5G, Mobile Networks

Mobile Policy Handbook An insider’s guide to the issues

2019 Do you have Mobile Policy the knowledge? Handbook Can you take An insider’s guide to the issues a position?

Will you lead the debate?

Ever since the introduction of the first digital cellular services for commercial use in The world has pivoted towards digital technologies to enable seamless communication, the 1990s, mobile networks have spread, evolved and changed our world. Massive connection, commerce and all manner of internet-enabled services and solutions. These infrastructure investment and competition among mobile operators, supported by technologies are indelibly changing the way businesses operate and the way people live, enabling policies and regulation, have led to continual improvements in network speed work and play. and quality and have extended the reach of mobile services to the most remote rural communities. Mobile networks are at the heart of this digital transformation, as the primary channel over which people communicate and access online applications and the internet. The GSMA believes that a country’s citizens benefit most when the private and public However, the industry itself is now going through a transformation as it looks to a future sectors work together in a spirit of openness and trust, as policymakers and regulators that will be opened up by fifth-generation, or 5G, mobile networks. create the conditions that can attract telecoms investment, encourage innovation and strengthen digital trust. It will appear in cities first, where mobile data volumes are climbing fastest and where a return on investment is most readily achieved. And it will seamlessly coexist with earlier This is why we are committed to supporting governments and regulators in their mobile generations, which will connect citizens to the mobile internet for years to come. 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 Many countries will host their first commercial 5G network deployments in the next three collaboration. A unique resource that assembles a range of policy topics and mobile years. The digital economy needs 5G to respond to booming demand for mobile data, industry positions and initiatives under one cover, it acts as a signpost to regulatory enable a massive Internet of Things (IoT) and make possible an array of services that best practice. require fast, dependable, low-latency connectivity.

As the global trade association of mobile operators, the GSMA conducts and Governments have embraced the vision of 5G as the catalyst for economic growth commissions research on policy trends and challenges in the fast-moving mobile and beneficial services. However, significant new investment will be needed to fund communications market. This handbook draws on the association’s unique insight into equipment costs as well as spectrum access licences and regulatory costs. Governments the mobile sector and presents it in a practical way for those who want to explore the as well as regulatory authorities will therefore play a crucial role in enabling efficient and issues and unleash the value of mobile technology in their own market. timely deployment of next generation mobile networks while bringing down the costs for operators. In this seventh edition of the Mobile Policy Handbook, new policy topics and industry positions have been introduced covering areas such as 5G and spectrum sharing. 5G networks will be central to the realisation of an advanced digital economy and society, Throughout the book, the content has been refreshed with up-to-date statistics, new but supportive policy and regulations must be deployed to make 5G a reality. We hope resources and industry insights. this handbook will prove useful as a compass to help navigate the policy and regulatory challenges that lie ahead on the path to the next generation. 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]. #BetterFuture #BetterFuture — Introduction 10 Improving the Industry's Impact on the SDGs 12

Mobile For Development Mobile For Development — Introduction 18 Connected Society 20 Connected Women 22 Digital Identity 24 Ecosystem Accelerator 26 Mobile Agriculture 28 Mobile for Development Utilities 30 Mobile for Humanitarian Innovation 32 Mobile Health 34 Mobile Money 36

Capacity Building GSMA Capacity Building 38

Mobile Initiatives Mobile Initiatives — Introduction 44 Future Networks — Introduction 46 5G — The Path to the Next Generation 48 IP Communication Services 50 Voice over Long Term Evolution 52 Internet of Things — Introduction 54 Connected Drones (UAVs) 56 Connected Vehicles 58 Privacy and Data Protection for IoT 60 Smart Cities and IoT 62 Identity — Introduction 64 Mobile Connect 66 Business Environment Spectrum Licensing 144 Business Environment — Introduction 68 Spectrum Licence Renewal 146 Policies for Progress 70 Spectrum Sharing 148 Base Station Siting and Safety 72 Spectrum Trading 152 Competition 76 Technology Neutrality and Change of Use 154 Efficient Mobile Market Structures 80 TV White Space 158 Infrastructure Sharing 84 Consumer Protection Intellectual Property Rights — Copyright 88 Consumer Protection — Introduction 160 Intellectual Property Rights — Patents 90 Addressing Cybersecurity Challenges 162 International Mobile Roaming 92 Children and Mobile Technology 164 Mobile Termination Rates 94 Cross-Border Flows of Data 168 Net Neutrality 96 Electromagnetic Fields and Health 172 Over-The-Top Voice and Messaging Communication Apps 100 eWaste 178 Passive Infrastructure Providers 102 Illegal Content 180 Quality of Service 104 Internet Governance 184 Single Wholesale Networks 108 Mandated Government Access 186 Taxation 112 Mandated Service Restriction Orders 190 Universal Service Funds 116 Mandatory Registration of Prepaid SIMs 192

Spectrum Management and Licensing Mobile Devices: Counterfeit 194 Spectrum Management and Licensing — Introduction 118 Mobile Devices: Theft 196 Core Mobile Bands 120 Mobile Network and Device Security 198 5G Spectrum 122 Number-Resource Misuse and Fraud 200 Digital Dividend 124 Privacy 204 Limiting Interference 128 Privacy and Big Data 208 Spectrum Auctions 132 Signal Inhibitors (Jammers) 210 Spectrum for Drones (UAVs) 136 Appendix Spectrum for IoT 138 GSMA Intelligence 212 Spectrum Harmonisation 140 10 #BetterFuture Mobile Policy Handbook 11

#BetterFuture

The UN’s 2030 Agenda for Sustainable essential humanitarian assistance during Development details 17 Sustainable epidemics and natural or climate-related Development Goals (SDGs) that act as the disasters. Since committing to the SDGs, world’s to-do list to end poverty, reduce the mobile industry has played a much inequalities and tackle climate change. larger and increasingly expanding role in humanitarian response. In 2017, the With its unprecedented scale and growing response efforts of mobile operator impact on daily lives, mobile is a powerful signatories and humanitarian partners in tool for achieving the SDGs. Countries with the Humanitarian Connectivity Charter high levels of mobile connectivity have reached more than 30 million people made the most progress in meeting their affected by crisis and disasters. SDG commitments — put simply, quality of life improves as people gain access to There are three specific characteristics — mobile technology. covered in greater detail overleaf — that explain how the mobile industry continues The GSMA has reviewed the industry’s to increase its contribution across all contributions towards achieving the goals SDGs: deployment of infrastructure and in three in-depth reports since 2015. The networks; access and connectivity; and 2018 edition of the Mobile Industry Impact enabling services and relevant content. Report highlights that the industry is continuing to build on the positive impact Furthermore, new and emerging areas it is having across all 17 SDGs. — such as IoT, Big Data and artificial intelligence — are demonstrating their The strongest overall impact is on SDG9 potential to have transformative impacts — industry, innovation and infrastructure. on peoples’ lives. Mobile is enabling innovation and new business models such as the sharing The industry has a clear incentive to drive economy, mobile savings and credit, and improvements beyond ‘business as usual’ pay-as-you-go solar models to access and accelerate activities that contribute clean energy. It also allows businesses to the SDGs. The reason is that the SDGs to expand trade and enhances the not only ensure a healthy and viable productivity of industry. society but also offer new and substantial commercial opportunities, through The report highlights that, out of all more inclusive and prosperous societies, the goals, the mobile industry’s impact dynamic and inclusive marketplaces, on SDG13 (Climate Action) and SDG11 reliable regulatory frameworks and thriving (Sustainable Cities and Communities) has ecosystems. Detailed over the next six improved most from its 2015 baseline. pages is a small selection of ways in which A key driver of this increased impact the industry is driving these improvements. is the use of mobile phones to provide 12 #BetterFuture Mobile Policy Handbook 13

Improving the industry’s impact on the SDGs

Three underlying trends explain much of the improvement in the industry’s impact Improvements on the SDGs since 2015: Population coverage Network quality

Deployment of infrastructure and networks Average mobile broadband download speed More than 6.9 billion The mobile industry drives impact through the provision of, and investment in, high- 3G 80% 91% 2015 2018 people covered 14 Mbps 22 Mbps performing mobile networks, which provide the foundations for the digital economy 2015 2017 and act as a catalyst for a diverse and innovative range of services. More than four-fifths of the world’s population — around 6.9 billion people — are now within reach of a 4G 4G 48% 81% More than 6.2 billion 57% network, while overall 3G coverage rose to more than 91 per cent in 2018. In addition, 2015 2018 people covered increase wider coverage as well as improved network quality and resilience enables the industry

to play a critical role before and during epidemics, conflicts and natural or Source: Based on analysis by Ookla® of Speedtest Intelligence® climate-related disasters. Source: GSMA Intelligence data for 2015 to 2017

Access and connectivity Improvements

Unique mobile subscriber Mobile internet subscriber Cellular IoT connections Operators continue to connect the unconnected, adding 795 million unique new penetration penetration subscribers from 2015 to 2018, bringing the total to 5.1 billion. An increasing number of people are moving beyond voice to take up mobile internet services, enabling them to 62% 67% 36% 46% 320m 969m participate in the digital economy. During the same period, there were 851 million new 2015 2018 2015 2018 2015 2018 mobile internet subscribers, bringing the total to 3.5 billion. Mobile technology also 5.14 billion subscribers 3.5 billion mobile increases productivity and the efficient use of resources in industry, for example via internet subscribers industrial Internet of Things (IoT) and smart energy grids. From 2015 to 2018, there 203% 795m 851m increase were 649 million more cellular IoT connections, bringing the total to 969 million. new subscribers new mobile internet subscribers Source: GSMA Intelligence

Enabling services and relevant content Improvements

Active mobile applications IncludingUse of mobile-enabled services Mobile technology has enabled a range of life-enhancing services such as mobile financial available on smartphones services, mobile agriculture and mobile health. In 2017, there were 690 million registered Education 62% In 2017, 850 million subscribers increase (more than 15% of total) used mobile mobile money accounts worldwide, and mobile money platforms were processing more to access government services than $1 billion a day, helping to expand financial and social inclusion. Meanwhile, new and 3.5m 5.8m 480,000 780,000 2015 2017 2015 2017 In 2017, 1 billion subscribers emerging areas such as IoT, Big Data and artificial intelligence are demonstrating their (20% of total) used mobile to access potential to have transformative impacts on lives. For example, the implementation health services Health 66% of IoT and Big Data solutions for improved environmental monitoring is helping reduce 65% increase In 2017, 1.2 billion subscribers increase the adverse environmental impact of cities. (25% of total) used mobile to access 165,000 275,000 education services 2015 2017 Source: Appﬁgures Source: GSMA Intelligence 14 #BetterFuture Mobile Policy Handbook 15

Case Studies

How mobile is contributing to achieving SDG targets North America: Since committing to playing a leading role in delivering on the Sustainable Development Drone-mounted cell sites boost humanitarian response Goals, the industry has increased its impact across all 17 goals. Below are four practical examples that highlight how the industry is making a difference. Following Hurricane Maria, 90 per cent of Puerto Rico’s telecoms infrastructure was damaged, costing an estimated $1.2 billion.

Latin America: In response, AT&T deployed a drone-mounted cell site to provide data, voice and text Bringing school to life in the Amazon services. These provided wireless connectivity to customers and recovery teams in an area up to 40 square miles, flying 200 feet above the ground. Over one million children in Peru live too far from a school to get access to the best education. As a result, only 10 per cent of girls and boys understand what they read. The ability of these airborne cell sites to extend coverage further than other temporary Telefónica is helping to address this by bringing digital learning to the most remote cell sites makes them ideal for providing coverage in remote areas. Although this was parts of the Amazon rainforest via its Mobile Classroom. The project supplies a portable the first time a drone-mounted LTE cell site was successfully deployed to connect teaching station to schools. This includes a computer (which also acts as a network residents after a disaster, it still managed to carry dozens of gigabytes of data, facilitating server), monitor, multimedia projector, speakers and educational resources. There thousands of calls and texts. are also laptops for the students and a power source so the laptops can be charged. The Mobile Classroom is allowing teachers to take advantage of the latest innovative teaching methods and giving students access to exciting educational resources. Africa: Apps and SMS help improve nutrition

Asia: In Uganda, poor nutrition is linked to deaths from diarrhoea, malaria and pneumonia for Mobile apps boost birth registration children, and from anaemia for pregnant women. Some 29 per cent of children under five years old are considered to be stunted. In Pakistan, approximately 60 million children remain unregistered, with registration rates lowest among girls, children from rural areas and those from the poorest households. Non-governmental organisation Living Goods Uganda has responded by deploying Registering a birth can be difficult, in some cases nearly impossible — especially for a network of door-to-door community health workers (CHWs) who guide families children born at home, in remote locations or in displacement. towards improved health and well-being. They use an app called SmartHealth to record household information and make health assessments. A separate SMS service sends UNICEF, Telenor and the Punjab and Sindh provincial governments collaborated to customers life-saving maternal and newborn health information. create and deploy a mobile app which allows health workers and marriage registrars to send birth data directly to authorities. Officials use a PC-based dashboard to review Some 82 per cent of users who had a consultation with a CHW and received SMS on this information and monitor progress. topic reported to be exclusively breastfeeding their babies — a 32 per cent improvement of over non-users. The four-month pilot project doubled registration rates in the target districts. A renewed project targets an additional 700,000 registrations over two years in nine new districts.

Resources: GSMA Report: 2018 Mobile Industry Impact — Sustainable Development Goals GSMA Report: 2017 Mobile Industry Impact — Sustainable Development Goals GSMA Report: 2016 Mobile Industry Impact — Sustainable Development Goals GSMA Handbook: Champions for a Better Future GSMA App: Sustainable Development Goals — The SDGs in Action Case for Change website 16 #BetterFuture Mobile Policy Handbook 17

Big Data for Social Good

The mobile industry is harnessing Big planning and response. The initiative is costly and labour intensive. Instead, Vivo deaths worldwide. Mobile operator Data to help public agencies and NGOs now backed by 20 operators, accounting harvested data from existing sensors Telenor had already partnered with the tackle infectious disease, disasters and for over two billion connections in over and combined it with anonymised mobile Harvard School of Public Health to fight environmental impacts. Protecting one hundred countries. From the start, traffic and location data to predict high- dengue. This time, they are using mobile privacy remains at the core of Big Data the Big Data for Social Good initiative pollution zones up to 48 hours in advance. Big Data and adding Thailand’s Mahidol developments — and the mobile industry established a robust code of conduct to This armed municipalities with the Oxford Tropical Medicine Research Unit is committed to the responsible use of ensure all activity respects and protects information they needed to take action. as a partner. The goal is to model the data and the protection of privacy. By individuals’ privacy. population movements that spread multi- aggregating and anonymising the data Across India, tuberculosis kills hundreds drug resistant malaria around Thailand, collected by their networks, mobile of thousands of people each year, but Bangladesh and Myanmar. operators can provide insights into human First Wave of Projects the government aims to end the disease movement patterns without comprising — Health entirely by 2025. Mobile operator Bharti individuals’ privacy. When this data is Airtel supplied anonymised, aggregated Second Wave of Projects enriched with third-party data sources The first wave of the programme’s mobile data from 280 million people to be — Disaster Preparedness — such as hospital intakes, death counts collaborative projects leveraged Big Data combined with health and disease data and weather data — it can enable relief for health via three initiatives: one in from multiple other sources. The idea The next wave of the programme will agencies to make decisions on when, Brazil, one in India, and the final one is to predict tuberculosis hotspots and tackle disaster preparedness and response, where and how to deploy resources. across three countries: Thailand, locate hidden cases. This in turn will allow with early stage projects across Japan, Bangladesh and Myanmar. health services to understand where best Colombia, Russia and Turkey. In Japan, The GSMA’s Big Data for Social Good to deploy mobile clinics and vaccination three operators are working to produce programme is developing consistent Air pollution kills thousands each year programmes or to launch awareness live displacement maps linked to seismic methodologies and sustainable in Brazil’s cities. In response, mobile campaigns. activity. In Colombia, Telefonica is working approaches that mobile operators can use operator Vivo collaborated with São on models to predict flooding and climate to share relevant insights from this data Paolo municipalities to predict air quality. In Southeast Asia, malaria-causing impact. In Russia, MegaFon is gestating with public agencies and NGOs, while Deploying new sensors or carrying out parasites travel fast, ignore borders and plans to use Big Data to help people building an ecosystem to support timely surveys to predict pollution levels is both are increasingly immune to anti-malarial displaced by natural disasters. In Turkey, drugs. If resistance spreads beyond the Turkcell wants to use Big Data to prepare region, it could massively increase malaria and recover from earthquakes.

