A public lecture I gave last night has been reported in quite an interesting way, with a headline “Govt, regulation irrelevant in telecoms,” that is not quite correct. As can be seen from the quote below (from the same story), I did not exactly say that government should cease and desist from all policy and regulatory acts: These include allowing for as many players in the market as possible; finding more flexible and creative ways in which to allocate spectrum; having a light market hand, but dealing with competition issues firmly; and generally staying out of the running of the industry The presentation slides of the public lecture can be downloaded here (some embedded video components may not work; this will be fixed shortly).
Ideas picked up at Euro CPR from our African colleagues, coming out in multiple fora/countries/forms. Without direct government action, other than enabling policies such as the abolition of international gateway monopolies, and the kind of fuss that has accompanied the regulation of roaming charges within Europe, roaming has been abolished in East Africa. Why not in South Asia? Why can this not be done in South Asia? Telenor has a presence in three of the major markets in the SAARC region: dominant in Bangladesh; significant in Pakistan and getting established in India.
The 13th telecom reform course for regulators and stakeholders offered by LIRNE.NET in collaboration with the Graduate School of Business at the University of Cape Town will start on the 14th of April 2009. The LIRNE.NET courses started in the Netherlands, moved to Denmark, then were offered in multiple locations in Africa and the Caribbean, until settling in Singapore since 2005. Now the baton has passed to our colleague Alison Gillwald at the EDGE Institute in South Africa.
Lots of people talk about predicting earthquakes. Here’s the science. Why should we be in interested in earthquake prediction? Because we live in a bad neighborhood: there has been a tsunamigenic earthquake every year, except 2008, since 2004 in the Sunda Trench. Until the prediction issue is resolved all we can do is focus on warning and preparedness.
Interesting route chosen by Australia: taxpayers will fund most of the costs of building the broadband network and the operators, including the formerly government-owned Telstra, will have to buy capacity on it to provide services. Unlikely to be effective in most countries, but Australia along with the Scandinavian countries was among the most advanced in providing services to most citizens during the period of government ownership. Assuming that the backbone is relatively static technology, this might work as well as having a private entity operate the backbone under regulation. Given it will be an essential facility, there had to be regulation anyway. One does have to ask why none of private bidders met the requirements.
One of the things LIRNEasia tries to do is to evolve low-transaction-costs of making participatory and high-quality decisions. The Internet’s Requests for Comments (RFCs) are gold standard. This is a fascinating account of how they came about. The early R.F.
Last week, representatives of all the entities engaged in advancing research on communication policy and regulation met in Sevilla, Spain, at the invitation of Euro CPR, as part of the annual Euro CPR conference. This was a follow up to the initiative taken by CPRsouth in December 2008 in Beijing, when it invited representatives of its peer organizations, TPRC in the US and Euro CPR, for a public discussion. For the Sevilla meeting, in addition to CPRsouth (represented by Rohan Samarajiva), ACORN-Redecom (represented by Raul Katz) and the inchoate CPR africa (represented by Alison Gillwald) were invited separately, signifying rapid growth in the South in the past few months. Of course, both Alison and a representative of DIRSI, which is a key constituent of ACORN-Redecom, were present in Beijing as well. Each of the representatives shared their views on how they set about their missions.
Impressive science is being produced as a result of the 2004 Indian Ocean tsunami. The focus now must be on creating systems within national governments that will allow the best use of science. Modeling data on projected tsunami arrival times (if any) were available to all on September 12, 2007. There is no evidence that the government’s hasty evacuation order took into account any of this information. A new mathematical formula that could be used to give advance warning of where a tsunami is likely to hit and how destructive it will be has been worked out by scientists at Newcastle University.
