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January 27, 2012
Nepal: Rural Telecom Development Fund Under-utilised
According to an article
at The
Himalayan Times, the Nepal Telecommunications Authority (NTA) has not maximized
the impact of the Rural Telecom Development Fund (RTDF).
The RTDF, created to promote telecommunications
service in rural areas, has grown by almost one-third in last fiscal year, according
to Purushottam Khanal, director at the NTA. Operators had contributed USD 37.9
million to the Fund by the end of fiscal year 2009-10, Khanal said, adding that
total contributions increased to USD 49.6 million by the end of the last fiscal
year. In 2010-11, Nepal Telecom contributed USD 6.2 million, Ncell USD 1.9
million, UTL USD 333,000, Nepal Satellite USD 8,000 and STM USD 75,000.
Telecom service providers and Internet
Service Providers (ISPs) are required to pay 2% of their annual revenues to the
Fund. Of the country's six telecom service providers, Smart Telecom is the only
one not currently contributing to the fund, and will not have to contribute until
the next fiscal year, according to its license.
Through the District Optical Fibre Network
Programme (DOFNP), the government wants to construct a network providing 256
kbps access to 38 districts and their rural communities by 2014. The NTA has
decided to initiate a fibre optic network expansion project, under the DOFNP,
as a major programme in the current fiscal year. The bidding documents and
other necessary processes have been finalised and forwarded to the ministry for
final approval, but there has been no progress in the first half of the current
fiscal year, complained the authority.
Additional funding for telecommunications
development is coming from the Asian Development Bank (ADB), which has granted
USD 6.0 million for the Voice over Broadband Service project, as part of their
Information and Communication Technology Development Project, which has a total
budget of USD 25.0 million.
Intelecon comment: According to the ITU,
Nepal's mobile penetration rate at the end of 2010 was 30.7%. Fixed broadband
penetration was only 0.4%. Given that 83% of Nepal's population live in rural
areas, a meaningful increase in penetration rates will require the expansion of
networks into rural, unserved areas. The NTA's actions to advance the District
Optical Fibre Network Programme appear to be a positive step towards improving
services for Nepal's rural populace.
January 25, 2012
South Africa: Department of Communications pushes rural broadband
According to an ITWeb
article, providing connectivity to low-income, rural communities is a priority
for the Department of Communications (DOC).
Minister Dina Pule said the DOC has
identified 161 priority areas requiring improved connectivity. Pule also reiterated
the department's commitment to work with operators to deliver 100% broadband
penetration by 2020.
"We intend to establish 400 access centres,
including community post offices and outlets, for rural people to access
communication services," Pule said.
She added, "Taking note that the Broadband
Policy was adopted by Cabinet in 2010, we are in the process of completing a
broadband mapping study to identify the existing broadband infrastructure and
services gaps."
The minister said establishing broadband
infrastructure requires significant investment, but building the infrastructure
will increase economic activity and create jobs. "Broadband alone should
deliver 160 000 jobs by 2020."
The DOC expects the Independent
Communications Authority of South Africa will finalise the process for awarding
broadband spectrum, and finalise the Broadband Strategy.
Intelecon comment: According to the ITU,
fixed broadband penetration in South Africa was only 1.5% at the end of 2010
(most recent data). At the same time, mobile penetration reached 100.5%. These
stats clearly suggest that mobile technology will be the fastest means of
increasing broadband coverage and usage in South Africa. Fixed/mobile operator Vodacom
claims to have 99.5% population coverage through its mobile network, which
offered 42 Mbps HSPA+ service on 2,000 of its 8,394 base stations as of May
2011. Mobile operator MTN claims to cover 60% of the population with it's 42
Mbps HSPA+ network, while over 98% of people are covered by MTN's EDGE network.
January 24, 2012
Equatorial Guinea: New Operator to Improve Connectivity
According to a press
release, the government of Equatorial Guinea recently launched a new
telecommunications operator, GECOMSA (Guinea Ecuatorial Comunicaciones Sociedad
Anonima), to help meet the country's communications needs.
The goal of the government in starting GECOMSA
is to overcome the current limitations of the telecommunications sector, which is
served by two operators, GETESA (Orange) and Hits.
Maria del Mar Bindang Eneme, GECOMSA
Director, stated that the operator's main purpose is to improve and guarantee
mobile telecommunications as well as Internet services for its subscribers.
