Business Wire

Spectrum Policies Impacting Quality of Mobile Services to Consumers in Latin America, Warns New GSMA Report

Del

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

-ENDS-

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.

Contact information

For the GSMA
Tati Cantoni: +55 11 95210-2225
Taticantoni@pimenta.com
or
Beau Bass
+44 79 7662 4962
beau.bass@webershandwick.com
GSMA Press Office
or
Media Contacts:
pressoffice@gsma.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(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

ABB Showcases World-Leading e-Vehicle Fast Chargers and Launches AI Readiness Index at Hannover22.4.2018 10:00Pressemelding

ABB spotlighted its world-leading Terra HP family of fast chargers for electric vehicles at Hannover Messe, the biggest global industrial trade fair. By operating at powers of up to 350 kilowatts and adding as much as 300 kilometers of range to an electric vehicle in just 12 minutes, the Terra HP family of chargers have made electric cars more appealing for consumers by enabling them to refresh the batteries in about the same time required for filling up a petrol-powered car. Terra HP chargers are being installed around the world, and they have been selected for use by Electrify America, the biggest electric vehicle infrastructure project to date in the United States. ABB, whose broad array of digitally driven technologies for electric-power management are used by utilities and businesses worldwide, is also a global leader in industrial automation and robots enabled by artificial intelligence (AI). Demonstrating its commitment to helping the international community address the opportun

PSE: APM Forum 2018 Focus on Digitalisation for the Process Industries20.4.2018 15:13Pressemelding

At the 2018 Advanced Process Modelling (APM) Forum this week, process industry organisations presented on digital design and operations applications ranging from accelerating development of the next generation of pharmaceuticals to realising millions of dollars per year in increased profit for large process plants. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180420005517/en/ Ben Weinstein, head of R&D Product and Process Systems Modeling at Procter & Gamble, delivers the keynote speech on how digital design techniques are used systematically to accelerate innovation in P&G. (Photo: Business Wire) Introducing the conference, Prof. Costas Pantelides, MD of conference host Process Systems Enterprise (PSE), described the current wave of digitalisation as the culmination of many years of advanced modelling and IT development. “This is a time of extraordinary opportunities for the process industries” he said. Keynote speaker Ma

Aperta Provides Electronic Funds Transfer (EFT) in Cayman Islands20.4.2018 14:01Pressemelding

Once again, the Aperta Active Clearing System (ACS) has delivered the mechanism for a country to implement a world-class electronic payment processing environment to maximize a national payments system’s efficiency, effectiveness, security and control. Aperta partnered with the Cayman Islands ACH Operator (Prism Services (Cayman) Ltd.) and local commercial banks to deliver a new Electronic Funds Transfer system. The old process of banks swapping files in a wide-variety of standards and settling bilaterally has been replaced with a common system and standards, employing international-standard secure file transfer protocol, allowing participants to monitor real time net settlement and collateral positions via a secure portal. The Cayman Islands Automated Clearinghouse (CIACH) links all six of the country’s banks and provides the central clearing and settlement mechanism for banks to exchange direct debit and direct credit transactions seamlessly across the country. It is functionally NAC

FII Tech Growth Invests in SECO20.4.2018 13:39Pressemelding

FII Tech Growth, a fund managed by Fondo Italiano d’Investimento SGR, announces today its second investment in SECO SpA, one of the European leaders in the embedded electronics market. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180420005413/en/ (Photo: SECO) SECO, headquartered in Arezzo, Tuscany, with subsidiaries in the U.S.A., Germany and Taiwan, was founded in 1979 by entrepreneurs Daniele Conti and Luciano Secciani. The company designs and manufactures micro-computers and integrated systems for industrial applications. With more than 250 employees, SECO supports customers with a worldwide presence such as Cimbali, Esaote, Technogym and Vimar, and generated revenue in excess of Euro 50 million in 2017. The ability to offer innovative solutions by using cutting-edge technologies has allowed SECO to grow steadily over time. The company developed a network of collaborations with universities and research centres La Sapi

Schlumberger Announces First-Quarter 2018 Results20.4.2018 11:05Pressemelding

Schlumberger Limited (NYSE:SLB) today reported results for the first quarter of 2018. (Stated in millions, except per share amounts) Three Months Ended Change Mar. 31, 2018 Dec. 31, 2017 Mar. 31, 2017 Sequential Year-on-year Revenue $7,829 $8,179 $6,894 -4% 14% Pretax operating income $974 $1,155 $757 -16% 29% Pretax operating margin 12.4% 14.1% 11.0% -169 bps 145 bps Net income (loss) - GAAP basis $525 $(2,255) $279 n/m 88% Net income, excluding charges & credits* $525 $668 $347 -21% 51% Diluted EPS (loss per share) - GAAP basis $0.38 $(1.63) $0.20 n/m 90% Diluted EPS, excluding charges & credits* $0.38 $0.48 $0.25 -21% 52% *These are non-GAAP financial measures. See section below entitled "Charges & Credits" for details. n/m = not meaningful Schlumberger Chairman and CEO Paal Kibsgaard commented, “As forecast, our results in the first quarter of 2018 largely reflected transitory factors, with seasonal reductions in activity in the Northern Hemisphere and planned project startup costs

Biogen and Ionis Expand Strategic Collaboration to Develop Drug Candidates for a Broad Range of Neurological Diseases20.4.2018 10:30Pressemelding

Biogen (Nasdaq: BIIB) and Ionis Pharmaceuticals (Nasdaq: IONS) announced today they have expanded their strategic collaboration through a new ten-year collaboration agreement to develop novel antisense drug candidates for a broad range of neurological diseases. This collaboration capitalizes on Biogen’s expertise in neuroscience research and drug development and Ionis’ leadership in RNA targeted therapies with the goal of developing a broad pipeline of investigational therapies. It builds upon a productive collaboration that produced SPINRAZA, the first and only approved treatment for patients with spinal muscular atrophy. Today, April 20, 2018, Biogen and Ionis will host company conference calls and webcasts to discuss the new collaboration. Full webcast details can be found below. Under the terms of the collaboration, Biogen will pay Ionis $1 billion in cash, which will include $625 million to purchase 11,501,153 shares of Ionis common stock at a price of $54.34 per share, at an appr