Search Results for: "International Telecommunications Society"

Spectrum policy and auctions

I was vacationing on November 21 when the International Telecommunications Society (ITS) held a workshop in Ottawa entitled “Spectrum Policy and Auctions: Best Practice from Around the World” but much of the day was captured on video. I thought it would be useful to provide a link to the archive.

The workshop attracted more than 70 participants from around the world to discuss auction best practices, opportunities and challenges, in the 5G era, including representatives from government, industry and academia.

Here are direct links to the presentations. I encourage you to visit the ITS site for a summary. Note that the video files are set up with a split screen to allow you to see the speaker and slides.

  • Professor Martin Cave, London School of Economics: Video | Slides
  • Oliver Chapman, GSMA Policy Director: Video | Slides
  • Evan Kwerel, Senior Economic Advisor at the Federal Communications Commission: Video | Slides
  • Dan Maldoom, partner at DotEcon: Video | Slides
  • Professor Pat Sujarittanonta, Chulalongkorn University: Video | Slides
  • Jan-Hendrik Jochum, Senior Expert, Public and Regulatory Affairs, Deutsche Telekom: Video | Slides
  • Nick Bone, Principal Engineer: Auctions, Security and Cryptography, Vodafone: Video | Slides
  • Professor Erik Bohlin, Chalmers University of Technology: Video | Slides
  • Panel of all speakers, moderated by Janet Yale, Chair of the Canadian Broadcasting and Telecommunications Legislative Review Panel: Video

Back in September, I wrote “The cost of spectrum policy”, introducing the GSMA report discussed by Oliver Chapman in his talk. That report found “High spectrum prices can cause negative consumer outcomes, including lower coverage levels and slower data speeds.”

The videos and slides from all of the speakers provides valuable material to productively fill time as your office empties over the winter break.

The call termination bottleneck

ITSThe International Telecommunications Society met in Perth, Australia earlier this week. Last year’s conference was in Montreal. There was an interesting paper [ pdf, 57KB] examining wireless payment models presented by Sandy Levin, co-authored by Stephen Schmidt of TELUS.

The paper contrasted the benefits of Wireless Party Pay (WPP) models (in use in the US, Canada, Hong Kong and Singapore) with Calling Party Pay (CPP) models (in use in most of the rest of the world).

CPP was put in place to encourage the adoption of mobile phones. A mobile phone owner could get a phone and keep it on and receive unlimited calls at no charge. The calling party paid, and the calling party, rather than the receiving party, would decide if the call was worth the price. This did encourage the adoption of mobile phones, but it required a separate mobile code so the calling party knew he was being charged.

The paper notes that CPP has resulted in high rates, especially for call termination, because service providers were permitted to exploit the market power resulting from their call termination bottleneck.

For whatever reason, regulators may have correctly found retail service to be competitive and as such, they did not regulate the prices of retail service. However, regulators in CPP countries have only started to turn their attention to the price of call termination even though it was a bottleneck giving the service provider exploitable market power.

The paper also has an observation about super-normal mobile penetration rates:

What is measured is the number of SIM cards. Partly because of high pricing, many customers in these countries have more than one SIM card. A visitor to a country who purchases a SIM card is also counted. All of this serves to overstate penetration rates in these countries, evidenced in part by suspiciously high “penetration” rates, often over 100%. The significantly lower penetration rates in the U. S. and Canada, where SIM cards are less common and where individuals generally have only one mobile telephone number, are a more accurate measure of actual penetration because it is closer to a measure of the number of individuals who have mobile service than in countries that count SIM cards.

The paper ends with an interesting conclusion. In countries that retain CPP, call termination rates will need on-going regulation because, even though mobile service might competitive at the retail level, mobile service providers can exploit the call termination bottleneck.

Scroll to Top