President Obiang Nguema Mbasogo said,
"It (GECOMSA) will expand and improve our communications' reach and take
us to a new level of telecommunications."
GECOMSA is a joint venture between the
government of Equatorial Guinea, which has a 51% stake, and the government of China,
with a 49% stake.
Intelecon comment: There is evidence to
support Equatorial Guinea's addition of a third mobile operator as a means of
increasing the rate of network expansion. In a 2008 paper, "Econometric
Evidence on the Impacts of Privatization, New Entry, and Independent Industry
Regulator on Mobile Network Penetration and Expansion", Yan Li analyzed
1991-2006 mobile market data from 29 OECD countries and China. Li found that,
"the third-to-fifth entries are jointly associated with the highest
penetration (the effects start to decline after the fifth entry), and the third
entry is also associated with the fastest network expansion."
Equatorial Guinea has a population of
720,000 (UN, 2011), and a per capita GDP of USD 14,374 (IMF, 2011 estimate). The
World Bank reports that oil production accounts for 73% of GDP. According to
the ITU, the country had 399,290 mobile subscribers at the end of 2010.
January 19, 2012
ITU: IMT-Advanced 4G standards announced
According to an ITU press
release, specifications for the IMT-Advanced (4G) mobile technologies were finalized
today at the ITU Radiocommunication Assembly.
The ITU has determined that LTE-Advanced
and WirelessMAN-Advanced should be accorded the official designation of
IMT-Advanced. IMT-Advanced systems include new capabilities that go beyond
IMT-2000 (3G). IMT-Advanced provides access to a wide range of packet-based
telecommunication services supported by mobile and fixed networks.
Mr Francois Rancy, Director of ITU's
Radiocommunication Bureau, said, "IMT-Advanced would be like putting a fibre
optic broadband connection on your mobile phone, making your phone at least 500
times faster than today's 3G smart phones. But it's not only about speed; it's
about efficiency. IMT-Advanced will use radio-frequency spectrum much more
efficiently making higher data transfers possible on lesser bandwidth."
IMT-Advanced systems support a wide range
of data rates. IMT-Advanced also enables high quality multimedia applications,
providing a significant improvement in performance and quality of service.
Intelecon comment: WirelessMAN-Advanced,
also known as 802.16m, is part of the WiMAX 2 technology family. 802.16m and
LTE-Advanced were approved by the ITU as IMT-Advanced technologies in October
2010. 802.16m was finalized
by the IEEE in March 2011. In July 2011, Japanese WiMAX operator, UQ
Communications initiated the first field trial of WiMAX 2 technology.
According to the Global Mobile Suppliers Associations (GSA), there are several
LTE-Advanced test systems operating or planned around the world. Commercial
LTE-Advanced networks are expected to be launched in early 2013.
January 18, 2012
Pakistan: Regulatory authority holding spectrum auction in March
According to Telecoms.com,
the Pakistan Telecommunication Authority (PTA) is auctioning spectrum in March.
The licenses will be technology neutral and
auction winners will be allowed to deploy 3G or 4G technologies. The PTA is preparing
an information memorandum for the auctioning process. The process will be overseen
by the Auction Supervisory Committee, made up of public sector stakeholders,
including representatives of the Ministry of Finance, the Ministry of
Information Technology and the PTA. The PTA also has its own committee making
preparations to conduct the auction in the most transparent manner possible.
According to Reuters, the base price for
the auction would be USD 210 million. Any incumbent mobile operator awarded a
3G license will be allowed to offer services immediately, although new entrants
will not be allowed to enter the market until March 2013.
Intelecon comment: 3G and 4G
technologies are the fastest to deploy, cheapest technologies to enable developing
countries like Pakistan to increase their broadband penetration levels.
According to the PTA, as of September 2011, there were over 478,000 WiMAX
subscribers and over 403,000 EvDO subscribers in Pakistan. However, in a
country with an estimated mid-year 2011 population of 176.9 million (Population
Reference Bureau). the wireless broadband subscriber base leaves enormous
room for growth through 3G and 4G networks.
January 12, 2012
Haiti: Government Statement on Education Tax Money
According to defend.ht,
the National Council of Telecommunications (CONATEL) issued a press release
regarding its participation in the National Fund for Education (FNE).
The FNE is a tax on international phone
calls and money transfers. The funds collected for the FNE ensure that
disadvantaged children in Haiti can attend school free of charge.
