Business Wire

Spectrum Policies Impacting Quality of Mobile Services to Consumers in Latin America, Warns New GSMA Report

Jaa

The GSMA today issued a new report, ‘Effective Spectrum Pricing in Latin America: Policies to support better quality and more affordable mobile services,’ highlighting that spectrum policies in Latin America are impacting the delivery of quality mobile services to consumers across the region.

The new report, which examines spectrum pricing trends in 15 countries across Latin America, underscores how decisions made by regulators on spectrum pricing can have a negative impact on the quality and cost of mobile broadband services. While auctions remain an effective means of awarding spectrum, regulators should adopt spectrum policies that focus on maximising long-term benefits for society, rather than driving up the cost of spectrum for short-term gain. In Latin America, steep spectrum prices, which are almost twice as high as in Europe, put serious financial pressure on the industry, impacting the delivery of next-generation networks.

“Latin American countries that do not make spectrum available for 4G and 5G networks and artificially inflate the price are holding back their digital economies, not closing the digital divide and hurting consumers,” said Sebastian Cabello, Head of Latin America, GSMA. “Operators require fair access to sufficient radio spectrum in order to deliver high-quality and affordable mobile broadband services. Governments and regulators must adopt policies that support this in order to help their local digital economies to grow.”

Appropriate Spectrum Policies

High prices for capacity spectrum at auctions are largely due to policy decisions rather than market forces, with regulators effectively setting the price for spectrum up front, according to the report. This approach has inflated prices in Latin America, which are approximately 60 per cent higher than in Europe.

The amount of spectrum allocated to mobile operators in Latin America is still well below Asian, European and North American markets, and as a result, spectrum auctions in the region are often conducted in an environment of spectrum scarcity1 and uncertainty. Future availability of frequencies forces mobile operators to accept these higher prices to ensure long-term competitiveness in their respective markets. Many Latin American countries also have a mixed track record of making spectrum available in a timely manner and making commitments regarding future releases.

“Latin American countries must set policies that encourage the development of next-generation networks and give consumers affordable access to mobile services,” continued Cabello. “Consumer demand for mobile data services continues to grow, but unless governments and regulators manage spectrum efficiently and make the process more transparent, affordable and achievable for operators, costs will not decrease sufficiently and consumers will not see the benefits.”

A High Price to Pay

The report confirms the link between the total spend on spectrum and the price of data, arguing that lower spectrum costs would have a positive impact on the adoption of consumer and enterprise services. It also suggests that high costs may also prevent incentives for price competition. Other issues relate to high reserve prices, annual licence fees, short licence terms, inappropriate coverage obligations and uncertainty about renewals and new awards.

Spectrum Pricing Policy Best Practice

The report encourages Latin American governments and regulators to assess how their policies impact the price and availability of spectrum, particularly as 4G and 5G networks require increasing amounts of spectrum. Appropriate policies will improve access to broadband, while delivering benefits to society, such as bridging the digital divide and growing the digital economy. Specifically, the report recommends the following key policy recommendations:

1. Set modest reserve prices below the expected market value and ensure annual fees are not prohibitive.

2. Bring spectrum to market in a timely manner, provide operators with a roadmap of future availability and release in anticipation of requirements.

3. Avoid onerous licence conditions, ensuring licence terms are long enough and bidders have appropriate renewal guarantees so that they can realise adequate returns on investments in network infrastructure.

4. Adopt best practice in award design that prioritise efficiency, not revenues

The full report, Effective Spectrum Pricing in Latin America: Policies to support better quality and more affordable mobile services, is available at: www.gsma.com/spectrum/wp-content/uploads/2018/02/Effective-Spectrum-Pricing-in-Latin-America-ENG-full.pdf

-ENDS-

Notes to Editors

1. The report argues that spectrum scarcity is one of the key factors holding back the region. For example, most countries in the region haven’t allocated new bands such as 700 MHz and 2.6 GHz in a timely manner. The overall pace of spectrum releases is well behind the more developed markets in Europe and Northern America.

About the GSMA

The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.

For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.

Contact information

For the GSMA
Tati Cantoni: +55 11 95210-2225
Taticantoni@pimenta.com
or
Beau Bass
+44 79 7662 4962
beau.bass@webershandwick.com
GSMA Press Office
or
Media Contacts:
pressoffice@gsma.com

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme tältä julkaisijalta, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

Gilead Sciences Announces Senior Management Change23.2.2018 01:00Tiedote

Gilead Sciences, Inc. (NASDAQ: GILD) announced today that James Meyers, Executive Vice President, Commercial Operations, will retire. Mr. Meyers joined Gilead in 1996 as a regional sales director and was appointed to his current role in 2016. Following a brief family leave earlier this year, Mr. Meyers made the decision to retire from his full-time role effective immediately. Mr. Meyers will remain with the company in an advisory capacity, to consult on priority projects and to assist with identifying his successor and facilitating the transition. The company will begin a search for his successor in the coming weeks. “Jim has been instrumental in leading Gilead through a period of tremendous growth and change, and he has built an exceptional team. I am confident in the ability of that team to execute against our ambitious goals and grateful to Jim for his commitment to assist us through this transition,” said John Milligan, PhD, President and Chief Executive Officer, Gilead Sciences. “

