India Archives — Page 18 of 43 — LIRNEasia


The Grand Trunk Road, which covers a distance of 2,500 km today, says Wikipedia, is one of South Asia’s oldest and longest major roads. For several centuries, it has linked the eastern and western regions of the Indian subcontinent, running from Bengal, across north India, into Peshawar in Pakistan. The road also passes through the only road boarder between the two most powerful South Asian nations, Wagah. Wagah border point, often called the “Berlin wall of Asia”, is a ceremonial border where each evening there is a retreat ceremony called ‘lowering of the flags’. At that time there is an energetic parade by the Border Security Force (BSF) of India and the Pakistan Rangers soldiers.
A write-up by an Indian journalist who attended the recent Islamabad Expert Forum summarizes the reasons for it working better than the gargantuan Indian USF: lower rate; efficient disbursement mechanism: Interestingly, while in India, a telecom operator has to contribute 5 per cent of its annual revenue to the USO Funds, Pakistan charges much less at 1.5 per cent. In India, the funds go to the national budget and the Department of Telecommunications has to make projects to source them, in Pakistan a separate company has been created to utilise the funds. The journalist also points to a new twist whereby renewable energy has been made mandatory for all base stations supported by the Fund. In a bold move, the Pakistan Telecom Authority, the telecom Regulator has made it mandatory that all bases stations being set up with support from the USF should be ‘Green Sites’ or renewable energy powered, especially solar and wind as the case may be.

Telecom trumps borders, not

Posted on May 5, 2010  /  3 Comments

Rohan Samarajiva is in Pakistan. Near the border, once marked by Mountbatten’s sharp knife, his cell phone links him to India. Airlines do not understand this proximity. Indian participants, to Expert Forum Meeting jointly organized by LIRNEasia and Pakistan Regulator, first travel led west (3 hours to Dubai) and then east (another 3 hours) to cover 678 km between Islamabad and Delhi – a one hour flight if existed. In the backdrop of Thimpu SAARC summit Rohan asks the same question he has been asking for sometime.
In an attempt to get attention in a hard market, the UN University has contrasted mobile penetration in India with toilet penetration in India. If telephones had been left to government, unlikely this contrast could have been drawn. So the conclusion? Get multiple parties to participate in building toilets. Far more people in India have access to a mobile phone than to a toilet, according to a UN study on how to improve sanitation levels globally.
Prof. Rohan Samarajiva, CEO of LIRNEasia, was invited to speak a the 18th Convergence India, held from 23 – 25 March 2010 in New Delhi, India. His presentation entitled, “South Asia: Challenges of the Budget Telecom Network Model” presents data on rising mobile ownership levels from the Teleuse@BOP3 study, as evidence of success of South Asia’s Budget Telecom Network Model which has allowed South Asian telcos since 2005‐06 to make excellent (if highly volatile) returns by serving “long‐tail” markets of poor people by for example, investing in the “prepaid” market (lowering transaction costs) and focusing on revenue-yielding minutes rather than ARPUs. A full webcast of the event can be viewed here. View the full presentation here.
The Canadian Broadcasting Corporation’s show – The National “Lifelines” – did a news program on the Real-Time Biosurveillance Program carried out in India and Sri Lanka; watch the clip here.

Population as a growth engine

Posted on March 10, 2010  /  0 Comments

The snap shot age distribution in a population can take three basic shapes. Pyramid is the most common in animal world where reaching the ripe old age is rare. Advances in medicine and economy have changed that in human societies. The pot shape is the best (till is lasts) as the workforce is larger with respect to the number of dependents (old and children). An urn, with a wider top and a bottom is the worst.
Rohan Samarajiva, will deliver one of two invited lead talks at ICTs and Development: An International Workshop for Theory, Practice and Policy, to be held in New Delhi, India, 11 – 12 March 2010. Titled, “How the developing world may participate in the global “Internet Economy”, his presentation examines the potential mobile telephony has in enabling low-income earners first-time access to the Internet. He argues that a teleco business  model similar to the Budget Telecom Network Model arguably responsible for dramatic reductions in mobile tariffs, could be similarly applied to the case of mobile internet. View the full presentation here. Other notable speakers at the event include Dr.
Findings from LIRNEasia’s Mobile 2.0 study on m-government services has been published in India’s Economic Times, Ahmedabad.  The research examines the potential for the supply of government services over the mobile through a case study of such a  system developed by Mumbai-based Zero Mass Foundation, that has proved popular in the country. “This is one of the highly effective tools for achieving financial inclusion. But the system is suffering because of the lack of interest among government agencies.
In the end, it comes down to the Budget Telecom Network Model. The recent Bharti 10.7 billion USD offer for Zain has depressed share prices and generated a big debate. But it really boils down to this: The trick for Bharti, which pioneered low-cost telecoms in India, will be to bring down Zain’s high cost base and win subscribers, say analysts — and to get subscribers to talk more using lower tariffs. Bharti is famous for its so-called “minutes factory” business plan — the low-cost, high-volume model that has made it India’s leading mobile company.
Voice and Data, the leading telecom monthly, has done a good job unpacking the issues within India’s unholy spectrum mess. LIRNEasia’s Payal Malik is one of the participants in the debate. In case licenses are not de-linked, there will be rollout obligations. Some analysts suggest penalties to be enforced, like taking away extra/unused bandwith for spectrum that is not used optimally. According to Kunal Bajaj, MD, BDA Connect, “Open auction will remove all these problems.
I guess that means newspapers in hardcopy. Because many who read the news on the web, actually read news that originates in documents prepared by journalists, like the one below. But still, this is a significant shift. With more people at the bottom of the pyramid in Pakistan, India and Bangladesh owning mobile phones than radios, one wonders who the Internet will beat in our part of of the world: just newspapers or newspapers and radio? The Internet has become the third most popular news platform for American adults, trailing only local and national television stations, according to a survey released on Monday.
We now have evidence to support the claim that those at the “Bottom of the Pyramid” (and therefore, the majority of people in the developing world) are likely to enter the world of knowledge and convenience promised by the Internet through the path opened by the rapidly increasing capabilities of mobile networks and user devices. Mobile 2.0 describes the use of mobiles for “more‐than‐voice”. Mobiles are increasingly becoming payment devices which can also send/process/receive voice, text and images; it is envisaged that in the next few years, they will also be fully capable of information‐retrieval and publishing functions, normally associated with the Internet. Mobile 2.
Despite the fact that not all the frequencies have been cleared, India has announced the 3G auctions will be held in April. The original date was January 2009. Perhaps the driving force was the government’s need for money, rather than the conditions being right. India’s long-delayed auction of third-generation (3G) mobile phone bandwidth will be held on April 9, the government announced Wednesday. Applications from bidders for the multi-billion-dollar auction, whose proceeds are earmarked to help plug a gaping fiscal deficit, will be accepted until March 19, a government notice said.

On the benefits of services trade

Posted on February 17, 2010  /  0 Comments

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.