Good news for the many outside and inside government who struggled to get this done, including our colleagues from Research ICT Africa. The necessary condition for cheap connectivity is about to the fulfilled. Last week, in the Kenyan port of Mombasa, a regional communications revolution belatedly got under way when Kenya’s president, Mwai Kibaki, plugged in the first of three fibre-optic submarine cables due to make landfall in Kenya in the next few months. They should speed up the connection of Burundi, Rwanda, Tanzania and Uganda, as well as bits of Somalia, Ethiopia and Sudan, to the online world. Of course, as the West African cable showed abundantly, and then the landing of SEA-ME-WE 4 in Cox’s Bazar in Bangladesh did, the cable by itself does not make things better.
Until recently, I believed, with Richard Heeks quoted below, that radio is found in more homes (at the BOP or all) than phones and TVs. Survey data from the BOP at three countries that account for the world’s greatest concentration of poor people (Pakistan, India and Bangladesh) tell a story that contradicts the common wisdom. In India, 58% of BOP households have TVs, while only 32% have radios. And some kind of phone in the household? 45%!
Unsatisfied broadband users added flavor to both our Public Seminar and Mobile Broadband QoSE workshop. That included university students prevented access during the residential peak to Wi-Max subscribers experiencing 20% of the promised speed – even with perfect LoS (Line of Sight). Such complaints are common and not limited to Sri Lanka. From Indonesia to India and from Bangladesh to Philippines we find broadband users rant not receiving the promised. We empathise with them, but this hardly an Asian or a developing world issue.
I may be wrong, not having conducted a systematic study of mobile advertising in Sri Lanka, but the impression I have is that while there is plenty of it, it’s all about calling to maintain relationships if not about price/quality aspects. In the short term this works, because this is where people’s heads are. But unless there is more money in people’s pockets, it’s unlikely that the mobile operators will be able to continue to make money in the long run. Voice is getting commodified and profits are declining. People are not taking up more-than-voice services because they do not have money and see mobile as a consumption good.
Last year, several LIRNEasia researchers were pleased to work with Nokia on explaining the reasons behind South Asia (Bangladesh, India, Pakistan and Sri Lanka) being the only countries with a TCO [total cost of ownership] below USD 5/month, when the average for almost 80 countries studied was USD 13.15. According to the latest issue of Nokia’s Expanding Horizons magazine (p. 10), the TCO has come down further, to USD 10.88.
When I ceased to proffer policy advice to the government of Bangladesh some time back, I predicted that the International Long Distance Telecommunication Services Policy would fail, and that bypass would not be eradicated. Seeing a report that massive bypass was reemerging after a quiet period following arrests and confiscations, I wrote an oped in the Daily Star urging a reworking of the policy. Here is an excerpt: In 2007 when the government-appointed committee formulating the international Long Distance Telecommunication Services (ILTDS) Policy sought my advice, I told them that the larger policy objectives would be best served by liberalising international gateways. Liberalisation would enhance the competitiveness of Bangladesh’s export industries and create conditions for the efflorescence of the business process outsourcing (BPO) industry, thereby generating white-collar jobs for educated youth. It would eradicate the cancer of black money generated from the bypass business that was corroding the country’s body politic.
According to analysts who see the world as made up of the US market, yes: Analysts and investors are beginning to ask whether the industry can continue growing. The challenge is both simple and daunting: how to expand when more than half of the six billion people on the planet already have phones. And even in developing countries where there are underserved markets, subscribers spend less on phones and services. Craig Moffett, an industry analyst at Sanford C. Bernstein & Company, is one of the skeptics.
Of the 4,283 bribery payments documented by the investigators, 2,505 (more than half) were made in relation to telecom contracts. Of the total of USD 1,400.7 million disbursed, USD 813.9 million (more than half) were for telecom. However, the complaint documents only three specific cases of large bribes paid in Vietnam, Bangladesh and Nigeria, all to government officials or politicians (including functionaries in government owned telecos).
There are still some who talk about the value of government ownership of telecom operators. In their talk of national interest and local control, rarely is mentioned the word corruption. The recent case in which Siemens pleaded guilty to massive “accounting violations” and paid large fines should be of interest to all who care about transparency. More than the fines, the court record is of great significance. Investigators and the law firm for Siemens amassed massive amounts of data, starting from the five terabytes of information seized from Siemens offices at the start.
Surprises me, the skepticism of some Bangla friends here about their own broadband potential. The rest of the world seems to think otherwise. In the maps above the country sizes indicate their Internet penetration. Bigger the country more widespread is the net. (Found them sometime back in Cyber Geography, but cannot locate the source anymore.