Resources: Big Data for Social Good website Big Data for Social Good video Telefónica Case Study: Predicting Air Pollution Levels 24 to 48 Hours in Advance in São Paulo, Brazil ITU Blog: How AI and Big Data are Tackling the Health Impacts of Urbanisation 18 Mobile for Development Mobile Policy Handbook 19

Mobile for Development

The transformative power of mobile is which can then boost the effectiveness of most apparent in emerging markets where maternal health programmes. it is usually the most widespread and reliable infrastructure. Isolated populations The programme continues to demonstrate in these countries are often underserved impact across a number of important by basic services, so this puts the mobile areas. For example, mobile money services industry in a unique position to help have helped to greatly reduce financial connect them to key infrastructure, exclusion over the past decade, as there as well as to health and financial services. are now 690 million mobile money accounts across more than 90 countries. Mobile for Development (M4D) is a Furthermore, the mHealth programme dedicated global team within the GSMA, reached just under 1.6 million women and which brings together our mobile households with lifesaving maternal and operator members, tech innovators, health information in eight sub-Saharan the development community and countries over the last two years. governments, to harness the power of mobile in emerging markets. The team Via its Mobile for Humanitarian Innovation identifies opportunities and helps deliver Fund, the GSMA is also helping allocate innovations in financial services, health, grants to innovators whose activities agriculture, digital identity, energy, water, bolster crisis response, while its Ecosystem sanitation, disaster resilience and Accelerator Innovation Fund is supporting gender equality. start-ups in Africa and Asia Pacific with non-equity funding, mentorship and A key part of M4D’s strategy involves technical assistance to help them create taking advantage of the synergies commercially sustainable products between the different strands of the team’s and services. work to amplify the overall impact of the programme. For example, it works to Through these activities and more, M4D’s identify ways to leverage mobile money work seeks to test the feasibility of new payments alongside machine-to-machine ideas, support the spread of those with the communication to help improve access most potential and scale those projects to energy, clean water and sanitation that have proven their worth. This section in emerging markets. Correspondingly, details how these efforts are translated it promotes the use of digital identity into real projects with meaningful socio- solutions to support the registration economic impact. of newborn babies via mobile phones, 20 Mobile for Development Mobile Policy Handbook 21

Connected Society

Background Public Policy Considerations Breaking down barriers to mobile • Prioritising digital skills in formal internet usage. The majority of people education and through government During 2018, an additional 270 million Significant progress has already been who remain unconnected to the mobile supported training programmes. people connected to the mobile internet, achieved but, based on current trends, internet are already living in areas with bringing the total number to 3.6 billion almost 40 per cent of the world’s network coverage. Closing this ‘usage gap’ • Developing e-government services to globally.1 Despite this achievement, population will still be offline by 2025. will require stakeholders to tackle issues help drive an increase in the amount more than four billion people remain The reasons for the mobile digital divide in four key areas: affordability, usability of relevant content and services offline. This is known as the ‘digital are complex and rooted in a range of and skills, relevance, and safety. Key available to citizens and, in turn, improve divide’. It includes one billion people social, economic and cultural factors. considerations for governments include: the accessibility and efficiency of who are currently not covered by mobile Accelerating mobile internet adoption will government service. broadband networks (representing the require deliberate and strategic efforts by • Avoiding the introduction of ‘coverage gap’), and three billion people the mobile industry, policymakers and the distortionary or disproportionate taxes • Strengthening action against internet- who live within the footprint of a network international community, particularly for on mobile handsets as they negatively related abuse and harassment, including but are not accessing mobile internet rural populations, women and other impact the affordability of these devices, through legal and policy measures, to services (equating to the ‘usage gap’). underserved groups. which remains a key barrier for many build trust around the mobile internet, In developing markets, mobile is the people in developing markets. particularly among women. cheapest and often only way of accessing The following areas will require

the internet. This means that accelerating particular attention: 1 Source: All figures quoted are GSMA Intelligence, Q4 mobile internet connectivity and usage 2018 estimates unless otherwise stated. is critical to supporting the growth of the Enabling rural broadband expansion. digital economy and ensuring no-one is Offline populations typically have left behind. In that context, digital inclusion low income levels and live in sparsely has become a key facilitator for a range of populated, rural areas that lack enabling essential mobile-enabled services in the infrastructure such as electricity and high- areas of healthcare, education, utilities and capacity fixed communications networks. financial services. All of these factors adversely affect the business case for mobile network expansion in these locations. Policymakers Programme Goals should acknowledge that the mobile industry cannot close the coverage gap The GSMA’s Connected Society without the government's support. Instead, programme focuses on accelerating digital they can enhance incentives to invest in inclusion. It works with the mobile industry rural infrastructure by aligning key policies and key stakeholders to increase access around best practices. These include to and adoption of the mobile internet, adopting coverage-driven spectrum spotlighting underserved population allocation and pricing, implementing Resources: groups in developing markets. The investment-friendly tax policies, GSMA Connected Society Website programme supports the mobile industry facilitating access to public infrastructure, GSMA Mobile Internet Skills Training Toolkit in its efforts to extend network coverage reducing red tape for deploying mobile GSMA Report: State of Mobile Internet Connectivity 2018 and address consumer barriers to mobile infrastructure, and encouraging voluntary GSMA Report: Enabling Rural Coverage — Regulatory and Policy Recommendations to Foster Mobile Broadband Coverage in Developing Countries internet adoption in order to unlock the infrastructure sharing. GSMA Report: Rural Coverage — Strategies for Sustainability significant socio-economic benefits of GSMA Report: Unlocking Rural Coverage — Enablers for Commercially Sustainable Mobile increased digital inclusion. Network Expansion GSMA Report: Accelerating Affordable Smartphone Ownership in Emerging Markets

22 Mobile for Development Mobile Policy Handbook 23

Connected Women

Background The gender gap won’t close on its own. address women’s needs, circumstances, harassment via mobile phones and the The social, economic and cultural barriers capabilities and preferences are essential mobile internet through awareness Mobile connectivity has grown rapidly, but driving it can only be overcome with if governments are to truly make progress. campaigns or legal and policy frameworks. it is not reaching everyone equally. Many intervention by all stakeholders — including The adoption of clear targets around women are being left behind in today’s policymakers — collaborating with the women’s access to mobile internet and Targeted regulatory interventions can also increasingly connected world. Women in mobile industry. mobile money is encouraged, along play a key role in addressing the challenges low- and middle-income countries are 10 with the implementation of proper that disproportionately affect women. In per cent less likely to own a mobile phone accountability structures to ensure these the context of mobile money for example, than men on average1, which translates Programme Goals targets are met. the adoption of flexible agent regulation into 184 million fewer women owning and of tiered know-your-customer (KYC) mobile phones.2 The GSMA Connected Women programme Creating a supportive policy environment requirements can go a long way in driving focuses on accelerating digital and is an essential first step to making mobile money adoption among women. Even those women who do own a financial inclusion for women. Its mission progress towards three objectives. Such mobile tend to use it less frequently and is to reduce the gender gap in access an environment will help address issues of Data is critical to help regulators and intensively than men, especially for more and use of mobile internet and mobile gender equality and social norms. It must policymakers better understand the transformational services such as mobile money services in low- and ensure that mobile devices and services barriers women face. Demand-side data in internet and mobile money. Women are middle-income countries. are accessible, affordable, usable, safe and particular can be an invaluable source of on average 26 per cent less likely to use relevant for women. It must also ensure insights and also tends to be more reliable mobile internet than men and 33 per cent It works with mobile operators and that women have the skills and confidence than supply-side data. Policymakers are less likely to use mobile money.3 their partners to address the barriers to to use them. encouraged to adopt creative approaches women’s use of these services, unlock to ensure accurate sex-disaggregated data Barriers to both access and use of this substantial market opportunity for For example, it is important to ensure is available. This allows decision-makers mobile products and services often the mobile industry, deliver significant appropriate policy and regulation is in to inform their own policies, monitor the disproportionately affect women. These socio-economic benefits and transform place to lower cost and access barriers gender gap and support operators and barriers include network coverage, the women’s lives. By July 2018, 36 operators for customers. This can be achieved by others in developing customer-centric cost of handsets and services, concerns had committed to reducing the gender gap reducing mobile-specific taxes, supporting approaches focusing on women. around security and harassment, and a in their mobile internet, their mobile money voluntary infrastructure sharing among

lack of technical literacy and awareness of customer base or both by 2020. licensed operators and releasing sufficient 1 According to the GSMA’s 2018 Mobile Gender relevant products and services. spectrum at affordable cost. Gap Report. 2 ‘Mobile’ or ‘mobile phone’ ownership refers to Closing the gender gap in mobile phone Public Policy Considerations Furthermore, governments can consider personally owning a SIM card, or a mobile phone which does not require a SIM; and using it at least ownership and usage can substantially strategies for increasing mobile and once a month. empower women, opening up access To address the gender gap, policymakers digital skills through changes to school 3 According to the World Bank’s 2017 Findex Report. to information and life-enhancing and regulators should take a holistic curriculums and having training opportunities — such as health information, approach to the issue that respects both programmes for women who lack digital financial services and employment local and cultural sensitivities. Strategies, skills. It may also be appropriate to address opportunities — often for the first time. policies and budgets that explicitly

Resources: We call for immediate measures to achieve gender equality in internet users GSMA Connected Women website by 2020, especially by significantly enhancing women’s and girls’ education Broadband Commission Working Group on the Digital Gender Divide — Recommendations for Action: and participation in ICTs, as users, content creators, employees, entrepreneurs, Bridging the Gender Gap in Internet Access and Use innovators and leaders. GSMA Report: The Mobile Gender Gap Report 2018 GSMA Report: Triggering Mobile Internet Use Among Men and Women in South Asia — UN General Assembly, WSIS+10 Outcome Document GSMA Report: Bridging the Gender Gap — Mobile Access and Use in Low-and-Middle-Income Countries 24 Mobile for Development Mobile Policy Handbook 25

Digital Identity

Background Programme Goals digital transformation strategies. For opportunity to access an official form of example, they could leverage their ID before imposing any requirements on The ability to prove that you are who you The GSMA Digital Identity programme nationwide reach to support residents’ mobile operators to disconnect users who say you are and have this information is working with mobile operators, enrolment into new digital identity systems. failed to register their SIM using an ID. authenticated when interacting with the governments and the development Consideration should be given to the needs state or private companies is critical to community to demonstrate the They could also validate people’s existing of underserved and vulnerable groups accessing basic services such as healthcare, opportunities and value of mobile as a identity credentials against government including refugees, those in remote areas education and employment, as well as scalable and trusted platform to enable databases, where these exist, to strengthen or those with disabilities. exercising voting rights or benefiting robust digital identity solutions for the ‘know your customer’ (KYC) processes. from financial services. Yet World Bank underserved, leading to greater social, Governments also carry a responsibility estimates from 2018 indicate that at least political and economic inclusion. To enable mobile-based digital identity to foster a trusted environment where one billion people lack any form of officially solutions, policymakers should consider consumers’ privacy is respected, by recognised ID, either paper or electronic.1 Mobile operators are ideally placed to play a investing in and promoting e-government adopting data protection and privacy This problem disproportionally impacts leading role in the development of a digital services. frameworks based on international best rural residents, poor people, refugees, identity ecosystem because they have: practices. Finally, governments should also women, children and vulnerable groups; Furthermore, an enabling regulatory actively engage with mobile operators, and is most pronounced in Africa and • Immense reach — they connect more environment needs to be put in place if key stakeholders and the wider identity Asia. The international community has than five billion unique subscribers mobile is to deliver digital identity solutions ecosystem to help drive interoperability recognised this so-called ‘identity gap’ worldwide. to the underserved. Governments must first and innovation. as a critical barrier to achieving inclusive ensure consistency between the different

and sustainable social and economic • Extensive networks of agents that can legal and regulatory instruments that 1 World Bank: Identification for Development (ID4D) development. Indeed, the ninth target of be used for face-to-face verification. affect the management of digital identity. global data set. UN Sustainable Development Goal (SDG) They must also work to break down any 16 aims for everyone to have a legal identity • A local presence that is bound by local legal, policy and regulatory barriers that by 2030. licences and laws. may inhibit the roll out of mobile identity services. The identity gap is both a symptom of slow • The ability to access unique customer economic development and a factor that attributes through network management For example, in at least 147 countries mobile makes development more difficult and less tools. operators are already subject to identity- inclusive. The problem is particularly stark related requirements, such as mandatory when it comes to birth registration, with • Experience in partnering with SIM registration and KYC obligations Unicef figures showing that one in four governments and service providers. for mobile financial services. Taking an children under five lacks a legal identity integrated policy approach to these simply because their birth wasn’t registered. requirements would boost momentum World Bank research in sub-Saharan Public Policy Considerations towards mobile-based digital identity. It is Africa indicates that more than half of the also important for policymakers to ensure population lacks an official identity, yet Digital identity has the power to increase that a critical mass of citizens has had the more than two-thirds of residents in the digital, social and financial inclusion, drive region have a mobile phone. These figures economic growth, support more efficient highlight the transformative potential of and transparent processes and prevent mobile to bridge this identity gap and fraud. Mobile operators can play a number Resources: GSMA Digital Identity Programme website catalyse greater socio-economic impact of roles in advancing digital identity GSMA SIM Registration website in emerging markets. ecosystems and accelerating governments’ GSMA Report: Access to Mobile Services and Proof of Identity GSMA Policy Note: Enabling Access to Mobile Services for the Forcibly Displaced 26 Mobile for Development Mobile Policy Handbook 27

Ecosystem Accelerator

Background Programme Goals verticals, focused on leveraging mobile start-ups also helps broaden the available technology to tackle the UN Sustainable range of locally relevant content and The mobile industry has had a hugely In emerging markets, mobile operators Development Goals. As of August 2018, services. This can help drive the uptake positive impact on the lives of citizens have reached the scale that start-ups 24 start-ups from 15 markets have received of the internet and digital services among in developing nations because it has lack, while start-ups are developing funding from the GSMA Ecosystem the broader population. Multilateral and delivered a wide range of innovative the local innovation mobile operators Accelerator Innovation Fund, positively non-government organisations also services at unprecedented scale. However, need. The GSMA Ecosystem Accelerator impacting some 1.5 million people. have a role to play in the emerging tech many opportunities remain untapped works to bridge the gap between mobile innovation landscape, particularly in because innovative start-ups in emerging operators and start-ups, enabling strong The Ecosystem Accelerator programme providing technical support and a platform markets face challenges in establishing partnerships that support the growth of is supported by the UK Department for for collaboration. partnerships with mobile operators and commercially sustainable mobile products International Development (DFID), the vice versa. and services. By kickstarting dialogue Australian Government, the GSMA and Key ecosystem stakeholders also between start-ups and mobile operators, its members. need to collaborate to ensure that new For example, start-ups commonly report the programme helps create synergies and mobile-based solutions achieve scale fundamental issues related to differences expand the scale of the most promising and sustainability. For example, mobile in organisational goals, business ideas. This, in turn, helps the industry Public Policy Considerations operators can help by opening up APIs to language or technical limitations around deliver the most impactful mobile solutions third-party developers and start-ups. This incompatible application programming to the people and places that need them The innovative ideas and nimble working will encourage even more innovation in the interfaces (APIs). Conversely, operators the most. practices that start-ups bring to business mobile ecosystem. report a lack of market insight, a scarcity mean they often have a huge impact on of appropriate partners and a dearth of Through the Innovation Fund in particular, both economies and societies. 1 From the GSMA Blog: 1000 Tech Hubs are Powering clear business models when attempting the programme leverages public sector Ecosystems in Asia Pacific and Africa. to partner with local start-ups. Operators capital to provide funding and tailored As a result, governments now have a duty are also struggling to identify the best support to competitively selected start- to implement policies that help start- candidates for collaboration because they ups in emerging markets that can deliver ups act and move quickly. For example, are flooded with requests for partnerships strong socio-economic impact. governments can help by reducing from a large number of start-ups. bureaucratic barriers, improving access to The Innovation Fund supports start-ups capital, encouraging talent development As a result, mobile operators miss out in Africa and Asia Pacific with non- and fostering a culture of innovation where on new innovations and commercial equity funding, mentorship and technical risk-taking is not punished. opportunities — including potentially assistance, as well as by facilitating disruptive ones — at a time when other partnerships with mobile operators. As of Governments can also have an impact by players are becoming increasingly July 2018, the programme has committed becoming more involved in supporting influential within the ecosystem. This is £5.5 million, and funded startups have local tech hubs, given their potential to highlighted by GSMA research carried tripled this money from other sources. facilitate the creation of new jobs and out in March 2018, which found that there During its lifetime, the programme will to develop solutions that tackle social were around one thousand active tech award over £7 million to help start-ups challenges and positively engage young hubs in Africa and emerging markets in in Africa and Asia-Pacific realise their people. Promoting investment in local Asia Pacific. Of these hubs, half report a commercial and social potential. partnership with at least one tech giant — such as Microsoft, Google and Amazon — Since it started in 2016, the fund has Resources: but only 10 per cent were partnering with received more than 1,650 applications GSMA Innovation Fund website 1 a mobile operator. globally from start-ups across multiple GSMA Ecosystem Accelerator Innovation Fund Portfolio GSMA Ecosystem Accelerator Insights 28 Mobile for Development Mobile Policy Handbook 29

