Telecommunications Policy Research Articles

Connecting the Unconnected: The Case of Mexico's Wholesale Shared Network

The Wholesale Shared Network (WSN) is the Mexican project intended to provide broadband access to 92.2% of the population. While most of the territory (94%) is already covered by the incumbent’s voice coverage, the Mexican Government has recently launched a call for tenders to rollout a nationwide mobile wireless wholesale network using the digital dividend frequencies (700 MHz). The successful bidder will not be able to provide retail services directly or offer services to the incumbent. Since the Telecommunications Reform was initiated in 2013, telecommunication policies have been engaged in promoting competition and affordability, which is overwhelmingly reported as the main barrier to the adoption of mobile broadband services. In this paper, we explore the potential of the SWN to connect the unconnected in Mexico, discussing how the shared network may affect both the supply and demand of mobile wireless broadband services.

The Devil is in the Details: Lessons from the Indian Spectrum Auctions

The Indian telecom growth as in other countries, largely driven by mobile, saw its teledensity reach nearly 87% by 2016 over a population base of nearly 1.2 bn. As is the trend globally, spectrum has become a critical resource for further growth in the sector, especially with greater demand for data. In India, the initial slow growth was largely attributed to the Department of Telecommunication’s (DoT) design of auctions and the mismatch of the auction outcomes with the market reality. Limited amount of spectrum made available for mobile services and high population densities created a spectrum crunch. Further, given the potential of growth in the market and telecom policies that encouraged competition led to about 10-14 service providers per state creating a further pressure on spectrum. In addition, difficult exit rules and M&A guidelines reduced the scope for consolidation, creating operational and financial pressure for operators. These factors influenced bidding/acquisition of spectrum. From 1995-2010, India largely adopted spectrum auctions other than in 2007-08 when it adopted first-come-first-serve (FCFS) policy for 2G. In 2010, it adopted a sophisticated simultaneous multiple round (SMRA) auctions for 3G. Subsequently, a Supreme Court judgment in 2012 canceled all licenses awarded through FCFS and mandated that all spectrum had to be allocated through auctions. Subsequent auction designs have used SMRA for different bands. The last auction was in 2016. It was a multi-band auction covering 700MHz, 800MHz, 900 MHz, 1800 MHz, 2300 MHz, and 2500 MHz. The 700 MHz band, which is a valued band for 3G and 4G saw no buyers and the 2500 Mhz band which did not have a well developed ecosystem saw significant competition and was allocated. The above raises issues about the efficacy of auction design. While the DoT accepted SMRA as an efficient and effective auction mechanism, it recognized that the specific design elements such as reserve price, withdrawal rules, stopping rules, minimum bid increments have influenced bid outcomes. These parameters needed to incorporate the context of the auction such as requirements of spectrum for different bidders, expectations about future availability, competitor’s bidding strategies, whether single or multiple bands, etc. We plan to document the spectrum auction design, bidder strategies and outcomes, for the auction held in 2016. This auction provides a rich backdrop for the study as it was held in an environment where several prior auctions that had poor outcomes in terms of participation, bid amounts and amount of spectrum made available and new regulations regarding spectrum sharing and trading had become operational. The competitive environment had also changed significantly with possibilities of future M&A. We shall identify the learning from the analysis so as to help with the subsequent auction designs. Such recommendations will also take into account developments in this space in other countries. Methodology: We shall follow the case based approach and document the same using secondary sources of data.

Reclaiming Geospatial Data and GIS Design for Indigenous-led Telecommunications Policy Advocacy: A Process Discussion of Mapping Broadband Availability in Remote and Northern Regions of Canada

Abstract Geographic Information Systems (GIS) and geospatial data are important advocacy tools adopted by a range of users, including telecommunications policy advocates. However, without the means to actively deconstruct and reshape such platforms, reclaim the geospatial data they utilize, and generate the visualizations they produce, the increasing adoption of these resources threatens to disempower some community-based user groups. In this article, we argue that the processes used to design such tools for policy advocacy must transparently reflect the socially constructed nature of the GIS systems and the geospatial data visualizations they generate, as well as the values and goals of the specific user groups they are designed to support. We ground this argument in a case study of a regulatory hearing on telecommunications infrastructure and services in Canada, and introduce a freely available online resource that documents our GIS design workflow in more detail.

