policy and regulatory challenges – technology providers view february 14 challenges for successful...
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Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
Challenges for Successful Implementation of ICT Projects
Policy and Regulatory Challenges
- Technology Provider’s View -
Apr 10, 2023
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
Developing Nations and Telecoms• Better Telecommunications Higher GDP
• Typically 1 Fixed line PTT and 2 Mobile (GSM) Carriers– Wireline deployment limited to Metro areas Long waiting lists
– Low GSM penetration – typically due to higher costs
– Duopolistic price setting further limits penetration
• Regulators Seek to Improve Penetration, and Maximize Existing Assets– Additional licenses intended to spur competition increased penetration
– Utilization of existing assets drives GSM-specific tenders
– 3rd, 4th, 5th… Licensees have a very challenging business case:• Incumbents have captured high-ARPU subs• New licensee(s) forced to target lower-ARPU users• If technology specified (say, GSM) Little room to improve costs
• Break-Even Monthly ARPUs: GSM - ~$12; CDMA - $7
Need to encourage technology which offers lower costs, and can thereby support lower ARPUs Increased Penetration
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
Regulatory Challenges in Improving Telecoms
• Ensuring Technology Neutrality
• Responsibility for Efficient Use of Radio Spectrum
• Promoting Consolidation with Existing Telecoms Infrastructure
• Defining Fixed Wireless vs. Limited Mobility
• Enabling Convergence
Role of Regulators – Very Crucial
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
• Spectrum availability dictates technology choice– Appropriate spectrum enables innovative/different technology
selection
– Spectrum efficiency and 3G data benefits should be leveraged
– Economies of scale should be leveraged
• No Specification of Technology
– Let the Best Business Case Win
– Limited Specification of Spectrum Allocation Plans
Technology Neutrality
Choice of Technologies Enables Cost-Effective Telecoms Access
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
• Consider Spectral Efficiency Requirements– No. of subscribers per 5 MHz
• Reasonable Licensing Fee– License Fees on per MHz Basis in Blocks of 5 or 10 MHz– Fees independent of technology
• Re-Examination of Spectrum Usage– Explore Key spectrum blocks (e.g., 800 MHz, 450 MHz) for
possible reallocation/sharing based on actual use; e.g. ITU Region-1 – 800 MHz for broadcasting
– Lower end (450/800 MHz vs. 2000 MHz and higher) for wireless
Efficient Use of Radio Spectrum
Efficient Spectrum Usage Enables Cost-Effective Telecoms Access
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
• Require Teaming Between Existing and New Carriers
– For common use of established network infrastructure
– Interconnect fee structure to encourage new entrant(s)
– Require new carriers to have technological solution compatible with incumbents
Consolidation with Existing Infrastructure
GSM1x - Technology for GSM CDMA Interoperability
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
• Terminal form factor not important (well maybe a little!)– It’s ok to specify terminal form factor (FWT vs. Handheld), however :
• Mobile handsets cost much less than FWTs and provide better user experience (users will make the FWTs mobile anyway!)
• Some applications available only on mobile terminals and not FWTs
• WLL and Handoff are NOT Mutually Exclusive– Retaining soft-handoff improves coverage, capacity, quality and data rates
– Multi-path (signal received from multiple sites) improves voice quality and system capacity
– Cell breathing is not a concern more effective network planning and optimization
• Avoid “Watch-Dog” Role for Regulator
Defining Fixed vs. Limited Mobility
Certain geographical (city or region limit) or numbering plan based restrictions may be considered for WLL/Limited Mobility
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
• Convergence Happening at the Device Level– Licensing policy needs to address this
– Allow Carriers to Offer Fixed (e.g., WLL), Mobile, Data, Broadcast, etc. Services
• Fixed Limited Mobility Full Mobility Convergence– e.g. India’s “Unified License” regime
• Promote Carriers in Providing Different Tiering of Service Plans
• Converged licenses Possible at Network Facility, Services, ISP, Content layers
Convergence Licensing
Convergence is Future
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
Success Story
This approach has resulted in the world’s cheapest wireless access and explosive
teledensity growth in India
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
Thank You!
For additional information and questions, please contact:Sachin Bhatmuley+1 858 658 1224
Policy and Regulatory Challenges – Technology Provider’s View
Apr 10, 2023
Challenges for Successful Implementation of ICT Projects
Example of Wireless Market Segmentation: Sub-Saharan AfricaMobile (GSM) Wireless Services WLL (CDMA) Wireless Services
CountryPopu-
lation (M)GDP per
Capita (1)Current Subs (K)
Current Penetration
Potential Pentration
(2)
New Penetration Opportunity
New Subs. Opportunity
(K)Current Subs (K)
Current Penetration
Potential Pentration
(3)
New Penetration Opportunity
New Subs. Opportunity
(K)
Nigeria 131.6 $838 1,570 1.19% 6.60% 5.41% 7,117 106 0.08% 4.89% 4.81% 6,333
South Africa 43.6 $9,722 13,398 30.73% 34.15% 3.42% 1,492 213 0.49% 4.89% 4.40% 1,920
DR of Congo 56.1 $600 537 0.96% 2.85% 1.89% 1,060 3 0.01% 4.89% 4.89% 2,742
Tanzania 37.7 $610 693 1.84% 3.03% 1.19% 450 0 0.00% 4.89% 4.89% 1,845
Congo 3 $870 220 7.33% 7.02% -0.31% -9 0 0.00% 4.89% 4.89% 147
Ivory Coast 17 $1,550 967 5.69% 13.51% 7.83% 1,330 0 0.00% 4.89% 4.89% 832
Angola 10.6 $1,330 159 1.50% 11.79% 10.29% 1,091 55 0.52% 4.89% 4.37% 464
Kenya 31.2 $1,010 1,224 3.92% 8.70% 4.78% 1,490 0 0.00% 4.89% 4.89% 1,527
Zambia 10 $887 133 1.33% 7.24% 5.91% 591 0 0.00% 4.89% 4.89% 489
Mozambique 19.7 $981 243 1.23% 8.37% 7.14% 1,406 0 0.00% 4.89% 4.89% 964
Cameroon 16.4 $1,785 701 4.27% 15.10% 10.83% 1,775 0 0.00% 4.89% 4.89% 802
Ethiopia 68.6 $749 65 0.09% 5.34% 5.24% 3,598 0 0.00% 4.89% 4.89% 3,357
Uganda 25.1 $1,260 493 1.96% 11.19% 9.22% 2,314 0 0.00% 4.89% 4.89% 1,228
total: 23,705 total: 22,649
(1): PPP adjusted(2): Assuming $17 monthly ARPU and Max. Penetration = -0.0928 - 0.1124 ln [Annual ARPU/per Capita GDP]
(First Boston/ Credit Suisse Research Report 5July02)(3): Assuming $11 monthly ARPU and Max. Penetration = -0.0928 - 0.1124 ln [Annual ARPU/per Capita GDP] - Mobile Penetration
(First Boston/ Credit Suisse Research Report 5July02)