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High Spectrum Prices Inimical to Social Welfare in Developing Countries – Study

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Better spectrum pricing policies are needed in developing countries to improve the economic and social welfare of the billions of people that remain unconnected to mobile broadband services, according to a new report, ‘Spectrum Pricing in Developing Countries’, released by the GSMA yesterday at the Mobile 360 – Africa conference in Kigali.

The study reveals that spectrum prices in developing countries are, on average, more than three times higher than in developed countries, when income is taken into account. This high spectrum pricing is a major roadblock to increasing mobile penetration.

Authored by GSMA Intelligence, the study also found that governments are playing an active role in increasing spectrum prices to maximise state revenues from spectrum licensing.

High spectrum prices are linked to countries with high levels of sovereign debt, and alarmingly average reserve prices in spectrum auctions are more than five times higher in developing countries than in developed, once income is accounted for.

The report also identifies a link between high spectrum prices and poorer coverage, as well as more expensive and lower quality mobile broadband services, all of which hinder the take-up of services by consumers.

“Connecting everyone becomes impossible without better policy decisions on spectrum,” said Brett Tarnutzer, Head of Spectrum, GSMA. “For far too long, the success of spectrum auctions has been judged on how much revenue can be raised rather than the economic and social benefits of connecting people.

Spectrum policies that inflate prices and focus on short-term gains are incompatible with our shared goals of delivering better and more affordable mobile broadband services.

These pricing policies will only limit the growth of the digital economy and make it harder to eradicate poverty, deliver better healthcare and education, and achieve financial inclusion and gender equality.”

The GSMA study assessed over 1,000 spectrum assignments across 102 countries (including 60 developing and 42 developed countries) from 2010 through 2017, making it the largest-ever analysis into spectrum pricing in developing countries, as well as the drivers and their potential impacts of spectrum pricing on consumers.

Among the countries included in the analysis are Algeria, Bangladesh, Brazil, Colombia, Egypt, Ghana, India, Jordan, Mexico, Myanmar and Thailand – all markets where spectrum licensing is a priority.

Setting high final prices administratively or setting high auction starting prices (e.g. reserve prices), artificially limiting the amount of licensed spectrum available, not sharing a clear spectrum roadmap, and setting poor auction rules are some of the policy decisions highlighted in the report that are driving high spectrum prices in developing countries.

Mobile Connectivity Index

In related news, GSMA Intelligence today launched its latest Mobile Connectivity Index, which measures the performance of 163 countries (representing 99 per cent of the world’s population) against key enablers of mobile internet adoption.

The Index highlights recent progress made on widening access to the mobile internet and explores key roadblocks to adoption, including spectrum policy.

At the end of 2017, 3.3 billion people (or 44 per cent of the global population) were connected to the mobile internet, representing an increase of almost 300 million compared to the previous year.

That still leaves more than 4 billion people offline and unable to realise the social and economic benefits that the mobile internet enables. The majority of people that remain unconnected – 3.9 billion – live in developing countries.

Mobile broadband networks still do not cover 1 billion people globally, and approximately 3 billion people who live within the footprint of a network are not currently accessing mobile internet services.

In low-income countries, around two thirds of rural populations are not covered by 3G networks.

The Mobile Connectivity Index highlights the importance of factors such as the affordability and quality of mobile broadband services, and network investment in connecting people, both of which can be impacted by high spectrum prices.

“If mobile operators don’t get affordable and predictable access to spectrum, it will be consumers who will suffer the most.

“Developing countries have the opportunity to catch up with the developed on mobile adoption; however the investment case in some of these markets is being put at risk.

“Operators cannot keep paying significantly more for spectrum when consumer incomes and expected profits are much lower in these markets. This is making network investment challenging at a time when policies should encourage the development of the mobile sector to maximise the benefits it can bring to everyone,” said Pau Castells, Director of Economic Analysis at GSMA Intelligence.


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Google and African Union Partner to Launch #DiscoverMyAfrica

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The Office of the African Union Chairperson’s Youth Envoy and Google today announced the launch of the #DiscoverMyAfrica Shorts Challenge, a month-long initiative to celebrate the rich diversity, heritage, and vibrant spirit of the African continent. Throughout May, YouTube creators across Africa are invited to share short videos capturing their unique perspectives, using the hashtag #DiscoverMyAfrica.

“#DiscoverMyAfrica empowers African youth to share their stories and rich cultural heritage globally,” said Chido Mpemba, African Union Chairperson’s Youth Envoy. “Partnering with Google fosters creative expression and dialogue on content responsibility, digital preservation, and AI’s impact on Africa’s creative industries. This aligns with our vision for a digitally-enabled Africa harnessing cultural wealth for economic growth and social progress.”