Reclaiming Geospatial Data and GIS Design for Indigenous-led Telecommunications Policy Advocacy: A Process Discussion of Mapping Broadband Availability in Remote and Northern Regions of Canada

AbstractGeographic Information Systems (GIS) and geospatial data are important advocacy tools adopted by a range of users, including telecommunications policy advocates. However, without the means to actively deconstruct and reshape such platforms, reclaim the geospatial data they utilize, and generate the visualizations they produce, the increasing adoption of these resources threatens to disempower some community-based user groups. In this article, we argue that the processes used to design such tools for policy advocacy must transparently reflect the socially constructed nature of the GIS systems and the geospatial data visualizations they generate, as well as the values and goals of the specific user groups they are designed to support. We ground this argument in a case study of a regulatory hearing on telecommunications infrastructure and services in Canada, and introduce a freely available online resource that documents our GIS design workflow in more detail.

The digital divide: Patterns, policy and scenarios for connecting the ‘final few’ in rural communities across Great Britain

The Internet can bestow significant benefits upon those who use it. The prima facie case for an urban-rural digital divide is widely acknowledged, but detailed accounts of the spatial patterns of digital communications infrastructure are rarely reported. In this paper we present original analysis of data published by the UK telecommunications regulator, Ofcom, and identify and reflect on the entrenched nature of the urban-rural digital divide in Great Britain. Drawing upon illustrative case vignettes we demonstrate the implications of digital exclusion for personal and business lives in rural, and in particular remote rural, areas. The ability of the current UK policy context to effectively address the urban-rural digital divide is reviewed and scenarios for improving digital connectivity amongst the ‘final few’, including community-led broadband, satellite broadband and mobile broadband, are considered. A call is made for digital future proofing in telecommunications policy, without which the already faster urban areas will get ‘faster, fastest’ leaving rural areas behind and an increasingly entrenched urban-rural divide.

China and Africa: Alternative Telecommunication Policies and Practices

The Beijing Consensus is said to be a win-win for China and Africa. China has become a major force in global telecommunications markets, as a manufacturer, a content provider and in delivering services to its citizens. While the relationship between China and Africa has been explored in many areas, telecommunications has been ignored, despite its strong domestic performance, as well as the presence of Chinese equipment in African networks and in the hands of consumers. China has not exported its domestic model of competing state-owned operators, nor have those operators followed the “going out” strategy. However, manufacturers have benefitted from the Washington Consensus model of oligopolistic markets. In countries with higher risks, they have been aided by Chinese development banks and intergovernmental agreements. In a new policy model, for the Comoros and Ethiopia, Chinese firms have taken on outsourcing of network functions for the state-owned operators. Additionally, manufacturers have found several channels to supply feature-phones and smartphones at low prices, helping to widen access. Absent from African markets are the providers of Internet content and apps. There is very little evidence of spillover effects, with little knowledge being transferred. China has won from hardware sales in Africa, while Africans have won wider access to telecommunications, including states rejecting the Washington Consensus model.

The Evolution of “Competition”: Lessons for 21st Century Telecommunications Policy

For over a century, assessments of competition or the lack thereof have been central to how public policy treats the telecommunications industry. This centrality continues today. Yet, numerous foundational questions about this concept persist. In this paper, we chronicle how the definition of “competition” has evolved in economics and has been applied in the communications arena. The academic literature on competition hits an important inflection point in the mid-20th century with the development of “workable competition”: a term that is equated to “effective competition.” We find that while the concept of “effective competition” is central to policy formation at the FCC, the Commission’s own applications of “effective competition” are inconsistent. Given the centrality of this concept, and its inconsistent applications to date, we draw upon the seminal contributions to the development of the notion of “effective competition” to offer a modern definition suitable for application in 21st century communications markets.

