Mobile Policy Handbook An insider’s guide to the issues
2018 Do you have the knowledge?
Can you take a position?
Will you lead the debate? Mobile Policy Handbook An insider’s guide to the issues
© 2018 GSMA About this Handbook
With mobile service reaching over 95 per cent of the global population and mobile internet access spreading fast, the digital revolution is empowering citizens and reshaping society all over the world. Policymakers and regulators create the conditions that can attract telecoms investment, encourage innovation and strengthen digital trust and the GSMA believes that a country’s citizens benefit most when the private and public sectors work together in a spirit of openness and trust.
This is why we are committed to supporting governments and regulators in their efforts to introduce pro-investment telecommunications policies. The Mobile Policy Handbook: An Insider’s Guide to the Issues is part of the GSMA’s efforts to promote such collaboration. A unique resource that assembles a range of policy topics and mobile industry positions and initiatives under one cover, it acts as a signpost to regulatory best practice.
As the global trade association of mobile operators, the GSMA conducts and commissions research on policy trends and challenges in the fast-moving mobile communications market. This handbook draws on the association’s unique insight into the mobile sector and presents it in a practical way for those who want to explore the issues and unleash the value of mobile technology in their own market.
In this sixth edition of the Mobile Policy Handbook, new policy topics and industry positions have been introduced on counterfeit mobile devices, cross-border flows of data and drones. Throughout the book, the content has been refreshed with up-to-date statistics, new resources and industry insights.
The online version of this resource — www.gsma.com/publicpolicy/handbook — offers an always up-to-date catalogue of the mobile industry’s policy positions.
Readers are encouraged to contact the GSMA if they have any questions or requests for more information. E-mail us at [email protected]. World-Changing Trends
For five billion people, mobile phones are an indispensable companion in daily life. The astonishing spread of this technology is explained by its ability to satisfy a basic human desire to stay connected, while offering convenience, productivity and entertainment for people on the move. By 2020, three-quarters of mobile subscribers will have broadband connectivity, which opens the door to mobile applications and the internet.
Today, mobile is a key component in the digitalisation of industry, generating new levels of efficiency and productivity in manufacturing, logistics, energy, agriculture — and virtually every economic sector. Companies that do not make use of machine-to- machine technologies, improved analytics and sensors, for example, will find themselves outpaced by those that do. For consumers, there will be more intelligently connected appliances, more applications that react to users’ location and environment, and more platforms and services centred on video streaming. The digital story is still evolving, and the mobile industry is playing a pivotal role in it.
This is why there is a need for regulatory frameworks to evolve to take account of this rapid change and promote market dynamism, competition and consumer welfare, while discarding legacy rules that are no longer relevant in the context of the digital ecosystem. If industry and governments approach the digital revolution with the right mix of policies, regulations and consumer protections while providing the framework for companies to compete and innovate, then society will advance and the welfare of citizens will expand.
As the digital revolution transforms our world, policymakers face new and exciting challenges and will need to navigate uncharted waters. We hope this handbook provides a compass that is referred to regularly on that voyage.
Contents
#betterfuture 10 Improving the industry’s impact on the SDGs 12
Mobile For Development 16 Mobile For Development — Introduction 16 Connected Society 18 Digital Identity 20 Disaster Response 22 Ecosystem Accelerator 24 Mobile Agriculture 26 Mobile for Development Utilities 28 Mobile Health 30 Mobile Money 32
Women and Mobile 34
Mobile Initiatives 36 Future Networks — Introduction 38 5G — The Path to the Next Generation 40 IP Communication Services 42 Voice over Long Term Evolution 44 Internet of Things — Introduction 46 Encouraging the Growth of IoT 48 Global Deployment Models for IoT 50 Connected Drones (UAVs) 52 Connected Vehicles 54 Digital Health and IoT 56 Privacy and Data Protection for IoT 58 Smart Cities and IoT 60 Identity — Introduction 62
Mobile Connect 64 Business Environment 66 Business Environment — Introduction 66 Policies for Progress 68 Base Station Siting and Safety 70 Competition 74 Efficient Mobile Market Structures 78 Environment and Climate Change 82 Infrastructure Sharing 86 Intellectual Property Rights — Copyright 90 Intellectual Property Rights — Patents 92 International Mobile Roaming 94 Mobile Termination Rates 96 Net Neutrality 98 Over-The-Top Voice and Messaging Communication Apps 102 Passive Infrastructure Providers 104 Quality of Service 106 Single Wholesale Networks 110 Taxation 114 Universal Service Funds 118
Spectrum Management and Licensing 122 Spectrum Management and Licensing — Introduction 122 Core Mobile Bands 124 5G Spectrum 126 Digital Dividend 128 Licensed Shared Access 132 Limiting Interference 136 Spectrum Auctions 140 Spectrum for Drones (UAVs) 144 Spectrum for IoT 146 Spectrum Harmonisation 148 Spectrum Licensing 152 Spectrum Licence Renewal 154 Spectrum Trading 156 Technology Neutrality and Change of Use 158 TV White Space 162
Consumer Protection 164 Consumer Protection — Introduction 164 Collaborating on Solutions to Today's Challenges 166 Children and Mobile Technology 168 Counterfeit Mobile Devices 172 Cross-Border Flows of Data 174 Electromagnetic Fields and Device Safety 178 Electromagnetic Fields and Health 182 eWaste 186 Government Access 188 Illegal Content 192 Internet Governance 196 Mandatory Registration of Prepaid SIMs 198 Mobile Device Theft 200 Mobile Security 202 Number-Resource Misuse and Fraud 204 Privacy 208 Privacy and Big Data 212 Service Restriction Orders 214
Signal Inhibitors 216
Capacity Building 218 GSMA Capacity Building 218
Appendix 222 GSMA Intelligence 222 10 Sustainable Development Goals
#betterfuture
Unanimously adopted by world leaders Communities, and 13: Climate Action. at a historic summit in September 2015, For all three, enhanced connectivity, the UN’s 2030 Agenda for Sustainable network quality and resilience were Development details 17 Sustainable the key drivers behind the industry’s Development Goals (SDGs) that act as the increased impact. The latest report also world’s to-do list to end poverty, reduce found that the goals where the industry inequalities and tackle climate change. is contributing the most are SDGs 9: Industry, Innovation and Infrastructure, In July 2015, the mobile industry was 13: Climate Action, and 11: Sustainable the first to commit to playing a leading Cities and Communities. role in delivering on the goals. This has seen mobile operators around The GSMA continues to focus on the world continue to work to deploy amplifying and accelerating the mobile mobile-enabled solutions that drive industry’s impact on the SDGs through greater inclusion in cities and remote collaborative initiatives such as Big Data communities, enable access to essential for Social Good. This initiative leverages services such as health and education, operators’ data to address humanitarian create employment opportunities, and crises and natural disasters. It follows empower people with the tools to reduce the successful introduction of the SDGs poverty and inequality. in Action mobile app, which can be downloaded from www.sdgsinaction. The GSMA has reviewed the industry’s com. Developed in collaboration with contributions towards achieving the the UN and Project Everyone, the app goals in two in-depth reports since provides a global forum through which 2015. In 2016, the first report highlighted industry, governments and individual where the industry can have greatest citizens can collectively realise the impact, and a follow up in 2017 found promise of the SDGs. the industry had been successful in increasing its impact across all 17 goals. The mobile industry’s continued and The greatest upward movement in increasing impact on achieving the goals 2016 was in SDGs 3: Good Health and is detailed over the following pages. Well-being, 11: Sustainable Cities and Mobile Policy Handbook 11 12 Sustainable Development Goals
Improving the industry’s impact on the SDGs Three underlying trends explain much of the improvement in the industry’s impact on the SDGs in 2016:
Better Networks Mobile operators have invested heavily in expanding infrastructure and improving quality of service. Nearly three-quarters of the world’s population — around 5.6 billion people — are now within reach of a 4G network, while overall 3G coverage rose to 86 per cent in 2017. In addition to providing access to mobile services, wider coverage, improved network quality and resilience play a critical role before and during epidemics, conflicts and natural or climate-related disasters. They support emergency communication and broadcast services and provide accurate and timely information on the movement of affected populations.
More Connectivity Operators continue to connect the unconnected, with 250 million new subscribers in 2017, bringing the total to 5.6 billion (68 per cent penetration); 330 million new mobile internet subscribers, bringing the total to 3.8 billion (52 per cent penetration); and 174 million more cellular machine-to-machine (M2M) connections, bringing the total to 600 million. The economic and social benefits of this are wide-ranging, with connectivity driving improvements in economic growth through improved productivity, infrastructure development and efficiency. Operators have been particularly proactive in pursuing more innovative solutions to roll out mobile networks in remote areas, making mobile services more affordable to the poorest individuals and driving efforts to accelerate digital inclusion for women.
Doing More With Mobile Users are becoming increasingly sophisticated in how they use their mobile phones and are starting to access more advanced mobile-enabled services. In 2016, more than 100 million new mobile money accounts were registered to reach a total of more than half a billion, allowing users to access financial services that enable them to make investments and manage expenses. There were also 500 million new users of social media on mobile to reach a total of 2.5 billion, helping promote social and political inclusion and facilitating the development of education networks. Mobile Policy Handbook 13
Population coverage
Nearly three-quarters of 3G 82% 86% 4G 5.6 billion the world's population 2016 2017
Network quality Average mobile broadband 13.5Mbps 16.6Mbps download speed 2015 2016 SDGs impacted
Mobile subscriber penetration 65% 68% 250m new subscribers 2016 2017
Mobile Internet subscriber penetration
48% 52% 330m new mobile internet subscribers 2016 2017
SDGs impacted
Mobile money registered accounts mAgri 13m more users of 23% 450m 556m 54% mAgri services in 2016 2015 2016
SDGs impacted 14 Sustainable Development Goals
Case Studies
How mobile is contributing to achieving SDG targets
Since committing to playing a leading role in delivering on the sustainable development goals, the industry has increased its impact across all 17 Goals. Below are practical examples that highlight how the industry is impacting four key goals.
Latin America: Connected devices improve patient outcomes
Increased connectivity enables users to access formal and informal health-related information via voice, SMS and mobile health applications. In 2016, an estimated 33 per cent of mobile subscribers — more than 1.5 billion people — used a mobile phone to improve their health. AxisMed is a chronic care management provider based in Brazil. It uses connected devices to track and transmit biometric data from patients to medical professionals who oversee their treatment plans. The devices are capable of monitoring blood glucose, blood pressure and other metrics, depending on the patient’s condition. The professionals are on-call 24×7 in the event of any complications. Over 80 per cent of patients monitored have adhered to their treatment plan, which AxisMed says has reduced hospital emergency ward visits by two-thirds and cut the length of hospital stays by half.
Asia: Infrastructure roll out to connect isolated villages
China’s big three phone companies have been rolling out infrastructure to the nation’s most remote areas under the government’s Village Connected Project. From 2004 to 2016, China Mobile built nearly 62,000 base stations, enabling mobile phone access for around 122,000 remote villages, which includes broadband access for around 33,000 villages and 2,167 rural schools. In 2016, China Telecom built network infrastructure to reach 35,000 villages, in the most remote parts of west and northwest Guangxi. As part of the same government project, China Unicom delivered broadband access to 12,146 villages across 17 provinces. Mobile Policy Handbook 15
North America: IoT innovation helps with water quality monitoring
AT&T and Ericsson are trialling low-cost connected sensors to monitor the water quality of the Chattahoochee river, which supplies drinking water to 4 million people. These sensors will allow Chattahoochee Riverkeeper, an organisation dedicated to protecting the water in the river basin, to remotely monitor water quality. For the trial, AT&T is currently using its 3G network to connect the sensors, but it plans to use LPWA as a standard solution in the future, as this will provide enhanced geographic coverage across the river basin.
Africa: Using mobile technology to predict rainfall
Telecel Burkina Faso, Orange Niger and Cameroon and Orange Group are working with the Rain Cell Africa consortium, a network of environment and climate change research institutions, on the feasibility and applications for predicting rainfall in sub-Saharan Africa using microwave signals. This is important as in tropical areas there is limited or no coverage of traditional weather stations. The first quantitative results were carried out in Africa in 2014. In 2015, the first international workshop on rainfall measurement from mobile networks was held with the participation of 18 countries. In 2016, a pilot project was launched in Ouagadougou, Burkina Faso, to predict urban flooding.
Resources: GSMA Report: 2017 Mobile Industry Impact — Sustainable Development Goals GSMA Report: 2016 Mobile Industry Impact — Sustainable Development Goals GSMA App: Sustainable Development Goals — The SDGs in Action Project Everyone website 16 Mobile for Development
Mobile for Development
Mobile networks are often the most For example, our work on closing the widespread and reliable infrastructure in digital gender gap has provided life- emerging markets where large sections enhancing services to more than 17 million of the population are often underserved women. Financial exclusion has been by basic services. The reach of mobile greatly reduced over the past decade, as networks puts the industry in a unique there are now 556 million mobile money position to act as an enabler in connecting accounts present in 92 countries. Our these populations to key infrastructure, as mobile enabled energy solutions have well as health and financial services. reached more than four million people, enabling families to provide safe lighting For example, two billion people worldwide at home for children to study, keep their lack access to formal financial services, 1.8 business open longer and generate more billion lack access to improved sanitation, income. And, our mHealth programme has 643 million don’t have access to electricity reached over one million families, resulting and 262 million rely on drinking water in better nutritional outcomes for pregnant that hasn’t been protected from outside women and children under the contamination, yet the majority of these age of five. people live within areas that are covered by mobile networks. M4D’s work seeks to test the feasibility of new ideas, support the deployment of Mobile for Development (M4D) is a those with the most potential and scale dedicated global team within the GSMA projects that have proven their worth. which brings together our mobile This section details how these efforts operator members, tech innovators, are translated into real projects with the development community and meaningful socio-economic impact. governments, to prove the power of mobile in emerging markets. It identifies opportunities and delivers innovations in financial services, health, agriculture, digital identity, energy, water, sanitation, disaster resilience and gender equality. Mobile Policy Handbook 17 18 Mobile for Development
Connected Society
Background Working towards this aim, the programme delivers evidence-based research, case Approximately 62 per cent of the world’s studies and advisory services to help population is not connected to the internet, mobile operators, policymakers and other and the majority of these people are rural stakeholders break down barriers related to consumers in developing countries. This network coverage, affordability, digital skills leaves them excluded from social and and locally relevant content. economic opportunities, and negatively impacts the economic development of the The programme also works closely with the countries in which they live. GSMA Connected Women initiative to close the gender gap in mobile phone ownership. For example, management consulting firm Furthermore, it collaborates with the GSMA McKinsey estimates that the internet could Disaster Response programme in its goal account for as much as ten per cent of of helping humanitarian organisations, Africa’s annual gross domestic product by governments, non-governmental 2025, due to the internet’s transformational organisations (NGOs) and the broader effects on retail, agriculture, education mobile ecosystem develop coordinated and healthcare. and highly effective disaster response mechanisms for the mobile industry. In the developing world, mobile is the cheapest and most convenient way of accessing the internet, and is often the first Public Policy Considerations internet touch point for rural consumers. According to GSMA Intelligence, mobile The growth of the mobile sector has internet penetration in the developing world enabled broader access to Information has increased steadily over the last ten years and Communications Technology (ICT). from approximately three per cent in 2007 However, barriers to accessing the mobile to 48 per cent today. internet and services remain, especially in developing countries. There are numerous However, despite this rapid increase, a areas that governments and other key number of barriers still stand in the way of stakeholders can focus on to help bridge these populations fully benefiting from the this digital divide. mobile internet. These include infrastructure challenges, affordability, and consumer Rural broadband expansion. Around 1.6 impediments such as digital literacy and billion of the 4.2 billion people who are still the lack of locally relevant content. offline live outside the coverage area of 3G mobile networks. These offline populations typically live in sparsely populated, Programme Goals rural areas that suffer from low income levels and weak or non-existent enabling The GSMA’s Connected Society programme infrastructure such as electricity and high- supports the mobile industry in its efforts to capacity fixed communications networks. bring mobile internet access to underserved All of these factors adversely affect populations in developing countries. the business case for mobile network Mobile Policy Handbook 19
expansion in these locations. However, the The majority of people in developing public sector, and national governments markets are accessing the internet for in particular, can help by aligning key the first time through a mobile phone, policies around best practice approaches but many are illiterate and have limited to spectrum allocation and pricing, digital skills. To address this barrier, infrastructure sharing, sector-specific governments can support the use of tools taxation, access to public infrastructure, such as the GSMA’s Mobile Internet Skills licence conditions and market structure. Training Toolkit to improve digital literacy.
Taxation and affordability. Sector-specific In many developing nations, there is taxes raise barriers to additional investment also a lack of content to make the mobile and mobile phone ownership and usage. internet relevant to local audiences. This is especially true in developing markets Governments have a crucial role to play where affordability is critical to increasing in addressing this. For example, by digital inclusion and access to the mobile ensuring that government services are internet. By adopting phased reductions accessible online or via mobile, they in mobile-specific taxes, governments can not only improve the efficiency of can benefit from the additional economic delivery of these services, but also create growth driven by the mobile internet, while incentives for citizens to use the internet. limiting short-term losses in tax revenue.
Breaking down barriers to mobile internet usage. A key barrier noted by consumers in underserved communities is the availability of affordable smartphones. The mobile industry, financial institutions, NGOs, governments and community organisations have a role to play in helping improve consumers' access to mobile devices, and stand to benefit from increased smartphone penetration and the ensuing socio-economic benefits.
Resources: GSMA Connected Society website GSMA Report: Digital Inclusion and Mobile Sector Taxation in Mexico GSMA Report: Mobile Internet Usage Challenges in Asia — Awareness, Literacy and Local Content GSMA Report: Rural Coverage — Strategies for Sustainability GSMA Report: Benefits of Network Competition and Complementary Policies to Promote Mobile Broadband Coverage GSMA Report: Digital Inclusion 2014 GSMA Report: Unlocking Rural Coverage — Enablers for commercially sustainable mobile network expansion GSMA Mobile Internet Skills Training Toolkit website 20 Mobile for Development
Digital Identity
Background Programme Goals
The ability to prove that you are who you Countries where a large percentage say you are and have this information of the population lack official ID have authenticated when interacting with an opportunity to bypass outdated the state or private companies is critical and cumbersome approaches to ID to accessing basic services such as provision and instead create new healthcare, education and employment, identity ecosystems based on as well as exercising voting rights or innovative, digital technology. benefiting from financial services. Yet World Bank estimates from 2017 indicate The GSMA Digital Identity programme that at least 1.1 billion people lack any form is working with mobile operators, of officially recognised ID, either paper or governments and the development electronic. This problem disproportionally community to demonstrate the impacts rural residents, poor people, opportunities and value of mobile as a refugees, women, children and vulnerable scalable and trusted platform to enable groups in Africa and Asia. The international robust digital identity solutions for the community has recognised this so-called underserved, leading to greater social, identity gap as a critical barrier to achieving political and economic inclusion. inclusive and sustainable social and economic development. Indeed, the ninth Mobile operators are ideally placed to target of UN Sustainable Development Goal play a leading role in the development (SDG) 16 sets an objective for everyone to of a digital identity ecosystem because have a legal identity by 2030. they have:
The identity gap is both a symptom of • Immense reach — they connect more slow economic development and a factor than five billion unique subscribers that makes development more difficult worldwide. and less inclusive. The problem is particularly stark when it comes to birth • Extensive networks of agents that can registration, with Unicef figures showing be used for face-to-face verification. that one in four children under five doesn’t have a legal identity simply because • A local presence that is bound by local their birth wasn’t registered. World Bank licenses and laws. research in sub-Saharan Africa indicates that more than half of the population • An ability to access unique customer lacks an official identity, yet more than attributes through network two-thirds of residents in the region have management tools. a mobile phone. These figures highlight the transformative potential of mobile • Experience in partnering with to bridge this ‘identity gap’ and catalyse governments and service providers. greater socio-economic impact in emerging markets.
Mobile Policy Handbook 21
Public Policy Considerations For example, in some countries mobile operators are already subject to identity- Digital identity has the power to increase related requirements, such as mandatory digital, social and financial inclusion, SIM registration and know-your-customer drive economic growth and prevent obligations for mobile financial services. fraud. Mobile identity platforms can help Taking an integrated policy approach governments leapfrog traditional paper- to these requirements would boost based ID systems and support the rollout momentum towards mobile-based digital of digital identity solutions. identity, as well as simplify the user journey. It is also important for policymakers To enable mobile-based digital identity to ensure that a critical mass of citizens solutions, policymakers should consider has had the opportunity to access an investing in and promoting e-government. official form of ID before imposing any Setting up digital tax declaration, voting, requirements on mobile operators to health and educational registration disconnect users who failed to register their systems can help drive demand and SIM using an ID. The needs of underserved accelerate adoption of digital identities in and vulnerable groups (including refugees, both developed and developing countries. those in remote areas or those with disabilities) should also be considered. Furthermore, an enabling regulatory environment needs to be put in place Governments also carry a responsibility if mobile is to deliver digital identity to foster and help create a trusted and authentication solutions to the environment where consumers’ privacy is underserved, and ultimately drive respected. Proportionate data protection improved social, political and economic and privacy frameworks, which are inclusion. To help create the right based on international best practices, environment, governments need to ensure are likely to encourage user adoption, there is consistency between the different support transparency and operational legal and regulatory instruments that effectiveness, thereby upholding the rights affect the management of digital identity, and minimising the liabilities of the parties and work to break down any legal, policy involved. Finally, governments should also and regulatory barriers that may inhibit the actively engage with mobile operators, roll out of mobile identity services. key stakeholders and the wider identity ecosystem to help drive interoperability and innovation.
Resources: GSMA Digital Identity Programme website GSMA Report: Regulatory and Policy Trends Impacting Digital Identity and the Role of Mobile GSMA Research: The Mandatory Registration of Prepaid SIM Card Users GSMA Report: Refugees and Identity — Considerations for Mobile-enabled Registration and Aid Delivery GSMA Case Study: Innovations in Mobile Birth Registration — Insights from Tanzania and Pakistan GSMA Mobile Connect website 22 Mobile for Development
Disaster Response
Background insights, and how the mobile platform can be used as a delivery channel in Mobile networks, and the connectivity the wake of humanitarian emergencies. they provide, are increasingly identified Equally important are efforts among as a lifeline in disasters because they stakeholders to ensure that crisis- support critical communication between affected communities have access to humanitarian agencies, affected populations mobile services, including collectively and the international community. addressing barriers such as the ability to meet know-your-customer requirements. The power of mobile was evident in the aftermath of the 2010 Haitian earthquake, which saw a proliferation of new Programme Goals coordination and response strategies that were built around mobile platforms and The GSMA Disaster Response Programme mobile-derived insights. works with mobile operators to determine how they can improve preparedness and Since then, experiences in the Philippines network resilience before disaster strikes, with Typhoon Haiyan, the Ebola crisis and help affected citizens and humanitarian in West Africa and the earthquakes in organisations following crisis. Nepal and Italy, as well as the ongoing displacement crises around the globe, Through research and engagement with have continued to provide examples mobile and humanitarian stakeholders, the of the critical importance of access to GSMA is working to define and share best communication and information for practices and create a robust, coordinated populations affected by disaster and crisis. disaster response mechanism for the mobile industry. From connectivity and information access for displaced populations to This work has culminated in the mobile money-enabled humanitarian Humanitarian Connectivity Charter, cash transfers for communities impacted launched in early 2015. The Charter by disaster, humanitarian responses are represents a set of shared principles and becoming increasingly reliant on mobile activities focused on strengthening access digital technologies. to communication and information for those affected by crisis and so reduce the The role of mobile in disaster preparedness loss of life and positively contribute to and response continues to grow, and as humanitarian response. the ecosystem becomes more complex, there is a need for a better understanding Mobile operators who have signed the of how the global mobile communications Charter currently represent subscribers in community can support continued access over 75 countries. to communication and information. There’s also a need for further understanding of how mobile network data can be used in privacy-friendly ways to derive helpful Mobile Policy Handbook 23
Public Policy Considerations • The guidelines should provide operators with flexibility to adjust to The GSMA has developed a set of unforeseen circumstances rather than recommendations for governments, insisting that rules designed for non- regulatory bodies and mobile operators emergency situations apply no matter to follow during times of crisis. what the circumstance.
The key elements of these • The guidelines should help improve recommendations are: communication and coordination among various government entities involved • Governments — along with relevant in responding to an emergency and multilateral agencies — and operators facilitate a timely and efficient response. should agree a set of regulatory or policy guidelines that can be adopted to best respond to and recover from an emergency.
• The guidelines should set out unambiguous rules and clearly defined lines of communication between all levels of government and operators in emergency situations.
Resources: GSMA Disaster Response website GSMA Humanitarian Connectivity Charter website GSMA Report: The State of Mobile Data for Social Good GSMA Report: Mobile is a Lifeline — Research from Nyarugusu Refugee Camp, Tanzania GSMA Report: Refugees and Identity — Considerations for Mobile-enabled Registration and Aid Delivery GSMA Report: Mobile Money, Humanitarian Cash Transfers and Displaced Populations GSMA Case Study: Italy Earthquake Response and Recovery GSMA Report: Mission Critical Communications GSMA Report: The Importance of Mobile for Refugees — A Landscape of New Services and Approaches GSMA Guidelines: The Protection of Privacy in the Use of Mobile Phone Data for Responding to the Ebola Outbreak 24 Mobile for Development
Ecosystem Accelerator
Background Programme Goals
The mobile industry has had a hugely The GSMA Ecosystem Accelerator works positive impact on the lives of citizens to bridge the gap between mobile in developing nations as it has delivered operators and start-ups, enabling strong a wide range of innovative services at partnerships that support the growth of unprecedented scale. However, many commercially sustainable mobile products opportunities remain untapped because and services. By opening the dialogue innovative start-ups in emerging between start-ups and mobile operators, markets face challenges in establishing the programme helps create synergies to partnerships with mobile operators and bring the most promising ideas to scale. vice versa. This, in turn, helps the industry deliver the most impactful mobile solutions For example, start-ups commonly report to the people and places that need them fundamental issues related to differences the most. in organisational goals, business language or technical limitations around non- Through the Innovation Fund in particular, harmonised Application Programming the programme leverages public sector Interfaces (APIs). Conversely, operators capital to provide funding and tailored report a lack of market insight, a scarcity support to competitively selected start- of appropriate partners, and a dearth of ups in emerging markets which can deliver clear business models when attempting strong socio-economic impact. to partner with local start-ups. Operators also report that when faced with a The Innovation Fund supports start-ups multitude of requests for partnerships in Africa and Asia-Pacific with non- from a large number of start-ups, they equity funding, mentorship and technical struggle to identify the best candidates assistance, as well as by facilitating for collaboration. partnerships with mobile operators. By 2020, the programme will award over £8 As a result, mobile operators miss out million to help start-ups in Africa and on new innovations and commercial Asia-Pacific realise their commercial and opportunities — sometimes disruptive — at social potential. a time when other players are becoming increasingly relevant within the ecosystem. Since its inception, the fund has received This is highlighted by GSMA research almost 1,000 applications globally from carried out in July 2016, which found start-ups focused on leveraging mobile that there were 314 active tech hubs in technology for the ‘sharing economy’ Africa. Of these hubs, 50 per cent report or to benefit small and medium-sized a partnership with at least one major ‘tech enterprises. Additionally, the nine start-ups giant’ — such as Microsoft, Google and who received the first round of funding Amazon — whereas only 13 per cent are collectively tackling nine of the 17 UN of the hubs were partnering with a Sustainable Development Goals. mobile operator.¹ Mobile Policy Handbook 25
The Ecosystem Accelerator programme Governments can also have an impact by is supported by the UK Department for becoming more involved in supporting International Development (DFID), the tech hubs, given their potential to facilitate Australian Government, the GSMA and the creation of new jobs and to develop its members. solutions that tackle social challenges and positively engage young people. Promoting investment in local start-ups also helps Public Policy Considerations broaden the available range of locally relevant content and services. This can help The innovative ideas and agile working drive the uptake of the internet and digital practices that start-ups bring to business services among the broader population. mean they often have a huge impact on Multilateral and non-government both economies and societies. This can organisations also have a role to play in already be seen in the transformative the emerging tech innovation landscape, effect that the new ‘sharing economy’ particularly in providing technical support is having on consumption patterns and and a platform for collaboration. communities around the world. Key stakeholders in the start-up ecosystem As a result, there is now an onus on also need to collaborate to ensure that governments to put in place policies that new mobile-based solutions achieve help start-ups to act and move quickly. scale and sustainability. For example, For example, governments can help by mobile operators can help by opening up breaking down bureaucratic barriers, Application Programming Interfaces (APIs) improving access to capital, and fostering to third-party developers and start-ups a culture of innovation where risk-taking is to encourage even more innovation in the not punished. mobile ecosystem.
1 GSMA, 2016. www.gsma.com/mobilefordevelopment/ programme/ecosystem-accelerator/ things-learned-tech-hubs-africa-asia
Resources: GSMA Innovation Fund website GSMA Report: Opening Doors — A Start-Up’s Guide to Working With Mobile Operators in Emerging Markets GSMA Report: Building Synergies — How Mobile Operators and Start-ups Can Partner for Impact in Emerging Markets GSMA Report: Corporate Venture Capital — An Opportunity for Mobile Operators and Start-ups in Emerging Markets GSMA Report: APIs — A Bridge Between Mobile Operators and Start-ups in Emerging Markets GSMA Video: The Power of Mobile Operator APIs 26 Mobile for Development
Mobile Agriculture
Background The main opportunities within agricultural value chains are business-to-person and Agriculture employs 1.3 billion people government-to-person transfers, which worldwide and contributes up to 35 per could respectively represent $2 billion and cent of GDP in developing countries. More $202 million of revenue each year by 2020. than 70 per cent of the world’s food is produced by smallholder farmers and their Existing evidence of the social impact of families, who struggle to earn a fair income mobile agricultural services is strong. Active due to factors such as financial exclusion, users of GSMA-supported mobile agriculture volatile climate patterns and lack of access to information services in Pakistan are 1.9 times infrastructure, new technology and markets. more likely to report an increase in income than non-users, and active repeat users in Mobile phone penetration in the Malawi are 3.6 times more likely to report an developing world is growing fast and increase in production than non-users. There is expected to reach 69 per cent by is clear evidence suggesting the changes 2020. This means mobile operators are were led by mobile: active users reported uniquely positioned to provide enterprise significantly more on-farm changes than solutions for large agribusinesses, while comparable non-users (e.g., subject also driving growth in rural areas and planting, land management and harvesting). boosting financial inclusion. Mobile enables smallholder farmers to make more informed decisions by delivering Programme Goals critical agricultural information and enabling access to financial services, The GSMA mAgri programme forges including digitised payments. It also helps partnerships between mobile operators, them make investments that boost their technology providers and agricultural productivity and profits. organisations. It supports scalable, commercial mobile solutions that impact Of the more than 750 million farmers in smallholder farmers and the agricultural the 69 selected developing countries that industry at large. Since 2009, the GSMA the GSMA studied across sub-Saharan mAgri programme has supported 12 Africa, South Asia, East Asia and Latin projects which have reached nearly 10 America in 2016, an estimated 295 million million smallholder farmers across Asia have a mobile phone and around 13 million and Africa with mobile agricultural and have a phone and mobile money account. nutritional services to improve their yields. By 2020, the GSMA forecasts that the number of farmers in these countries with a mobile phone will grow to 350 million. Public Policy Considerations Provided that mobile operators and other mobile money providers are able In some cases, national Ministries of to operate in an enabling environment, Agriculture have been important for they could add a significant share of these the success of information-based farmers as new mobile money customers. mAgri services. One example is where Mobile Policy Handbook 27
organisations linked to the Ministry of India, Bangladesh and Pakistan. There Agriculture have provided validation for is an increasing number of government-led the content that mobile network operators initiatives that negatively affect the uptake (MNOs) send to farmers. of information-based mAgri services across South Asia. These initiatives are However, there are also some challenges usually introduced as anti-spam measures that need to be addressed, such as: or to combat non-transparent service charges. In India, the telecoms authority Kenya and Tanzania. The Meteorological TRAI ruled that customers need to double- Departments in both markets have confirm their subscription to a service, with blocked mobile operators from using the second confirmation having to take private weather information, citing the place through a third party. government’s monopoly on this type of data. This kind of barrier hinders Bangladesh’s regulatory commission, the the uptake and value proposition of BTRC, has implemented a similar directive. mobile agriculture solutions and needs Operators are now banned from auto- to be addressed. Independent weather renewing mobile subscriptions to any forecast providers have also pointed to value-added service (VAS). In Pakistan, the difficulty in gathering the essential the industry has seen similar regulatory historical data used to boost the accuracy changes, though some operators have of their weather prediction models. benefitted from a more flexible framework.
Considering the vulnerability of small-scale These regulations represent a big entry farmers to climate change, it is critical for barrier for mAgri services and create service providers to have affordable access further challenges for the mobile for to weather data so they can produce development sector as it tries to reach out highly localised forecasts. These localised to the next 1.8 billion people in developing forecasts enable farmers to make informed markets. Affected operators and the GSMA decisions when planting, fertilising and are very concerned about these directives spraying their crops. and believe alternative solutions should be explored imminently.
Resources: GSMA Report: Creating Scalable, Engaging Mobile Solutions for Agriculture GSMA Report: Market Size and Opportunity in Digitising Payments in Agricultural Value Chains GSMA Report: Agri VAS Market Opportunity and Emerging Business Models GSMA Report: Agricultural VAS Toolkit 2.0 28 Mobile for Development
Mobile For Development Utilities
Background life-changing benefits of energy and clean water and sanitation to huge numbers of Rapid network expansion means mobile people in emerging markets. now reaches further than the electricity grid, piped water networks and sewerage networks in most emerging markets. Programme Goals Mobile coverage has grown extensively to cover more than 95 per cent of the world’s Challenges to providing universal access population; energy and water access lags to energy, water and sanitation services behind, with yearly growth figures stalled include last-mile distribution, operation at two per cent or below. Much also needs and maintenance costs, as well as to be done to bridge the current sanitation payment collection. gap, as 2.4 billion people still lack access to improved sanitation solutions. The result is The GSMA Mobile for Development a widening gap between access to mobile (M4D) Utilities programme focuses on and access to basic utility services. In fact, leveraging mobile network technology by 2014 mobile networks covered more and infrastructure to help solve these than 772 million people without access to challenges in emerging markets. electricity, more than 289 million people without access to clean water and 1.8 billion The programme was established in without access to improved sanitation. 2013 thanks to funding from the UK’s Department of International Development. This shortfall of affordable and sustainable The programme has also launched the utility infrastructure has a profound impact M4D Utilities Innovation Grant Fund, on people’s lives. For example, according which aims to accelerate the development to figures from charity WaterAid, 289,000 of promising mobile technologies and children under the age of five die each year business models that target improved due to diarrhoeal diseases caused by poor access to energy, water and sanitation water and sanitation. And poorer people services. The fund has so far provided 34 living off the electricity grid in emerging grants across 24 countries to innovators in markets often end up relying on expensive the utility sector. and harmful energy sources, such as kerosene, which suffer from fluctuating The key goals of the programme include: prices. As a result, a middle-class family in Europe can pay less for energy than a poor • Supporting the Innovation Fund family in a country such as Bangladesh.¹ grantees and their mobile operator partners to help them deliver on the However, by leveraging the enormous promise of their trials. reach of mobile — as well as innovative mobile technologies and services, • Demonstrating the commercial viability including machine-to-machine (M2M) of improving energy and water access communication and mobile money — the using innovative mobile technologies. industry is well positioned to help bring the Mobile Policy Handbook 29
• Driving further industry interest and Equally, several companies offering home support for increasing access to solar power kits in emerging markets energy and water services through rely on mobile money to make these kits mobile technology. affordable to low-income populations via Pay-As-You-Go financing. Governments should ensure supportive regulation is Public Policy Considerations in place to allow mobile money services to thrive and continue to sustainably Governments should recognise and provide these much-needed affordable support the role mobile can play in financing schemes. improving access to energy, clean water and sanitation in emerging markets. Furthermore, in developing markets, Mobile technologies are increasingly affordability is critical to increasing the becoming a key strategic element of the use of mobile phones and associated models used by Water, Sanitation and services such as mobile money. Hygiene (WASH) and energy providers to Mobile-specific taxes raise barriers to support service delivery. mobile phone ownership and usage. Governments can play a key role by For example, many energy and ensuring consumers don’t face higher water providers employ mobile M2M taxes on mobile handsets and services technology to support the delivery of than on other goods and services. their services. M2M technologies can be 1 GSMA, Sustainable Energy and Water Access through used to monitor water pumps remotely M2M Connectivity (2013) and trigger repair call-outs automatically when a fault occurs, reducing down time. Governments should ensure that taxation levels on M2M connections are set at appropriate rates to encourage these types of innovative solutions.