On March 27th, 2009, the Lanka Software Foundation committed to handover the Sahana project to the Sahana Software Foundation, upon incorporation. The award winning software, developed in the aftermath of the 2004 Indian Ocean tsunami, is now recognized as a leading disaster management software suite and has been deployed from the Philippines to Manhattan. In the course of the handing over ceremony I commented that Sahana exemplified a new kind of public good, that relied on funding and contributions from many sources, EXCEPT the government of the country it was developed in. In his brief comments, Hon Tissa Vitarana, Minister of Science and Technology of the Government of Sri Lanka, graciously conceded that the government has a lot of catching up to do. Now that the open source project is being spun off as a global public good to be maintained and developed by an international committee of disaster and open source professionals, there is not much point in giving Sahana money.
As those who have followed the discussion on universal service fees on this blog know, universal service fees are usually charged from a company (actually the company collects the money from customers and gives it to the government). The payments go to dedicated fund, from which it is disbursed (or not, for the most part) to connect more people to the network. India has one of the highest universal service fees in the world–5% of total revenues. We were hopeful, after years of presenting evidence to the government, that this would be reduced (though our preference is for its complete phasing out). The reduction of the rate from 5% to 3% was almost done, but suddenly it has been halted due to Finance Ministry objections.
Much of LIRNEasia’s work is premised on the mobile serving as the pathway to the Internet us by those at the bottom of the pyramid. Our African colleague takes a slightly different position. We will restate our position with supporting evidence from the Teleuse @ BOP research in Cape Town in April. I am sure the differences in opinion will help us improve our analyses. But is this optimism justified?
And now, for something completely different! LIRNEasia research found that mobile phones are increasingly being used for entertainment. But we never thought of this! Wang held his iPhone as if he were holding a sandwich, then blew into the microphone at the bottom of the device. He controlled the vibrato by tilting the phone as he played “the Zelda tune” from a popular fantasy-action video game called The Legend of Zelda.
Last year, the Indian authorities relaxed their strictures on infrastructure sharing, allowing the sharing of active and passive infrastructure except spectrum. Now in more mature markets, there are moves to go even further. As growth stabilizes, governments and operators in emerging economies should start looking at this option. Two of the world’s largest cellphone operators, the Spanish company Telefónica and the British giant Vodafone, said Monday that they would share infrastructure in several European markets in an effort to cut costs and protect profit margins. The companies said in a statement that they had agreed to share networks in Britain, Germany, Ireland and Spain, and were in “detailed discussions” about doing so in the Czech Republic.
Since 2005, LIRNEasia has been critical of the very high amount (5%) charged from Indian telecom consumers through the operators and then left unspent in government accounts (approx. USD 4 billion at last count). Our criticisms were presented in multiple forms including a book chapter. We made them known to the leadership of the Department of Telecommunications in face-to-face conversations. Most recently, I discussed the harm caused by taxing poor people to purportedly serve poor people and then keeping the money unspent at a UNCTAD meeting on trade and regulation.
At the “multi-year expert meeting” on services, development and trade: the regulatory and institutional dimension, organized by UNCTAD in Geneva, there was rich discussion on the increasing importance of regulation in an environment in which services trade is assuming greater importance. As attention shifts to services trade (for example, the most important element of the proposed Comprehensive Economic Partnership Agreement between India and Sri Lanka, is the services chapter), there is of necessity a need to start looking at regulatory restrictions on services trade. Tariffs do not apply to services, so the only barriers are opaque, arbitrary and discriminatory regulatory provisions. This has been well recognized in telecom, with the reference paper on regulation being one of the key contributions to liberalization made by the GATS. The issue being raised at the UNCTAD meeting was whether there was value in exploring the regulatory aspects of trade in other infrastructure services.
Two surveys of India’s telecom regulatory and policy environments conducted in 2006 and 2008 by LIRNEasia show a dramatic increase in the score for universal service policies since the policy changes effected in 2007. From being ranked lowest among six emerging Asian countries, India now has close to the highest score for universal service policy and implementation in the mobile subsector, the most dynamic and important of all. What is also noteworthy is that the 2006 score for universal service was the lowest among the six policy and regulatory dimensions that were assessed then. By 2008, that unenviable position had been passed to the dimension of management of scarce resources (spectrum). The increase in the USO score in the fixed subsector was 36 percent; and in the mobile sector 64 percent.