|
Mobiles, Global: Mobile networks will provide coverage to 90% of the world’s population by 2010 - compared with 80% today - despite the misplaced policies of many governments who continue to subsidise the rollout of fixed-networks.
This is according to Intelecon Research, who have reached this conclusion in a research study commissioned by the GSM Association. As if the main conclusion was not forceful enough, it is Intelecon’s opinion that better use of universal service funds will extend coverage to near the magic 100%.The study covered 92 developing countries. It examined the collection and use by governments of universal service fund levies, and found that governments have collected more than US$6 billion from the telecoms industry. One third of that sum has come from mobile operators. One quarter of the sum has been distributed so far, but just 5% (US$75 million) has been used to extend mobile coverage, despite what the authors describe as the distinct cost advantages of mobile technologies. In fact, universal service funds are typically designed to provide governments with the resources to extend basic telecommunication facilities to the least privileged in society and to those living in the most remote areas. Despite the critical role telecoms plays in developing markets, governments have yet to allocate US$4.4 billion of the US$6 billion collected by these funds. If governments allocated the unspent US$4.4 billion to extending mobile networks, an additional 450 million people in rural areas of the developing world would have mobile coverage, the study concludes. “While extending coverage is important, governments should also focus on connecting the 2.7 billion people who already have coverage, but are not connected, by removing mobile-specific taxes and regulations that make mobile ownership more expensive than it needs to be,” says Tom Phillips, Chief Government and Regulatory Affairs Officer of the GSMA. “While the mobile industry is reducing costs for its customers through shared access initiatives and the development of low-cost handsets, many governments are increasing the burden of regulation.” Intelecon found that 32 of the 92 countries in the survey have set up universal service funds, levying fees ranging from 1% to 6% of operators’ revenues. Malaysia, for example, takes 6% of operators’ revenue, while India, which levies 5%, has built up a fund of almost US$2 billion that is earmarked entirely for extending fixed networks. Brazil levies 1%, but has yet to spend any of the US$1.7 billion it has collected. The World Bank has estimated that the capital cost of providing mobile coverage to an individual is one-tenth of the cost of installing a fixed-line connection... more info: |
.gif "Image")
Date: 9-11 September 2008