Jean-Marie Guillaume, Director-General of CONATEL,
announced that, from June 16 to November 30, 2011, it has collected USD 4,897,558
from Digicel and Comcel/Voila. To date, contributions to the FNE total USD
13,116,606. CONATEL intends to publish periodically information on the status
of the FNE.
Intelecon comment: In October 2011,
Haitian President Michel
Martelly announced that 772,000 children would receive free schooling in
the coming school year, including 142,000 children who had never attended
school before. At just USD 739, Haiti has the lowest per capita GDP in the
Americas (IMF estimate for 2011). Low income, combined with the devastation
caused by the January 2010 earthquake, means that there is a great need within
the education system for the funds raised by the levy on international calls.
January 10, 2012
Nigeria: Government Releases Draft National ICT Policy
According to a report
from This
Day, Nigeria's Ministry of Communications Technology has posted a draft National
Information and Communications Technology (ICT) policy.
The Ministry also called on all
stakeholders to review the draft policy and contribute over the next two weeks,
before it is presented to the Federal Executive Council.
On August 25, 2011, the Minister of Communications
Technology, Omobola Johnson, set up a committee to harmonise the policies for
the sectors of the ICT industry, including telecommunications, broadcasting, information
technology and postal services. The nine-person committee, chaired by the
President of the Digital Bridge Institute, Raymond Akwule, had six weeks to
conclude the harmonisation into a single policy. The committee has completed
its task and submitted its report to the Ministry, which studied the report
before releasing it for public input.
The objectives contained in the draft national
ICT policy include:
·
to reflect convergence by de-emphasising the
differences between the information technology (IT), broadcasting, telecommunications
and postal sectors;
·
to bring all ICT-related activities under a
single ministry to give policy guidance to the converged industry;
·
to create a new ICT Act to ensure a competitive
and converged industry as well as provide an appropriate legal framework;
·
to develop and enhance indigenous capacity in
ICT technologies;
·
to establish an administrative and legal
framework for the transition to digital broadcasting and ensure a smooth
switchover in accordance with ITU guidelines; and
·
to establish the framework for the implementation
of community radio in Nigeria.
Intelecon comment: National ICT policies
are valuable tools for encouraging, guiding and measuring the development of
the ICT sector, and for achieving other social and economic development
objectives. ICTs can play a significant role in improving employment prospects
in developing countries such as Nigeria. Governments in many countries have
worked with stakeholders to craft ICT sector policies, such as the recently
completed Philippine Digital Strategy, that attempt to accelerate national development
through the use of ICTs. Working with industry and the public to develop the new
ICT policy is a positive move by Nigeria's government.
December 22, 2011
India: Ministry will not allow 3G roaming pacts
According to Reuters,
India's Department of Telecommunications (DoT) intends to inform mobile
operators that they will not be permitted to offer 3G services outside their
licensed zones through roaming agreements.
In 2010, India auctioned 3G spectrum, which
attracted much higher bids than expected. However, no single operator secured spectrum
in all 22 zones. Currently, Bharti Airtel, Vodafone and Idea Cellular, three of
the top four carriers, provide 3G services outside of their licensed zones
through roaming pacts.
"Decision is clear that this is not
permitted, and that is being conveyed to the companies," R.
Chandrashekhar, the head of DoT, said. The ministry has not decided whether to
impose penalties on the companies, he added.
The government raised USD 13 billion in the
3G auction and is in the process of updating its telecommunications
regulations, but there is little clarity on issues such as the pricing of 2G
spectrum and mergers and acquisitions.
Operators launched 3G services earlier in
2011 and are expanding their networks. Premium data services currently provide
a small fraction of the revenue of Indian carriers but the companies see significant
potential for growth, with less than 10% of India's 1.2 billion people having
access to Internet. Margins from data services are also higher than voice
margins.
Last month, executives from Bharti,
Vodafone, Idea and sixth-ranked Tata Teleservices wrote a joint letter to
Telecommunications Minister Kapil Sibal, saying they understood that 3G roaming
arrangements were legal and permissible before they placed bids for 3G
spectrum.
"Any determination now that this might
not be the case would fundamentally alter the legal and economic basis on which
the business case for 3G bids were evaluated, inevitably leading to a
requirement to either refund to the bidders or re-run the auctions," the
letter said.