Resources: GSMA Mobile For Development Utilities website GSMA Mobile for Development Utilities Innovation Fund website GSMA Connected Society Programme website GSMA Mobile Money Payment Toolkit for Utilities Providers GSMA Report: Lessons from the Use of Mobile Money in Utility Pay-As-You-Go Models 30 Mobile for Development
Mobile Health
Background Uganda and Zambia — beating a target of one million originally set for August 2018. Developing countries continue to face poor healthcare funding, which has a negative The programme’s emphasis is on identifying effect on access, quality, cost and key high-potential mHealth services and helping health outcomes. Data from the World them to achieve scale and adoption. There Health Organization highlights the problem, are three key areas of focus: showing that over 400 million people in the world lack access to affordable basic • Product development. The GSMA healthcare.¹ There is also a significant supports product owners with user- shortage of health professionals, as staffing centric research in their markets in order levels are below WHO-recommended levels to inform the product design, pricing in many countries.² model and full value proposition of the mHealth services. By combining Mobile is the most viable solution qualitative and data-driven insights, the for delivering healthcare in countries GSMA works with the service partners where there is a large, unmet demand. to support product improvement and Statistically, many developing nations product roadmap decisions. have over 90 per cent 2G coverage, which allows the delivery of health information • Content development. By engaging services via basic mobile channels such with key global and local players in the as SMS and Interactive Voice Response field of nutrition, the programme fosters (IVR). The coverage of 3G networks the development of publicly available, has also increased to over 80 per cent digital market-specific and culturally- of the population, paving the way for sensitive mHealth content for eight the provision of more advanced digital sub-Saharan markets. health services where there are few alternatives available to end users. As a • Industry engagement. The programme result, mobile operators have a key role to works closely with health and mobile play as ICT and digital service partners for players across both the public and governments, health providers and health private sectors to ensure that services tech companies. not only become commercially sustainable, but also deliver positive public health outcomes. Programme Goals
The GSMA mHealth programme is Public Policy Considerations currently funded by UK Aid and aims to boost maternal and child health via mobile Digital health is taking its first steps in solutions that promote improved maternal some African, Asian and Latin American health and nutrition practices. By the end countries. The number of initiatives is of 2016, it had reached 1.14 million mothers growing, and there is widespread belief across eight markets — Ghana, Malawi, that digital health can help address key Mozambique, Nigeria, Rwanda, Tanzania, healthcare issues if it reaches scale. Mobile Policy Handbook 31
There are three main areas where it can Governments can play a key role in the have significant impact: development and success of the solutions by providing more stable government 1. Access: Digital health can widen the investment — as opposed to cyclical/ reach of healthcare services, as some (such individual initiatives — to help drive scale. as patient monitoring and diagnostics) can Ministries of Health can also encourage be delivered and managed remotely. It also and support the implementation of allows for greater and faster patient access national digital health plans by aligning to health information delivered via mobile. them with ICT and broadband plans. Setting outcome-based objectives is key 2. Quality: Digital health enables faster to driving execution and tracking progress. and more effective coordination of care Policy and regulation that promote and health professionals, and supports investment and facilitate faster time-to- timely data sharing. market of digital health solutions are a further key enabler to adoption and scale. 3. Cost: The transition from paper to digital ensures that available health Equally, digital health stakeholders need resources are used most effectively and to stimulate government investment by where and when they are needed the demonstrating how digital health solutions most. Mobile networks can also be a help address national healthcare issues. platform for solutions that strengthen A key difference and benefit of digital monitoring systems and help prevent the health initiatives in developing countries, spread of infectious diseases. compared to developed countries, is that these initiatives can not only improve Unfortunately, few digital health and quality and reduce costs, but also mobile health pilots are currently followed increase access. by full-scale implementation due to a lack 1 WHO Report: Tracking Universal Health Coverage of sustainable financing. In developing 2 The WHO critical threshold is 23 doctors, nurses and countries, venture-capital activity is limited midwives per 10,000 inhabitants and private sector healthcare provision is underdeveloped. As a result, government is likely to be the largest funder of digital health initiatives in these nations.
Resources: GSMA Mobile Health toolkit GSMA Report: The Journey of Telenor My Health in Pakistan GSMA Report: Kilkari — A Maternal and Child Health Service in India GSMA Report: Scaling Mobile Health in Developing Markets 32 Mobile for Development
Mobile Money
Background Furthermore, the mobile money industry has proven to be both viable Mobile money has done more to extend and sustainable: as of 2016, there were the reach of financial services in the last 277 services in 92 countries helping to decade than bricks-and-mortar banking transform the financial lives of more than has in the last century. 174 million active users.
This has been possible because mobile money leverages the ubiquity of mobile Programme Goals phones, along with the extensive coverage of mobile operators’ networks and retail Two billion people remain unbanked, distribution channels, to offer customers a without access to safe, secure and more secure and convenient way to access, affordable financial services. The GSMA send, receive and store funds. Mobile Money programme helps mobile operators and industry stakeholders As a result, mobile money has transformed to increase financial inclusion for these the financial services landscape in people by enhancing the utility and many developing markets, by both sustainability of mobile money services. complementing and disrupting traditional bricks-and-mortar banking. One of the The programme is working to develop keys to this success has been operators’ a robust, highly-interconnected mobile ability to use their large distribution money ecosystem where transactions networks to provide customers with easily for numerous sectors (such as retail, accessible mobile money agents who utilities, health, education, agriculture perform cash-in and cash-out transactions. and transport) are digitised. Diversifying This has helped registered customer customer usage patterns to include accounts grow to 556 million globally in not just merchant payments but also December 2016. transactions such as cross-border mobile money remittances and bulk disbursements In their 2015 annual letter, Bill and Melinda can accelerate network effects and broaden Gates cited mobile money as one of four the payments ecosystem. top solutions to end severe poverty by 2030. Market figures clearly support the To truly transform the financial lives of fact that mobile money is expanding underserved people, mobile money must financial inclusion. Services are now become a central monetisation mechanism available in 85 per cent of countries where that can be used to carry out a huge range the vast majority of the population lacks of digital transactions. By making mobile access to a formal financial institution, money more central to the financial lives of while in 19 markets there are more mobile users, greater financial inclusion, economic money accounts than bank accounts. empowerment and economic growth can be achieved. Mobile Policy Handbook 33
Public Policy Considerations Governmental bodies can also benefit in multiple ways from using mobile Regulation has a major impact on money for government-to-person the uptake of mobile money services. (G2P) and person-to-government Evidence shows that enabling regulatory (P2G) transactions. These include lower frameworks accelerates the development cash-handling costs, reduced security and adoption of digital financial services. risks, minimal theft of funds, increased By contrast, mobile money deployments transparency, instant transfers and in countries with non-enabling regulation improved operational efficiencies. report a smaller number of mobile money accounts and less agent activity. For mobile money to succeed, a level playing field must be established via When banks and non-bank providers, an enabling policy and regulatory especially mobile operators, are allowed framework that allows non-bank mobile to deploy mobile money services money providers to enter the market. and establish partnerships that make Regulators should: commercial sense, mobile money can be a catalyst for financial sector development • Embrace reforms to enable operators to by significantly expanding financial launch and scale mobile money services. inclusion through lower transaction costs, improved rural access and greater • Allow market players to determine the customer convenience. It can also provide timing, technical model and commercial the infrastructure to support a broad range model for all forms of interoperability. of financial services including insurance, savings and loans. • Allow market-led solutions to be implemented at the right time for Furthermore, mobile money can help consumers and providers. governments achieve their policy objectives of safe, secure and efficient It is also important that governments payment systems. It also reduces the refrain from imposing discriminatory vulnerability of a country’s financial taxes that target mobile money system by lowering the risks caused by customers, as these types of taxes the informal economy and widespread use are likely to increase consumer costs of cash. For example, by bringing more and generate a headwind against this people from the informal to the formal promising, socially beneficial service. economy, governments can increase transparency and make more informed economic policy decisions.
Resources: GSMA Mobile Money Programme website GSMA Mobile Money Regulatory Guide website GSMA Report: 2016 State of the Industry — Mobile Money 34 Mobile for Development
Women and Mobile
Background life-enhancing opportunities, such as health information, financial services and While mobile connectivity has grown employment opportunities. rapidly, it hasn’t touched populations in an equal way. In today’s increasingly The gender gap is not going to close connected world, many women are being on its own. Its root causes are driven by left behind. According to a 2015 study a complex set of social, economic and commissioned by the GSMA, there are 200 cultural barriers. These obstacles can only million fewer women than men who own a be overcome with targeted intervention by mobile phone in low- and middle-income all stakeholders, including policymakers, in countries.¹ Even those women who do own close collaboration with the entire mobile a mobile tend to use it less frequently and industry. Working together, leaders can intensively than men, especially for more make significant strides to redress this transformational services such as mobile gender imbalance, supporting the United internet and mobile money. Nations Sustainable Development Goals (SDGs) and in particular SDG number five, Women are often disproportionately which aims to achieve gender equality and affected by barriers to both access and empower all women and girls. use of mobile products and services. These barriers include the cost of handsets and services, network coverage, concerns Programme Goals around security and harassment, as well as a lack of technical literacy. Social norms The GSMA Connected Women programme are also an issue and can delay — or even is focused on accelerating digital and prevent — a woman from acquiring a financial inclusion for women. Its mission mobile phone and related services. is to reduce the gender gap in the use of mobile internet and mobile money services Closing the gender gap in mobile phone in low- and middle-income countries and ownership and usage has the potential unlock significant commercial and socio- to unlock substantial benefits for economic opportunities. women, as well as the mobile industry and the broader economy. Mobile can The programme works with mobile help empower women, by making them operators and their partners to address the safer and more connected, while also barriers to women’s use of these services, opening up access to information and unlock this substantial market opportunity
We call for immediate measures to achieve gender equality in internet users by 2020, especially by significantly enhancing women’s and girls’ education and participation in ICTs, as users, content creators, employees, entrepreneurs, innovators and leaders.
— UN General Assembly, WSIS+10 Outcome Document Mobile Policy Handbook 35
for the mobile industry, deliver significant Furthermore, governments can consider socio-economic benefits and transform strategies for increasing mobile and women’s lives. When women thrive, digital skills through changes to school societies, businesses and economies thrive. curricula or the introduction of training programmes. It may also be appropriate to Public Policy Considerations address harassment over mobile phones and mobile internet through awareness To address the gender gap, there’s a campaigns or legal and policy frameworks. need for policymakers and regulators to take a holistic approach to the issue Governments should also look at that respects both local and cultural including gender equality targets across sensitivities. Strategies, policies and all ICT and broadband strategies, policies, budgets that explicitly address women’s plans and budgets to support women and needs, circumstances, capabilities and girls in accessing and using the mobile preferences are essential if governments internet. When adopting this strategy are to truly make progress in closing the it is important that clear accountability gender gap. structures are put in place to ensure targets are delivered upon. Strategies should address issues of gender equality and social norms and ensure that Data on women’s mobile phone access mobile devices and services are accessible, and usage, and on ICT more broadly, is affordable, usable, safe and relevant for also not widely available or tracked in women and that women have the skills many low- and middle-income countries. and confidence to use them. For example, Without data, policymakers and the it is important to ensure appropriate policy mobile industry cannot make informed and regulation is in place to lower cost and decisions to help increase women’s access barriers for customers. This can access to, and use of, mobile phones. To be achieved by reducing mobile-specific address this, policymakers can consider taxes, supporting voluntary infrastructure options to track mobile access and use sharing among licensed operators, and by gender, along with other ICTs, in releasing sufficient spectrum at national statistics databases. affordable cost. 1 GSMA Connected Women: Bridging the Gender Gap — Mobile Access and Usage in Low- and Middle-income Countries (2015)
Resources: GSMA Connected Women website Broadband Commission Working Group on the Digital Gender Divide — Recommendations for Action: Bridging the Gender Gap in Internet Access and Use GSMA Report: Bridging the Gender Gap — Mobile Access and Use in Low- and Middle-income Countries GSMA Report: Accelerating Digital Literacy — Empowering Women to Use the Mobile Internet 36 Mobile Initiatives
Mobile Initiatives
Innovation and investment by the mobile The GSMA leads several programmes in industry continue to have an enormous key growth areas that present significant impact on the lives of billions of people benefits for consumers and clear around the world. Mobile doesn’t just opportunities for mobile operators. From deliver connectivity, it empowers people supporting the development of mobile through an ever-growing range of mobile- identity solutions to helping operators enabled services. prepare for a 5G future, these initiatives are laying the foundations of an increasingly Currently there are five billion unique connected, mobile world. mobile subscribers globally, which means that more than two-thirds of the global Each of the initiatives covered on the population is now connected to a mobile following pages has its own public policy service. By the end of the decade, almost considerations, and relates to one or more three-quarters of the global population will of the public policy topics presented in have a mobile subscription, with around this handbook. one billion new subscribers added over this period. Mobile Policy Handbook 37 38 Mobile Initiatives
Future Networks
The mobile industry is currently laying the future and the technology’s ultimate the groundwork for the transition to fifth success will depend on governments and generation (5G) technology. Building regulators prioritising its rollout. on the achievements of 4G, future 5G networks will help the mobile industry In tandem with their exploration of 5G capture the huge opportunity presented by technologies, network operators are the Internet of Things (IoT), usher in an era also continuing to upgrade their existing of even faster mobile broadband and pave networks. A key focus of these efforts is the way for ultra-reliable, ultra-low latency the transition to all-IP based infrastructure services, which may include exciting and services. This enables operators to technologies such as tactile internet, deliver a broader, deeper communications augmented reality and driverless cars. portfolio — incorporating voice, data, video and messaging services. With work on the development of 5G technologies and standards gathering With the increasingly widespread pace, there is a need for close collaboration deployment of Long Term Evolution between industry, policymakers and (LTE) networks, the move to global regulators to deliver on the promise of interconnected IP-communication services this next-generation technology. such as Voice over LTE (VoLTE), Video over LTE (ViLTE) and Rich Communication Governments and regulators can help by Services (RCS) is accelerating at a rapid adopting national policy measures that pace. Through its Future Networks encourage long-term, heavy investments programme, the GSMA is working with in 5G networks and by ensuring sufficient leading operators and equipment vendors harmonised spectrum is made available to further accelerate the launch of IP-based for 5G services. The decisions being made services around the world and pave the way now will have long lasting impacts for for the introduction of 5G infrastructure. Mobile Policy Handbook 39 40 Mobile Initiatives Future Networks
5G — The Path to the Next Generation
Background networks will adapt to applications and performance will be tailored precisely to Mobile telecommunication has had a the needs of the user. phenomenal and transformational impact on society. Starting from the earliest days Currently, there are three key areas of of first-generation analogue phones, focus for 5G development and innovation: every subsequent generational leap has brought huge benefits to societies around Internet of Things (IoT). There is a need the world and propelled the ongoing for 5G to capture the huge opportunity digitisation of more and more segments presented by IoT. Conservative estimates of the global economy. The mobile suggest that by 2025 the number of industry is now preparing to embark IoT devices will be more than double on the transition to fifth generation the number of personal communication (5G) technology, which will build on the devices. As the ecosystem grows, the achievements of 4G while also creating mobile industry will be expected to new opportunities for innovation. support bespoke services across industry verticals and develop next-generation A range of industry, research, academic services that are not achievable with 4G and government groups across the globe networks. are working to define the technology for 5G. The next generation mobile Mobile broadband. With each generational technology will need to provide higher leap in mobile technology there is a natural throughput, lower latency and higher progression to faster and higher-capacity spectrum efficiency. broadband. Mobile broadband services using 5G technology will need to meet and exceed Between now and 2020, the year when customers’ expectations of faster and more 5G is expected to become commercially reliable access. available, the mobile industry will continue to take steps towards achieving Ultra-reliable, ultra-low latency these goals by evolving existing 4G services. Superior speed, very high networks. Despite these enhancements to reliability and reduced latency will see 4G, there is still a need for 5G to meet the 5G nurture new services that cannot be demands of future services and platforms. supported on existing 4G networks. Some By 2025, 5G could account for over one of the services being considered include billion connections and 5G networks are tactile internet, virtual/augmented reality, likely to cover one third of the world’s driverless cars and factory automation. population. The impact on the mobile industry and its customers will The GSMA aims to play a significant role in be profound. helping to shape the strategic, commercial and regulatory development of the 5G But 5G is more than a new generation ecosystem, including areas such as the of technologies: it will usher in a new identification and alignment of suitable era in which connectivity will become spectrum bands. increasingly fluid and flexible, as 5G Mobile Policy Handbook 41
Working closely with the mobile operators bands should also be encouraged pioneering 5G, the GSMA is also engaging to support wider area 5G services. with governments and vertical industries Governments and regulators can enable (such as the automotive, financial services, refarming and encourage heavy investment healthcare, transport and utilities sectors) in 5G networks by supporting long-term to develop business cases for 5G. technology neutral mobile spectrum licences with clear renewal procedures.
Public Policy Considerations The GSMA believes that three key frequency ranges are needed for 5G The GSMA regards 5G as a set of to deliver widespread coverage and requirements for future mobile networks support all use cases: sub-1 GHz, 1-6 GHz that could dramatically improve the and above 6 GHz. Higher frequencies — delivery of mobile services and support especially above 24 GHz — will be needed a variety of new applications. The to support superfast speeds in hotspots. mobile industry, academic institutions Governments will need to support these and national governments are currently new higher frequency mobile bands at the actively investigating what technologies World Radiocommunication Conference could be used in 5G networks and the in 2019. Lower frequencies will be needed types of applications these could and to support wider area broadband access should support. The speed and reach of and Internet of Things services. Exclusive 5G services will be heavily dependent on licensing remains the principal and access to the right amount and type of preferred regime for managing mobile spectrum. broadband spectrum in order to guarantee quality of service and network investment. Additional new spectrum will be required However, the licensing regime in higher for 5G services, especially in very high frequency bands, such as above 6 GHz, frequency bands, in order to support could be more varied than in previous significantly faster data speeds and mobile technology generations, to suit deliver enhanced capabilities. However, more flexible sharing arrangements. progressive refarming of existing mobile
Resources: GSMA 5G website GSMA Blog: Five Things You Wanted to Know about 5G, But Never Dared to Ask GSMA Report: The 5G Era — Age of Boundless Connectivity and Intelligent Automation GSMA Report: 5G in China — Outlook and Regional Perspectives GSMA Report: Understanding 5G — Perspectives on Future Technological Advancements in Mobile GSMA Public Policy Position: 5G Spectrum 42 Mobile Initiatives Future Networks
IP Communication Services
Background • ViLTE. This enables operators to deploy a commercially viable, carrier-grade, IP communication is increasingly person-to-person video-calling service. recognised as a natural evolution of core Like VoLTE, it is based on IMS technology. mobile services, and therefore a basic requirement of doing business in the • VoWiFi. This allows operators to offer future. The IP Multimedia Subsystem (IMS) secure voice calling over WiFi. As of has emerged as the preferred technical September 2017, there were 55 VoWiFi means for transferring core mobile services commercially available in operator services to an all-IP environment 32 countries. because of its flexibility, cost-effectiveness and support for IP services over any • RCS. This marks the transition of access medium. With over 600 of the messaging from circuit-switched world’s mobile network operators having technology to an all-IP world, leveraging now launched Long Term Evolution (LTE) the same IMS capabilities as VoLTE and networks, and LTE coverage currently ViLTE. RCS incorporates messaging, exceeding 70 per cent of the world’s video sharing and file sharing, enriching population, the industry is now in a realistic the communication experience of position to make a global, interconnected consumers. As of September 2017, IP communications network a reality. IP RCS was being offered by 52 mobile communications is comprised of Voice operators in 38 countries. over LTE (VoLTE), Video over LTE (ViLTE), Voice over WiFi (VoWiFi) and Rich The GSMA, via its Future Networks Communication Services (RCS). programme, is working with leading operators and equipment vendors • VoLTE. This offers an evolutionary to accelerate the launch of IP-based path from circuit-switched 2G and 3G services around the world. The work of voice services to all-IP packet-switched the Future Networks programme covers voice and includes a range of enhanced the development of specifications, features for customers, such as high- assisting operators with the technical definition audio quality and shorter and commercial preparations for service call connection times. As of September launches and resolving technical and 2017, there were 113 voice and video logistical barriers to interconnect. LTE services commercially available in 58 countries. Mobile Policy Handbook 43
Public Policy Considerations Interconnect. VoLTE, ViLTE, VoWiFi and RCS support interconnection To support the exponential growth in IP of these services between customers traffic, large-scale investments in network on two different mobile networks. capacity are required. Financing such investments depends on predictability Lawful intercept. Mobile network and the existence of a stable regulatory operators are subject to a range of laws environment. Where such an environment and licence conditions that require them exists, future communications capabilities to be capable of intercepting customer that are operator-led can be well aligned communications (and sometimes also with the regulatory requirements related retaining certain data, such as the time to mobile telecommunications, and mobile and content of the communication, as well network operators have the systems in as the location, numbers or IP addresses place to ensure compliance. of the participants) for disclosure to law enforcement agencies upon request. The Open standards. VoLTE, ViLTE, VoWiFi specifications for IP communications and RCS are currently specified, through a are being developed so they support process of industry collaboration, as open the capabilities needed to meet lawful industry standards for IP-based calling, interception obligations. messaging, file and video-sharing services, generically based on IMS technology.
Resources: GSMA Report: Building the Case for an IP-Communications Future GSMA All-IP Business Guide website Greenwich Consulting Report: The Value of Reach in an IP World 44 Mobile Initiatives Future Networks
Voice over Long Term Evolution
Background In most markets it will take a number of years to phase out 2G and 3G networks Consumers expect seamless carrier-grade and fully migrate customers to LTE-based voice services from mobile operators, networks and services. For voice services, irrespective of the type of technology used. the transition is facilitated by the fact that VoLTE has been designed to support the Since the introduction of digital mobile seamless handover of calls to and from technologies in the early 1990s, carrier- 2G and 3G networks. grade public mobile voice services have been delivered via the circuit-switched VoLTE has a number of characteristics capabilities of 2G and 3G networks. that distinguish it from internet-based voice services. These include carrier-grade To keep pace with growing demand, mobile call quality and reliability, and universal operators are now upgrading their networks interconnection with other ‘carrier-operated’ using a fourth-generation IP-based voice services across the globe. By contrast, technology standard called Long Term the majority of internet-based voice services Evolution (LTE). LTE networks incorporate are not managed for service quality and may a new carrier-grade voice capability called be restricted to closed user groups. Voice over LTE (VoLTE) that offers an evolutionary path from circuit-switched 2G In some jurisdictions, interconnection and 3G voice services. VoLTE includes a of carrier-grade mobile voice services range of enhanced features for customers, is unregulated and carried out pursuant such as high-definition audio quality and to a range of different commercial shorter call connection times. agreements. In other jurisdictions, regulated mobile call termination rates Some operators now have LTE networks apply. These rates typically use a time- that offer full national coverage and are based charging mechanism and their levels using VoLTE for voice calls. Other operators are set using a number of different cost- still only have partial LTE network coverage. oriented methodologies. Mobile Policy Handbook 45
Public Policy Considerations VoLTE is an evolution of carrier-grade mobile voice services that have historically Voice over Long Term Evolution (VoLTE) been provided using the circuit-switched is a carrier-grade mobile voice service, capabilities of 2G and 3G networks. As such, making it distinct from other internet- regulators should not apply additional, based voice services. or specific, regulations to VoLTE services.
Carrier-grade mobile voice services have In markets where mobile voice call a number of specific characteristics. For termination is subject to regulatory control, example, the use of mobile phone numbers the same approach should be adopted for from national numbering schemes means VoLTE, with a single rate applied across 2G, that customers can make calls to, or receive 3G and 4G/LTE voice call termination. calls from, any other phone number in the world. Carrier-grade mobile voice services also use dedicated network capacity (technically known as bearers) to assure end-to-end service quality and reliability.
Resources: GSMA Future Networks — Voice over LTE website ECN Magazine: VoLTE — What Makes Voice over IP ‘Carrier-grade’? 46 Mobile Initiatives
Internet of Things
The Internet of Things (IoT) is set to have a GSMA Intelligence, the number of cellular huge impact on our daily lives, helping us machine-to-machine (M2M) connections to reduce traffic congestion, improve care is expected to have reached just under for the elderly, create smarter homes and one billion by 2020. However, this will still offices, increase manufacturing efficiency represent a small portion of the overall and more. market, as Machina Research predicts that the total number of IoT devices will have IoT involves connecting devices to the grown to 22.6 billion by 2020. internet across multiple networks to allow them to communicate with us, applications The GSMA, through its IoT programme, and each other. It will add intelligence to is encouraging the development of the devices that we make use of on a daily nascent IoT ecosystem by working basis and in turn deliver positive impacts to define industry standards, promote to both the economy and broader society. interoperability and encourage governments to create a supportive We are set to see rapid growth in IoT environment that will speed the growth over the coming years. According to of IoT globally. Mobile Policy Handbook 47 48 Mobile Initiatives Internet of Things
Encouraging the Growth of IoT
Background However, IoT business models, markets and services are fundamentally different The Internet of Things (IoT) promises to from traditional telecoms services, such as deliver a huge range of benefits to citizens, voice and messaging. In most cases, IoT consumers, businesses and governments. services have a closed user group and the Referring to machines, devices and customers are not typically end users of appliances of all kinds that are connected the service, but businesses that need to to the internet through multiple networks, be able to roll out IoT solutions globally. the IoT has tremendous potential to shrink Also, IoT services are characterised by a healthcare costs, reduce carbon emissions, significantly lower average revenue per increase access to education, improve connection than traditional voice and transportation safety and much more. messaging services.
Through its IoT programme, the GSMA Therefore, if governments are to create a aims to accelerate the delivery of these supportive environment for the IoT, they types of connected devices and services, must recognise these differences. Policy and thereby enable a world in which and regulatory frameworks for IoT should consumers and businesses enjoy rich new be flexible, balanced and technology- services, connected by an intelligent and neutral to ensure they support large-scale secure mobile network. deployments and encourage investment.
The IoT market is already developing at In 2016, the GSMA introduced the a rapid pace. According to figures from IoT Knowledgebase, an online tool Machina Research, by the end of 2017 the for policymakers and regulators that number of cellular IoT connections will is designed to help them unlock IoT have reached 520 million, with that figure opportunities for their country, understand set to soar to just above one billion by new IoT business models and learn about 2020. Understandably, governments and emerging policy and regulatory best regulators are increasingly interested in practice from around the world. how they can capture the benefits of the IoT and channel them to their citizens. Mobile Policy Handbook 49
Public Policy Considerations Governments and regulators can play a significant role here too, by supporting and There is huge potential for the IoT to promoting interoperable specifications and transform economies and societies, but standards across the IoT industry. This is the technologies and ecosystem that important to the future growth of the IoT, support IoT are still at an early stage of as interoperable platforms and services development. If governments are to realise reduce deployment costs and complexity, the significant socio-economic benefits facilitate scalability and enable consumers that IoT can deliver, they must foster to enjoy intuitive connected experiences. an investment-friendly and technology- neutral environment that will allow it As the IoT is projected to grow hugely to grow and flourish. in the coming years, governments also need to adopt a flexible framework for Governments can achieve this by putting both licensed and unlicensed spectrum, in place policies that provide the right to ensure mobile operators can deploy incentives for growth and innovation. the most appropriate technology mix. They can also lead by example through the adoption of IoT solutions in the The IoT presents significant opportunities public sector or by funding research for data-driven innovation to achieve and development programmes. economic, social and public policy objectives and improve people’s daily As the IoT ecosystem is composed of a lives. However, for this to happen, data large number of diverse players, policy protection and privacy legal frameworks frameworks must be based on the need to be practical, proportionate and fair regulation of equivalent services. applied consistently to all parties in the IoT Regulatory clarity is also hugely important value chain. This will help create a climate to give service providers and IoT device of trust between industry and end users. manufacturers the confidence to make the necessary investments in this emerging technology for it to achieve global scale.
Resources: GSMA IoT website GSMA IoT Knowledgebase for Policy and Regulation website GSMA Report: Mobilising the Internet of Things 50 Mobile Initiatives Internet of Things
Global Deployment Models for IoT
Background Mobile operators are already taking the lead in supporting global service The Internet of Things (IoT) is ushering in launches in early market categories such an era where unprecedented numbers of as automotive, smart cities and consumer devices will become connected all around electronics. With the emergence of new the globe. The scale and reach of this products in adjacent categories, including machine-to-machine (M2M) connectivity healthcare and wearable devices, the will allow new services to develop that can importance of being able to support help societies make more efficient use of large-scale, global deployments is likely to resources across a range of industries and increase. sectors, including healthcare, agriculture, transportation and manufacturing. Operators can choose from a range of different global deployment models, However, if governments and societies including M2M international roaming, the are to tap into these benefits, companies remote provisioning of embedded SIM operating within the IoT ecosystem will technology for M2M developed by the need to be able to deploy their services on GSMA’s IoT programme, or a hybrid of the a global, rather than local, scale. It is only two. New deployment models may also by following global deployment models emerge in the future. that the nascent IoT industry can pass on to consumers the benefits they get from The choice of deployment model may economies of scale for service delivery. depend on a number of factors, such as:
Global approaches to service deployment • The particular needs of the mobile have a number of advantages. For operator, IoT service provider and example, they accelerate the speed and end user. quality of deployment and also drive down the cost of servicing smaller, local markets • The scale and geographical footprint where the creation of a bespoke local of the deployment. service would otherwise be uneconomical. Furthermore, they help guarantee the • The type of IoT application and its unique delivery of a consistent, high-quality service requirements. experience to the end user. • The device lifetime and its accessibility.
Mobile Policy Handbook 51
Public Policy Considerations This is why policymakers and regulators should avoid steering the industry towards The IoT has the potential to bring a one-size-fits-all approach to deployment substantial social and economic benefits and provisioning. Instead, governments to citizens and businesses through more should encourage innovation in IoT efficient use of resources, the creation of new deployment models and understand that jobs and services, increases in productivity operators will be required to adopt flexible and improvements in service delivery. commercial and technical solutions in different countries and regions around However, IoT business and distribution the world. models are very different to those used to deliver traditional telecoms services, Governments can support the global such as voice and messaging. Typically, nature of the IoT market in other ways, they are global in nature, with elements such as by backing interoperable platforms of the value chain spread across various and services to reduce deployment costs countries and regions. and complexity, ensuring that all players in the IoT market are operating on a level The great diversity in the range of services regulatory playing field, and working on offer and the partners involved in IoT, together across jurisdictions to ensure as well as this geographical spread in the consistency and clarity on legal, data value chain, make it hugely important protection and privacy regulation. for the industry to be able to develop and select the most suitable deployment models for different types of IoT services.
Resources: GSMA Report: Understanding the Internet of Things PWC Report: Realising the Benefits of Mobile-enabled IoT Solutions GSMA IoT: Remote SIM Provisioning website 52 Mobile Initiatives Internet of Things
Connected Drones (UAVs)
Background Public Policy Considerations
The development of Unmanned Aerial New regulatory frameworks for drones Vehicles (UAVs), commonly called drones, should ensure that they can, where has advanced at a rapid pace in recent required, be equipped with SIM cards years. Military use was the early focus of and a communications modem so the these developments, but the potential for drone ecosystem can benefit from drones to be used within a civilian context mobile connectivity. for innovation in both new and existing services is now widely recognised. This would deliver many benefits to the drone industry: Goldman Sachs forecasts that drones will evolve into a $100 billion market by 2020.1 • Mobile networks provide a global, Use cases range from filming for news interoperable and scalable platform reporting and entertainment, to inspecting that allows innovative services to key infrastructure such as power plants, develop and benefit from the existing roads, buildings, cell towers and power mobile ecosystem. lines. In agriculture, drones are already being used to produce timely crop surveys • Many mobile operators already run 4G to help boost yields. LTE networks which meet very high- bandwidth, low-latency requirements, The rapid development of this market while at the same time offering huge means regulators are struggling to keep scalability and exceptional quality pace. However, regulatory efforts are now of service. focused on the creation of frameworks that will allow the sector to continue to • The mobile industry already works develop and innovate, but at the same collaboratively with IoT partners time limit risks related to safety, privacy throughout the value chain to and data protection. The fact that drones embed privacy and security into IoT fly across borders adds an additional layer technologies. As a result, the drone of complexity to these efforts. market can benefit from existing initiatives such as the GSMA’s Security Mobile operators are a key enabler for Guidelines and Privacy by Design Toolkit. drones, helping to unlock their potential. By providing the connection between Mobile connectivity can help establish the drones and their control centres they controlled and safe operation of drones by ensure reliable communication with the ensuring secure, high-quality connectivity drone on its flight path and support the between drones and their control centres. transfer of data between the drone and its control centre. Mobile Policy Handbook 53
This connectivity delivers a number In order to ensure existing licensed of capabilities that can benefit the mobile spectrum is available for drone drone ecosystem: connectivity, regulatory authorities responsible for spectrum and regulators • Mobile connectivity can form part of responsible for drones need to co-operate unmanned traffic management solutions to remove barriers that could hinder the and enable no-fly zones. use of existing licensed mobile spectrum for drone connectivity. • A mobile-based solution could be 1 www.goldmansachs.com/our-thinking/ an effective way to enable drone technology-driving-innovation/drones identification and authorisation services, as identity verification and management is already a key component of mobile services.
• Mobile connectivity can assist law enforcement by enabling identification and tracking of drones.
• The mobile industry has a strong track record of implementing privacy and data protection measures.
Resources: GSMA Internet of Things — Drones website 54 Mobile Initiatives Internet of Things
Connected Vehicles
Background One example of this is remote provisioning of the GSMA’s Embedded The automotive world is about to undergo SIM Specification. This provides a single the single greatest revolution since its mechanism for the remote provisioning inception. Autonomous vehicles and and management of machine-to-machine Intelligent Transport Systems (ITS) are set (M2M) connections, allowing ‘over-the- to transform the efficiency, comfort, safety air’ provisioning of an initial operator and environmental impact of road transport. subscription, as well as subsequent changes of subscription from one The first fully autonomous-capable cars operator to another. have been launched and according to data from Machina Research the number of Mobile technology is also set to play factory-fit connected vehicles worldwide a vital role in ITS by providing Cellular is expected to reach 366 million by 2025. Vehicle-to-Everything (C-V2X) services. In Europe, eCall regulation means that all Standardised by 3GPP, C-V2X supports new models must have 2G or 3G modules connectivity between devices (whether onboard from March 2018 to automatically in vehicles, roadside infrastructure or alert the emergency services in the event mobile devices) as well as between of an accident. devices and networks. C-V2X is being developed within the traditional mobile Through its IoT programme, the GSMA ecosystem and brings all the advantages is actively engaging with vehicle and capabilities that traditional cellular manufacturers, mobile network operators, networks offer: security, privacy, SIM vendors, module makers and the interoperability as well as an innovation- wider Cooperative Intelligent Transport oriented and future-proofed ecosystem System (C-ITS) ecosystem to facilitate (5G technology). The 5G Automotive the development of current and future Association (5GAA) — whose 60 members connected-vehicle solutions. include the main vehicle manufacturers — support C-V2X. The primary platform for these activities is the Connected Vehicle Forum. Established by the GSMA, it promotes dialogue across all stakeholders in the automotive and C-ITS ecosystem and looks to find innovative ways mobile technology can be leveraged by these sectors. Mobile Policy Handbook 55
Public Policy Considerations the 5.9 GHz band. This generally includes a dedicated portion for safety-related Connected vehicle and intelligent transport communications between vehicles, applications have the potential to bring infrastructure and people. substantial benefits to consumers, including making travel safer, reducing Regulators should adopt a technology- congestion and providing real-time neutral approach to this spectrum, information to passengers. rather than mandating or preferring one approach. Equally, it is important that Connected vehicle applications and services technology-neutral spectrum licences are have a number of distinctive features. They adopted as this will allow existing mobile need to operate globally, support very bands to be refarmed for 5G, enabling long ‘device’ lifetimes, integrate with local lower-latency connectivity, and thus intelligent transport solutions and comply improved response times for emergencies. with local security, data protection, privacy and emergency regulations. Furthermore, spectrum in the 3.4-3.8 GHz range should not be set aside for safety- It is important that policymakers and based vehicle-to-vehicle communications, regulators appreciate and understand as this spectrum is critical for future these differences, implement policies that commercial 5G services in many countries allow global business models to develop around the world. This also highlights and ensure that policies apply consistently the need for regulators to work with the to all players in the value chain. mobile industry to support connected vehicles in future spectrum planning. As ever more cars become connected, For example, it is essential that sufficient spectrum policy related to intelligent spectrum below 6 GHz is made available transport systems will become increasingly as this spectrum travels further and is important in the future. In many countries better suited to the wide-area connectivity around the world regulators have set aside required by connected cars. a portion of spectrum for ITS, typically in
Resources: GSMA Report: Automotive IoT Security — Countering the Most Common Forms of Attack GSMA Report: Mobilizing Intelligent Transportation Systems GSMA Transforming the Connected Car Market website GSMA Case Study: EE Brings Safer Driving to the UK’s Roads GSMA White Paper: Split Charging and Revenue Management Capabilities for Connected Car Services GSMA White Paper: Connecting Cars — BYoD, Tethering Challenges 56 Mobile Initiatives Internet of Things
Digital Health and IoT
Background Public Policy Considerations
The pressures on healthcare systems have Use cases for Digital Health solutions are never been greater, because of factors varied, from medical devices that collect including rising expectations, ageing patient data to applications that deliver populations and, particularly in emerging health services and information — providing economies, the combined challenges of support in the area of prevention (including infectious disease and increasing incidence lifestyle and wellness), diagnosis and of chronic illness. Mobile health solutions management. As such, there are a wide can help healthcare providers deliver range of potential regulatory touch points. better, more consistent, more efficient and more widely available health services and Although significant progress has been empower individuals to manage their own made over the last few years, there is an health more effectively. ongoing need for clarity in policy and regulation related to Digital Health to ensure According to a 2015 report by PWC, Digital safety, promote confidence among patients Health could save over one million lives and healthcare professionals, and provide in sub-Saharan Africa over the next five industry with sufficient certainty to bring years and the use of Internet of Things new products and services to the market. (IoT) technology could reduce healthcare costs by €99 billion in the European Union Policy themes include: and add €93 billion to the region’s gross domestic product by 2017. Patient-centred healthcare. Developing policies that promote patient-centred Many mobile health propositions have care and user autonomy to help drive gained acceptance and are being more Digital Health adoption. widely adopted. The market is developing, and this growth is accompanied by a Access. Promoting initiatives to integrate rapid increase in the number of solutions Digital Health services into healthcare that potentially offer new modalities of systems and care pathways to encourage care. Greater consideration is therefore the development of value-based care being given to the policy and regulatory models that reward health outcomes and frameworks that will govern their support innovation. promotion and use. Implementation. Building evidence and establishing government programmes to enable large-scale implementations of Digital Health solutions.
Systems, interfaces and interoperability. Promoting interoperability and standards that support scalability and a plug-and- play experience. Mobile Policy Handbook 57
Regulatory themes include: Data protection. Ensuring an appropriate regulatory framework is in place for Medical devices. Developing and data protection and privacy is of key implementing clear and proportionate importance. Regulatory measures should regulatory frameworks that aim to ensure be proportionate and facilitate the use patient safety while stimulating innovation. of data in creating patient-centred and sustainable healthcare systems.
