Tag Archives: spectrum
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What exactly is a spectrum shortage?
When I was in government, I heard complaints of shortages of scarce resources and ability to earn adequate revenue all the time. I paid attention, but always verified. Specifically, with regard to claims of spectrum “shortage,” there is a problem. It is true that without a minimum allotment (say 2.5 MHz for CDMA and 5 [...]
Bangladesh mobile license renewals: Expect an interesting 2012
The government has not backed off on the discriminatory and anti-poor “market competition factor” that was subject to a detailed critique when announced. Per Mhz spectrum charge has been set on the basis of their market share or ‘market contribution factor’ (MCF) which was previously known as ‘utilisation factor’ in the draft licensing guideline of [...]
Bangladesh: Beware market share greater than 20 percent (on a particular day in a particular year!)
Market share is never the final determinant of market power. It is used as a screen for further investigation and/or to shift the burden of proof. So, for example, an HHI (Herfindahl Hirschman Index) greater than 1700 or 1800 is triggers anti-trust investigations by the US government in the case of mergers and acquisitions. In [...]
Spectrum refarming in Greece
For those who think spectrum is a headache unique to Bangladesh, here’s relief from Greece: The auction has been discussed and planned for more than a year and predates the country’s financial crisis, said the official, a senior administrator at the Hellenic Telecommunications and Post Commission, the regulator holding the auction. He did not want [...]
Bangladesh: Same spectrum; different prices
When I wrote the op ed that was published in Daily Star yesterday, I did not know the anti-competitive “Market Competition Factor” had been decided. Today’s Daily Star gives the numbers. Looks unusually good for Citycell that not only pays 1/5th the price per MHz that Grameenphone pays but can also make do with less [...]
Bangladesh: “Market competition factor” is anti-consumer
Building on the previous blog post, I wrote up an op-ed on the latest developments of the Bangladesh license renewal drama that has been published in the Sunday Daily Star. What mistakes are made when incentives are not properly analyzed. More proof that the Bangladesh Ministry of Post and Telecom has a serious problem of [...]
Bangladesh: Peculiar pricing of spectrum
The long dragged-out drama of license renewal in Bangladesh has taken one step toward closure, according to the Daily Star. The government yesterday finalised the process of how it will charge four mobile operators — Grameen-phone, Banglalink, Robi and Citycell — for renewing their licences for the next 15 years. A high-profile meeting presided over [...]
Sri Lanka media on TRE results
LBO.lk has carried a report on the TRE results for Sri Lanka, in relation to comparators. I understand this will also come out on TV on Lanka Business Reports. The telecom survey was conducted in seven countries including Bangladesh, India, Pakistan, Philippines, Sri Lanka and Thailand. The survey systematically captures the perception of operators, vendors [...]
4G rollout cited as rationale for AT&T buying T Mobile
So AT&T is claiming that it can rollout 4G networks only if it is allowed to buy T Mobile (and combine the frequencies assigned to both). So what they really want is spectrum? As smartphones and tablets proliferate, so too have apps like one by Facebook that draw in ever-rising amounts of data. Monday’s letters [...]
The ugly reality of spectrum refarming
The Federal Communications Commission has a solution: reclaim airwaves from “inefficient“ users — specifically, television broadcasters — and auction them off to the highest bidder, sharing some of the proceeds with television stations that volunteer to give up airwaves, known in the trade as spectrum. It is easy to talk about spectrum refarming in the [...]
The challenge of designing auctions to preserve competition
Auction design is hot. The Economist reports on 4G auction design in the UK: The government will want to squeeze as much revenue as it can from the sell-off, but it must also preserve competition in a consolidating industry. The recent merger of Orange and T-Mobile has left Britain with four mobile-phone operators: Everything Everywhere [...]
Peculiar economics of Bangladesh license renewal
I was asked about charging different amounts for spectrum when I was in Dhaka recently and I said it was like pricing jet fuel differently for competing airlines; it did not make any sense. Now we have the full argument laid out. It’s very peculiar. On what basis was this utilization factor calculated? I asked [...]
Can a market support another operator?
I was asked today by a reporter whether the Sri Lanka market could support another entrant. I answered, but wasn’t sure it would be carried accurately. Therefore, here is the answer. The market should determine the number of suppliers in a market, not government officials. This requires two things: (1) and orderly policy on market [...]
LIRNEasia CEO quoted in TIME news article
LIRNEasia CEO, Rohan Samarajiva, was quoted recently in an article published by TIME on India’s widening telecom scandal. A recent report published by India’s top auditor highlights irregularities in the government allocation of 2G spectrum to private companies. Rohan Samarajiva, an expert on telecom policy in South Asia, has studied the mobile-phone market in Bangladesh. [...]
Super WiFi from white space
The US has done it. When will Asian spectrum managers start? First step is to move TV to digital. Where are the road maps? The Federal Communications Commission approved a proposal on Thursday that would open vast amounts of unused broadcast television airwaves for high-speed wireless broadband networks and other unlicensed applications. The change in [...]
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