Mobile Agriculture

Background get their first mobile phone. Provided Public Policy Considerations size and value of payments for the sale of that mobile operators and other mobile crops from agribusiness to farmers. Agriculture contributes around 23.7 money providers are able to operate in In some cases, national Ministries of per cent of GDP in the world’s least an enabling environment, a significant Agriculture have been important for the Business-to-person payments in agricultural developed countries1, with over 450 million share of these people (many of whom are success of information-based mAgri value chains are the most likely entry smallholder farmer households depending farmers) could be added as new mobile services, for example by providing point to financial inclusion for farmers, so on agriculture for their livelihood. However, money customers. The main opportunities validation for the content that mobile it is imperative that service providers and smallholder farmers are increasingly for digitisation within agricultural value network operators send to farmers. regulators understand the unique nature of vulnerable to volatile climate patterns chains are business-to-person and the agricultural sector. Failing to do so risks affecting their yields. In addition, farmers, government-to-person transfers, which the However, there are also some challenges cutting off the full breadth of opportunities cooperatives and agribusinesses in GSMA estimates as worth around $2 billion that need to be addressed, such as: in the digitisation of agricultural payments. agricultural value chains face many and $202 million of revenue each year. In countries such as Ghana, Haiti, and inefficiencies. The largest of these is the The need for proportional know-your- Sri Lanka, where mobile operators are predominance of cash transactions, but Evidence of the social impact of mobile customer (KYC) rules: Complex due digitising agricultural last mile payments there is no shortage of other issues. These services suggests that mobile-based diligence processes impede mobile money for the procurement of key cash crops, include a lack of knowledge of the latest information services targeting smallholder service uptake in rural areas, since many the transaction value and account size farming practices, of visibility into the farmers in the developing world are driving farmers and agents are unlikely to have limits mandated by regulators have posed value chain overall and of the agricultural behavioural change and livelihood benefits. the official documentation needed to sign challenges to the implementation of assets available to farmers, like tools, Active users of mobile information services up for a mobile money account. Those digital payments. inputs and equipment. have reported significantly more on-farm seeking to enable uptake of mobile money changes than comparable non-users. This services in rural areas must strike the Supporting mobile Internet of Things With mobile penetration across the world’s includes planting, land management and appropriate balance between relaxing due (IoT) for climate resilience: Mobile IoT developing regions expected to reach harvesting. For instance, in Pakistan active diligence requirements and maintaining and Big Data are crucial for bridging 68 per cent by 2025, mobile can deliver users of GSMA-supported services are 1.9 financial sector integrity. Where national ID the data gap in weather monitoring and efficiencies and improve the business times more likely to report an increase in schemes are particularly weak — including forecasting. To enable innovation in this performance of both large- and small- income than non-users. Fiji, Somaliland and parts of India — some space, national governments must allow scale agriculture operations. financial service regulators have allowed public-private partnerships between providers to open mobile money accounts domestic meteorological agencies, Mobile can deliver the critical economic Programme Goals using alternative forms of documentation, commercial weather service providers and and climatic information that smallholder including reference letters from village mobile operators. Many governments view farmers need to improve their decisions. The GSMA mAgri programme forges elders, employers and government officials. meteorological data as state-owned and In addition, mobile offers a pathway to partnerships between mobile operators, so have prevented private providers from financial inclusion for mostly unbanked technology providers and agricultural Mobile money transaction value and disseminating weather alerts. This has been smallholder farmers. The digitisation organisations. It supports scalable, account size limits: In many countries, a roadblock to leveraging the potential of of agricultural payments for the sale of commercial mobile solutions that impact the mobile money transaction value and mobile technology for weather monitoring crops via mobile money can support smallholder farmers and the agricultural account size limits mandated by financial and forecasting.

the formation of a financial identity and industry at large. As of March 2018, the sector regulators are not able to handle the 1 According to World Bank data. thus enable access to a range of services GSMA mAgri programme had supported including credit, savings and insurance. 12 projects, which had reached over 13.3 million smallholder farmers across Asia The GSMA forecasts that between and Africa with mobile agricultural and Resources: GSMA Report: Creating Scalable, Engaging Mobile Solutions for Agriculture 2017 and 2025 across sub-Saharan nutritional services to improve their yields. GSMA Report: Prerequisites to Digitising the Agricultural Last Mile Africa, South Asia, East Asia and Latin GSMA Report: Opportunities in Agricultural Value Chain Digitisation — Learnings from Cote D’Ivoire America, some 350 million people will GSMA Report: Opportunities in Agricultural Value Chain Digitisation — Learnings from Ghana 30 Mobile for Development Mobile Policy Handbook 31

Mobile For Development Utilities

Background life-changing benefits of energy and clean • Demonstrating the commercial Equally, several companies offering home water and sanitation to huge numbers of viability of improving energy, water solar power kits in emerging markets Rapid network expansion means mobile people in emerging markets. and sanitation access using innovative rely on mobile money to make these kits now reaches further than the electricity mobile technologies. affordable to low-income populations via grid, piped water networks and sewerage pay-as-you-go financing. Governments networks in most emerging markets. For Programme Goals • Driving further industry interest and should ensure supportive regulation is in example, while mobile coverage has grown support for increasing access to place to allow mobile money services to extensively to cover more than 95 per cent Challenges to providing universal access improving energy, water and sanitation thrive and continue to sustainably provide of the world’s population, 2.4 billion people to energy, water and sanitation services services through mobile technology. these much-needed affordable still lack access to improved sanitation include last-mile distribution, operation financing schemes. solutions.1 The result is a widening gap and maintenance costs, as well as between access to mobile and access to payment collection. Public Policy Considerations Furthermore, in developing markets, basic utility services. In fact, by 2015 mobile affordability is critical to increasing the use networks covered more than 855 million The GSMA Mobile for Development Governments should recognise and of mobile phones and associated services people without access to electricity, more (M4D) Utilities programme focuses on support the role mobile can play in such as mobile money. Mobile-specific than 373 million people without access to leveraging mobile network technology improving access to energy, clean water taxes raise barriers to mobile phone clean water and 1.97 billion without access and infrastructure to help solve these and sanitation in emerging markets. Mobile ownership and usage. Governments can to improved sanitation, according to challenges in emerging markets. technologies are increasingly becoming a play a key role by ensuring consumers do the GSMA’s Mobile for Development key strategic element of the models used not face higher taxes on mobile handsets (M4D) programme. The programme was established in 2013 by Water, Sanitation and Hygiene (WASH) and services than on other goods with funding from the UK’s Department and energy providers to support and services. This shortfall of affordable and sustainable for International Development. The service delivery.

utility infrastructure has a profound impact programme has also launched the M4D 1 Defined by the United Nations as separated faeces from on people’s lives. For example, according Utilities Innovation Fund, which aims to For example, many energy and water human contact, via latrine, flush or other means. to figures from charity WaterAid, nearly accelerate the development of promising providers employ mobile M2M technology 2 According to the GSMA’s 2013 report Sustainable Energy and Water Access Through M2M Connectivity. 300,000 children under the age of five mobile technologies and business to support the delivery of their services. die each year due to diarrhoeal diseases models that target improved access to M2M technologies can be used to monitor caused by poor water and sanitation. energy, water and sanitation services. water pumps remotely and trigger repair Poorer people living off the electricity grid By July 2018, the fund had given grants call-outs automatically when a fault in emerging markets also often end up to 53 organisations spread across four occurs, reducing down time. Governments relying on expensive and harmful energy continents. The $12 million granted has should ensure that taxation levels on sources, such as kerosene, which suffer unlocked a further $275 million from the M2M connections are set at appropriate from fluctuating prices. As a result, a private sector and benefited 4.5 million rates to encourage these types of middle-class family in Europe can pay less people in total. innovative solutions. for energy than a poor family in a country such as Bangladesh.2 The key goals of the programme include:

However, by leveraging the enormous • Supporting the Innovation Fund reach of mobile — as well as innovative grantees and their mobile operator mobile technologies and services, partners to help them deliver on the Resources: including machine-to-machine (M2M) promise of their trials. GSMA Mobile For Development Utilities website GSMA Mobile for Development Utilities Innovation Fund website communication and mobile money — the GSMA Connected Society Programme website industry is well positioned to help bring the GSMA Toolkit: Mobile Money Payment Toolkit for Utilities Providers GSMA M4D Utilities Annual Report 32 Mobile for Development Mobile Policy Handbook 33

Mobile for Humanitarian Innovation

Background in the mobile industry to support improved the UK Department for International • Help improve communication and access to communication and information Development. coordination among various government Mobile networks, and the connectivity for those affected by crisis in order to entities involved in responding to an they provide, are now seen as a lifeline in reduce the loss of life and positively emergency and facilitate a timely and humanitarian emergencies because they contribute to humanitarian response. Public Policy Considerations efficient response. support critical communication and access to services for humanitarian agencies, The role of mobile in disaster preparedness The GSMA has developed a set of • Clarify what proof-of-identification affected populations and the and response continues to grow, and as recommendations for governments, is acceptable for forcibly displaced international community. the ecosystem becomes more complex, regulatory bodies and mobile operators persons (FDPs) to access mobile there is a need for a better understanding to follow during times of crisis. services: this should include forms of Over the past several years, a proliferation of how the global mobile communications identity that most FDPs have access of new coordination and response community can support continued access The key elements of these recommendations to, for example United Nations High strategies have been built around mobile to communication and information. There are that governments — along with relevant Commission for Refugees (UNHCR)- platforms and mobile-derived insights. is also a need for further understanding multilateral agencies — and operators issued identification. of how mobile network data can be used should agree a set of regulatory or The impact of the 2017 Caribbean in privacy-friendly ways to derive helpful policy guidelines that can be adopted to • Allow some flexibility in the applicability hurricane season — as well as the ongoing insights and how the mobile platform can best respond to, and recover from, an of certain rules at times of emergency, global displacement crises, which affect be used as a delivery channel in the wake emergency and ensure broad access to for example enabling lower, tiered nearly 69 million people around the world1 of humanitarian emergencies. Equally mobile services for those affected. The thresholds of KYC requirements to — provide recent examples of the critical important are efforts among stakeholders guidelines should: allow FDPs to open basic mobile money importance of access to communication to ensure that crisis-affected communities accounts, particularly in emergency and information for populations affected have access to mobile services, including • Set out unambiguous rules and clearly contexts. by disaster and crisis. collectively addressing barriers such as the defined lines of communication between ability to meet know-your-customer all levels of government and operators in • Adopt and promote robust privacy Humanitarian responses are becoming (KYC) requirements. emergency situations. and data protection principles when increasingly reliant on mobile technologies. dealing with people’s personal data, These include innovations as diverse as • Provide the flexibility for operators to particularly in the absence of relevant connectivity and information access for Programme Goals adjust to unforeseen circumstances legal frameworks. displaced populations to mobile money- rather than insisting that rules designed

enabled humanitarian cash transfers The GSMA Mobile for Humanitarian for non-emergency situations apply 1 According to the UNHCR’s Global Trends Report. for communities impacted by disaster. Innovation programme works to no matter what the circumstance. The digital humanitarian ecosystem is accelerate the delivery and impact of also maturing, creating new services, digital humanitarian assistance. This will partnerships and business models to be achieved by building a learning and Resources: support the evolving use of mobile- research agenda to inform the future of GSMA Mobile for Humanitarian Innovation website enabled technologies in these contexts. digital humanitarian response, catalysing GSMA Humanitarian Connectivity Charter website partnerships and innovation for new digital GSMA Report: Enabling Access to Mobile Services for the Forcibly Displaced: Policy and Regulatory Recognising the importance of these humanitarian services, and advocating Considerations for Addressing Identity Related Challenges in Humanitarian Contexts developments, 148 mobile network for enabling policy environments. The GSMA Report: The State of Mobile Data for Social Good operators have signed up to the GSMA programme also runs an Innovation Fund 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 Humanitarian Connectivity Charter, to help catalyse new mobile-enabled GSMA Report: Mobile Money, Humanitarian Cash Transfers and Displaced Populations representing networks covering 106 solutions that can benefit those affected GSMA Case Study: Italy Earthquake Response and Recovery countries. The Charter consists of a set of by, or responding to, humanitarian GSMA Report: Mission Critical Communications shared principles adopted by key players crises. The programme is supported by GSMA Report: The Importance of Mobile for Refugees: A Landscape of New Services and Approaches 34 Mobile for Development Mobile Policy Handbook 35

Mobile Health

Background 1.59 million users across eight markets Public Policy Considerations of sustainable financing. In developing in sub-Saharan Africa — Ghana, Malawi, countries, venture capital activity is limited Developing countries continue to grapple Mozambique, Nigeria, Kenya, Tanzania, Digital health is taking its first steps in and private sector healthcare provision is with low investment in public healthcare, Uganda and Zambia. some African, Asian and Latin American underdeveloped. As a result, government which has a negative effect on access, countries. The number of initiatives is is likely to be the largest funder of digital quality and cost of healthcare services, The programme emphasises supporting growing, and there is widespread belief health initiatives in these nations. ultimately leading to poor health outcomes. partners to develop sustainable, user- that digital health can help address key More than 400 million people do not have centred mHealth services. There are four healthcare issues if it reaches scale. Governments can play a key role in the access to essential healthcare services, key areas of focus: development and success of the solutions mostly in Africa and South Asia.1 There There are three main areas where digital by providing more stable government is also a significant shortage of health • Product development: The GSMA health can have a significant impact: investment to help drive scale. Ministries professionals, as staffing levels are below supports product owners with user- of Health can also encourage the World Health Organization (WHO)- centric research, business intelligence 1. Access: Digital health can widen the implementation of national digital health recommended levels in many analytics and monitoring and evaluation reach of healthcare services, as some (such plans by aligning them with ICT and developing countries.2 research to inform the product design as patient monitoring and diagnostics) can broadband plans. Key enablers include and optimisation. The research also aims be delivered and managed remotely. It also setting outcome-based objectives to drive Mobile’s wide reach makes it an ideal tool to inform pricing strategies and define allows for greater and faster patient access execution and track progress; and policy for strengthening health systems and the value proposition of the mHealth to health information delivered via mobile. and regulation that promote investment for enabling improved healthcare delivery in services to the end-users and other digital health solutions. countries where there is a large, unmet digital health stakeholders as well as 2. Quality: Digital health enables faster and demand. Many developing nations have potential funders of the solutions. more effective coordination of care and At the same time, digital health over 90 per cent 2G coverage, which allows health professionals, and supports timely stakeholders need to stimulate government the delivery of health information services • Content development: The GSMA, with data sharing. investment by demonstrating how digital via basic mobile channels such as SMS, its global content consortium, developed health solutions help address national Unstructured Supplementary Service Data locally tailored, open source nutrition 3. Cost: The transition from paper to digital healthcare issues, especially in terms of (USSD) and Interactive Voice Response content for each market. Messages ensures that available health resources are broadening access, which is a key challenge (IVR). The coverage of 3G networks has were translated into local languages, used effectively where and when they are for emerging nations. also increased to over 80 per cent of the tested among key target audiences and needed the most. Mobile networks can also

population. As a result, mobile operators validated by the Ministry of Health for be a platform for solutions that strengthen 1 According to the World Health Organization’s 2015 have a key role to play as ICT and digital each market. monitoring systems and help prevent the report Tracking Universal Health Coverage. service partners for governments, health spread of infectious diseases. 2 The WHO’s critical threshold is 23 doctors, nurses and midwives per 10,000 inhabitants. providers and health tech companies. • Industry engagement: The mHealth programme works closely with health Unfortunately, few digital health and and mobile players across both the mobile health pilots are currently followed Programme Goals public and private sectors to ensure that by full-scale implementation due to a lack services not only become commercially The mNutrition Initiative, funded by UK Aid sustainable, but also deliver positive and implemented by the GSMA mHealth public health outcomes. programme, aims to boost maternal and Resources: newborn child health (MNCH) via mobile • Insights generation: The GSMA mHealth GSMA Report: Creating Mobile Health Solutions for Behaviour Change solutions that promote the adoption of programme delivers thought-leading GSMA Report: Scaling Digital Health in Developing Markets GSMA Report: mHealth Design Toolkit improved health and nutrition practices. By publications showcasing best practice GSMA Report: Mezzanine’s Stock Visibility Solution December 2017, mHealth services under and learnings from our work in the digital GSMA Report: Living Goods Uganda the mNutrition Initiative had reached over health sector. GSMA Report: Kilkari: A Maternal and Child Health Service in India 36 Mobile for Development Mobile Policy Handbook 37

