We pay for other utilities (electricity, water, phone services) by the amount utilised, but usually a flat rate for broadband depending upon the bandwidth. I have earlier compared this to paying for water based on the diameter of the pipe, instead of liters consumed. The following letter by a reader to USA Today highlights similar concerns – may be in another context. WHY SHOULD BROADBAND BE FREE? James Lakely – Chicago Federal Communications Commission Chairman Kevin Martin’s reference to the phone industry exposes the weakness of his argument to provide free broadband access in the USA.
Even Udurawana, the local version of the legendary not-so-bright Sardarji, will not let it go without having a hearty laugh at the expense of new CDMA laws of Telecommunications Regulatory Commission (TRC). Imposed few weeks back, they specify CDMA phones can be used only at the address it is issued to. (CDMA technology is used in Sri Lanka for fixed wireless and not mobile) How on earth a CDMA phone can be restricted to one address, asks Udurawana, when you sometimes even have to climb to your neighbour’s wall to receive signals. We hope the Sri Lanka rural users who have faced similar problems would readily empathise. (We hear once the mother-in-law of a former Director General of TRC too had to take her phone to a particular spot at a paddy field to catch signals) Mr.
Comcast Corp. filed suit against the Federal Communications Commission Thursday to overturn the agency’s decision to sanction the company for blocking certain Internet traffic. The lawsuit involves a 3-2 decision the FCC handed down in early August that found Comcast’s practices violated so-called net-neutrality principles, and ordered the company to provide more details of its network-management policies within 30 days. The FCC also ordered Comcast to stop by the end of the year blocking traffic related to specific applications, such as file-sharing software that allows users to swap videos. It was the first time the FCC had found a company in violation of the commission’s net-neutrality principles, which lay out consumers’ Internet rights.
The debate over Broadband Wireless Access (BWA) spectrum auctions and internet telephony comes at a time when international organizations and analysts are painting a starkly contrasting picture of the Indian telecom and IT sectors. Recent International Telecommunication Union (ITU) data reveals that the success of India’s telecom revolution is restricted to mobile voice with very little to showcase in fixed line and internet access, or high-speed broadband. For a country that is the global IT and ITeS capital or the world’s back office, its own internet penetration remains one of the lowest in the world. Forecasts are equally uninspiring, projecting high-speed internet access to remain abysmal till 2012. Internet broadband penetration will limp along to eventually reach a measly 3.
While some Asia-Pacific economies are world leaders in information and communication technologies (ICT) where broadband access is ultra-high speed, affordable and close to ubiquitous, in most of the region’s poorer countries Internet access remains limited and predominantly low-speed. This is what ITU’s Telecommunication/ICT Indicators Report for the Asia-Pacific region 2008 says. It was released at ITU TELECOM ASIA 2008, Bangkok, Thailand yesterday (Sept 2, 2008). The Report finds evidence that ICTs and broadband uptake foster growth and development, but the question remains as to the optimal speed that should be targeted in view of limited resources. The area in which the region really stands out is the uptake of advanced Internet technologies, especially broadband Internet access.
This colloquium was led by Dilani Hirimuthugodage and Indika Siriwardena from the Institute of Policy Studies, Sri Lanka. Milestones in the telecom regulatory landscape between 1980 and2006: Bifurcation of post and telecommunication in 1980 Corporatization of the incumbent in 1991 Issued licences for two WLL operators (Suntel and Lanka Bell) Partial privatization of the incumbent in 1997 Incumbent’s monopoly on international telephony ended in 2003 CDMA licences were issued in 2005 1st commercial 3G mobile licence issued in 2006 One of the more significant changes during 2006-07 was the introduction of the tax: a 10% tax on call charges was introduced instead of 2.5% and 50 rupee fixed monthly tax removed. At present,  Sri Lanka has 4 fixed access telephone operators, 5 cellular mobile operators, 6 data communications (facility – based)  and 19 data communications (non-facility based) and ISPs. Findings ‘Quality of service’ shows higher scores in fixed, mobile and broadband sectors.
Barack Obama stands for Net Neutrality while John McCain sternly opposes. Internet should be open space, says Obama, for anyone to use any application of his/her choice without discrimination. That is like saying the roads are free for anyone to drive any vehicle they like at any time. It sounds good in theory. However, in practice it is a different story.

