Re: Mobile network costs -- was -- MW4D & Accessibility

Dear All,

Big thanks to Lauri for sharing his view of competition in the mobile
industry!
Given the recovery rates of the set-up costs of mobile networks in rural
areas, I was wondering how the group sees the potential for the use of WiMAX
in rural areas. Do you think that it might be a technology relevant to our
roadmap?

Thanks,
Mira

On Mon, Aug 10, 2009 at 10:29 AM, <Lauri.K.Hirvonen@nokia.com> wrote:

> Hello team
>
> I like to comment the cost (of operation of
> the mobile network).
>
> In less populated areas, it is very expensive
> to build mobile networks.
>
> In cities, big cities, it is much cheaper.
> (= more users to share the cost of
> building and operating mobile network.)
>
> This is also true in more developed countries
> like Finland. It is always the highest populated
> areas, that are built first. The less populated
> areas are the last one to be built.
>
> The government of Finland has mandated the
> mobile phone operator to offer services also
> to less populated areas. Operator do it by
> increasing the charges to everyone which
> allows them to built mobile coverage to
> less populated areas, where the pay-back
> by it's use is low. So populated cities
> are covering also the cost of running
> rural areas.
>
> This allows that the voice call tariffs are
> the same in big cities and in rural areas.
>
> I have heard, that in some "developing countries"
> the first operator to build a mobile network
> do make a contract with country government.
>
> Typically those contracts gives them "monopoly"
> for certain period. That means, that the government
> will not give license to an other mobile network
> operator. So no competition.
>
> But also government want their share. In many
> countries the mobile phone is listed in luxury
> item category and the taxation is high. They
> charge import custom tax for the product and
> it can be very high. (So end user has to pay
> higher price.) Also the mobile operator's
> center equipment can have this high import
> tax. It makes it for operator more
> expensive to pay back, this means again
> higher prices to users.
>
> This is often the situation to have the first
> mobile network in the country. Later when the
> "first operator is profitable and managed
> to cover most of the building costs" the country
> can allow new mobile operators to enter
> the country mobile market. This then
> increases competition and usually lower
> the price for use of mobile phone.
>
> It would be nice if organization like "World Bank"
> could offer loan for operator to built
> mobile network. The loan could be negotiated
> to cover longer period (to pay it back). This
> means, operator can offer the mobile service
> to users with lower prices.
>
> Br. Lauri
>
> >-----Original Message-----
> >From: public-mw4d-request@w3.org
> >[mailto:public-mw4d-request@w3.org] On Behalf Of ext Stephane Boyera
> >Sent: 06 August, 2009 13:10
> >To: Yoshiko Kurisaki
> >Cc: Judy Brewer; public-mw4d@w3.org
> >Subject: Re: MW4D & Accessibility
> >
> >Dear Yoshiko,
> >
> >thanks for your support.
> >
> >> Allow me to propose another point of accessibility, Network
> >> accessibility
> >
> >This is indeed a very important point. This is not really
> >accessibility in the sense it is described in the 6.1.1
> >section, but the cost, due to monopoly is clearly an issue;
> >This will be covered in section 6.1.5 around costs
> >
> >best
> >Stephane
> >
> >--
> >Stephane Boyera                stephane@w3.org
> >W3C                            +33 (0) 5 61 86 13 08
> >BP 93                          fax: +33 (0) 4 92 38 78 22
> >F-06902 Sophia Antipolis Cedex,
> >France
> >
> >
>



-- 
Dr Mira Slavova

ICT4D Consultant
Mobile Market Design 4 Development
mmd4d.org
++44 (0)7734 408829