Consumer use — Telehealth
Embedded mHealth
Remote Comms access Patient Device module Patient Device to data
Data
Network Carer
Clinical - Telemedicine
Intervention Patient Connected devices
Medical Mobile mHealth Clinician Clinician device device record
Source: PA Consulting Group
Resources: GSMA IoT in Health website GSMA Report: Digital Healthcare Interoperability GSMA Response: The European Commission Green Paper on mHealth GSMA Webinar: Advancing Interoperability in Digital Health Mobile World Live Blog: Can Connected Health be the Lifeblood of 5G? PWC Report: Realising the Benefits of Mobile-enabled IoT Solutions 58 Mobile Initiatives Internet of Things
Privacy and Data Protection for IoT
Background However, IoT services aimed at consumers are likely to involve the generation, The Internet of Things (IoT) offers distribution and use of detailed data significant opportunities and potential about those consumers. For example, for data-driven innovation to achieve a smart home appliance may use data economic, social and public policy about a person’s eating or exercise habits objectives, and ultimately improve to draw inferences about that person’s people’s daily lives. For example, the IoT health and steer them towards healthier will enable a raft of new applications and lifestyles, or develop a profile based services that will empower consumers to on their shopping habits to offer them monitor their health, manage their energy personalised money-off vouchers. consumption and generally benefit from smart home and city solutions. These These types of IoT services and devices applications have the potential to drive have the potential to impact people’s a range of positive outcomes, including privacy and may be subject to general improved traffic management, lower data protection and privacy laws. Where pollution levels and healthier lifestyles. IoT services are provided by mobile operators they will also be subject to Many IoT services will be designed to telecommunications-specific privacy create, collect or share data. Some of this and security rules. Nevertheless, as data (e.g., data about the physical state of consumer IoT services gain in popularity, machines or weather conditions) may not more consumer data will be created, impact on consumers’ privacy and as a analysed in real time and shared between result won’t be considered personal data. multiple parties across national borders. Therefore, companies throughout the IoT ecosystem have a responsibility to build trust among consumers by ensuring their privacy is respected. Mobile Policy Handbook 59
Public Policy Considerations Most importantly, protections should be practical, proportionate, and designed To realise the opportunities that the IoT into IoT services (privacy by design) offers, it is important for consumers to to encourage business practices that trust the companies who are delivering IoT provide transparency, choice and control services and collecting the data generated for individuals. by them. The mobile industry’s view is that consumer confidence and trust can only be IoT services are typically global in nature fully achieved when users feel their privacy and a mobile operator is often only one of is appropriately respected and protected. many parties in a delivery chain that may include a host of others, such as device There are already well-established data manufacturers, search engines, online protection and privacy laws around the platforms and even the public sector. world. Where these data protection Therefore, it is key that privacy and data regulations and principles exist, they protection regulations apply consistently can also be applied to address privacy across all IoT providers in a service and needs in the context of IoT services and technology-neutral manner. This will help technologies. It is vital that governments ensure a level playing field for all industry apply these frameworks in ways that players so they can focus on building trust promote self-regulation and encourage and confidence for end users. the adoption of risk management-based approaches to privacy and data protection.
Resources: GSMA Report: The Impact of the Internet of Things GSMA Report: Safety, Privacy and Security Across the Mobile Ecosystem GSMA Report: Privacy Design Guidelines for Mobile Application Development GSMA News: U.S. Senate Subcommittee — Respect for Privacy Vital for Growth of the IoT 60 Mobile Initiatives Internet of Things
Smart Cities and IoT
Background Mobile operators are at the heart of this change, offering solutions based on mobile The world’s population is increasingly IoT networks that are specifically designed concentrated in cities, with more than half to serve these ambitions. By supporting now living in urban areas, according to data low-cost, connected devices that offer long from the World Health Organization (WHO). battery life and can be rolled out at huge This trend is set to continue, as the WHO scale, mobile operators are able to serve the forecasts that the global urban population next generation of cities and offer solutions will grow approximately 1.84 per cent per that make it easier to add connectivity and year between 2015 and 2020, 1.63 per cent control to critical infrastructure. per year between 2020 and 2025, and 1.44 per cent per year between 2025 and 2030. This will put additional stress on city Public Policy Considerations infrastructure and services through increased congestion, pollution and higher costs of Policymakers and regulators looking to living. The infrastructure of today’s cities is foster an environment that encourages typically not designed to deal with continued investment in smart cities should: increases in population densities. As a result, it is very difficult to redesign existing cities in • Adopt an agile institutional framework most parts of the world to cope. and governance mechanisms. A smart city needs an institutional framework This is why national and local governments that ensures co-ordination and support are increasingly interested in developing throughout the lifetime of each project. smart cities that use mobile communications The smart city agency will have to technology and the Internet of Things (IoT) be agile and, ideally, independent to solve many of the challenges cities face from traditional city departments. It today. For example, smart city technology should, however, be accountable to a can be used to tackle traffic congestion, governance body on which the city improve public transport infrastructure, institutions are represented. create safer streets with better lighting, and add intelligence to utilities infrastructure via • Appoint a Chief Information Officer smart meters and smart grid solutions. It also (CIO) or smart city director with opens up new commercial and investment strategic vision. A strong vision opportunities for cities. and strategy is key to the success of smart city projects. A CIO or smart city director should be a project leader with cross-functional skills, capable of defining a long-term strategy. Mobile Policy Handbook 61
• Communicate effectively the • Make city data available to promote objectives and benefits of smart city transparency and stimulate innovation. projects. Establishing a dialogue with While protecting individuals’ privacy, the local community is essential to city managers should look to make data ensure effective smart city services accessible to promote transparency design and functionality. Digital media and stimulate the creation of innovative can help involve citizens in each step services. Some cities already have of the service lifetime and highlight portals that make data available in tangible benefits that a smart city accessible formats. project will deliver. • Explore new models of funding. Smart • Promote technology investment in city projects require significant initial open and scalable systems. A smart investment. Smart city managers should city should avoid relying on proprietary explore public private partnerships or technologies tied to a single provider. alternative finance mechanisms, such as Standards-based solutions are an municipal bonds, development banks essential foundation for the long-term or vendor finance. Internet of Things evolution of a smart city. technologies and smart city applications can generate substantial socio-economic • Comply with privacy and security best benefits for citizens and businesses. practice, rather than defining new Policymakers should make the most service-specific rules. To safeguard of this opportunity, by designing and privacy and security, smart cities need implementing smart city projects with to draw on industry best practice and a long-term vision, that are defined comply with national laws. Local city around citizens’ needs, are managed managers should resist the temptation through agile governance structures, to define their own data privacy and are based on open and scalable systems security standards for services they and promote a culture of openness, launch and adopt in their own city. innovation and transparency.
Resources: GSMA Smart Cities website GSMA IoT Knowledgebase: Smart Cities GSMA Report: Maximising the Smart Cities Opportunity — Recommendations for Asia-Pacific Policymakers GSMA Report: Keys to the Smart City Video: Smart City Tainan case study 62 Mobile Initiatives
Identity
Digital content, services and interactions of the digital identity management have become a part of daily life for billions ecosystem. With mobile operators’ of people, driven by expanding access to unique advantages — such as the broadband and increasingly affordable mobile SIM card, the registration processes, devices. The use of personal data and user contextual network information and authentication are requisite elements of being fraud mitigation processes — they have online. As a result, it is becoming increasingly the ability to provide strong customer important that users have a digital identity authentication and interoperable, to be able to securely authenticate federated identity management solutions themselves online in order to carry out to enable consumers, businesses and tasks such as accessing their accounts and governments to interact in a private and subscriptions or making purchases. secure environment.
The digital economy is based on trust. The GSMA is working with mobile Interactions — whether they be social, network operators and mobile ecosystem commercial, financial or intellectual — players, as well as governments, banks require a proportionate level of trust and retailers, to help roll out mobile in the other party or parties involved. identity solutions. The GSMA is also Today consumers are seeking secure and working with industry standardisation seamless access to digital services, while bodies such as the Open ID Foundation safeguarding their privacy. As a result, to ensure support and interoperability online service providers must reduce for global standards. friction in digital transactions, while still maintaining a seamless, secure user Together, mobile operators are bringing experience. Increasingly, governments are mobile identity solutions to market. These regulating for and demanding electronic solutions support huge scale, via a set identity solutions that leverage global of consistent technologies that benefit standards to ensure interoperability, from low barriers to entry right across privacy, scale and cost effectiveness. the digital identity ecosystem. These solutions also offer a seamless consumer To this end, the mobile industry is experience that is scalable, safe and developing a consistent and standardised secure and puts users in control of their set of services for managing digital data and personal information. identity, putting mobile at the heart Mobile Policy Handbook 63
Advantages of mobile operators in providing a digital identity service
Flexibility to provide multiple authentication Flexibility to innovate factors and the ability to add consumer functionality such as 'add to bill’ or ‘click to call’.
Ubiquitous, personal and portable; sensitive to The mobile device location and capable of being disabled and locked.
Real-time strong authentication; encryption for The SIM card storing certificates and other secure information.
Know your customer Strong registration and fraud-detection (KYC) standards processes in place.
Robust regulatory Established systems to handle personal data safely. requirements
Sophisticated customer care processes Customer service and billing relationships.
Verified subscriber data Ready for mobile identity.
Secure by design, a mobile network can disable The network a device’s SIM card and flag the device as lost or stolen in a global database.
Ensures that the user has a way to report events, such as Business processes lost/stolen devices or an account compromise/takeover. 64 Mobile Initiatives Identity
Mobile Connect
Background • For service providers, Mobile Connect offers the advantages of an improved Mobile Connect is a digital identity solution consumer experience, lower cost of introduced by the GSMA with the support managing credentials, and validation of leading mobile operators. It offers a of important consumer attributes such safe, seamless and convenient consumer as age and address. experience, a consistent user interface and low barriers to entry across the Mobile Connect is based on an open digital identity ecosystem, enabling global standard solution — the OpenID scale of mobile identity services. To date, Connect protocol — and offers broad 57 operators across 30 countries have interoperability across mobile operators implemented Mobile Connect, making it and service providers, further ensuring available to nearly three billion customers. a seamless experience for consumers. Mobile Connect can also provide different Through a single consistent interface, levels of security, ranging from low-level Mobile Connect offers capabilities website access to highly-secure, bank- to provide secure authentication, grade customer authentication. authorisation, digital identity and contextual information to assure the trustworthiness of a digital transaction, the user, and/or Programme Goals the device. By combining the inherent security of mobile devices, the SIM and Mobile Connect is supported by the GSMA operator business processes and networks, Identity programme. Its strategic goal is Mobile Connect enhances user security to enable operators to play a significant and reduces the risk of identity theft. It role in the digital ecosystem through the also enables secure and user-friendly provision of interoperable mobile identity solutions for a wide range of online use services via Mobile Connect. cases, including e-government services, e-commerce and electronic payments. The overall focus for the Identity Mobile Connect opens up a range of programme is on scaling up active users opportunities for both mobile operators and transactions by sharing best practice and consumer-focused service providers and supporting the deployment of external to build a rich suite of offerings for their services that demonstrate the value of customers, while ensuring the user’s private Mobile Connect. and confidential information is kept safe. The GSMA’s public policy activities • For consumers, Mobile Connect enhances assist the GSMA Identity programme via users' privacy and allows them to advocacy and pilot initiatives to support log-in to websites and applications the use of Mobile Connect in regulated quickly without the need to remember sectors, such as finance, e-government usernames and passwords. It combines and e-health. the user’s unique mobile number, and an optional PIN and/or other authentication factors, for added security. Mobile Policy Handbook 65
Public Policy Considerations Governments and regulators should create a digital identity plan that Mobile identity services inevitably acknowledges the central role of mobile in involve multiple devices, platforms and the digital identity ecosystem. The mobile organisations that are subject to differing industry is committed to working with technical, privacy and security standards. governments and other stakeholders to Increasingly governments are using establish trust, security and convenience mobile technology as a key enabler to in the digital economy. deliver identity services in their digital plans, thereby accelerating inclusion and The mobile industry has a proven track reducing the digital divide. However, for record of delivering secure networks mobile identity solutions such as Mobile and has developed enhanced security Connect to achieve wide adoption and the mechanisms to meet the needs of greatest impact on the economy, a number other industry and market sectors. The of public policy issues must be addressed: implementation and evolution of these security mechanisms is a continuous • Identify and assess existing legal, process. The mobile industry is not regulatory and policy challenges and complacent when it comes to security barriers that affect the development issues and the GSMA works closely with of mobile identity services. the standards development community to further enhance the security features • Leverage best practice and advances used to protect mobile networks and in technology to foster the deployment their customers. of wide-scale mobile identity services and transactions. In summary, the mobile industry, via Mobile Connect, offers an identity and • Engage with mobile operators and authentication experience that is aligned the wider digital identity ecosystem with best practice in the private sector, but to facilitate greater collaboration uses mobile technology to leapfrog legacy between the public and private sectors infrastructure and economic barriers to and encourage interoperability deliver secure digital transactions. and innovation.
Resources: Mobile Connect website GSMA Identity website GSMA Report: Mobile Connect — High Security Authentication GSMA Report: Mobile Identity — A Regulatory Overview GSMA Report: Mobile Identity — Unlocking the Potential of the Digital Economy 66 Business Environment
Business Environment
All over the world, mobile network Policymakers should strive to create an operators are providing the essential enabling business environment that fosters connectivity that people and businesses competition and protects consumers expect. In recent years, the industry has without impeding commercial activity or adapted to major changes brought about economic progress. This will require a fresh by the convergence of technologies look and a revision of regulations so they and services, and by the emergence better reflect today’s technologies of internet platforms and services. and markets. Telecommunications markets have broadened and competition has The following pages contain a number of increased as a result. policy topics that affect mobile operators, laying out the key points of debate and In most countries, however, mobile the formally agreed industry positions. operators are still subject to regulations As the mobile industry continues to roll designed for the ‘voice era’. These rules out 4G networks and looks towards 5G, and obligations restrict their ability the need for pro-investment policies and to innovate, invest and compete on modernised regulatory regimes has never equal terms in the digital ecosystem. been greater. Mobile Policy Handbook 67 68 Business Environment
Policies for Progress
Resetting policy and regulation to drive the digital economy
From shopping to entertainment to deployment will deliver the best outcomes managing household finances, digital for society and the economy. If regulatory technologies have fundamentally altered policies and institutions fail to adapt, human behaviour, and consumers markets can become distorted in ways presented with the opportunity have that harm competition, slow innovation, been quick to integrate digital tools and ultimately deprive consumers of the into their daily life. Many governments, benefits of technological progress. recognising the value of mobile to society, have implemented bold policies to cultivate Figure 1 identifies four key areas for the digital economy, while extending policy action: infrastructure investment, connectivity to underserved communities. regulation, promoting their digital economies and demonstrating digital A holistic policy framework that reflects leadership.1 the changing digital landscape while reducing costs and barriers to network
Figure 1 — Policy levers to promote an inclusive digital economy
Encourage Network Adjust Regulation To Investment A Digitalised World
Have broadband policy with clear goals Adopt functionally-based regulation
Support infrastructure build-out Prefer ex-post approaches (over ex-ante prescriptive regulation) Apply investment-friendly spectrum policy Apply regulatory consistency throughout the ecosystem
1 GSMA Report: Embracing the Digital Revolution — Policies for Building the Digital Economy (February 2017) Mobile Policy Handbook 69
Regulation — to focus on the area most The good news is that policymakers applicable to this handbook — needs to be recognise the need to change. In many rethought for the digital and mobile age. jurisdictions, such as the European However, reform has not kept pace with Union, reforms are underway that will the converged and highly dynamic digital protect competition and consumers ecosystem. Emerging technologies are without impeding social and economic driving new business models, blurring the progress. We must not allow tomorrow’s boundaries between once-distinct markets. technologies to be stifled by yesterday’s Regulatory systems developed during the regulations. By updating the regulatory early years of mobile telecoms are still in framework, policymakers can ensure that place in many countries, and such regulation government and industry are aligned to can actually do harm by slowing innovation create a growing and inclusive digital and technological and market society for all. advances today.
Promote Digital Demonstrate Digital Economies Leadership
Support data safety and security Encourage usage of digital IDs
Push digital literacy and life-long learning Support digital financial infrastructure
Encourage digitalisation of companies Introduce and push digital government services 70 Business Environment
Base Station Siting and Safety
Background Debate
Mobile services are a key enabler of socio- What antenna permitting economic development, and achieving processes should governments ubiquitous access to mobile services for implement to avoid undue delay citizens is a major government policy in infrastructure installation? objective in most countries. Mobile operators often have roll-out obligations in their market area to ensure widespread What reference point should be national coverage. used by governments to define safe EMF exposure limits? To deliver continuous mobile coverage in dense urban areas and across rural expanses, mobile network operators must How can a balance be struck build and manage an array of base stations between national objectives for — free-standing masts, rooftop masts mobile connectivity for citizens and and small cells — equipped with antennas the decisions of municipalities? that transmit and receive radio signals, providing voice and data services to their customers in the area. The deployment Can processes be streamlined for of 5G will include the greater use of approval of small cell antennas and small cells to provide high-capacity modifications to existing sites? and low-latency connectivity.
A variety of requirements and conditions, including electromagnetic field (EMF) exposure limits, must be met to secure permits for base-station deployment. Requirements can be defined at the local, regional and national level, even though the local authority (e.g., the municipality) is typically the point of referral. The process in some countries leads to significant delays and cost variances. Mobile Policy Handbook 71
Industry Position Base-station exposure guidelines should be aligned with international standards Governments that enable mobile as recommended by the World Health network investment and remove Organization (WHO) and International barriers to the deployment of network Telecommunication Union (ITU). infrastructure will accelerate the Additional arbitrary restrictions related to provision of mobile services to environmental impact should be avoided. their citizens. Infrastructure costs place a high threshold By defining explicit, nationally consistent on entry into the mobile sector. If policies planning approval processes for mobile are short-sighted, and if taxes and licence base stations, governments can avoid fees are not in keeping with actual market lengthy delays in network deployment. dynamics, then operators may not have We support mechanisms that reduce the means, or the will, to roll out new bureaucratic inefficiencies, including technologies and to reach rural areas. exemptions for small installations, Such policies delay the social and longer- colocations or certain site upgrades, term economic benefits experienced ‘one-stop shop’ licensing procedures by citizens. and tacit approval. Governments can lead by example by improving access to government-owned land and buildings.
Resources: GSMA EMF and Health website GSMA Base Station Planning Permission in Europe website World Health Organization Electromagnetic Fields website FCC Initiative: Forging Our 5G Future ITU-T K.91 Supplement 4 — Electromagnetic Field Considerations in Smart Sustainable Cities GSMA Case Studies: Arbitrary Radio Frequency Exposure Limits — Impact on 4G Network Deployment GSMA Video: Mobile Networks Are Necessary to Deliver a Better Connected World GSMA Report: LTE Technology and Health GSMA Report: Improving Wireless Connectivity Through Small Cell Deployment 72 Business Environment Base Station Siting and Safety
Facts and Figures
Radio Frequency Policies for Selected Countries
RF Limit at Requirement Exemptions Consultation Location Country 900 MHz for RF or simplified during siting restrictions (W/m2) licensing procedures for... process
Compliance Small antennae, Australia 4.5 None Yes declaration changes
Brazil 4.5 Approval – 50ma Local
Small antennae, Canada 2.7b Approval None Yes changes
Small antennae, Chile 4.5/1 Approval >50mc Yes changes
Egypt 4 Approval – 20md No
Voluntary, Small antennae, France 4.5 Approval to minimise Local changes exposuree
Small antennae, Germany 4.5 Approval None Yes changes
None Compliance India f 0.45 – nationally, No declaration local variation
Italy 1/0.1 Approval Small antennae Lower limitsg Yes
Japan 6 Approval Small antennae None Local Mobile Policy Handbook 73
RF Limit at Requirement Exemptions Consultation Location Country 900 MHz for RF or simplified during siting restrictions (W/m2) licensing procedures for... process
Compliance Kenya 4.5 Changes None Yes declaration
Malaysia 4.5 Approval Small antennae None Yes
Compliance Small antennae, Netherlands 4.5 None Yes declaration changes
Compliance Small antennae, New Zealand 4.5 None Local declaration changes
Kingdom of Compliance 4 – None No Saudi Arabia declaration
Compliance South Africa 4.5 – None Local declaration
Small antennae, Spain 4.5 Approval None Local changes
Turkey h 1.5 Approval – None Local
United Compliance Small antennae, 4.5 None Yes Kingdom declaration changes
Small antennae, United States 6 Approval None Local changes
a 50 m around hospitals, schools and homes for old people b Proposal under public consultation c ICNIRP with lower limit in urban areas and in ‘sensitive areas’ d Not within 20 m of schools and playgrounds e Recommendation to minimise exposure in schools, day-cares or healthcare facilities located within 100 m f Adopted ICNIRP in 2008 and changed to 10 per cent of ICNIRP on 1 September 2012 g Lower limit in playgrounds, residential dwellings, schools and areas where people are >4 hours per day h One installation; total exposure must not exceed ICNIRP 1998 74 Business Environment
Competition
Background jurisdiction may be limited to the telecommunications sector, and not extend Mobile phones are the most widely adopted to internet players. As a result, regulators consumer technology in history. A large often fail to take wider market dynamics part of this success can be attributed to into account during the evaluation and how competition in the mobile industry has decision-making process. Equally, a failure helped drive innovation. to understand the complex value chain can affect how competition law is applied. The rise of the digital economy and explosive growth in smartphone adoption The end result is that mobile operators are have brought innovation and disruption currently caught between the two worlds to traditional mobile communications and consumers may not receive the full services. These changes are also impacting benefit of these competitive markets. existing policy frameworks and challenging competition policy (which includes government policy, competition law and Debate economic regulation). How should markets be defined Despite the influence that new market in the digital age? dynamics are having on the mobile sector, the industry is still subject to the contradictions of a legacy regulatory How can standard competition system. This has resulted in services that are tools be applied in the digital age? in competition with each other — such as voice services offered by mobile operators and those offered by internet players — Are traditional significant market being regulated differently. power (SMP) access remedies still appropriate? These differences can be seen in how economic regulation (ex-ante) and competition law (ex-post) are applied to the sector. For example, a regulator’s Mobile Policy Handbook 75
Industry Position Otherwise, services that are in competition with each other may end up being The mobile industry supports competition regulated differently. For example, players as the best way to deliver economic growth, that adopt traditional, better understood investment and innovation for the benefit business models may find themselves of consumers. Excessive regulation stifles subject to enhanced scrutiny. innovation, raises costs, limits investment and harms consumer welfare through Taking into account these new types of the inefficient allocation of resources, competitors when conducting market particularly spectrum. assessment reviews may show that there is a much greater level of competition in To ensure that competition and innovation communication services markets than is thrive, it is essential that policymakers currently recognised by regulatory and create a level playing field across the competition authorities. This type of digital ecosystem. All competitors analysis could demonstrate the potential providing the same services should be for regulatory policy goals to be achieved subject to the same regulatory obligations, through competition law, with the result or absence of such obligations. This should that ex-ante regulation could be lessened, be achieved through a combination of or may no longer be needed. deregulation and the increasing use of horizontal legislation to replace industry-, Indeed, it is a basic principle in economic technology- or service-specific rules. regulation that regulation should not be imposed if competition law is sufficient Regulators and competition authorities to deal with the issues identified. As a must fully recognise the additional result, a degree of deregulation of licensed dynamic competition that exists in the providers is likely to be justified. Also, there digital age. Internet players adopt new is potential for competition law itself to and different business models to offer be improved, to make it more effective. services to customers. Examples include The GSMA has published a report called advertising-supported services that make Resetting Competition Policy Frameworks use of sophisticated internet analytics. for the Digital Ecosystem that includes 15 Regulators and competition authorities detailed recommendations, summarised need to understand these models, and on the following pages. map their competitive impact before imposing regulatory obligations or competition law commitments.
Resources: GSMA Competition Policy website GSMA Handbook: Competition Policy in the Digital Age GSMA Competition Policy in the Digital Age: Case Studies from Asia and Sub-Saharan Africa European Parliament Report: Challenges for Competition Policy in a Digitalised Economy 76 Business Environment Competition
Deeper Dive
Competition in Digital Markets
The global economy is undergoing a major transformation. The rapid take-up of technologies including mobile communications, digital platforms, big data, cloud computing and social media are changing the nature of the products and services and the ways people interact. This transformation disrupts existing business models and industries, while offering substantial potential to enrich lives and raise living standards.
Characteristics of the Digital Economy
Dynamic Multi-sided Network Eects waves of investment, markets and and economies of scale innovation and platforms for digital services technology
Quality Big Data Broader Markets more important to as a key and blurring of consumers than price competitive factor traditional boundaries
Competition in digital markets is different from competition in traditional markets. It has the following specific features:
• Waves of investment and innovation and rapid technological progress.
• Quality and product features that are often more important to customers than price.
• Winner-takes-all outcomes where new entrants offering innovative products or services may be able to leapfrog established firms.
• Economies of scale and strong network effects in the supply of digital services.
• Multi-sided markets and platforms, with distinct groups of users on the different sides benefitting from the presence of the other.
• Large-scale data gathering and analysis, with the potential for anticompetitive effects, especially where it contributes to the quality of service.
These differences challenge the existing policies and call for a reset of the competition framework and a more nuanced approach to competition policy for the digital ecosystem. Mobile Policy Handbook 77
Deeper Dive
Resetting Competition Policy Frameworks: Recommendations
The GSMA advocates that governments adopt the following recommendations to ensure their competition policy frameworks remain relevant for dealing with issues of abuse of market power and market failures in the digital economy.
Market definition The total welfare Ex-ante and and market power standard ex-post regulation
1. Adjust existing tools to 8. Adapt to a total 11. Review the account for specific features welfare standard thresholds for of digital markets to support long-term ex-ante regulation productivity to ensure balance between 2. Focus on actual substitution growth and higher patterns living standards regulation and investment risks
3. Use alternative tools 9. Focus on dynamic to capture the main e ect when 12. Focus ex-ante determinants of consumers’ assessing mergers regulation on switching behaviour and competition in enduring market digital markets power 4. Ensure market definition is su ciently forward-looking, and revise and adapt policies 13. Ensure regulation to fully capture changes in is streamlined and 10. Use better the relevant market consistent with tools to assess competition law e ciencies 5. Focus on alleged anticompetitive conduct and its likely e ects rather than inferring market power Institutional arrangements from market structure
6. Assess the extent to 14. Adopt interim measures to accelerate which big data confers ex-post enforcement and mitigate potential market power harm from anticompetitive conduct
7. Maintain a high threshold for intervention based on collective dominance 15. Reassess institutional arrangements 78 Business Environment
Efficient Mobile Market Structures
Background at engineering market structures and allow market mechanisms to determine the From the outset, mobile markets have been optimal mobile market structure. characterised by a vibrant, competitive market structure that drives investment Some regulators have used spectrum and innovation. caps — limits on the amount of spectrum one entity can hold — to influence market Traditionally, the main policy tool used to structure, however, spectrum caps can support this market structure has been generate unintended consequences including spectrum licensing. From 2000 onwards, inefficient allocations of spectrum and/ policymakers have licensed an increasing or reduced incentives to invest, ultimately number of mobile network operators in an resulting in poor outcomes for consumers, effort to drive competition and improve and as such they must be considered carefully. market performance. This has reduced the number of countries with a single mobile At the same time, competition authorities provider from about half of the countries in tasked with assessing the impact of proposed the world in 2000 to a small number of states mobile mergers must take full account of the representing less than three per cent of the dynamic efficiencies (and accompanying wider world’s population today.1 societal benefits) arising from mobile mergers.
1 Frontier Economics Report: Assessing the Case for Demand for robust, high-speed, high- Single Wholesale Networks in Mobile Communications quality mobile networks continues and this (2014) has driven mobile operators to make large investments in network infrastructure and services to provide consumers with a better Debate quality of service. For example, investment is currently focused on 4G networks, but will Can mergers between mobile soon shift to 5G technology. The high level operators bring significant of competition in the markets for mobile consumer benefits in mobile services has also seen the tariffs charged to markets and wider society? mobile users fall dramatically, so users now get more for their money.
While preserving competition to drive Industry Position innovation and wider societal benefits, policymakers must not create or maintain When assessing mobile mergers, artificial and uneconomic conditions that policymakers should consider the full force prices down to untenable levels, range of static and dynamic benefits deterring operators from investing in that can arise from mergers, including their networks. price effects, innovation, the use of spectrum and investments over both National regulatory authorities must also the short and longer term. recognise the competitive nature of today’s mobile markets, avoid interventions aimed Mobile Policy Handbook 79
Investment and Quality of Service • Mergers can accelerate the transition between technology cycles in the mobile • Competition authorities should consider industry (technology cycles being placing greater emphasis on how responsible for significant reductions in mergers may change an operator’s unit prices), leading to improvements ability to invest. Growing demand for in quality and driving service innovation. data services requiring ever increasing bandwidth means constant investment in • As the market moves from voice to new capacity and technology is needed. data, the global volume growth rate on mobile networks is accelerating. Positive spill-over effects in the This calls for more concentrated market wider economy structures than in the past in order to meet the investment challenge and • Improvements in digital infrastructures drive mobile data unit prices down so support economic growth by positively as to keep the demand for mobile data affecting productivity across the services growing. whole economy. Effects of remedies on investments Greater benefits than network sharing and use of spectrum
• Competition authorities have often • In some cases, if operators are compelled argued that network sharing represents to provide third parties with access to a preferred alternative to mergers. While their networks, this could reduce rather the pro-competitive nature of network than sharpen incentives to invest as a sharing agreements can only be assessed result of the merger, thus significantly on a case-by-case basis, it is worth noting reducing benefits to consumers. In that network sharing agreements are not addition, in the three cases (Ireland, always feasible between the merging Germany and Austria) where a network parties because of an asymmetry of entry option was made available by the assets (such as spectrum holding) European Commission’s Directorate- or a different deployment strategy. General for Competition, nobody took the option, even though this was Unit prices arguably offered on favourable terms.
• There is no robust evidence to suggest • Remedies that involve reallocating network that four-player markets have produced assets or reserving spectrum for other lower prices than three-player markets operators could in some cases deter in Europe and elsewhere over the investment and lead to underutilised past decade. or misused resources.
Resources: GSMA Report: Assessing the Case for In-country Mobile Consolidation GSMA Report: Assessing the Case for In-country Mobile Consolidation in Emerging Markets GSMA Report: Assessing the Impact of Mobile Consolidation on Innovation and Quality — An Evaluation of the Hutchison/Orange Merger in Austria 80 Business Environment Efficient Mobile Market Structures
Deeper Dive
Dynamic Benefits In Mergers
Recently there has been heated debate about the effects of consolidation on the performance of mobile markets, following mergers in key European countries, including Austria, Germany, Ireland and the United Kingdom.
Some argue that consolidation has a detrimental effect on competition and prices. Others argue that if consolidation does not take place, mobile markets will not achieve the necessary scale and so fail to attract sufficient investment.
In the past three years multiple studies have analysed how mergers impact investment. For example, a 2017 GSMA report1 analysed the impact of the Hutchison/Orange merger in Austria in 2012 on coverage and quality of service. We found that within two years Hutchison was able to accelerate population coverage of its 4G network by 20 to 30 percentage points as a result of the merger. Also, 4G download and upload speeds increased by 7 Mbps and 3 Mbps respectively within the same time period. The quality of mobile networks in Austria improved as a whole, with 4G download and upload speeds increasing by more than 13 Mbps and 4 Mbps in 2013 and 2014 respectively, and 3G download speeds increasing by 1.5 Mbps after 2014.
Since 2015, at least seven other studies2 have examined the relationship between market structure, innovation and investment, as measured by operators’ capital expenditure (capex). None found that increasing market concentration drove lower investment per operator or lower total country investment.
A first set of studies has found that investment always increases with market concentration, suggesting that the Hutchison/Orange merger would have had a positive effect on Austrian consumers via more investment.
CERRE (2015) found that, on average, a 10 per cent increase in the Herfindahl- Hirschman Index drives a boost of 24 per cent in merged operators’ capex. In 2016, Jeanjean and Houngbonon found that markets with four players average 14 per cent lower investment per operator versus those with three players and that an increase in the number of operators tends to decrease investment. DG Competition (2017) finds that investment per operator increased as a result of the five-to-four merger in the United Kingdom in 2010, although no statistically significant effect is found when analysing investment per subscriber.
A second set of studies (Houngbonon & Jeanjean, 2016 and HSBC, 2015) suggests that greater market concentration increases capex per operator only when operators’ profit margins are below 37 per cent to 44 per cent — with operators in most four-player markets being below this threshold, including Austrian Mobile Policy Handbook 81
Effects of concentration on investment
Research How does concentration a ect How does concentration a ect Paper investment per operator? total country investment?
WIK No e ect No e ect (2015)
CERRE Investment increases No e ect (2015)
Houngbonon Investment increases & Jeanjean (2016)
Frontier Investment increases (2015) in 4-player markets
Houngbonon Inverted-U: investment & Jeanjean maximised at 38% of margin (2015)
HSBC Inverted-U: investment (2015) maximised at 37% of margin operators before the merger. These studies suggest that the introduction of competition initially has a positive effect on investment, but that as mobile markets become less concentrated, it has a negative effect. Other studies have found that investment does not depend on market structure (WIK, 2015 and Frontier, 2015), suggesting that a mobile merger would have a neutral effect on outcomes such as network quality and coverage.3
One of the key findings is that post-merger, there is evidence that concentration leads to greater investment. While many believe that consolidation is likely to lead to a reduction of investment by operators, the evidence actually points to increased investment. This is because larger operators enjoy economies of scale that help when it comes to extending coverage and undertaking network upgrades. They also have greater financial strength — due to larger profit margins and improved access to complementary assets and commercial partnerships — and expect higher returns from their investments.
1 GSMA Report: Assessing the Impact of Mobile Consolidation on Innovation and Quality 2 CERRE (2015), Frontier (2015), Houngbonon & Jeanjean (2015), Houngbonon & Jeanjean (2016), HSBC (2015), WIK (2015), DG Competition (2017) 3 Though WIK (2015) found that market structures which provide higher profit margins and larger economies of scale (both enhanced by market consolidation) boost total capex per country 82 Business Environment
Environment and Climate Change
Background The European Union (EU), in particular, is pushing for the information and Governments, industry and the wider communication technology (ICT) sector to public broadly accept the need to reduce use detailed carbon accounting to help the greenhouse gas emissions to limit global EU meet GHG reduction targets. warming and climate change. This has been reinforced by the ratification in 2016 of the Paris Agreement on Climate Change. Debate
As mobile use expands, so does the In addition to the mobile industry’s demand for energy, particularly by the continued focus on reducing its network infrastructure. More than 80 per own emissions, should it also work cent of a typical mobile network operator's towards ICT-enabled emission energy requirements are associated with reduction in other sectors? If powering the network. Nevertheless, the so, how can governments help, mobile industry is responsible for a small especially in the light of the Paris fraction of global greenhouse gas (GHG) Climate Agreement? emissions, estimated at less than 0.5 per cent. However, energy is a significant cost for mobile operators, especially in What is the role of government in emerging markets. using mobile technology to reduce emissions generated by its own Mobile network operators and public services, for example by manufacturers have been improving promoting green ICT solutions? the energy efficiency of mobile network infrastructure and turning to renewable energy sources such as solar, wind and How can the mobile industry’s hybrid power systems to power off-grid, impact in contributing to achieving rural base stations. the Sustainable Development Goals be expanded and strengthened? An analysis of 65 mobile networks showed that total network energy consumption increased only four per cent from 2010 to 2011, despite considerable growth in mobile traffic and connections. Total energy per unit traffic declined by approximately 30 per cent, and energy per connection declined by three per cent.
The mobile industry’s forecast is for GHG emissions per connection to drop by 40 per cent between 2009 and 2020. Mobile Policy Handbook 83
Industry Position mobile operators participated in the service, accounting for more than 200 networks and The mobile industry acknowledges its role over half of all global mobile subscribers. in managing greenhouse gas emissions, but also believes governments should As part of adapting to climate change, the encourage mobile Internet of Things (IoT) GSMA Disaster Response programme is in sectors where the potential to reduce leading the mobile industry in improving emissions is greater. network preparedness and restoration, and providing more effective, coordinated support Research has identified the potential for the to humanitarian responders and disaster mobile industry to reduce GHG emissions affected populations. in other sectors — including transportation, buildings and electrical utilities — by at least The GSMA M4D Utilities programme four to five times its own carbon footprint. is working on how the mobile industry The savings principally come from smart grid can help to expand access to affordable, and smart meter applications, as well as smart reliable, sustainable and modern energy transportation and logistics. through support for innovators using mobile technology and infrastructure to provide The mobile industry is taking active steps to new or improved energy services to the increase the energy efficiency of its networks underserved in Africa and Asia. and reduce emissions. With mobile network operators spending around $17 billion on energy use annually, energy efficiency and emission reduction are strategic priorities for them globally.
The GSMA’s Mobile Energy Efficiency Benchmarking service enabled network operators to evaluate the relative energy efficiency of their networks. More than 40
Resources: GSMA Mobile Energy Efficiency website GSMA Report: 2016 Mobile Industry Impact — Sustainable Development Goals GSMA Reports: Mobile’s Green Manifesto 2009 and 2012 update GSMA Mobile for Development Utilities Programme GSMA Disaster Response Programme GeSI Smarter2030 Analysis website GeSI & Carbon Trust Report: Mobile Carbon Impact Broadband Commission Report: Means of Transformation — Harnessing Broadband for the Post 2015 Development Agenda Broadband Commission Report: The Broadband Bridge — Linking ICT with Climate Action for a Low-Carbon Economy 84 Business Environment Environment and Climate Change
Case Study
Innovation Delivers Green Power to Remote Regions of Nepal
Mobile operators are delivering services in ever more rural and remote locations with the result that they’re often pushing at the geographical limits of power grids and then going beyond them. GSMA forecasts there will be close to 390,000 towers not served by any power grid worldwide by 2020, a category growing at 3.4 per cent a year.
In the past, remote locations would have relied on diesel generators, which produce particulates and greenhouse gases both at the site and while fuel is being transported there.
GSMA’s Green Power for Mobile (GPM) programme promoted the use of sustainable energy solutions among operators, helping with market analysis and consulting, technical assistance and business model design. GPM-backed solutions
have helped prevent two million tons of CO2 equivalent being emitted into the atmosphere.
One recent mini-grid project, in Nepal, won a 2017 Telecom Asia award for the region’s most innovative project. GSMA laid the groundwork for the project with a 2015 feasibility study, which called for operators to partner with power companies by offering to be the anchor customers for small solar powered grids; and identified those districts most likely to benefit. There are no tower companies in Nepal, so operators expanding into remote areas are forced to take on the challenge of building and powering new infrastructure.
Not long after, Nepalese solar specialist Gham Power piloted two microgrids in the hilly eastern districts of Okhaldhunga and Khotang — which together generate 92 kW. The anchor customer for both grids was Ncell, one of Nepal’s two biggest operators. The project supplies power to 900 people and extends 2G mobile services to 31 villages. Gham went out of its way to involve local stakeholders, setting up the Shree Halesi company with local investors to manage the grids and hiring local workers.
Nepal is an ideal candidate for the expansion of mobile and power in partnership: 80 per cent of the population live in rural areas, and 3.7 million people from its 28 million population have access to a mobile, but no household electricity. Even those with power suffer power cuts and brownouts. A million people still use kerosene to Mobile Policy Handbook 85
light their homes. Separately, in 2014, the World Bank began a programme to raise solar generation there to 31.7 GWh a year by 2020, from an initial starting point of zero.