Identifying the bottom of the pyramid

Posted on August 31, 2008  /  0 Comments

As researchers with a focus on government and private-sector actions that benefit the bottom of the pyramid, LIRNEasia has an interest in understanding poverty and who is poor.   This summary report by the Economist gives a good overview of World Bank and ADB research on the subject.  Of course, those interested are recommended to go to the sources for the real thing. BTW, for those who wonder why we keep saying that South Asia is the home to the world’s largest concentration of poor people, the answer is that the World Bank states that 595.5 million people live on below USD 1.
One key difference between natural hazards happening in Asian countries and similar hits in the West is the possibilities of them turning to disasters. While in west the timely issue of early warnings and evaluations lead to the reduction in casualties, many Asian countries still suffer from the lack of such arrangements. We hope the early warning in New Orleans will reduce the damage by Hurricane Gustav – a luxury unthinkable by the vast majority of the people of Burma and rural China. This is from BBC: The mayor of New Orleans has issued a mandatory evacuation order for the entire city, as Hurricane Gustav bears down on the US Gulf Coast. Ray Nagin said residents of the city’s West Bank should begin moving out at 0800 (1300 GMT) on Sunday, with the East Bank leaving at midday (1700 GMT).
Babar Bhatti, who maintains an interesting website on Pakistani telecom developments, has written an interesting post where he calls for simpler tariff plans. Having seen the graphical presentation of Dialog Telekom’s tariff plans in their nice new publication, 077, I am convinced that there is a need for simplification in Sri Lanka too.  Surprisingly, I cannot find the publication, or the graphical presentation of the tariff plans, on the Dialog website. Informed consumers exercising consumer sovereignty are the basis of competitive marketplaces.  If they cannot figure out the prices they are paying, how can they be sovereign?
One of the key debates on broadband is between those who believe in “all you can eat” service packages and pricing and those who do not.  Our research so far indicates that broadband can only be provided to the Bottom of the Pyramid using the same kind of business plans that were effective in providing mobile service to the BOP, that is, not all-you-can eat. Comcast, a leading US ISP, has just announced caps on downloads.  If this is the future for rich country users, can there be any doubt about what the future for BOP users in poor countries?
Ten years ago, pretty much all the traffic went through the US Internet backbone. Today, claims are being made that only 25 per cent of traffic is routed through the US system. This may require changes in LIRNEasia’s (and Singapore’s) efforts to improve broadband quality of service experience through benchmark regulation or otherwise, using as one of the measures, Round Trip Time to the Internet cloud, defined as first point of landing in the US.  An alternative will not be easy to come by, but we have faith in the wisdom of the many.   Please contribute.

Sri Lanka to have a Telecom Icon

Posted on August 29, 2008  /  2 Comments

Sri Lanka will build a state-sponsored 250 metre tall common broadcast tower for television, radio and telecom firms, information minister Anura Yapa said. “The building of towers in a haphazard manner cannot be allowed,” Minister Yapa said. “The tower will be a national icon, like those in China, Kuala Lampur (image) and Tehran.” Sri Lanka’s telecom regulator Priyantha Kariapperuma said the tower will be located in Peliyagoda in the greater Colombo area and will have a public observation gallery and a restaurant. The tower will be built at state cost, but a private investor may be attracted later, he said.
It is the same story everywhere. Broadband prices are falling, so the early adopters pay more than newbies – unless they switch fast. To make the matters worse, operators have started selling the same packages with new prices – in the same manner an Airline bringing ticket prices down at the eleventh hour to fill the seats. This is the tirade of one user. UK customers are paying 70% more than they need to for their broadband connections despite the credit crunch.
Chairman Pakistan Telecommunication Authority (PTA) Dr. Muhammad Yaseen has said that data usage is increasing in Pakistan and proliferation of broadband services will help establish Information Society. He was talking in a seminar on The Future of Mobile Communications in Pakistan. Chairman PTA said that for mobile phone industry future direction could be value addition and innovation in services including mobile commerce, video streaming, and high speed mobile internet. He said presently broadband costs are high in the country but broadband usage was showing growth in the recent quarter.
Bangladesh and India are set to compete for the same set of telecom investors with Bangladesh announcing auctions for Broadband Wireless Access (BWA) spectrum close on the heels of India unveiling its BWA policy. However, while Bangladesh’s policy is designed to attract fresh competition by keeping its existing operators and their shareholders (foreign and Bangladeshi) out of the spectrum bids, India has opted for a different route. India has restricted BWA bidding to only those who either hold an ISP or a unified access service (UAS) licence, thereby either forcing companies to acquire ISP/UAS licenses before the bidding or keeping away new entrants who are unable to acquire such licences due to price or time constraints. “Other contrasts are equally striking and show up uncomfortable flaws with India’s auction guidelines,” says a telecom analyst. While India’s BWA guidelines are just four pages, Bangladesh’s is a 57-page invitation for applications for grant of licence.