2.5.2 International bandwidth, gateway liberalization and national peering

Competition in international connectivity (i.e., sub-marine cables) and access to services such as international and Internet gateways, is key to lowering the cost of bandwidth and broadband prices for consumers. Effective interconnection and gateway regulatory frameworks that introduce new models of sharing and collocation, and reduce barriers to existing private, government and international networks is important in encouraging existing and new market entrants to expand into broadband and other services.

An example of the process to liberalize the international gateway and secure bandwidth capacity at lower prices is described in the Reference Document International Sharing: International gateway liberalization – Singapore’s experience. Singapore’s Infocomm Development Authority (IDA) required the dominant licence holder to provide a reference interconnection offer (RIO), mandated co-location at the submarine cable landing station, mandated connection services and regulated prices, and co-ordinated the submarine cable landing process, offering a one-stop-shop. In the past, sub-marine cable providers had to approach several different government entities.

India’s regulator, TRAI, has adopted a similar regulation.

With Pakistan’s 2004 broadband policy, national and regional peering among local Internet Service Providers (ISPs) is prominent.  This is to reduce the reliance on the still costly international IP backhaul. The policy goes even further by promoting the creation of a national Intranet to provide domestic IP services.  It is expected that this also spurs the creation of locally hosted content and services.