The Gham project triggered a 32 per cent increase in ownership of fridges, because households had new stable energy supplies available. It also led to a 44 per cent increase in smartphone ownership and a 32 per cent increase in mobile internet use because of the newly reliable cell signal. The project also supported the deployment of mobile money, with users paying for cable television, power and other services at the operator’s agents’ offices. For example, the prepaid meters from SparkMeter used in the project are linked to the eSewa mobile payments platform, so when a Gham customer pays an eSewa agent payments are immediately transferred to Gham’s bank account. These prepaid metering arrangements and the presence of an anchor customer created enough trust in the project for local banks to make a commercial loan, a first for a rural electrification project in the nation.
In May 2017 in neighbouring India, solar firms Phelan Energy and Aavada Power signed a contract to deliver solar power at 2.62 rupees ($0.04) per kWh, 40 per cent lower than the earlier national record of 4.34 rupees set in 2016. Nepal’s smaller tower-based installations might not achieve the same prices, but the push towards cheaper solar prices is visible worldwide, with Bloomberg New Energy Finance forecasting a 66 per cent drop per kWh from 2017 levels by 2040.
Indian firm OMC could be the path that Gham’s tower power projects could follow in the future. It has deployed micro grids at 1,000 sites across India, around 700 of which have a telecom tower as an anchor customer. The firm has signed agreements to build a further 250 tower-linked grids.
By creating an enabling regulatory environment for mobile money services, releasing low-frequency spectrum that is suitable for providing cost-effective mobile coverage in rural areas and providing investment support for microgrids, other governments can create the right climate for these types of innovative projects to flourish within their own countries. 86 Business Environment
Infrastructure Sharing
Background Debate
Common in many countries, infrastructure Should regulators oversee, approve sharing arrangements allow mobile or manage infrastructure-sharing operators to jointly use masts, buildings arrangements? and even antennae, avoiding unnecessary duplication of infrastructure. Infrastructure sharing has the potential to strengthen What role should governments competition and reduce the carbon play in the development and footprint of mobile networks, while management of core infrastructure? reducing costs for operators.
Infrastructure sharing can provide additional capacity in congested areas where space for sites and towers is limited. Likewise, the practice can facilitate expanded coverage in previously underserved geographic areas.
As with spectrum trading arrangements, mobile infrastructure sharing has traditionally involved voluntary co- operation between licensed operators, based on their commercial needs. Mobile Policy Handbook 87
Industry Position In some cases, site sharing increases competition by giving operators access to Governments should have a key sites necessary to compete on quality regulatory framework that allows of service and coverage. voluntary sharing of infrastructure among mobile operators. Infrastructure sharing agreements should be governed under commercial law and, While it may at times be advantageous as such, subject to assessment under for mobile operators to share general competition law. infrastructure, network deployment remains an important element of Access to government-owned trunk competitive advantage in mobile markets. assets should be available on non- Any sharing should therefore be the result discriminatory commercial terms, of commercial negotiation, not mandated at a reasonable market rate. or subject to additional regulatory constraints or fees.
The regulatory framework of a country should facilitate all types of infrastructure sharing arrangements, which can involve the sharing of various components of mobile networks, including both so-called passive and active sharing.
Resources: GSMA Report: Mobile Infrastructure Sharing GSMA Report: Unlocking Rural Coverage ITU Mobile Infrastructure Sharing website ZDnet: Could Tower Sharing Be the Solution to Rural Networks‘ Problems? 88 Business Environment Infrastructure Sharing
Deeper Dive
Types of Infrastructure Sharing
Infrastructure sharing can be passive or active. Passive sharing includes site sharing, where operators use the same physical components but have different site masts, antennae, cabinets and backhaul. A common example is shared rooftop installations. Practical challenges include availability of space and property rights. A second type of passive sharing is mast sharing, where the antennae of different operators are placed on the same mast or antenna frame, but the radio transmission equipment remains separate.
In active sharing, operators may share the radio access network (RAN) or the core network. The RAN-sharing case may create operational and architectural challenges. For additional core sharing, operators also share the core functionality, demanding more effort and alignment by the operators, particularly concerning compatibility between the operators’ technology platforms.
Infrastructure sharing optimises the utilisation of assets, reduces costs and avoids duplication of infrastructure (in line with town and country planning objectives).
Mast Sharing Site Sharing
Shared Compound Shared Compound
Antenna AAntenna B A Mast A Mast B A k k
or Antenna A Antenna B or tw tw Ne Ne
Core Core
Network A Network B Network A Network B BTS/Node B BTS/Node B BTS/Node B BTS/Node B B B k k or or tw tw Ne Ne Network A Network B Network A Network B BSC/RNC BSC/RNC BSC/RNC BSC/RNC Core Core Mobile Policy Handbook 89
It may also:
• Reduce site acquisition time.
• Accelerate the roll out of coverage into underserved geographical areas.
• Strengthen competition.
• Reduce the number of antenna sites.
• Reduce the energy and carbon footprint of mobile networks.
• Reduce the environmental impact of mobile infrastructure on the landscape.
• Reduce costs for operators.
Full RAN Sharing Shared Core Network Elements and Platforms
Shared Compound Network A Antenna A/B A k Network A HLR Network A or MSC SG SNGG SN tw Ne
Core Access Shared VAS Network A Platform Core Transmission Shared Access Ring BTS/Node B Network B Shared
B OMC k or tw Ne Shared Network B Network B BSC/RNC MSC SG SNGG SN Core Network B HLR
Source: GSMA 90 Business Environment
Intellectual Property Rights — Copyright
Background For example, there is heated discussion related to the perceived ‘value gap’ Copyright is the basis for creative between rights holders and online professionals such as artists, musicians, platforms as well as the issue of writers, filmmakers and composers to intermediary liabilities. One question that earn income, get recognition and receive has arisen is whether there should be protection for their works. The original a neighbouring right for press publishers intention of copyright was to encourage so that they get fairly remunerated the development of new creative work. when their news snippets are used. If This is still the case today, but the this was put in place, news aggregators emergence of digital technologies has and possibly social networks and search radically changed the way creative content engines would have to conclude licensing is produced, distributed and accessed by agreements with press publishers to be consumers. Since the launch of its Digital able to display news snippets. Similarly, Single Market strategy in March 2015, the issue of whether online service the European Commission has published providers should have to monitor and several proposals to improve cross-border address (including via the use of content access to content online, create wider recognition technologies) the unlawful opportunities to use copyrighted materials use of copyrighted content is being in education, research and cultural hotly debated. heritage and to create a better functioning copyright marketplace. Also, issues related to cross-border access to online content are increasingly A proposal on temporary cross-border coming to the fore. For example, while portability of content has been adopted traditional cable networks are covered by and will come into force on 20 March the existing cable retransmission regime 2018. Online service providers will have of the Satellite and Cable Directive, this to allow consumers to temporarily access is not the case for new technologies and content they have legally subscribed to channels such as mobile and internet. while travelling in another EU member Now that consumers increasingly wish state outside their own country of to access content online, via their mobile residence. No additional copyright licence and also across borders, this has will be required. become problematic.
In the meantime, the European Commission’s proposals on the modernisation of copyright and on the extension of the Satellite and Cable Directive’s broadcasting rules to other infrastructures such as mobile networks and the open internet (‘technology neutral retransmission’) are still being fiercely debated. Mobile Policy Handbook 91
They guarantee the freedom and Debate confidentiality of communications for users and offer legal certainty to internet Should online service providers have service providers. to monitor and address the unlawful use of copyrighted content? Regarding access to content, the GSMA is in favour of extending the retransmission right in a technologically-neutral manner, How can access to content in the including IP-based retransmission on digital age be guaranteed and the internet. However, the GSMA does how can the clearance of rights be not support the idea of introducing facilitated in a way that balances a country-of-origin approach for the interests of all stakeholders broadcasters’ rights clearance in respect concerned? of simulcasting, catch-up and similar services as it may negatively impact financing models, contractual freedom of rights holders and services providers, and Industry Position ultimately consumer choice.
The mobile industry recognises the Any new legislation should avoid importance of proper compensation double-paying for licences. for rights holders and supports the creation of fair, incentivising business models that respect the right balance. However, the GSMA cautions against the effect of putting the ‘ISP liability regime’ of the e-Commerce Directive into question by having to take measures to prevent the availability of copyright infringing content.
The exemptions from liability for intermediaries contained in the e-Commerce Directive are core principles for the functioning of the information society and for the provision of innovative services in the Digital Single Market.
Resources: Regulation (EU) 2017/1128 of 14 June 2017 on Cross-border Portability of Online Content Services in the Internal Market European Commission Modernisation of EU Copyright Rules website 92 Business Environment
Intellectual Property Rights — Patents
Background products to market by seeking large portfolio cross-licences). Increasingly, The mobile ecosystem has been a major patents have become tradable and driver of economic progress and welfare income-generating assets (via the globally. In the period to 2020, mobile’s ‘Secondary Patent Market’), capable of contribution will grow at a faster rate being asserted against start-ups, small than the rest of the global economy, and large companies, and, in some specific contributing 4.2 per cent to the world’s cases, to stifle competition. GDP by the end of the decade.1 Without 1 GSMA Report: Assessing the Impact of Mobile the immense efforts of the mobile Consolidation on Innovation and Quality — operator community, many of the adopted An Evaluation of the Hutchison/Orange Merger technologies in 2G, 3G and 4G would in Austria not have been successfully developed, implemented or adopted on a mass scale. Debate At no point in history has telecommunications technology had a Now that patents have become greater impact on peoples’ lives than a tradable and income-generating now. The public has become heavily asset, can they still be looked reliant on mobile telecommunications upon as a tool to support and technology and the mobile operators’ promote innovation? abilities to deliver such services. Mobile telecommunications services provided by the operator community have become Are Patent Assertion Entities fundamental to everyday existence. (PAEs) having a negative effect on competition? Meanwhile, in the past few years, we have seen radical changes in the licensing of telecommunications technology (i.e., the prime use of patent portfolios in telecommunications). Initially patents were used to preserve a company’s ‘Freedom to Operate’ (i.e., its ability to bring its Mobile Policy Handbook 93
Industry Position In light of the increasingly litigious environment resulting from the business The Secondary Patent Market has model used by PAEs and the adversarial greatly encouraged the rise in non- nature of the associated licensing innovating, non-practising, patent negotiations, there is a need for greater monetisation and licensing or clarity in relation to the licensing in, enforcement entities, known as PAEs. and adjudication of, such PAE cases for Usually, PAEs are engaged in purchasing licensors and implementers alike. This patents so they can focus on aggressive should take account of: litigation against manufacturers and operators already using the technology, • The public’s heavy reliance on mobile rather than developing and licensing telecommunications technology and technology. the mobile operators’ abilities to deliver such services. Unfortunately, the complexity of mobile operators’ networks, the scale of • That fact that disruption to these investments needed to build them, the services, even in part, will have level of revenues generated by them, a severely negative effect on and the reliance of these networks on people's lives. technology based on standards, has made mobile network operators a prime • The importance of maintaining the target for so called patent trolls in Europe, integrity of mobile telecommunication America and Asia. services and ensuring continuous investment and adoption The multiple costs associated with both of new technologies in the ligation from PAEs, and their use of the telecommunications market. threat of injunction as leverage in demands for disproportionately high licensing fees, • The need to incorporate appropriate are having a seriously negative effect rules and regulations into the relevant not just on the affected mobile network frameworks governing the seeking operators’ business, but also mobile and granting of injunctions in predatory telecommunications innovation and patent assertion cases in order to standardisation, as well as the future allow the judiciary to consider the of mobile operators' networks in general. above points.
Resources: European Commission Report: Patent Assertion Entities in Europe 94 Business Environment
International Mobile Roaming
Background charge on top of the price they pay at home. Operators can implement ‘fair use' International mobile roaming (IMR) allows policies to prevent the abuse of regulated people to continue to use their mobile roaming services. device to make and receive voice calls, send text messages and email, and use the Bill shock and certain high roaming internet while abroad. prices have also attracted the attention of international institutions such as the Telecoms regulators and policymakers Organisation for Economic Co-operation have raised concerns about the level and Development (OECD) and the World of IMR prices and the lack of price Trade Organisation (WTO). Additionally, transparency, which can cause consumer regional and bilateral regulatory measures bill shock. are either in place or being considered in many jurisdictions. In December 2012, during the revision by the International Telecommunication Union (ITU) of the International Debate Telecommunications Regulations (ITRs), several governments requested that Some policymakers believe IMR the revised treaty include provisions on prices are too high. Is regulatory transparency and price regulation for intervention the right way to mobile roaming. However, on balance, ITU address this? member states concluded that roaming prices should be determined through competition rather than regulation, and What measures can be taken text was included in the treaty to reflect to address concerns about this approach. price transparency, bill shock and price levels? In the European Union, roaming regulation has been in place since 2007. From mid- June 2017, ’Roam-Like-At-Home’ has What other factors affecting been introduced in the EU. When offering roaming prices do policymakers roaming, mobile operators in a given EU need to consider? country must include ’Roam-Like-At- Home’ by default in contracts. Travellers can call, text and surf on their mobile devices when abroad in the EU for no extra Mobile Policy Handbook 95
Industry Position • Price regulation. Governments and regulators should only consider IMR is a valuable service delivered price regulation as a last resort, after in a competitive marketplace. Price transparency measures and innovative regulation is not appropriate, as the IMR pricing have failed to address market is delivering many new solutions. consumer complaints, and after structural barriers have been removed. The mobile industry advocates a three- The costs and benefits of regulation phased strategy to address concerns must be carefully assessed, taking about mobile roaming prices: into account unique economic factors such as national variances in income, • Transparency. In June 2012, the GSMA GDP, inflation, exchange rates, mobile launched the Mobile Data Roaming penetration rates and the percentage Transparency Scheme, a voluntary of the population that travels commitment by mobile operators to internationally, as well as incidence give consumers greater visibility of of international travel to neighbouring roaming charges and usage of mobile countries, all of which have an impact data services when abroad. on IMR prices.
• Removal of structural barriers. The mobile industry is a highly competitive Governments and regulators should and maturing industry, and one of the eliminate structural barriers that most dynamic sectors globally. In the past increase costs and cause price decade, competition between mobile differences between countries. These operators has yielded rapid innovation, include double taxation, international lower prices and a wide choice of gateway monopolies and fraud, all packages and services for consumers. of which should be removed before Imposing roaming regulation on mobile any form of IMR price regulation operators not only reduces revenue and is considered. increases costs, but it deters investment.
Resources: GSMA Roaming website GSMA Information Paper: Overview of International Mobile Roaming GSMA News: GSMA Launches Data Roaming Transparency Initiative 96 Business Environment
Mobile Termination Rates
Background Debate
Mobile termination rates (MTRs) refer to How should the appropriate, the fees charged by operators to connect regulated rate for call termination a phone call that originates from a be calculated? different network.
The setting of regulated MTRs continues Is the drive towards ever-lower to be the focus of regulatory attention in mobile termination rates, especially both developed and developing countries, in Europe, a productive and and many different approaches have appropriate activity for regulators? been developed for the calculation of appropriate termination charges. Once termination rates have fallen Regulators have generally concluded below a certain threshold, is that the provision of call termination continued regulation productive? services on an individual mobile network is, in effect, a monopoly. Therefore, with each operator enjoying significant What is the long-term role market power, regulators have developed of regulated termination rates various regulations, most notably the in an all-IP environment? requirement to set cost-oriented prices for call termination.
Intervening in a competitive market is far more complex and challenging than the traditional utility regulation of the kind normally applied to monopolies in gas, electricity and fixed-line telecommunications. With mobile, every action is more finely calibrated. The benefits of intervention are more ambiguous and the error costs larger.
— Stewart White, former Group Public Policy Director, Vodafone Mobile Policy Handbook 97
Industry Position MTRs are wholesale rates, regulated in many countries, where a schedule of Regulated mobile termination rates annual rate changes has been established should accurately reflect the costs and factored into mobile network of providing termination services. operators’ business models. Unsignaled, unanticipated alterations to these Beyond a certain point, evidence suggests rates have a negative impact on that a focus on continued reductions in investor confidence. MTRs is not beneficial. The GSMA believes the setting of MTRs The setting of regulated MTRs is complex is best done at a national level, where and requires a detailed cost analysis local market differences can be properly as well as a careful consideration of its reflected in the cost analysis, therefore impact on consumer prices and, more extraterritorial intervention is broadly, on competition. not appropriate.
Resources: Vodafone Report: The Impact of Recent Cuts in Mobile Termination Rates Across Europe GSMA Report: The Setting of Mobile Termination Rates GSMA Report: Comparison of Fixed and Mobile Cost Structure Vodafone Report: Regulating Mobile Call Termination 98 Business Environment
Net Neutrality
Background Mobile operators face unique operational and technical challenges in providing fast, While there is no single definition of net reliable internet access to their customers, neutrality, it is often used to refer to issues due to the shared use of network resources concerning the optimisation of traffic over and the limited availability of spectrum. networks. Net neutrality advocates assert that it is necessary to legislate that all Unlike fixed broadband networks, where traffic carried over a network be treated a known number of subscribers share in the same way. Others contend that capacity in a given area, the capacity flexibility to offer different service levels demand at any given cell site is much for different applications enhances the more variable, as the number and mix user experience. of subscribers constantly changes, often unpredictably. The available bandwidth Where this flexibility exists, mobile can also fluctuate due to variations in radio network operators are able to offer a frequency signal strength and quality, bespoke, managed service to providers which can be affected by weather, traffic, of new connected products, such as speed and the presence of interfering autonomous cars, which could not devices such as wireless microphones. exist without constant, high-integrity connectivity. Operators can also enter Not all traffic makes equal demands of into commercial arrangements with a network; for example, voice traffic is content and application providers that time-sensitive while video streaming want to attract users by offering free typically requires large amounts of access — for example, by zero-rating their bandwidth. Networks need to be content — so mobile subscribers are not able to apply network management ‘charged’ for the data usage. These kinds techniques to ensure each traffic type is of arrangements enable product and accommodated. The principle of the open service innovation, deliver added value to internet and allowing network operators consumers and generate new revenue for to offer a variety of service options to network operators, which face constant consumers are not mutually exclusive. pressure to enhance, extend and upgrade As the net neutrality debate has evolved, their networks. policymakers have come to accept that network management plays an important role in service quality.
Just as content providers offer differentiated services such as standard and premium content for different prices, mobile network operators will offer different bandwidth products to meet different consumer needs. Customers are benefitting from these tailored solutions; only those who want to use premium services will have to pay the associated costs.
— GSMA Mobile Policy Handbook 99
Debate Regulation that affects network operators’ handling of mobile traffic is not required. Should networks be able to manage Any regulation that limits their flexibility to traffic and prioritise one traffic type manage the end-to-end quality of service or application over another? and provide consumers with a satisfactory experience is inherently counterproductive.
For mobile networks, which have In considering the issue, regulators should finite capacity, should fixed-line recognise the differences between fixed rules apply? and mobile networks, including technology differences and the impact of radio frequency characteristics. In some cases, net neutrality rules are being considered in anticipation of a Consumers should have the ability to problem that has yet to materialise. Is choose between competing service this an appropriate approach providers on the basis of being able to to regulation? compare performance differences in a transparent way.
Mobile operators compete along many Industry Position dimensions, such as pricing of service packages and devices, different calling To meet the varying needs of consumers, and data plans, innovative applications mobile network operators need the ability and features, and network quality and to actively manage network traffic. coverage. The high degree of competition in the mobile market provides ample It is important to maintain an open incentives to ensure customers enjoy the internet. To ensure it remains open and benefits of an open internet. functional, mobile operators need the flexibility to differentiate between different types of traffic.
Resources: GSMA Net Neutrality website FCC Filing: GSMA Comments on the Open Internet Proceeding, 15 July 2014 100 Business Environment Net Neutrality
Deeper Dive
Traffic Management Is an Efficient and Necessary Tool
Traffic growth, the deployment of next-generation technologies and the emergence of new types of services are presenting mobile network operators with a huge challenge: how to manage different types of traffic over a shared network pipe, while providing subscribers with a satisfactory quality of service that takes into account different consumer needs and service attributes.
With finite capacity, mobile networks experience congestion. Mobile operators use traffic management techniques to efficiently manage network resources, including spectrum, and to support multiple users and services on their networks. Congestion management is essential to prevent the network from failing during traffic peaks, and to ensure access to essential services.
Traffic management techniques are applied at different layers of the network, including admission control, packet scheduling and load management. In addition, operators need to cater to different consumer preferences, so customers can access the services they demand. Traffic management is therefore an efficient and necessary tool for operators to manage the flow of traffic over their network and provide fair outcomes for all consumers.
Mobile operators need the flexibility to experiment and establish new business models that align investment incentives with technological and market developments, creating additional value for their customers. As the operational and business models of networks evolve, a whole host of innovative services and business opportunities will emerge.
The current competitive market is delivering end-user choice, innovation and value for money for consumers and no further regulatory intervention related to provision of IP-based services is necessary. The commercial, operational and technological environment in which these services are offered is continuing to develop, and any intervention is likely to impact the development of these services in a competitive context. Mobile Policy Handbook 101
Traffic management techniques are necessary and appropriate in a variety of operational and commercial circumstances:
Network integrity
Protecting the network and customers from external threats, such as malware and denial-of-service attacks.
Child protection
Applying content filters that limit access to age-inappropriate content.
Subscription-triggered services
Taking the appropriate action when a customer exceeds the contractual data-usage allowance, or offering charging models that allow customers to choose the service or application they want.
Emergency calls
Routing emergency call services.
Delivery requirements
Prioritising real-time services, such as voice calls, as well as taking into account the time sensitivities of services such as remote alarm monitoring. 102 Business Environment
Over-the-Top Voice and Messaging Communication Apps
Background and fiscal obligations (e.g., e-privacy, legal interception, emergency calls, universal The combination of mobile broadband service contribution, national specific access, smartphones and internet taxes, consumer rights and quality of technology has led to the emergence of service) that have been put in place to a new breed of consumer mobile voice protect consumers and ensure that all and messaging communication services providers make a fair and proportionate provided by internet-based companies, contribution to local economic growth often referred to as over-the-top service through investment, employment and tax. providers (OTTs). These services are providing consumers with additional As OTT communications services choices in how they communicate with become more and more popular, each other. According to research by they increasingly render a number of Ovum, an independent consultancy, global regulations designed to address alleged instant messaging volumes from OTT network bottlenecks, such as termination providers already exceed SMS volumes and roaming, unjustified. and the volume of global OTT messaging 1 Ovum, OTT Messaging will be ten times larger than the volume of Forecast: 2016–20 SMS messaging in 2020.1
OTT communications services are typically Debate offered in competition with, and as direct substitutes to, the circuit-switched Should OTT services be subject voice and SMS services provided by to the same regulatory obligations mobile operators, but they are typically that apply to calls and messages not properly considered in the market carried over the PSTN? analysis carried out by regulators. Due to the global nature of the internet, and because they have not been considered as Does the fact that OTT players equivalent to traditional communication currently sit outside the scope of services, many OTT communications sector-specific regulations provide services sit outside the scope of sector- them with a competitive advantage specific national or regional regulatory over traditional telecoms providers?
Everybody knows today that with telecom service providers and OTT [players], there are unbalanced relations and we have to find a better balance.
— Andrus Ansip, Vice-President for the Digital Single Market, European Commission, 2015 Mobile Policy Handbook 103
Over-the-Top Voice and Messaging Communication Apps Industry Position While the same rules should apply to the same services, these are not The mobile industry supports and necessarily the rules that apply today to promotes fair competition as the telecommunications services. There is a best way to stimulate innovation and need for a forward-looking regulatory investment for the benefit of consumers framework for communications services and to spur economic growth, and that is fit for purpose for a digital world. believes both objectives will be best This framework must be driven by clear served by the principle of ‘Same Rules policy requirements around consumer for the Same Service’. The growth in protection, innovation, investment competition between different types and competition. of service provider calls for a move towards shared rules that are lighter By adopting a policy framework built touch than those applicable in less around ‘Same Rules for the Same competitive environments. Service’, and properly recognising the competitive constraint imposed on The principle of ’Same Rules for the Same mobile network operators by the fact Service’ maintains that where regulation is OTTs currently play to different rules, considered to be necessary, all equivalent national governments and regulators will consumer voice and messaging services be enabling an environment of fair and should be subject to the same regulatory sustainable competition that promotes the and fiscal obligations, regardless of the best interests of consumers and fosters underlying technology, geographic origin economic growth. or whether they are delivered by a mobile operator or OTT service provider. This will help to improve consumer confidence and trust in using internet-based services by ensuring a consistent approach to issues such as transparency, quality of service and data privacy. Consistent application of regulatory obligations will also support legitimate law enforcement and national security activities.
Resources: Ovum, OTT Messaging Forecast: 2016–20 104 Business Environment
Passive Infrastructure Providers
Background Debate
Many mobile network operators share What benefits do independent infrastructure on commercial terms tower companies offer to mobile to reduce costs, avoid unnecessary operators? duplication and to expand coverage cost-effectively in rural areas. Should passive infrastructure The most commonly shared infrastructure sharing ever be mandated by is passive infrastructure, which may the regulatory authority? include: land, rights of way, ducts, trenches, towers, masts, dark fibre and power supplies, all of which support the What steps should regulators take active network components required for to provide clarity to tower the transmission and reception of signals. companies and mobile operators?
Infrastructure sharing is arranged through bilateral agreements between mobile network operators to share the specific towers, strategic sharing alliances, the formation of joint infrastructure companies between mobile operators or via independent companies providing towers and other passive infrastructure.
Increasingly, independent tower companies provide tower-sharing facilities to network operators. Several countries have established regulatory frameworks based on registration that encourage passive infrastructure sharing arrangements and provide regulatory clarity for network operators and independent passive infrastructure providers. While regulatory authorities in almost all countries are supportive of passive infrastructure sharing arrangements, a lack of regulatory clarity exists in some countries, particularly in relation to independent tower companies. Mobile Policy Handbook 105
Industry Position Registered providers should be permitted to construct and acquire passive Licensed network operators should be infrastructure that is open to sharing with able to share passive infrastructure with network operators, provide (e.g., sell or other licensed network operators and lease) passive infrastructure elements to outsource passive infrastructure supply licensed operators, and supply ancillary to passive infrastructure providers services and facilities essential to the without seeking regulatory approval. provision of passive infrastructure.
Sharing passive infrastructure on Mobile network operators should be commercial terms enables operators to permitted to make use of infrastructure reduce capital and operating expenditure from passive infrastructure companies without affecting investment incentives or through commercial agreements without their ability to differentiate and innovate. explicit regulatory approval. Infrastructure sharing agreements should be governed Infrastructure sharing provides a basis under commercial law and, as such, be for industry to expand coverage cost- subject to assessment under general effectively and rapidly, while retaining competition law. competitive incentives. Regulation of passive infrastructure sharing should Public authorities should provide licensed be permissive, but should not mandate operators and passive infrastructure such arrangements. providers with access to public property and rights of way on reasonable terms In markets with licensing frameworks and conditions. Governments, seeking that do not already provide for the to support national infrastructure operation of independent tower development, should ensure swift approval companies, regulatory authorities (or the for building passive infrastructure, and responsible government department) environmental restrictions should reflect should either permit independent passive globally accepted standards. infrastructure companies to operate without sector-specific authorisation Taxation and fees imposed on independent or establish a registration scheme for tower or passive infrastructure companies such companies. The scheme should be should not act as a barrier to the evolution a simple authorisation that provides for of this industry, which makes possible oversight of planning-related matters, more efficient, lower-cost forms of while making a clear distinction with infrastructure supply. the licensing framework applicable to electronic communications network and service providers.
Resources: AT Kearney Report: The Rise of the Tower Business Reuters News: Bharti Airtel to Sell 3,100 Telecom Towers 106 Business Environment
Quality of Service
Background Debate
The quality of a mobile data service Is it necessary for regulators to set is characterised by a small number of specific targets for network quality important parameters, notably speed, of service in competitive markets? packet loss, delay and jitter. It is affected by factors such as mobile signal strength, network load, and user device and Is it possible to guarantee minimum application design. quality levels in mobile networks, which vary over time according to Mobile network operators must manage the volume of traffic being carried changing traffic patterns and congestion, and the specific, local signal- and these normal fluctuations result in propagation conditions? customers experiencing a varying quality of service. Which regulatory approach will Connection throughput is seen by some protect the interests of mobile regulatory authorities as an important service customers while not attribute of service quality. However, it distorting the market? is also the most difficult to define and communicate to mobile service users. Mobile throughput can vary dramatically over time, and throughput is not the only product attribute that influences consumer choice. Mobile Policy Handbook 107
Industry Position The commercial, operational and technological environment in which Competitive markets with minimal mobile services are offered is continuing to regulatory intervention are best able develop. Mobile operators must have the to deliver the quality of mobile service freedom to manage and prioritise traffic customers expect. Regulation that on their networks. Regulation which rigidly sets a minimum quality of service is defines a particular service quality level disproportionate and unnecessary. is unnecessary and is likely to impact the development of these services. The quality of service experienced by mobile consumers is affected by many Competitive markets with differentiated factors, some of which are beyond the commercial offers and information that control of operators, such as the device allows consumers to make an informed type, application and propagation choice deliver the best outcomes. If environment. Defining specific quality regulatory authorities are concerned targets is neither proportionate about quality of service, they should nor practical. engage in dialogue with the industry to find solutions that strike the right Mobile networks are technically different balance on transparency of quality from fixed networks; they make use of of service. shared resources to a greater extent and are more traffic-sensitive.
Mobile operators need to deal with continually changing traffic patterns and congestion, within the limits imposed by finite network capacity, where one user’s traffic can have a significant effect on overall network performance.
Resources: GSMA Reference Document: Definition of Quality of Service Parameters and Their Computation GSMA Latin America: Quality of Service website 108 Business Environment Quality of Service
Deeper Dive
A Network of Interconnections
Offering a dependable quality of service is a priority for mobile network operators, as it allows them to differentiate the internet access service they provide from that of their competitors and meet customer expectations. However, mobile operators have little control over many of the parameters that can affect their subscribers’ experience.
Factors beyond an operator's control include:
The type of device and application being used.
The changing usage patterns in a mobile network cell at different times of day.
The movements and activities of mobile users, such as travel, events or accidents.
Obstacles and distance between the terminal and antennae.
The weather, especially rain.
In addition, the quality of internet access that users experience depends on the quality provided by each of the data paths followed. The internet service provider (ISP) only has control of the quality of service in its section of the network. Mobile Policy Handbook 109
Factors affecting mobile quality of service
Mobile Environmental factors device
Physical obstacles
User location and movement
Weather
y Tra c spikes journe Data Mobile device type
Mobile network
Internet
Content source
For these reasons, regulation concerning the quality of mobile internet service can be counterproductive. Regulation that does not consider the nature of mobile networks and the competitive workings of these services can be an obstacle to their development, widening the digital divide and promoting an inefficient use of the capital invested in networks. 110 Business Environment
Single Wholesale Networks
Background from 429 million in 2000 to over 1.2 billion today, while in developing countries the Policymakers in some countries are number of subscribers has increased from considering establishing single wholesale 177 million to almost four billion.2 networks (SWNs) or wholesale open- access networks (WOAN) instead of Supporters of SWNs argue that they relying on competing mobile networks to can address some issues better than the deliver mobile broadband services in their traditional model of network competition country. Most of these proposals specify in some markets. These concerns generally at least partial network ownership and include inadequate or slow coverage financing by the government. in rural areas, inefficient use of radio spectrum and concerns that the private While there are variations in the SWN sector may lack incentives to maximise proposals discussed by different coverage or investment. governments, SWNs can be generally 1 GSMA & Frontier Economics Report: Assessing defined as government-initiated network the Case for Single Wholesale Networks in Mobile monopolies that compel mobile operators Communications and others to rely on wholesale services 2 Source: GSMAi provided by the SWN as they serve and compete for retail customers. Debate SWNs would represent a radical departure from the approach to mobile service Are SWNs likely to increase provision that has been favoured by the quality and reach of next- policymakers for the past 30 years — generation mobile broadband, namely, to license a limited number of compared with the existing competing mobile network operators, approach of network competition? which are usually under private ownership.
In 2000, there were almost as many What alternative policies countries served by a single mobile should be considered before network as by competing networks. Today, adopting a monopoly wholesale however, only 28 markets, representing network model? less than two per cent of the world’s population, are served by a single mobile network.1 Since 2000, network competition has produced unprecedented growth and innovation in mobile services, particularly in developing countries. For example, the number of unique mobile subscribers has almost tripled in developed countries Mobile Policy Handbook 111
Industry Position depends on national policies and market structures. In practice, government- SWNs and WOANs are likely to lead to mandated wholesale networks have worse outcomes for consumers than been much slower to expand coverage, network competition. perform upgrades and to embrace new technologies. Some supporters claim they will deliver greater network coverage than network Rather than use public funds to create competition can. However, this claim often a separate network to deliver coverage reflects the existence of public subsidies in areas into which commercial networks and other forms of favourable support have not yet found it viable to cover, for the SWN, which are not available to an alternative approach is to consider competing network operators, making how public funds might be used to it an unfair comparison. Commercial subsidise a commercial network provider networks can deliver coverage even to expand coverage to reach these areas. in areas where duplicate networks are uneconomic. This can be achieved in many ways, including through the implementation of voluntary network sharing among operators.
The benefits of network competition go beyond coverage. Innovation is a key driver of consumer value at the national level, and this occurs in networks as well as services and devices. While mobile technologies are typically developed at the international level, the speed at which they become available to consumers
Resources: GSMA & Frontier Economics Report: Assessing the Case for Single Wholesale Networks in Mobile Communications GSMA Report: The Risks Associated with Wholesale Open Access Networks 112 Business Environment Single Wholesale Networks
Deeper Dive
Risks Associated with Single Wholesale Networks
Governments often have ambitious goals when they mandate the creation of a single wholesale network (SWN) or a wholesale open-access network (WOAN) instead of relying upon the market, especially competing mobile networks, to deliver mobile broadband services in their country. In seeking support for their regulatory decisions, they promise citizens better coverage, more competition, and as a result, more affordable prices.
However, research shows that of the five countries seriously considering this option, only Rwanda has actually rolled out a network (as of 2017). It also appears that Rwanda’s network hasn’t lived up to expectations. The lessons from these countries highlight the real challenges of SWNs and WOANs and show that these difficulties must be taken very seriously by other countries contemplating this route.
Building good mobile networks is hard and maintaining and upgrading them is also very difficult. However, these are all things the mobile industry has proven to be very good at — assuming the right conditions are in place. Governments would better serve their citizens by enabling and supporting commercial network deployments rather than focusing their energies on building and promoting networks.
The challenges many governments have faced in recent years bear this out. For example, the public-private partnership project in Rwanda set ambitious goals but has faced a number of difficulties in meeting them. The current progress suggests the original coverage target of 95 per cent won’t be achieved by the end of 2017. The take-up also appears to be limited so far, an important contributor being the cost of the services.
In the other four countries, efforts to roll out networks have either been severely delayed or abandoned altogether. For example, Mexico’s roll-out was intended to begin in 2014 and be operational by 2018, but delays and court challenges have pushed that timeline back by several years. In May 2015, the government announced the investment target had been reduced from $10 billion to $7 billion. It also estimated that the number of cell towers built for the network will be closer to 12,000 instead of 20,000. As the last bidder standing, in 2016 the Altán consortium was granted access to 90 MHz of very valuable contiguous spectrum in the 700 MHz band to build an LTE-based wholesale network. Mobile Policy Handbook 113
The push in Kenya stalled due to a complicated negotiation process with several stakeholders, and the Russian initiative failed as carriers were unable to reach a satisfactory agreement. As of late-2017, South Africa is still mulling its next step. A white paper published in October 2016 proposed the creation of a WOAN in South Africa, including significant changes to access policies and spectrum licensing.
Improving rural coverage is something the mobile industry works on tirelessly. Instead of going down the wholesale monopoly route, the GSMA recommends governments conduct a comprehensive consultation with all stakeholders to address coverage gaps.
While it is often a fiercely competitive industry, mobile operators are not shying away from co-operation as a means of expanding coverage by signing infrastructure sharing agreements on a voluntary basis. They are also exploring new business models with third parties to share the cost and investment risks associated with building and operating networks in rural and remote locations. In the end, the connectivity gap can only be overcome through close collaboration between the telecoms industry and governments. The basic building blocks that can help make this happen are:
• Cost-effective access to low-frequency spectrum.
• Support for flexible use in spectrum (e.g., refarming and technology neutral licenses).
• Support for all forms of voluntary infrastructure sharing.
• Elimination of sector-specific taxation on operators, vendors and consumers.
• Non-discriminatory access to public infrastructure.
• Support for streamlined planning and administrative processes.
• Relaxation of quality of service requirements.
• Context appropriate competition policy, especially concerning market structure.
• Support for multi-sided business models such as zero rating and sponsored data. 114 Business Environment
Taxation
Background Debate
The mobile telecommunications sector Do sector-specific taxes deliver has a positive impact on economic short-term government income and social development, creating jobs, at the expense of longer-term increasing productivity and improving additional revenues that could the lives of citizens. be accrued through increased economic growth? Sector-specific taxes are levied on mobile consumers and operators in many countries. These include special communication taxes, such as excise duties on mobile handsets and airtime usage, and revenue-share levies on mobile operators. These taxes contribute to a high tax burden on the mobile sector that exceeds the burden on other sectors.
Some countries have applied a surcharge on international inbound call termination (SIIT), which can have the effect of increasing international call prices and acting as a tax on other countries’ citizens.
There is an increasingly broad consensus around the world that for tax systems to be effective they should follow internationally recognised best practice principles.
Mobile Policy Handbook 115
Industry Position Discriminatory, sector-specific taxes deter the take-up of mobile services and can slow Governments should reduce or remove the adoption of ICT. Lowering such taxes mobile-specific taxes because the benefits consumers and businesses and resulting social impact and long-term boosts socio-economic development. positive impact on gross domestic product, and hence tax revenues, will Governments often levy special taxes outweigh any short-term reduction in to finance spending in sectors where contributions to governments’ budgets. private investment is lacking, however this approach is inefficient. Fiscal Taxes should align with internationally policy that applies a special tax to the recognised principles of effective tax telecommunications sector causes systems. In particular: distortions that deter private spending and, in the end, diminish welfare by preventing • Taxes should be broad-based — the realisation of the positive spill-overs that different taxes have different economic mobile provides throughout the economy. properties and, in general, broad-based consumption taxes are less distortionary Emerging economies need to align their than taxation on income or profits. approach to taxing mobile broadband with national ICT objectives. If broadband • Taxes should account for sector and connectivity is a key social and economic product externalities. objective, taxes must not create an obstacle to investment in broadband networks or • The tax and regulatory system adoption and usage of mobile broadband should be simple, easily understandable by consumers. Lowering the taxation and enforceable. burden on the sector increases mobile take- up and use, creating a multiplier effect in • Dynamic incentives for the operators the wider economy. should be unaffected — taxation should not disincentivise efficient investment Taxing international calls negatively impacts or competition in the information and consumers, businesses and citizens abroad, communication technology (ICT) sector. damaging a country’s competitiveness.