One of the main reasons for collecting and disseminating indicators data at the regional level is currency. By the time the ITU puts out its reports, two years have gone by, and the data are of historical value in these fast-changing times. Despite knowing all this, even we got tripped up this time. In attempting to release mobile and broadband benchmarks at the same time, we delayed the release of the mobile data collected and analyzed in early October and were overtaken by events. In the future, the data will be released without delay.
GSMA, the global trade body representing the mobile industry, called on Bangladesh to issue 3G licences soon to make broadband services more widely available. Licensing the 2100 MHz spectrum band for 3G services would enable Bangladeshi operators to launch mobile broadband services, which their customers can use to gain fast and easy access to the Internet and online services, it said on Wednesday. Bangladesh’s mobile sector has grown rapidly, with user numbers reaching more than 45 million at end-September from 200,000 in 2001, while the country has only 1.32 million fixed-line phones. “Laying new fixed-line connections is expensive and inefficient, so high-speed mobile networks are Bangladesh’s best bet to realise the many social and economic benefits that arise from widespread access to broadband services,” said Ricardo Tavares, senior vice president for public policy at the GSMA.
From 13-15 October, 2008, The United Nations Office for Outer Space Affairs (UNOOSA) and the German Aerospace Center (DLR) with support from the International Strategy for Disaster Reduction – Platform for the Promotion of Early Warning (UNISDR-PPEW) and the United Nations University – Institute for Environment and Human Security (UNU-EHS) organized the Second United Nations International UN-SPIDER Workshop on “Disaster Management and Space Technology – Bridging the Gap” in Bonn, Germany. LIRNEasia researcher, Natasha Udu-gama was one of 134 participants representing 49 countries. The 3-day UN-SPIDER workshop was notable in that it featured a number of German and international presentations on the themes of Session 1: “Space technology in support of risk and disaster management”, Session 2: “Vulnerability and Risk Assessment”, Session 3: “Contributions of space-based technologies to existing and proposed early warning systems”, and Session 4: “Disaster Medicine, Telemedicine and Integrated Vector Management (IVM)”. Natasha Udu-gama presented on “Last Mile Hazard Information Dissemination” during Session 3 highlighting the usage of WorldSpace Addressable Radios for Emergency Alerts (AREA) systems as appropriate for last-mile hazard information dissemination in the LIRNEasia pilot project “Evaluating Last-Mile Hazard Information Dissemination”. The presentation also presented sustainability models for WorldSpace in Bangladesh and Indonesia, while demonstrating […]
An article written by Rohan Samarajiva on Bangladesh’s proposed universal service taxes has been published in The Daily Star, Bangladesh; an excerpt follows. Bangladesh currently has the lowest mobile prices in the world and perhaps the world’s highest mobile growth rate. Pretty good, by any measure. A universal service tax can ruin the business model that has given millions of Bangladesh citizens the opportunity to get connected to an electronic network for the first time and to use telecom services at affordable prices. Instead of solving a problem, it will create one.
At the end of a long day at Telecoms World South Asia in Dhaka, I presented some of the preliminary results of the Broadband QoSE work being done with IIT Madras. I talked about the finding that the bottleneck in Chennai and Colombo appeared to be the international segment and that the first results from the testing done in Dhaka suggested the same applied to Bangladesh, with the ISPs using satellite (versus undersea cable) were suffering very high latencies. The CEO of a Pakistan ISP, Mr Wahaj us Siraj, said that the situation in Pakistan was very different, with plenty of capacity available on the undersea cables and low contention ratios (1:4) being used. Prices of international capacity had come down radically in recent times, he said, and now amount to only around 25 per cent of costs. I responded that we need to start testing in Pakistan soon, because this further illustrates the value of the AshokaTissa methodology, which allows the diagnosis of where problems exist which may vary from location to location.
In December 2005 Bangladesh became connected to the SEA-ME-WE 4 undersea cable, but it took much longer for the people of Bangladesh to actually use the connectivity, because the incumbent government-owned monopoly BTTB had not been able to connect the country’s networks to the landing station in Cox’s Bazar in time. I was invited to speak on this subject at a meeting in Dhaka at which the then Minister and other senior decision makers were present (they had little alternative, there was a hartal going on outside). These comments were written up as an op ed piece and published in the Daily Star that same month. In it I recommended the following: “Without lessening the urgency of reforming Bangladesh’s regulatory framework, the immediate problem can be addressed by structurally separating the cable segment (the share of the SEA-ME-WE 4 cable, the cable station, the fibre connecting the landing station to major population centers, the redundancy channels and related facilities) from BTTB, vesting its ownership in a fully government owned company. To ensure that the new company is truly separate from BTTB and that it is efficiently managed, it is necessary to concession out its management to a competent international operator […]