Mobile Money

Background Programme Goals When banks and non-bank providers, Governmental bodies can also benefit in especially mobile operators, are allowed to multiple ways from using mobile money for Mobile money has done more to extend According to the World Bank’s Findex deploy mobile money services and establish government-to-person (G2P) and person- the reach of financial services in the last database, about 1.7 billion people remain partnerships that make commercial sense, to-government (P2G) transactions. These decade than bricks-and-mortar banking has unbanked, without access to safe, secure mobile money can be a catalyst for financial include lower cash-handling costs, reduced in the last century. This has been possible and affordable financial services. The sector development. It significantly expands security risks, minimal theft of funds, because mobile money leverages the GSMA Mobile Money programme helps financial inclusion through lower transaction increased transparency, instant transfers ubiquity of mobile phones, along with the mobile operators and industry stakeholders costs, improved rural access and greater and improved operational efficiencies. extensive coverage of mobile operators’ enhance the utility and sustainability of customer convenience. It can also provide networks and retail distribution channels, mobile money services to increase financial the infrastructure to support a broad range For mobile money to succeed, a level to offer customers a more secure and inclusion for these people. of financial services including insurance, playing field must be established via an convenient way to access, send, receive savings and loans. enabling policy and regulatory framework and store funds. The programme is working to develop that allows non-bank mobile money a robust, highly-interconnected mobile There is a strong opportunity for mobile providers to enter the market. As a result, mobile money has transformed money ecosystem where transactions are money providers to analyse personal Regulators should: the financial services landscape in digitised for sectors including retail, utilities, data to develop innovative services for many developing markets, by both health, education, agriculture and transport. consumers and ensure the long-term • Embrace reforms to enable operators to complementing and disrupting traditional Diversifying mobile money customer usage sustainability of the industry. Appropriate launch and scale mobile money services. bricks-and-mortar banking. Mobile money patterns to go beyond merchant payments data privacy frameworks will be critical to platforms now process more than $1 billion and draw in transactions such as cross- safeguard consumers’ personal data and • Allow market players to determine the a day and over 168 million additional border remittances and bulk disbursements promote trust. Enabling frameworks that timing, technical model and commercial accounts became active during 2017. As a can accelerate network effects and broaden support cross-border data flows, while model for all forms of interoperability. result, the number of registered customer the payments ecosystem. protecting personal data, will also become accounts rose from 554 million in 2016 to increasingly important to the growth • Allow market-led solutions to be reach 690 million by December 2017. To truly transform the financial lives of of the industry. implemented at the right time for underserved people, mobile money must consumers and providers. Globally, the percentage of providers who become a central monetisation mechanism Mobile money can also help governments offer mobile money services through a that can be used to carry out a diverse achieve their policy objectives of safe, It is also important that governments smartphone app has increased from 56 range of digital transactions. Making mobile secure and efficient payment systems. It refrain from imposing discriminatory taxes per cent in 2015 to 73 per cent as of June money more central to the financial lives also reduces the vulnerability of a country’s that target mobile money customers, 2017. Market figures clearly support the fact of users can help achieve greater financial financial system by lowering the risks as these types of taxes are likely to increase that mobile money is expanding financial inclusion, economic empowerment and caused by the informal economy and consumer costs and generate a headwind inclusion. Services are now available in economic growth. widespread use of cash. For example, against this promising, socially 85 per cent of countries where the vast it helps to bring more people from the beneficial service. majority of the population lacks access informal to the formal economy, which to a formal financial institution, while in Public Policy Considerations means that governments can increase 19 markets there are more mobile money transparency and make more informed accounts than bank accounts. Regulation has a major impact on the economic policy decisions. uptake of mobile money services. Evidence Furthermore, the mobile money industry from the Findex and GSMA studies shows has proven to be both viable and that enabling regulatory frameworks Resources: sustainable: as of 2017, there were 276 accelerates the development and adoption GSMA Mobile Money Programme website services in 90 countries. of digital financial services. GSMA Mobile Money Regulatory Guide website GSMA Report: 2016 State of the Industry — Mobile Money 38 Capacity Building Mobile Policy Handbook 39

GSMA Capacity Building

The GSMA Capacity Building programme law and financial services and many offers an extensive range of free hold advanced academic qualifications. training courses for policymakers and Through their work with the GSMA, they regulators. Since its launch in 2013, it has are in constant contact with governments rapidly established itself as the world’s and regulatory authorities around the premier provider of specialist telecoms world. As a result, they have a unique regulatory training. With over 70,000 understanding of the most pressing issues hours of training delivered to regulatory facing regulatory authorities today. professionals from over 150 countries around the world, it has already achieved Our courses further benefit from the unparalleled scale and reach. support of the GSMA’s own research arm, GSMA Intelligence, which draws on the Our courses help students understand expertise of a global team of researchers, and keep track of the latest policy and forecasters and analysts. This input helps regulatory developments around the ensure our courses are packed full of the world. By zooming in on real-world latest, robust market statistics, analysis examples of regulatory good practice and insights. Our training materials are from different regions, they walk students also accredited by the United Kingdom through the implications of various Telecommunications Academy. policy and regulatory approaches and the impact these have on the delivery The combination of engaging and of mobile services in their country. interactive courses, expert trainers and Core areas covered include spectrum, in-depth research and analysis, make competition policy, rural coverage, as well our programme a leader in training and as emerging topics such as 5G and how professional development for policymakers to leverage mobile technology to help and regulators across telecommunications governments achieve their Sustainable and related areas. Ultimately, our goal Development Goals (SDGs) targets. is to help policymakers and regulators positively shape the development and Our in-house policy experts, who develop reach of mobile services in their country, and teach our courses, come from a wide ensuring these services deliver the most range of backgrounds within telecoms, benefit to citizens. 40 Capacity Building Mobile Policy Handbook 41

How We Deliver Our Training

Our courses are offered in English, Our face-to-face courses are between On-Site students are able to study our courses French and Spanish, and are suitable for one and three days long, while our online If your organisation or department has anywhere in the world, progressing at professionals at any stage of their career. courses last between three and six weeks. a sufficiently large number of staff that their own pace and scheduling coursework Available both as face-to-face and online could benefit from our training, we can around work and family life. training, they provide policymakers and To learn more about our training deliver our courses on-site. This allows regulators with maximum flexibility in or to register for a course visit: your employees to receive their training at Via local partners how they study. the same place where they practice their The GSMA also delivers its courses www.gsmatraining.com skills and reduces or eliminates travel and through a range of strategic partnerships accommodation expenses. with academic institutions, development organisations, regulatory bodies and Courses Online training specialists. This ensures we All of our courses are available via our have the flexibility to deliver courses • 5G — The Path to the Next Generation online portal, placing students in control at a location near you. • Advanced Spectrum Management for of their own learning. Using this platform, Mobile Telecommunications • Bridging the Mobile Gender Gap • Children and Mobile Technology • Competition Policy in the Digital Age “The [Internet of Things] seminar was very well • Digital Identity for the Underserved attended by more than 50 senior level officers • Internet of Things from DoT, BSNL, MTNL and CDOT. It was well appreciated by the participants in terms of • Leveraging Mobile to Achieve SDG Targets content as well as delivery… the speakers' • Mobile Money for Financial Inclusion depth of understanding of the subject, and • Mobile Sector Taxation their ability to present the subject in an • Mobile Technology, the Environment interesting way were key factors in meeting and Climate Change the objects of the seminar… we look forward • Principles of Mobile Privacy to conducting many more such seminars • Radio Signals and Health on topics related to the latest telecoms • Responding to Disasters and technologies in collaboration with GSMA.” Humanitarian Crises Dr. Rajesh Sharma, Deputy Director General, Department • Unlocking Rural Mobile Coverage of Telecommunications, Ministry of Communications, India 42 Capacity Building Mobile Policy Handbook 43

Anna Teresa Glennert Aguilar Riedel

Planning Officer, Department of Information and Technical Affairs Officer, Bureau Telecommunicatie Communication Technology, The Philippines & Post (BT&P), Curaçao

What made you want to take your How have you used what you have How did you find out about the GSMA’s Were there any challenges you first GSMA Capacity Building course? learned during the courses? online courses? experienced while taking this course online? After one of my colleagues finished a I used my learning from the courses as I saw the courses online and subscribed course, and then took another, I was support for the technical research I have after my colleague recommended the I had to get used to the accents! The determined that I would also take my first conducted while formulating different Advanced Spectrum Management course. course is also intensive, so I had to manage course and fit it around my tasks here ICT policies. my time between my work and the course. at the office. Also, I find that taking the What made you want to take your courses offered by the GSMA is a great Can you give an example of how what first course? Can you give an example of how what way to refresh my knowledge and skills you have learned relates to issues you have learned relates to issues as an Electronics and Communications affecting the mobile telecommunications I wanted to gain more information about affecting the mobile telecommunications Engineer. They also help me to contribute sector in your country? the mobile side of spectrum management sector in your country? to our team as we develop policies. as we needed to plan spectrum allocations, Telcos are having difficulty putting up base and the course was exactly what I was I used the knowledge gained on the course What do you enjoy most about stations in subdivisions because some looking for. It was useful for my daily work to help prepare for conferences (I used my the courses? people fear that mobile radiation may pose and I was able to put what I had learned knowledge at a conference in Cuba, for a health hazard to humans, but as I learned from the course into use. example) and other aspects of my work, I really enjoy taking part in the different in my first GSMA course, Radio Signals and including planning spectrum allocations. online chat sessions where I can ask Health, there are no significant effects What did you like most about the mentor questions about the topic, on humans. the experience? What would you say to a regulator or especially those that I have trouble policymaker that was thinking of taking understanding. Also, using the forum in What would you say to a regulator or I was pushed to get involved and be active a course with GSMA Capacity Building? the online portal, I can exchange ideas policymaker that was thinking about in the course. For some courses, all you and learn from my classmates on the taking a course with us? do is listen, but you have to be proactive Definitely take the course, it is time course. I find it interesting when they share on GSMA Capacity Building courses. The well spent. You learn more about the information about things they are already I would recommend that they go ahead dedication of the GSMA team pushed the context, meet more people in the field, implementing in their country. with their plans to take courses with GSMA course forward. I also liked having context and understand the challenges other because the knowledge they will gain and in-depth answers to the topics countries are facing. Thank you to the from the courses will help them perform at hand. GSMA team for delivering these courses effectively in their role. as it is an effective way to learn, especially for smaller countries that do not have the same access to industry knowledge. 44 Mobile Initiatives Mobile Policy Handbook 45

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 over 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 of the public policy topics presented will have a mobile subscription, with in this handbook. around one billion subscribers added over this period. 46 Mobile Initiatives Mobile Policy Handbook 47

Future Networks

The mobile industry is currently laying cent reduction in the capital intensity the groundwork for the transition to fifth requirements for 5G. These reductions will generation (5G) technology. Building be vital in helping the industry achieve its on the achievements of 4G, future 5G target of making 5G available to a third of networks will help the mobile industry the world’s population by 2025. capture the huge opportunity presented by the Internet of Things (IoT), usher in an era Governments and regulators also have a of even faster mobile broadband and pave crucial role to play. By adopting national the way for ultra-reliable, ultra-low latency policy measures that encourage long- services, which may include exciting term, heavy investments in 5G networks technologies such as tactile internet, and by making sure sufficient harmonised augmented reality and driverless cars. spectrum is made available for 5G services, they can ensure future 5G infrastructure As operators begin to launch 5G networks, delivers significant benefits for their there is a need for close collaboration citizens. The decisions being made now between industry, policymakers and will have long lasting impacts for the future regulators to deliver on the promise of this and the technology’s ultimate success will next-generation technology. depend on governments and regulators prioritising its rollout. The GSMA is playing its part via its Future Networks programme. It provides In tandem with their exploration of 5G guidance on key innovations such as technologies, network operators are network slicing in 5G, while also working also continuing to upgrade their existing to boost population coverage of high- networks and transition to all-IP based speed broadband and reduce the capital services. This is important, not just to intensity required for the rollout of 5G ensure consumers and business can technology. The programme’s work on gain the maximum benefit from today’s infrastructure sharing and improvements advanced services, but also because IP- to radio networks, for example, has already based networks and services will ultimately helped to identify a potential four per act as the launch pad for 5G services. 48 Mobile Initiatives Future Networks Mobile Policy Handbook 49

5G — The Path to the Next Generation

Background But 5G is more than a new generation The GSMA aims to play a significant role in support significantly faster data speeds of technologies: it will usher in a new helping to shape the strategic, commercial and deliver enhanced capabilities. Mobile telecommunication has had a era in which connectivity will become and regulatory development of the 5G However, progressive refarming of phenomenal and transformational impact increasingly fluid and flexible, as 5G ecosystem, including areas such as the existing mobile bands should also be on society. Starting from the earliest days networks will adapt to applications and identification and alignment of suitable encouraged to support wider area 5G of first-generation analogue phones, every performance will be tailored precisely to spectrum bands. services. Governments and regulators can subsequent generational leap has brought the needs of the user. enable refarming and encourage heavy huge benefits to societies around the world Working closely with the mobile operators investment in 5G networks by supporting and propelled the ongoing digitisation of Currently, there are three key areas of pioneering 5G, the GSMA is also engaging long-term technology neutral mobile more and more segments of the global focus for 5G development and innovation: with governments and vertical industries spectrum licences with clear economy. The mobile industry is now (such as the automotive, financial services, renewal procedures. preparing to embark on the transition to Internet of Things (IoT). There is a need healthcare, transport and utilities sectors) fifth generation (5G) technology, which will for 5G to capture the huge opportunity to develop business cases for 5G. The GSMA believes that three key build on the achievements of 4G while also presented by IoT. Conservative estimates frequency ranges are needed for 5G creating new opportunities for innovation. suggest that by 2025 the number of to deliver widespread coverage and IoT devices will be more than double Public Policy Considerations support all use cases: sub-1 GHz, 1-6 GHz A range of industry, research, academic the number of personal communication and above 6 GHz. Higher frequencies — and government groups across the globe devices. As the ecosystem grows, the The GSMA regards 5G as a set of especially above 24 GHz — will be needed are working to define the technology mobile industry will be expected to requirements for future mobile networks to support superfast speeds in hotspots. for 5G. The next generation mobile support bespoke services across industry that could dramatically improve the Governments will need to support these technology will need to provide higher verticals and develop next-generation delivery of mobile services and support new higher frequency mobile bands at the throughput, lower latency and higher services that are not achievable with 4G a variety of new applications. The World Radiocommunication Conference spectrum efficiency. networks. mobile industry, academic institutions taking place from October to November and national governments are currently 2019. Lower frequencies will be needed to Between now and 2020, the year when Mobile broadband. With each actively investigating what technologies support wider area broadband access and 5G is expected to become commercially generational leap in mobile technology could be used in 5G networks and the IoT services. Exclusive licensing remains available, the mobile industry will continue there is a natural progression to faster types of applications these could and the principal and preferred regime for to take steps towards achieving these and higher-capacity broadband. Mobile should support. The speed and reach of managing mobile broadband spectrum goals by evolving existing 4G networks. broadband services using 5G technology 5G services will be heavily dependent on in order to guarantee quality of service Despite these enhancements to 4G, there will need to meet and exceed customers’ access to the right amount and type and network investment. However, the is still a need for 5G to meet the demands expectations of faster and more of spectrum. licensing regime in higher frequency of future services and platforms. By 2025, reliable access. bands, such as above 6 GHz, could be more 5G could account for over one billion Additional new spectrum will be varied than in previous mobile technology connections and 5G networks are likely to Ultra-reliable, ultra-low latency services. required for 5G services, especially in generations, to suit more flexible sharing cover one third of the world’s population. Superior speed, very high reliability and very high frequency bands, in order to arrangements. The impact on the mobile industry and its reduced latency will see 5G nurture new customers will be profound. services that cannot be supported on existing 4G networks. Some of the services being considered include tactile internet, Resources: virtual/augmented reality, driverless cars GSMA 5G website and factory automation. GSMA Blog: Five Things to Know About 5G GSMA Report: The 5G Era: Age of Boundless Connectivity and Intelligent Automation GSMA Report: 5G in China: Outlook and Regional Perspectives GSMA Report: Smart 5G Networks: Enabled by Network Slicing and Tailored to Customers’ Needs GSMA Public Policy Position: 5G Spectrum 50 Mobile Initiatives Future Networks Mobile Policy Handbook 51

IP Communication Services

Background • ViLTE. This enables operators to deploy Public Policy Considerations Interconnect. VoLTE, ViLTE, VoWiFi and a commercially viable, carrier-grade, RCS support interconnection of these IP communication is increasingly person-to-person video-calling service. To support the exponential growth in IP services between customers on different recognised as a natural evolution of core Like VoLTE, it is based on IP Multimedia traffic, large-scale investments in network mobile networks. In the case of voice, mobile services, and therefore a basic Subsystem (IMS) technology. capacity are required. Financing such they also support interconnection with requirement of doing business in the investments depends on predictability customers on fixed networks. future. The IP Multimedia Subsystem • VoWiFi. This allows operators to offer and the existence of a stable regulatory (IMS) has emerged as the preferred voice calling over WiFi, providing many environment. Where such an environment Lawful intercept. Mobile network technical means for transferring core of the same benefits of VoLTE. As of exists, future communications capabilities operators are subject to a range of laws mobile operator services to an all-IP July 2018, there were 61 VoWiFi services that are operator-led can be well aligned and licence conditions that require them environment because of its flexibility, cost- commercially available in 35 countries. with the regulatory requirements related to be capable of intercepting customer effectiveness and support for IP services to mobile telecommunications, and mobile communications (and sometimes also over any access medium. With 670 mobile • RCS. This marks the transition of network operators have the systems in retaining certain data, such as the time network operators having launched Long messaging from circuit-switched place to ensure compliance. and content of the communication, as well Term Evolution (LTE) networks, and LTE technology to an all-IP world, leveraging as the location, numbers or IP addresses coverage currently reaching just under the same IMS capabilities as VoLTE and Open standards. VoLTE, ViLTE, VoWiFi of the participants) for disclosure to law 80 per cent of the world’s population, ViLTE. RCS incorporates messaging, and RCS are currently specified, through enforcement agencies upon request. The the industry is now in a realistic position video sharing and file sharing, enriching a process of industry collaboration, as specifications for IP communications to make a global, interconnected IP the communication experience of industry standards for IP-based calling, are being developed so they support communications network a reality. IP consumers. As of July 2018, RCS was messaging, file and video-sharing services, the capabilities needed to meet lawful communications is comprised of Voice being offered by 55 mobile operators in based on IMS technology. interception obligations. over LTE (VoLTE), Video over LTE (ViLTE), 34 countries. Voice over WiFi (VoWiFi) and Rich Communication Services (RCS). The GSMA, via its Future Networks programme, is working with leading • VoLTE. This offers an evolutionary operators and equipment vendors path from circuit-switched 2G and 3G to accelerate the launch of IP-based voice services to all-IP packet-switched services around the world. The work of voice and includes a range of enhanced the Future Networks programme covers features for customers, such as high- the development of specifications, definition audio quality and shorter call assisting operators with the technical connection times. As of July 2018, 145 and commercial preparations for service operators offer voice over LTE services launches and resolving technical and commercially in 69 countries. logistical barriers to interconnect.