• Taxes should be equitable and the burden of taxation should not fall disproportionately on the lower-income members of society.
Resources: GSMA Report: Digital Inclusion and Mobile Sector Taxation 2016 GSMA Report: Taxing Connectivity in Sub-Saharan Africa 116 Business Environment Taxation
Facts and Figures
Taxes and Fees on Mobile Consumers and Operators
Mobile operators have repeatedly raised concerns that their customers are facing an undue burden from taxation, compared to other goods and services. The taxation and fees burden on the mobile sector consists of a wide range of charges. On the consumer side, this includes taxes on handset purchases and connection activation, as well as calls, messages and data access. High taxation has a negative impact on the affordability of mobile services and can also have wider negative effects on productivity and economic growth.
In addition to these consumer-facing charges, mobile operators also face a range of other charges including licensing fees, corporation tax, revenue charges and many more. Taxes and fees that specifically target the mobile sector affect an operator's incentive to invest in network roll-out. The extent to which these charges fall on operators or consumers depends on individual market conditions. Some taxes may be absorbed by operators in the form of lower profits, while others may be passed through to consumers as higher prices, or a combination of the two.
Research by Deloitte for the GSMA revealed that:
• Mobile operators paid some $32 billion in 2015 across 27 nations surveyed. Sector-specific taxes were around $8 billion of this. Sector-specific excise duties were present in 81 per cent of surveyed nations, as were spectrum fees.
• Mobile-only tax payments were 30.5 per cent of operators’ revenues, excluding non-recurring payments such as spectrum auction fees.
• In nine countries, including Brazil, Chad and DRC, taxes account for 40 per cent or more of sector revenue.
Among the countries surveyed, it is only in South Africa and Italy that the sector’s tax contribution as a proportion of the whole tax take closely match its proportion of the whole economy. In four nations, the sector pays more than double, in three others more than triple and in three others more than four times.
Taxes and fees on mobile services affect the affordability of access and usage. These taxes and fees may have a disproportionate impact on lower-income consumers, as they result in mobile services accounting for a larger share of the annual income of poorer households. For the Democratic Republic of Congo, the most extreme case, these fees represent 26 per cent of the gross national income of the bottom 20 per cent of income earners. Mobile Policy Handbook 117
Eight Steps Governments Can Take to Rebalance Taxation and Promote Digital Inclusion
1. Phased reductions of sector-specific taxes and fees can represent an effective way for governments to signal their support for boosting the connectivity agenda.
2. To enable more users to gain access to mobile services, governments should choose to lower the affordability barrier caused in part by so-called ‘luxury’ taxes on devices and connections.
3. Uncertainty over future taxation reduces investment because the risk of future tax rises is priced into investment decisions. Governments should seek to limit unpredictable tax and fee changes and streamline how tax and fees are levied.
4. The spectrum award approach needs to balance the relationship between ex-ante and ex-post fees in a transparent way, to ensure operators do not pay twice for access to the same resource.
5. Eliminating import duties for mobile network equipment and other local taxes levied directly on mobile sites has the potential to increase network investment.
6. Governments should avoid disproportionate taxation of services such as mobile money, as it puts a wide range of positive externalities at risk.
7. Removal of surtaxes on international incoming calls can ease barriers to regional and international trade by lowering the cost of international communication. It can also improve affordability, enabling more consumers to realise the benefits of mobile services.
8. Governments should apply fees on profits rather than revenues, so as not to discourage investment and innovation. These fees require the same payment from an operator regardless of whether it retains its profit or uses it to invest in new infrastructure and services. 118 Business Environment
Universal Service Funds
Background Debate
Universal service — characterised by Are USFs an effective way to a telecommunications service that is extend voice and data connectivity available, accessible and affordable — to underserved citizens? is a policy goal of many governments.
Some countries have established universal What alternative strategies service funds (USFs) on the premise that could be more effective? operators are unable to extend service to some areas without financial support. How relevant are USFs USFs are typically funded by levies on in mature markets? telecommunication sector revenues. In these cases, operators continue to be required to contribute a share, despite the expansion of service to the vast majority of countries’ citizens and increasingly large accumulations of undisbursed funds.
According to a 2013 report commissioned by the GSMA, less than one-eighth of the 64 USFs studied are achieving their targets, and more than one-third have yet to disburse any of the funds they have collected. Nevertheless, the levies continue to be required from the sector. Mobile Policy Handbook 119
Industry Position USFs that already exist should be targeted, time-bound and managed transparently. Governments should phase out USFs The funds should be allocated in a and discontinue collecting USF levies. competitive and technically neutral way, Existing USF monies should be returned in consultation with the industry. to operators and used to extend mobile services to remote areas. Governments should consider incentives that facilitate market-based solutions. Liberalised markets and private- They can help by removing sector-specific sector investment have delivered taxes, stimulating demand and developing telecommunication services to the the supporting infrastructure. Alternative majority of the world’s population, solutions (e.g., public-private partnerships) a trend that the industry considers should be explored in preference to USFs will continue. for the extension of communications to rural and remote areas. Few USFs have successfully expanded access to telecommunication services, as is their objective, yet they continue to accumulate large sums of money.
There is little evidence that USFs are an effective way to achieve universal service goals and many have, in fact, been counterproductive, because they tax communications customers, including those in rural areas, and therefore raise the barrier to rural investment.
Resources: GSMA Report: Survey of Universal Service Funds, Key Findings GSMA Connected Society: Are Universal Service Funds an Effective Way To Achieve Universal Access? 120 Business Environment Universal Service Funds
Facts and Figures
Estimated Universal Service Funds Available
Despite the admirable goals that led to the creation of USFs during the early stages of telecoms liberalisation, there is now considerable doubt about their practicality and efficacy. A large proportion of USF monies collected remain undisbursed, and the structure of many USFs is too rigid to respond to rapid technological changes and societal requirements.
Africa
Burkino Faso 32.7
Dem. Rep. of Congo 63.2
Gabon 2.5
Ghana 10.5
Ivory Coast 12.5
Lesotho 0.6
Madagascar 10.0
Mauritius 1.7
Morocco 139.0
Mozambique 32.7
Niger 28.0
Nigeria 160.0
Rwanda 2.9
South Africa 28.8
Swaziland 1.8
Togo 5.1
Uganda 7.0
Zimbabwe 20.0
0 50 100150
Estimated funds available YE 2010/2011, USD millions Mobile Policy Handbook 121
Asia Pacific
Afghanistan 100.0
Australi a 0.0
India 3900.0
Indonesia 350. 0
Malaysia 259.9
Mongolia 0.2
Nepa l 54.1
New Zealan d 0.0
Pakistan 550.0
021000 000 3000 4000
Estimated funds available YE 2010/2011, USD millions
Americas
Argentina 220.0
Brazil 47 00 .0
Ch il e 0.0
Colombia 53.5
Dominican Republic 12.3
Ecuador 4.4
Guatemal a 0.4
Peru 202.0
Venezuela 24.4
021000 000 3000 4000 5000
Estimated funds available YE 2010/2011, USD millions
Source: GSMA, Survey of Universal Service Funds, April 2013 122 Spectrum Management and Licensing
Spectrum Management and Licensing
Mobile networks must continue to evolve from spectrum pricing, for example, to close the connectivity gap, respond risk much greater costs to society if to skyrocketing data traffic growth and competition in communications markets deliver on the immense potential of the is undermined and with the result that nascent Internet of Things industry. All of network investment is stifled. To ensure these elements will also be key pillars of widespread, high-quality affordable the 5G mobile future. services, it is essential that a sufficient amount of spectrum is released for mobile To support this evolution, mobile operators use — especially Digital Dividend spectrum need access to sufficient, internationally — with fair access prices. harmonised spectrum. Effective spectrum licensing plays a key role in providing The GSMA is very active at national, operators with access to this necessary regional and global levels in advocating for resource. If structured correctly, licensing the timely identification and release of more can help the industry attract the spectrum for mobile broadband. We work investment needed to further expand with national governments and regulators, mobile access and enhance the quality and regional organisations and the International range of services delivered to businesses Telecommunication Union (ITU). and consumers. With the World Radiocommunication All of this starts with solid planning. To Conference 2019 (WRC-19) on the horizon, encourage substantial investment in governments should build upon the mobile services, it is important to have foundations of previous conferences to a transparent, long-term broadband identify sufficient mobile spectrum to plan that includes a strategy for making support the future of the digital society. sufficient amounts of spectrum available to the mobile industry. This gives key backers, The work centred around Agenda Item including the mobile operators themselves, 1.13 will look at spectrum for mobile the certainty that their investments are broadband in frequencies between 24.25 safe and that the government is creating and 86 GHz, making WRC-19 essential to a positive regulatory environment to allow fully realising the 5G vision. A successful the industry to innovate and thrive. identification of a significant amount of new widely harmonised spectrum for Spectrum pricing also has a significant international mobile telecommunication impact on investment, and ultimately (IMT) is vital to realise the full potential of on mobile services. Governments mobile 5G networks. that seek to maximise state revenues Mobile Policy Handbook 123 124 Spectrum Management and Licensing
Core Mobile Bands
Core frequency bands The frequency bands utilised in mobile for mobile broadband networks today have been designated for mobile services internationally through Not all radio frequencies are equal, and ITU Radiocommunication Sector (ITU-R) mobile network operators require access and harmonised on either a regional or to a range of frequency bands to support global basis. They are then standardised affordable, high-quality mobile broadband by 3GPP before commercial deployment. services with excellent coverage. The core The most frequently deployed current harmonised bands for mobile roughly fall bands are listed below. Although within the frequency range of 400 MHz countries in different regions have to 5 GHz, with the lower range providing adopted different combinations of those large coverage areas and the higher range bands, regional and global harmonisation providing higher capacity. has created economies of scale, which in turn have made mobile services and handsets more affordable.
Effects of frequency on range and coverage area
In general, a network that uses higher-frequency spectrum requires more base stations to cover the same area as a network using lower frequencies.
Cell Radius Mobile network base station
5800 MHz2100 MHz850 MHz700 MHz< 700 MHz
Coverage Bands (<1 GHz)
61766176652652 663663 9898 79187918821821 832832 62 62 11 MH11 MHz z 11 MH11 MHz z 60600 MH0 MHz z 80080 MH0 MHz z 70377037733733 758758 8888 82488248849849 869869 9494 25 25MH MHz z 20 20MH MHz z 70070 MH0 MHz - zRe - gionRegion 1* 1* 850850 MH MHz z 70387038748748 758758 0303 88098809915915 925925 6060 10 MH10 MHz z 10 MH10 MHz z 70070 MH0 MHz - zAP - APT 70T 0*700* 900900 MH MHz z *Nor*North Americth America usesa uses a mo a more core mplecomplex 70x 070 MH0 MHz planz plan Mobile Policy Handbook 125
Band Characteristics: the same area, thereby requiring more Capacity vs. Coverage investment. However, these bands can support more mobile broadband traffic In general, lower-frequency signals below and higher speeds, making them effective 1 GHz reach further and are better at in more densely populated areas. penetrating buildings. These frequencies are sometimes called coverage bands It isn’t an either/or proposal, however. A because an operator can serve a larger single mobile handset today can support area with one base station. These bands a variety of bands, and indeed, mobile are particularly important for providing operators use a combination of different affordable mobile broadband services bands to provide good coverage and high in rural areas. data speeds. For future services, operators are looking at even higher bands, those The capacity of a wireless connection above 6 GHz, to support data-intensive for data or voice calls is dependent on mobile applications. the amount of spectrum it uses — the channel bandwidth — and wider channel bandwidths are more readily available at higher frequencies, for example at 1.8 GHz and above. These frequencies are often referred to as capacity bands. Deploying a network that uses these higher-frequency bands requires more base stations to cover
Capacity Bands (> 1 GHz) 14271427 15181518 19201920 19801980 21102110 21702170 13013 MH0 MHz z L-bandL-band1 1 2.1 2.GH1 GHz z 17101710 17851785 1801805 5 18801880 23002300 24002400 20 20MH MHz z TDTDD D 18001800 MH MHz z 2.32. GH3 GHz z 17101710 17701770 21102110 21702170 25002500 25702570 26202620 26902690 34034 MH0 MHz z TDDTDD AWAWS bandS band 2.62. GH6 GHz2 z2 18501850 19101910 19301930 19901990 33003300 3803800 0 20 20MH MHz z TDTDD D 19001900 MH MHz z 3.53. GH5 GHz3 z3 1 Band1 Band plan plan is under is under de vedelopmenvelopment t 2 50MH2 50MHz TDz TDD inD thine th cee ntrecentre ga pgap 3 Ac3 tualActual rang range dei ers di ers by byregion region/count/country ry 126 Spectrum Management and Licensing
5G Spectrum
Background 5G will be defined in a set of standardised specifications which will be agreed by 5G will support significantly faster mobile international bodies — most notably the broadband speeds and increasingly 3GPP and the ITU. The initial 3GPP ‘5G’ extensive mobile data usage, while also standard, which will be a candidate for enabling the full potential of the Internet the ITU’s standards, is not expected to of Things (IoT). From virtual reality and be published until 2019, with widespread autonomous cars to the industrial internet commercial services expected to follow in and smart cities, 5G will be at the heart of the early 2020s. However, smaller scale, the future of communications. 5G is also pre-standards-based 5G deployments are essential for preserving the future of today’s expected to begin beforehand. most popular mobile applications — such as on-demand video — by ensuring that growing uptake and usage can be sustained. Debate
5G is expected to address three key usage How can governments and scenarios: enhanced mobile broadband, regulators enable widespread including multi-gigabit per second (Gbps) 5G coverage rather than just data rates; ultra-reliable communications, in city centres? including very low latency (sub-1 ms) and very high availability and security; and massive machine-type communications, Why is spectrum above including the ability to support a huge 6 GHz useful for 5G? number of low-cost IoT connections. The aim of 5G is to create a more ‘hyper connected’ society by integrating LTE (in licensed and What is the benefit of a unlicensed bands), Wi-Fi and cellular IoT globally harmonised approach technologies, together with at least one new to 5G spectrum? 5G radio interface, in a more comprehensive and intelligent way.
The success of the services will be heavily reliant on national governments and regulators. Most notably, the speed, reach and quality of 5G services will be dependent on governments and regulators supporting timely access to the right amount and type of spectrum, and under the right conditions. 5G services will initially begin in more developed mobile markets. However, developing markets may follow in quick succession, especially in order to offer a fibre-like wireless experience and improved IoT support. Mobile Policy Handbook 127
Industry Position Governments and regulators hold the key to realising the full potential of 5G when Significant new widely harmonised they agree new mobile bands above 24 mobile spectrum is needed to ensure GHz at WRC-19. It is essential that they 5G services meet future expectations agree a sufficient amount of harmonised 5G and deliver the full range of potential spectrum to enable the fastest 5G speeds, capabilities. low-cost devices, international roaming and to minimise cross-border interference. The 5G needs spectrum within three key GSMA supports focusing WRC-19 studies on frequency ranges to deliver widespread the 26 GHz, 32 GHz and 40 GHz bands — coverage and support all use cases. with 26 GHz as the top priority. These ranges are: Licensed spectrum should remain the core 5G Sub-1 GHz. This will support widespread spectrum management model. Unlicensed coverage across urban, suburban and rural bands can play a complementary role. areas and help support IoT services. There is significant potential for the 1-6 GHz. This offers a good mixture of coexistence of 5G and other wireless services coverage and capacity benefits and includes (e.g., satellite and fixed links) in higher- spectrum within the 3.3-3.8 GHz range, frequency bands (e.g., above 24 GHz). which is expected to form the basis of many initial 5G services. Technology neutral spectrum licences are essential. They allow bands used for existing Above 6 GHz. This meets the ultra-high mobile technologies to be easily refarmed broadband speeds envisioned for 5G. A for 5G, ensuring the spectrum is used as focus will be on bands above 24 GHz with efficiently as possible. WRC-19 considering a range of bands from 24-86 GHz. Many countries already strongly It is essential that governments and regulators support certain bands for 5G above 6 successfully support the needs of 5G at GHz — including the 26 GHz and 28 GHz international spectrum discussions, including bands, which could be easily implemented WRC-19 and its preparatory meetings, together in a single device due to their close because of the lengthy timeframes involved in proximity. There is also some interest in making new mobile spectrum available. exploring bands in the 6-24 GHz range. Governments and regulators need to adopt national policy measures to encourage long- term heavy investments in 5G networks.
Resources: GSMA Public Policy Position: 5G Spectrum GSMA Future Networks 5G website GSMA Report: The 5G Era — Age of Boundless Connectivity and Intelligent Automation 128 Spectrum Management and Licensing
Digital Dividend
Background Debate
The Digital Dividend is the spectrum What goals should governments try made available for alternative uses to achieve when relicensing Digital following the switchover from analogue Dividend bands? to digital terrestrial television, as digital broadcasting uses spectrum far more efficiently than analogue broadcasting. How important is spectrum harmonisation when planning Digital Dividend spectrum is ideal for for the Digital Dividend? mobile broadband because it consists of lower-frequency bands that can cover wider areas with fewer base stations than current mobile broadband spectrum which relies on higher frequencies. This lowers deployment costs and allows operators to provide broader, more affordable coverage, especially in rural areas.
Digital Dividend spectrum also delivers benefits in urban areas, as it supports improved indoor coverage, because these frequencies can more easily penetrate buildings.
The initial upgrade to digital television created two potential new mobile bands. They are the 800 MHz band for use in Europe, the Middle East and Africa, and the 700 MHz band (698–806 MHz) — also known as APT 700 — for use in the Americas and the Asia Pacific region.
More recently, a second phase opens the door for two further mobile bands. The first one is 700 MHz (this time 694-790 MHz) for use in Europe, the Middle East and Africa. The second is 600 MHz in parts of the Americas and Asia Pacific, such as Colombia, Mexico, the United States, Bangladesh and New Zealand. Mobile Policy Handbook 129
Industry Position Regional harmonisation of the bands will maximise economies of scale for equipment The Digital Dividend should be manufacturers (helping to drive down allocated for mobile use in alignment the cost of handsets for consumers) and with regionally harmonised band plans mitigate interference along national borders. as soon as possible. For these reasons:
The switchover to digital television • Asia Pacific and Latin America should supports the delivery of a wide variety of adopt the APT 700 MHz band plan. high-definition broadcast content, while also improving the provision of mobile • Europe, the Middle East and Africa broadband services. Licensing as much should adopt the ITU Region 1 700 MHz Digital Dividend spectrum as possible for band, which is compatible with APT mobile use is key if governments are to give 700 MHz equipment. their citizens access to affordable, high- quality, mobile broadband services. • Countries from ITU Region 2 and 3 (US, Mexico, New Zealand, etc.) are Governments should not seek to generate converging on the same 600 MHz excessive fees from licensing these bands, FDD band plan, and this is laying an as this can lead to spectrum remaining important foundation towards global unsold and risks impacting network harmonisation of the band. investment and deployment, while also potentially leading to higher mobile phone bills. Ultimately, excessive spectrum fees have the potential to limit the socio- economic benefits that affordable mobile broadband access can deliver.
Resources: GSMA Public Policy Position: Securing the Digital Dividend for Mobile Broadband GSMA Public Policy Position: Recommended Band Plan for Digital Dividend 2 in ITU Region 1 GSMA Public Policy Position: Asia Pacific Digital Dividend/UHF Band Plans GSMA & AHCIET Report: Economic Benefits of the Digital Dividend for Latin America GSMA & BCC Report: The Economic Benefits of Early Harmonisation of the Digital Dividend Spectrum and the Cost of Fragmentation in Asia-Pacific 130 Spectrum Management and Licensing Digital Dividend
Facts and Figures
Releasing Digital Dividend Spectrum for Mobile
This map shows individual countries' progress in licensing Digital Dividend spectrum for mobile telecommunications.
700 MHz and 800 MHz licensed
600 MHz and 700 MHz licensed
800 MHz licensed
700 MHz licensed
Not currently licensed for mobile Mobile Policy Handbook 131
700 MHz and 800 MHz licensed
600 MHz and 700 MHz licensed
800 MHz licensed
700 MHz licensed
Not currently licensed for mobile
Source: GSMA Intelligence, November 2017 132 Spectrum Management and Licensing
Licensed Shared Access
Background Debate
Licensed Shared Access (LSA) is a Can operators rely on the LSA concept that allows spectrum that has concept to share spectrum with been identified for international mobile the incumbent users? telecommunications (IMT) to be used by more than one entity. Theoretically, this would increase the use of the radio How can the regulatory/competition spectrum by allowing shared access issues be addressed with the use of when and where the primary licensee, a LSA (e.g., to safeguard against one non-mobile incumbent, is not using its operator getting access to the full designated frequencies. LSA spectrum)?
LSA complements other authorised ways to access spectrum, including How can LSA be applied effectively, licensed (exclusive) and licence-exempt without undermining the urgency (unlicensed) use of the spectrum. of clearing mobile bands for exclusive access? Provided that a commercial agreement and an adequate regulatory framework are in place, LSA could allow a portion of assigned spectrum to be used by an LSA user (such as a mobile operator).
As global demand for spectrum intensifies, regulatory strategies such as these are attracting considerable interest and investigation.
While we agree that sharing paradigms should be explored as another option for spectrum management, sharing technologies have long promised but remain largely unproven.
— Joan Marsh, Senior Vice President of Federal Regulatory, AT&T Mobile Policy Handbook 133
Industry Position
The LSA concept could give mobile network operators access to additional spectrum for mobile broadband, but exclusive access through market-based licensing should remain the main regulatory approach.
LSA does not replace the urgent need to secure additional, exclusive and harmonised spectrum for mobile broadband, and this continues to be the primary objective at the regional and international level.
Authorisation to access additional spectrum using LSA should be granted by national regulatory authorities after public consultation and commercial agreement between the incumbent spectrum user and mobile network operators.
Resources: GSMA & Deloitte Report: The Impact of Licensed Shared Use of Spectrum GSMA Public Policy Position: Licensed Shared Access (LSA) and Authorised Shared Access (ASA) Qualcomm 1000x Data Challenge website AT&T Public Policy Blog: The Power of Licensed Spectrum 134 Spectrum Management and Licensing Licensed Shared Access
Deeper Dive
Spectrum Sharing Models
Licensed use of spectrum, on an exclusive basis, is a time-tested approach for ensuring that spectrum users — including mobile operators — can deliver a high quality of service to consumers without interference. As mobile technologies have proliferated, the demand for access to radio spectrum has intensified, leading to considerable debate and advocacy for new approaches to spectrum management.
Licence-exempt spectrum:
Frequency bands that can be used by multiple systems and services if they meet predefined ‘politeness protocols’ and technical standards. Wi-Fi is a technology that uses licence-exempt spectrum.
Shared licensed spectrum:
Any licensed spectrum that is shared among licensed users. This sharing may be agreed on a commercial basis between licensed entities or as a condition of the licensing process. Mobile Policy Handbook 135
TV white space:
Television spectrum in the UHF band that, due to predictable geographical or temporal gaps in broadcasting, offers the potential for licence-exempt devices to use the spectrum for broadband services. These services are dependent on dynamic spectrum management technologies and techniques.
Licensed shared access (or authorised shared access):
A proposed sharing scheme that allows licensed use of underutilised spectrum that is already licensed by another service. Licensed shared access (LSA) is proposed as a way to ensure a high quality of service is delivered, as opposed to best-endeavour services that are delivered through licence-exempt spectrum.
While these innovations may find a viable niche in the future, the GSMA’s position is that pursuit of these options today risks deflecting attention from the release of sufficient, exclusively licensed spectrum for mobile broadband. 136 Spectrum Management and Licensing
Limiting Interference
Background Debate
Radio transmissions always have the Are guard bands the only way potential to interfere with radio systems to prevent interference between operating in adjacent frequency bands, mobile bands and systems using due to transmitter imperfections or adjacent bands? imperfect receiver filtering.
New technologies are better at mitigating Should potential interference be interference, although they can be more solved ex-ante by the national costly because of equipment complexity regulatory authority before and energy consumption. allocating new spectrum to mobile operators, or should this be left to The solution is to define radio transmitter the operators? and receiver parameters to ensure compatibility between radio systems operating in the same or adjacent frequency bands. This approach cannot, however, be applied to technologies that lack standards.
The traditional way to manage interference has been to establish guard bands that are left vacant. However, these guard bands reduce the overall efficiency of spectrum use. Other interference-mitigation techniques should be employed as much as possible to minimise the loss of usable spectrum.
The more countries that support a band, the greater the possibility for global harmonisation, offering substantial economies of scale, reducing interference along country borders and delivering cost benefits for consumers.
— GSMA Mobile Policy Handbook 137
Industry Position
Interference can be managed with proper planning and mitigation techniques.
For mobile telecommunications, regional harmonisation of allocated mobile bands is the best way to avoid interference along national borders.
Issues of cross-border interference are usually addressed through bilateral or multilateral agreements among neighbouring countries.
To minimise guard-band size and the cost of interference mitigation, radio system standards defining the RF performance of transmitters and receivers are necessary.
Broadcasters are rightly concerned that mobile services introduced in the UHF band do not interfere with television reception, and mobile operators are equally concerned that this does not happen. A television receiver standard would improve the situation.
Resources: GSMA Reference Document: Managing Radio Interference GSMA Briefing Paper: WRC Agenda Item 1.17 — Broadcast Interference GSMA Reference Document: Potential for Interference to Electronics 138 Spectrum Management and Licensing Limiting Interference
Case Study
Real-World Experience of 800 MHz LTE Coexistence
Because Digital Dividend spectrum is, by definition, adjacent to frequency bands that continue to be used for television broadcasting, regulators and industry have worked hard to ensure that mobile services using the 800 MHz Digital Dividend band do not interfere with television broadcasting. Nevertheless, concerns continue to be aired in most markets until the actual roll out of the mobile services. Now that mobile network operators in several countries have begun to deploy LTE networks using Digital Dividend spectrum, these concerns can largely be put to rest.
In Germany, as of October 2012, more than 4,600 800 MHz base station sites had been deployed, in urban, suburban and rural areas. Reported incidents of interference were very low. Six cases of interference with digital terrestrial television were reported, and this includes the most critical case, involving the lower block of LTE spectrum and TV channel 60, which O2 rolled out in Nuremburg in July 2012. In addition, 22 cases involved wireless microphones (which had already been asked to migrate to other frequencies by the regulator), and six involved other radio services and applications.
In Sweden, hundreds of 800 MHz base station sites have been deployed, with the first-line response for reported interference managed jointly by the mobile operators. During the first quarter of 2012, approximately 40 cases of interference with the television bands were reported, of which 30 were quickly resolved by supplying the viewers with a television receiver filter.
Globally, up to now, there have been fewer cases of interference with digital terrestrial television by mobile services in the 800 MHz band than forecast. However, the incidence rate may vary depending on the proportion of the population that uses the digital television platform and the digital television network topology. Radio frequency (RF) amplifiers are a more significant factor than anticipated, but RF filters can solve the majority of interference cases.
So far, there has been no interference to cable networks.
Source: Vodafone Mobile Policy Handbook 139
Case Study at800 in the United Kingdom
In 2012, mobile operator licensees in the UK set up a joint venture called at800 to act as the mechanism for resolving television interference issues when LTE services were launched in the 800 MHz band.
The four mobile operators are shareholders, and each had to contribute £30 million per 5 MHz lot acquired. at800 was then responsible for collecting information about each operator’s LTE800 roll out plans and arranging a leafleting campaign in the affected areas, giving details of how householders could report interference issues. at800 manages the call centre, posts filters to consumers and sends engineers to fix any remaining problems. Any funds remaining after the completion of the programme will be divided among the shareholders. In practice, it has become apparent that the scale of interference was greatly overestimated.
As of November 2016, at800 had achieved a 99 per cent or 100 per cent pass rate against all KPIs for its twelfth consecutive month. All 549 confirmed 4G interference cases in November 2016 were resolved within the 10-working- day target, as they had predominately been every month in the previous year. For disruption that is not related to LTE at 800 MHz, at800 directs viewers to organisations that may be able to help. 140 Spectrum Management and Licensing
Spectrum Auctions
Background When assigning spectrum via an auction, governments typically have a number of Spectrum management for mobile goals, which may include achieving: telecommunications is increasingly complex as governments release new spectrum in • The maximum long-term value to the existing mobile bands, manage the renewal economy and society from the use of of licences coming to the end of their initial the spectrum. term, and release spectrum in new bands for mobile broadband services. • Efficient technical implementation of services. Effective and efficient management of these processes is central to the continued • Sufficient investment to roll out investment in, and development of, networks and new services. mobile services. • Revenue generation for the government. Auctions are an efficient way to allocate spectrum when there is competition for • Adequate market competition. scarce spectrum resources and demand is expected to exceed supply. However, they • A fair and transparent allocation process. need to be carefully planned if they are to 1 In 2016 alone, part or all of the Digital Dividend mobile lead to successful outcomes. In-demand spectrum went unsold in Ghana, Senegal and India Digital Dividend spectrum — which is the key to extending affordable mobile broadband services — has gone unsold in several Debate developing markets because governments have set excessively high reserve prices.1 How is the value of spectrum best determined? There are a number of different possible auction designs, each with its strengths and limitations. While multi-round auctions are Should governments design often preferred, the best choice is dependent auctions to maximise revenue on the market circumstances and the in the short term, or to ensure objectives of the government and regulators. an economically efficient means of allocating a scarce resource?
Countries that get their licensing approach right can better realise the potential of mobile broadband, bringing substantial benefits to consumers and businesses in terms of innovative, high-quality services and lower costs of provision.
— Competition Economists Group, 2016 Mobile Policy Handbook 141
Industry Position Auctions should be designed to maximise the long-term economic and social Efficient allocation of spectrum is benefits from use of the spectrum. They necessary to realise the full economic should not be designed to maximise and societal value of mobile. short-term revenue for governments. The following key principles can help guide There is no ‘one size fits all’ design for licensing authorities: spectrum auctions. Each auction needs to be designed to meet the market • Auctions can deliver strong social circumstances and to achieve the specific benefits as long as they are properly objectives set by government. designed.
As with most auction design elements, the • High spectrum prices jeopardise the appropriateness of simultaneous auctions effective delivery of wireless services. (multiple bands being auctioned together) versus sequential auctions (bands • Spectrum licences should be technology being auctioned one after the other) is and service neutral. dependent on specific market conditions. The effectiveness of either approach • Licence conditions should be used will be dependent on a clear spectrum with caution. road map with well-defined rights and conditions understood in advance. • Licence duration should be at least 20 years to incentivise network investment. Regulators should work with stakeholders to ensure the auction design is fair, • Competition can be supported by transparent and appropriate for the licensing as much spectrum as possible specific market circumstances. Auctions and limiting charges and other barriers are not the only option available to to services. governments to manage spectrum allocation and should only be used in • Voluntary spectrum trading should appropriate circumstances. be encouraged to promote efficient spectrum use.
Resources: GSMA & CEG Report: Best Practice in Mobile Spectrum Licensing GSMA & NERA Report: Effective Spectrum Pricing — Supporting Better Quality and More Affordable Mobile Services GSMA Public Policy Position: Spectrum Auctions GSMA Managing Spectrum website 142 Spectrum Management and Licensing Spectrum Auctions
Case Study
Rising Spectrum Prices Harming Consumers and the Digital Economy
Globally, spectrum prices reached all-time highs with the 3G auctions at the start of the millennium, before falling gradually until 2007. From 2008-2016, when 4G auctions became common, the average final price paid for spectrum sold at auction increased 3.5 fold.1 A key factor behind this significant rise was a number of outlier auctions where final prices were extremely high.
High spectrum prices are associated with more expensive, lower-quality mobile broadband services and irrecoverable losses in consumer welfare worth billions of dollars worldwide.2 Research shows that when prices are too high, operators are likely to invest less in their networks — which impacts the quality and reach of services. Operators are also less able to engage in price competition leading to more expensive mobile broadband services for consumers. Consumer losses from more expensive services also significantly outweigh the increased treasury revenues from higher spectrum prices.
The cause of these extremely high prices are typically policy factors that appear to prioritise maximising short-term state revenues above long-term support for the digital economy through improved mobile services. Policy factors include setting excessive reserve prices, making insufficient spectrum available for auction, as well as a lack of clarity on future releases or the process of renewing expiring licences. Such factors can create uncertainty, artificial scarcity of spectrum and encourage excessive bidding above operators’ true valuations of the licences on offer.
Spectrum is a valuable state asset and governments have the option to use it to raise revenues to fund vital state activities. However, the primary goal in all awards should be to encourage the most efficient use of spectrum through investment in widespread, high-quality networks. Many countries around the world successfully strike the right balance between raising revenues and delivering efficient spectrum awards. To do this, the GSMA recommends that governments and regulators:
1. Set modest reserve prices and annual fees, and rely on the market to set prices.
2. License spectrum as soon as it is needed, so as to avoid artificial spectrum scarcity.
3. Avoid measures which increase risks for operators, forcing them to overbid for spectrum.
4. Publish long-term spectrum award plans that prioritise welfare benefits over state revenues. Mobile Policy Handbook 143
India: Enough Spectrum Made Available but Hooked on High Reserve Prices
In a 2015 auction, the main Indian carriers had competed intensely to retain their existing spectrum holdings. However, when fresh spectrum was made available in a 2016 auction across the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands, they were not forced to compete as fiercely. Nevertheless, the TRAI set the reserve price for 700 MHz, in particular, at an extremely high level, having based it on 1800 MHz prices achieved in the hotly contested 2015 auction (700 MHz price being four times 1800 MHz). As a result, the final revenues from the auction were less than anticipated — only $9.9 billion of total revenues as opposed to $85 billion of total reserve prices. There were no bids for the 700 MHz band and bids for 850 MHz, 2100 MHz and 2500 MHz spectrum were also very limited, with many blocks in several circles unsold. The entire 2300 MHz spectrum was sold and 80 per cent of 1800 MHz spectrum that was put up for auction was also sold.
Thailand: Expensive Rationed Spectrum Hampers Investment
In 2015, Thailand auctioned 1800 MHz spectrum in November, followed by 900 MHz spectrum in December. The winning bids in the December auction were almost six times the reserve price for the 900 MHz spectrum and more than double the final proceedings for the 1800 MHz spectrum auction. In total, the auction of just 100 MHz of spectrum raised THB232.73 billion (US$6.52 billion), making the winning bids among the highest in the world on a per-MHz per-capita basis. The Thailand auctions demonstrate what can happen in markets where spectrum is artificially rationed and there is no clear roadmap for its release. Although the auctions raised huge funds for the Thai government, they have dramatically reduced the Thai operators’ ability to invest in their networks and services. This is likely to hold back the development of Thailand’s digital economy and the country runs the risk of falling behind other countries in South East Asia.
In the words of Brett Tarnutzer, Head of Spectrum, GSMA, “Acquiring spectrum is only the first step before making the necessary investment in network deployment to deliver mobile services to consumers. Unreasonably high reserve prices lead to spectrum remaining unsold, delays in the delivery of mobile services and, ultimately, an increase in consumer tariffs.”
1 GSMA & NERA Economic Consulting Report: Effective Spectrum Pricing — Supporting Better Quality and More Affordable Mobile Services, 2017 2 Ibid NERA, 2017 144 Spectrum Management and Licensing
Spectrum for Drones (UAVs)
Background feet.2 Mobile networks can also provide the connectivity to support an air traffic Unmanned Aerial Vehicles (UAVs), or management system for UAVs, as well drones as they are commonly known, as enabling no-fly zones and issuing have the potential to deliver profound commands such as flight path updates. socio-economic benefits. These range from transforming how businesses deliver But these significant benefits can only be their products to supporting life-saving realised if regulators remove barriers in the services such as drug delivery in remote way of using of mobile networks to support areas. However, this is all contingent on UAVs — most notably those associated with effective UAV authentication, monitoring the use of licensed mobile spectrum. and connectivity. 1 SESAR, European UAVs Outlook Study, 2016 2 Several trials have taken place including those held In Europe alone there are expected by Nokia and Qualcomm to be over 400,000 commercial and government UAVs by 2050.1 Current aeronautical communication systems are Debate not designed to manage such a huge new fleet of vehicles, nor can they enable them Should regulators permit licensed to operate effectively in built-up urban mobile spectrum to be used for areas and support high-bandwidth traffic UAV connectivity? such as streaming video.
Mobile networks already provide wide area broadband connectivity and sim cards are a trusted authentication mechanism. Trials have shown that terrestrial mobile networks are able to safely support UAV connectivity at altitudes of at least 400 Mobile Policy Handbook 145
Industry Position devices that are ‘off the ground’. Similarly, if regulators choose to classify mobile services Licensed mobile spectrum enables for UAVs as an ‘aeronautical mobile service’ widespread, high-quality connectivity then the bands mobile operators can use for UAVs with sufficient capacity to may be restricted. This would adversely support competitive services and rising affect the coverage and capacity of the usage levels. resulting LTE services, as well as competition in markets to provide such services. Mobile services in licensed bands are well established worldwide in mature It is not clear that any such restrictions networks, so could be used to support UAV on the use of mobile spectrum would be connectivity today if permitted by regulators. justified given there is no evidence that Mobile operators typically have exclusive mobile-connected UAVs present interference access to coverage spectrum (i.e., below 1 concerns to other wireless services. GHz) to reliably cover very wide areas and capacity spectrum (i.e., above 1 GHz bands) Regulators should also adopt a service which supports very fast data speeds. Taken and technology neutral framework to together this means operators can support fully support UAVs. It is essential that very safe, reliable, wide-area broadband governments provide a regulatory connectivity for UAV. framework for licensed spectrum that facilitates the development and growth Another benefit of licensed mobile of UAV connectivity, and does not impose spectrum is that it can support affordable service or technological restrictions that UAV connectivity worldwide. Mobile hold back innovation. Operators should spectrum bands are often harmonised not be prevented from deploying any regionally or globally, so economies of scale mobile technology in their spectrum to already exist to support affordable radio support UAVs. Spectrum licences which are equipment for UAVs. technology specific may limit the ability to provide high-speed data connectivity for It is therefore essential that there are no UAVs (e.g., 3G or 4G), or new IoT-specific unnecessary barriers to using licensed cellular technologies that could provide mobile spectrum for UAV connectivity. simple narrow-band authentication and Restrictions could damage the significant identification (e.g., NB-IoT or LTE-M). benefits cellular connectivity delivers. This could happen, for example, if regulators decide that mobile spectrum licences may not be used to provide connectivity to
Resources: GSMA Drones website GSMA Public Policy Position: Mobile Spectrum for Unmanned Aerial Vehicles Qualcomm Technologies: LTE Drone Trial SESAR Report: European Drones Outlook Study 146 Spectrum Management and Licensing
Spectrum for IoT
Background The latest mobile standard — 3GPP Release 13 — supports all the key The Internet of Things (IoT) is a hugely requirements for mobile IoT technologies, important and rapidly growing market including: long battery life, low device with the potential to transform the cost, low deployment cost, widespread digital economy. Mobile services play an coverage and support for a massive important role in the wide-area IoT market number of devices. and are evolving to meet a growing array of different requirements. For example, The mobile industry already plays a the key markets for mobile IoT solutions significant role in the wide-area M2M include the utility, medical, automotive and market — most notably via GSM systems retail sectors. This is in addition to current for low-bandwidth applications, such as consumer electronics devices, including vending machines, and through 3G and e-book readers, GPS navigation aids and 4G-LTE for high-bandwidth applications digital cameras. such as streaming video.