The evolution of the telecommunications policy agenda: Forty years of articles in Telecommunications Policy

This paper investigates the evolution of the telecommunications policy agenda by means of text mining forty years –from 1976 to 2016– of papers in the journal Telecommunications Policy. Text mining techniques help identify the key topics, the dominant combinations of concepts and the main areas of research within this multidisciplinary –technical, economic, social, policy– discipline. In addition they depict an evolution of the policy agenda more nuanced than the conventional public service, pre-competition and post-liberalisation stages typical of telecommunications. Also, in combination with bibliometric information, the results display the relationships between areas of research and methodologies, countries and authors’ background, all together providing a deeper understanding of the past, present and future avenues for research in telecommunications policy.

Blurred Lines: National Security and the Civil-Military Struggle for Control of Telecommunications Policy during World War II

The study of a collision between the U.S. Navy and the Federal Communications Commission during World War II reveals a complex story about the boundaries between civilian and military agencies, the role of the regulatory state in wartime, and the challenges of balancing the nation’s privately held international communications capabilities against the government’s wartime requirements across the boundaries from peace to crisis to war. Unresolved during World War II, the collision laid bare questions that continue to challenge policy makers concerned with protection of information networks in the present era.

A Short Note on Brexit: Telecommunications Issues after the Referendum

In a referendum on 23rd June 2016, the United Kingdom (UK) voted for ‘Brexit’, i.e., to leave the European Union (EU). After some delay the government will invoke Article 50 TEU, which would begin a two-year period of negotiation for a withdrawal agreement, after which the EU treaties would no longer apply. The ‘Norway Option’ would result in signing the European Economic Area (EEA) Treaty, re-imposing most of the obligations and costs of EU membership, while removing almost all democratic mechanisms, but ensuring access to the single market. The ‘Albania Option’ would fall back on World Trade Organisation commitments, allowing the government considerable freedom to develop new policies and laws, but with limited access to the single market. The ‘Switzerland Option’ lies between the two.The effects for telecommunications markets, legislation and policies are potentially considerable, but depend on how the government uses the freedom from no longer being bound by the EU acquis. While it might be innovative, it is unclear in which direction this might go, nor is it obvious where the benefits might lie.Withdrawal creates a number of legislative holes, with innumerable references to EU institutions and to its objectives (e.g., completion of the single market), which would need to be filled. Some legislation (e.g., state aid rules and the list of markets subject to ex ante regulation) would disappear, potentially requiring ‘transposition’ into domestic law. With these go significant risks of litigation, a well-known problem in the sector.While ministers have promised that rates for international mobile roaming would not rise, operators would almost certainly lose access to the regulated wholesale rates in the EU-27. Indeed, there would be strong commercial incentives on both sides to raise wholesale rates for those roaming from the United Kingdom to the EU and vice versa. While the operators might try to negotiate alternative deals, there seem only limited chances of success.The repatriation of policy-making and legislative scrutiny from the EU institutions would require ‘beefing up’ of governmental and parliamentary capabilities. It would also require a much deeper engagement with business users and consumer groups, not least to counter the expert lobbying of the operators. Additionally, it would be important to boost the provision of independent views, both from academic researchers and think tanks. Without a rich debate on policies for telecommunications, any potential benefits of Brexit could easily be lost, with the greatest risk being in a mishandled transition.Scotland is “highly likely” to have a second plebiscite, potentially becoming independent, perhaps inside the EU or left outside. In any event, it would need a ministry, regulatory authority, system of appeals and parliamentary oversight, for which no plans exist.

Some Thoughts about Australian Telecommunications

Australia is facing numerous challenges in its attempt to upgrade its telecom infrastructure. This paper summarizes the little-known and even less understood history of telecom development in the USA. The authors believe this may provide useful ideas for Australian telecom policy and development that have not yet been considered.

Some Thoughts about Australian Telecommunications

Australia is facing numerous challenges in its attempt to upgrade its telecom infrastructure. This paper summarizes the little-known and even less understood history of telecom development in the USA. The authors believe this may provide useful ideas for Australian telecom policy and development that have not yet been considered.

