Implications of Broadband Quality on Digital Markets

Exploring the impact of broadband quality of service on digital markets, focusing on legal and regulatory tools, payment mechanisms, delivery mechanisms, and the importance of Quality of Service Experience (QoSE). The study highlights factors such as download speeds, latency, jitter, and packet loss, emphasizing the significance of reliable connectivity for various digital activities. Case studies from Myanmar underscore the challenges of poor latency despite impressive download speeds, shedding light on the complexities of ensuring a high-quality digital experience in evolving markets.

• Broadband Quality
• Digital Markets
• QoSE
• Connectivity
• Latency

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1. Implications of Broadband Quality of Service for Digital Markets Shazna Zuhyle National Public-Private Dialogue on making the digital marketplace fairer Colombo, 15thMarch 2018 This work was carried out with the aid of a grant from the International Development Research Centre, Canada.

2. Basic building blocks required for digital markets Legal and Regulatory Tools Skilled Use Payment Mechanisms Delivery Mechanisms - Users and producers comfortable using ICTs safely/securely - Multiple trusted modes - Minimally: Easy locations for pick up Connectivity 4

3. Quality of Service Experience (QoSE): What matters in digital media? 5

4. Its not just about download speeds Service Download (Mbps) Upload (Mbps) Latency (Round Trip Time, RTT) (ms) Jitter (ms) Packet Loss (%) Web Browsing +++ - ++ + + Creating content for sales + +++ - - - Transactions - - ++ + - Streaming media +++ - ++ ++ ++ VOIP + + +++ +++ +++ Games + + +++ ++ ++ Source: Gonsalves, T.A & Bharadwaj, A., 2009 6

5. Example: Myanmar 2017 - Download speeds are impressive 14 Download Speed (Mbps) 12 10 Singapore Average 8.6 Mbps (Source: Akamai 2017) 8 6 4 2 0 10 p.m. 11 p.m. 5 a.m. 6 a.m. 1 a.m. 2 a.m. 3 a.m. 4 a.m. 7 a.m. 8 a.m. 9 a.m. 12 noon 1 p.m. 2 p.m. 3 p.m. 4 p.m. 5 p.m. 6 p.m. 7 p.m. 8 p.m. 9 p.m. 10 a.m. 11 a.m. Midnight Time of day MPT Ooredoo Telenor Source: LIRNEasia study of Mobile Broadband QoS Myanmar 2017 7

6. But overall QoSE suffers because of poor latency 900 900 900 Network: 3G Network: 4G / LTE 800 800 800 700 700 700 Average latency (ms) 600 600 600 500 500 500 400 400 400 Lower the better Lower the better 300 300 300 200 200 200 Singapore average 100 100 100 Singapore average Singapore average 0 0 0 1 p.m. 2 p.m. 3 p.m. 4 p.m. 5 p.m. 6 p.m. 7 p.m. 8 p.m. 9 p.m. 1 p.m. 1 p.m. 2 p.m. 2 p.m. 3 p.m. 3 p.m. 4 p.m. 4 p.m. 5 p.m. 5 p.m. 6 p.m. 6 p.m. 7 p.m. 7 p.m. 8 p.m. 8 p.m. 9 p.m. 9 p.m. 1 a.m. 2 a.m. 3 a.m. 4 a.m. 5 a.m. 6 a.m. 7 a.m. 8 a.m. 9 a.m. 1 a.m. 1 a.m. 2 a.m. 2 a.m. 3 a.m. 3 a.m. 4 a.m. 4 a.m. 5 a.m. 5 a.m. 6 a.m. 6 a.m. 7 a.m. 7 a.m. 8 a.m. 8 a.m. 9 a.m. 9 a.m. 10 p.m. 11 p.m. 10 p.m. 10 p.m. 11 p.m. 11 p.m. 10 a.m. 11 a.m. 10 a.m. 10 a.m. 11 a.m. 11 a.m. Midnight Midnight Midnight 12 noon 12 noon 12 noon MPT Ooredoo Telenor Source: LIRNEasia study of Mobile Broadband QoS Myanmar 2017 8

7. But why does this matter for e-Commerce / in digital markets? 2 seconds is the threshold for e-commerce website acceptability. At Google, we aim for under a half second - Maile Ohye, Google s Site Performance Webmaster s Video 9

8. Speed of the Internet is still a prevalent issue Source: Nationally representative surveys of households and individuals in each country, 2017, by DIRSI, Research ICT Africa and LIRNEasia Q: What is the main limitation on your use of the internet? (Single response) 1 0

9. Low use of platforms in Cambodia despite 62% awareness (of age 15 - 65 Internet users) Q: Have you ever bought any of the following goods or services through the internet or apps? Source: Nationally representative surveys of households and individuals in each country, 2017, LIRNEasia 11

10. No major difference between urban and rural: Example from India Use of Platforms (of those who were aware in India Urban vs. Rural) 60% 53% 51% 50% 45% 41% 40% 40% 34% 29% 28% 30% 24% 22% 21% 19% 20% 10% 0% Transport/ taxi services (Uber,) Goods/products (Amazon, Aliexpress, ebay) Microwork/freelance (Upwork, Fiverr) Tickets and appointments (movie/railway/ doctor appointments) Hired help Accommodation (AirBnB) India Urban India Rural Q: Have you ever bought any of the following goods or services through the internet or apps? Source: Nationally representative surveys of households and individuals in each country, 2017, LIRNEasia 12

11. No major difference in broadband QoSE between urban and rural: Example from India Download speed - 3G Networks 14 Average Downlaod Speed (Mbps) 12 10 8 6 4 2 0 1 p.m. 2 p.m. 3 p.m. 4 p.m. 5 p.m. 6 p.m. 7 p.m. 8 p.m. 9 p.m. 1 a.m. 2 a.m. 3 a.m. 4 a.m. 5 a.m. 6 a.m. 7 a.m. 8 a.m. 9 a.m. 10 p.m. 11 p.m. 10 a.m. 11 a.m. 12 noon Midnight Time of day Latency - 3G Networks Urban Rural 800 Average Latency (ms) 700 600 500 400 300 200 100 0 1 a.m. 2 a.m. 3 a.m. 4 a.m. 5 a.m. 6 a.m. 7 a.m. 8 a.m. 9 a.m. 1 p.m. 2 p.m. 3 p.m. 4 p.m. 5 p.m. 6 p.m. 7 p.m. 8 p.m. 9 p.m. 10 a.m. 11 a.m. 10 p.m. 11 p.m. 12 noon Midnight Source: LIRNEasia, Study of Mobile Broadband Quality of Service, India 2017 Time of day 13 Urban Rural

12. However, Rural settings are faced with the challenge of network unavailability Lower the better Urban Rural 0 100 200 300 400 500 600 700 800 900 1000 No. of errors observed Total sample size: 24920 Test sites in urban settings: 11,173 Test sites in rural settings: 13,748 Source: LIRNEasia, Study of Mobile Broadband Quality of Service, India 2017 14

13. In Sri Lanka, preliminary findings hint at metrics that can be deterrents to use of e-Commerce Sessions with data: 3556 Sessions limited by network: 935 Limited sessions 26.3% Base stations covered 472 Average daily usage speed (not limited by network) 3.5 Mbps down, 1.0 Mbps up Average Latency: 828 ms Source: NetRadar, Summary of preliminary diagnostics of mobile broadband in Sri Lanka 2017

14. THANK YOU. DATA AVAILABLE AT: www.lirneasia.net and shazna[at]lirneasia.net