1 Data from Machina Research, According to data from Machina Research, September 2017 the total number of machine-to-machine (M2M) connections is predicted to grow from almost eight billion in 2017 to 27 Debate billion by 2025, with the total IoT revenue opportunity worth $3 trillion by 2025.¹ How can governments and regulators use spectrum policy The bulk of the M2M market (72 per cent) to incentivise the rapid roll out uses short-range, unlicensed connections of IoT services? (e.g., Wi-Fi and ZigBee), while the wide- area market is heavily reliant on mobile connectivity. Mobile M2M connections are What are the benefits of using expected to grow from 506 million in 2017 licensed spectrum for IoT? to two billion by 2025.¹
The requirements of wide-area IoT services vary much more widely than those for traditional mobile services. As a result, mobile technology standards are continuously evolving to support these use cases, which is driving innovation and ensuring that mobile IoT is increasingly well placed to compete effectively with other IoT solutions. Mobile Policy Handbook 147
Industry Position that hold back innovation. Instead it should be designed to nurture evolution in the Licensed spectrum is vital in order to capabilities of mobile networks and allow the deliver the most reliable IoT services. market to decide which solutions will thrive. This is because of its unique ability to support quality of service guarantees International spectrum harmonisation over wide areas, as networks using is vital for the development of a global, licensed spectrum are not at risk of affordable mobile IoT market. This is interference and operators can control because it enables the development of usage levels on their networks. mass-market, low-cost mobile IoT devices, through the creation of an addressable As a result, licensed mobile IoT may be market that is large enough to support the only choice for services which require manufacturing economies of scale. concrete assurance levels, such as security and medical applications. Harmonised mobile spectrum is needed to support all wide-area IoT use cases, Licensed spectrum has the capacity and including coverage bands for Low-Power coverage capabilities to support IoT growth. Wide-Area (LPWA) use cases and capacity Crucially, the IoT technologies included bands for high-bandwidth applications like in the latest mobile standard, Release video streaming. 13, significantly build on the coverage capabilities of existing spectrum. Regulators should work with the mobile industry to support IoT in 5G spectrum The viability of mobile IoT is contingent on planning, as 5G is expected to play an governments adopting a positive regulatory important role in the evolution of mobile IoT. framework, especially as it pertains to mobile spectrum. This type of framework must not impose service or technological restrictions
Resources: GSMA Public Policy Position: Internet of Things GSMA Connected Living Programme Guide: The Internet of Things GSMA Video: The Internet of Things — A World of Opportunity 148 Spectrum Management and Licensing
Spectrum Harmonisation
Background the industry with an important mix of internationally harmonised coverage Spectrum harmonisation refers to the and capacity spectrum to meet growing uniform allocation of radio frequency bands, demand for mobile services. Spectrum under common technical and regulatory harmonisation through the WRC process regimes, across entire regions. A country’s is also key to enabling lower-cost mobile adherence to internationally identified devices through economies of scale. spectrum bands offers many advantages:
• Lower costs for consumers, as device Debate manufacturers can mass-produce devices that function in multiple How harmonised does a band countries on a single band. need to be to realise the benefits of harmonisation? • Availability of a wider portfolio of devices, driven by a larger, international market. Can a national market be so large • Roaming, or the ability to use one’s that the benefits of spectrum mobile device abroad. harmonisation are inconsequential?
• Fewer issues of cross-border interference. In the future, will cognitive At the most recently completed World technologies enable devices to tune Radiocommunication Conference (WRC) dynamically to any band removing in Geneva, agreement was reached on the the need for countries to harmonise? creation of three global spectrum bands for mobile — 700 MHz, 1427-1518 MHz and 3.4-3.6 GHz. The outcome provides
Twenty-eight different approaches to manage radio frequencies in the EU do not make economic sense in the Digital Single Market… We propose a joint approach to use the 700 MHz band for mobile services. This band is the sweet spot for both wide coverage and high speeds. It will give top-quality internet access to all Europeans, even in rural areas, and pave the way for 5G, the next generation of communication network.
— Andrus Ansip, Vice-President for the Digital Single Market, European Commission, 2016 Mobile Policy Handbook 149
Industry Position All markets should harmonise regionally where possible, as this benefits the entire Governments that align national use global mobile ecosystem. There is no of the spectrum with internationally advantage in going it alone. harmonised band plans will achieve the greatest benefits for consumers and Cognitive radio technologies will not avoid interference along their borders. reduce the need for harmonised mobile spectrum anytime soon. Adhering to At a minimum, harmonisation of mobile internationally recognised band plans is bands at the regional level is crucial. Even the only way to achieve large economies small variations on standard band plans of scale. can result in device manufacturers having to build market-specific devices, with costly consequences for consumers.
Resources: GSMA & Boston Consulting Group Report: The Economic Benefits of Early Harmonisation of the Digital Dividend Spectrum and the Cost of Fragmentation in Asia-Pacific GSMA & Plum Consulting Report: The Benefits of Releasing Spectrum for Mobile Broadband in Sub-Saharan Africa GSMA Report: Economic Benefits of the Digital Dividend for Latin America 150 Spectrum Management and Licensing Spectrum Harmonisation
Deeper Dive
World Radiocommunication Conference 2019 (WRC-19)
Mobile networks are increasingly critical to national prosperity. In 2016, the mobile industry generated $3.3 trillion, or 4.4 per cent of global GDP, and contributed $450 billion to public funding. This growth would never have been possible without the harmonisation of mobile spectrum through the ITU.
Spectrum harmonisation has created economies of scale for existing generations of mobile networks, which in turn have made mobile services and handsets more affordable. For 5G to become a success, widely harmonised mobile spectrum is again needed to ensure 5G services meet future expectations and deliver the full range of affordable services.
5G networks require spectrum within three key frequency ranges to deliver widespread coverage and support all use cases. These frequency ranges are: Sub-1 GHz, 1-6 GHz and above 6 GHz. The availability of widely harmonised spectrum for 5G in the latter frequency range will depend to a large extent on the decisions made at WRC-19. This spectrum is needed for 5G to be able to offer multi-gigabit per second (Gbps) data rates and to support very low latency (sub-1 ms).
As previously stated, the work at WRC-19 includes Agenda Item 1.13 (AI 1.13), which looks at spectrum for mobile broadband between 24.25 and 86 GHz. In total, seven frequencies are being considered:
Frequencies being considered under Agenda Item 1.13
• 24.25-27.5 GHz • 50.4-52.6 GHz • 31.8-33.4 GHz • 66-76 GHz • 37-43.5 GHz • 81-86 GHz • 45.5-50.2 GHz
The studies that will help identify spectrum in this range are already underway. At this point in the WRC-19 cycle, the GSMA advocates for studies to be focused on the 26 GHz, 32 GHz and 40 GHz bands.
The 26 GHz band (24.25-27.5 GHz) is the highest priority band. There are several reasons for this. It is already gaining traction around the globe for mobile broadband services. For example, the band has been chosen in Europe as a ‘pioneer band’. There are also technical and economic benefits. The 26 GHz band is adjacent to the 28 GHz band, allowing for economies of scale and early equipment Mobile Policy Handbook 151
availability. The 28 GHz band will be used as the first millimetre-wave 5G band in the US, South Korea and Japan, with implementation done outside of the WRC-19 process and under an existing mobile allocation.
The smaller coverage area of higher frequencies can lessen interference concerns in mobile networks and increase the opportunity for spectrum sharing. That means 5G may be able to make use of the same bands as other services. Such services can still operate in different geographical areas, with the help of suitable interference mitigation methods. The use of these higher bands could also simplify cross-border interference issues as the smaller coverage area means neighbouring countries can use the same spectrum for different services.
Countries in parts of the world that won’t be early adopters of 5G often raise the question of why should they care about these efforts. It is important to remember that the WRC process is a long-term endeavour. Spectrum identified at WRC-19 will be in use for decades to come, so it is important to get involved and ensure the details are correct now, irrespective of when the first commercial 5G services will be launched.
WRC-19 runs from 28 October to 22 November, 2019. Here are the GSMA’s recommendations on how to succeed at the conference:
• Advocate positions as much as possible at national and regional levels before the conference.
• Familiarise yourself with the process and structure of the conference to make it easier to follow the agenda items.
• Know who you can ask for help on important issues.
• Keep track of who is on your side and, even more importantly, who is not, on each issue; getting to know the opposition and what can be offered is key.
• Have fall-back positions ready if the optimum outcome can’t be reached.
• Don’t assume that decisions are just rubber stamped by the plenary during the last couple of days.
• Manage energy levels — the WRC is a marathon, not a sprint: prioritisation is key to a successful outcome.
Learn more about the WRC process at: www.gsma.com/spectrum/wrc-intro 152 Spectrum Management and Licensing
Spectrum Licensing
Background Debate
Spectrum licensing is central to the What is the most effective way delivery of high-quality mobile broadband to license spectrum? services and long-term, heavy investment in networks. What conditions should be tied The amount of spectrum made available to spectrum-access rights? and the terms on which it is licensed fundamentally drive the cost, range and quality of mobile services. Are licensing rules the best way to ensure a healthy, well-functioning Mobile is a capital-intensive industry mobile sector, or should the requiring significant investment in development of the industry infrastructure. Governments’ spectrum be shaped predominantly by licensing policies — when supported by market forces? a stable, predictable and transparent regulatory regime — can dramatically raise the attractiveness of markets to investors.
Spectrum management for mobile telecommunications is complex, as governments release new spectrum in existing mobile bands; manage the renewal of licences coming to the end of their initial term; and release spectrum in new bands for mobile broadband services. Mobile Policy Handbook 153
Industry Position To the maximum practical extent, spectrum should be identified, allocated and Spectrum rights should be assigned licensed in alignment with internationally to the services and operators that can harmonised mobile spectrum bands to generate the greatest benefit to society enable international economies of scale, from the use of that spectrum. reduce cross-border interference and facilitate international services. Regulatory authorities should foster a transparent and stable licensing For new spectrum allocations, market- framework that prioritises exclusive based approaches to licensing, such as access rights, promotes a high quality of auctions, are the most efficient way to service and encourages investment. assign spectrum to the bidders that value the spectrum the most. Licensing authorities should publish a road map of the planned release of additional The primary goal in all awards should spectrum bands to maximise the benefits be to encourage the most efficient of spectrum use. The road map should use of spectrum through investment take a five- to ten-year view and include in widespread, high-quality networks. a comprehensive and reasonably detailed Efforts to use awards to raise excessive inventory of current use. revenues, such as through high auction reserve prices or annual fees, have been Restrictive licence terms and conditions linked to negative consumer outcomes limit operators’ abilities to use their through reduced network investment spectrum resources fully, and risk and increased prices. Instead, auction delaying investment in new services. reserves should be set conservatively In particular, service and technology to let the market determine the price restrictions in existing licences should and licence fees should be limited to be removed. New licences should be at recovering the administrative costs of least 15-20 years in length to encourage spectrum management. significant investment in networks, including in rural areas.
Resources: GSMA & CEG Report: Best Practice in Mobile Spectrum Licensing GSMA & NERA Report: Effective Spectrum Pricing — Supporting Better Quality and More Affordable Mobile Services GSMA Public Policy Position: Licence Renewal 154 Spectrum Management and Licensing
Spectrum Licence Renewal
Background Debate
Many of the original 2G spectrum licences Which approach to spectrum are coming up for renewal in the next few licence renewal will have the most years. National regulatory authorities must beneficial outcome for consumers determine how mobile operators’ spectrum and society? rights will be affected as licences approach the end of their initial term. Should spectrum licence holders The prospect of licence expiry creates presume they will have the option significant uncertainty for mobile operators. to renew when the licence reaches A transparent, predictable and coherent the end of its term, unless otherwise approach to renewal is therefore important, specified in the licence? enabling operators to make rational, long- term investment decisions. Should governments feel free to There is no standard approach to reshuffle spectrum allocations, relicensing spectrum. Each market needs to change bandwidths or alter licence be considered independently, with industry conditions on renewal? stakeholders involved at all stages of the decision process. Failure to effectively manage the process can delay investment in new services, potentially affecting mobile services for millions of consumers. Mobile Policy Handbook 155
Industry Position Should a government choose to reappraise the market structure at the It is essential that governments time of renewal, the priorities should and regulators implement a clear be to maintain service for consumers and timely process for the renewal and ensure network investments are of spectrum licences. not stranded. Governments should not discriminate in favour of, or against, new Maintaining mobile service for consumers market entrants, but establish a level is critical. To ensure this, the approach for playing field. licence renewal should be agreed at least three to four years before licence expiry. New licences should be granted for 15 to 20 years, at least, to give investors Governments and regulators should work adequate time to realise a reasonable on the presumption of licence renewal return on their investment. for the existing licence holder. Exceptions should only apply if there has been a Renewed mobile licences should be serious breach of licence conditions in technology and service neutral. advance of renewal.
Resources: GSMA Public Policy Position: Licence Renewal GSMA & CEG Report: Licensing to Support the Mobile Broadband Revolution 156 Spectrum Management and Licensing
Spectrum Trading
Background Debate
Spectrum trading is a mechanism by which Should spectrum-trading mobile network operators can transfer arrangements between operators spectrum-usage rights on a voluntary be allowed? commercial basis.
Trading spectrum-usage rights is a What role should regulators play relatively recent development. In Europe, in overseeing such arrangements? most countries that allow the practice have done so since 2002 or later, and each country has established different rules What regulatory procedures are governing the practice. required to ensure transparency and notification of voluntary Trading rules can facilitate the partial spectrum trading? transfer of a usage right, which could permit a licensee to use a specified frequency band at a particular location or for a certain duration. This may result in more intensive use of the limited spectrum. Mobile Policy Handbook 157
Industry Position It makes sense for governments to be notified of spectrum-trading agreements and Countries should have a regulatory to grant approval. Notification requirements framework that allows operators to preserve transparency, making it clear which engage in voluntary spectrum trading. entities hold spectrum-usage rights and ensuring that trading arrangements are not Spectrum trading creates increased flexibility anti-competitive. in business planning and ensures that spectrum does not lie fallow, but instead is Governments should implement used to deliver valuable services to citizens. appropriate and effective procedures for handling notification requests of spectrum- Spectrum-trading restrictions should only trading agreements. be applied when competitive or other compelling concerns are present.
Spectrum-trading agreements are governed by commercial law and subject to the rules applicable to such agreements. They may also be subject to assessment under competition law.
Resources: GSMA Public Policy Position: Spectrum Trading GSMA Response: RSPG Public Consultation on Secondary Trading of Rights to Use Spectrum CEPT & CEE Report: Description of Practices Relative to Trading of Spectrum Rights of Use 158 Spectrum Management and Licensing
Technology Neutrality and Change of Use
Background Debate
Technology neutrality is a policy approach Should governments set the that allows the use of any non-interfering technical parameters for a band’s technology in any frequency band. use or should the market decide?
In practice, this means that governments allocate and license spectrum for particular Should licence conditions restrict services (e.g., broadcasting, mobile, operators’ ability to deploy more satellite), but do not specify the underlying efficient technologies and adapt technology used (e.g., 3G, LTE or WiMAX). to market changes?
Many of the original mobile licences were issued for a specific technology, such as How is spectrum coexistence best GSM or CDMA, which restricts the ability managed to prevent interference of the licence holder to ‘refarm’ between services and operators the band using an alternative, more using different technologies? efficient technology.
Refarming refers to the repurposing of assigned frequency bands, such as those used for 2G mobile services (using GSM technology) for newer technologies, including third-generation (UMTS technology) and fourth-generation (LTE technology) mobile services.
Spectrum allocations for international mobile telecommunications (IMT) are technology neutral. IMT technologies — including GPRS, EDGE, UMTS, HSPA, LTE and WiMAX — are standardised for technical coexistence.
We know that the choice of the wrong standard can lock our economies into long periods of economic underperformance, while market-led solutions have consistently provided a much better environment for technology selection.
— Viviane Reding, European Commissioner, 4 December 2006 Mobile Policy Handbook 159
Industry Position Governments should amend technology specific licences to allow new technologies We support a licensing approach that to be deployed, enabling operators to allows any compatible, non-interfering serve more subscribers and provide each technology to be used in mobile subscriber with better, more innovative frequency bands. services per unit of bandwidth.
Adopting harmonised, regional band Enabling spectrum licence holders to plans for mobile ensures that interference change the underlying technology of their between services can be managed. service, known as refarming, generates Governments should allow operators to positive economic and social outcomes deploy any mobile technology that can and should be allowed. technically coexist within the international band plan.
Technology neutrality encourages innovation and promotes competition, allowing markets to determine which technologies succeed, to the benefit of consumers and society.
Resources: GSMA Public Policy Position: Change of Use of Spectrum GSMA & CEG Report: Licensing to Support the Broadband Revolution 160 Spectrum Management and Licensing Technology Neutrality and Change of Use
Deeper Dive
The 1800 MHz Band: A Global Refarming Success Story for LTE
The lack of truly global LTE frequency bands made it difficult to establish a wide range of low-cost devices for the first phase of 4G services. It also prevented widespread international roaming.
Because mobile devices can only support a limited number of frequency bands, a lack of harmonised bands means devices can only operate and be sold in a limited number of markets. This problem was highlighted when several early 4G-enabled Apple devices could not operate on some 4G networks around the world, as they did not support the right frequency bands.
A critical part of the solution has been the 1800 MHz band, which has traditionally been used for 2G GSM services. The band has historically been one of the key enablers of low-cost devices and international roaming, as it is one of the only bands to be harmonised worldwide.
In countries where regulators support technology neutral spectrum licences, operators have been able to refarm the 1800 MHz band for LTE services. The 1800 MHz band is now the most widely deployed LTE band globally, as well as the most widely supported in mobile devices. According to the Global Mobile Suppliers Association (GSA), the 1800 MHz band has the largest device ecosystem of any LTE band, with over 4,872 compatible user devices available as of April 2017.
Technology and Service Neutrality Incentivises the Adoption of New Technologies
Restricting the use of spectrum to particular technologies and services exacerbates the problem of scarcity of spectrum and prevents customers from gaining access to new services. Removing restrictions that limit the use of spectrum to particular services or technologies (beyond those needed to manage interference) enables a country to maximise the benefits from its spectrum resources on an ongoing basis. Operators’ ability to introduce new, more spectrally efficient, mobile technologies (including LTE, LTE Advanced and in future 5G) will be critical to meeting exponential growth in demand for mobile data services. A number of countries only allow for licences to be made technology neutral after the payment of fees. High charges for amending licences to make them technology and service neutral risks delaying the benefits of new technology reaching end users. Mobile Policy Handbook 161
Mapping 4G-LTE Deployments by Frequency Bands
610 operators worldwide now have live LTE networks, covering 196 countries. As many operators use multiple spectrum bands in their LTE networks, this equates to more than 1,120 individual deployments (including 4G fixed-wireless deployments)
Other bands
26%
2017 49%
25%
Digital Refarmed 2G/3G Dividend spectrum
The percentage of To date, the majority deployments using Digital of 4G-LTE deployments Dividend bands has fallen worldwide are running from 26 per cent in 2016 on refarmed spectrum to 25 per cent in 2017 in existing bands
Breakdown of bandsMHz
Digital Dividend700, 800
Refarmed 2G/3G 850, 900, 1500, 1800, 1900, 1700/2100, 2100
Other bands400, 2300, 2500, 2600, 3500, 3600, 3700, 5000
Source: GSMA Intelligence 162 Spectrum Management and Licensing
TV White Space
Background Debate
Today, several approaches are being What approach should regulators explored to help improve broadband take to TVWS? coverage in rural areas, including gaps that might exist between licensed spectrum users. The expression ‘white space’ is often What challenges do TVWS used to describe these gaps. They are networks face? parts of a spectrum band that are not used at a given time in a geographical location. What role can the technology play TV white space (TVWS) describes in helping connect everyone and spectrum in the television broadcasting everything? bands (470–790 MHz in Europe and 470– 698 MHz in the Americas, for example). Because of necessary geographical separation between television stations on the same and adjacent channels, there are varying amounts of unused spectrum.
The actual amount depends on the number of TV stations in a specific area and nearby areas. It is worth noting that commercially desirable geographic areas, such as major urban and suburban areas with high population and business densities, typically have little, if any, TV white space at all.
The over-eager pursuit of unlicensed sharing models cannot turn a blind eye to the model proven to deliver investment, innovation, and jobs — exclusive licensing. Industry and government alike must continue with the hard work of clearing and licensing underutilised government spectrum where feasible.
— Joan Marsh, Senior Vice President of Federal Regulatory, AT&T Mobile Policy Handbook 163
Industry Position The Digital Dividend is central to extending commercially proven mobile broadband TVWS networks make opportunistic services across whole countries, including use of white spaces to provide generally rural areas. small-scale services on a secondary and unlicensed basis. That means they aren’t The advantages of licensed mobile services allowed to interfere with TV signals, the over the secondary unlicensed approach primary users of the spectrum. Since of TVWS include: a more mature and the spectrum is shared, devices can developed ecosystem, better reliability, only operate if white space is available higher quality of service and increased and other TVWS devices aren’t using it coverage (due to higher power limits for already. As such, there is no guarantee licensed devices). users will be able to stay connected or connect at all. New regulatory and technical solutions are needed to connect everyone. TVWS For TVWS to work, careful avoidance of networks can be used to provide backhaul interference is needed with primary licensees for Wi-Fi hotspots in rural areas where there such as existing TV broadcasters and other is no cellular connectivity. TVWS devices and services in adjacent bands. Even in the most developed markets Still, they face challenges related to the this technology hasn’t yet been proven. availability of equipment, cost and quality of service. Public authorities must carefully The roll out of TVWS services should not consider this when making long-term be allowed to disrupt the licensing of the decisions about spectrum allocations. The Digital Dividend bands for mobile broadband same is true when considering how best to services (i.e., 800 MHz, 700 MHz and meet future broadband goals. increasingly the 600 MHz band, too).
Resources: GSMA Public Policy Position: TV White Space GSMA Europe response to Radio Spectrum Policy Group 2010 Work Programme AT&T Public Policy Blog: The Power of Licensed Spectrum 164 Consumer Protection
Consumer Protection
With the growing economic and social multilateral organisations and non- importance of mobile services, particularly governmental organisations to address the mobile internet, there is a corresponding concerns related to consumer protection by: need to ensure the five billion people currently connected via these services can • Defining, sharing and promoting global continue to enjoy them safely and securely. best practice. The challenge is providing this protection while also ensuring users have control over • Building and participating in cross- their privacy and personal data. sector coalitions.
It is essential for the mobile industry, • Educating consumers and businesses in therefore, to deliver safe and secure the safe use of mobile technologies and technologies, services and apps that inspire applications. trust and confidence. At the same time, there is a need to educate consumers about • Commissioning research that offers potential risks and raise awareness of the real-world insight and evidence. steps they can take to avoid those risks. The following pages provide a small The mobile industry takes consumer indication of the work undertaken by the protection seriously. The GSMA and mobile industry to ensure consumers its members play a leading role in developing continue to be appropriately protected and implementing appropriate safety and and informed as they enjoy the full range security solutions, technical standards and of benefits that mobile technology protocols. They also work with governments, makes possible. Mobile Policy Handbook 165 166 Consumer Protection
Collaborating on Solutions to Today's Challenges
Over the last three decades, mobile businesses in how to safely use mobile telecoms services have driven technologies and the applications they unprecedented growth and innovation support, in order to minimise illicit across the world. Throughout this behaviour such as online abuse, fraud period, each iteration of technology and breaches of privacy. has introduced new features, such as encryption and user identification Far more common are instances where validation, which have made mobile personal data is voluntarily shared in services increasingly secure and reduced order to access bona-fide commercial the potential for fraud, identity theft and services. Here the mobile industry faces a many other possible threats. different challenge. Technology and anti- trust considerations make it difficult (at The trust that underpins these services times impossible) for a mobile network and allows people across the world to operator to intervene in the exchanges communicate, trade, share ideas and between an online service provider and interact cannot be taken for granted. As the end user. Furthermore, very different more advanced and complex services standards of data protection apply are developed, so too the list of potential across jurisdictions. threats grows — and the scope for harm. This is why there is a need for Governments and policymakers naturally governments and the wider ecosystem want to protect citizens to the greatest to collaborate to ensure that practical extent they can. However, in such a solutions enable consumers to make complex environment, it is important that informed and effective choices, balancing any intervention be properly targeted. each individual’s desire for privacy There is always the potential for any with their desire to access interesting, action, however well intentioned, to result advertising-funded content and in either a disproportionate cost or a applications from a mobile device. restriction in access to the services they intended to protect. Some challenges to the provision of private and secure mobile services The mobile industry has made originate with governments and law considerable investments in technology enforcement agencies. Their legitimate to enable safe and secure use of its and increasingly sensitive mandate services. However, technology alone is to protect citizens has led them to not a sufficient response to the myriad sometimes seek wide-ranging powers threats and challenges that consumers to access and use personal data, or might face. The industry, supported by restrict access to certain services. This is the GSMA, has been highly active in a highly complex area with considerable programmes to educate consumers and differences between national jurisdictions, Mobile Policy Handbook 167
so the GSMA focuses on establishing non-governmental organisations, and common principles and educating all companies across the digital ecosystem, parties on best practices. as well as individual efforts by consumers themselves. The global nature of modern None of these multifaceted issues communication systems, from the can be ‘solved’ simply, or by one standards, infrastructure equipment, organisation or sector. To achieve the services and operators, means that one- best outcomes for mobile users and off, unilateral actions are not as effective society at large, commitment and action as a coordinated approach. is also needed from governments, law enforcement agencies, multilateral and
Personal privacy, security and data protection
Protecting Consumers from illegal activity and anti-social behaviour
Protecting Networks And Devices to keep communications secure Protecting Privacy and securing customer data
Protecting Public Safety and meeting legal obligations 168 Consumer Protection
Children and Mobile Technology
Background Mobile devices increasingly play a role in formal education and informal learning. Young children and teenagers are In developing and rural areas, as well as enthusiastic users of mobile technology. places where certain people — girls in Young people’s knowledge of mobile particular — are excluded from formal applications and platforms often surpasses education, mobile connectivity offers that of parents, guardians and teachers, new opportunities to learn. and children now use social networking services more than their parents. Like any tool, mobile devices can be used in ways that cause harm, so children For growing numbers of young people, require guidance in order to benefit from mobile technology is an increasingly mobile technologies safely and securely. important tool for communicating, accessing information, enjoying The mobile industry has taken active entertainment, learning, playing and steps in the area of safe and responsible being creative. As mobile technology use of mobile services by children. The becomes increasingly embedded into GSMA has played a leading role in self- everyday life, mobile phone operators can regulatory initiatives dealing with issues play an important role in protecting and such as parental controls, education promoting children’s rights. and awareness.
Mobiles can be key enablers to access: Debate • Skills for employment. What potential harm are children • Enhanced formal and informal education exposed to in the online environment? and learning.
• Information and services to aid in health, To what extent can technology well-being and support. protect young people from online threats, and what role does consumer • Improved social and civic engagement. awareness and education play?
• Opportunities to play and to be creative.
Our partnership with the GSMA, now in its fourth year, is one of our most productive and engaging. Children everywhere are ever more digital and mobile; GSMA’s leading-edge policy and practice on keeping children safe and productive in their ever-changing digital environments are vital in enhancing the knowledge and capacity of our member child helplines to prevent harm and respond to children and young people.
— Sheila Donovan, Executive Director, Child Helpline International Mobile Policy Handbook 169
Should governments require mobile workshops on the issue. These workshops operators, through regulation, to bring together policy makers, NGOs, law take steps to protect children from enforcement and industry, to facilitate the online risks? development of collaborative approaches to safe and responsible use of the internet.
How can all stakeholders navigate Through its mYouth programme, the GSMA tensions between differing child also works closely with Child Helpline rights in the digital world, such as International to foster collaboration the need to ensure tools designed between mobile operators and child to protect children do not unduly helplines in promoting children’s rights — infringe upon their privacy? in particular their right to be heard — and to work together on areas of mutual concern, such as safer internet.
Industry Position The GSMA takes part in international initiatives related to safeguarding children Mobile devices and services enhance the online, including contributing to the ITU’s lives of young people. This perspective Child Online Protection programme, and needs to be embraced, encouraged and actively engages with governments and better understood by all stakeholders to regulators looking to address this issue. ensure young people get the maximum Through its Capacity Building programme, benefits from mobile technology. for example, the GSMA helps policymakers better understand children’s use of Addressing safe and responsible use of technology, and discusses strategies for mobile by children and young people encouraging young people to become is best approached through multi- positive, engaged, responsible and resilient stakeholder efforts. users of digital technology.
Working closely with Unicef, the GSMA Young people are critical to the evolution of and its mobile operator members, as well the mobile sector as they represent the first as a range of other organisations including generation to have grown up in a connected, the International Centre for Missing and always-on world. They are future consumers Exploited Children (ICMEC) and INHOPE, and innovators who will deliver the next hold national and regional multi-stakeholder wave of innovation in mobile.
Resources: Unicef Guidelines for Industry on Child Online Protection website Unicef Tools for Companies in the ICT Sector website ICT Coalition website GSMA mYouth website GSMA and Child Helpline International: Internet Safety Resources GSMA Report: Children’s Use of Mobile Phones, An International Comparison 2015 GSMA Report: Children’s Use of Mobile Phones, A Special Report 2014 170 Consumer Protection Children and Mobile Technology
Deeper Dive
Collaboration in Action
Growing numbers of young people are leading digital lives, and when they encounter problems in their digital lives, many will reach out to child helplines for support and guidance.
And while many child helplines have already built up experience in this area, globally there is still a number of them who are in the early stages of development and would benefit from guidance on these issues. GSMA and Child Helpline International (CHI) wanted to extend their support to child helplines that fall into the latter category, by harnessing the experience of experts in this field from a range of stakeholder groups.
In May 2016, GSMA and Child Helpline International co-hosted an intensive one- day workshop. This session brought together expertise from the child helpline community, the Child Helpline International youth panel, mobile operators and other industry players, NGOs, child online safety experts — including a specialist child and adolescent psychiatrist — and law enforcement.
The workshop was used to kick-start the process for creating a series of high-level guides for child helpline counsellors and volunteers on nine of the more common or challenging digital issues that lead young people to seek advice from helplines. The nine guides were launched in November 2016 and cover: cyberbullying, discrimination and hate speech, grooming, illegal content, inappropriate content, privacy, sexual extortion, sexual harassment and unsolicited contact.
The guides were created with child helplines and their counsellors and volunteers in mind — in particular those for whom internet safety issues were relatively new or where counsellor guidance and training was still under development. Each guide was created using input from experts from a range of fields who then also reviewed and approved the content. The guides are purposely high level in order to accommodate differing local contexts, with each guide providing a definition and some examples of the issue, options for discussion with the child or a parent/carer, practical and technical advice, as well as any ‘red flags’ that counsellors should look out for. Mobile Policy Handbook 171
Deeper Dive
About the ICT Coalition
The ICT Coalition for the Safer Use of Connected Devices and Online Services by Children and Young People in the EU (www.ictcoalition.eu) is made up of 23 companies from across the information and communication technology (ICT) sector. Members of the ICT Coalition pledge to encourage the safe and responsible use of online services and internet devices among children and young people and to empower parents and carers to engage with and help protect their children in the digital world.
The principles are suitably high-level, enabling their application to evolve as technology and consumer propositions evolve, and to facilitate their adoption by a variety of companies and services. The ICT Coalition’s members include leading internet and online service providers such as Google and Facebook, device manufacturers, and mobile operators including Deutsche Telekom, KPN, Orange, Portugal Telecom, TDC, Telecom Italia, Telefónica, Telenor, Telia and Vodafone.
Members of the ICT Coalition are required to specify how their organisation will deliver on six principles related to online content, parental controls, dealing with abuse and misuse, child abuse and illegal contact, privacy and control, and education and awareness. 172 Consumer Protection
Counterfeit Mobile Devices
Background to hijack IMEI number ranges allocated to legitimate device manufacturers for use A counterfeit mobile device explicitly in their products and this makes it more infringes the trademark or design of an difficult to differentiate between authentic original or authentic ‘branded' product, and counterfeit products. even where there are slight variations to the established brand name. 1 According to figures from OECD
Due to their illicit nature, these mobile devices are typically shipped and sold Debate on black markets globally, by organised criminal networks. As a result, there is How can governments and other limited awareness among consumers and stakeholders best address the issue governments about the true scale and of counterfeit mobile devices? impact of counterfeit mobile devices.
It is estimated that almost one in five How can anti-counterfeit measures mobile devices may be counterfeit.1 be framed to also consider This has negative effects for consumers consumers who have unwittingly who risk lower quality, safety, security, purchased counterfeit devices? environmental health and privacy assurances. It also impacts governments who forego tax and duties and must contend with increased crime. Industry Industry Position players are also affected, as it can harm their trademarks and brands. The mobile industry supports the need for legal and product integrity in Some countries are considering the the device market and is increasingly implementation of national white lists concerned about the negative impact to combat counterfeit, smuggled and of counterfeit devices on consumer non-homologated devices. The purpose welfare and society in general. of white lists is to indicate which devices are permitted access to the networks. Although mobile operators and legitimate Operators implement device blocking vendors cannot stop the production capabilities and connect with the national and distribution of counterfeit devices, white list. multi-stakeholder collaboration can help combat the issue at the source. However, counterfeit mobile devices are In particular, national authorities should not easy to identify and block, given that take measures to stop the production many have IMEIs that appear legitimate. and exportation of counterfeit devices It is now commonplace for counterfeiters in their jurisdictions. Mobile Policy Handbook 173
GSMA has made its IMEI database available import verification systems and national to the World Customs Organization to device homologation systems exist these establish a global security gateway where should also be linked to the national white customs officers can verify the authenticity list. Some implementations propose that of mobile device identities online. customers register their details and devices National customs agencies are advised centrally on an ongoing basis. GSMA is to systematically make use of this facility opposed to central customer registrations as part of a rigorous set of measures to since they are unnecessary — the subscriber monitor the importation of mobile devices. identities associated with each device can The database is also made available to be established by the network operators Customs Agencies directly. without the need for consumer action.
The GSMA encourages operators to deploy Where national authorities are considering systems like Equipment Identity Registers introducing a white list system and the (EIR) and to connect to the GSMA’s IMEI pursuant blocking of devices, they should database. Using the GSMA’s global Type consider offering an amnesty to existing Allocation Code (TAC) list of all legitimate consumers who have non-compliant device identity number ranges, operators devices, as the loss to consumers and the can block devices with invalid IMEI. social, economic and security impact on the country of the immediate blocking of National authorities should study which huge quantities of devices is significant. factors, such as import duties and taxation In addition, it is recommended that the levels, contribute to the local demand funding model for such systems should for counterfeit devices. The potential not place a burden on the end users (i.e., of reduced tax levels to narrow the gap consumers and network operators) since between the cost of counterfeit/smuggled they are not the cause of the underlying and legitimate devices should be carefully issue. White list systems should not be considered with a view to making the black applied to roamers who might be denied market a less lucrative place in which service without cause. to trade.
Some countries are considering the implementation of national white lists to combat counterfeit, smuggled and non-homologated devices. White lists can be successful if they are linked with the GSMA TAC list for verification of the legitimate TAC/IMEI holders. If national
Resources: GSMA Device Check website OECD Report: Trade in Counterfeit ICT Goods The WCO Tool in the Fight Against Counterfeiting website 174 Consumer Protection
Cross-Border Flows of Data
Background However, their successful adoption is undermined by the implementation by The global digital economy depends governments of ‘data localisation’ (also on cross-border flows of data to deliver known as ‘data sovereignty’) rules that crucial social and economic benefits to impose local storage requirements or use individuals, businesses and governments. of local technology.2 Such localisation requirements can be found in a variety When data is allowed to flow freely across of sector- and subject-specific rules national borders, it enables organisations created for financial service providers, the to operate, innovate and to access public sector or to maintain professional solutions and support anywhere in the confidentiality. They are sometimes world. Enabling cross-border flows of data imposed by countries in the belief that can help organisations adopt data-driven supervisory authorities can more easily digital transformation strategies that scrutinise data that is stored locally.3 ultimately benefit individuals and society. 1 International Chamber of Commerce, Trade in the Digital Policies that inhibit the free flow of data Economy, 2016; ECIPE, The Cost of Data Localisation, 2014 through unjustified restrictions or local 2 Emory Law Journal: Anupam Chander and Uyen Le, Data data storage requirements can have an Nationalism, 2015; Hague Institute for Global Justice: adverse impact on consumers, businesses Jonah Force Hill, The Growth of Data Localization Post- Snowden, 2014 1 and the economy in general. 3 European Commission Paper: Building a European Data Economy Communication Cross-border flows of personal data are currently regulated by a number of international, regional and national Debate instruments and laws intended to protect individuals’ privacy, the local economy or How can industry, legislators, national security. regulators and civil society engage effectively to develop policy that While many of these instruments and supports cross-border flows laws adopt common privacy principles, of data? they do not create an interoperable regulatory framework that reflects the realities, challenges and potential of a How can data protection globally connected world. Emerging safeguards adequately address frameworks such as the Asia-Pacific the legitimate concerns of Economic Co-operation (APEC) Cross- governments that seek to impose Border Privacy Rules and the EU’s Binding localisation requirements? Corporate Rules allow organisations to transfer personal data generally under certain conditions. These frameworks contain accountability mechanisms and are based on internationally accepted data protection principles. Mobile Policy Handbook 175
Industry Position This encourages more effective protection for individuals than formalistic administrative Cross-border flows of data play an requirements, while helping to realise important role in innovation, competition potential social and economic benefits. Such and economic and social development. frameworks should be made interoperable Governments can facilitate cross-border across countries and regions to the greatest flows of data in a way that is consistent extent possible. This would stimulate with consumer privacy and local laws convergence between different approaches by supporting industry best practices to privacy, while promoting appropriate and frameworks for the movement of standards of data protection, allowing data and by working to make these accountable companies to build scalable and frameworks interoperable. consistent data privacy programmes.
