The Association of GSMA: the mobile Internet in developing countries the most expensive 3 times than in the developed world

Developing countries need better policies in the area of pricing spectrum to improve the economic and social welfare of billions of people who are still not connected to high-speed Internet (or Broadband) via the cellular communication, according to a new report the Association of “GSM er,”GSMA today released under the title “the pricing of frequency spectrum in developing countries” during the conference “the mobile 360 – Africa” in Kigali.

The study reveals that spectrum prices in developing countries higher on average by three times the price in developed countries, when you take income level into account. The price includes associated with the spectrum is a major impediment to the increased prevalence of mobile phone use.

The study found that prepared by the information unit of the Association for “GSM er” that governments play a key role in the increase in spectrum prices in order to increase State Revenue from the licensed frequency spectrum significantly.

Prices are tied to the frequency spectrum associated with countries with high levels of indebtedness, and the worry is that the average rates of the reserve (the minimum price in the auction) in the auction of frequency spectrum in developing countries becoming the top five more times than in developed countries, when you take income level into account.

The report noted that the spectrum prices associated with linked to the level of coverage of the worst prices of the most expensive and quality less services and mobile broadband connections, which hinder the access of consumers to services.

Said Brett Arts, head of the frequency spectrum of the Association “GSM er,”: “becomes to provide access to everyone in the future without political decisions the best on the spectrum.”

For a very long time, it is judged on the success of the auctions associated with the spectrum according to the amount of revenue that can be collected instead of the economic and social benefits to provide the ability to contact people, and does not correspond to the context of the frequency spectrum that lead to inflated prices and focus on short-term gains with our common goals to provide services to broadband connections better and affordable. As to pricing policies, this will only serve to limit the growth of the digital economy will be the task of eradicating poverty and providing health care and education better, and achieve financial integration and equality between the sexes more difficult.

The study conducted by the Association “GSM er,” assessment of more than a thousand important spectrum in 102 countries (including 60 developing countries and 42 developed country) since the year 2010 until 2017, making it the largest analysis ever of prices the frequency spectrum in developing countries, and assessed the determinants of pricing and their potential impacts on consumers. Among the countries covered in the analysis: Algeria, Bangladesh, Brazil, Colombia, Egypt, Ghana, India, Jordan, Mexico, Myanmar, and Thailand –all of the markets that give priority to spectrum licensing.

Among the political decisions that are highlighted in the report which cause the high spectrum prices in developing countries, include: determining the prices of final high administrative or determine the high price to start the auction (for example prices of backup), as well as the identification and amount of spectrum licensed and available artificially doesn’t agree with reality, and not share a clear roadmap for spectrum, setting the rules of the weak for more.

Unit information bright “GSM er”publishes the latest index mobile

In related news, today launched the information unit of the Association for “GSM er,” the latest index Mobile, which tracks the performance of 163 countries (representing 99 per cent of the world’s population) versus the possible factors the main of the adoption of mobile Internet. The indicator light on the progress that has been made recently on expanding access to mobile internet and explores the key barriers through the adoption of the Internet, including in the context of the frequency spectrum.

At the end of 2017, 3.3 million people (or 44 per cent of the world’s population) connected to the mobile Internet, representing an increase of $ 300 million compared to the previous year. This leaves more than 4 billion people are not connected and are not able to achieve the social and economic benefits offered by mobile Internet. As the majority of people who are still not connected to -3.9 million – live in developing countries.

Still broadband networks for mobile communications are not covered million people worldwide, and nearly 3 million people live within range of the network is not currently receiving services of the mobile Internet. In low-income countries, do not cover the networks of the third generation about two-thirds of the rural population. The index of the mobile light on the importance of factors such as affordability and quality of broadband services for mobile communications, the investment of the network in securing the ability to contact people, both of which can be influenced by the prices, the frequency spectrum associated with.

For his part, said gate of Castel Beatles, Director of economic analysis in the information unit of the Association for “GSM er”: “if you don’t receive the operators of mobile communications on access to spectrum at reasonable prices, then consumers are more affected by this situation.”

He added: “developing countries have the opportunity to keep abreast of developed countries in the adoption of mobile communications; however, the investment in some of these markets at risk. Cannot be operators of mobile communications continue to pay more for spectrum when the incomes of consumers, the expected profit is much lower in these markets. This is what makes investing in young people is difficult at a time should help policy to encourage the development of the mobile industry to increase the benefits that can benefit everyone.”

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