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 52 Mobile Initiatives Future Networks Mobile Policy Handbook 53

Voice over Long Term Evolution

Background In most markets, achieving full LTE coverage Public Policy Considerations VoLTE is an evolution of carrier-grade will take a number of years, thus requiring mobile voice services that have historically Consumers expect seamless carrier-grade partial reliance on legacy voice services. For Voice over Long Term Evolution (VoLTE) been provided using the circuit-switched voice services from mobile operators, voice services, the transition is facilitated by is a carrier-grade mobile voice service, assets of 2G and 3G networks. As such, irrespective of the type of technology used. the fact that VoLTE has been designed to making it distinct from other internet- regulators should not apply additional, or support the seamless handover of calls to based voice services. specific, regulations to VoLTE services. Since the introduction of digital mobile and from 2G and 3G networks. technologies in the early 1990s, carrier- Carrier-grade mobile voice services have In markets where mobile voice call grade public mobile voice services have VoLTE has a number of characteristics a number of specific characteristics. For termination is subject to regulatory control, been delivered via the circuit-switched that distinguish it from internet-based example, the use of mobile phone numbers the same approach should be adopted for capabilities of 2G and 3G networks. voice services. These include carrier- from national numbering schemes VoLTE, with a single rate applied across 2G, grade call quality and reliability, support means that customers can make calls to, 3G and 4G/LTE voice call termination. To keep pace with growing demand, mobile for emergency calls, and universal or receive calls from, any other phone operators are now upgrading their networks interconnection with other ‘carrier- number in the world. Carrier-grade mobile using a fourth-generation IP-based operated’ voice services across the globe. voice services also use dedicated network technology called Long Term Evolution By contrast, the majority of internet-based capabilities (technically known as bearers) (LTE). LTE networks support a new carrier- voice services are not managed for service to assure end-to-end service quality grade voice capability called Voice over quality and may be restricted to closed user and reliability. LTE (VoLTE) that offers an evolutionary groups. path from circuit-switched 2G and 3G voice services. VoLTE includes a range of In some jurisdictions, interconnection enhanced features for customers, such as of carrier-grade mobile voice services is high-definition audio quality and shorter unregulated and carried out pursuant to a call connection times. range of different commercial agreements. In other jurisdictions, regulated mobile Some operators now have LTE networks call termination rates apply. These rates that offer full national coverage and are typically use a time-based charging using VoLTE for voice calls. Other operators mechanism and their levels are set using still only have partial LTE network coverage. a number of different cost-oriented methodologies.

Resources: GSMA Future Networks — Voice over LTE website ECN Magazine: VoLTE — What Makes Voice over IP ‘Carrier-grade’? 54 Mobile Initiatives Mobile Policy Handbook 55

Internet of Things

The Internet of Things (IoT) is set to have a We are set to see rapid growth in IoT over huge impact on our daily lives, helping us the coming years. According to GSMA to reduce traffic congestion, improve care Intelligence, the number of licensed cellular for the elderly, create smarter homes and IoT connections is expected to exceed offices, increase manufacturing efficiency three billion by 2025. However, this will and more. still represent a small portion of the overall market, as the total number of IoT devices IoT involves connecting devices to the will have grown to 25.2 billion by 2025. 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 to basis and in turn deliver positive impacts to define industry standards, promote both the economy and broader society. interoperability and encourage governments to create a supportive environment that will speed the growth of IoT globally. 56 Mobile Initiatives Internet of Things Mobile Policy Handbook 57

Connected Drones (UAVs)

Background Public Policy Considerations Mobile connectivity can help establish the • Mobile connectivity can assist law controlled and safe operation of drones by enforcement by enabling identification The development of Unmanned Aerial New regulatory frameworks for drones ensuring secure, high-quality connectivity and tracking of drones. Vehicles (UAVs), commonly called drones, should ensure that they can, where between drones and their control centres. has advanced at a rapid pace in recent required, be equipped with SIM cards This connectivity delivers a number of • The mobile industry has a strong track years. Military use was the early focus of and a communications modem so the capabilities that can benefit the drone record of implementing privacy and data these developments, but the potential for drone ecosystem can benefit from ecosystem: protection measures. drones to be used within a civilian context mobile connectivity. for innovation in both new and existing • Mobile connectivity can form part of In order to ensure existing licensed services is now widely recognised. This would deliver many benefits to the unmanned traffic management solutions mobile spectrum is available for drone drone industry: and enable no-fly zones. connectivity, regulatory authorities Use cases range from filming for news responsible for spectrum and regulators reporting and entertainment, to inspecting • Mobile networks provide a global, • A mobile-based solution could be responsible for drones need to cooperate key infrastructure such as power plants, interoperable and scalable platform an effective way to enable drone to remove barriers that could hinder the roads, buildings, cell towers and power that allows the drone market to develop identification and authorisation services, use of existing licensed mobile spectrum lines. In agriculture, drones are already and benefit from the existing mobile as identity verification and management for drone connectivity. being used to produce timely crop surveys ecosystem. is already a key component of to help boost yields. mobile services. • Many mobile operators already run 4G The rapid development of this market LTE networks which meet very high- means regulators are struggling to keep bandwidth, low-latency requirements, pace. However, regulatory efforts are now while at the same time offering huge focused on the creation of frameworks scalability and exceptional quality that will allow the sector to continue to of service. develop and innovate, but at the same time limit risks related to safety, privacy • The mobile industry already works and data protection. The fact that drones collaboratively with Internet of Things fly across borders adds an additional layer (IoT) partners throughout the value of complexity to these efforts. chain to embed privacy and security into IoT technologies. As a result, the Mobile operators are a key enabler for drone market can benefit from existing drones, helping to unlock their potential. initiatives such as the GSMA’s By providing the connection between Security Guidelines and Privacy drones and their control centres they by Design Toolkit. ensure reliable communication with the drone on its flight path and support the transfer of data between the drone and its control centre.

Resources: GSMA Internet of Things — Drones website 58 Mobile Initiatives Internet of Things Mobile Policy Handbook 59

Connected Vehicles

Background The primary platform for these activities is Public Policy Considerations around the world regulators have set aside the Connected Vehicle Forum. Established a portion of spectrum for ITS, typically in The automotive world is about to undergo by the GSMA, it promotes dialogue Connected vehicle and intelligent transport the 5.9 GHz band. This generally includes the single greatest revolution since its across all stakeholders in the automotive applications have the potential to bring a dedicated portion for safety-related inception. Autonomous vehicles and and C-ITS ecosystem and looks to find substantial benefits to consumers, communications between vehicles, Intelligent Transport Systems (ITS) are innovative ways mobile technology can be including making travel safer, reducing infrastructure and people. set to transform the efficiency, comfort, leveraged by these sectors. congestion and providing real-time safety and environmental impact of information to passengers. Regulators should adopt a technology- road transport. One example of this is remote neutral approach to this spectrum, provisioning of the GSMA’s Embedded Connected vehicle applications and rather than mandating or preferring one The first fully autonomous-capable cars SIM Specification. This provides a single services have a number of distinctive approach. Equally, it is important that have been launched and according to data mechanism for the remote provisioning features. They need to operate globally, technology-neutral spectrum licences are from Machina Research the number of and management of machine-to-machine support very long ‘device’ lifetimes, adopted as this will allow existing mobile factory-fit connected vehicles worldwide (M2M) connections, allowing ‘over-the- integrate with local intelligent transport bands to be refarmed for 5G, enabling is expected to reach 366 million by 2025. air’ provisioning of an initial operator solutions and comply with local security, lower-latency connectivity, and thus In Europe, eCall regulation means that, as subscription, as well as subsequent data protection, privacy and improved response times for emergencies. of March 2018, all new models must now changes of subscription from one operator emergency regulations. support eCall. In the event of an accident, to another. Furthermore, spectrum in the 3.4-3.8 GHz an eCall-equipped vehicle automatically Policymakers and regulators must range should not be set aside for safety- calls the nearest emergency centre and Mobile technology is also set to play appreciate and understand these based vehicle-to-vehicle communications, sends the exact location of the crash a vital role in ITS by providing Cellular differences if they are to implement as this spectrum is critical for future site, allowing for a rapid response by Vehicle-to-Everything (C-V2X) services. policies that allow global business models commercial 5G services in many countries emergency services. Standardised by 3GPP, C-V2X supports to develop and ensure that those rules around the world. This also highlights connectivity between devices (whether in apply consistently to all players in the the need for regulators to work with the Through its IoT programme, the GSMA vehicles, roadside infrastructure or mobile value chain. mobile industry to support connected is actively engaging with vehicle devices) as well as between devices and vehicles in future spectrum planning. manufacturers, mobile network operators, networks. C-V2X is being developed within As ever more cars become connected, For example, it is essential that sufficient SIM vendors, module makers and the the traditional mobile ecosystem and spectrum policy related to intelligent spectrum below 6 GHz is made available wider Cooperative Intelligent Transport brings all the advantages and capabilities transport systems will become increasingly as this spectrum travels further and is System (C-ITS) ecosystem to facilitate that traditional cellular networks offer: important in the future. In many countries better suited to the wide-area connectivity the development of current and future security, privacy, interoperability as well as required by connected cars. connected-vehicle solutions. an innovation-oriented and future-proofed ecosystem (5G technology). The 5G Automotive Association (5GAA) — whose 60 members include the main vehicle manufacturers — support C-V2X.

Resources: GSMA Report: Safer and Smarter Driving — The Rollout of Cellular V2X Services in Europe GSMA Report: Cellular Vehicle-To-Everything (C-V2X) — Enabling Intelligent Transport 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 60 Mobile Initiatives Internet of Things Mobile Policy Handbook 61

Privacy and Data Protection for IoT

Background However, IoT services aimed at consumers Public Policy Considerations Most importantly, protections should be are likely to involve the generation, practical, proportionate, and designed The Internet of Things (IoT) offers distribution and use of detailed data To realise the opportunities that the IoT into IoT services (privacy by design) to significant opportunities and potential about those consumers. For example, offers, it is important for consumers to encourage business practices that provide for data-driven innovation to achieve a smart home appliance may use data trust the companies who are delivering IoT transparency, choice and control for economic, social and public policy about a person’s eating or exercise habits services and collecting the data generated individuals. objectives, and ultimately improve to draw inferences about that person’s by them. The mobile industry’s view is that people’s daily lives. For example, the IoT health and steer them towards healthier consumer confidence and trust can only be IoT services are typically global in nature will enable a raft of new applications and lifestyles, or develop a profile based fully achieved when users feel their privacy and a mobile operator is often only one of services that will empower consumers to on their shopping habits to offer them is appropriately respected and protected. many parties in a delivery chain that may monitor their health, manage their energy personalised money-off vouchers. include a host of others, such as device consumption and generally benefit from There are already well-established data manufacturers, search engines, online smart home and city solutions. These These types of IoT services and devices protection and privacy laws around the platforms and even the public sector. applications have the potential to drive have the potential to impact people’s world. Where these data protection Therefore, it is key that privacy and data a range of positive outcomes, including privacy and may be subject to general regulations and principles exist, they protection regulations apply consistently improved traffic management, lower data protection and privacy laws. Where can also be applied to address privacy across all IoT providers in a service- and pollution levels and healthier lifestyles. IoT services are provided by mobile needs in the context of IoT services and technology-neutral manner. This will help operators they will also be subject to technologies. It is vital that governments ensure a level playing field for all industry Many IoT services will be designed to telecommunications-specific privacy and apply these frameworks in ways that players so they can focus on building trust create, collect or share data. Some of this security rules. Nevertheless, as consumer promote self-regulation and encourage and confidence for end users. data (e.g., data about the physical state of IoT services gain in popularity, more the adoption of risk management-based machines or weather conditions) may not consumer data will be created, analysed approaches to privacy and data protection. impact on consumers’ privacy and as a in real time and shared between multiple result won’t be considered personal data. parties across national borders. Therefore, companies throughout the IoT ecosystem have a responsibility to build trust among consumers by ensuring their privacy is respected.

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 62 Mobile Initiatives Internet of Things Mobile Policy Handbook 63

Smart Cities and IoT

Background Mobile operators are at the heart of this • Communicate effectively the • Make city data available to promote change, offering solutions based on mobile objectives and benefits of smart transparency and stimulate innovation. The world’s population is increasingly IoT networks that are specifically designed city projects. Establishing a dialogue While protecting individuals’ privacy, concentrated in cities, with more than half to serve these ambitions. By supporting with the local community is an city managers should look to make data now living in urban areas, according to low-cost, connected devices that offer long essential step to ensure the design and accessible to promote transparency data from the World Health Organization battery life and can be rolled out at huge functionality of effective smart city and stimulate the creation of innovative (WHO). This trend is set to continue, as scale, mobile operators are able to serve the services. Digital media can help involve services. Some cities already have the WHO forecasts that the global urban next generation of cities and offer solutions citizens in each step of the service portals that make data available in population will grow approximately 1.63 per that make it easier to add connectivity and lifetime and highlight tangible benefits accessible formats. cent per year between 2020 and 2025 and control to critical infrastructure. that a smart city project will deliver. 1.44 per cent per year between 2025 and • Explore new models of funding. Smart 2030. This will put additional stress on city • Promote technology investment in city projects require significant initial infrastructure and services through increased Public Policy Considerations open and scalable systems. A smart investment. Smart city managers should congestion, pollution and higher costs of city should avoid relying on proprietary explore public-private partnerships or living. The infrastructure of today’s cities is Policymakers and regulators looking to technologies tied to a single provider. alternative finance mechanisms, such as typically not designed to deal with continued foster an environment that encourages Standards-based solutions are an municipal bonds, development banks increases in population densities. As a result, investment in smart cities should: essential foundation for the long-term or vendor finance. IoT technologies it is very difficult to redesign existing cities in evolution of a smart city. and smart city applications can most parts of the world to cope. • Adopt an agile institutional framework generate substantial socio-economic and governance mechanisms. A smart • Comply with privacy and security best benefits for citizens and businesses. This is why national and local governments city needs an institutional framework practice, rather than defining new Policymakers should make the most are increasingly interested in developing that ensures coordination and support service-specific rules. To safeguard of this opportunity, by designing and smart cities that use mobile communications throughout the lifetime of each project. privacy and security, smart cities need implementing smart city projects with technology and the Internet of Things (IoT) The smart city agency will have to to draw on industry best practice and a long-term vision, that are defined to solve many of the challenges cities face be agile and, ideally, independent comply with national laws. Local city around citizens’ needs, are managed today. For example, smart city technology from traditional city departments. It managers should resist the temptation through agile governance structures, can to tackle traffic congestion, improve should, however, be accountable to a to define their own data privacy and are based on open and scalable systems public transport infrastructure, create governance body on which the city security standards for services they and promote a culture of openness, safer streets with better lighting, and add institutions are represented. launch and adopt in their own city. innovation and transparency. intelligence to utilities infrastructure via smart meters and smart grid solutions. It also • Appoint a chief information officer opens up new commercial and investment (CIO) or smart city director with opportunities for cities. strategic vision. A strong vision 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.

