Services trade, especially mode 1 services trade where the buyer remains in the buyer’s country and the seller remains in the seller’s country, is critical to the development of emerging economies. India has been one of the greatest beneficiaries of liberalized trade, but the NYT article below shows that the US is also a clear winner. The full article is worth a read. For example, will Washington offer tax breaks or other export incentives? While businesses may clamor for them, these would be a setback for freer trade — after all, for years it has been America that has been hectoring other countries to end their subsidies to exporters.
One way business models and innovations travel is through mergers and acquisitions. We have been waiting to see more African consumers benefit from the low prices and greater connectivity afforded by the Budget Telecom Network Model. Finally it looks like a big Indian telecom operator has got a foothold in Africa, with the transfer of Zain equity in a number of African countries to Bharti Airtel. Zain has fared badly in Africa along with other Middle Eastern operators perhaps because their home turf has been heavily regulated. Most acted as comfortable monopolists until only recently.
A story on the Barcelona GSM World conference had this interesting summary on the state of the handset market. With our focus on infrastructure we have not written much about handsets over the years, but it’s becoming difficult, especially in the context of the Mobile 2.0 narrative. As I said in a recent interview with the Expanding Horizons magazine: “Mobile networks will provide the key connectivity, especially as we see handsets becoming more advanced.” Global shipments of handsets had been falling every quarter since the third quarter of 2008, when the global financial crisis erupted, according to market research firm Strategy Analytics.
Following the appointment of Director of Information (or Propaganda) as part-time Director General of Telecom, I have been getting a lot of calls asking about Internet censorship, prohibition of Face Book, and licensing of news websites. While I do believe that (a) the Director of Information is on the face unqualified to serve as DGT, and that (b) the Department of Information has no role to play in a modern democratic society, I do not think that any of these feared things will happen. Whatever the DGT does, he has to do under the Law, the Sri Lanka Telecom Act, 25 of 1991, as amended. According to the Act, the DGT does not have legal authority; all authority lies with the Commission, a five-person body chaired by the Secretary of the relevant Ministry, at the present time Mr Lalith Weeratunge, Secretary to the President. The DGT is a member ex officio and until now, the only full-time member.
Back in 2004, LIRNEasia got on the WiFi bandwagon. Ours was one of the first WiFi offices in Colombo (we had trouble getting suppliers who knew what they were doing) and we installed WiFi temporarily at the Mount Lavinia Hotel for our launch conference. One of the unexpected results was that it caused people to hang around the conference room, including after the sessions ended (a rather surprising outcome in an exceptional beach hotel). It seems that WiFi and the easy connectivity it gives has this effect universally: Students endure hundreds of hours on yellow buses each year getting to and from school in this desert exurb of Tucson, and stir-crazy teenagers break the monotony by teasing, texting, flirting, shouting, climbing (over seats) and sometimes punching (seats or seatmates). But on this chilly morning, as bus No.
It started with something innocuous. Within a very short period of around a week all the mobile operators in Pakistan announced they would charge 10 Paise for balance inquiries. The Competition Commission of Pakistan naturally initiated an inquiry. The mobile operators said there was no price fixing and that this move was intended to reduce the overuse of this service. But then someone turned up with copies of emails showing the existence of a CEO Forum and details on discussions of prices, not only for balance inquiries, but for other services as well.
Findings from LIRNEasia’s Teleuse@BOP3 study have been cited in the latest issue of Nokia’s Expanding Horizons magazine. The article discusses the vast potential mobile phones have for providing those on the lower-incomes or the bottom of the pyramid, access to the internet for the first time. Read the full article here. Excerpt below: According to ICT policy think tank LIRNEasia, the evidence shows that mobiles, not computers, have the best potential to deliver services to rural areas in the Indo-Gangetic Plain, the world’s largest concentration of poor people. “This is the hardest case.
