The recent GSMA Mobile Connectivity Index highlights that 4 billion people are still offline.
Frequency policy decisions remain a major barrier to digital inclusion.
According to a new report entitled “Spectrum Pricing in Developing Countries”, released today by the GSMA at the Mobile 360 - Africa conference in Kigali, it is imperative to introduce better spectrum pricing policies. in developing countries to improve the economic and social well-being of billions of people who are still not connected to mobile broadband services. The study reveals that frequency tariffs in developing countries are on average three times higher than in developed countries, taking into account personal income. High frequency pricing is a major barrier to mobile penetration.
Written by GSMA Intelligence, the study also shows that governments play an active role in increasing spectrum rates because they seek to maximize public revenues from spectrum licensing. It appears that frequency tariffs are higher in countries with high public debt, and average reserve prices at auction are five times higher than in developed countries, taking into account consumer income. The report also indicates that there is a link between high frequency rates and poor coverage, and between higher-priced high-speed mobile services and poor quality. Factors that prevent consumers from using these services.
“It is therefore impossible to connect everyone without making better spectrum policy decisions,” said Brett Tarnutzer, spectrum manager at GSMA. “For too long, the success of frequency auctioning has been based more on the revenue that can be derived from it than on the economic and social benefits to those connected. Frequency spectrum policies that magnify prices and focus on short-term profits are inconsistent with our shared goals of providing improved and more affordable mobile broadband services. These pricing policies will only limit the growth of the digital economy and make it more difficult to eradicate poverty, provide improved health care and education, and lead to financial inclusion gender equality. ”
The GSMA study estimates more than 1,000 spectrum allocations in 102 countries (including 60 developing countries and 42 developed countries) from 2010 to 2017. It is currently the largest analysis studying spectrum pricing. frequencies in developing countries, as well as the factors and potential effects of frequency pricing on consumers. Among the countries included in the survey are Algeria, Bangladesh, Brazil, Colombia, Egypt, Ghana, India, Jordan, Mexico, Myanmar and Thailand. markets in which the granting of the spectrum license is a priority.
The setting of high prices by the administration or the setting of high starting prices at the auction (eg reserve price), the artificial limitation of licensed frequencies available, the refusal to share a clear roadmap and the introduction of ineffective auction rules are just a few examples of the policy decisions mentioned in the report that drive up frequency prices in developing countries.
GSMA Intelligence Releases New Mobile Connectivity Index
In addition, GSMA Intelligence today released its recent Mobile Connectivity Index, which measures the performance of 163 countries (representing 99% of the world’s population) according to critical factors that are key to promoting mobile Internet adoption. . The Index highlights recent progress in increasing mobile internet access and discusses key barriers to adoption, including spectrum policy.
At the end of 2017, 3.3 billion people (or 44% of the world’s population) were connected to the mobile internet, representing an increase of almost 300 million people compared to the previous year. This leaves around 4 billion people offline who can not enjoy the social and economic benefits of mobile internet. The majority of unrelated people, including $ 3.9 billion, live in developing countries.
One billion people in the world are still not covered by mobile networks. In addition, about 3 billion people live in an area covered by a mobile broadband network but do not access mobile internet services. In low-income countries, about two-thirds of rural populations are not covered by 3G networks. The Mobile Connectivity Index highlights the importance of factors such as the accessibility and quality of mobile broadband services, as well as investing in the network to connect people, both of which can be influenced. by the high prices of the frequencies.
“If mobile operators are not offered affordable and predictable access to frequencies, consumers will suffer the most,” said Pau Castells, director of business analysis at GSMA Intelligence. “Developing countries can catch up with developed countries in the field of mobile adoption, but investment is endangered in some of these markets. Operators can not continue to pay much more for frequencies, while consumer incomes and expected profits are much lower in these markets. Investment in the network becomes more complicated at a time when policies should rather encourage the development of the mobile sector to multiply the benefits it can bring to everyone. ”
The report “Spectrum Pricing in Developing Countries” is available in English here and here in the form of computer graphics.