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 GSMA Video Case Study: Smart City Tainan 64 Mobile Initiatives Mobile Policy Handbook 65

Identity 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’. Digital content, services and interactions identity, putting mobile at the heart of the have become a part of daily life for digital identity management ecosystem. billions of people, driven by expanding With mobile operators’ unique advantages Ubiquitous, personal and portable; sensitive to The mobile device access to broadband and increasingly — such as the SIM card, the registration location and capable of being disabled and locked. affordable mobile devices. The use of processes, contextual network information data and user authentication are requisite and fraud mitigation processes — they elements of being online. As a result, it have the ability to provide strong customer Real-time strong authentication; encryption for The SIM card is becoming increasingly important that authentication and interoperable, storing certificates and other secure information. users have a digital identity to be able federated identity management solutions to securely authenticate themselves to enable consumers, businesses and online in order to carry out tasks governments to interact in a private Strong registration and fraud-detection such as accessing their accounts and and secure environment. Know your customer (KYC) standards processes in place. subscriptions or making purchases. The GSMA is working with network The digital economy is predicated on operators and other mobile ecosystem Robust regulatory trust. Interactions — whether they be players, as well as governments, banks Established systems to handle personal data safely. social, commercial, financial or intellectual and retailers, to help roll out mobile requirements — require a proportionate level of trust identity solutions. The GSMA is also in the other party or parties involved. working with industry standardisation Today consumers are seeking secure and bodies such as the Open ID Foundation Sophisticated customer care processes Customer service seamless access to digital services, while to ensure support and interoperability for and billing relationships. safeguarding their privacy. As a result, global standards. online service providers must reduce friction in digital transactions, while still Together, mobile operators are bringing Verified subscriber data Ready for mobile identity. maintaining a seamless, secure user mobile identity solutions to market. These experience. Increasingly, governments are solutions support huge scale, via a set regulating for and demanding electronic of consistent technologies that benefit identity solutions that leverage global from low barriers to entry right across Secure by design, a mobile network can disable standards to ensure interoperability, the digital identity ecosystem. These The network a device’s SIM card and flag the device as lost or stolen in a global database. privacy, scale and cost effectiveness. solutions also offer a seamless consumer experience that is scalable, safe and To this end, the mobile industry is secure and puts users in control of their Ensures that the user has a way to report events, such as Business processes developing a consistent and standardised data and personal information. lost/stolen devices or an account compromise/takeover. set of services for managing digital 66 Mobile Initiatives Identity Mobile Policy Handbook 67

Mobile Connect

Background of interoperable and commercially Public Policy Considerations Governments and regulators should sustainable mobile identity services via create a digital identity plan that Mobile Connect is a secure digital identity Mobile Connect. Mobile identity services inevitably acknowledges the central role of mobile in framework developed by the GSMA in involve multiple devices, platforms and the digital identity ecosystem. The mobile cooperation with leading mobile operators. The GSMA’s public policy activities organisations that are subject to differing industry is committed to working with Simply by matching the user to their mobile assist the GSMA Identity programme via technical, privacy and security standards. governments and other stakeholders to phone, Mobile Connect allows them to advocacy and pilot initiatives to support Increasingly governments are using establish trust, security and convenience log-in to websites and applications quickly the use of Mobile Connect in regulated mobile technology as a key enabler to in the digital economy. without the need to remember passwords sectors, such as finance, e-government deliver identity services in their digital and usernames. It is safe, secure and and e-health. plans, thereby accelerating inclusion and The mobile industry has a proven track no personal information is shared reducing the digital divide. However, for record of delivering secure networks without permission. For example, in February 2018, the mobile identity solutions such as Mobile and has developed enhanced security GSMA completed the second phase of Connect to achieve wide adoption and the mechanisms to meet the needs of The key benefits of Mobile Connect include: a pilot that used Mobile Connect within greatest impact on the economy, a number other industry and market sectors. The the framework of the EU Regulation on of public policy issues must be addressed: implementation and evolution of these • Ease of use, as it employs the user’s Electronic Identification, Authentication security mechanisms is a continuous mobile phone for authentication, there is and Trust Services (eIDAS). The report, • Identify and assess existing legal, process. The mobile industry is not no requirement to use passwords. issued upon completion of the trial, regulatory and policy challenges and complacent when it comes to security provides insights into operating within barriers that affect the development of issues and the GSMA works closely with • Secure and strong customer eIDAS and offers recommendations on mobile identity services. the standards development community authentication (as there are no how Mobile Connect can support the to further enhance the security features passwords to steal, it improves the growth of these services. • Leverage best practice and advances in used to protect mobile networks and user experience). technology to foster the deployment of their customers. In keeping with the priorities of many wide-scale mobile identity services and • Adds security and trust into digital governments, Mobile Connect solutions transactions. In summary, the mobile industry, via transactions (as it confirms the user’s focus on privacy and preserving citizens’ Mobile Connect, offers an identity location, identity and usage). trust. For example, in line with the EU • Engage with mobile operators and and authentication experience that is General Data Protection Regulation the wider digital identity ecosystem aligned with best practice in the private • Protects privacy (as the operator (GDPR), Mobile Connect adopts the to facilitate greater collaboration sector, but uses mobile technology confirms credentials and the user gives principle of privacy-by-design, as it seeks between the public and private sectors to leapfrog legacy infrastructure and consent for sharing of this information). to ensure that an individual’s identity and encourage interoperability economic barriers to deliver secure attributes are used by digital services in and innovation. digital transactions. • Simple and cost effective to deploy. a secure way that respects and protects their privacy. To date, 60 operators have deployed Mobile Connect across 30 countries, Another key focus of the programme making it available to nearly three is aligning Mobile Connect with the Resources: billion customers. requirements of the EU’s revised Payment Mobile Connect website Service Directive (PSD2). This requires GSMA Identity website Mobile Connect is supported by banks to open their APIs to authorised GSMA Report: eIDAS Pilot the GSMA Identity programme. The financial technology companies and use Mobile Connect Privacy Principles Mobile Connect: High Security Authentication programme’s strategic goal is to enable strong customer authentication for digital GSMA Report: Mobile Identity — A Regulatory Overview operators to play a significant role in the payments. GSMA, World Bank & SIA White Paper: Digital Identity — Towards Shared Principles for Public and Private digital ecosystem through the provision Sector Cooperation 68 Business Environment Mobile Policy Handbook 69

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 formally agreed industry positions. As the operators are still subject to regulations mobile industry continues to roll out 4G designed for the ‘voice era’. These rules networks and initiate 5G trials, the need and obligations restrict their ability to for pro-investment policies and innovate, invest and compete on equal modernised regulatory regimes has terms in the digital ecosystem. never been greater. 70 Business Environment Mobile Policy Handbook 71

Policies for Progress

Resetting policy and regulation to drive the digital economy

From shopping and entertainment to deployment will deliver the best outcomes Regulation — to focus on the area most The good news is that policymakers managing household finances, digital for society and the economy. If regulatory applicable to this handbook — needs to recognise the need to change. In many technologies have fundamentally altered policies and institutions fail to adapt, be rethought for the digital and mobile jurisdictions, such as the European human behaviour, and consumers markets can become distorted in ways age. However, reform has not kept pace Union, reforms are underway that will presented with the opportunity have been that harm competition, slow innovation with the converged and highly dynamic protect competition and consumers quick to integrate digital tools into their and, ultimately, deprive consumers of the digital ecosystem. Emerging technologies without impeding social and economic daily life. Many governments, recognising benefits of technological progress. are driving new business models, blurring progress. We must not allow tomorrow’s the value of mobile to society, have the boundaries between once-distinct technologies to be stifled by yesterday’s implemented bold policies to cultivate Figure 1 identifies four areas of policy markets. Regulatory systems developed regulations. By updating the regulatory the digital economy, while extending action related to network investment, during the early years of mobile telecoms framework, policymakers can ensure that connectivity to underserved communities. regulation, promoting the digital economy are still in place in many countries, and government and industry are aligned and demonstrating digital leadership.1 such regulation can actually do harm by to create a growing and inclusive digital A holistic policy framework that reflects slowing innovation and technological and society for all. the changing digital landscape while market advances today. reducing costs and barriers to network

Figure 1 — Policy levers to promote an inclusive digital economy

Encourage Network Modernise Promote Digital Demonstrate Digital Investment Regulation Economy Leadership

Implement a broadband policy Adopt functionality-based, Support data security and privacy Encourage the use of digital IDs with clear goals technology-neutral regulation

Favour ex-post approaches over ex-ante Support infrastructure deployment Push digital literacy and lifelong learning Support digital financial infrastructure prescriptive regulation

Focus on spectrum allocation and use, Apply regulations consistently across Encourage the digitalisation of companies Introduce digital government services not auction revenues the digital ecosystem

1 GSMA Report: Embracing the Digital Revolution — Policies for Building the Digital Economy (February 2017) 72 Business Environment Mobile Policy Handbook 73

Base Station Siting and Safety

Background Debate Industry Position Base-station exposure guidelines should be aligned with international standards Mobile services are a key enabler of socio- What antenna permitting Governments that enable mobile as recommended by the World Health economic development, and achieving processes should governments network investment and remove Organization (WHO) and International ubiquitous access to mobile services for implement to avoid undue delay barriers to the deployment of Telecommunication Union (ITU). citizens is a major government policy in infrastructure installation? network infrastructure will accelerate Additional arbitrary restrictions related to objective in most countries. Mobile the provision of mobile services to environmental impact should be avoided. operators often have roll-out obligations their citizens. in their market area to ensure widespread What reference point should be Infrastructure costs place a high threshold national coverage. used by governments to define By defining explicit, nationally consistent on entry into the mobile sector. If policies safe EMF exposure limits? planning approval processes for mobile are short-sighted, and if taxes and licence To deliver continuous mobile coverage base stations, governments can avoid fees are not in keeping with actual market in dense urban areas and across rural lengthy delays in network deployment. dynamics, then operators may not have expanses, mobile network operators must How can a balance be struck We support mechanisms that reduce the means, or the will, to roll out new build and manage an array of base stations between national objectives for bureaucratic inefficiencies, including technologies and to reach rural areas. — free-standing masts, rooftop masts mobile connectivity for citizens and exemptions for small installations, Such policies delay the social and longer- and small cells — equipped with antennae the decisions of municipalities? colocations or certain site upgrades, term economic benefits experienced by that transmit and receive radio signals, ‘one-stop shop’ licensing procedures citizens. providing voice and data services to their and tacit approval. Governments can customers in the area. The deployment Can processes be streamlined for lead by example by improving access to of 5G will include the greater use of small the approval of small cell antennae government-owned land and buildings. cells to provide high-capacity and low- and modifications to existing sites latency connectivity. to achieve the necessary network densification? 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 Resources: in some countries leads to significant GSMA EMF and Health website delays and cost variances. GSMA Base Station Planning Permission in Europe website World Health Organization Electromagnetic Fields website FCC Initiative: Leading the World Toward a 5G Future ITU-T K.Suppl.9 on 5G Technology and Human Exposure to RF EMF ITU-T K.Suppl.14 on The Impact of RF-EMF Exposure Limits Stricter than the ICNIRP or IEEE Guidelines on 4G and 5G Mobile Network Deployment GSMA Report: 5G, the Internet of Things (IoT) and Wearable Devices: What do the New Uses of Wireless Technologies Mean for Radio Frequency Exposure? GSMA: 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 GSMA Report: Delivering the Digital Revolution 74 Business Environment Base Station Siting and Safety Mobile Policy Handbook 75

Facts and Figures

Radio Frequency Policies for Selected Countries

RF Limit at Requirement Exemptions Consultation RF Limit at Requirement Exemptions Consultation Location Location Country 900 MHz for RF or simplified during siting Country 900 MHz for RF or simplified during siting restrictions restrictions (W/m2) licensing procedures for... process (W/m2) licensing procedures for... process

Compliance Small antennae, Compliance Australia 4.5 None Yes Kenya 4.5 Changes None Yes declaration changes declaration

Brazil 4.5 Approval – 50m a Local Malaysia 4.5 Approval Small antennae None Yes

Small antennae, Compliance Small antennae, Canada 2.7 Approval None Yes Netherlands 4.5 None Yes changes declaration changes

Small antennae, Compliance Small antennae, Chile 4.5/1 Approval >50m b Yes New Zealand 4.5 None Local changes declaration changes

Kingdom of Compliance Egypt 4 Approval – 20m c No 4 – None No Saudi Arabia declaration

Voluntary, Small antennae, Compliance France 4.5 Approval to minimise Local South Africa 4.5 – None Local changes declaration exposure d

Small antennae, Small antennae, Germany 4.5 Approval None Yes Spain 4.5 Approval None Local changes changes

Compliance None nationally, g India e 0.45 – No Turkey 0.18 Approval – None Local declaration local variation

United Compliance Small antennae, Italy 1/0.1 Approval Small antennae Lower limits f Yes 4.5 None Yes Kingdom declaration changes

Small antennae, Japan 6 Approval Small antennae None Local United States 6 Approval None Local changes

a 50m around hospitals, schools and homes for old people b ICNIRP with lower limit in urban areas and in ‘sensitive areas’ c Not within 20m of schools and playgrounds d Recommendation to minimise exposure in schools, day-cares or healthcare facilities located within 100m e Adopted ICNIRP in 2008 and changed to 10 per cent of ICNIRP on 1 September 2012 f Lower limit in playgrounds, residential dwellings, schools and areas where people are >4 hours per day g One installation; total exposure must not exceed four per cent of ICNIRP 1998 76 Business Environment Mobile Policy Handbook 77

Competition

Background Current competition policy is also being Industry Position Otherwise, services that are in competition challenged by the competitive advantage with each other may end up being Mobile phones are the most widely adopted conferred on some companies through their The mobile industry supports competition regulated differently. For example, players consumer technology in history. A large ability to collect and analyse large troves of as the best way to deliver economic growth, that adopt traditional, better understood part of this success can be attributed to data. This, combined with powerful network investment and innovation for the benefit business models may find themselves how competition in the mobile industry has effects and the tendency for markets to of consumers. Excessive regulation stifles subject to enhanced scrutiny. helped drive innovation. tip in favour of dominant platforms, can innovation, raises costs, limits investment harm consumers, hinder competition and and harms consumer welfare through Taking into account these new types of The rise of the digital economy and stifle innovation. The ability of competition the inefficient allocation of resources, competitors when conducting market explosive growth in smartphone adoption policy and enforcement to deal with issues particularly spectrum. assessment reviews may show that there have brought innovation and disruption arising in data markets is therefore key to is a much greater level of competition in to traditional mobile communications the competitive development of the whole To ensure that competition and innovation communication services markets than is services. These changes are also impacting digital economy. thrive, it is essential that policymakers currently recognised by regulatory and existing policy frameworks and challenging create a level playing field across the competition authorities. This type of competition policy (which includes digital ecosystem. All competitors analysis could demonstrate the potential government policy, competition law and Debate providing the same services should be for regulatory policy goals to be achieved economic regulation). subject to the same regulatory obligations, through competition law, with the result How should markets be defined or absence of such obligations. This should that ex-ante regulation could be lessened, Despite the influence that new market in the digital age? be achieved through a combination of or may no longer be needed. dynamics are having on the mobile deregulation and the increasing use of sector, the industry is still subject to the horizontal legislation to replace industry-, Indeed, it is a basic principle in economic contradictions of a legacy regulatory How can standard competition technology- or service-specific rules. regulation that regulation should not be system. This has resulted in services that are tools be applied in the digital age? imposed if competition law is sufficient in competition with each other — such as Regulators and competition authorities to deal with the issues identified. As a voice services offered by mobile operators must fully recognise the additional result, a degree of deregulation of licensed and those offered by internet players — Are traditional significant market dynamic competition that exists in the providers is likely to be justified. Also, there being regulated differently. power (SMP) access remedies digital age. Internet players adopt new is potential for competition law itself to be still appropriate? and different business models to offer improved, to make it more effective. The These differences can be seen in how services to customers. Examples include GSMA published a report titled Resetting economic regulation (ex-ante) and advertising-supported services that make Competition Policy Frameworks for the competition law (ex-post) are applied use of sophisticated internet analytics. Digital Ecosystem. This sets out 15 detailed to the sector. For example, a regulator’s Regulators and competition authorities recommendations to adapt competition jurisdiction may be limited to the need to understand these models, and policy to the challenges of the digital age, telecommunications sector, and not extend map their competitive impact before and is summarised on the following pages. to internet players. As a result, regulators imposing regulatory obligations or often fail to take wider market dynamics competition law commitments. into account during the evaluation and decision-making process. Equally, a failure to understand the complex value chain can affect how competition law is applied. 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 GSMA Report: The Data Value Chain 78 Business Environment Competition Mobile Policy Handbook 79

Deeper Dive Deeper Dive

Competition in Digital Markets Resetting Competition Policy Frameworks: Recommendations

The global economy is undergoing a major transformation. The rapid take-up of technologies The GSMA advocates that governments adopt the following recommendations to ensure including mobile communications, digital platforms, Big Data, cloud computing and social their competition policy frameworks remain relevant for dealing with issues of abuse of media are changing the nature of products and services and the ways people interact. This market power and market failures in the digital economy. transformation disrupts existing business models and industries, while offering substantial potential to enrich lives and raise living standards.

