Rohan Samarajiva, Author at LIRNEasia — Page 80 of 182


Ronald Coase, 1910-2013

Posted on September 3, 2013  /  0 Comments

The man who introduced the concept of transaction costs, proposed a solution on dealing with problems of externalities and was one of the first to propose applying market solutions to spectrum allocation is no more. I first read his work on spectrum, since one of my teachers, Dallas Smythe, was a vociferous opponent. Then I read his classic piece on “The nature of the Firm.” That impressed me. Looking back I think that reducing transaction costs has become a governing principle of my life.
I never thought I would write those words, but there it is. Just a few years ago, Nokia was lapping its competitors. Now it’s exiting. How evanescent is market leadership in ICTs? Beleaguered Finnish mobile phone maker Nokia will sell its mobile phone unit to US group Microsoft for 5.
The legislature has completed its work and the bill awaits the President’s signature. But the actual legislation with 70 amendments from what potential investors saw is yet to see the light. And most of the detail (“the devil is in the detail”) will be in subsidiary legislation. Another nugget that has emerged is that Ooredoo is planning to invest USD 15 billion while Telenor is planning to invest USD 2 billion. MP Phone Myint Aung said the move would mean “international operators can launch their operations.
It was around this time in 2006 that Prashanthi Weragoda, conference organizer extraordinaire, and I went off to Manila to discuss the possibilities of holding the first CPRsouth conference there. We were aiming for 2006, but the first conference was actually held in January 2007. Much water has flowed under the bridge since then. The conference that starts next week is perhaps the biggest we have organized. It’s 2.
SLASSCOM is the software and BPO industry body in Sri Lanka. It is organizing a discussion on innovation-friendly policies. SLASSCOM are to host CXO Breakfast Briefing on “Impact of policies concerning the internet on innovation and economic growth” on 05th September from 7.30 to 11 AM at Kings Court, Cinnamon Lakeside Hotel, Colombo. This event will feature a keynote address by Ann Lavin-Director, Policy and Government Affairs, Greater China and Asian Growth Markets, Google.
It is one thing for telecom companies to hand over information about their customers to government under compulsion of law. But quite another when it becomes a lucrative source of revenue. The bulk of the spending, detailed in a multi-volume intelligence budget obtained by The Washington Post, goes to participants in a Corporate Partner Access Project for major U.S. telecommunications providers.
Telecomasia.net quotes the New Light of Myanmar, government publication, to the effect that the law now has only one step more to go: Presidential approval. Myanmar parliament has passed the telecom bill which will allow the nation’s mobile licensees to commence operation. The Pyidaungsu Hluttaw (Union Assembly) approved the Communications Bill this week, state-run New Light of Myanmar said on Wednesday. “As the Pyidaungsu Hluttaw approved the Communications Bill, [state-run telco] MPT and international operators can launch their operations,” the paper cites MP U Phone Myint Aung as saying.
Last week, Helani Galpaya and I were in Nay Pyi Taw, the capital of the Union of Myanmar. We were in charge of the first day of a three day program. Here is what we did. Results of reform and rationale for regulation. The introductory unit will be taught by Professor Rohan Samarajiva (RS).
There was a lot of discussion here when Airtel entered the market. So much so that we used to receive phone calls asking for employment! Part of what we said then was they hurt themselves by being slow to enter after the announcement. It appears the damage could not be undone. India’s Economic Times said citing two unnamed sources said Standard Chartered was advising Airtel on the sale and the firm was valued at between 110 to 130 million US dollars.
A wide ranging discussion on ICTs carried in a government-owned newspaper I refuse to read. In Sri Lanka the amount of money that we spend on communication is about 700 rupees a month per household on average according to the government survey – According to the Household income and expenditure survey it is about 3.5 percent of our non-food expenditures. “We are getting more and more for the rupee that we spend for communication and we are using it more. So what I see is, the industry has to be very efficient and innovative because people expect more from them, for the same amount of money.
The widespread casualties caused this year by fast moving weather systems in Uttarakhand and in Pakistan have caused experts to call for real-time data sharing among the region’s meteorological departments. This seems to call for increased reliance on ICTs. The monsoon has been erratic in recent years. Last year, the monsoon failed in Sri Lanka, and parts of the country’s northern, eastern and southern regions went through a drought that affected at least 1.2 million people.
As everyone assumes that everyone is connected to the Internet (not an assumption we have to deal with in our countries at this moment), the consequences of not using the Internet become quite serious. “As more tasks move online, it hollows out the offline options,” said John B. Horrigan, a senior research fellow at the Joint Center for Political and Economic Studies. “A lot of employers don’t accept offline job applications. It means if you don’t have the Internet, you could be really isolated.
One thing I have learned is not to place too much trust in promises of investment. But USD 15 billion from one company seems in the ballpark for a country that wants to go from 5 to 80 fast (that’s mobile SIMs/100). All good. But why is the thinking fixated on operators who will do everything? They want the operators to build and operate telecenters; provide mobile money and aginfo services.
My respect for Huawei goes back to 2002-04 when I was responsible for telecom reforms in government. They never approached me to lobby for anything. But I asked them what the per-line costs they could offer on CDMA. Their response knocked my socks off. One of the two companies that got the first blocks of spectrum for CDMA went for Huawei.
Sitting in Yangon, preparing for a regulatory training event in Nay Pi Taw, my mind went to the hoary Jipp’s Law. Even with questionable 2012 data as reported by the ITU, Myanmar had around 5 SIMs/100 end of 2012. World Bank does not report GNI per capita data for Myanmar. Is it realistic for Myanmar to reach the level of penetration Thailand achieved in 2007, starting with the new investments and energy created by the 2013 licenses? Jipp suggests economic growth would have to reach the level Thailand had in 2007.

Our engagement with Myanmar begins

Posted on August 16, 2013  /  3 Comments

It was tough to engage when reforms were not on the cards and Myanmar seemed happy to watch while the whole world got connected. Those days we wrote about China selling mobile service inside Myanmar and about cables that were cut. We also wrote about Cyclone Nargis and our small contributions to relief. But all that changed once the reform winds started blowing. I’ve been asked why so many blog posts on Myanmar.