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In 2011, the total number of OECD communication access paths was 2 066 million, or
166 subscriptions per 100 inhabitants. Mobile subscriptions represented 65.4% of paths,
versus 64% in 2009, and traditional fixed telephony subscriptions continue to decline.
Fibre broadband subscriptions grew at 16.61% year on year between 2009 and 2011. Greater
use of mobile broadband access has been stimulated by the popularity of smartphones.
The average subscription rate of mobile Internet access in OECD countries as a whole
rose to 56.6% in June 2012, up from just 23.1% in 2009.
Prices for fixed telephony and, more markedly, for mobile voice services decreased
from 2010 to 2012, showing significant declines across all consumption patterns, with
the exception of fixed business services.
A laptop‑based wireless broadband basket (offers within the 500 MB per month range)
cost USD 13.04 on average across the OECD in PPP terms, although it reached USD 30
in some countries. Average expenditure was USD 37.15 for a 10 GB basket. A 250 MB
tablet package cost USD 11.02 per month on average. A 5 GB basket for tablets cost
USD 24.74 on average, but varied from USD 7.98 (Finland) to USD 61.84 (New Zealand).
Previously distinct communication services are converging rapidly, while digitalisation
plus the rolling out of fixed and wireless infrastructures are expanding the bandwidth
available for all types of communication services. Examples from the Internet include
the quick uptake of the long‑term evolution (LTE or 4G) standard for mobile networks
based on Internet Protocol (IP)‑only architecture and using Voice over LTE (VoLTE)
as an application; and IP‑based Video‑on‑Demand and live‑streaming television services
by cable companies, satellite providers, public broadcasters, and cloud‑based and
other “over the top” (OTT) providers.
Telecommunication revenues experienced a notable decline in 2009 but stabilised in
2010 and rebounded in 2011. This can be attributed to the strength of mobile communication
markets and specifically to the rapid increase in smartphone penetration during this
period. By far the greatest traffic generated by smartphones or tablets is linked
to the use of Wi‑Fi associated fixed networks, rather than cellular networks. Fixed
networks have, in effect, become the backhaul for mobile and wireless devices with
some studies claiming that 80% of data used on mobile devices is received via Wi‑Fi
connections to fixed networks.
Revenues corresponding to data services are growing at double‑digit rates in most
OECD countries, and transport of data is now the major source of growth for network
operators. While there are significant opportunities in new services such as mobile
payments, essentially these involve the transport of data in association with partners
such as credit companies. Few expect growth in traditional services such as telephony
or SMS as measured by their share of revenue.
The key to the success of the mobile ecosystem has been the presence of sufficient
competition in the provision of network infrastructure and services. This competition
drove some operators to open and share their access to customers with far more success
than could have been achieved under the imposition of regulatory arrangements.
The Internet is still growing strongly, but relative growth has decreased compared
to previous periods in some categories, as might be expected given widespread adoption
of this technology. The Internet, together with analogue audio broadcasting, has become
the primary distribution method for audio content. The conversion to digital television
is almost completed in the OECD area. In many countries, broadcasters offer their
content either live or via catch‑up television over the Internet. Subscription video‑on‑demand
services are seeing rapid adoption.
Emerging issues
Policy makers and regulators have a vital role to play in ensuring sufficient competition.
This includes making sure there is adequate available spectrum, abundant IP addresses
or other numbering resources for new market entry, and fair competition between operators
and OTT providers.
Ensuring markets remain open to OTT and facilities‑based providers is essential to
innovation in broadband infrastructures, and critical to addressing major industry
and broader economic and social challenges.
A growing number of industry leaders claim high prices for international mobile roaming
are detrimental to their relationship with their customers, and a significant barrier
to trade and travel in OECD economies. The OECD Recommendation of the Council on International
Mobile Roaming Services (February 2012) recommends assessing and removing barriers
that may prevent access by mobile virtual network operators to local wholesale mobile
services to offer roaming services.
Limited spectrum and the increasing demand for data services mean that mobile networks
will strive to offload traffic to fixed networks. Policy makers and regulators need
to ensure enough supply to maintain sufficient backhaul for wireless networks, especially
if there is insufficient fixed access network competition. While there is debate as
regards the schedule for fibre‑to‑the‑residence, all agree that network operators
will continue to bring this technology closer to residences and end users. The challenge
for regulators is that, regardless of the technology used, many parts of the OECD
look likely to face monopolies or duopolies for fixed networks. Wireless can provide
competition, but spectrum availability will always impose limits that are not a constraint
for fibre.
Since the 2011 Communications Outlook, the Asia Pacific Network Information Centre
has run out of Internet Protocol version 4 (IPv4) addresses under normal procedures,
as has Réseaux IP Europeéns Network Coordination Centre. Africa, North America and
South America will use up their allocated address space in due time. The successor
to IPv4, IPv6, allows 2128 addresses, a near unlimited amount, but has not been implemented to any significant
extent. Although over half the equipment deployed on the wired Internet is capable
of supporting IPv6 today, less than 1% of this equipment connects to a service that
provides IPv6.
While industry levies or fees may be justified for specific purposes, such as funding
the sector regulator or contributing to universal service goals, additional tax burdens
on the telecommunication sector may harm both consumers and the industry itself.