Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful...

Policy and Regulatory Challenges – Technology Provider’s View

Apr 10, 2023

Challenges for Successful Implementation of ICT Projects


Policy and Regulatory Challenges

- Technology Provider’s View -

Apr 10, 2023


Apr 10, 2023


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


Apr 10, 2023


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


Apr 10, 2023


• 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


Apr 10, 2023


• 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


Apr 10, 2023


• 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


Apr 10, 2023


• 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


Apr 10, 2023


• 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


Apr 10, 2023


Success Story

This approach has resulted in the world’s cheapest wireless access and explosive

teledensity growth in India


Apr 10, 2023


Thank You!

For additional information and questions, please contact:Sachin Bhatmuley+1 858 658 1224

[email protected]


Apr 10, 2023


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)

Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful...

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