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GSMA Report Reveals Economic Benefits of Shared Spectrum License

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The GSMA yesterday issued a new report indicating that shared spectrum can complement but in no way replaces the need for exclusive-access spectrum in the provision of mobile broadband.

The report, “The Impacts of Licensed Shared Use of Spectrum”, developed by Deloitte, highlights how strict limitations associated with Licensed Shared Access (LSA) spectrum agreements – such as shorter terms, build obligations, lack of certainty and small allocations – can significantly reduce the likelihood of a mobile operator to invest.

This means that the potential economic benefits derived from spectrum sharing are ultimately lower than those achieved through exclusive-access spectrum.

“The GSMA commends efforts by regulators around the world to rapidly find a solution for the current spectrum crunch,” said Tom Phillips, Chief Regulatory Officer, GSMA.

“While sharing schemes could provide a complementary approach to ease rapidly growing demand for spectrum, exclusive access to spectrum for mobile use is the optimal regulatory approach, providing the necessary market certainty to stimulate investments in networks and services.”

The report is based on a model that assesses the prospective value of two potential Licensed Shared Access scenarios: the release of 50MHz in the European Union in the 2.3GHz band from 2020 and of 100MHz in the 3.5GHz band in the United States from 2016. The many variables involved and the additional risks, complexities and uncertainties involved wit

h spectrum sharing mean that each sharing opportunity should ideally be evaluated on a case by case basis, making a generalised approach impossible. Findings from the report include: European Union:

Exclusive licensed spectrum in the 2.3GHz band could add €86 billion (US $116 billion) to the EU’s economy in the period 2016-2030.

Shared licensing could sharply reduce economic benefits to €70 billion (US $95 billion) or as low as €5 billion (US $6.7 billion), due to a lack of common approach in spectrum allocation across the Member States, combined with significant geographic and timing exclusions as well as potential contracting limitations.

For the same time period, exclusive spectrum licensing in the 3.5GHz band would add US $260 billion (€192 billion) to the US economy.

In the case that sharing terms strictly limit the use of spectrum by mobile operators, this value would be sharply reduced to US $210 billion (€155 billion) or as little as US $7 billion (€5 billion).

The report is released amidst continued rapid growth in mobile traffic and consumer demand for smartphones, tablets and other devices that provide access to communications and information services.

The study further finds that the release of exclusive-access spectrum for mobile broadband offers wider socio-economic benefits for the United States and European Union over the period 2016-2030, including future job creation.

It is estimated that the deployment of mobile broadband would generate approximately 2.1 million jobs in the US and nearly 1.6 million jobs in the EU across this period. “Spectrum is the lifeblood of the mobile industry.

To attract investment and reap the full economic benefits of mobile broadband, regulators need to provide access to a critical mass of spectrum,” continued Phillips. “For the EU and US, this can be achieved through the harmonisation of bands, on similar contractual terms and conditions, as well as limited geographic and timing exclusions.

For these reasons, shared spectrum is not a substitute for exclusive-access spectrum, and governments and regulators should not fully rely on shared spectrum for the provision of mobile broadband in the future.”


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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