Spectrum Policies Impacting Quality of Mobile Services to Consumers in Latin America, Warns New GSMA Report
The GSMA today issued a new report, ‘Effective Spectrum Pricing in Latin America: Policies to support better quality and more affordable mobile services,’ highlighting that spectrum policies in Latin America are impacting the delivery of quality mobile services to consumers across the region.
The new report, which examines spectrum pricing trends in 15 countries across Latin America, underscores how decisions made by regulators on spectrum pricing can have a negative impact on the quality and cost of mobile broadband services. While auctions remain an effective means of awarding spectrum, regulators should adopt spectrum policies that focus on maximising long-term benefits for society, rather than driving up the cost of spectrum for short-term gain. In Latin America, steep spectrum prices, which are almost twice as high as in Europe, put serious financial pressure on the industry, impacting the delivery of next-generation networks.
“Latin American countries that do not make spectrum available for 4G and 5G networks and artificially inflate the price are holding back their digital economies, not closing the digital divide and hurting consumers,” said Sebastian Cabello, Head of Latin America, GSMA. “Operators require fair access to sufficient radio spectrum in order to deliver high-quality and affordable mobile broadband services. Governments and regulators must adopt policies that support this in order to help their local digital economies to grow.”
Appropriate Spectrum Policies
High prices for capacity spectrum at auctions are largely due to policy decisions rather than market forces, with regulators effectively setting the price for spectrum up front, according to the report. This approach has inflated prices in Latin America, which are approximately 60 per cent higher than in Europe.
The amount of spectrum allocated to mobile operators in Latin America is still well below Asian, European and North American markets, and as a result, spectrum auctions in the region are often conducted in an environment of spectrum scarcity1 and uncertainty. Future availability of frequencies forces mobile operators to accept these higher prices to ensure long-term competitiveness in their respective markets. Many Latin American countries also have a mixed track record of making spectrum available in a timely manner and making commitments regarding future releases.
“Latin American countries must set policies that encourage the development of next-generation networks and give consumers affordable access to mobile services,” continued Cabello. “Consumer demand for mobile data services continues to grow, but unless governments and regulators manage spectrum efficiently and make the process more transparent, affordable and achievable for operators, costs will not decrease sufficiently and consumers will not see the benefits.”
A High Price to Pay
The report confirms the link between the total spend on spectrum and the price of data, arguing that lower spectrum costs would have a positive impact on the adoption of consumer and enterprise services. It also suggests that high costs may also prevent incentives for price competition. Other issues relate to high reserve prices, annual licence fees, short licence terms, inappropriate coverage obligations and uncertainty about renewals and new awards.
Spectrum Pricing Policy Best Practice
The report encourages Latin American governments and regulators to assess how their policies impact the price and availability of spectrum, particularly as 4G and 5G networks require increasing amounts of spectrum. Appropriate policies will improve access to broadband, while delivering benefits to society, such as bridging the digital divide and growing the digital economy. Specifically, the report recommends the following key policy recommendations:
1. Set modest reserve prices below the expected market value and ensure annual fees are not prohibitive.
2. Bring spectrum to market in a timely manner, provide operators with a roadmap of future availability and release in anticipation of requirements.
3. Avoid onerous licence conditions, ensuring licence terms are long enough and bidders have appropriate renewal guarantees so that they can realise adequate returns on investments in network infrastructure.
4. Adopt best practice in award design that prioritise efficiency, not revenues
The full report, Effective Spectrum Pricing in Latin America: Policies to support better quality and more affordable mobile services, is available at: www.gsma.com/spectrum/wp-content/uploads/2018/02/Effective-Spectrum-Pricing-in-Latin-America-ENG-full.pdf
Notes to Editors
1. The report argues that spectrum scarcity is one of the key factors holding back the region. For example, most countries in the region haven’t allocated new bands such as 700 MHz and 2.6 GHz in a timely manner. The overall pace of spectrum releases is well behind the more developed markets in Europe and Northern America.
