When Bill Melody was appearing as an expert witness in the AT&T case back in the 1980s, he used to be assailed about economies of scale that AT&T supposedly enjoyed, which made them per se more efficient than any of the challengers. His answer was not that they did not exist, but that they were overridden by diseconomies of coordination. His conclusion is being supported by two scientists from Santa Fe Institute. The discussion of corporations comes at the end of a fascinating article on the laws governing cities in the NYT. This raises the obvious question: Why are corporations so fleeting?
Bangladesh is considering the issuance of 3G frequencies (they should get the license renewal mess sorted; but that is another story). The question of establishing a single 3G network that multiple operators would jointly own and use has been floated by an important stakeholder, the CEO of Banglalink. This is a theoretically good, but practically bad, idea. So LIRNEasia explained why in Bangladesh’s premier English language daily, the Daily Star: The operation of multiple 3G networks, owned and operated by different limited-liability companies, may be sub-optimal if seen solely from resource optimisation or planning perspective. But it is actually the most efficacious for the ground conditions in Bangladesh.
LIRNEasia is an ideas shop. We live and die by the value of good ideas well communicated. We try to help the organizations that constitute our audience (governments, regulatory agencies, service suppliers and manufacturers in the ICT space) to think new thoughts and implement them in ways that will benefit our people, those at the BOP in emerging Asia. We continually think about how we can do our job better, how we can reinvent ourselves. In this light the long article in the NY Times Magazine seems very relevant.
LIRNEasia CEO, Rohan Samarajiva, was quoted recently in an article published by TIME on India’s widening telecom scandal. A recent report published by India’s top auditor highlights irregularities in the government allocation of 2G spectrum to private companies. Rohan Samarajiva, an expert on telecom policy in South Asia, has studied the mobile-phone market in Bangladesh. There, too, investigations revealed hundreds of cases of spectrum sold and resold in “non-transparent” transactions. Nevertheless, Bangladesh has nearly 100% phone coverage and some of the lowest prices in the world.
For a long time, we were the voice in the wilderness. But now the regulator is on the job. If the promised results materialize, we can move on to something else: “Three months ago, most operators were provided services 70% less than the speed rate advertised in the package”, TRC Director General Anusha Palpita said. The speed-up move came after the TRC carried out an evaluation of the quality of service including speeds of fixed broadband services – ADSL and WiMAX. Mr.
In a response given to the respected Hindu newspaper in connection with a story on LIRNEasia’s broadband QoSE regulation results, TRAI has indicated some changes in the broadband quality regulatory regime, starting as early as next month: S.K. Gupta, Advisor (CN & IT), TRAI, has said the definition of broadband will be modified to include only those services that offer access speeds of 512 kbps from January 1, 2011. “This will be further upgraded to 2 Mbps network speeds from January 1, 2015. A comprehensive regulation on Quality of Service is also in the pipeline.
Tim Wu, the originator of the net neutrality concept has written a book about the big picture of information industries. An excerpt from the review by the New York Times Economics Editor: AT&T is the star of Wu’s book, an intellectually ambitious history of modern communications. The organizing principle — only rarely overdrawn — is what Wu, a professor at Columbia Law School, calls “the cycle.” “History shows a typical progression of information technologies,” he writes, “from somebody’s hobby to somebody’s industry; from jury-rigged contraption to slick production marvel; from a freely accessible channel to one strictly controlled by a single corporation or cartel — from open to closed system.” Eventually, entrepreneurs or regulators smash apart the closed system, and the cycle begins anew.
LIRNEasia Mobile 2.0 research on potential use of mobile money services among the BOP in emerging Asia has been published in the latest edition of ITID (Vol. 6, Issue 4). The paper entitled, “M-money for the BOP in the Philippines” is authored by Erwin Alampay, LIRNEasia Research Fellow, and Gemma Bala. Abstract This paper explores the reach and use of m-money among the bottom of the pyramid (BoP) in the Philippines using survey data from LIRNEasia’s 2008 Mobile 2.
Whoever owns the last mile, calls the shot in telecoms. The operators were caught off-guard once the tsunami of applications (apps) hit their fortresses. The telecoms world was shaken by the tectonic shift caused by Apple and Google. United States of America happens to be the epicenter. Now the European mobile behemoths are asking for payments from the “culprits” of the other side of the Atlantic.
I am sitting in China, writing this. It may be a case of observer bias, but I find the Sri Lankan young people I deal with more nimble in thinking and in command of English than their counterparts here. Yet, according to a ranking by IBM as reported by LBO, China has made a dramatic jump from 13th position in 2009 to 5th position in 2010, while Sri Lanka is holding steady at 12th place. Is this a cause for self-congratulation or self-examination? Is the glass half-full or half-empty?
Governments are subsidizing millions and billions of dollars for the deployment of fiber up to the home, aka, FTTH. Such subsidies are based on the premise that fiber to the home brings substantial externalities. But Charles Kenny and his brother Robert Kenny claim that basic broadband has contributed significantly to economic growth is decidedly mixed, and points to low returns for (expensive) superfast upgrades. They think fiber to the businesses and government outfits make more sense than FTTH. The Kenny brothers accuse that the benefits of fiber have been considerably overstated while the other infrastructure remains ignored.
More the societies get connected, more the whistle-blowers like Wikileaks will become unimportant. Because the digital mavericks will be powered by the smart devices and ubiquitous networks to share all forms of information. Millions of Assanges will pop up here and there. Call them Citizen Journalists or whatever. The walls will keep collapsing around the gardens.
It is needless to explore the benefits of competition. But how far a sector can withstand competition? Or how much competition is good for competitiveness? John Kay said, In telecommunications your choice for 100 years was to take what the local telephone provider offered or to leave it. But consumers now have a bewildering variety of choice.
We have been talking about an alternative path to the Internet for the BOP in emerging economies. We said this path would be through the mobile phone and talked about how it was converging with the conventional computer, through smartphone and netbooks that would percolate down to the BOP through second-hand markets. But now people beginning to talk about this happening to TOP markets in rich countries as well. Below is Item 7 in a list entitled the ten businesses the smartphone has destroyed: There are plenty of studies that insist that smartphones will begin to replace the PC as the common vehicle for accessing the Internet. Analyst firm Informa Telecoms & Media projects that smartphone traffic will increase 700% over the next five years.
It appears that the net neutrality debate is leaving the ideological domain and finding a practical place in the middle. In a speech he plans to give Wednesday in Washington, Julius Genachowski, the F.C.C. chairman, will outline a framework for broadband Internet service that forbids both wired and wireless Internet service providers from blocking lawful content.
Today at the IITCOE workshop Ashok Jhunjhunwala made a strong argument that the Indian government must hive off the backhaul networks of BSNL and have them be managed by a separate company. Interestingly Masayoshi Son, the Japanese entrepreneur has made more or less the same argument in Japan. Great minds think alike. The government is expected shortly to unveil a scheme to loop the country with fibre-optic lines that will support internet access at up to 100 megabytes a second, ten times the speed of the technology being replaced. Mr Son argues that to guarantee fair access to this network—and thus the most efficient use of it—it should be run by an infrastructure firm hived off from NTT, owned jointly by all the telecoms operators.