The YouTube Shorts Challenge encourages creators to showcase various facets of African life, from music and art to food, fashion, and local landmarks. To further celebrate Africa’s vibrant music scene, YouTube is turning up the energy with YouTube Music Nights in Nigeria and South Africa, showcasing the infectious rhythms of Afrobeats and Amapiano. Two dedicated playlists, “Africa’s Next Wave” and “Africa Superstars,” will highlight both emerging talent and iconic voices that have made the continent a global music powerhouse.

Nollywood superstar and style icon Osas Ighodaro will immerse viewers in the luxurious side of Lagos with her new show “Spa with Osas.” Enioluwa and The Geng will unravel the drama and secrets of high school elites in their highly anticipated series “All of Us.” And comedy superstar Broda Shaggi is guaranteed to bring the laughs with his hilarious new project, “Shaggi’s Palava.” These exciting new shows will premiere exclusively on YouTube.

Aspiring filmmakers and content creators can also take advantage of specialized workshops designed to hone their skills and expand their reach. A dedicated Nollywood workshop in Nigeria, and broader #DiscoverMyAfrica workshops for content creators will offer valuable insights and resources to creators at all levels.

“We are committed to supporting the diverse voices and talents that make up Africa’s creative landscape,” said Addy Awofisayo, Head of Music for Sub-Saharan Africa at YouTube.

“These initiatives provide valuable resources and platforms for African filmmakers, musicians, and content creators to share their stories and connect with global audiences.”

To learn more about #DiscoverMyAfrica and how to get involved, visit www.blog.google/africa or follow #DiscoverMyAfrica on social media.


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QNET Triumphs as it Scoops Three Prestigious Awards @ PR Awards 2024

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In a remarkable acknowledgment of its excellence in public relations and communications, QNET, a leading lifestyle and wellness direct selling company, proudly announces its victory in three distinguished categories at the 11th annual PR  Awards. Demonstrating its prowess in crisis management, corporate strategy, and technological innovation, QNET is setting new standards for excellence in Direct Selling.

This year, QNET was honoured with the following recognitions:

Silver Award for Best Corporate Strategy – An endorsement for QNET’s Fingreen financial literacy programme that has been rolled out in three countries over the last 18 months and has helped over 7000 people, including college students, home makers, street vendors, and female small traders, with the tools they need to take charge of their financial future.

Silver Award for Best Use of Technology – An important recognition for QNET’s QBuzz Blog, an innovative platform that leverages technology to foster community engagement and provide insightful company and industry content.

 Bronze Award for Best Crisis Management Strategy – Celebrating the success of the “Truth About QNET” campaign, which effectively navigated the company through challenging times with transparency and integrity.

The PR Awards, renowned for highlighting the best in the PR and communications sector across South Asia, Southeast Asia, and Oceania, saw entries from the most prominent brands and organisations in the region. An independent panel of senior industry experts from leading brands selected this year’s winners, underscoring the credibility and prestige of the awards.

Trevor Kuna, Chief Transformation & Reputation Officer at QNET, expressed his enthusiasm: “We are profoundly honored by the recognition at the PR Awards 2024, which reflects our unwavering dedication to excellence, innovative strategies, and our commitment to providing outstanding value to our customers.

“These awards are a testament to the hard work and ingenuity of our team, and they motivate us to continue setting new benchmarks in the industry.”

QNET’s success at the PR Awards is not just a celebration of its achievements but also a promise to its stakeholders of its dedication to excellence and innovation. As the company looks forward to future challenges and opportunities, it remains committed to upholding the highest standards of quality and service in the industry.

For more information about QNET and its achievements, please visit QNET’s website.

 

 


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Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

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Bismarck Rewane, managing director/chief executive officer, Financial Derivatives Company Limited has backed telecommunication companies’ move to increase tariffs.

Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

Recall that telecom companies recently reiterated calls for an increase in prices of calls, data, and other services.

They argue that current prices are insufficient to maintain their business operations.

This request is contained in a communique signed by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).

The telecom providers are advocating for cost-reflective tariffs, claiming that adverse economic headwinds are threatening their financial viability.

The operators stated that its general service pricing framework has not been reviewed upward in the last 11 years because of regulatory constraints.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the telcos said.

The telcos called on the government to facilitate a constructive dialogue with its industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with their financial viability.

This push for higher prices coincides with MTN Nigeria reporting a loss due to foreign exchange losses in 2023 and Airtel experiencing declining profits amid an economic downturn in the country.

While the development has triggered a backlash in some quarters, Rewane said telco pricing needs to reflect current realities.

He was a guest on weekend’s edition of Channels Television’s Politics Today

 

 

 

 


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