Bharti spent USD 2.3 billion to win 3G
permits in 13 of the 22 zones. Vodafone paid USD 2.2 billion for licenses in
nine zones. Idea won spectrum in 11 zones for USD 1.1 billion.
Intelecon comment: Currently, India's
Telecom Commission is finalizing the country's new telecom policy. According to
Kapil Sibal, under the new policy, operators will be allowed to opt for a
national level license or to continue with the existing system of circle-wise
licensing.
December 20, 2011
Pakistan: Government bans mobile number portability
According to a report
from Pakistan
Today, the government of Pakistan has decided to ban Mobile Number
Portability (MNP) due to threats to national security, and warned that use of
MNP would be a violation of the Anti-Terrorism Act (ATA), 1997.
A meeting held by Interior Minister Rehman
Malik on the misuse of electronic equipment, including the internet, email and
SMS/MMS, discussed remedial measures to curb illegal activities. The chairman
and secretary of the Pakistan Telecommunication Authority (PTA) were directed
to immediately meet with mobile operators, and convey the government's concerns
to ensure that mobile service was not misused by anti-state elements. It was
decided mobile operators would be required to install their own monitoring
systems in coordination with the PTA to block objectionable communication being
routed through their servers.
The participants in the meeting included
the secretaries of Interior and Information Technology, the PTA chair, the inspector
general of Sindh Police, members of the Federal Board of Revenue (FBR) and
Customs, and representatives of intelligence agencies. They observed that criminals
are using unauthorised SIM cards in illegal activities such as terrorist
attacks, bank robberies and target killings.
The PTA chairman was directed to revisit
the whole system and ensure that all SIM cards being used on stolen identities
shall be blocked. In this regard, the participants decided to ban MNP, calling
it a threat to national security. They said that anyone sending threatening
emails or tampering with email addresses, mobile phone via SMS and MMS shall be
dealt with under the ATA and other relevant sections of the law.
The interior minister created a committee, chaired
by the Interior secretary, to examine the draft bill regarding the misuse of
electronic equipment. The committee will brief the interior minister on the
proposed legislation.
Intelecon commment: Since March 2007, the
MNP service has been managed by a mobile operator-owned company, the Pakistan
Mobile Number Portability Database (Guarantee) Limited, which runs the Centralized
Number Portability Clearing House.
December 15, 2011
Sri Lanka: de Silva Urges Return of Portion of Levy to Boost Broadband
According to the Daily
FT, Sri Lankan MP Dr. Harsha de Silva is urging the Government to refund a
portion of the telecommunications levy paid by operators to enable the acceleration
of broadband rollout.
Dr. de Silva said that in the 2012 budget,
the Government proposed that the levy on incoming international calls increase
from USD 0.07 per minute to USD 0.09 per minute. de Silva suggested that this
increase could result in incoming calls being channelled via grey market networks,
which would decrease government revenue. As an alternative, de Silva recommends
returning 50% of the levy increase to legal operators. These operators could
then invest it broadband rollout.
Dr. de Silva was instrumental in creating the
levy in 2002/3 in order to finance the Vishva Gnana Fund, which was to be used
to expand the country's broadband network. The idea was to phase out the levy when
there was evidence of progress in broadband rollout.
"Broadband is critical for the future
competitiveness of Sri Lanka and to increasingly make Sri Lankans smart global
citizens. Therefore, the Government should share the revenue so that the
private sector operators could be supported to carry out the speedier rollout
of broadband in the country," Dr de Silva said in Parliament.
The 2012 budget also proposes that the levy
on outgoing international calls increase from USD 0.018 per minute to USD 0.026
per minute.
"The Telecommunication Regulatory
Commission will implement policies and strategies to encourage
telecommunication companies to give priority for the development of broadband
network facilities. In keeping with development priorities, telecommunication
charges on incoming and outgoing calls will be revised suitably," President and
Finance Minister Mahinda Rajapaksa said.
Intelecon comment: Encouraging broadband
rollout has become a high priority for governments around the world. According
to the ITU, in 2010 there were only 213,800 fixed broadband subscribers in Sri
Lanka, which has a population of 20.86 million. The Telecommunications Regulatory
Commission of Sri Lanka reported that there were 367,764 mobile broadband
subscribers by the end of June 2011. Initiatives such as the levy refund
suggested by Dr. de Silva would contribute to increased broadband penetration
through expanded availability of broadband services.
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