Increasing Broadband Internet Penetration

In the OIC Member Countries

Fixed wireline last mile distribution

This stage of the broadband value chain provides connectivity from the network to the

consumer, be it a PC installed in residence, a laptop, tablet or a smartphone being operated by

an individual. There are three types of technologies supporting last mile distribution: fixed

wireline, fixed wireless, and mobile wireless.

Three types of technologies support fixed wireline broadband access: digital subscriber line

(provisioned by a telecommunications company), cable modem (supplied by a cable TV

operator), and fiber optics (again operated by a telephone company). Telephone companies

provide broadband ADSL service by expanding the bandwidth available from already installed

copper wires used to provide the telephone service. With this service, telecommunications

companies can offer broadband service typically at transmission speeds of about 1.5 Mbps.

This performance is dependent upon the distance separating the residence from an operator

switching center

. The need for subscribers to be located no farther than 5 kilometers from a

switching center reduces the market size of potential subscribers, restricting it to geographies

with high population density.

ADSL service offers slow broadband service as compared to what cable television operators’

offer. Cable television operators can also retrofit their existing networks to provide broadband

service. By partitioning a television channel, cable operators can designate the frequencies

represented by this channel as available only for uploading and downloading data. Given that

the cable television network operates with amplifiers located throughout its network, cable

modem service can be offered anywhere the company offers video service. Additionally cable

modem service can operate at download speeds well in excess of what ADSL can provide.

Additionally, cable operators can further increase service speeds (to up to 120 Mbps) by

adding more bandwidth in 6 MHz increments, a process known as cable bonding. This

procedure is achieved through standards such as DOCSIS 3.0.

Finally, telecommunications companies can opt to migrate their access network to fiber optics,

providing service at vastly increased access speeds (in many cases reaching 200 Mbps). More

importantly, fiber optics represent a critical technology to accommodate future internet traffic

growth. The increase in traffic is driven first by an exponential growth in Internet access

devices. For example, while as of 2016, mobile broadband connections in the Middle East and

North Africa region represent 44% of the total, this number will reach 62% by 2020

Similarly, smartphone adoption is expected to increase from 39% to 65% within the same

timeframe. The growth in Internet access devices is compounded by an increase in traffic per

device. For example, the average Internet user in Saudi Arabia will generate 30.2 gigabytes of

Internet traffic per month in 2020, a compound annual growth rate of 18% from 13.4

gigabytes per month in 2015. As a result in this country alone, Internet traffic will grow 3.5

DSL subscribers located relatively close to a telecommunications company switching facility can receive somewhat higher

bit transmission speeds, but subscribers located more than 5 kilometers typically cannot receive any DSL service. Because

operators rely on unamplified copper wire as the medium for service, signals weaken as the distance increases between the

subscriber and the operator switching office.

GSMA (2016).

The mobile economy: Middle East and North Africa 2016

. London.