3G in Bangladesh: Points to ponder

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Telecom Reporters Network of Bangladesh (TRNB) asked me to explain them the problems of 3G in Bangladesh. This is what I presented. But we discussed a lot beyond the slides. It’s always great to talk to the journalists.

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  • The key enabler for 3G intro in Bangaldesh was the 'gov to gov' 211M USD Chinese loan for Teletalk with repayment over 20yrs at 2% interest. The main justification for 3G was the positive impact on GDP growth. The key players were MOPT, CMEC, ALU/ ASB & Huawei.
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3G in Bangladesh: Points to ponder

  1. 1. 3G in Bangladesh: Points to ponder Abu Saeed Khan askhan@ieee.org @ TRNB Workshop December 29, 2012
  2. 2. The dark age
  3. 3. “Main telephone” denies mobile YEARBOOK OF STATISTICS Telecommunication Services Chronological Time Series 1996-2005 July 2007
  4. 4. A miracle had happened in 1997 Oslo 2006
  5. 5. Ubiquitous Universal AccessEffective Regulation Operator1 •License Universal Service •Spectrum Operator2 •Ubiquitous voice/data •Interconnection •Ubiquitous broadband•Internet Bandwidth Operatorn 1997 → 2015 →
  6. 6. Three percent of family income:Entry point for broadband adoption
  7. 7. Affordability levels
  8. 8. Policy uncertainty 45.40% 40.10% 40.10% 32.90% 29.10% 29.50% 20.90% India Thailand Philippines China Cambodia Pakistan BangladeshSource: A Future Within Reach 2008
  9. 9. Networked Readiness Index 2012 Rank 113 (Out of 142); Score 3.2 (1-7) The Global Information Technology Report 2012, WEF
  10. 10. Internet and broadband penetration in the Eurasian region, 2010
  11. 11. Three percent of family income:Entry point for broadband adoption
  12. 12. Affordability levels
  13. 13. 1 EB = 250 million DVDs5 EB = A transcript of all words ever spoken
  14. 14. “The Internet is not a humanitarian project, it’s a business” - Grant van Rooyen, SVP, Level 3 Communications
  15. 15. “Despite falling 22% compounded annually between Q2 2007 and Q2 2012, themedian price of a GigE port in Hong Kong has remained 2.7 to 5.1 times the price of aGigE port in London over the past five years.” (August 2, 2012).
  16. 16. High, Low, and Median Hong Kong GigE IP Transit Prices by Carrier H M LNotes: Shaded area represents price range between low and high price by individual carrier; lineshows median. Data shown are monthly price per Mbps, excluding installation and local access fees.Gigabit Ethernet (GigE) = 1,000 Mbps. Source: TeleGeography.
  17. 17. The Great Asian Bandwidth DivideBangladesh USD 100 (mean)
  18. 18. Fiber didn’t exist when mobile came
  19. 19. >US$ 400 million invested
  20. 20. Outline of Infra-sharing Guideline• Forbids sharing transmission capacity with anyone but NTTN.• Forces to transfer all transmission customers to the NTTN operators.• Prohibits one mobile operator from leasing transmission capacity to another mobile operator unless either of the NTTN declines.
  21. 21. Objectives of the Guideline20082011
  22. 22. Unlawful: Upsets the market • The Foreign Private Investment (Promotion and Protection) Act, 1980•Section 29(d) of the Bangladesh Telecommunications Regulating Act, 2001
  23. 23. Screenshot on December 21, 2012
  24. 24. Impact analyses• Airtel and Robi. – CAPEX and NRO.• Grameenphone, Banglalink and CityCell – Investment (>US$ 400 million), clientele.• The entire mobile sector – Reliability of network under threat.• Existing clients – Assignment of contract, sensitive customers (Banks, MNCs and Government). It makes 3G expensive
  25. 25. Skype is the limit • ILD traffic grew 4% in 2011, to 438 billion minutes. • International Skype-to- Skype calls (including video calls) grew 48 % in 2011, to 145 billion minutes. • Skype added 47 billion minutes of international traffic in 2011 — more than twice as much as all the telephone companies in“If all of Skype’s on-net traffic had been routed via phoneworld, combined. the companies, global cross-border telephone traffic would have grown 13 percent in 2011, remaining in linewith historical growth rates.” TeleGeography analyst Stephan Beckert
  26. 26. Wi-Fi delivers over 75% of all UK Smartphone Data: Nielsen study• People in UK with Android smartphones transfer 78% of their internet content using WiFi and just 22% over a mobile connection.• The amount of mobile data ‘offloading’ - either via commercial WiFi hotspots or home and business networks - starts to increase in the evening from 5pm and reaches a peak between 11pm and midnight, when 90% of data transferred during that hour is via WiFi.• Peaks in 3G data usage tended to be just before the working day started, at lunchtime and during the early evening commute; times when users are unlikely to be able to rely on a WiFi connection.
  27. 27. “This is a good description, wide area networks areless demanded by data users, compared to voice/smsusers that always are sensitive to coverage. “ Martin Bäckström Technology Advisor, PLDT/Smart
  28. 28. Section 21A. Social Obligation Fund.(1) The Commission will create a fund to be known as the Social Obligation Fund for extending telecommunication facility in the areas deprived of such facility.(2) Money received from the following sources shall be credited to the Social Obligation Fund, namely:- (a) grants made by the Government; (b) grants made by any other local or foreign or international organization; (c) subscription received from telecommunication and radio communication operators for this purpose; and (d) any contribution received from any other legal source.(3) Money of the Social Obligation Fund shall have to be kept deposited in any scheduled bank to be determined by the Commission.(4) The maintenance of accounts and operation of the Social Obligation Fund, its administration, procedure for withdrawal of money of the said Fund and the rate of subscription for the Fund to be realized from the licensed operators, shall be prescribed by rules.
  29. 29. Section 21A. Social Obligation Fund.(1) The Commission will create a fund to be known as the Social Obligation Fund for extending telecommunication facility in the areas deprived of such facility.(2) Money received from the following sources shall be credited to the Social Obligation Fund, namely:- (a) grants made by the Government; (b) grants made by any other local or foreign or international organization; (c) subscription received from telecommunication and radio communication operators for this purpose; and (d) any contribution received from any other legal source.(3) Money of the Social Obligation Fund shall have to be kept deposited in any scheduled bank to be determined by the Commission.(4) The maintenance of accounts and operation of the Social Obligation Fund, its administration, procedure for withdrawal of money of the said Fund and the rate of subscription for the Fund to be realized from the licensed operators, shall be prescribed by rules.
  30. 30. Section 98. Power to make rules.• For carrying out the purposes of this Act, the Government may, by notification in the official Gazette, make rules consistent with the provisions of this Act.
  31. 31. Section 98. Power to make rules.• For carrying out the purposes of this Act, the Government may, by notification in the official Gazette, make rules consistent with the provisions of this Act. 2G License Renewal
  32. 32. Where is the rule?
  33. 33. A small gift for everyone • Download it FREE! http://futureoftheinternet.org/
  34. 34. Thanks for your attention Abu Saeed Khan askhan@ieee.org @ TRNB Workshop December 29, 2012

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