Governments can also ensure that these Requirements for companies to use local data frameworks have strong accountability storage or technology create unnecessary mechanisms, and that the authorities can duplication and cost for companies and there play a role in overseeing/monitoring their is little evidence that such policies produce implementation. Governments should only tangible benefits for local economies or impose measures that restrict cross-border improved privacy protections for individuals. data flows if they are absolutely necessary to achieve a legitimate public policy objective. To the extent that governments need to The application of these measures should scrutinise data for official purposes, mobile be proportionate and not arbitrary or network operators would encourage them to discriminatory against foreign suppliers achieve this through existing lawful means and or services. appropriate intergovernmental mechanisms that do not restrict the flow of data. Mobile Network Operators welcome frameworks such as the APEC Cross-Border The GSMA and its members believe that Privacy Rules or the EU’s Binding Corporate cross-border data flows can be managed in Rules, which allow accountable organisations ways that safeguard the personal data and to transfer data globally, provided they privacy of individuals and remain committed meet certain criteria. Such mechanisms to working with stakeholders to ensure that are based on commonly recognised data restrictions are only implemented if they privacy principles and require organisations are necessary to achieve a legitimate public to adopt a comprehensive approach towards policy objective. data privacy.
Resources: United Nations Conference on Trade and Development (UNCTAD) Report: Data Protection Regulations and International Data Flows, 2016 White Paper: Christopher Kuner, Reality and Illusion in EU Data Transfer Regulation Post Schrems, 2016 International Chamber of Commerce Report: Trade in the Digital Economy, 2016 Business and Industry Advisory Committee to the OECD Report: The Flow of Data Across Borders — a BIAC Trade Committee Policy Perspective, 2016 176 Consumer Protection Cross-Border Flows of Data
Deeper Dive
National Data Privacy Regimes Should be Based on Shared, Core Principles and Provide Flexibility in Implementation
The challenge when regulating for data privacy, including cross-border flows of data, is to put in place measures that consistently provide consumers with confidence in existing and new services, without limiting service adoption or imposing significant additional costs on service providers.
To achieve this, it is crucial for privacy regulation to be based on shared core principles which, according to United Nations Conference on Trade and Development (UNCTAD) sit “at the heart of most national [privacy] laws and international regimes” as well as industry initiatives. This would allow companies to treat data consistently across their operations, innovate more rapidly, achieve larger scale and reduce costs. Consumers will also benefit from wider choice, improved quality and lower prices of services.
The 2009 Madrid Resolution on International Standards for the Protection of Personal Data and Privacy,1 for example, encourages consistent international protection of personal data and embraces privacy approaches from all five continents. As well as being designed “to ease the international flow of personal data, essential in a globalized world”, the resolution advocates six privacy principles to be adopted by policymakers:
Lawful and fair Purpose Proportionate
Personal data must Processing should be Processing should be be lawfully and fairly limited to specified proportionate and not processed purposes excessive
Quality Openness Accountable
Data held should be The processor should The processor should accurate be open regarding their be accountable for their activities activities
Similar principles are reflected repeatedly in laws and policy initiatives around the world such as the Council of Europe Convention 108, the OECD Guidelines, the EU General Data Protection Regulation, the US Federal Trade Commission’s Fair Information Practice Principles and the APEC Privacy Framework. The mobile industry has also adopted the GSMA Mobile Privacy Principles to give consumers confidence that their personal data is being properly protected, irrespective of service, device or country.
1 See: www.privacyconference2011.org/htmls/adoptedResolutions/2009_Madrid/2009_M1.pdf Mobile Policy Handbook 177
Localisation Rules Risk Undermining the Protection of Personal Data
There are several reasons countries seek to impose data localisation rules, including the belief that supervisory authorities can more easily scrutinise data that is stored locally. An additional common reason is the desire to protect individual privacy and ensure it meets the expectations and standards of that country. However, there are solutions and principles that can mitigate these risks without restricting data flows and the benefits that ensue.
Restrictions do not necessarily lead to better protection for personal data. For example, a fragmented approach results in inconsistent protection (e.g., differences across jurisdictions and sectors in what can be stored and for how long) and causes confusion impacting the secure management of personal data. Fragmentation through localisation may also create barriers that make investments in security protection prohibitively expensive. Collectively, this may undermine efforts by mobile network operators and other service providers to develop privacy-enhancing technologies and services to protect consumers.
A key concern is that cross-border flows of data are currently regulated by a patchwork of international, regional and national instruments and laws. This does not create an interoperable regulatory framework that reflects the realities of a globally connected world. As a result, there is a need for frameworks that permit cross-border flows of data to be made interoperable across countries and regions to the greatest extent possible. Interoperability creates greater legal certainty and predictability, allowing companies to build scalable and accountable data protection and privacy frameworks.
Interoperable frameworks would also help foster appropriate mechanisms to ensure data is managed in ways that safeguard the rights and interests of consumers and citizens. Frameworks that incorporate effective accountability mechanisms can help strengthen and protect important rights that help individuals and economies flourish. For example, efforts to make the APEC Cross Border Privacy Rules system and EU Binding Corporate Rules interoperable have the potential to benefit industry, digital trade and consumer interests and rights.
Flows of data across borders are important for societal and economic reasons. Without them, we frustrate not only economic growth, but also potential benefits to society of digital transformation. It is therefore incumbent on governments, regulators, industry and civil society groups to reject localisation measures and instead find ways to enable the flow of data while protecting individuals. 178 Consumer Protection
Electromagnetic Fields and Device Safety
Background Mobile phones use adaptive power control to transmit at the minimum power According to the World Health required for call quality. When coverage is Organization (WHO), there are no good, the RF output level may be similar to established health risks from the radio that of a home cordless phone. signals of mobile devices that comply with international safety recommendations. Some parents are concerned about whether mobile phone use or the However, research has shown a possible proximity of base stations to schools, increased risk of brain tumours among day-care centres or homes could pose long-term users of mobile phones. As a risk to children. National authorities a result, in May 2011, radio signals were in some countries have recommended classified as a possible human carcinogen precautionary restrictions on phone use by by the International Agency for Research younger children, while others, such as the on Cancer. Health authorities have advised US Food and Drug Administration (FDA), that given scientific uncertainty and the have concluded that current scientific lack of support from cancer trend data, evidence does not justify measures beyond this classification should be understood international safety guidelines. as meaning that more research is needed. They have also reminded mobile phone A comprehensive health-risk assessment users that they can take practical measures of radio signals, including those of mobile to reduce exposure, such as using a hands- phones, is being conducted by the WHO. free kit or text messaging. The conclusions are expected in 2018.
Mobile phone compliance is based on an assessment of the specific absorption rate (SAR), which is the amount of radio frequency (RF) energy absorbed by the body. Mobile Policy Handbook 179
Debate The GSMA believes parents should have access to accurate information so they Is there a scientific justification can make up their own mind about for mobile phone users to limit when and if their children should use their exposure? wireless technologies.
Concerned individuals can choose to limit Do radio signals from mobile their exposure by making shorter calls, phones present a risk to children? using text messaging or using hands-free devices that can be kept away from the head and body. Bluetooth earpieces use Where can people turn to very low radio power and reduce exposure. find the latest research and recommendations? The SAR is determined by the highest certified power level in laboratory conditions. However, the actual SAR level of the phone during use can be well below Industry Position this value. Differing SAR values do not mean differing levels of safety. Governments should adopt the international limit for SAR recommended by the WHO and require compliance declarations from device makers based on international technical standards.
We encourage governments to provide information and voluntary practical guidance to consumers and parents, based on the position of the WHO.
Resources: World Health Organization International EMF Project website International Agency for Research on Cancer Monograph on Radiofrequency Fields website GSMA EMF and Health website Mobile & Wireless Forum SAR Tick Programme website ITU EMF Guide website 180 Consumer Protection Electromagnetic Fields and Device Safety
Deeper Dive
Health Authorities on the Science
A large number of studies have been performed over the last two decades to assess whether mobile phones pose a potential health risk. To date, no adverse health effects have been established as being caused by mobile phone use. — WHO Fact Sheet 193, October 2014
The results of epidemiological studies in the period reviewed confirm that no higher risk of brain tumors is observed in cell phone users. This conclusion coincides with those of other systematic reviews and risk assessments in the same period by agencies and competent international committees in the evaluation of the effects of electromagnetic fields on health. — Scientific Advisory Committee on Radiofrequency and Health — CCARS (Spain), 2017
Altogether, it provides no or at most little indication of a risk for up to approximately 15 years of mobile phone use. No empirical data is available for longer use; however, cancer rates in Sweden and other countries do not show any increase that might be attributed to the massive mobile phone use that started in the beginning of this century. There are no indications from the few studies with cultured cells, that RF fields are capable of initiating a tumour. Many animal studies have been performed using a large spectrum of tumour types and long term, often lifelong, exposure. With very few exceptions, no effect of RF exposure on tumour growth and development has been found. — Swedish Radiation Safety Authority, 2016 Mobile Policy Handbook 181
The Committee considers it unlikely that exposure to radiofrequency fields, which is associated with the use of mobile telephones, causes cancer. The animal data indicates a possibility of a promoting effect, but it is not clear whether this could explain the increased risk for tumours in the brain, head and neck that has been observed in some epidemiological studies. The Committee feels it more likely that a combination of bias, confounding and chance might be an explanation for the epidemiological observations. — Health Council of the Netherlands, 2016
Personal Control Over Exposure
Mobile phone users who remain concerned about the possible risks of EMF can make small changes to reduce their exposure significantly. Mobile phones increase their transmission power when the signal is weak, when they are in motion and when they are in rural areas. To decrease exposure, callers may choose to use their mobile phone more when they are outside, in one spot and in urban areas. They may also choose to use a hands-free device or Bluetooth earpiece.
Using one’s mobile while
Outdoors Stationary In town
generates exposure levels up to
80% 50% 50% lower lower lower
compared to
In the IndoorsMoving countryside
Source: GSMA 182 Consumer Protection
Electromagnetic Fields and Health
Background Debate
Research into the safety of radio signals, Does using a mobile phone regularly, which has been conducted for more than or living near a base station, have 50 years, has led to the establishment any health implications? of human exposure standards, including reduction factors that provide protection against all established health risks. Are there benefits in adopting EMF limits for mobile networks The World Health Organization (WHO) set or devices? up the International EMF Project in 1996 to assess the health and environmental effects of exposure to electromagnetic What EMF exposure limits should fields (EMF) from all sources. The WHO be specified for base stations? reviews ongoing research and provides recommendations for further study to support health-risk assessments. Should there be particular restrictions to protect children, The strong consensus of expert groups pregnant women or other and public health agencies, such as potentially vulnerable groups? the WHO, is that no health risks have been established from exposure to the low-level radio signals used for mobile communications.
The WHO and the International Telecommunication Union (ITU) recommend that governments adopt the radio-frequency exposure limits developed by the International Commission on Non- Ionizing Radiation Protection (ICNIRP).
The WHO is currently conducting a risk assessment for radio frequency signals. The results are expected in 2018, including policy recommendations for governments. Mobile Policy Handbook 183
Industry Position Parents should have access to accurate information so they can decide when National authorities should implement and if their children should use mobile EMF-related policies based on phones. The current WHO position is that established science, in line with international safety guidelines protect international recommendations and everyone in the population with a large technical standards. safety factor, and that there is no scientific basis to restrict children’s use of phones Large differences between national limits and or the locations of base stations. international guidelines can cause confusion and increase public anxiety. Consistency is The mobile industry works with vital, and governments should: national and local governments to help address public concern about mobile • Base EMF-related policy on reliable communications. Adoption of evidence- information sources, including the WHO, based national policies concerning trusted international health authorities exposure limits and antenna siting, and expert scientists. public consultations and information can reassure citizens. • Set a national policy covering the siting of masts, balancing effective network roll Ongoing, high-quality research is out with consideration of public concerns. necessary to support health-risk assessments, develop safety standards • Accept mobile operators’ declarations of and provide information to inform policy compliance with international or national development. Studies should follow good radio frequency levels using technical laboratory practice for EMF research and standards from organisations such be governed by contracts that encourage as the International Electrotechnical open publication of findings in peer- Commission (IEC) and ITU. reviewed scientific literature.
• Actively communicate with the public, based on the positions of the WHO, to address concerns.
Resources: WHO International EMF Project website GSMA Report: Mobile Communications and Health GSMA Report: Arbitrary Radio Frequency Exposure Limits — Impact on 4G Network Deployment GSMA Report: LTE Technology and Health GSMA Report: Smart Meters — Compliance with Radio Frequency Exposure Standards GSMA EMF and Health website ITU EMF Guide website 184 Consumer Protection Electromagnetic Fields and Health
Deeper Dive
A Global Look at Mobile Network Exposure Limits
The World Health Organization (WHO) endorses the guidelines of the International Commission for Non-Ionizing Radiation Protection (ICNIRP) and encourages countries to adopt them. While many countries have adopted this recommendation, some have chosen to adopt other limits or additional measures regarding the siting of base stations.
This map shows the approach to radio frequency (RF) exposure limits countries have adopted for mobile communication antenna sites. Much of the world follows the ICNIRP 1998 guidelines or those of the US Federal Communications Commission.
E ective RF limit ICNIRP 1998
FFC 1996
Other
Unknown Mobile Policy Handbook 185
In some cases (e.g., China and Russia) historical limits have not been updated to reflect more recent scientific knowledge. In other cases, RF limits applicable to mobile networks may be the result of arbitrary reductions, as a political response to public concern.
Excluding countries or territories with unknown limits, 126 apply ICNIRP, 11 follow the FCC limits from 1996, and 36 have other limits. Although the map uses only one colour for the ‘other’ category, there are many differences between these countries in the limit values and their application.
E ective RF limit ICNIRP 1998
FFC 1996
Other
Unknown 186 Consumer Protection
eWaste
Background through their operations. In some cases, they have even had to take on 100 per cent of Electronic waste — also known as e-waste the operational and financial responsibility or waste electrical and electronic equipment for the management of their customers’ (WEEE) — is a type of waste generated e-waste, whereas in most other regions the when devices related to the Information and responsibility is shared among a range of Communications Technology (ICT) industry parties including equipment manufacturers, reach the end of their life. Parts and materials importers and distributors. that make up e-waste usually contain precious or high-value metals that can be In addition, operators have faced other recycled at the end of a device’s useful life. challenges such as a dearth of qualified However, they can also contain hazardous e-waste managers in some countries, materials that must be treated responsibly the high costs of e-waste transport and in compliance with environmental and storage, and restrictions (due to legislation. Some used electronic equipment the Basel Convention) on the export of may be suitable for re-use, perhaps after equipment to countries where it could repair and refurbishment. be treated appropriately.
As part of the ICT sector, mobile operators generate e-waste during periods of Debate technological renewal and also through the normal supply of products (such as routers, How should the responsibility for mobile phones and tablets) to customers. processing e-waste be shared out among a range of industry parties, Mobile operators around the world have including operators, equipment developed WEEE management programmes manufacturers, importers both as compliance measures to conform to and distributors? current legislation, and also in their desire to meet their own sustainability and corporate social responsibility goals. How is it possible to distinguish between e-waste and used electronic However, in some regions, such as Latin equipment destined for re-use? America, there is a lack of legal frameworks specifically covering e-waste management. Unfortunately, this also means there is a lack of clarity around the concept of extended producer responsibility (EPR).
Usually, EPR rules firmly establish the roles and responsibilities of producers, importers and distributors for equipment in the e-waste chain. The absence of clear rules means operators in Latin America are finding it difficult to manage the e-waste generated Mobile Policy Handbook 187
Industry Position • Environmental and telecommunications authorities should work together to The effective management of WEEE design, promote and implement policies, at a country and company level must standards, laws, regulations be based on specific regulatory and programmes for responsible frameworks that recognise the WEEE management. environmental risks that e-waste presents and also the potential for • Guidelines that recognise the principle efficient resource recovery. This is to of EPR should be created by relevant ensure there is no ambiguity among the environmental authorities and various parties who are responsible for developed into legal frameworks for e-waste management as to how they e-waste management. must act in order to conform to the agreed guidelines. • WEEE management programmes should include measures to promote Mobile operators have long recognised the recycling in order to extend the lifespan importance of WEEE management. of devices and material recovery. These need to explain the importance of these This is why, in regions such as Latin processes for the re-use of materials, America, they have actively sought to so they can in turn increase the draw attention to loopholes in the legal economic value of devices collected system and communicate the challenges for re-use or recycling. they have faced during the development of their WEEE management programmes. • Governments, manufacturers, importers, Moreover, they continue to look for ways distributors and WEEE management to collaborate with the environmental companies should work together to authorities in order to define effective legal create e-waste awareness campaigns frameworks that promote environmentally aimed at the general public. These responsible WEEE management. campaigns will help create a culture of WEEE recycling, foster buy-in With this in mind, they have come up with across all sectors of society and drive a number of proposals for regions where improved results when all the parties there is currently a lack of robust legal involved begin implementing WEEE frameworks in place: management campaigns.
Resources: GSMA & United Nations University Report: eWaste in Latin America — Statistical Analysis and Policy Recommendations Step Initiative website 188 Consumer Protection
Government Access
Background In response to public debate concerning the extent of government access to Mobile network operators are often subject mobile subscriber data, a number of major to a range of laws and/or licence conditions telecommunications providers (such as AT&T, that require them to support law enforcement Deutsche Telekom, Orange, Rogers, SaskTel, and security activities in countries where Sprint, T-Mobile, TekSavvy, TeliaSonera, they operate. These requirements vary from Telstra, Telus, Verizon, Vodafone and Wind country to country and have an impact on the Mobile) as well as internet companies (such privacy of mobile customers. as Apple, Amazon, Dropbox, Facebook, Google, LinkedIn, Microsoft, Pinterest, Where they exist, such laws and licence Snapchat, Tumblr, Twitter and Yahoo!) publish conditions typically require operators to retain ‘transparency reports’, which provide statistics data about their customers’ mobile service relating to government requests for disclosure use and disclose it, including customers’ of such data. personal data, to law enforcement and national security agencies on lawful demand. They may also require operators to have the Debate ability to intercept customer communications following lawful demand. What is the correct legal framework to achieve a balance between a Such laws provide a framework for the government’s obligation to ensure operation of law enforcement and security its law-enforcement and security service surveillance and guide mobile agencies can protect citizens, and the operators in their mandatory liaison with rights of those citizens to privacy? these services.
However, in some countries, there is a lack of Should all providers of communication clarity in the legal framework to regulate the services be subject to the same disclosure of data or lawful interception of interception, retention and customer communications. disclosure laws on a technology neutral basis? This creates challenges for industry in protecting the privacy of its customers’ information and their communications. Would further transparency about the number and nature of Legislation often lags behind technological the requests that governments developments. For example, it may be the make assist the debate, improve case that obligations apply only to established government accountability and telecommunications operators but not to bolster consumer confidence? more recent market entrants, such as those providing internet-based services, including Voice over IP (VoIP) services, video or instant messaging services. Mobile Policy Handbook 189
Industry Position Given the expanding range of communications services, the legal Governments should ensure they have framework should be technology neutral. a proportionate legal framework that clearly specifies the surveillance powers Governments should provide appropriate available to national law enforcement limitations of liability or indemnify and security agencies. telecommunications providers against legal claims brought in respect of Any interference with the right to privacy compliance with requests and obligations of telecommunications customers must for the retention, disclosure and be in accordance with the law. interception of communications and data.
The retention and disclosure of data and The costs of complying with all the interception of communications for laws covering the interception of law enforcement or security purposes communications and the retention and should take place only under a clear disclosure of data should be borne by legal framework and using the proper governments. Such costs and the basis for process and authorisation specified by their calculation should be agreed that framework. in advance.
There should be a legal process available The GSMA and its members are to telecommunications providers to supportive of initiatives that seek to challenge requests which they believe to increase government transparency be outside the scope of the relevant laws. and the publication by government of statistics related to requests for access The framework should be transparent, to customer data. proportionate, justified and compatible with human rights principles, including obligations under applicable international human rights conventions, such as the International Convention on Civil and Political Rights.
Resources: United Nations General Assembly Report: Guiding Principles on Business and Human Rights — Implementing the United Nations “Protect, Respect and Remedy” Framework Sixth Form Law: Malone v. The United Kingdom website High Court Judgement: Data Retention and Investigatory Powers Act 2014 (“DRIPA”) UK Investigatory Powers Review Report: A Question of Trust Office of the Privacy Commissioner of Canada website 190 Consumer Protection Government Access
Case Study
National Regulatory Approaches to Government Access
Increasingly, as witnessed in the UK, France, Germany and Australia, laws are being proposed that would require service providers to capture and retain communications data and grant the government systematic access to this information.
In the UK, communications service providers are required to separately retain a range of account and communications data and must ensure the data can be disclosed in a timely manner to UK law enforcement agencies, the security services and a number of prescribed public authorities under the UK Regulation of Investigatory Powers Act (RIPA). Prescribed authorities can also seek a warrant from the Secretary of State to intercept communications. The two main objectives of RIPA are to regulate the investigatory powers of the state and to set the legitimate expectations for citizens’ privacy. As RIPA is subject to oversight by the Surveillance Commissioner and the Interception Commissioner, citizens can seek redress for alleged unlawful access to their data or communications, and service providers operating in the UK can raise concerns about the validity of requests.
In April 2014, the European Court of Justice ruled that the EU Data Retention Directive is ‘invalid’ as it violated two basic rights — respect for private life and protection of personal data. The European Commission has emphasised that the decision of whether to introduce national data-retention laws is a national decision and consequently, the UK and a number of other countries in the European Union are reviewing their data-retention laws, which required communications service providers to store communications data for up to two years.
Meanwhile, in May 2015, the German government outlined plans for a new data-retention law which would require telecoms companies to retain ‘traffic data’ relevant to communications and hand them over (under certain conditions) to Germany’s law enforcement and security agencies. Germany’s privacy campaigners questioned whether the plans were constitutional adding that, in their opinion, the German government had not sufficiently outlined why the retention of the data is necessary.
In July 2015, the French Parliament approved a bill that allows intelligence agencies to tap phones and emails without seeking permission from a judge. The new law requires communications providers and internet service providers to hand over customers’ data upon request, if the relevant customers are linked to a ‘terrorist’ inquiry. Protesters from civil liberties groups claimed the bill would legalise intrusive surveillance methods without guarantees for individual freedom and privacy.
Australia’s new Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015 requires telecommunication service providers to retain for two years certain telecommunications metadata prescribed by regulations. This two-year retention period equals the maximum allowed under the EU’s earlier Data Retention Directive which the EU’s Court of Justice ruled as invalid. Mobile Policy Handbook 191
Deeper Dive
Trending Towards Transparency
Many of the largest communications and internet content providers (including AT&T, Deutsche Telekom, Telenor, Verizon, Vodafone, Apple, Dropbox, Facebook, Google, LinkedIn, Microsoft, Twitter and Yahoo!) publish periodic reports showing the types and/or volume of requests from governments for user information. Typically, these ‘transparency reports’ include how many of these requests resulted in the disclosure of customer information. These reports reveal not only the frequency of such requests, but some detail about the kind of information accessed — customer account information; metadata, which can reveal an individual’s location, interests or relationships; and the interception of communications. Although mobile operators often have no option but to comply with such requests, they are increasingly pressing for greater transparency about the nature and scale of government access.
At a time of growing public awareness and debate over government surveillance and privacy in many countries, this trend towards reporting the demands of governments for communications data (where it is legal to do so) has revealed the degree to which government intelligence and law enforcement agencies rely on such information.
The political debate is heated on both sides — those who argue that law- enforcement agencies require broad access in order to fight crime, and those who rail against perceived overzealous snooping and strive to maintain citizens’ rights to privacy in the digital age.
Like the internet content providers, mobile network operators may find themselves in a difficult position — bound to meet their obligations to provide lawful access, while assuring their customers that they protect private user information. Transparency reporting brings valid information to the public and policymakers, raising key questions about the balance between government access and privacy. 192 Consumer Protection
Illegal Content
Background Mobile operators are typically alerted to illegal content by national hotline Today, mobile networks not only offer organisations or law-enforcement traditional voice and messaging services, agencies. When content is reported, but also provide access to virtually all operators follow procedures according forms of digital content via the internet. to the relevant data protection, privacy In this respect, mobile operators offer and disclosure legislation. In the case the same service as any other internet of child sexual abuse content, mobile service provider (ISP). This means mobile operators use terms and conditions, notice networks are inevitably used, by some, to and takedown processes and reporting access illegal content, ranging from pirated mechanisms to keep their services free material that infringes intellectual property of this content. rights (IPR) to racist content or child sexual abuse material (child pornography). Debate Laws regarding illegal content vary considerably. Some content, such as child Should all types of illegal content sexual abuse material, is considered illegal — from IPR infringements to child around the world, while other content, sexual abuse content — be subject such as dialogue that calls for political to the same reporting and reform, is illegal in some countries while removal processes? being protected by ‘freedom of speech’ rights in others. What responsibilities should fall to Communications service providers, governments, law enforcement or including mobile network operators industry in the policing and removal and ISPs, are not usually liable for illegal of illegal content? content on their networks and services, provided they are not aware of its presence and follow certain rules (e.g., Should access to illegal content ‘notice and takedown’ processes to remove on the internet be blocked by ISPs or disable access to the illegal content as and mobile operators? soon as they are notified of its existence by the appropriate legal authority). Mobile Policy Handbook 193
Industry Position The mobile industry condemns the misuse of its services for sharing child sexual The mobile industry is committed to abuse content. The GSMA’s Mobile Alliance working with law enforcement agencies Against Child Sexual Abuse Content and appropriate authorities, and to provides leadership in this area and works having robust processes in place that proactively to combat the misuse of enable the swift removal or disabling mobile networks and services by criminals of confirmed instances of illegal content seeking to access or share child sexual hosted on their services. abuse content.
ISPs, including mobile operators, are not Regarding copyright infringement and qualified to decide what is and is not illegal piracy, the mobile industry recognises content, the scope of which is wide and the importance of proper compensation varies between countries. As such, they for rights holders and prevention of should not be expected to monitor and unauthorised distribution. judge third-party material, whether it is hosted on, or accessed through, their own network.
National governments decide what constitutes illegal content in their country; they should be open and transparent about which content is illegal before handing enforcement responsibility to hotlines, law-enforcement agencies and industry.
Resources: GSMA Reference Document: Mobile Alliance Against Child Sexual Abuse Content INTERPOL Crimes Against Children website International Centre for Missing & Exploited Children: Model Legislation & Global Review INHOPE website GSMA and Unicef: Notice and Takedown — Company Policies and Practices to Remove Online Child Sexual Abuse Material GSMA Guide: Hotlines — Responding to Reports of Illegal Online Content 194 Consumer Protection Illegal Content
Deeper Dive
Mobile Alliance Against Child Sexual Abuse Content
The Mobile Alliance Against Child Sexual Abuse Content was founded by an international group of mobile operators within the GSMA to work collectively on obstructing the use of the mobile environment by individuals or organisations wishing to consume or profit from child sexual abuse content.
Alliance members have made the commitment to:
• Implement technical mechanisms to restrict access to URLs identified by an appropriate, internationally recognised agency as hosting child sexual abuse content.
• Implement ‘notice and take-down’ processes to enable the removal of any child sexual abuse content posted on their own services.
• Support and promote hotlines or other mechanisms for customers to report child sexual abuse content discovered on the internet or on mobile content services.
Through a combination of technical measures, co-operation and information sharing, the Mobile Alliance is working to stem, and ultimately reverse, the growth of online child sexual abuse content around the world.
The Mobile Alliance also contributes to wider efforts to eradicate online child sexual abuse content by publishing guidance and toolkits for the benefit of the whole mobile industry. For example, it has produced a guide to establishing and managing a hotline in collaboration with INHOPE, the umbrella organisation for hotlines, and a guide to implementing notice and take-down processes with Unicef. It also collaborates with the European Financial Coalition and the Financial Coalition Against Child Pornography. Mobile Policy Handbook 195
Mobile Alliance Procedures To Stop Child Sexual Abuse Content
A report of suspected illegal child sexual abuse content is made by an internet user, directly or through their internet service provider (ISP) or mobile operator
National hotline or law enforcement agency (LEA) assesses the content
IllegalNot illegal
Traced To Host Country No Further Action
If the content is hosted in a di erent country, the report If the content is hosted is passed on to INHOPE or in the same country the relevant LEA as the hotline or LEA, notice and take down processes are instigated and the Some countries also add the content is removed URL to a ‘block list’ that allows ISPs and mobile operators to prevent access 196 Consumer Protection
Internet Governance
Background Debate
Internet governance involves a wide Who ‘owns’ the internet? array of activities related to the policy and procedures of the management of the internet. It encompasses legal Should certain countries or and regulatory issues such as privacy, organisations be allowed to have cybercrime, intellectual property rights and greater decision-making powers spam. It is also, for example, concerned than others? with technical issues related to network management and standards and economic issues such as taxation and internet How should a multi-stakeholder interconnection arrangements. model be applied to internet governance? Because mobile industry growth is tied to the evolution of internet-enabled services and devices, decisions about the use, management and regulation of the internet will affect mobile service providers and other industry players and their customers.
Internet governance requires the inputs of diverse stakeholders, relating to their interests and expertise in technical engineering, resource management, standards and policy issues, among others. Interested and relevant stakeholders will vary from issue to issue.
Global internet governance must be transparent and inclusive, ensuring full participation of governments, civil society, private sector and international organisations, so that the potential of the internet as a powerful tool for economic and social development can be fulfilled.
— Joint press release from the governments of the USA and Brazil, June 2015 Mobile Policy Handbook 197
Industry Position Some questions warrant a different approach at the local, national, regional The multi-stakeholder model for or global level. An effective and efficient internet governance and decision multi-stakeholder model ensures that making should be preserved and the stakeholders, within their respective allowed to evolve. roles, can participate in the consensus- building process for any specific issue. Internet governance should not be managed through a single institution Technical aspects related to the or mechanism, but be able to address management and development of a wide range of issues and challenges internet networks and architecture relevant to different stakeholders more should be addressed through flexibly than traditional government and standards bodies, the Internet intergovernmental mechanisms. Engineering Task Force (IETF), the Internet Architecture Board (IAB) and The internet should be secure, stable, other forums. trustworthy and interoperable, and no single institution or organisation can or Economic and transactional issues such should manage it. as internet interconnection charges are best left to commercial negotiation, Collaborative, diverse and inclusive consistent with commercial law and models of internet governance decision- regulatory regimes. making are requisite to participation by the appropriate stakeholders.
The decentralised development of the internet should continue, without being controlled by any particular business model or regulatory approach.
Resources: The Internet Governance Forum website World Summit on the Information Society WSIS+10 website The Internet Society Internet Governance website UNESCO Internet Governance website 198 Consumer Protection
Mandatory Registration of Prepaid SIMs
Background or refugees who lack the required identity documents; or it may lead to In many countries, customers of prepaid or the emergence of a black market for Pay-As-You-Go services can anonymously fraudulently registered or stolen SIM cards, activate their subscriber identity module based on the desire by some mobile users, (SIM) card by simply purchasing credit, as including criminals, to remain anonymous. formal user registration is not required.
More than 130 governments around the Debate world (49 of which are in Africa) have mandated prepaid SIM registration as part To what extent do the benefits of of efforts to mitigate security concerns and mandatory prepaid SIM registration address criminal and anti-social behaviour. outweigh the costs and risks?
Some governments — including the Czech Republic, the United Kingdom What factors should governments and the United States — have decided consider before mandating such against mandating registration of prepaid a policy? SIM users, concluding that the potential loopholes and implementation challenges outweigh the merits. Industry Position SIM registration can, however, allow many consumers to access value-added While registration of prepaid SIM card mobile and digital services that would users has the potential to offer valuable not otherwise be available to them as benefits to citizens, governments should unregistered users, including mobile money, not mandate it. e-health and e-government services. To date, there has been no empirical For SIM registration to lead to positive evidence that mandatory SIM registration outcomes for consumers, it must be directly leads to a reduction in crime. implemented in a pragmatic way Where a decision to mandate the that takes into account local market registration of prepaid SIM users has been circumstances, such as the ability of made, we recommend that governments mobile operators to verify customers’ take into account global best practices and identity documents. If the registration allow registration mechanisms that are requirements are disproportionate to the flexible, proportionate and relevant to the specific market, mandating the policy may specific market, including the level of official lead to implementation challenges and ID penetration in that market and the timing unforeseen consequences. For example, of any national identity roll-out plans. it could unintentionally exclude vulnerable and socially disadvantaged consumers Mobile Policy Handbook 199
If these conditions are met, the SIM • Provide certainty and clarity on registration exercise is more likely to registration requirements before be effective and lead to more accurate any implementation. customer databases. Furthermore, a robust customer verification and authentication • Allow and/or encourage the system can enable mobile operators to storage of electronic records and facilitate the creation of digital identity design administratively ‘light’ solutions, empowering customers to access registration processes. a variety of mobile and non-mobile services. • Allow and/or encourage the SIM- We urge governments who are considering registered customer to access other the introduction or revision of mandatory value-added mobile and digital services. SIM-registration to take the following steps prior to finalising their plans: • Support mobile operators in the implementation of SIM-registration • Consult, collaborate and communicate programmes by contributing to joint with mobile operators before, during communication activities and to their and after the implementation exercise. operational costs.
• Balance national security demands against the protection of citizens’ rights, particularly where governments mandate SIM registration for security reasons.
• Set realistic timescales for designing, testing and implementing registration processes.
Resources: GSMA Report: Mandatory Registration of Prepaid SIM Cards — Addressing Challenges Through Best Practice GSMA White Paper: Mandatory Registration of Prepaid SIM Card Users GSMA Report: Regulatory and Policy Trends Impacting Digital Identity and the Role of Mobile GSMA & World Bank Green Paper: Digital Identity — Towards Shared Principles for Public and Private Sector Co-operation London School of Economics Academic Paper: The Rise of African SIM Registration — Mobility, Identity, Surveillance & Resistance GSMA Mobile Connect website Simon Fraser University Academic Paper: Privacy Rights and Prepaid Communication Services 200 Consumer Protection
Mobile Device Theft
Background Industry Position
Unfortunately, there are criminals who seek The mobile industry has led numerous to gain from the trade of stolen mobile initiatives and made great strides in the phones, feeding a black market in handsets global fight against mobile device theft. obtained through mugging and street crime. Although the problem of device theft is not Policymakers in many countries are of the industry’s creation, the industry is part concerned about the incidence of mobile of the solution. When lost or stolen mobile phone theft, particularly when organised devices are rendered useless, they have no crime becomes involved in the bulk export value, removing all incentive for thieves. of stolen handsets to other markets. The GSMA encourages its member In 1996, the GSMA launched an initiative operators to deploy Equipment Identity to block stolen mobile phones, based on Registers (EIRs) on their networks to deny a shared database of the unique identifiers connectivity to any stolen device. Operators of handsets reported lost or stolen. should connect to the GSMA IMEI Database Using the International Mobile Equipment to ensure devices stolen from their Identifier (IMEI) of mobile phones, customers can be blocked on networks that the GSMA maintains a central list — known use the database. These black list solutions as the IMEI Database — of all phones have been in place on some networks for reported lost or stolen by mobile network many years. operators’ customers. To better enable a range of stakeholders The efficient blocking of stolen devices to combat device crime, GSMA provides on individual network Equipment Identity services that allow eligible parties such Registers (EIRs) depends on the secure as law enforcement, device traders and implementation of the IMEI on all mobile insurers to check the status of devices handsets. The world’s leading device against the GSMA IMEI Database. manufacturers have agreed to support a range of measures to strengthen IMEI security, IMEI blocking, when complimented with and progress is monitored by the GSMA. additional measures undertaken by, and in consultation with, a variety of stakeholders, can be the cornerstone of a highly effective Debate anti-theft campaign.
What can industry do to prevent mobile Consumers that have had their devices phone theft? stolen are particularly vulnerable to their personal data being used to commit a range of additional crimes. Industry, law What are the policy implications enforcement agencies and regulators of this rising trend? are recommended to provide anti-theft Mobile Policy Handbook 201
consumer education material on their A coherent regional information sharing websites reflecting the advice and approach involving all relevant stakeholders measures appropriate to their market. increases the effectiveness of national measures. GSMA advocates the sharing The concept of a ‘kill switch’ — a mechanism of stolen phone data internationally for allowing mobile device users to remotely blocking and status checking purposes disable their stolen device — has received and the GSMA IMEI database facilitates much attention. The GSMA supports this function. Only if regulation is revised to device-based anti-theft features and has allow stolen device information to be shared defined feature requirements that could across all countries will the deterrent have lead to a global solution. These high-level most impact. requirements have set a benchmark for anti-theft functionality, while allowing the Some national authorities have proposed industry to innovate. national white lists with ongoing centralised customer registration The deployment of persistent endpoint requirements to combat device theft. security solutions on mobile devices can These systems are unnecessary, as also help render devices useless and blacklisting systems are sufficient and less unattractive to criminals by preventing complex or expensive to implement. those devices from working on non-mobile networks, such as Wi-Fi, where EIR blocking In markets where a national white list would otherwise be ineffective. exists, lost and stolen device information can be exchanged between operators National authorities have a significant role through the GSMA IMEI database. GSMA to play in combatting this criminal activity. may connect the IMEI database blacklist It is critical that they engage constructively with a national device blacklisting system with the industry to ensure the distribution if the system is compliant with the GSMA of mobile devices through unauthorised requirement that the national system be channels is monitored and that action is owned and controlled by the local mobile taken against those involved in the theft or network operators. distribution of stolen devices.