Trump International Hotel Washington, D.C. Announced as First Forbes Five Star Hotel in Downtown Washington, D.C.22.2.2018 22:21Tiedote

Trump International Hotel Washington, D.C. announces today that it has been awarded the 2018 Forbes Five-Star recognition, making it the first hotel to receive the prestigious distinction in Downtown Washington D.C. Forbes Travel Guide, the global authority on luxury travel, sends anonymous professional inspectors around the world to assess hotels, restaurants and spas against up to 800 objective standards focused on service and facilities. Just opened a short fifteen months ago, the property is located on Pennsylvania Avenue in the center of the city at the site of the Old Post Office. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180222006277/en/ Trump International Hotel Washington, D.C. (Photo: Business Wire) Mickael Damelincourt, Managing Director, oversaw the recruitment and selection of the executives whose teams would lead the hotel through the construction and opening phases, instilling a commitment to the highest l

Entrust Datacard and Infineon Partner to Reduce Complexities with Securing IoT Deployments22.2.2018 21:30Tiedote

Entrust Datacard, a leading provider of trusted identity and secure transaction technology solutions, today announced it has joined the Infineon Security Partner Network (ISPN). The ISPN is part of Infineon Technologies AG, a leading provider of semiconductor solutions used in automotive, industrial, computing and Internet of Things applications. The ISPN is composed of associated and preferred security partners who are proven experts in security consulting, security solution provisioning, electronic design, systems integration and trust services management. The new partnership will apply the Entrust Datacard™ ioTrust™ Security Solution that uses identity-based technology to help securely connect the people, applications and devices that power the connected world. The tiered software uses sophisticated cryptographic technology to provide identity issuance, management and data security of connected things within industrial environments. As a global leader in Trusted Platform Modules (TP

Blue Danube Systems Joins xRAN Forum as a Massive MIMO System Supplier Fully Committed to Open Interfaces22.2.2018 21:10Tiedote

Blue Danube Systems, a provider of intelligent wireless access solutions that help mobile operators address the challenge of explosive data growth, today announced that it has joined the xRAN Forum (www.xran.org). The xRAN Forum was formed by several leading global mobile operators to develop, standardize and promote an open alternative to the traditionally closed, hardware-based RAN (Radio Access Network) architecture. Massive MIMO systems are widely recognized to be a critical element of future 5G wireless networks. Blue Danube’s unique approach to Massive MIMO, based on the company’s underlying High Definition Active Antenna Systems (HDAAS™) technology, not only delivers capacity gains in existing LTE networks with today’s smartphones but also enables intelligent analytics-based RF virtualization for multi-site network performance optimization. Blue Danube’s first Massive MIMO product, the BeamCraft™ 500, has been deployed at four FDD-LTE operators to date, interfacing to four diffe

Blue Danube Systems First to Demonstrate Benefits of FDD Massive MIMO in Clustered Multi-Sector Deployments22.2.2018 21:07Tiedote

Blue Danube Systems, a provider of intelligent wireless access solutions that help mobile operators address the challenge of explosive data growth, today announced it has successfully expanded the commercial deployment of its massive MIMO solution to multiple clustered cell sites, demonstrating total capacity improvements for directly adjoining sectors on existing LTE networks using current smartphones. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180222006158/en/ Blue Danube Systems First to Demonstrate Benefits of FDD Massive MIMO in Clustered Multi-Sector Deployments (Photo: Business Wire) Despite the prevalent view that Massive MIMO systems will be central to 5G networks, it has not been clearly proven that the technology is deployable beyond isolated high-demand sectors where effects such as adjacent cell interference must be addressed. In fact, common digital-only Massive MIMO implementations typically operate as clos

Avnet and IDEMIA Develop Highly Flexible ‘Plug & Play’ Cellular Connectivity Solution for IoT and Industry 4.0 Applications22.2.2018 19:08Tiedote

Avnet (NYSE: AVT), a leading global technology distributor and IDEMIA (formerly known as OT-Morpho), the global leader in Augmented Identity, have joined forces to collaborate on the development of a new future-proof cellular connectivity solution that meets the growing communication requirements for Internet of Things (IoT) and Industry 4.0 applications. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180222005966/en/ (Photo: IDEMIA) The new ‘plug & play’ eUICC (embedded Universal Integrated Circuit Card) and SM-SR (Subscription Management Secure Routing) delivers product future-proofing capability to IoT application solution providers and other businesses. It provides them with the ability to easily choose a mobile network operator (MNO) without eventually having to manually change the embedded SIM card in their cellular connectivity-based devices, machines and sensors that are already deployed in the field. The product bund

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme