This seems a little flaky, but there is cutting-edge economic theory behind the idea of creating incentives for the private creation of public goods. Not that we’ll apply quite yet, but it would be interesting to speculate on how one could package some of the work that is being done in telecom to qualify for the poverty reduction prize from X Prize. Silicon Valley Meets ‘American Idol’ With Prizes to Inspire Inventors – New York Times Venture capital firms are considering contests that offer competing engineers and entrepreneurs multimillion-dollar prize purses if they come up with innovative technologies in various industries. The concept is getting an introduction on March 3 at a fund-raiser at Google. The event is intended to raise a chunk of $50 million to operate the X Prize Foundation, a nonprofit group that already has awarded $10 million to designers of a private spacecraft.
Another story that reinforces our emphasis on the emerging Asia-Pacific and the Bottom of the Pyramid: LANKA BUSINESS ONLINE – LBO Making affordable phones and targeting consumers with smaller budgets have now become priorities for the largest companies in the sector who were all present at this week’s 3GSM trade show in Barcelona. “There are between 2.5 and 2.8 billion people who have a mobile phone: the next billion will come from the high-growth market,” said David Taylor, strategy director for Motorola. The areas representing the most opportunity are Asia, Africa and the Middle East, he said.
At the end of 2006, Asia-Pacific mobile connections passed the 1 billion mark. The Asia-Pacific reached a 30% penetration rate and is expected to grow by 19% between 2006 and 2007, according to the respected newsletter Wireless Intelligence. India overtook China in terms of growth rate in Q1 2007. Bangladesh, Pakistan and Indonesia have gained strong momentum over the past few quarters with almost 50 million net additions between 2005 and 2006. Among these top markets, LIRNEasia is active in all but China, a gap we intend to fill shortly.
Inside the LIRNE.NET community, we have for some time been discussing a program of research centered on what we all mobile multiple play, a convergence of services around the transactional capabilities of the mobile phone and its unparallelled connectivity. Our friend and colleague Abu Saeed Khan is reporting on a major development on these lines from the GSM Congress in Barcelona: :: bdnews24.com :: Spearheaded by a special group of 19 mobile operators with networks in over 100 countries and representing over 600 million customers, GSMA believes the programme could double the number of recipients of international remittances to more than 1.5 billion, while helping to quadruple the size of the international remittances market to more than one trillion dollars by 2012.
Sunday Times Financial Times (Sri Lanka) February 11 2007 Acutally, on how to improve agricultural markets using ICTs…
Hutchison exits India and Vodafone enters. Will this accelerate Indian mobile growth to Indonesia and Pakistan levels? No clear evidence of increased investment; new pricing strategies, etc. yet. BBC NEWS | Business | Vodafone buys Indian mobile firm Vodafone has bought a controlling stake in Indian mobile phone firm Hutchison Essar for $11.
LIRNEasia intended the Telecom Regulatory Environment scores to serve as a diagnostic instrument for regulators, policy makers and stakeholders, not exactly a “league table.” However, the news value seems to be in the inter-country comparisons. We are grateful for whatever coverage we get. Businessworld: Pak Betters India The sharp growth in the Indian telecom industry has been talked about for quite sometime. That growth happened after many contentious issues got straightened out over the years at the regulatory level.
With new acronyms (NGN) being introduced instead of better service (ADSL that actually gives the 2 mbps or 512 kbps we paid for), our thoughts had begun to wander to WiMax, but sadly, cold water is being poured on that hope too. On continuing discussion of municipal wireless there is a great quote in here: ‘Using municipal Wi-Fi for residential coverage, [Sanjit Biswas] said, was “the equivalent of expecting street lamps to light everyone’s homes.” ‘ Wireless Internet for All, Without the Towers – New York Times WiMax, which will be a high-power version of the tower approach, comes in two flavors: mobile, which has not yet been certified, and fixed, which is theoretically well suited for residential deployment. Unfortunately, it’s pricey. Peter Bell, a research analyst at TeleGeography Research in Washington, said fixed WiMax would not be able to compete against cable and DSL service: “It makes more economic sense in semirural areas that have no broadband coverage.
Now Motorola is said to be doing badly because the Razr ceased to be fashionable after I bought one! But seriously, if people are upgrading phones in less than 24 months on average, the second-hand market must be huge. Is this the answer to solving the affordability barrier at the Bottom of the Pyramid? Cellphone Envy Lays Motorola Low – New York Times Motorola’s fortunes have plunged along with the price of its Razr. Its profits have collapsed, and it announced plans last month to lay off 3,500 workers.
