challenges of wireless - lirneasia
TRANSCRIPT
Challenges of wirelessRohan Samarajiva, drawing from LIRNEasia 2005
research
Research ICTs Africa! Meeting, Dakar, June 2, 2006
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Agendap Wireless and developmentp Wireless in the networkn Backbonen Mobile & “fixed”n Mobile datan WiFi typeo The strange case of Indonesia
p Regulatory environmentn Spectrum management incl. refarming
p Importance of investment
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Tech
Development: Not by communication (wireless) alone
Development
Enabling/complementary conditions
Communication CoordinationKnowledge
Other communication
inputs
ICTs/Tech enabling
sync interaction/Info seeking/publ’n
Capital
WirelessOtherinputs
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Wireless in the networkp Wireless in the backbone (digital microwave &
satellites)p Mobile telephony is most visible manifestation
in the access network p Much of current “fixed” growth in China, India,
etc. driven by wirelessn CDMA 800/1900 for voicen CDMA 450 & other standards for data overlay
networks
p Mobile data increasingp WiFi hotspots increasingn Nokia developing WiFi handsets
p WiMAX, WiBRO, etc. etc.
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Typical ISP Network
Infrastructure Network
Access Network
Twisted copper pair
ADSL
Dialup
Fiber optic
Link to higher tier ISP
ISP A
ISP B
ISP C
Coax cable
Cable modem
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Network Reality-Indonesia
Infrastructure NetworkAccess Network
Neighbourhood Network $35/pm
Corporate Customer $200/pm
UTP Cable
ISP A
WiFi 2.4
IIX
Ethernet Ring
Microwave
ISP B
ISP C
Ethernet
School B
School C
Wifi 5.8
WiFi 5.8
HouseSchool A$4000/pm (Internet link+ international bandwidth)
ADSL
UTP Cable
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Strange case of Indonesian WiFi
pWiFi deploymentn Not inside home; not available for free n Blurring of access and infrastructure network; used
as backbone; up to the curb WiFi, last mile aerial cable
n Many tiered retailing of Internet service….nWHY? To recover high input costsoIn addition to “last mile,” need to recover domestic
& int’l leased line and interconnection costs
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What gave rise to strange network configuration in Indonesia?
Regulatory environmentn Non-independent regulatoro Two regulatory bodies: DG POSTEL & BRTIo DG POSTEL is unit of Ministry of Communication & ITo BRTI under-staffed, powers under transition, chairman is
DG of DG POSTELn Exclusivity clauses extending historical monopolieso Indonesian govt owns 51% share in PT Telkom & 15% in
Indosat plus “golden share”n Licenses prevent ISPs from deploying infrastructuren No local loop unbundlingo Exclusivity until 2015
n No regulation of leased lineso Few suppliers, refusal to deal, high prices, quality
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Market environment
n Lack of competition in infrastructure sector
n Resulting in high leased line prices
n High international backbone prices
n Proliferation of unlicensed “reseller-ISPs”
Competitive Currently 124 ISPs official, 54 unlicensed
Internet service provision
Competitive (Satelindo, Excelkomindo, Telkomsel etc.)
Mobile
Duopoly 1995-2004 (Indosat, Satelindo)
Fixed international
Limited competition (Satelindo)
Fixed wireless local
Exclusive right 1996-2005 PT Telkom
Fixed domestic LD
Exclusive right 1996-2010 PT Telkom
Fixed wirelinelocal
Telecom operations
Telecom services
No competition
Limited competition
Competitive
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Annual leased line prices: 2Mbps link
Data compiled from Lokanathan, lirneasia.net, EU 10th report, interview with Indonesian ISP & Network Service Provider
RatiosIndia EU
1:47.9 1:3.8
RatiosIndia EU1:5.9 1:4.9
US$ 9,219US$ 4,802EUBenchmark (Denmark)
US$ 7,603US$ 376India
US$ 45,000US$ 18,000Indonesia
200km2km2Mbps link
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Institutional aspects of wirelessp Current quasi-property rights regimen Bundle of rights, less right to alienateo Except by selling the licensee firm
n Use highly constrained (e.g., specific standards, power, polarity)
n Therefore, significant role for effective spectrum management by government
p Government responsible for refarming of frequenciesn Quasi-property rights require consent
of/compensation for displaced users o Cost for 3 x (7.5 x 2) MHz in 1800 Band in Sri
Lanka in 2003 was estimated to be USD 3 m.
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Hypothetical refarming process
Auction frequency slots that may be used for CDMA 1900 or GSM 1800 to current operators but possibly also to newcomers
O1, O2, and O3 assigned CDMA 800 frequencies
5 & 5A
1800 GSM and 1900 CDMA bands fully cleared
O6 assigned GSM 900 frequencies & releases CDMA 800 frequencies
4 & 4A
1800 MHz Tender Board releases funds for band clearing (some 1800 MHz frequencies have been auctioned to GSM operators)
O4 and O5 release GSM 900 frequencies; O1, O2, and O3 will also be requested to agree to phased release of frequencies to enable overall ordering of the bands
3 & 3A
System and frequency license modifications negotiated (Modifications include removal of technology restrictions from O1, O2, etc.; and may include extending license term of O4(which will gain no benefits but has to yield frequencies
2
Government sets overall policy and authorizes negotiations with seven operators (O1 – O7)
1
Parallel policy actionsMain policy actionsStep
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Difficulties with refarming for unlicensing
p In many countries, 2.4 GHz and 5 GHz bands have occupants who require coordination/relocationn In India, EESS (active) and SRS (active)
services in 5250–5570 MHz bandn In Sri Lanka, high-powered MMDS broadcasts on
either side of 2.4GHz band which is also used by data licensees for 10+ years
p How to find the money to pay off users who are to be moved?n Beneficiaries of unlicensing cannot be
asked to pay
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Spectrum management is not enough . . .
p For WiFi to be effective in the access network, backbone must exist & be offered on non-discriminatory basis at reasonable prices
p Data or voice communication is a chainn Speed = speed of the weakest link; if link is
broken, no communicationn In these markets, sustainable prices determined
by input costs p ISPs require access to backbonen In some countries only access regime needs
improvingn In others, need to create incentives for building
as well
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Spectrum management is not enough . . .
p In additionn Market entryn Interconnection and accessn Effective regulation of competition
p Investment is what connects people
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Investment is necessary condition for improved access
Figure 3: Sri Lanka telecom growth 1991-2004
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
MobileFixed entrantsIncumbent
Wireless
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Investment is necessary condition for improved access
WirelessAccess +Backbone
Fiber + fixed access
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Wireless investmentWireless-based investment in Sri Lanka, 1993-2002
0
20
40
60
80
100
120
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
USD
millio
ns
Mobile Entrants Fixed Entrants
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What is needed . . .
p Market entry permitted/liberalizedn Case of Bhutan
p Environment for investment createdn Regulatory risk reduced
p Participation by multiple suppliers enabledn Level playing field
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In sum . . . p Wireless vision of developed countries is
possible only because of fully developed backbone and access networkn Enabled by environment conducive to
investment, including effective regulation
p Without institutional conditions, little/no WiFitype applications outside developed enclaves
p Technology matters; but not without appropriate institutional conditions
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More info:
www.lirneasia.net (search wireless)E.g., http://www.lirneasia.net/2006/05/wi-fi-
%e2%80%9cinnovation%e2%80%9d-in-indonesia-working-around-hostile-market-and-
regulatory-conditions/[email protected]+94 11 493 9992 (v)+94 11 494 0290 (f)