Ewan Sutherland

Counting customers, subscribers and mobile phone numbers

Purpose – The purpose of this article is to identify policy issues arising from discrepancies between the various sources of numbers of customers for mobile networks.Design/methodology/approach – This paper reviews and analyzes a range of statistics, and then draws out policy implications.Findings – Survey data report much lower numbers of customers than operators, indicating delays in achieving MDGs and market distortions.Research limitations/implications – There is a lack of data on the reasons for ownership of multiple mobile SIM cards.Practical implications – There is a need for more extensive surveys to identify reasons for ownership of multiple mobile SIM cards. The analysis can be incorporated into policy and regulatory decision making.Originality/value – The paper takes an analytic approach, suggesting areas for further work.

International roaming charges: over-charging and competition law

International roaming is a major technical achievement of the GSM standard. Initially, users were impressed by the technical facility that a mobile phone would work initially across the European Union (EU) and in many other countries, and with a tri-band phone, in North America. Estimates of the market size at the end of 1999 were in the range of US

Corruption in Telecommunications: Problems and Remedies

1000 million, with continuing rapid growth. However, users quickly realized that the costs of international roaming were far higher than could be justified. At a time when fixed telecommunications costs and prices were falling, the prices for mobile roaming were spiralling out of control. The response from user organizations has been to withdraw phones, to forbid their use abroad and to encourage alternatives, such as phone-cards and visits to local offices. A series of surveys by INTUG in 1999 and 2000 gathered comparative data on international roaming charges in Europe. The results showed price variances of 2-10 times for the same or a similar call. These data have attracted the interest of the Competition Directorate-General of the European Commission and a formal investigation has been initiated. A decision is expected in late-2000, which could have influence outside the EU, since the principles of competition law, and the terms of international roaming agreements are similar around the world. The indications are that the complexity of the charges, the backroom negotiations and other factors demonstrate that this is very far from being a competitive market. As the GSM Association begins to create a Global Roaming Forum to prepare for 3G (UMTS) roaming, it is clear that a more open and competitive regime is essential if the prices are to be driven down to reasonable levels. That in turn is necessary if we are to see the innovations in uses necessary for the next stage of the development of the mobile telecommunications industry and mobile-Internet convergence.

Mobile number portability

Purpose – This paper aims to identify the nature of the problem of corruption in the telecommunications sector and to identify possible actions to limit it.Design/methodology/approach – A review of instances of corruption, showing the scope of its various forms, with particular emphasis on the Arab states, in the light of recent events.Findings – Policies were advocated for telecommunications that greatly increased the risks of corruption without corresponding measures to ensure integrity, transparency and the investigation and prosecution of those paying and, especially, those accepting bribes.Research limitations/implications – There is a need for much more raw data and detailing of specific cases, in particular there are no plausible estimates of the overall scale of bribery in the sector.Practical implications – By repressing bribery in telecommunications it will increase competition in markets, reduce prices and remove the social grievance of “crony capitalism”.Originality/value – There are, as yet, ...

The regulation of the quality of service in mobile networks

Purpose – The purpose of this paper is to present a review of the experiences with the implementation of mobile number portability (MNP).Design/methodology/approach – The paper presents a structured review of global experiences from markets where MNP has been introduced.Findings – The paper finds that results have been disappointing, apparently arising from complex regulatory processes and sub‐optimal implementation.Research limitations/implications – The paper has a lack of sufficient analysis of the effects on competition.Practical implications – The paper highlights the need to measure national performance against global best practice and for NRAs to share experiences.Originality/value – The paper is much broader in scope than previously published work in the area of MNP.

The Regulation of International Mobile Roaming

Purpose – The purpose of the paper is to identify global best practice in the regulation of quality of service on cellular wireless networks.Design/methodology/approach – The paper presents an identification of issues from the literature and an analysis of examples of activities of regulators around the world.Findings – The paper finds that there is a wide range of approaches that are not easily comparable and do not necessarily fit with policy goals.Research limitations/implications – Mostly, the surveys are of basic voice parameters, with little on data or value services.Practical implications – The paper calls for better understanding of the information gaps of consumers and how third parties, including regulators, can play a part, in particular in the move toward 3G and 3.5G.Originality/value – The paper reviews a very wide range of materials and presents in a framework that helps understand the information gaps of consumers and how third parties, including regulators, can play a part, in particular i...

Counting Mobile Phones, Sim Cards & Customers

Purpose – The purpose of this paper is to review the effectiveness of the various initiatives taken to regulate international mobile roaming over the last decade.Design/methodology/approach – The paper is an analysis of the policies and the measures and their effects on prices and industry dynamics.Findings – The paper finds that economic approaches through both competition law and the current European Union regulatory package failed. However, an ad hoc political initiative by a determined European Commissioner did finally work.Research limitations/implications – Lack of industry data, disaggregated for roaming, makes it difficult to determine the eventual effects on operators. Further data on revenues and on any increase in demand from price reductions would greatly help understanding.Practical implications – In this paper the use of a relatively crude policy instrument raises concerns about the use of more sophisticated economic approaches in difficult cases.Originality/value – The paper reviews the seq...

Republic of Benin – chaos, corruption and development in telecommunications

The phenomenal growth of the customer base for mobile phones has been heavily promoted by the industry. However, analysis of the numbers indicates that there are massive levels of systemic overcounting, caused by customers with multiple subscriptions, perhaps for a range of operators, perhaps for a foreign business destination or holiday home. Eliminating infants, the insane, the incarcerated and the elderly, a level of 90% is about the maximum possible, as against claims of 140 or 160%. The only way to identify those not connected is by surveys of individuals and households. Only then is it possible to determine the needs for further policy measures to extend access.

What Lies Beyond the Second Roaming Regulation

Purpose – The purpose of this paper is to present a case study of a country with severe problems in the telecommunications sector, including corruption and maladministration.Design/methodology/approach – The paper presents a review of the legislation and regulatory decisions over the last decade, plus prosecutions in the USA for bribery in the country.Findings – The paper reveals that, despite a decade of external efforts to encourage the use of information communication technology to boost development, very little progress has been made in terms of policy, legislation and regulation. No lessons appear to have been learned; the same mistakes could be repeated.Research limitations/implications – Further case studies are required from West Africa to provide a more complete picture and to assess whether equally serious problems exist in the region.Practical implications – There is a need for a review of the legislation both for telecommunications and for corruption, with considerable strengthening of institu...

International Mobile Roaming in Africa

Purpose – The purpose of the paper is to review the progress made with the EU Roaming Regulation and to identify policy options from the review that the EC must now undertake.Design/methodology/approach – The paper presents a review of the development of the two regulations, of the market developments in the EU and beyond, and an identification of the policy and regulatory options.Findings – The new Commission is constrained by the decision not to use a competition law approach and the lack of a robust market definition, and thus a further period of price controls seems unavoidable.Research limitations/implications – Key documents and data are not available, making analysis of certain constraints and revenue flows between operators impossible to evaluate.Practical implications – The EC will have to craft a new set of price controls and develop a pathway towards the use of the directives to regulate roaming charges.Originality/value – The paper is a first attempt to identify options and constraints for the...