LIRNEasia has been moved to Denmark, but hey, we take whatever coverage we can get! Missed call virus bugs telecom firms A study by Learning Initiatives on Reforms for Network Economies (Lirne), a Denmark-based NGO that focusses on telecom issues, shows that over half of India’s 140 million mobile subscribers make missed calls to convey a pre-agreed message. As many as 95 per cent of the pre-paid customers used missed calls for this purpose, the study added. For operators, missed calls clog networks without earning them revenue, also frustrating genuine callers with “network busy” messages. “Missed calls use microwave links, the backhaul and the exchange and yet we make no money,” said a senior executive of Hutchison-Essar.
In the aftermath of the 2004 Indian Ocean tsunami, the World Dialogue on Regulation carried a discussion on regulatory responses to disasters. It appears that this discussion has continued relevance to developed countries as well, as seen in this communication from the National Regulatory Research Institute in the US: “Severe January ice storms left over 450,000 customers from Texas and Oklahoma to Michigan, New York, and New Hampshire without power. In Oklahoma, sleet and freezing rain built up ice four inches thick, bringing down trees and power lines, leaving some customers without power for as much as a week. Commissions typically investigate a utility’s response to a long-term major outage, and these severe winter storms will cause regulators to refocus on outage management and restoration issues. An ongoing NRRI study on electricity outages recommends that regulators make their expectations of electric utilities more specific and investigates regulatory approaches that encourage adoption of efficient outage management and restoration systems.
Sri Lanka completed a major change in the numbering plan in 2003. That included provision for toll free numbers. However, from the report below, it appears that the necessary implementation actions have not been taken. LANKA BUSINESS ONLINE – LBO Though Sri Lanka does not have a toll free number system, HSBC has arranged with fixed and mobile operators to offer a toll free number. “We will expect lot more customers to use phone banking as it is easier and free of charge,” says Chandima Liyanage, who is in charge of HSBC’s distribution channels.
Free media Movement – Sri Lanka Press Release 30 January 2007 Internet facilities and 8,000 telephones cut off in Jaffna Peninsula The Free Media Movement (FMM) is deeply disturbed to learn that basic communications facilities to the Jaffna Peninsula have been blocked from 28th January 2007. Internet facilities and around 8,000 landline telephones of Sri Lanka Telecom (SLT) are dysfunctional to date. SLT, jointly owned by the Sri Lankan Government and Nippon Telegraph & Telephone Corporation (NTT) of Japan, is the sole Internet provider in Jaffna Peninsula with a population of around 600,000 according to official statistics. The FMM was told that there is no official decision by the Telecommunication Regulatory Authority to block communications in this manner in the Peninsula. However, a number of citizens in Jaffna and journalists confirm that there is no Internet access in Jaffna for the past 3 three days, when contacted through mobile phones.
How will John Gage’s proposal play out in the telecom eco-system of developing countries? Who will operate them? Will they suffer the same fate as ICTA’s VSAT based connectivity for telecenters, where you can do Internet but cannot call the next village? Can you just drop technology in, without addressing the overall institutional setting? At Davos, the Squabble Resumes on How to Wire the Third World – New York Times Separately at the meeting on Saturday, John Gage, the chief researcher at Sun Microsystems, proposed an industry plan to deploy advanced data networks in developing economies with contributions of engineering staff time of 1 percent.
Support for the HazInfo project’s position that radio, which allows for point-to-multipoint congestion-free transmission of warnings is the optimal technology. The LIRNEasia and WorldSpace developed solution, which allows for remote activation of radios is even superior to what is described in this article. However, the article points out that a lot of institutional factors need to be addressed for the warning to be effective, an issue we are grappling with in the Sri Lanka pilot. Air Support – New York Times Consider, for instance, the basic question of where you would turn for information if disaster struck your hometown. The Internet puts up-to-the-minute information at your fingertips, but not if you can’t turn on your computer or your local network is down.
Nokia, which had a few bad years, appears to be making a comeback on the shoulders of exploding markets in the Asia Pacific. LIRNEasia research shows that there is plenty of room for market expansion in the Asia Pacific, especially at the bottom of the pyramid. If Nokia and other equipment suppliers address this market proactively, they can have many more good years. Nokia Net Up 19%, Topping Estimates – New York Times Nokia, which is based in Espoo, Finland, shipped a record 106 million units in the quarter, up 26 percent from a year earlier and 19 percent from the third quarter. Nokia said its fourth-quarter market share was unchanged from 36 percent in the third quarter and up from 34 percent a year earlier, led by gains in all regions except North America.