I was asked about charging different amounts for spectrum when I was in Dhaka recently and I said it was like pricing jet fuel differently for competing airlines; it did not make any sense. Now we have the full argument laid out. It’s very peculiar. On what basis was this utilization factor calculated? I asked Dr Harsha de Silva who prepared the comments on the consultation paper; he said it was fully opaque.
I was asked today by a reporter whether the Sri Lanka market could support another entrant. I answered, but wasn’t sure it would be carried accurately. Therefore, here is the answer. The market should determine the number of suppliers in a market, not government officials. This requires two things: (1) an orderly policy on market exit, whereby, for example, suppliers have clear rules on what can be done about the assigned spectrum, existing customers, and so on; and (2) transparent license and renewal procedures that allow for as many licenses to be issued as possible within the constraints of spectrum.
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.
The US has done it. When will Asian spectrum managers start? First step is to move TV to digital. Where are the road maps? The Federal Communications Commission approved a proposal on Thursday that would open vast amounts of unused broadcast television airwaves for high-speed wireless broadband networks and other unlicensed applications.
We do not normally use the US telecom policy as an example. But this is definitely something to be emulated. The future of Internet access in Asia is wireless. It’s high time governments started on the hard work of refarming frequencies to meet the demand. The Obama administration is seeking to nearly double the wireless communications spectrum available for commercial use over the next 10 years, an effort that could greatly enhance the ability of consumers to send and receive video and data with smartphones and other hand-held devices.
Spectrum allocation and pricing in Pakistan and India have differed considerably, one following market-based price discovery mechanisms through auctions, and the other, arbitrary pricing. Two articles, one by Mr. Muhammad Aslam Hayat, a regulatory consultant at Grameenphone, Bangladesh, and the other, by Payal Malik, LIRNEasia Senior Research Fellow, examines the past and present spectrum policy in Pakistan and India, respectively. Hayat writes: Pakistan introduced mobile cellular telephony early, in 1990. Although there was no clear spectrum management policy or roadmap available prior to 2004, the issuance of four mobile cellular licenses and the assignment of spectrum to those licensees were remarkably well thought out.
Payal Malik, LIRNEasia’s Senior Research Fellow resident in India, has written an op-ed analyzing the spectrum mess in India and proposing that it be cleaned up in tandem with license renewals that are coming up. Pakistan used the opportunities afforded by license renewals to clean up some policy mistakes made prior to 2004. We hope to feature a piece by a person involved in that process shortly, in an Indian newspaper and/or here. However, there is one window of possibility of cleaning this pricing conundrum. Very soon, many licences will be coming up for renewal.
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.
Voice and Data has done a story on spectrum hoarding. Among the main sources is Payal Malik, who did the spectrum/licensing study that was part LIRNEasia’s mobile 2.0 work. According to Payal Malik, sr research fellow, LIRNEasia, “It is difficult to verify whether the spectrum is actually being hoarded, but given the way allocation has taken place, I won’t be surprised if it is. In an effort to eliminate competition, the existing players inflate subscriber numbers.
The Federal Communications Commission, as expected, approved a measure that would make “white space” spectrum available for wireless broadband. White space is industry lingo for the unused airwaves that abut broadcast TV spectrum, providing a buffer zone from stray signals and other inferference. The buffer zone was set up more than 50 years ago when TV was first invented. The FCC’s white-space plan was initially proposed four years ago. More than 25,000 comments — from supporters as well as critics — were submitted.
Large corporations engage in acts of Corporate Social Responsibility. Non-profit organizations like ours sometimes engage in acts of Social Corporate Responsibility. SCR differs from CSR because the beneficiary here is a corporation. We recognize that large corporations can affect the course of events in countries and in some cases, the world. Therefore, when a large corporation with massive resources asked us to help educate their senior managers (especially those in charge of CSR) about key issues in telecom, we agreed.