Google has announced that it will be rolling out superfast broadband as demonstration projects. “Google, indeed, appears to be playing a chess game,” said David B. Yoffie, a professor at the Harvard Business School. “If they can create an even mildly credible commitment to offer superfast broadband to the home, it could strike fear in the hearts of cable and telcos, stimulating an arms race of investment — just as they did in the auction for spectrum a few years ago.” In a post on its corporate blog, Google said it planned to build and test a high-speed fiber optic broadband network capable of allowing people to surf the Web at a gigabit a second, or about 100 times the speed of many broadband connections.
An excerpt from a trade newsletter published by the Govt of India: According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has risen from 1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5.8 per cent in FY 2008-09. Further, the industry body expects the sector to grow between 4 per cent and 7 per cent during 2009-10 and return to over 10 per cent growth next year. India’s IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Software testing, and Web services.
Perhaps it is time for Sri Lanka Telecom Regulator to be renamed ‘Telecom Revenue Commission’ as it generates more revenue for the government than two state banks and Port and the Petroleum Corporation, suggests Rohan Samarajiva in his column to Lanka Business Online. The 3.5 billion rupee question: Does it regulate? The answer may interest the new boss, Anusha Palpita, who took over the reins few days back. “There is no problem with the administrative aspects, but I will have to get a grip on the technical side of TRCSL’s functions and duties”, he said to The Island- Sunday Edition yesterday.
LIRNEasia will be releasing the beta version of the Mobile AT Tester software on 13 February 2010. All bloggers (Sinhala/Tamil/English) are welcome to participate the event. The soft launched is at Renuka City hotel and will commence from 9:30 am to 12.00 noon followed by lunch. For further informaton please click here.
By Aileen Aguero, former Research Intern, LIRNEasia As an intern at LIRNEasia, I had the opportunity of working with Harsha de Silva in writing a paper called Bottom of the Pyramid (BOP) Expenditure Patterns on Mobile Phone Services in Selected Emerging Asian Countries. I presented this paper at the Pacific Telecommunications Conference, held on 17 – 20 January in Honolulu, Hawaii. The 2010 edition of this conference tried to emphasize the benefits innovation provides as well as the challenges faced by developing economies in connecting the unconnected and the adequate provision of systems and services. Our paper was part of Breakout Session 7: Building for Sustainability – ICTs in the Developing World, held on 19 January (paper and slides available here). Elizabeth Fife, Bruce Baikie, Laina Reveendran and Laura Hosman were also part of this panel.
As part of LIRNEasia’s 5th year anniversary conference, “research -> policy -> knowledge based economies“, a photo exhibition was commissioned at the event to capture different aspects of the use of mobile phones by those at the Bottom of the Pyramid (BOP). The images which were sourced from Flickr from both budding as well as professional photographers (and used with their permission), showcased the varied nature of mobile connectivity and use facing the people of Asia from the BOP. An online gallery has been created to as a companion to the actual exhibition and can be viewed HERE.
Voice and Data has done a story on spectrum hoarding. Among the main sources is Payal Malik, who did the spectrum/licensing study that was part LIRNEasia’s mobile 2.0 work. According to Payal Malik, sr research fellow, LIRNEasia, “It is difficult to verify whether the spectrum is actually being hoarded, but given the way allocation has taken place, I won’t be surprised if it is. In an effort to eliminate competition, the existing players inflate subscriber numbers.
Looks like it is too much a job for an ordinary committee. The special committee will miss the special guidance of Mr. Priyantha Kariyapperuma, Director General of Telecommunication Regulatory Committee of Sri Lanka, who tendered his not so special resignation yesterday, but the regulator giving some special attention to broadband quality is good news. We reproduce the news story in today’s Daily News below. (Sorry for the scan quality.
The USF is collected at 6% in Malaysia and the government is now sitting on MYR 5 billion ($1.5 billion) cash. The government has planned to boost internet penetration to 50% by the end of 2010 from the current rate of 31.4% out of the USF. Journalist B.