Broadband needs both chicken and the egg


Posted on September 18, 2009  /  0 Comments

Mobile is the most logical vehicle to deliver affordable broadband. Ovum warns the success or failure of mobile broadband in an emerging market may still be outside an operator’s control. Besides competition, the costs of fuel supplies to remote base stations or international connectivity must be taken seriously in the business plan.

“Governments have a major role to play in providing an environment conducive to success; spectrum policy is the clearest example of this, either through its release to operators or through global harmonisation to benefit from economies of scale”, says Daniel Subramaniam, analyst at Ovum and co-author of this report.

Governments also hold the keys to unlock several other stimuli for deployment and uptake. “Reducing taxes on telecoms services, encouraging competition and boosting investment in power supply and international connectivity could all result in lower prices to end users”, adds Subramaniam. Cellular news reports.

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