More than 90 per cent of international IP connectivity passes through North America. Once a leased line is established, traffic passes in both directions, benefiting the customers of the hub country as well as the developing country, though the costs are borne primarily by the latter. These higher costs are passed on to customers. On the Internet, the net cash flow is from the developing South to the developed North. The private sector should take the lead role for instance by investing in more new capacity, or constructing new routes.
Governments can help by ensuring that infrastructure markets are open to competition.
But there are also areas where governments working in co-operation can have a stronger impact than if they work alone. There is also work to be done on finding more equitable funding arrangements for international leased lines, building on the principles established at the APEC meeting. Competition watchdogs must remain vigilant, especially on international routes where there is a strong trend towards consolidation of market share. Just two companies control more than half the market in international IP connectivity. The Internet will be the global library and university of the 21 st century, and much more besides.