Market deﬁnition The total welfare Ex-ante and Characteristics of the Digital Economy and market power standard ex-post regulation

Dynamic Multi-sided Network Eects 1. Adjust existing tools to 8. Adapt to a total waves of investment, 11. Review the markets and and economies of scale account for speciﬁc features welfare standard innovation and thresholds for platforms for digital services of digital markets to support technology long-term ex-ante regulation productivity to ensure balance between 2. Focus on actual substitution growth and higher Quality Big Data Broader Markets patterns living standards regulation and more important to as a key and blurring of investment risks consumers than price competitive factor traditional boundaries 3. Use alternative tools 9. Focus on dynamic to capture the main eect when 12. Focus ex-ante determinants of consumers’ assessing mergers regulation on switching behaviour and competition in enduring market Competition in digital markets is different from competition in traditional markets. It has digital markets power the following specific features: 4. Ensure market deﬁnition is suciently forward-looking, and revise and adapt policies 13. Ensure regulation • Waves of investment and innovation and rapid technological progress. to fully capture changes in is streamlined and 10. Use better the relevant market consistent with tools to assess competition law • Quality and product features that are often more important to customers than price. eciencies 5. Focus on alleged • Winner-takes-all outcomes where new entrants offering innovative products anticompetitive conduct and its likely eects rather or services may be able to leapfrog established firms. than inferring market power Institutional arrangements from market structure • Economies of scale and strong network effects in the supply of digital services. 6. Assess the extent to 14. Adopt interim measures to accelerate • Multi-sided markets and platforms, with distinct groups of users on the different sides which Big Data confers ex-post enforcement and mitigate potential market power benefitting from the presence of the other. harm from anticompetitive conduct

7. Maintain a high threshold • Large-scale data gathering and analysis, with the potential for anticompetitive effects, for intervention based on 15. Reassess institutional arrangements especially where it contributes to the quality of service. collective dominance

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. 80 Business Environment Mobile Policy Handbook 81

Efficient Mobile Market Structures

data services requiring ever increasing responsible for significant reductions in Background Some regulators have used spectrum bandwidth means constant investment in unit prices), leading to improvements caps — limits on the amount of spectrum new capacity and technology is needed. in quality and driving service innovation. From the outset, mobile markets have been one entity can hold — to influence market characterised by a vibrant, competitive structure, however, spectrum caps can Positive spill-over effects in the • As the market moves from voice to market structure that drives investment generate unintended consequences wider economy data, the global volume growth rate and innovation. including inefficient allocations of spectrum on mobile networks is accelerating. and/or reduced incentives to invest, • Improvements in digital infrastructures This calls for more concentrated market Today, demand for robust, high-speed, ultimately resulting in poor outcomes for support economic growth by positively structures than in the past in order to high-quality mobile broadband continues to consumers, and as such they must be affecting productivity across the meet the investment challenge and grow. This drives mobile operators to make considered carefully. whole economy. drive mobile data unit prices down so large investments in network infrastructure as to keep the demand for mobile data and services at regular intervals to provide At the same time, competition authorities Greater benefits than network sharing services growing. consumers with improved offerings at lower tasked with assessing the impact of costs. For example, while operators are proposed mobile mergers must take full • Competition authorities have often Effects of remedies on investments continuing to invest in their 4G networks, account of the dynamic efficiencies (and argued that network sharing represents and use of spectrum they are already starting to invest in the accompanying wider societal benefits) a preferred alternative to mergers. While spectrum and technology required to roll arising from mobile mergers. the pro-competitive nature of network • In some cases, if operators are compelled out 5G networks. sharing agreements can only be assessed to provide third parties with access to on a case-by-case basis, it is worth noting their networks, this could reduce rather The high level of competition in the markets Debate that network sharing agreements are not than sharpen incentives to invest as a for mobile services has also seen the tariffs always feasible between the merging result of the merger, thus significantly charged to mobile users fall steadily and Can mergers between mobile parties because of an asymmetry of reducing benefits to consumers. In significantly over the past few years. At the operators bring significant consumer assets (such as spectrum holding) addition, in the three cases (Ireland, same time, consumption of mobile services, benefits in mobile markets and or a different deployment strategy. Germany and Austria) where a network particularly mobile data, has grown steadily, wider society? entry option was made available by the with the result that users today typically get Unit prices European Commission’s Directorate- more for their money. General for Competition, nobody • There is no robust evidence to suggest took the option, even though this was In order to preserve competition, help drive Industry Position that four-player markets have produced arguably offered on favourable terms. innovation and support the wider societal lower prices than three-player markets benefits that mobile connectivity delivers, When assessing mobile mergers, in Europe and elsewhere over the • Remedies that involve reallocating policymakers must ensure that the right policymakers should consider the full past decade. network assets or reserving spectrum economic conditions are in place to support range of static and dynamic benefits that for other operators could in some investments. In particular, they must can arise from mergers, including price • Mergers can accelerate the transition cases deter investment and lead to recognise the competitive nature of today’s effects, innovation, the use of spectrum between technology cycles in the mobile underutilised or misused resources. mobile markets, avoid regulating prices and investments over both the short industry (technology cycles being and steer clear of interventions aimed at and longer term. engineering market structures. Instead, they should allow market mechanisms Investment and Quality of Service to determine the optimal mobile Resources: market structure. • Competition authorities should consider GSMA Report: Assessing the Case for In-country Mobile Consolidation GSMA Report: Assessing the Case for In-country Mobile Consolidation in Emerging Markets placing greater emphasis on how GSMA Report: Assessing the Impact of Mobile Consolidation on Innovation and Quality — An Evaluation mergers may change an operator’s of the Hutchison/Orange Merger in Austria ability to invest. Growing demand for GSMA Report: Assessing the Impact of Market Structure on Innovation and Quality in Central America 82 Business Environment Efficient Mobile Market Structures Mobile Policy Handbook 83

Deeper Dive

Dynamic Benefits In Mergers Effects of concentration on investment Recently there has been heated debate about the effects of consolidation on the Research How does concentration a ect How does concentration a ect performance of mobile markets, following mergers in key European countries, Paper investment per operator? total country investment? including Austria, Germany, Ireland and the United Kingdom. WIK No e ect No e ect Some argue that consolidation has a detrimental effect on competition and prices. (2015) Others argue that if consolidation does not take place, mobile markets will not CERRE Investment increases No e ect achieve the necessary scale and so fail to attract sufficient investment. (2015)

In the past three years multiple studies have analysed how mergers impact Houngbonon Investment increases & Jeanjean investment. For example, a 2017 GSMA report1 analysed the impact of the Hutchison/ (2016) 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 Frontier Investment increases (2015) in 4-player markets 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 Houngbonon Inverted-U: investment time period. The quality of mobile networks in Austria improved as a whole, with 4G & Jeanjean maximised at 38% of margin (2015) 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. HSBC Inverted-U: investment (2015) maximised at 37% of margin 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 positive effect on investment, but that as mobile markets become less concentrated, investment per operator or lower total country investment. 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 A first set of studies has found that investment always increases with market would have a neutral effect on outcomes such as network quality and coverage.3 concentration, suggesting that the Hutchison/Orange merger would have had a positive effect on Austrian consumers via more investment. 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 CERRE (2015) found that, on average, a 10 per cent increase in the Herfindahl- to a reduction of investment by operators, the evidence actually points to increased Hirschman Index drives a boost of 24 per cent in merged operators’ capex. In 2016, investment. This is because larger operators enjoy economies of scale that help when Jeanjean and Houngbonon found that markets with four players average 14 per cent it comes to extending coverage and undertaking network upgrades. They also have lower investment per operator versus those with three players and that an increase greater financial strength — due to larger profit margins and improved access to in the number of operators tends to decrease investment. DG Competition (2017) complementary assets and commercial partnerships — and expect higher returns finds that investment per operator increased as a result of the five-to-four merger in from their investments. the United Kingdom in 2010, although no statistically significant effect is found when

analysing investment per subscriber. 1 GSMA Report: Assessing the Impact of Mobile Consolidation on Innovation and Quality 2 CERRE (2015), Frontier (2015), Houngbonon & Jeanjean (2015), Houngbonon & Jeanjean (2016), A second set of studies (Houngbonon & Jeanjean, 2016 and HSBC, 2015) suggests HSBC (2015), WIK (2015), DG Competition (2017) that greater market concentration increases capex per operator only when operators’ 3 Though WIK (2015) found that market structures which provide higher profit margins and larger profit margins are below 37 per cent to 44 per cent — with operators in most four- economies of scale (both enhanced by market consolidation) boost total capex per country player markets being below this threshold, including Austrian operators before the merger. These studies suggest that the introduction of competition initially has a 84 Business Environment Mobile Policy Handbook 85

Infrastructure Sharing

Background Debate Industry Position In some cases, site sharing increases competition by giving operators access to Common in many countries, infrastructure Should regulators oversee, approve Governments should have a key sites necessary to compete on quality sharing arrangements allow mobile or manage infrastructure-sharing regulatory framework that allows of service and coverage. operators to jointly use masts, buildings arrangements? voluntary sharing of infrastructure and even antennae, avoiding unnecessary among mobile operators. Infrastructure sharing agreements should duplication of infrastructure. Infrastructure be governed under commercial law and, sharing has the potential to strengthen What role should governments While it may at times be advantageous for as such, subject to assessment under competition and reduce the carbon play in the development and mobile operators to share infrastructure, general competition law. footprint of mobile networks, while management of core infrastructure? network deployment remains an important reducing costs for operators. element of competitive advantage in mobile Access to government-owned trunk assets markets. Any sharing should therefore should be available on non-discriminatory Infrastructure sharing can provide be the result of commercial negotiation, commercial terms, at a reasonable additional capacity in congested areas not mandated or subject to additional market rate. where space for sites and towers is regulatory constraints or fees. limited. Likewise, the practice can facilitate expanded coverage in previously The regulatory framework of a country underserved geographic areas. should facilitate all types of infrastructure sharing arrangements, which can involve As with spectrum trading arrangements, the sharing of various components of mobile infrastructure sharing has mobile networks, including both so-called traditionally involved voluntary co- passive and active sharing. operation between licensed operators, based on their commercial needs.

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? 86 Business Environment Infrastructure Sharing Mobile Policy Handbook 87

Deeper Dive

Types of Infrastructure Sharing

Infrastructure sharing can be passive or active. Passive sharing includes site It may also: sharing, where operators use the same physical components but have different site masts, antennae, cabinets and backhaul. A common example is shared • Reduce site acquisition time. rooftop installations. Practical challenges include availability of space and property rights. A second type of passive sharing is mast sharing, where the antennae of • Accelerate the roll out of coverage into underserved geographical areas. different operators are placed on the same mast or antenna frame, but the radio transmission equipment remains separate. • Strengthen competition.

In active sharing, operators may share the radio access network (RAN) or the • Reduce the number of antenna sites. core network. The RAN-sharing case may create operational and architectural challenges. For additional core sharing, operators also share the core functionality, • Reduce the energy and carbon footprint of mobile networks. demanding more effort and alignment by the operators, particularly concerning compatibility between the operators’ technology platforms. • Reduce the environmental impact of mobile infrastructure on the landscape. Infrastructure sharing optimises the utilisation of assets, reduces costs and avoids duplication of infrastructure (in line with town and country planning objectives). • Reduce costs for operators.

Mast Sharing Site Sharing Full RAN Sharing Shared Core Network Elements and Platforms

Shared Compound Shared Compound Shared Compound Network A A A Antenna AAntenna B Mast A Mast B Antenna A/B A k k k Network A HLR Network A or or Antenna A Antenna B or MSC SG SNGG SN tw tw tw Ne Ne Ne

Core Core Core Access Shared VAS Network A Platform Core Transmission Network A Network B Shared Network A Network B Access Ring BTS/Node B BTS/Node B BTS/Node B BTS/Node B BTS/Node B Network B Shared B B B OMC k k k or or or tw tw tw Ne Ne Ne

Network A Network B Network A Network B Shared Network B Network B BSC/RNC BSC/RNC BSC/RNC BSC/RNC Core Core BSC/RNC MSC SG SNGG SN Core Network B HLR

Source: GSMA 88 Business Environment Mobile Policy Handbook 89

Intellectual Property Rights — Copyright

Background still being fiercely debated. For example, Debate Directive are core principles that guarantee now that consumers increasingly wish to users the freedom and confidentiality of Copyright is the basis for creative access content online via their mobile and Should online service providers communications and the freedom to access professionals such as artists, musicians, also across borders, the latter point has have to monitor and address 'illegal information, and offer legal certainty to writers, filmmakers and composers to become problematic. content' or the unlawful use of internet service providers. earn income, get recognition and receive copyrighted content? protection for their works. The original In addition, there is heated discussion These principles are key, not only for the intention of copyright was to encourage the related to the perceived ‘value gap’ functioning of the information society and development of new creative work. This is between rights holders and online Who will be in the best position to for the provision of innovative services still the case today, but the emergence of platforms as well as the issue of make a reliable decision on what in the DSM, but also for an effective digital technologies has radically changed intermediary liabilities. One question that constitutes ‘illegal content’? fight against illegal content online. the way creative content is produced, has arisen is whether there should be a This fight requires, in most instances, distributed and accessed by consumers. neighbouring right for press publishers so contextualisation of different types of that they receive remuneration when their How can access to content in the allegedly illegal content and must be Since the launch of its Digital Single news snippets are used. If this were put digital age be guaranteed and weighed against the citizens’ fundamental Market (DSM) strategy in March 2015, in place, news aggregators and possibly how can the clearance of rights be right to freedom of expression and access the European Commission has published social networks and search engines would facilitated in a way that balances to information as well as privacy and several proposals to improve cross-border have to conclude licensing agreements with the interests of all stakeholders? protection of personal data. access to content online, create wider press publishers to be able to display news opportunities to use copyrighted materials snippets. Similarly, the issue of whether Regarding access to content, the GSMA is in education, research and cultural heritage online service providers should have to in favour of extending the retransmission and to create a better functioning monitor and address (including via the Industry Position right in a technologically-neutral manner, copyright marketplace. use of content recognition technologies) including IP-based retransmission over the unlawful use of copyrighted content The mobile industry recognises the the internet to different devices. However, The proposal on temporary cross-border continues to be hotly debated. importance of proper compensation for the GSMA cautions against introducing portability of online content services came rights holders and supports the creation a broadly-designed country-of-origin into force on 1 April 2018. Now, suppliers These proposals have now been adopted of fair, incentivising business models approach for broadcasters’ rights clearance of these services, when provided against by the European Parliament and will be that respect the right balance. However, in respect of simulcasting, catch-up and remuneration, have to allow consumers at the centre of negotiations among EU the GSMA cautions against putting the similar services as this may negatively to temporarily access content they have co-legislators to finalise the copyright ‘ISP liability regime’ of the eCommerce impact financing models, the contractual legally subscribed to in their member state reform before the next European elections. Directive into question by having to take freedom of rights holders and service of residence while staying in another EU measures to prevent the availability of providers, and ultimately consumer choice. member state. Providers are not requested Furthermore, the European Commission copyright infringing content. to execute rights clearance or obtain has proposed new rules to compel internet Any new legislation should avoid double- additional copyright licences when platforms to remove terrorist content The exemptions from liability for paying, for redistributing content to its so doing. within one hour once it has been flagged intermediaries contained in the eCommerce users (e.g., via licences). by national competent authorities. These In the meantime, the European Commission’s rules follow on from previous non-binding proposals on the modernisation of copyright measures aimed at tackling illegal Resources: in the DSM and on the extension of the online content. REGULATION (EU) 2017/1128 of 14 June 2017 on Cross-border Portability of Online Content Services in the Internal Market Satellite and Cable Directive’s broadcasting European Commission Modernisation of EU Copyright Rules website rules to other infrastructures, such as European Commission Recommendation on Measures to Effectively Tackle Illegal Content Online mobile networks and the open internet European Commission Communication on Tackling Illegal Content Online — Towards an Enhanced (‘technology-neutral retransmission’), are Responsibility of Online Platforms 90 Business Environment Mobile Policy Handbook 91

Intellectual Property Rights — Patents

Background were used to preserve a company’s Industry Position Increasing PAE litigations and adversarial/ ‘Freedom to Operate’ (i.e., its ability to litigious licensing negotiations highlight the The mobile ecosystem has been a major bring its products to market by seeking The Secondary Patent Market has greatly requirement for greater clarity in relation driver of economic progress and welfare large portfolio cross-licences). Increasingly, encouraged the rise in non-innovating, to the licensing of standard-essential globally. Countries around the world patents have become tradable and income- non-practising, patent monetisation and technology. These efforts should focus on: continue to benefit from the improvements generating assets (via the ‘Secondary licensing or enforcement entities, known in productivity and efficiency brought Patent Market’), capable of being as PAEs. Usually, PAEs are purchasing • The public’s heavy reliance on mobile about by the increased take-up of mobile asserted against start-ups, small and large patents (rather than developing and telecommunications technology and the products and services. As a result, GSMA companies, and, in some specific cases, licensing technology) to be asserted mobile operators’ abilities to deliver such Intelligence predicts mobile will generate to stifle competition. against manufacturers and operators services. five per cent of global GDP by 2022, already using the technology. equating to $4.6 trillion of economic value. • That fact that disruption to these Debate There are a number of reasons mobile services, even in part, will have a severely Without the immense efforts of the mobile operators’ networks have become a negative effect on people's lives. operator community, many of the adopted Now that patents have become premium target for so-called patent trolls in technologies in 2G, 3G and 4G would a tradable and income-generating Europe, America and Asia. These include: • The importance of maintaining the not have been successfully developed, asset, can they still be looked integrity of mobile telecommunication implemented or adopted on a mass scale. upon as a tool to support and • The complexity of mobile operators’ services and ensuring continuous promote innovation? networks. investment and adoption of new At no point in history has telecommunications technologies in the telecommunications technology had a greater impact on • The scale of investments needed market. peoples’ lives than now. The public Are Patent Assertion Entities to build them. has become heavily reliant on mobile (PAEs) having a negative effect • The need to incorporate appropriate telecommunications technology and the on competition? • The level of revenues they generate. rules and regulations into the relevant mobile operators’ abilities to deliver such frameworks governing the seeking and services. Mobile telecommunications • The reliance of these networks on granting of injunctions in predatory services provided by the operator technology based on standards. patent assertion cases (in order to community have become fundamental to allow the judiciary to consider the everyday existence. The multiple costs associated with above points). PAEs’ litigation and threats of However, in the past few years, we have injunction (as leverage in demands for seen radical changes in the licensing of disproportionately high licensing fees) have telecommunications technology (i.e., a detrimental effect on mobile network the prime use of patent portfolios in operators’ businesses, as well as mobile telecommunications). Initially patents telecommunications innovation and standardisation.