How Europe missed the mobile wave

Purpose The purpose of this paper is to provide an interpretative framework for the high market capitalisation companies (unicorns) universe, especially with the deployment of the mobile internet. The paper attempts to account for this global trend and to describe its global setting (global data), and its various components. Design/methodology/approach This paper originates from a research meant to document the phenomenon of high market capitalisation companies (unicorns) through the investigation of a qualitative sample of companies. The paper is based on desk research, a review of literature, review of the technical journals and analysis of annual reports. Going beyond the observations gathered from the sample, the research found that the transformations of the mobile communications ecosystem could provide an adequate framework to understand and put in perspective this phenomenon. Findings The paper defined unicorns as information technology (IT)-based (software mostly but hardware as well) start-ups that bridge pent-up demand and supply through innovative services and products mostly rooted in the mobile internet wave and the opportunities it brings along. The paper shows that smartphones as games changers facilitate the entry of new players in the mobile markets coming either from the IT sector or from Asia, much to the detriment of the European Union (EU) industry grappling with legacy business models. These companies derived the most from a mobile-first approach and have an outstanding number of unicorns. The paper identifies a potential telecom policy failure especially in the EU: policies have been tilted towards the supply side, without enough consideration of demand. The paper suggests that the EU, after having lead the previous wave, may have missed the last one (mobile broadband) not only from a policy but also from an industry viewpoint. Research limitations/implications More research should be done to better investigate what might have been the causes of this apparently missed mobile turn in Europe. The paper deals mostly with the cases of Asia and the USA. As the paper concentrates on the issue of unicorns and mobile technology, some other aspects of the mobile markets may not be taken into account. Practical implications The paper suggests reconsidering some policies in the field, to better take into account the role of consumers and to improve the link with other policies like innovation policies. Social implications The paper attempts at giving a better understanding of the evolution of demand and its role in the making of some new services. The paper does not deal with other societal issues like privacy or data. Originality/value The main assumption about the role of the mobile internet can shed some light not only about related developments such as the app economy but also about the business and technological environment of an array of start-ups, some of them having reached impressive market capitalisation. The paper reveals how this mobile wave is reshuffling companies, sectors, and geographies. The paper provides one of the first analysis of the unicorn phenomenon.

Conditions for inclusive innovation with application to telecom and mobile banking

ABSTRACTAn innovation is defined to be inclusive if it is affordable and increases productivity. Three ways of facilitating inclusion through such innovation in emerging and developing economies are derived analytically. First, invest in inducing more technical change in products the less well-off use. Second, improve capital or skills available to them. Third, reduce their transaction costs. Both the second and the third increase market size for inclusive innovation, thus promoting it through markets. An example of the second is better public provision of relevant infrastructure and of the third is better regulatory design. Absence of such a focus in Indian telecom and mobile banking policy limited market size. Poor Internet infrastructure constrained development of mobile services. Higher transaction costs explain India’s slow start in mobile banking, compared to Pakistan.

A Short Note on Telecommunications Issues Related to Brexit

Brexit, the United Kingdom (UK) leaving the European Union (EU), is the subject of a referendum in June 2016. A vote to leave would result in the government invoking Article 50 TEU, which would begin a two-year period of negotiation for a withdrawal agreement, after which the EU treaties would no longer apply. The unpopular ‘Norway Option’ would result in signing the European Economic Area (EEA) Treaty, which would re-impose most of the obligations and costs of EU membership. Otherwise, there would be considerable freedom for the government to develop new policies and legislation, subject to whatever trade agreements it could reach with other countries.The effects for telecommunications markets, legislation and policies are potentially considerable, but depend on how the United Kingdom government acts with the freedom that follows from no longer being bound by the EU acquis. While it might be innovative, it is unclear how or in what direction that might take its policies. Indeed it is not immediately obvious in which direction the benefits might lie.Withdrawal creates a number of legislative holes, with innumerable references to EU institutions and to its objectives (e.g., completion of the single market), which would need to be filled. Some legislation (e.g., state aid rules and the markets subject to ex ante regulation) exist only the EU acquis, which disappears with Brexit, potentially requiring ‘transposition’ into domestic law. While ministers have promised that rates for international mobile roaming would not rise in the event of Brexit, operators would almost certainly lose access to the regulated wholesale rates in the remaining member states. Indeed, there would be strong commercial incentives on both sides to raise wholesale rates for those roaming in the EU and in the European Union. While the operators might try to negotiate alternative deals, there are no precedents for success and precious few for governments in the European periphery.The repatriation of policy-making and legislative scrutiny from the EU institutions would require ‘beefing up’ of governmental and parliamentary capabilities. It would also require a much deeper engagement with business and consumer groups, not least to counter the special pleading of the operators, which have considerable expertise and experience in lobbying. Additionally, it would be important to boost the provision of independent views, both from academic researchers and think tanks. Without a rich debate on policies for telecommunications, the potential benefits of Brexit would be lost, with the greatest risk being in a mishandled transition.