Resources: GSMA & OAS Briefing Paper: Theft of Mobile Terminal Equipment GSMA IMEI Database website GSMA & EICTA Report: Security Principles Related to Handset Theft GSMA Reference Document: Anti-Theft Device Feature Requirements GSMA & EICTA Report: IMEI Security Weakness Reporting and Correction Process GSMA News: Mobile Phone Theft in Costa Rica GSMA Mobile Device Theft website 202 Consumer Protection
Mobile Security
Background The GSMA plays a key role in coordinating the industry response to security incidents Security attacks threaten all forms of ICT, and it has developed and launched a including mobile technologies. Consumer Coordinated Vulnerability Disclosure devices such as mobile handsets are (CVD) programme. The CVD initiative targeted for a variety of reasons, from allows the GSMA to work co-operatively changing the IMEI number of a mobile and constructively with a range of phone to re-enable it after theft, through stakeholders, including its operator to data extraction or the use of malware to members, security researchers and perform functions that have the potential industry suppliers, to ensure a timely and to cause harm to users. appropriate response to threats that could affect services, networks or devices. Mobile networks use encryption technologies to make it difficult for Additionally, GSMA’s Fraud and Security criminals to eavesdrop on calls or to Group acts as a centre of expertise to intercept data traffic. Legal barriers to the drive the industry’s management of fraud deployment of cryptographic technologies and security matters related to mobile have been reduced in recent years and technology, networks and services. The this has allowed mobile technologies to group seeks to maintain or increase the incorporate stronger and better protection of mobile operator technology algorithms and protocols, which remain and infrastructure, and customer identity, of significant interest to hackers and security and privacy, so that the industry’s security researchers. reputation stays strong and mobile operators remain trusted partners in the ecosystem. Recent years have seen a significant increase in interest in protocols such as SS7 and Diameter, which support Debate interconnection between network operators to support mobile services. How secure are mobile voice Security research has exposed a number and data technologies? of vulnerabilities in the interconnect technologies and GSMA has led a range of industry initiatives to ensure network Are the reported interconnect operators are aware of the risks and the security vulnerabilities fatally mitigation options open to them to protect detrimental to the privacy and their networks and their customers. security needs of mobile users?
The GSMA's work and the recommendations put forward have been Do emerging technologies and acknowledged by regulators around the services create new opportunities world as being sufficient to eliminate the for criminals to steal information, need for regulation on this issue. access user accounts or otherwise Mobile Policy Handbook 203
compromise the security and safety processing power and a high level of of mobile networks and those that technical expertise beyond the capability use them? of most people.
Reports of eavesdropping are not How significant is the threat of uncommon, but such attacks have not mobile malware, and what is being taken place on a wide scale, and UMTS done to mitigate the risks? and LTE networks are considerably better protected against eavesdropping risks than GSM networks. What will the 5G security landscape look like? The GSMA supports global security standards for emerging services and acknowledges the role that SIM-based secure elements have played in protecting Industry Position users and mobile services because the SIM card has proven itself to be resilient to The protection and privacy of customer attack. The Embedded UICC approach that communications is at the forefront of has been defined by GSMA, and is being operators’ concerns. rolled out by industry, inherits the best security properties from the SIM and is The mobile industry makes every designed to build on the protection levels reasonable effort to protect the privacy achieved in the past. and integrity of customer and network communications. The barriers to The GSMA constantly monitors the compromising mobile security are high and activities of hacker groups, as well as research into possible vulnerabilities has researchers, innovators and a range of generally been technically quite complex. industry stakeholders, to improve the security of communications networks. Our While no security technology is ability to learn and adapt can be seen in guaranteed to be unbreakable, practical the security improvements implemented attacks on mobile services are rare, as from one generation of mobile technology they would require considerable resources, to the next. including specialised equipment, computer
Resources: GSMA Security Accreditation Scheme website GSMA Security Advice for Mobile Phone Users website GSMA Coordinated Vulnerability Disclosure website 204 Consumer Protection
Number-Resource Misuse and Fraud
Background Debate
Many countries have serious concerns How can regulators, number-range about number-resource misuse, a holders and other industry players practice whereby calls never reach the collaborate to address this type destination indicated by the international of misuse and the resulting fraud? country code. Instead they are terminated prematurely, through carrier and/or content provider collusion, to revenue- generating content services without the knowledge of the ITU-T assigned number- range holder.
This abuse puts such calls outside any national regulatory controls on premium- rate and revenue-share call arrangements, and is a key contributing factor to International Revenue Share Fraud (IRSF) perpetrated against telephone networks and their customers. Perpetrators of IRSF are motivated to generate incoming traffic to their own services with no intention of paying the originating network for the calls. They then receive payment quickly, long before other parties within the settlement process.
Misuse also affects legitimate telephony traffic, as high-risk number ranges can be blocked as a side-effect. Mobile Policy Handbook 205
Industry Position The group believes that national regulators can help communications providers Number-resource misuse has a reduce the risk of number-resource misuse significant economic impact for by enforcing stricter management of many countries, so multi-stakeholder national numbering resources. Specifically, collaboration is key. regulators can:
The telecommunications fraud carried • Ensure national numbering plans out as a consequence of number- are easily available, accurate and resource misuse is one of the topics comprehensive. being addressed by the GSMA Fraud and Security Group, a global conduit • Implement stricter controls over the for best practice with respect to fraud assignment of national number ranges and security management for mobile to applicants and ensure the ranges are network operators. The Fraud and used for the purpose for which they Security Group’s main focus is to drive have been assigned. industry management of mobile fraud and security matters to protect operators • Implement stricter controls over leasing and consumers, and safeguard the mobile of number ranges by number-range industry’s trusted reputation. assignees to third parties.
The Fraud and Security Group supports The Fraud and Security Group shares European Union guidelines under abused number ranges among its which national regulators can instruct members and with other fraud- communications providers to withhold management industry bodies. It also works payment to downstream traffic partners with leading international transit carriers in cases of suspected fraud and misuse. to reduce the risk of fraud that arises as a result of number-resource misuse, and with law enforcement agencies to support criminal investigations in this area.
Resources: ITU-T Misuse of an E.164 International Numbering Resource website 206 Consumer Protection Number-Resource Misuse and Fraud
Facts and Figures
Top 10 Countries Whose Numbering Resources Are Being Abused
Republic United Croatia Tunisia of the Congo Liberia Kingdom (Brazzaville)
LatviaAlbania Morocco Lithuania Guyana Mobile Policy Handbook 207
Best Practice
Recommended Operator Controls to Reduce Exposure to Fraud from Number-Resource Misuse
Implement controls at the point of subscriber acquisition and controls to prevent account takeover.
Remove the conference or multi-call facility from a mobile connection unless specifically requested, as fraudsters can use this feature to establish up to six simultaneous calls.
Remove the ability to call forward to international destinations, particularly to countries whose numbering plans are commonly misused.
Utilise the GSMA high-risk ranges list, so that unusual call patterns to known fraudulent destinations can raise alarms or be blocked.
Ensure roaming usage reports received from other networks are monitored 24x7, preferably through an automated system.
Ensure that up-to-date tariffs, particularly for premium numbers, are applied within roaming agreements.
Implement the Barring of International Calls Except to Home Country (BOIEXH) function for new or high-risk subscriptions. 208 Consumer Protection
Privacy
Background Debate
Research shows that mobile customers are How can policymakers help create concerned about their privacy and want a privacy framework that supports simple and clear choices for controlling innovation in data use while how their private information is used. balancing the need for privacy They also want to know they can trust across borders, irrespective of companies with their data. A lack of trust the technology involved? can act as a barrier to growth in economies that are increasingly data driven. How is responsibility for ensuring One of the major challenges faced by the privacy across borders best growth of the mobile internet is that the distributed across the mobile security and privacy of people’s personal internet value chain? information is regulated by a patchwork of geographically-bound privacy regulations, while the mobile internet service is, by What role does self-regulation play definition, international. Furthermore, in a continually evolving technology in many jurisdictions the regulations environment? governing how customer data is collected, processed and stored vary considerably between market participants. For example, What should be done to allow data the rules governing how personal data to be used to support the social is treated by mobile operators may be good and meet pressing public different to those governing how it can be policy needs? used by internet players.
This misalignment between national privacy laws and global standard practices that have developed within the internet ecosystem makes it difficult for operators to provide customers with a consistent user experience. Equally, the misalignment may cause legal uncertainty for operators, which can deter investment and innovation. The inconsistent levels of protection also create risks that consumers might unwittingly provide easy access to their personal data, leaving them exposed to unwanted or undesirable outcomes such as identity theft and fraud. Mobile Policy Handbook 209
Industry Position Because of the high level of innovation in mobile services, legislation should Currently, the wide range of services focus on the overall risk to an individual’s available through mobile devices offers privacy, rather than attempting to legislate varying degrees of privacy protection. for specific types of data. For example, To give customers confidence that legislation must deal with the risk to an their personal data is being properly individual arising from a range of different protected — irrespective of service or data types and contexts, rather than device — a consistent level of protection focusing on individual data types. must be provided. The mobile industry should ensure privacy Mobile operators believe that customer risks are considered when designing new confidence and trust can only be fully apps and services, and develop solutions achieved when users feel their privacy is that provide consumers with simple ways appropriately protected. to understand their privacy choices and control their data. The necessary safeguards should derive from a combination of internationally The GSMA is committed to working with agreed approaches, national legislation stakeholders from across the mobile and industry action. Governments should industry to develop a consistent approach ensure legislation is technology neutral to privacy protection and promote trust in and that its rules are applied consistently mobile services to all players in the internet ecosystem.
Resources: GSMA Mobile and Privacy website GSMA Report: Safety, Privacy and Security Across the Mobile Ecosystem GSMA Report: Consumer Research Insights and Considerations for Policymakers GSMA Report: Mobile Privacy Principles — Promoting a User-Centric Privacy Framework for the Mobile Ecosystem GSMA Report: Privacy Design Guidelines for Mobile Application Development 210 Consumer Protection Privacy
Deeper Dive
Empowering Consumers to Choose
An ever-growing number of services available online are offered to consumers free of charge. These services rely on income from advertising, using the personal information of users to draw in potential advertisers.
While there is clearly a balance to be struck between users sharing some information in return for the use of free services, it is important that users are able to make clear and informed choices about this sharing.
Research conducted on behalf of the GSMA shows that 80 per cent of mobile internet users are worried about sharing their data when accessing such services, and that 65 per cent of users will first find out what information an app demands before installing it. In addition, more than 81 per cent want to be asked before information is shared with third parties.
The GSMA has developed nine Mobile Privacy Principles, as well as a set of Privacy Design Guidelines for Mobile Application Development. These principles and guidelines seek to strike a balance between protecting an individual’s privacy and ensuring they are treated fairly, while enabling organisations to achieve commercial, public policy and societal goals.
However, even where fully enacted, they can only go so far in providing consumers with the required level of choice, as mobile network operators have little influence over the privacy terms and conditions that online service providers use.
Nevertheless, there is a danger that new laws and regulations could have the unintended effect of creating ‘privacy fatigue’ among mobile users: the frustration felt by users who are constantly asked to decide on terms and conditions that they have not necessarily understood or even read. Mobile Policy Handbook 211
Best Practice
Mobile Privacy Principles
The GSMA has published a set of universal Mobile Privacy Principles, which describe how mobile consumers’ privacy should be respected and protected.
Openness, transparency and notice Responsible persons (e.g., application or service providers) shall be open and honest with users and will ensure users are provided with clear, prominent and timely information regarding their identity and data privacy practices.
Purpose and use The access, collection, sharing, disclosure and further use of personal information shall be limited to legitimate business purposes, such as providing applications or services as requested by users, or to otherwise meet legal obligations.
User choice and control Users shall be given opportunities to exercise meaningful choice and control over their personal information.
Data minimisation and retention Only the minimum personal information necessary to meet legitimate business purposes should be collected and otherwise accessed and used. Personal information must not be kept for longer than is necessary for those legitimate business purposes or to meet legal retention obligations.
Respect user rights Users should be provided with information about, and an easy means to exercise, their rights over the use of their personal information.
Security Personal information must be protected, using reasonable safeguards appropriate to the sensitivity of the information.
Education Users should be provided with information about privacy and security issues and ways to manage and protect their privacy.
Children and adolescents An application or service that is directed at children and adolescents should ensure that the collection, access and use of personal information is appropriate in all given circumstances and is compatible with national law. 212 Consumer Protection
Privacy and Big Data
Background Debate
Increases in computing power and falling How can mobile network operators prices of information technology systems and policymakers help society make it possible to process huge volumes realise the benefits of Big Data of data, from a variety of sources and in analytics in a privacy protective a range of formats, at greater speed than manner and in compliance with ever before. As a result, it is now possible applicable laws? to analyse all of the data from one or more large datasets, rather than relying on smaller samples of data. Importantly, How can the GSMA further trust this allows meaningful insights to be among stakeholders involved in the drawn, where appropriate, from mere collection and analytics of data? correlations in the data rather than having to identify causal connections. These capabilities are often referred to as Big Data analytics techniques. Industry Position
At the same time, the so-called Internet The mobile industry recognises the of Things (IoT) is equipping an ever- societal benefits that can result from increasing number of devices with sensors Big Data and wants to unlock the huge that collect and communicate data. potential of Big Data analytics in a way that respects well-established privacy Together, these capabilities represent a principles and fosters an environment sea change in society’s ability not only of trust. to create new products and services, but also solve some of the most pressing New laws are not necessary to address Big public policy needs of our time — from Data analytics and the Internet of Things road management in congested and (IoT). Rather, mobile network operators polluted urban areas to understanding and recognise that existing privacy principles preventing the spread of diseases. apply in these areas. Rules that restrict the legitimate use of data or metadata should Mobile network operators will increasingly be qualified and proportional to the risk of use the data they collect for Big Data privacy harm that consumers might suffer initiatives. Therefore, they have an if their data is misused. These rules should important role to play as responsible also be applied consistently across different stewards of that data and potentially as industry sectors and types of technology. facilitators in a future marketplace for access to this type of data. Mobile network operators are well-placed to understand the potential risks to individuals However, Big Data capabilities also give and groups from Big Data analytics and can rise to questions about security and implement measures to avoid or mitigate privacy and how these important concerns those risks. can be addressed. Mobile Policy Handbook 213
New insights derived from the data will • Reducing the risk of re-identification often give rise to new uses — or ‘purposes of individuals after data has been of processing’ — that had not been processed where this may raise considered or identified when the data privacy concerns. was initially collected. Accordingly, privacy frameworks must recognise this potential • Establishing clarity on responsibilities and make such uses possible. between parties when collaborating on Big Data analytics projects. Mobile network operators can address these types of challenges and increase • Incorporating ethical decision-making trust between industry stakeholders and into their governance models. consumers by: Equally, governments can ensure their • Building on previous privacy country and citizens gain the most benefit initiatives, such as the GSMA Mobile from the potential of Big Data by: Privacy Principles and the Privacy Design Guidelines for Mobile • Understanding how Big Data analytics Application Development. works and the context in which it takes place. • Finding innovative ways to provide meaningful choice, control and • Accommodating innovative approaches transparency to individuals about what to transparency and consent. data is collected and how it is used. For example, this could be addressed • Developing and adopting practical through user-friendly dashboards or industry guidelines and self-regulatory signals from IoT devices that are easily measures that seek to harness, rather discoverable by smartphones. than hinder, Big Data analytics.
• Thinking carefully about the impact on individuals (and groups) of the insights derived from Big Data and the actions or decisions that may be taken based on those insights.
Resources: GSMA Report: Mobile Privacy and Big Data Analytics GSMA Report: Mobile Privacy Principles — Promoting Consumer Privacy in the Mobile Ecosystem GSMA Privacy Design Guidelines for Mobile Applications website OECD Data-driven Innovation for Growth and Well-being website FTC Report: Big Data — A Tool for Inclusion or Exclusion? 214 Consumer Protection
Service Restriction Orders
Background Debate
From time to time, mobile network operators What factors and alternatives (MNOs) receive orders from government should governments consider authorities to restrict services on their before planning an SRO? networks. These service restriction orders (SROs) require operators to shut down or restrict access to their mobile network, a What tools and methods can be network service or an over-the-top service. used to avoid the need for an SRO Orders include blocking particular apps or to avoid negative impacts if an or content, restricting data bandwidth SRO is the only option? and degrading the quality of SMS or voice services. In some cases, operators would risk criminal sanctions or the loss of their licence if they were to disclose that they had been issued with an SRO.
SROs can have a number of serious consequences. For example, national security can be undermined if the powers are misused and public safety can be endangered if emergency services and citizens are not able to communicate with one another. Freedom of expression, freedom of assembly, freedom to conduct business and other human rights can also be impacted.
Furthermore, individuals and businesses who are not the target of the SRO may no longer be able to pay friends, suppliers or salaries. This can have a knock-on effect on credit and investment plans, ultimately damaging the country’s reputation for managing the economy and foreign investment, and discouraging donor countries from providing funds or other resources.
MNOs also suffer. Not only do they sustain financial losses due to the suspension of services, as well as damage to their reputation, but their local staff can also face pressure from authorities and possibly even retaliation from the public. Mobile Policy Handbook 215
Industry Position For example, rather than block an entire network or social media platform, it may The GSMA discourages the use of SROs. be possible for the SRO to target particular Governments should only resort to content or users. In any event, the SRO SROs in exceptional and pre-defined should always specify an end date. circumstances, and only if absolutely Independent oversight mechanisms should necessary and proportionate to achieve be established to ensure these principles a specified and legitimate aim that is are observed. consistent with internationally recognised human rights and relevant laws. Operators can play an important role by raising awareness among government In order to aid transparency, governments officials of the potential impact of SROs. should only issue SROs to operators in They can also be prepared to work swiftly writing, citing the legal basis and with a and efficiently to determine the legitimacy clear audit trail to the person authorising of the SRO once it has been received. This the order. They should inform citizens that will help establish whether it has been the service restriction has been ordered by approved by a judicial authority, whether the government and has been approved by it is valid and binding and whether there a judicial or other authority in accordance is opportunity for appeal, working with with administrative procedures laid down the government to limit the scope and in law. They should allow operators to impact of the order. Procedures can investigate the impacts on their networks include guidance on how local personnel and customers and to communicate freely are to deal with SROs and the use of with their customers about the order. standardised forms to quickly assess If it would undermine national security and escalate SROs to senior company to do so at the time when the service is representatives. restricted, citizens should be informed as soon as possible after the event. All decisions should first and foremost be made with the safety and security of the Governments should seek to avoid or operators’ customers, networks and staff mitigate the potentially harmful effects in mind, and with the aim of being able to of SROs by minimising the number of restore services as quickly as possible. demands, the geographic scope, the number of potentially affected individuals and businesses, the functional scope and the duration of the restriction.
Resources: Australian Government Draft Guidelines on Website Blocking Global Network Initiative and the Telecommunications Industry Dialogue Joint Statement: Service Restrictions Telia Company Form for Assessment and Escalation of SROs 216 Consumer Protection
Signal Inhibitors
Background Debate
Signal inhibitors, also known as jammers, Should governments or private are devices that generate interference organisations be allowed to use or otherwise intentionally disrupt signal inhibitors that interfere with communication services. In the case of the provision of mobile voice and mobile services, they interfere with the data services to consumers? communication between the mobile terminal and the base station. Their use by private individuals is banned in countries such as Should the marketing and sale Australia, the United Kingdom and the of signal inhibitors to private United States. individuals and organisations be prohibited? In some regions, such as Latin America, signal inhibitors are used to prevent the illegal use of mobile phones in specific locations, such as prisons. However, blocking the signal does not address the root cause of the problem — wireless devices illegally ending up in the hands of inmates who then use them for illegal purposes.
Moreover, signal inhibitors don’t prevent mobile devices from connecting to Wi-Fi networks, as they don’t affect the frequency bands used by Wi-Fi routers. As a result, signal inhibitors don’t block people from using over-the-top voice applications to make calls to phone networks.
Mobile network operators invest heavily to provide coverage and capacity through the installation of radio base stations. However, the indiscriminate use of signal inhibitors compromises these investments by causing extensive disruption to the operation of mobile networks, reducing coverage and leading to the deterioration of service for consumers. Mobile Policy Handbook 217
Industry Position via numbers such as 999, 911 or 112, and they can interfere with the operation of In some Latin American countries, such mobile-connected alarms or personal as Colombia, El Salvador, Guatemala health devices. and Honduras, governments are promoting the deployment of signal The industry’s position is that signal inhibitors to limit the use of mobile inhibitors should only be used as a last services in prisons. The GSMA and its resort and only deployed in coordination members are committed to working with operators. This coordination must with governments to use technology continue for the total duration of the as an aid for keeping mobile phones deployment of the devices — from out of sensitive areas, as well as co- installation through to deactivation — to operating on efforts to detect, track and ensure that interference is minimised in prevent the use of smuggled devices. adjacent areas and legitimate mobile phone users are not affected. However, it is vital that a long-term, practical solution is found that doesn’t Furthermore, to protect the public interest negatively impact legitimate users, nor and safeguard the delivery of mobile affect the substantial investments that services, regulatory authorities should ban mobile operators have made to improve the use of signal inhibitors by private entities their coverage. and establish sanctions for private entities that use or commercialise them without The nature of radio signals makes it virtually permission from relevant authorities. The impossible to ensure that the interference import and sale of inhibitors or jammers generated by inhibitors is confined, for must be restricted to those considered example, within the walls of a building. qualified and authorised to do so and their Consequently, the interference caused by operation must be authorised by the national signal inhibitors affects citizens, services telecommunications regulator. and public safety. It restricts network coverage and has a negative effect on the Nevertheless, strengthening security to quality of services delivered to mobile users. prevent wireless devices being smuggled Furthermore, inhibitors cause problems for into sensitive areas, such as prisons, is the other critical services that rely on mobile most effective measure against the illegal communications. For example, during an use of mobile devices in these areas, as it emergency they could limit the ability of would not affect the rights of legitimate mobile users to contact emergency services users of mobile services.
Resources: GSMA Public Policy Position: Signal Inhibitors in Latin America GSMA Report: Safety, Privacy and Security Across the Mobile Ecosystem 218 Capacity Building
GSMA Capacity Building
The GSMA Capacity Building programme offers a range of free training courses that help keep policymakers and regulators informed of current industry trends and how they affect the delivery of mobile services in countries around the world.
By emphasising real-world examples of regulatory good practice from different regions, the GSMA’s courses help students understand the implications of different policy and regulatory approaches and the impact they have on the mobile services delivered to their countries’ citizens.
Our courses are offered in English, French and Spanish, and are suitable for professionals at any stage of their career. Available both as face-to-face and online training, they provide policymakers and regulators with maximum flexibility in how they study.
Courses are packed with practical information and offer key insights into the most pressing issues faced by regulatory authorities worldwide. They are developed and taught by industry experts and regularly updated with the latest data and case studies from around the world. Mobile Policy Handbook 219 220 Capacity Building
The GSMA closely analyses policy and regulatory developments related to mobile telecommunications and ICT, as well as the effects they have worldwide. Using this knowledge, the Capacity Building programme’s in-house experts have created a broad range of high-quality training courses that highlight real-world examples of policy and regulatory good practice.
Our policy experts come from a range of backgrounds — including telecoms, law and financial services — and many hold advanced academic qualifications. Using their extensive knowledge, alongside practical case studies, they deliver engaging and interactive courses that are packed with the latest information.
The Capacity Building programme has so far trained students from over 140 countries around the world, providing insights into the latest industry, policy and regulatory thinking. This helps local policymakers and regulators positively shape the development and reach of mobile services in their country.
To provide students with maximum flexibility in how they study, we offer our courses both face-to-face and online. Our face-to-face courses are between one and three days long, while our online courses last between three and six weeks.
To learn more about GSMA Capacity Building or to register for an upcoming course, visit our eLearning portal:
www.gsmatraining.com
"The GSMA has contributed towards enriching the commission's pool of knowledge and deepened its level of expertise on diverse issues within the ICT ecosystem."
Prof. U.G. Danbatta, Executive Vice Chairman, Nigerian Communications Commission, August 2017 Mobile Policy Handbook 221
How We Deliver Our Training
Via local partners The GSMA principally delivers its courses through a range of strategic partnerships with academic institutions, development organisations, regulatory bodies and training specialists. This ensures we have the flexibility to deliver courses at a location near you.
On-Site If your organisation or department has a sufficiently large number of staff that could benefit from our training, we can deliver our courses on-site. This allows your employees to receive their training at the same place where they practice their skills and reduces or eliminates travel and accommodation expenses.
Online All of our courses are available via our online portal, placing students in control of their own learning. Using this platform, students are able to study our courses anywhere in the world, progressing at their own pace and scheduling coursework around work and family life.
Courses
5G — The Path to the Next Generation Advanced Spectrum Management for Mobile Telecommunications Children and Mobile Technology Competition Policy in the Digital Age Disaster Preparedness and Response Internet of Things Leveraging Mobile to Achieve SDG Targets Mobile for Socio-Economic Development Mobile Money for Financial Inclusion Mobile Sector Taxation Mobile Technology, the Environment and Climate Change Principles of Internet Governance Principles of Mobile Privacy Radio Signals and Health Unlocking Rural Mobile Coverage Women and Mobile: Bridging the Gender Gap 222 Appendix
GSMA Intelligence
GSMA Intelligence is an extensive and growing resource for GSMA members, associate members and other organisations interested in understanding the mobile industry. Through industry data collection and aggregation, market research and analysis, GSMA Intelligence provides a valuable view of the mobile industry around the globe.
Global coverage
GSMA Intelligence publishes data and insights spanning 237 countries, more than 1,400 mobile network operators and over 1,200 mobile virtual network operators (MVNOs). Comprising approximately 26 million individual data points, GSMA Intelligence combines historical and forecast data from the beginnings of the industry in 1979 forward to a five- year outlook. New data is added every day.
Numerous data types
The data includes metrics on mobile subscribers and connections, operational and financial data, and socio-economic measures that complement the core data sets. Primary research conducted by the GSMA adds insight into more than 4,400 network deployments to date. White papers and reports from across the GSMA and weekly bulletins are also available as part of the service.
Powerful data tools
Information in GSMA Intelligence is made easy to use by a range of data-selection tools: multifaceted search, rankings, filters, dashboards, a real-time data and news feed, as well as the ability to export data into Excel, or graphs and charts into presentations.
https://gsmaintelligence.com [email protected] Mobile Policy Handbook 223
Global Market Source: GSMA
Global SIM connections excluding cellular M2M 8.8bn
1.83%
7.7bn CAGR connections
2017 2025
Mobile broadband growth 2025 8.1bn
connections 7.17%
2017 4.6bn CAGR
Unique subscribers 5.8bn 5.0bn
subscribers
2017 2025 CAGR 1.81%
penetration
63.0% 71.1%
LTE networks count (includes fixed-wireless) 814 networks Total live and planned 211 countries 626 networks
2017
197 countries
CAGR: compound annual growth rate 224 Appendix
Unique subscriber penetration by region Source: GSMA Intelligence
The global unique subscriber base grew by 3.3 per cent during 2017: growth is forecast to continue, but at a slower rate of 1.8 per cent out to 2025. However, this growth is far from uniform across the regions of the world. Growth is now largely coming from developing markets, which are forecast to add over 712 million subscribers over the next six years, compared to only 67 million new additions in developed markets over the same period.
Unique subscriber penetration rates vary significantly across regions. Europe has the highest penetration rate on average, followed by North America and then the Commonwealth of Independent States (CIS). Sub-Saharan Africa had the lowest penetration rate at the end of 2017 at 48 per cent of the population, despite having seen the fastest subscriber growth of any region over the past decade.
A Unique subscriber penetration by region B Smartphone adoption by region
66.0% 58.0% 71.8% 76.0% Asia Pacific Asia Pacific
78.0% 55.0% 79.9% 73.0% CIS CIS
85.1% 70.0% 87.5% 80.0% Europe Europe
71.4% 61.0% 77.5% 76.0% Latin America Latin America
61.9% 52.0% 67.4% 74.0% Middle East and North Africa Middle East and North Africa
83.6% 82.0% 85.6% 84.0% Northern America Northern America
48.0% 32.0% 53.1% 64.0% Sub-Saharan Africa Sub-Saharan Africa
2017 2025 Mobile Policy Handbook 225
Mobile operator group global ranking by connections Q2 2017 Source: GSMA Intelligence, company reports
China Mobile 8.6
Vodafone Group 4.7
Bharti Airtel Group 3.8
China Unicom 2.7
Telefónica Group 2.6
América Móvil Group 2.5
China Telecom 2.3
Telenor Group 2.2
Orange Group 2.0
Idea Cellular 2.0
MTN Group 1.8
Telkomsel 1.7 (Telkom Indonesia)
VEON Group 1.6
Deutsche Telekom Group 1.5
Ooredoo Group 1.5
Axiata Group 1.3
Verizon Wireless 1.2
AT&T Group 1.2
Etisalat Group 1.2
Sistema Group 1.0
0100 200300 400500 600700 800900
Mobile connections (hundreds of millions) 226 Appendix
Global connection trends Source: GSMA Intelligence
10bn Total connections (excluding cellular M2M) 8bn
6bn
Unique subscribers 4bn
Mobile broadband connections 2bn
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
5G connections 2025 (in millions) % of total connections
392.3 297.8 211.6 190.9 13.7% 19% 87.9 36.6
ChinaEuropeUSJapan S KoreaRest 100% 2025
% of population covered by 5G networks 100% 2025
41%433%572% 82%15% 29% 0% 3%
Global Asia Europe Northern Latin Middle East and CIS Sub-Saharan Pacific America America North Africa Africa
Number of 5G connections (in billions) 2025 1.22 2024 0.94 2023 0.61 2022 0.32 2021 0.12 2020 0.02 2019 0.0 Mobile Policy Handbook 227
Financial Data
GSMA Intelligence forecasts that between 2017 and 2020, mobile operators will grow revenues by a CAGR of 1.5 per cent to reach $1.11 trillion. Slowing subscriber growth, coupled with declining levels of ARPU are the prime factors driving this trend.
Between 2017 and 2020, mobile operators across the world will spend $673 billion on capex, compared to $772 billion over the preceding four years. The key reason for the disparity is the large decline in capex in China following the completion of 4G rollout in the country; the combined annual capex for Chinese operators during 2016 was almost $18 billion lower than the annual average between 2013 and 2015.
$1,039 $1,058 $1,065 $1,089 $1,102 $1,113
2015 2016 2017 2018 2019 2020 Global mobile revenues ($bn)
$9.55$9.41 $9.19$8.97 $8.79$8.65
2015 2016 2017 2018 2019 2020 Global mobile average revenue per user (ARPU)
$202 $178 $172 $167 $166 $166
2015 2016 2017 2018 2019 2020 Mobile capex ($bn)
19%17% 16%15% 15%15%
2015 2016 2017 2018 2019 2020 Capex to sales ratio 228 Appendix
Spectrum auctioned across regions in 2012-2017 by bands
100 No. of auctions
0 600 700800 850 900 1700/ 180019002100230025002600 3500 3700 2100 AP CIS Europe LatAm MENA NA SSA
Share of LTE deployments by frequency band, by region (Aug 2017) Source: GSMA Intelligence
Bands 00 0 0 0 0 0 0 00 00 17 00 00 00 000 10 (MHz) 45 70 80 85 90 15 1800 19 2100 2300 2500 26 35 3600 37 5 /2
AP CIS Europe LatAm MENA NA SSA
< 10% of LTE deployments between 10-20% > 20%
Frequency Bands used for LTE (Aug 2017)
The top 7 bands account for 80% of LTE usage 300 s
or 200 at band
e 150 per th f o g 100 .o usin No 50 0 ) ) 1) S ) ) ) ) ) 3) 7) 17 9) d d 20 , d 30 d 8) 28 25 38 ,1 hers d 14 AW d d 2, d 42 d 18 , 5, Ot (ban (ban 13 (ban (ban z z (ban , z (ban z (ban (ban (ban z 12 0 MH GH MH MH (bands 00 6 MH 0 z (bands 2. 0 2300 T 70 35 2500 2100 90 MH 1800 80 (bands AP 850 z 00 MH 19 0 70 Mobile Policy Handbook 229
mmWave bands that will be used for initial 5G deployments
Region Band (GHz)
US 54-71
China/Japan/South Korea + US 39
US 37
China/Japan/South Korea + US 28
EU 26
Amount of MHz licensed for mobile use around the world (Aug 2017)
0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600
Afghanistan Bulgaria Albania Burkina Faso Algeria Cambodia Angola Cameroon Argentina Canada Australia Chad Austria Chile Azerbaijan China Bahrain Colombia Bangladesh Congo Belarus Congo, Dem. Rep. Belgium Costa Rica Belize Cote d'Ivoire Benin Croatia Bhutan Cyprus Bolivia Czech Rep. Bosnia and Herzegovina Denmark Botswana Dominican Rep. Brazil Ecuador Brunei Darussalam Egypt 230 Appendix
Amount of MHz licensed for mobile use around the world (cont.)
0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600
El Salvador Kenya Estonia Korea, South Ethiopia Kuwait Fiji Kyrgyzstan Finland Laos France Latvia French Guiana Lebanon Gabon Lesotho Gambia Liberia Georgia Lithuania Germany Luxembourg Ghana Macedonia Greece Madagascar Guatemala Malawi Guinea Malaysia Honduras Mali Hong Kong Malta Hungary Mauritania Iceland Mauritius India Mexico Indonesia Moldova Iran Mongolia Iraq Montenegro Ireland Morocco Israel Mozambique Italy Myanmar Jamaica Namibia Japan Nepal Jordan Netherlands Kazakhstan New Zealand Mobile Policy Handbook 231
0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600
Nicaragua Spain Niger Sri Lanka Nigeria Sudan Norway Swaziland Oman Sweden Pakistan Switzerland Panama Tanzania Papua New Thailand Guinea Togo Paraguay Trinidad and Peru Tobago Philippines Tunisia Poland Turkey Portugal Uganda Qatar Ukraine Romania United Arab Emirates Russian Federation United Kingdom Rwanda United States Saint Lucia of America Saudi Arabia Uruguay Senegal Uzbekistan Serbia Venezuela Sierra Leone Vietnam Singapore Yemen Slovakia Zambia Slovenia Zimbabwe Solomon Islands South Africa
Amount of spectrum in some countries was estimated by GSMA Intelligence 232 Appendix
Global LTE frequency bands
Band Number Type Mhz Name 1 FDD 2100 IMT Core Band 2 FDD 1900 PCS 1900 3 FDD 1800 1800 4 FDD 1700 AWS 5 FDD 850 850 7 FDD 2600 IMT-Extension 8 FDD 900 E-GSM 9 FDD 1800 Japan UMTS 1700 / Japan DCS 10 FDD 1700 Extended AWS blocks A-I 11 FDD 1500 Lower PDC 12 FDD 700 Lower SMH blocks A/B/C 13 FDD 700 Upper SMH block C 14 FDD 700 Upper SMH block D 17 FDD 700 Lower SMH blocks B/C 18 FDD 850 Japan lower 800 19 FDD 850 Japan upper 800 20 FDD 800 EU Digital Dividend 21 FDD 1500 Upper PDC 22 FDD 3500 FDD 3500 23 FDD 2000 S-Band (AWS-4) 24 FDD 1600 L-Band (US) 25 FDD 1900 Extended PCS blocks A-G 26 FDD 850 Extended CLR 27 FDD 850 SMR 28 FDD 700 APT 29 FDD* 700 Lower SMH blocks D/E 30 FDD 2300 WCS blocks A/B 31 FDD 450 LTE 450 Brazil 32 FDD* 1500 L-Band (EU) 33 TDD 2100 TDD 2000 Lower 34 TDD 2100 TDD 2000 Upper 37 TDD 1900 PCS Center Gap 38 TDD 2600 IMT Extension Gap 39 TDD 1900 China TDD 1900 Mobile Policy Handbook 233
Uplink Downlink Regions 1920 – 1980 2110 – 2170 Global except N America 1850 – 1910 1930 – 1990 Americas, Asia 1710 – 1785 1805 – 1880 Global except Americas 1710 – 1755 2110 – 2155 Americas 824 – 849 869 – 894 Americas, APAC 2500 – 2570 2620 – 2690 Global except N America 880 – 915 925 – 960 Global except N America 1749.9 – 1784.9 1844.9 – 1879.9 Japan 1710 – 1770 2110 – 2170 Americas 1427.9 – 1447.9 1475.9 – 1495.9 Japan 699 – 716 729 – 746 N America 777 – 787 746 – 756 N America 788 – 798 758 – 768 N America 704 – 716 734 – 746 N America 815 – 830 860 – 875 Japan 830 – 845 875 – 890 Japan 832 – 862 791 – 821 Europe, Middle East, Africa 1447.9 – 1462.9 1495.9 – 1510.9 Japan 3410 – 3490 3510 – 3590 n/a 2000 – 2020 2180 – 2200 N America 1626.5 – 1660.5 1525 – 1559 n/a 1850 – 1915 1930 – 1995 N America 814 – 849 859 – 894 N America 807 – 824 852 – 869 N America 703 – 748 758 – 803 Latin America, APAC N/A 717 – 728 N America 2305 – 2315 2350 – 2360 N America 452.5 – 457.5 462.5 – 467.5 Brazil N/A 1452 – 1496 Europe 1900 – 1920 Global except N America 2010 – 2025 Global except N America 1910 – 1930 Global (certain countries) 2570 – 2620 Global except N America 1880 – 1920 China 234 Appendix
Global LTE frequency bands (cont.)
Band Number Type Mhz Name 40 TDD 2300 TDD 2300 41 TDD 2500 BRS / EBS 42 TDD 3500 C-band 43 TDD 3700 C-band 44 TDD 700 APT 45 TDD 1500 L-Band (China) 46 TDD 5200 NII 47 TDD V2X 48 TDD US CBRS 3500 65 FDD 2100 Extended IMT 66 FDD 1700 Extended AWS blocks A-J (AWS-1/AWS-3) 67 FDD* 700 EU 700 68 FDD 700 ME 700 69 FDD* 2600 IMT-E (duplex spacing) 70 FDD 1700 AWS-3 A1/B1 + EPCS H 71 FDD 600 US 600
* Supplemental Downlink only Mobile Policy Handbook 235
Uplink Downlink Regions 2300 – 2400 Global (certain countries) 2496 – 2690 N America, China, Japan 3400 – 3600 Global 3600 – 3800 Europe 703 – 803 n/a 1447 – 1467 n/a 5150 – 5925 n/a 5855 – 5925 n/a 3550 – 3700 n/a 1920 – 2010 2110 – 2200 n/a 1710 – 1780 2110 – 2200 n/a N/A 738 – 758 n/a 698 – 728 753 – 783 n/a N/A 2570 – 2620 n/a 1695 – 1710 1995 – 2020 n/a 663 – 696 617 – 652 n/a