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

Hello Lauri,
Thank you clarifying the technologies of interest to the group!
Best,
Mira


On Tue, Aug 11, 2009 at 12:16 PM, <Lauri.K.Hirvonen@nokia.com> wrote:

>  I'll like to comment on Mira's question.
>
> I feel, WiMAX is out of our scope. This was talked in yesterday cc, but
> I'll like to add, that WiMAX is still today "future technology". There is
> no
> mass market for WiMAX today. There are now low-cost mobile
> WiMAX devices available today.
>
> We agreed early in our WG, that we focus on current available technology
> and we provide additional information how to deliver useful content
> (applications) to users at low cost way.
>
> Even in GSM technology (as well in CDMA) there are scalability.
> Not all networks have all the features. This is the reason
> we cover multiple levels of networks like:
>
> 1) Basic GSM (voice, data, SMS)
> 2) GPRS
> 3) EDGE
> 4) UMTS (3G, W-CDMA)
> 5) HSDPA
> The speed of data communication increases in all levels from Basic GSM to
> HSDPA.
> Higher data speed allows more rich applications. But as HSDPA is the latest
> technology
> it is now available mostly in "big cities". Not in rural areas.
>
> Br. Lauri
>
>  ------------------------------
> *From:* ext Mira Slavova [mailto:mira@mmd4d.org]
> *Sent:* 10 August, 2009 13:27
> *To:* Hirvonen Lauri.K (Nokia-CIC/Espoo)
> *Cc:* boyera@w3.org; yoshiko.kurisaki@icvolunteers.org; jbrewer@w3.org;
> public-mw4d@w3.org
> *Subject:* 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
>>
>


-- 
Dr Mira Slavova

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