A Bottom-Up Look at Internet Governance Starting with Organizational Uses of Social Media Platforms

Internet governance has historically been conceptualized at an international level (van Eeten & Mueller, 2012) where a small set of officially recognized institutions, such as ICANN, IGF, and W3C, establish a very broad set of rules intended to promote and facilitate some uses of the internet and prohibit or constrain others. Stakeholders representing business, civic society and government exert influence over the construction of the rules through their status as direct participants in the rulemaking process, through their access to direct participants, or their influence over those with access to those with access to direct participants. A dynamic understanding of internet governance thus requires that we look at how the interests at all levels of this chain of influence are reflected in decisions made, institutions created, and positions taken by participants at each level (Williamson, 1996). The lower levels of this process have been understudied and under-conceptualized. This paper is an attempt to fill some of that gap.The Internet and its many uses constitute a nested sociotechnical system (STS) and Internet governance can be viewed as a set of outcomes that reflect decisions made by actors at each level of the system. At the top level, organizations like ICANN set very broad rules of the road. These constrain actions that can be taken by lower level actors. Rules, whether formally stated or norms that evolve, serve to further constrain activities that individuals and organizations can engage in. Rules emerge to facilitate coordination among the actors that agree to use them. As we move from higher levels to lower levels of the governance stack, new rules are introduced that are limited to those who voluntarily agree to use them. Each set of rules preserves some range of freedom for action within the rules. However, there still may be narrower sets of activities that further constrain what can be done among this further reduced set of actors. Social media platforms are one context in which actors function within a set of rules and implement a set of rules. We examine how organizations govern their carved out social media space within the larger Internet governance framework and consider methods for assessing the effects of organizational-level governance (Garicano & Rayo, 2016; Williamson, 2002) on individual users and on coordination among them in service of organizational goals. We propose a conceptual framework for understanding what happens at these lowest levels, how this is impacted by decisions higher up, and how interests of organizational users of social media are reflected in the usage rules and capabilities developed by social media services (DeNardis & Hackl, 2015; Obar & Wildman, 2015).Findings reported focus on organizational uses of social media by the local county government of Oakland County, Michigan. Oakland County takes a multi-pronged strategy in governing social media through the implementation of a county-wide social media policy and department level social media accounts and controls. The county adheres to higher level governance from social media platforms, but also initiates social media governance within its space.ReferencesDeNardis, L., & Hackl, A. M. (2015). Internet governance by social media platforms. Telecommunications Policy, 39(9), 761–770. http://doi.org/10.1016/j.telpol.2015.04.003Garicano, L., & Rayo, L. (2016). Why Organizations Fail: Models and Cases. Journal of Economic Literature, 54(1), 137–192. http://doi.org/10.1257/jel.54.1.137Obar, J. A., & Wildman, S. (2015). Social media definition and the governance challenge: An introduction to the special issue. Telecommunications Policy, 39(9), 745–750. http://doi.org/10.1016/j.telpol.2015.07.014van Eeten, M. J., & Mueller, M. (2012). Where is the governance in Internet governance? New Media & Society, 15(5), 720–736. http://doi.org/10.1177/1461444812462850Williamson, O. E. (1996). The Mechanisms of Governance. Oxford University Press.Williamson, O. E. (2002). The Theory of the Firm as Governance Structure: From Choice to Contract. Journal of Economic Perspectives, 16(3), 171–195. http://doi.org/10.1257/089533002760278776

