December 2013 — Page 2 of 2 — LIRNEasia


The Alliance for Affordable Internet (AA4I) launched their Affordability Report to showcase their newly developed Affordability Index. LIRNEasia’s CEO Helani Galpaya was invited by AA4I to participate in a panel at the launch of the report at the ICTD conference that took place in Cape Town, South Africa in December 2013. Composite indices that compare and rank countries have value because they get the attention of policy makers and regulators – those at the bottom of the table are indignant (and are hopefully moved to improve matters on the ground so they do better next year) and those at the top use it for publicity. In both cases, it is a good way for research organizations or others to start a meaningful dialog with a government or a regulatory agency, to start identifying what actions are needed for the country to perform better (and rise up in the ranking) in the future. The value of these indices increases when they cover a large number of countries.

More on taxes

Posted on December 19, 2013  /  0 Comments

Connected to the earlier post on taxes, is this one about Vodafone India getting served a USD 600 million retroactive tax bill. While Vodafone maintains no tax is due on the 2007 acquisition, it has told the government it is willing to explore the possibility of a “mutually acceptable solution”. Vodafone further points it has become one of India’s largest investors, spending more than £12.8 billion in building its business in the country since 2007. The operator is also one of India’s largest taxpayers.
So I was asked why Airtel was quitting Sri Lanka, the first foreign market they entered. Here is the summary of what I said. Perhaps because it was its first foreign excursion, Airtel was very slow to roll out. In May 2007 they signed an investment agreement. I commented then that the amount committed was too small for a rapid rollout.
Viktor Mayer-Schonberger and I have been debating privacy since the early 1990s. We both had chapters in Technology and Privacy: The New Landscape, which remains a seminal book on technology and privacy, published in 1997. Just last month, we continued our conversation at IGF in Bali. He was not so forthright in Bali, but now he is putting into words what we have been kicking around in our internal discussions. At the just-concluded IAPP Data Protection Congress in Brussels, the audience heard a bold proposal from closing keynoter Viktor Mayer-Schönberger: “The naked truth is that informational self-determination has turned into a formality devoid of meaning and import.
I did not realize this was a big deal until I heard several people including references to writing entries for the International Encyclopedia in the short 2-3 minutes they were allowed for self-introductions at the recent IDRC Information and Networks Partners’ meeting in Cape Town. It’s been some time since I had opened an encyclopedia. I thought that Diderot’s and d’Alembert’s insane (but typically French) idea of codifying settled knowledge had for sure been permanently buried by the Internet and Google. But no, apparently the scholarly industry and the inherent conservatism of the university will keep it going, at least for a few more years. Anyway, it was not difficult or painful.
We all know the importance of investment in dynamic ICT markets. No investment: no new services, poor quality of service . . . As LTE is being rolled out and the conversation on 5G is gathering momentum,one would think the relationship between investment and taxes would be different from what is being reported as being paid by Vodafone: During the 2013 financial year, in which the group reported pre-tax profits of £3.
This was a central claim in the highly significant ruling made by Federal District Court in Washington DC: In a 68-page ruling, Judge Leon said the N.S.A. program that systematically gathers records of Americans’ phone calls was most likely unconstitutional, rejecting the Obama administration’s argument that a 1979 case, Smith v. Maryland, was a controlling precedent.
Fierce competition has prompted the operators in Israel to jointly build 4G networks, according to Reuters: Under the deal, the three operators will cooperate in obtaining frequencies for the 4G network, which will be built and operated by a newly created entity equally owned by Cellcom and Pelephone. Each operator will be required to purchase and operate its own core network and costs will be divided equally among the three operators, subject to certain conditions and limitations set in the agreement, which is for 15 years. Subsequently Reuters has also reported that Reliance and Airtel have agreed to do the same in India. In fact, they have widened the scope of sharing way beyond the mobile networks. The two companies will share inter and intra-city optic fibre network, submarine cable networks, towers and internet broadband services.
Last week LIRNEasia, its staff, members and members of its scientific advisory council banded together to collect USD 1250 towards the relief efforts in the Philippines.  The money was channeled towards a charity that provides medical aid to the victims of the super typhoon Haiyan. Haiyan is estimated have taken the lives of over 5000 people in the Philippines, and impact the lives of millions more.
I have been asked to present at the “Expert Consultation on the Asian information superhighway and regional connectivity” in Baku, Azerbaijan. Here is my presentation: Unleashing Infrastructure Synergies Across Sectors.
Last week I had the opportunity to speak to the leadership (200+) of one of Sri Lanka’s largest conglomerates at their quarterly meeting. I decided to anchor my talk on research LIRNEasia had conducted over the past years that had relevance to the company. We had drawn inspiration from a finding of the Growth Commission, co-chaired by Michael Spence, in developing our research. This was on the importance of connecting to global value chains. It is difficult for a smallholder or a micro enterprise to connect to a global value chain directly.