There is a growing perception that broadband is vital to economic prosperity, and governments are increasingly making it a policy issue. But which governments are making the greatest effort? The Economist Intelligence Unit's gBBI (government broadband index) is the first-ever broadband index to assess countries on the basis of government planning, as opposed to current broadband capability. This is the executive summary. To purchase the report in its entirety, please visit: http://www.store.eiu.com/product/1757765960.html?ref=featuredProductHome

1. Full speed ahead
The government broadband index Q1 2011
Abridged Executive Summary
www.eiu.com

2. Full speed ahead
The government broadband index Q1 2011
Executive summary
T he growing perception that broadband is vital to economic prosperity has seen it
become a crucial policy issue for governments worldwide. Although the private
sector has usually led the rollout of basic broadband networks in the more densely
populated parts of developed countries, commercial operators have seen little
incentive to make costly investments in rural areas. Often, it is the resulting ‘digital
divide’ that has motivated the public sector to become involved in the broadband
market, typically announcing targets of making 1–5Mbps services universally
available. Yet governments are also keen to facilitate greater rollout of so-called
next-generation networks (NGNs) that can provide broadband speeds of between
40Mbps and 100Mbps, and sometimes higher.
Such influences have spawned a variety of government approaches to broadband
development, from heavy state control and direct funding of networks to extremely
limited intervention through regulatory measures. But in all cases, the role of
the government is a critical driver of broadband activity. The arrow graphic below
provides some contrasting examples of initiatives announced in different parts of the
world.
Beyond these initiatives, governments in developing countries are also becoming
involved in broadband, although many are initially focused on addressing regulation
and market competition, along with backbone infrastructure and international
capacity issues, before producing detailed targets or plans for ultra-fast broadband
coverage. In addition, wireless networks are playing an increasingly important role in
countries where basic fixed-line infrastructure is poor or simply not available.
1 © The Economist Intelligence Unit Limited 2011

3. Full speed ahead
The government broadband index Q1 2011
Strong government intervention
Government control: Australia
Australian authorities have taken control of the national incumbent's existing fixed
network and plan to fund, develop and operate a national fibre-to-the-home (FTTH)
network, providing wholesale services on an open-access basis. The cost to the taxpayer
is expected to be around A$27bn (US$21bn, at 2009 exchange rates).
Government stimulus: China
The government is providing a US$22bn stimulus package for broadband development, while
trying to attract private investment in fibre-based broadband networks. The stimulus will be
made available over the next three years to local operators and manufacturers through both
direct funding and tax incentives.
Government partnership: France
In areas of France where rollout is not commercially viable, the government plans to
direct €2bn (US$2.8bn) into public-private partnerships to assist with the rollout of
shared and open-access networks promoting maximum competition at both network
and retail service levels.
Government facilitation: Switzerland
In the Swiss market, the government conducts regular roundtable meetings with
all key industry players to ensure that regulation and investment conditions are
conducive to NGN development by commercial operators, municipalities and utilities.
Limited government intervention
2 © The Economist Intelligence Unit Limited 2011

4. Full speed ahead
The government broadband index Q1 2011
Quantitative findings
T he bubble chart below compares a small selection of countries with clearly defined
goals (a complete version is available in the full report), showing target speeds
and coverage goals against public-funding commitments per household covered.
Speed, coverage and public-funding comparison
(per covered household)
10,000
South Korea
1,000
USA
Speed target (Mbps)
Australia
100
UK
10
1
Brazil
0
0 20 40 60 80 100
Coverage target (% households covered)
Note. Bubble size is determined by the level of the public-funding commitment.
Source: Economist Intelligence Unit.
South-east Asia leads
Overall, the developed South-east Asian countries (Japan, South Korea and
Singapore) are at the forefront of the move towards near-ubiquitous high-speed
broadband. All three countries have official targets of providing 1Gbps services to
more than 90% of households within the next two to five years. Singapore, however,
has been more reliant on government intervention and funding than either Japan or
South Korea, both of which have focused on encouraging private-sector companies to
roll out networks.
© The Economist Intelligence Unit Limited 2011

5. Full speed ahead
The government broadband index Q1 2011
Europe’s ambitions vary
Largely under European Union guidelines, governments throughout Europe
are mainly relying on competitive market forces in commercial areas, directing
government funding towards regional and rural areas the private sector would
struggle to serve profitably. As a result, target speeds generally range from 20Mbps
to 50Mbps for between 75% and 90% of households, while government-funding
commitments are relatively low. Many European countries are also looking to local
municipalities and utilities for the development of broadband infrastructure.
Other countries show increased levels of intervention
In other countries, a higher level of public funding per household covered generally
corresponds to greater government intervention. This is the case in Australia,
Malaysia, New Zealand and Greece, where governments have taken ownership or
control of the development of a national NGN network to varying degrees. In North
America, the focus is largely on reducing the digital divide, with both Canada and the
US funding network rollout in rural and regional areas.
4 © The Economist Intelligence Unit Limited 2011

6. Full speed ahead
The government broadband index Q1 2011
The government broadband index (gBBi)
The Economist Intelligence Unit’s gBBI (government and regulatory provisions in order to produce
broadband index) is the first-ever broadband index the final score.
to assess countries on the basis of government Countries topping our index are the ones deemed
planning, as opposed to current broadband to have the most ambitious speed, coverage and
capability. rollout targets, the most appropriate regulations
Using a methodology developed in-house, the for realising targets and fostering a competitive
index scores countries that have clearly stated broadband market, and where public-funding
objectives on a scale of 0-5, where 5 is the best. commitments are putting the least amount of
The methodology considers each plan’s target pressure on public-sector finances.
speed, universal speed, rollout timeframe, cost
Country Rank Score
South Korea 1 4.4
Japan 2 4.
Singapore 4.2
Sweden 4= 4.1
Finland 4= 4.1
Estonia 5 4.0
France 6 .9
Spain 7 .7
Denmark 8 .6
Australia 9 .4
New Zealand 10= .0
USA 10= .0
Italy 11 2.9
UK 12 2.7
Germany 1 2.6
Greece 14 2.4
The Full Report
Full speed ahead : The government broadband index Q1 2011 is available to purchase at
www.store.eiu.com
5 © The Economist Intelligence Unit Limited 2011

7. While every effort has been taken to verify the accuracy
of this information, The Economist Intelligence Unit
Ltd. cannot accept any responsibility or liability for
reliance by any person on this report or any of the
information, opinions or conclusions set out in this
report.
Cover image - © Photosani/Shutterstock

8. LONDON
26 Red Lion Square
London
WC1R 4HQ
United Kingdom
Tel: (44.20) 7576 8000
Fax: (44.20) 7576 8500
E-mail: london@eiu.com
NEW YORK
750 Third Avenue
5th Floor
New York, NY 10017
United States
Tel: (1.212) 554 0600
Fax: (1.212) 586 1181/2
E-mail: newyork@eiu.com
HONG KONG
6001, Central Plaza
18 Harbour Road
Wanchai
Hong Kong
Tel: (852) 2585 3888
Fax: (852) 2802 7638
E-mail: hongkong@eiu.com
GENEVA
Boulevard des Tranchées 16
1206 Geneva
Switzerland
Tel: (41) 22 566 2470
Fax: (41) 22 346 93 47
E-mail: geneva@eiu.com