The Evolution of 'Competition': Lessons for 21st Century Telecommunications Policy

Assessments of competition or the lack thereof have been central to the evolution of public policy toward the telecommunications industry for over a century. This centrality continues today. Even so, numerous basic and profound questions persist regarding the definition and measurement of competition, as well as appropriate institutional oversight mechanisms for competition policy. In this paper, we chronicle the evolution of the “competition” concept in economics and also examine how “competition” has been defined in the communications policy arena. We find that the academic literature on competition hits an important inflection point in the mid-twentieth century with the development of the concept of “workable competition,” a term later equated to “effective competition.” Through careful examination and analysis of historical FCC regulations, we find that while the concept of “effective competition” is central to policy formation at the FCC, the Commission’s own applications of “effective competition” are inconsistently applied. Given the centrality of this concept, and its inconsistent applications to date, we draw upon the seminal contributions to the development of the notion of “effective competition” to proffer a straightforward and robust modern definition that we believe is suitable for application in twenty-first century communications markets.

Operators at crossroads: Market protection or innovation?

Many today believe that the mobile Internet was invented by Apple in the USA with their iPhone, enabling a data-driven Internet ecosystem to disrupt the staid voice and SMS business models of the telecom carriers. History, however, shows that the mobile Internet was first successfully commercialised in Japan, in 1999. Some authors such as Richard Feasey in Telecommunications Policy (Issue 6, 2015) argue that operators had been confused and unprepared when the Internet emerged and introduced “walled gardens”, without Internet access. This comment article reviews in detail how the operators reacted when the fixed, and later the mobile Internet spread: some introduced walled gardens, some opened it for the “unofficial” content on the Internet. The article concludes that most large European telecom and information technology companies and their investors have a tradition of risk avoidance and pursued high-price strategies that led them to regularly fail against better and cheaper foreign products and services, not only when the wireless Internet was introduced, but also when PCs and the fixed Internet were introduced. Consequences, such as the need to enable future disruptions and boost the skills needed to master them, are presented.

White space: Definitional perspectives and their role in exploiting spectrum opportunities

The U.S. Federal Communications Commission (FCC) defines white space as the channels that are unused at a specific location or time. For futuristic cognitive radio (CR) based applications and communication networks, white space detection plays an important role. In fact, the proper white space understanding is a prerequisite for effective communication in support of a wide range of information technology systems. Moreover, by clearly defining the white space, the business and technical scenarios for white space usage can be clearly defined and their implementation will be simplified. Also, the decisions of regulatory bodies and telecommunications policy makers for auctions of particular spectrum bands can be facilitated by a thorough white space understanding. White space detection is a critical aspect of Dynamic Spectrum Access (DSA) which ultimately can help in overcoming bandwidth shortages. A major portion of the DSA research to date has been limited to the dimensions of time, frequency, and geographical location while neglecting other perspectives for the detection of white spaces. Generally, what exactly is a white space and how do white spaces differ in various modern contexts of wireless networks? This paper strives to answer these questions by reviewing the conventional white space definitions and exploring advanced perspectives on white spaces that can be used for CR communications. We propose a novel classification of white spaces based on the combination of three perspectives, namely signal dimension, licence, and transmission strategy, and outline open areas for future research on exploiting white spaces for CR communication.

The case study in telecommunications policy research

Purpose The purpose of this paper is to examine the use of case studies in telecommunications policy research (TPR) and to compare and contrast usage with management, management information systems (MIS) and policy analysis. Design/methodology/approach This paper conducts a comparative analysis that examines the methodologies used to design and select case studies and the various theories used in their analysis. Findings The most sophisticated use of case studies is in management information systems (MIS), distinguishing critical realism, interpretivism and positivism to build theories. In policy analysis and TPR, theories are used to explain case studies, which are chosen as interesting sets of phenomena, rather than as means to extend, falsify or verify theories. Research limitations/implications Researchers in telecommunications policy should consider the approaches taken in MIS to determine whether they might improve their rigor. There is also scope for meta-analyses of the existing pool of case studies. Originality/value This appears to be the first article examining the use of case studies in TPR.