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GSMA Report Favours Competition Over Wholesale Networks(AllAfrica Via Acquire Media NewsEdge) The GSMA has released a new report that predicts a move away from traditional mobile network competition towards single wholesale networks which would stifle innovation, restrict investment and take-up of mobile broadband services and ultimately be against consumer interests. Developed by Frontier Economics, the report, 'Assessing the Case for Single Wholesale Networks in Mobile Communications', examines whether single wholesale networks could meet a government's objective for improved coverage and explores more effective ways to achieve the same goal. The report analyses the historic performance of countries with a single network compared to those with multiple competitors to consider how a single wholesale network would likely perform in practice. It finds that in countries with competing networks, 3G covered 36 per cent more population and that overall coverage increased three times faster than in those served by a single network. "In 2000, there were as many countries served by a single mobile network as there were those with competing networks. Today only 30 countries, representing less than three per cent of the world's population, are served by a single network," said Chief Regulatory Officer, GSMA, Tom Phillips. "Network competition has produced unprecedented growth and innovation in mobile services, with 3.7 billion unique mobile subscribers globally in 2014, more than US$1.7 trillion of total worldwide investment since 2002 and mobile 3G broadband coverage reaching over half of the world's citizens. This indisputable success story should continue in the era of mobile broadband, across the globe and particularly in emerging markets." Advocates of single wholesale networks argue they can respond to issues such as inadequate or slow coverage in rural areas, inefficient use of spectrum and a lack of incentives for the private sector to maximise coverage or investment better than the model of network competition. However, the report demonstrates that the existing approach of network competition offers better long-term benefits. Copyright Daily Independent. Distributed by AllAfrica Global Media (allAfrica.com). |