I. Reform and Access
1. Continue the current shift in Bank Group support toward broadband and Internet access while incorporating lessons from experience.
- In regulatory reform, the World Bank ought to:
(i) Maintain the focus on competition combined with promoting stability and predictability of the regulatory environment.
(ii) Update its advice and technical assistance related to enabling policy makers and regulators to deal with next-generation policy and regulatory issues, new business models, and convergence of technologies.abc
- Going forward, the Bank Group should retain a role in ICT, but with important shifts in priorities. First, progress in reforms suggests a role for the Bank in this area related to (i) updating the regulatory frameworks to support broadband and Internet access and (ii) preserving competition in the face of consolidation and convergence in the sector.
- Operating in increasingly saturated markets with lower margins and potentially higher risk to business performance will require selectivity for telecommunications projects and increased scrutiny of clients' business models and investment strategies. IFC 's focus may shift from voice telephony to supporting private investment in higher-speed broadband infrastructure to enable access to data and commercial uses of the internet. Market trends, such as convergence of technologies and consolidation of market players in the ICT sector, may open new opportunities for IFC assistance.
- Overall, the evidence points to an effective Bank Group contribution to reforms in the sector. Reforms have progressed rapidly, and this has facilitated innovation, entry, and growth in penetration rates.
- In countries where the World Bank or IFC supported the ICT sector through regulatory reform or fostering investments the speed of mobile telephone penetration was greater than in countries without support, controlling for other factors .
- Countries with World Bank support for ICT institutional and sector reforms and IFC investments have increased competition faster than those countries without World Bank Group support.
- Over the past decade, developing countries have made strides in reforming their ICT sectors, but the reform agenda is not yet complete. Substantial gains could be achieved by countries that have lagged behind in reforming their ICT sectors.
- As technologies and markets continue to evolve rapidly, policy makers and regulators in developing countries face new sets of issues.
- Effective competition and early adoption of a focus on a mass market, low-price business model have emerged as factors in successfully providing access to wider segments of the population, increasingly including low-income households and the poor.
Original Response: Management agrees with the recommendation, which is at the core of the upcoming Sector Strategy. The Bank Group has been responsive to growing demand to provide technical assistance on next-generation reforms and to increase policy advice on broadband. The Bank Group has also been responsive by providing catalytic public-private partnership investments to accelerate the rollout of regional and national backbone infrastructure. Support to such public-private partnerships is growing rapidly. Between fiscal years 2007 and 2011, public-private partnerships for regional and national backbone infrastructure have been supported in 19 countries with another 11 planned in fiscal year 2012. Going forward, the Bank will (a) further define its broadband engagement areas, based on the forthcoming Broadband Toolkit (b) explore external funds for a technical assistance facility to provide rapid response to client countries on policy and regulatory issues, in particular in the areas of broadband and competition (c) draw lessons from ongoing public-private partnership initiatives to inform future project design and implementation and (d) provide policy direction on promoting access to the underserved and the poor, building on lessons from experience with targeted interventions.
Develop knowledge and expertise in emerging areas of broadband and telecom policy to assist client countries
Indicator: Number of analytical products produced
Baseline: 5 (produced in recent fiscal years)
Target: 7
Timeline: FY14
Status: The following 5 analytical products on broadband and telecom policy are completed:
⢠Broadband for Africa: Developing Backbone Communication Networks
⢠Building Broadband: Strategies and Policies for the Developing World
⢠Information and Communication for Development Report 2012
⢠Broadband toolkit (3 modules): www.broadband-toolkit.org
⢠Broadband Strategies Handbook
IEG acknowledges the continuous efforts of developing knowledge in emerging areas of broadband and telecom policy to assist client countries. IEG took note that 9 pieces of analytical products had been produced as the background papers of WDR 2016. IEG would require the management updates to indicate the audiences, the intended utilization and the expected effects of those knowledge products. It would also be helpful if the Management could report the uptakes of the knowledge products produced in previous years.
During FY16, the World Bank published World Development Report (WDR) 2016, Digital Dividends, highlighting the opportunity of ICT in development.
In preparation of WDR 2016, the ICT sector unit of the World Bank additionally published 9 background papers on the following topics:
- The new cybersecurity agenda: economic and social challenges to a secure internet
- Multistakeholder internet governance?
- The economics and policy implications of infrastructure mutualisation in Africa
- Guatemala, an early spectrum management reformer
- Network neutrality and private sector investment
- ICT sector innovation: a case study of Israel
- How tech hubs are helping to drive economic growth in Africa
- One network area in East Africa
- Exploring the relationship between broadband and economic growth
IEG acknowledges the continuous efforts of developing knowledge in emerging areas of broadband and telecom policy to assist client countries. IEG took note that seven pieces of analytical products had been produced. The management updates indicated the context and the intended utilization of the knowledge product. It would be more useful, to both IEG and the external audience, if Management indicated what effect these analytical products, especially the Guinea Bissau ICT Sector Strategy note, the ECOWAS Digital Economy and Mali Telecom Sector Assessment, are expected to have on the client countries. It would also be helpful if the Management could report the uptakes of those knowledge products produced in previous years.
In FY15, we produced:
- WDR16 Report on Digital Dividences, along with six background papers to WDR (to be finalized during the first part of FY16).
- Guinea Bissau ICT Sector Strategy note: This analytical work provides sector background for international connectivity options.
- ECOWAS Digital Economy: This analytical work serves as a catalyst for ECOWAS to leverage new broadband Internet in the region.
