ACHIEVING DIGITAL BANGLADESH
Affordable spectrum prices must, says GSMA
Staff Reporter
Digital Bangladesh will be difficult to achieve without an affordable and predictable access to sufficient radio spectrum, says a new GSMA report.
By embracing spectrum policy that focuses on these two aspects, Bangladesh has the opportunity to facilitate a more rapid adoption of next-generation network services, the report adds.
High spectrum prices hamper network investment and limit the growth of the digital economy, making it harder to realise the social and economic benefits of connecting people, said Brett Tarnutzer, head of Spectrum, GSMA.
The GSMA, originally a European trade body that represents the interests of mobile network operators worldwide, recently forecast that mobile broadband connections in Bangladesh could increase to 82 per cent by 2025, if the right policy framework is provided.
In February 2018, policymakers took an important step towards introducing 4G/LTE services in the country through technology neutrality at an extra fee and auctioning additional spectrum.
However, the reserve prices were extremely high and only 33 per cent of the spectrum available in the auction was sold. According to the GSMA study, when adjusted for GDP per capita in Bangladesh, the auctions reserve (opening) prices were set at levels that were almost three times the Asia Pacific average final prices for spectrum over the period 20002017.
In Bangladesh, the governments Digital Bangladesh programme is aimed at driving socio-economic transformation through information and communication technology. A sound spectrum policy will go a long way towards realising these bold ambitions. Specifically, policymakers should ensure that there is a clear plan for the timely release of future spectrum and fair prices for access to that spectrum to facilitate better quality and more affordable services.
A failure to sell spectrum in previous auctions highlights the importance of setting reserve prices for future spectrum auctions in Bangladesh at levels that consider operators ability to finance spectrum and deploy new infrastructure to use that spectrum to provide services to consumers.
Better spectrum pricing policies are needed in developing countries to improve the economic and social conditions of billions of people who remain unconnected to mobile broadband services, according to the new GSMA report, Spectrum Pricing in Developing Countries.
The study revealed that the final spectrum prices in developing countries are, on average, more than three times higher than in developed countries, when income is considered. This high spectrum pricing is a major roadblock to increasing investment and mobile penetration.
The report also identified a link between high spectrum prices and poorer coverage, as well as expensive and poor mobile broadband services prevent consumers from availing these services.
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 the 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 Thailandall markets where spectrum licensing is a
priority.
