Regulatory roadblocks to mobile broadband- How the World Bank can help
Harriet E. Berg, VP and Head of Governmental Relations,
Telenor Group
Sweden
Telenor Sweden
Norway
Telenor Mobil
Denmark
Sonofon
Hungary
Pannon
Montenegro
Promonte
Serbia
Telenor Serbia
Bangladesh
Grameenphone
Thailand
DTAC
Pakistan
Telenor Pakistan
Malaysia
DiGiRussia
VimpelCom *
Ukraine
Kyivstar
Subscribers on 100% basis, including VimpelCom
* 33.6 % economic ownership in VimpelCom
Telenor’s World | 12 markets, entering India
Mobile broadband | Strong customer growth
0
0,4
0,8
1,2
1,6
2
2006 2007 2008
0
0,1
0,2
0,3
0,4
2007 Q1 2008 Q3 2008
Fixed Broadband CustomersNorway, Sweden & Denmark
Mobile Broadband CustomersNorway, Sweden, Denmark,
Hungary, Serbia, Montenegro
The broadband potential is huge
Provide high quality access
Make internet experience easy
Develop internet services
Tapping the potential | Becoming a wireless ISP…
Driving market development | An example from Bangladesh
VoiceFrom village phone concept
To 18 million mobile customers
DataBringing Internet to communities based on mobile Internet
Sh
are
con
cep
tsIn
div
idu
al co
nce
pts
Opportunities | Basic financial services to the underbanked
Service scope
TimeTime
Bill payment
Domestic transfer
International transfer
Savings
Loans?
Insurance?
Example from BillPay Bangladesh | Impressive Growth
Subscribers - thousand Transactions - thousand
815
28
46
65
Q1‘07
Q2‘07
Q3‘07
Q4‘07
Q1‘08
1221
42
65
100
Q1‘07
Q2‘07
Q3‘07
Q4‘07
Q1‘08
+85%
+85%
+65%
+40%
+75%
+100%
+55%
+55%
However, still in its infancy..
..and facing challenges
Regulatory issues becoming a bottleneck..
Spectrum requirements | New needs
Lack of level playing field | In many areas
No regulatory regime facilitating market for transmission infrastructure
USO regime facilitating specific technologies
Obligations put on ISPs for illegal use of network by customers
Regulatory hindrances for mobile operators to offer new services
Little transparency and predictability
Licensing | A high number of licenses are needed....
Sector specific taxation | Reducing uptake of new services
Financial services | Regulatory barriers
Obtaining the necessary licenses:
• Bank
• Loan
• International remittance
• E-wallet
Our recommendations
Release spectrum
Ensure level playing field
Secure predictability and transparency
Avoid sector specific taxation
It’s all about politics..
The role of the World Bank
Build belief in convergence and the role of mobile technologies in speeding up the roll-out of mobile broadband
Advocate for liberalization, predictability, transparency and a level playing field
1
2
Active policy dialogue GICT – private sector on relevant policy issues, locally and at global level
3
4 Focus on the basic issues, and engage in dialogue on new services