- Mali Telecom Sector Assessment: The report comprises of 10 key reforms to accelerate the development process in Mali by increased ICT use.
Additional Information from Management:
The World Bank has produced analytical work products on broadband and telecommunications policy, and has exceeded the targets previously set under MAR for FY14.
During FY13-FY15, the World Bank has produced 11 analytical products dealing with broadband and telecommunications policy in developing countries:
- Broadband Strategies Toolkit (www.broadbandtoolkit.org): An online toolkit for use by governments and stakeholders in developing countries for roll out of broadband.
- Little Data Book on ICT (available in online form here): This yearly publication provides statistics and trends of the information and communication technology (ICT) sector globally. A recent publication was produced in FY15.
- Locational Data from Mobiles (available in online form here): The publication looks at the capability of mobile phones to track locational data for use in development projects.
- Broadband Networks in the Middle East and North Africa (available in online form here): This major publication looks at the state of broadband in the MENA region, and the prospects for using alternative infrastructures.
- Broadband Competitiveness in Southern Africa: The publication covers the development of broadband in Botswana, Mauritius and South Africa.
- Guidebook on Open Innovation for Cities: The publication discusses the use of broadband in form of open innovation within city and urban environment.
- Background Papers for WDR 2016: In preparation of WDR 2016, six background papers have been prepared on topics of: (a) accelerating growth by helping businesses connect and compete (b) expanding opportunities by making the internet work for everyone (c) delivering services by connecting for a capable and accountable government (d) enabling digital development (e) making the internet universal, affordable, open, and safe and (f) implementing development in a networked world
- ICT Sector Strategy Note for Guinea Bissau: The analytical work was prepared to provide sector background for international connectivity options in Guinea Bissau.
- Digital Economy in ECOWAS: The analytical work serves as a catalyst for ECOWAS to leverage new broadband internet in the sub-region.
- Telecom Sector Assessment of Mali: The analytical report presents ten key reforms to accelerate development in Mali by increased use of ICT.
During FY15-FY16, the World Bank has embarked on World Bank Development Report 2016 on the topic of Digital Dividends. The WDR 2016 focuses on the use of ICT for economic and social development. During FY15, the Development Economic (DEC) and the Transport and ICT Global Practice (T&I GP) have worked together on 6 background papers for preparation of WDR 2016. The World Bank will report further on WDR 2016 as part of the FY16 update of MAR to IEG.
Based on the above, we propose a rating of High for exceeding proposed targets.
IEG acknowledges that a series of activities have been undertaken by the Bankâs ICT practice to develop knowledge and expertise in areas related to broadband, including âBroadband strategies toolkitâ, âLittle Data book on ICTâ, âGuidebook on Open Innovation for Citiesâ, and a number of analytical work that have been completed and made public. However, the management update is highly output-focused, and does not provide an assessment of the outcomes linked to IEG recommendations. IEG therefore seeks for more explanation on (i) how and to what extent these activities and products have translated into or influenced the client countries in maintaining the focus on competition combined with promoting stability and predictability of the regulatory environment and (ii) how the Bank has updated its advice and technical assistance related to enabling policy makers and regulators to deal with next-generation policy and regulatory issues, new business models, and convergence of technologies.
11 analytical products have been produced since FY13 (5 in FY13 and 6 in FY14).
⢠Broadband Strategies Toolkit (www.broadbandtoolkit.org): The remaining modules were finalized and the website was updated.
⢠Locational Data from Mobiles: This analytical piece, looking at how the capability of mobile phones to tracking locational data can be used in development projects, was completed and published.
⢠Little Data Book on ICT: The 2013 edition of the LDB was completed and published, jointly with ITU
⢠Broadband Networks in MENA: A major analytical report looking at the state of Broadband in the MENA region, and the prospects for using alternative infrastructures, was completed and published, with a launch in several countries.
⢠Broadband competitiveness in Southern Africa: This report, covering Botswana, Mauritius and South Africa, was completed and published during the year
⢠ICT Sector Support in South Sudan: This PPIAF funded technical assistance project was completed with a number of short analytical pieces published, including a sector background document, a report on connectivity options, and a review of license fees in the EA region.
⢠Guidebook on Open Innovation for Cities: Research was completed and report published.
(2013 Rating: Medium)
(Response from 2013. First MAR follow-up will be in 2014)
IEG acknowledges the World Bank's efforts in developing knowledge and expertise in areas related to broadband, in particular with the completion of eTransform Africa report and the preparation of new modules to strengthen the broadband strategies toolkit. However, IEG seeks for more evidence in the World Bank's implementation of IEG's recommendations to (i) maintain the focus on competition combined with promoting stability and predictability of the regulatory environment, and (ii) update its advice and technical assistance related to enabling policy makers and regulators to deal with (broader, beyond broadband) next-generation policy and regulatory issues, new business models, and convergence of technologies. Management may wish to clarify whether the baseline and target indicators for analytical products delivered are annual or cumulative.
(2013 Rating: Medium)
(Response from 2013. First MAR follow-up will be in 2014)
WB Action A
Status:
- During FY13, four new modules of the Broadband Strategies Toolkit were produced. They deal with: (a) Broadband legislation and regulation (b) Universal service for broadband (c) Broadband technologies and (d) User demand and applications for broadband.
- eTransform Africa report was also completed covering demand side topics for broadband and ICT.
Baseline: 5 (produced in recent fiscal years)
Target: 7
Timeline: FY14