of annual gross domestic product for the developing world over the next decade. However, by creating a favorable regulatory environment, governments can bring down these costs by as much as three-quarters – to US$0.5 trillion (around 0.15 percent of annual gross domestic product) – and largely avoid the need for public subsidies. While 4G technology remains somewhat more cost-effective at the global scale, 5G NSA can sometimes prove less costly at the national level, particularly for countries with relatively low existing coverage of 4G technologies, and a tendency to be capacity-constrained in terms of demand. Providing that governments make judicious choices, adopting fiscal and regulatory regimes that are conducive to lowering costs, universal broadband may be within reach of most developing countries over the next decade.
format Working Paper
author Oughton, Edward J.
Comini, Niccolo
Foster, Vivien
Hall, Jim W.
author_facet Oughton, Edward J.
Comini, Niccolo
Foster, Vivien
Hall, Jim W.
author_sort Oughton, Edward J.
title Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable
title_short Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable
title_full Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable
title_fullStr Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable
title_full_unstemmed Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable
title_sort policy choices can help keep 4g and 5g universal broadband affordable
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/658521614715617195/Policy-Choices-Can-Help-Keep-4G-and-5G-Universal-Broadband-Affordable
http://hdl.handle.net/10986/35212
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