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Cred Opens Its Platform to Developers and Businesses10.12.2018 20:21 | Pressemelding
Cred, the leading provider of crypto-backed lending with over $300 million in credit facilities, today announced the launch of CredX, Cred’s developer platform, enabling any company or developer to turn their products into powerful financial applications for their customers. Crypto exchanges, crypto wallets, miner service providers, even traditional financial institutions have the ability to access Crypto Lending as a Service (CLaaS™) and create a rich set of customer experiences for their customers. “Lending and Earning Crypto are hard businesses to get right, particularly in a bear market,” said Dan Schatt, Co-Founder of Cred and the Universal Protocol Alliance. “A crypto custodian, wallet, merchant or exchange business can now offer their customers compelling credit and treasury management features built directly into their own apps, powered by Cred. Businesses can choose to use their own balance sheets, or leverage Cred’s to provide credit and earning services to generate revenue,
Axonics® Announces Publication of NICE Briefing10.12.2018 16:03 | Pressemelding
Axonics Modulation Technologies, Inc. (NASDAQ: AXNX), a medical technology company focused on the development and commercialization of novel implantable Sacral Neuromodulation (“SNM”) devices for the treatment of urinary and bowel dysfunction, announced today the publication of a Medtech Innovation Briefing by The National Institute for Health and Care Excellence (“NICE”) following a careful review of the innovations offered by the Axonics System. The NICE Medtech Innovation Briefing entitled: “Axonics rechargeable sacral neuromodulation system for overactive bladder and faecal incontinence,” describes published clinical evidence on the Axonics r-SNM System®, confirming efficacy as well as the potential positive economic impact that is possible by the use of the Axonics system in the United Kingdom. The Axonics r-SNM System is the first rechargeable Sacral Neuromodulation system approved for sale in Europe and commercially available to all hospitals and clinics in the U.K. for patients
The Largest Blockchain Conference in Asia to Be Held 30–31 January in Yokohama, Japan10.12.2018 15:00 | Pressemelding
The Global Blockchain Association (Shimizu Building 6F, 3-19 Hayabusacho, Chiyoda-ku, Tokyo, President: Toshikazu Masuyama) is proud to host the largest blockchain conference in Asia: The Japan Blockchain Conference (JBC) – 2019 Yokohama, to be held on 30 and 31 January at Pacifico Yokohama. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005057/en/ The Japan Blockchain Conference (JBC) - 2019 Yokohama (Graphic: Business Wire) The conference will host top companies and organizations from Japan and abroad who represent the future of the rapidly growing blockchain space. This is the place where the leaders of blockchain and crypto can interact, form partnerships, and showcase their leading technologies and developments. We are actively looking for companies to join the best of the blockchain industry and exhibit at our conference. More details can be found here: http://japan-blockchain-c.com/en/ We welcome a wide range of
Global Payments’ TouchNet Business Named “Partner of the Year” by Ellucian10.12.2018 13:30 | Pressemelding
Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology and software solutions is pleased to announce that its TouchNet business was named “Partner of the Year” by Ellucian, a provider of software and services that power higher education, at its Partner Forum reception during the annual EDUCAUSE Conference this year in Denver, CO. TouchNet was recognized for its collaborative efforts to deliver streamlined engaging, cloud-based, student commerce and credential solutions. This honor further demonstrates the depth and breadth of the TouchNet platform and its dedication to delivering software-driven and technology-enabled strategies to institutions of higher education. “TouchNet’s commitment to delivering maximum value enables Ellucian to consistently provide customers with best-in-class solutions, support and service,” said Chris Westfall, Vice President Partnerships Ellucian. “When you combine Ellucian’s feature rich technology and in-depth customer knowledg
CTS Engines Hires Tom Bode as Senior Vice President, Operations10.12.2018 13:00 | Pressemelding
CTS Engines, the global leader for mature engine maintenance within the Aerospace & Defense industry, announced today that it had hired Tom Bode as its Senior Vice President, Operations. In his new role, Mr. Bode will be responsible for all operations, quality, and engineering functions, and will report to Vesa Paukkeri, CTS Engines’s President and COO. Since 2008, Mr. Bode has been the General Manager of the Columbus Engine Center for Pratt & Whitney, a company he joined in 2000. Prior to 2000, Mr. Bode worked at GE Aviation, where he was a quality and engineering leader. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005036/en/ Tom Bode (Photo: Business Wire) “As the General Manager of CEC, Tom managed over 700 employees across multiple engine production lines and reduced overhaul turnaround times through the promotion of Lean manufacturing principles,” said Mr. Paukkeri. “His performance as a manager was recognized
Tracxpoint Signed a Major Agreement to Deploy its Artificial Intelligence Cart (AiC®) Platform at CONAD, One of the Largest and Most Sophisticated Supermarket Chains in Italy with 3,000 Locations in Lieu of Amazon Go after Intensive Study10.12.2018 11:00 | Pressemelding
Tracxpoint, a global provider of next-generation self-checkout grocery solutions, today announced an agreement to roll out its Artificial Intelligence Cart (AiC®) at CONAD DEL TIRRENO, one of the seven cooperatives of CONAD’s chain with more than 3,000 supermarket stores in Italy. This is a major milestone for the Israeli startup in its mission to establish the AiC® platform as the most powerful, accessible and comprehensive solution for self-checkout and personalized in-store engagement on the market today. CONAD DEL TIRRENO will start implementing the AiC® ecosystem during 2019. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005176/en/ The Tracxpoint AiC enables checkout-free stores and personalized in-store engagement for Italy's largest supermarket chain, CONAD. (Photo: Business Wire) In direct contrast to capital-intensive and smaller store concepts like Amazon Go or its imitators that rely on ceiling cameras for