The US policymakers overseeing universal service fund (USF) have recommended for the first time that it be used specifically to help offset costs of deploying broadband Internet services in rural and poor parts of the country. The board said the FCC should limit the USF’s largest part to $4.5 billion and also recommended a more specific limit on subsidies for wireless service in those areas. The $4.5 billion figure represents the current size of the rural subsidies.
Miguel Helft October 11, 2007, New York Times For more than two years, a large group of engineers at Google have been working in secret on a mobile-phone project. As word of their efforts has trickled out, expectations in the tech world for what has been called the Google phone, or GPhone, have risen, the way they do for Apple loyalists before a speech by Steve Jobs. But the GPhone is not likely to be the second coming of the iPhone and Google’s goals are very different from Apple’s. Google wants to extend its dominance of online advertising to the mobile internet, a small market today but one that is expected to grow rapidly. It hopes to persuade wireless carriers and mobile-phone makers to offer phones based on its software, according to people briefed on the project.
A partial victory for those making the case for open wireless networks (Carterfone 2). F.C.C. Hands Google a Partial Victory – New York Times The Federal Communications Commission moved cautiously Tuesday toward creating a more open national wireless broadband network, handing a partial victory to Google, which was pushing for more competition in cellphone services.
True to form, Google is proposing a radical rethink of the entire basis of the wireless industry. And it is putting real money behind its ideas. All that is in the way seems to be the FCC. Google Pushes for Rules to Aid Wireless Plans – New York Times “When you go to Best Buy to buy a TV, they don’t ask whether you have cable or satellite,” said Blair Levin, a former F.C.
Google has proposed to the FCC that instead of getting into long-term contracts for allocating spectrum, companies buying spectrum should be free to resell the spectrum in real-time auctions. This would probably not involve human beings in protracted auction negotiations but rather negotiations between devices in real-time. Since FCC’s auction is done at the wholesale level it would probably involve companies reselling spectrum that they won to consumers on real-time basis. NYT: “The driving reason we’re doing this is that there are not enough broadband options for consumers,” said Adam Kovacevich, a spokesman for Google’s policy office in Washington. “In general, it’s the belief of a lot of people in the company that spectrum is allocated in an inefficient manner.
A new study filed with the USA’s telecoms regulator, the FCC, reports that the regulator’s use of auctions for assigning spectrum licenses could be subject to anti-competitive behavior by incumbent carriers. The announcement about the new study came from M2Z, a company which is seeking to build its own wireless network. Read more.
Friend of LIRNEasia, Sherille Ismail (Senior Counsel, Office of Strategic Planning and Policy Analysis of the FCC) has written an excellent review of theWorld Bank’s “Information and Communications for Development 2006: Global Trends and Policies,” concluding with: “The telecommunications sector has performed in a spectacular fashion over the past two decades, bringing modern technologies at affordable prices to consumers throughout the world. The future holds the promise of even greater gains, as ICT ripples through economies, increasing productivity and generating efficiencies. To achieve the desired results, governments, scholars, investors, and the international community must successfully negotiate many challenges. Not the least of these is the particular challenge of dealing with issues in developing countries, where “there are often fundamental differences between what is proposed by technological visionaries, many of whom have never seen a village, and what is actually needed by end users, many of whom have never used a telephone.” This book is filled with reliable data, thoughtful analysis, and time-tested policy prescriptions.
Former Chair of the FCC, Bill Kennard, calls for a broad national debate on how get more broadband connections, especially in rural America. One of his two recommendations is for the adoption of “reverse auctions” or least-cost subsidy auctions for the disbursement of US universal service funds. Another case of policy innovations in the developing world seeping back into the developed. See LIRNEasia’s extensive work on this subject, based on the Indian universal service fund and the least-cost subsidy auction in Nepal. Spreading the Broadband Revolution – New York Times “Any serious discussion of the future of the Internet should start with a basic fact: broadband is transforming every facet of communications, from entertainment and telephone services to delivery of vital services like health care.
According to this article that appeared today in India’s Business Standard, TRAI seems to be considering using a base price + beauty pagent mechanism to award 5 licenses (of 5MHz each) for companies to introduce 3G services. The prduence of using beauty pagents needs to be questioned. The failures of 3G auctions in Europe in 2000 has been mentioned as one of the reasons for opting for a beauty pagent. However the failures of those auctions stemmed from operators’ over-estimating the potential of a new and untested service. It is unlikely that operators would make the same mistake again – my argument being once-bitten, twice shy.
Bridging the digital divide is important. It may not be as important as ensuring safe water for all, or adequate healthcare, in terms of meriting investment of scarce public resources, but it is definitely important enough to merit concerted action to remove the artificial barriers to private supply. One of the best ways this can be done is by improving the knowledge that is brought to bear on the process. The optimal way to achieve this is to create an environment within which international best practices are adapted to local circumstances by in-situ policy intellectuals. Some of these local experts could be in regulatory agencies and in government; but the optimal results will be achieved through participatory processes where all stakeholders, including the consumers are represented by knowledgeable experts.
June 21 (Bloomberg) — Vonage Holdings Corp. and other providers of Internet-based telephone service must help subsidize services in rural and low-income areas, U.S. regulators said. A rule adopted today by the Federal Communications Commission requires providers of Voice over Internet Protocol, or VoIP, service to contribute 10.
Chanuka Wattegama presents findings from a benchmarking study of regulatory websites. The objective of this study is to do a performance evaluation of the web sites of the Telecommunication National Regulatory Authorities (NRAs) of selected countries in the Asian Pacific region and benchmark their performance as e-government service providers. Slides Points of Discussion: What is the role of a website in effectiveness of an NRA? CW – serves as a window to stakeholders RS – should have website as central organizing factor. organize yourself around putting everything up on the website.
Should this be added to the debate? 65% of homes have electricity; more than the 25% with some form of telecom access. By TOM McNICHOL HIGH-speed Internet access usually comes to homes through one of two wires: a telephone line for D.S.L.