Resources: GSMA Report: The Rise of ‘Predatory Patent Practices’: A Major Escalation in Patent Assertion Entities Activity — A Telecommunications Operators’ Perspective (2017) 92 Business Environment Mobile Policy Handbook 93

International Mobile Roaming

Background charge on top of the price they pay at Industry Position • Price regulation. Governments home. Operators can implement ‘fair use' and regulators should only consider International mobile roaming (IMR) allows policies to prevent the abuse of regulated IMR is a valuable service delivered price regulation as a last resort, after people to continue to use their mobile roaming services. in a competitive marketplace. Price transparency measures and innovative device to make and receive voice calls, regulation is not appropriate, as the IMR pricing have failed to address send text messages and email, and use the Bill shock and certain high roaming market is delivering many new solutions. consumer complaints, and after internet while abroad. prices have also attracted the attention structural barriers have been removed. of international institutions such as the The mobile industry advocates a three- The costs and benefits of regulation Telecoms regulators and policymakers Organisation for Economic Co-operation phased strategy to address concerns must be carefully assessed, taking have raised concerns about the level and Development (OECD) and the World about mobile roaming prices: into account unique economic factors of IMR prices and the lack of price Trade Organisation (WTO). Additionally, such as national variances in income, transparency, which can cause consumer regional and bilateral regulatory measures • Transparency. In June 2012, the GSMA GDP, inflation, exchange rates, mobile bill shock. are either in place or being considered in launched the Mobile Data Roaming penetration rates and the percentage many jurisdictions. Transparency Scheme, a voluntary of the population that travels In December 2012, during the revision commitment by mobile operators to internationally, as well as incidence by the International Telecommunication give consumers greater visibility of of international travel to neighbouring Union (ITU) of the International Debate roaming charges and usage of mobile countries, all of which have an impact Telecommunications Regulations (ITRs), data services when abroad. on IMR prices. several governments requested that Some policymakers believe IMR the revised treaty include provisions on prices are too high. Is regulatory • Removal of structural barriers. The mobile industry is a highly competitive transparency and price regulation for intervention the right way to Governments and regulators should and maturing industry, and one of the mobile roaming. However, on balance, ITU address this? eliminate structural barriers that most dynamic sectors globally. In the past member states concluded that roaming increase costs and cause price decade, competition between mobile prices should be determined through differences between countries. These operators has yielded rapid innovation, competition rather than regulation, and What measures can be taken include double taxation, international lower prices and a wide choice of text was included in the treaty to reflect to address concerns about gateway monopolies and fraud, all packages and services for consumers. this approach. price transparency, bill shock of which should be removed before Imposing roaming regulation on mobile and price levels? any form of IMR price regulation operators not only reduces revenue and In the European Union, roaming regulation is considered. increases costs, but it deters investment. 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

Resources: GSMA Roaming website GSMA Information Paper: Overview of International Mobile Roaming GSMA News: GSMA Launches Data Roaming Transparency Initiative 94 Business Environment Mobile Policy Handbook 95

Mobile Termination Rates

Background Debate Industry Position MTRs are wholesale rates, regulated in many countries, where a schedule of Mobile termination rates (MTRs) refer to How should the appropriate, Regulated mobile termination rates annual rate changes has been established the fees charged by operators to connect regulated rate for call termination should accurately reflect the costs and factored into mobile network a phone call that originates from a be calculated? of providing termination services. operators’ business models. Unsignaled, different network. unanticipated alterations to these Beyond a certain point, evidence suggests rates have a negative impact on The setting of regulated MTRs continues Is the drive towards ever-lower that a focus on continued reductions in investor confidence. to be the focus of regulatory attention in mobile termination rates, especially MTRs is not beneficial. both developed and developing countries, in Europe, a productive and The GSMA believes the setting of MTRs and many different approaches have appropriate activity for regulators? The setting of regulated MTRs is complex is best done at a national level, where been developed for the calculation of and requires a detailed cost analysis local market differences can be properly appropriate termination charges. as well as a careful consideration of its reflected in the cost analysis, therefore Once termination rates have fallen impact on consumer prices and, more extraterritorial intervention is Regulators have generally concluded below a certain threshold, is broadly, on competition. not appropriate. 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 Resources: is more finely calibrated. The benefits of intervention are more ambiguous Vodafone Report: The Impact of Recent Cuts in Mobile Termination Rates Across Europe and the error costs larger. GSMA Report: The Setting of Mobile Termination Rates GSMA Report: Comparison of Fixed and Mobile Cost Structure — Stewart White, former Group Public Policy Director, Vodafone Vodafone Report: Regulating Mobile Call Termination 96 Business Environment Mobile Policy Handbook 97

Net Neutrality

Background Mobile operators face unique operational Debate Regulation that affects network operators’ and technical challenges in providing fast, handling of mobile traffic is not required. While there is no single definition of net reliable internet access to their customers, Should networks be able to manage Any regulation that limits their flexibility to neutrality, it is often used to refer to issues due to the shared use of network resources traffic and prioritise one traffic type manage the end-to-end quality of service concerning the optimisation of traffic over and the limited availability of spectrum. or application over another? and provide consumers with a satisfactory networks. Net neutrality advocates assert experience is inherently counterproductive. 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 For mobile networks, which have In considering the issue, regulators should in the same way. Others contend that capacity in a given area, the capacity finite capacity, should fixed-line recognise the differences between fixed flexibility to offer different service levels demand at any given cell site is much rules apply? and mobile networks, including technology for different applications enhances the more variable, as the number and mix differences and the impact of radio user experience. of subscribers constantly changes, often frequency characteristics. unpredictably. The available bandwidth In some cases, net neutrality rules are Where this flexibility exists, mobile can also fluctuate due to variations in radio being considered in anticipation of Consumers should have the ability to network operators are able to offer a frequency signal strength and quality, a problem that has yet to materialise. choose between competing service bespoke, managed service to providers which can be affected by weather, traffic, Is this an appropriate approach providers on the basis of being able to of new connected products, such as speed and the presence of interfering to regulation? compare performance differences in a autonomous cars, which could not devices such as wireless microphones. transparent way. exist without constant, high-integrity connectivity. Operators can also enter Not all traffic makes equal demands of Mobile operators compete along many into commercial arrangements with a network; for example, voice traffic is Industry Position dimensions, such as pricing of service content and application providers that time-sensitive while video streaming packages and devices, different calling want to attract users by offering free typically requires large amounts of To meet the varying needs of consumers, and data plans, innovative applications access — for example, by zero-rating their bandwidth. Networks need to be able to mobile network operators need the ability and features, and network quality and content — so mobile subscribers are not apply network management techniques to to actively manage network traffic. coverage. The high degree of competition ‘charged’ for the data usage. These kinds ensure each traffic type is accommodated in the mobile market provides ample of arrangements enable product and and to support innovations with 5G and It is important to maintain an open incentives to ensure customers enjoy service innovation, deliver added value to the Internet of Things. The principle of internet. To ensure it remains open and the benefits of an open internet. consumers and generate new revenue for the open internet and allowing network functional, mobile operators need the network operators, which face constant operators to offer a variety of service flexibility to differentiate between different pressure to enhance, extend and upgrade options to consumers are not mutually types of traffic. their networks. exclusive. As the net neutrality debate has evolved, 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. Resources: GSMA Net Neutrality website — GSMA FCC Filing: GSMA Comments on the Open Internet Proceeding, 15 July 2014 98 Business Environment Net Neutrality Mobile Policy Handbook 99

Deeper Dive

Traffic Management Is an Efficient and Necessary Tool Traffic management techniques are necessary and appropriate in a variety of operational and commercial circumstances: 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: Network integrity 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. Protecting the network and customers from external threats, such as malware and denial-of-service attacks. The finite capacity of mobile networks means they can 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. Child protection Congestion management is essential to prevent the network from failing during traffic peaks, and to ensure access to essential services. Applying content filters that limit access to age-inappropriate content. 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 Subscription-triggered services 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. Taking the appropriate action when a customer exceeds the contractual data-usage allowance, or offering charging models that allow customers Mobile operators need the flexibility to experiment and establish new business models to choose the service or application they want. 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. Emergency calls

The current competitive market is delivering end-user choice, innovation and value for money for consumers and no further regulatory intervention related to the provision Routing emergency call services. 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. 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. 100 Business Environment Mobile Policy Handbook 101

Over-the-Top Voice and Messaging Communication Apps Industry Position While the same rules should apply to the same services, these are not Background that have been put in place to protect The mobile industry supports and necessarily the rules that apply today to consumers and ensure that all providers promotes fair competition as the telecommunications services. There is a The combination of mobile broadband make a fair and proportionate contribution best way to stimulate innovation and need for a forward-looking regulatory access, smartphones and internet to local economic growth through investment for the benefit of consumers framework for communications services technology has led to the emergence of investment, employment and tax. and to spur economic growth, and that is fit for purpose for a digital world. a new breed of consumer mobile voice believes both objectives will be best This framework must be driven by clear and messaging communication services As OTT communications services become served by the principle of ‘same rules policy requirements around consumer provided by internet-based companies, more and more popular, they increasingly for the same service’. The growth in protection, innovation, investment often referred to as over-the-top service render a number of regulations designed to competition between different types and competition. providers (OTTs). These services are address alleged network bottlenecks, such of service provider calls for a move providing consumers with additional as termination and roaming, unjustified. towards shared rules that are lighter By adopting a policy framework built choices in how they communicate with touch than those applicable in less around same rules for the same service, each other. competitive environments. and properly recognising the competitive Debate constraint imposed on mobile network OTT communications services are typically The principle of same rules for the same operators by OTTs currently playing by offered in competition with, and as direct Should OTT services be subject service maintains that where regulation is different rules, national governments and substitutes to, the circuit-switched voice to the same regulatory obligations considered to be necessary, all equivalent regulators will be enabling an environment and SMS services provided by mobile that apply to calls and messages consumer voice and messaging services of fair and sustainable competition that operators, but they are typically not carried over the PSTN? should be subject to the same regulatory promotes the best interests of consumers properly considered in the market analysis and fiscal obligations, regardless of the and fosters economic growth. carried out by regulators. underlying technology, geographic origin Does the fact that OTT players or whether they are delivered by a mobile Due to the global nature of the internet, currently sit outside the scope of operator or OTT service provider. This will and because they have not been sector-specific regulations provide help to improve consumer confidence and considered as equivalent to traditional them with a competitive advantage trust in using internet-based services by communication services, many OTT over traditional telecoms providers? ensuring a consistent approach to issues communications services sit outside such as transparency, quality of service the scope of sector-specific national or and data privacy. Consistent application regional regulatory and fiscal obligations of regulatory obligations will also support (e.g., e-privacy, legal interception, legitimate law enforcement and national emergency calls, universal service security activities. contribution, national specific taxes, consumer rights and quality of service)

Everybody knows today that with telecom service providers and OTT [players], there are unbalanced relations and we have to find a better balance. Resources: Ovum: OTT Messaging Forecast: 2016–20 — Andrus Ansip, Vice-President for the Digital Single Market, European Commission, 2015 Juniper Research: OTT Messaging Users to Hit 4.2 Billion by 2021 102 Business Environment Mobile Policy Handbook 103

Passive Infrastructure Providers

Background Debate Industry Position Registered providers should be permitted to construct and acquire passive Many mobile network operators share What benefits do independent Licensed network operators should be infrastructure that is open to sharing with infrastructure on commercial terms tower companies offer to able to share passive infrastructure with network operators, provide (e.g., sell or to reduce costs, avoid unnecessary mobile operators? other licensed network operators and lease) passive infrastructure elements to duplication and to expand coverage cost- outsource passive infrastructure supply licensed operators, and supply ancillary effectively in rural areas. to passive infrastructure providers services and facilities essential to the Should passive infrastructure without seeking regulatory approval. provision of passive infrastructure. The most commonly shared infrastructure sharing ever be mandated by is passive infrastructure, which may the regulatory authority? Sharing passive infrastructure on Mobile network operators should be include: land, rights of way, ducts, commercial terms enables operators to permitted to make use of infrastructure trenches, towers, masts, dark fibre and reduce capital and operating expenditure from passive infrastructure companies power supplies, all of which support the What steps should regulators take without affecting investment incentives or through commercial agreements without active network components required for to provide clarity to tower their ability to differentiate and innovate. explicit regulatory approval. Infrastructure the transmission and reception of signals. companies and mobile operators? sharing agreements should be governed Infrastructure sharing provides a basis under commercial law and, as such, be Infrastructure sharing is arranged through for industry to expand coverage cost- subject to assessment under general bilateral agreements between mobile effectively and rapidly, while retaining competition law. network operators to share the specific competitive incentives. Regulation of towers, strategic sharing alliances, the passive infrastructure sharing should be Public authorities should provide licensed formation of joint infrastructure companies permissive, but should not mandate operators and passive infrastructure between mobile operators or via such arrangements. providers with access to public property independent companies providing towers and rights of way on reasonable terms and other passive infrastructure. In markets with licensing frameworks and conditions. Governments, seeking that do not already provide for the to support national infrastructure Increasingly, independent tower operation of independent tower development, should ensure swift approval companies provide tower-sharing companies, regulatory authorities (or the for building passive infrastructure, and facilities to network operators. Several responsible government department) environmental restrictions should reflect countries have established regulatory should either permit independent passive globally accepted standards. frameworks based on registration infrastructure companies to operate that encourage passive infrastructure without sector-specific authorisation Taxation and fees imposed on independent sharing arrangements and provide or establish a registration scheme for tower or passive infrastructure companies regulatory clarity for network operators such companies. The scheme should be should not act as a barrier to the evolution and independent passive infrastructure a simple authorisation that provides for of this industry, which makes possible providers. While regulatory authorities oversight of planning-related matters, more efficient, lower-cost forms of in almost all countries are supportive while making a clear distinction with infrastructure supply. of passive infrastructure sharing the licensing framework applicable to arrangements, a lack of regulatory clarity electronic communications network and exists in some countries, particularly in service providers. relation to independent tower companies.

Resources: AT Kearney Report: The Rise of the Tower Business Reuters News: Bharti Airtel to Sell 3,100 Telecom Towers 104 Business Environment Mobile Policy Handbook 105

Quality of Service

Background Debate Industry Position The commercial, operational and technological environment in which The quality of a mobile data service Is it necessary for regulators to set Competitive markets with minimal mobile services are offered is continuing to is characterised by a small number of specific targets for network quality regulatory intervention are best able develop. Mobile operators must have the important parameters, notably speed, of service in competitive markets? to deliver the quality of mobile service freedom to manage and prioritise traffic packet loss, delay and jitter. It is affected customers expect. Regulation that on their networks. Regulation which rigidly by factors such as mobile signal strength, sets a minimum quality of service is defines a particular service quality level network load, and user device and Is it possible to guarantee minimum disproportionate and unnecessary. is unnecessary and is likely to impact the application design. quality levels in mobile networks, development of these services. which vary over time according to The quality of service experienced by Mobile network operators must manage the volume of traffic being carried mobile consumers is affected by many Competitive markets with differentiated changing traffic patterns and congestion, and the specific, local signal- factors, some of which are beyond the commercial offers and information that and these normal fluctuations result in propagation conditions? control of operators, such as the device allows consumers to make an informed customers experiencing a varying quality type, application and propagation choice deliver the best outcomes. If of service. environment. Defining specific quality regulatory authorities are concerned Which regulatory approach will targets is neither proportionate about quality of service, they should Connection throughput is seen by some protect the interests of mobile nor practical. engage in dialogue with the industry regulatory authorities as an important service customers while not to find solutions that strike the right attribute of service quality. However, it distorting the market? Mobile networks are technically different balance on transparency of quality is also the most difficult to define and from fixed networks; they make use of of service. communicate to mobile service users. shared resources to a greater extent and Mobile throughput can vary dramatically are more traffic-sensitive. over time, and throughput is not the only product attribute that influences Mobile operators need to deal with consumer choice. 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 106 Business Environment Quality of Service Mobile Policy Handbook 107

Deeper Dive

A Network of Interconnections Factors affecting mobile quality of service 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 Mobile that of their competitors and meet customer expectations. However, mobile operators have Environmental factors device little control over many of the parameters that can affect their subscribers’ experience. Physical obstacles Factors beyond an operator's control include:

User location and movement

The type of device and application being used. Weather

y The changing usage patterns in a mobile network cell at different Tra c spikes journe times of day. Data Mobile device type

The movements and activities of mobile users, such as travel, Mobile network events or accidents. Internet

Obstacles and distance between the terminal and antennae. Content source

The weather, especially rain.

In addition, the quality of internet access that users experience depends on For these reasons, regulation concerning the quality of mobile internet service the quality provided by each of the data paths followed. The internet service provider can be counterproductive. Regulation that does not consider the nature of mobile (ISP) only has control of the quality of service in its section of the network. 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. 108 Business Environment Mobile Policy Handbook 109

Single Wholesale Networks

Background in mobile services, particularly in Industry Position depends on national policies and market developing countries. The number of structures. In practice, government- Policymakers in some countries are unique mobile subscribers has now SWNs and WOANs are likely to lead to mandated wholesale networks have considering establishing single wholesale surpassed five billion.2 This success has worse outcomes for consumers than been much slower to expand coverage, networks (SWNs) or wholesale open- fuelled innovation and helped increase network competition. perform upgrades and to embrace access networks (WOAN) instead of speeds, improved network coverage and new technologies. relying on competing mobile networks to cut costs. Some supporters claim they will deliver deliver mobile broadband services in their greater network coverage than network Rather than use public funds to create country. Most of these proposals specify Supporters of SWNs argue they can competition can. However, this claim often a separate network to deliver coverage at least partial network ownership and address some concerns better than the reflects the existence of public subsidies in areas into which commercial networks financing by the government. traditional model of network competition and other forms of favourable support have not yet found it viable to cover, in some markets. These concerns generally for the SWN, which are not available to an alternative approach is to consider While there are variations in the SWN include inadequate or lack of coverage competing network operators, making how public funds might be used to proposals discussed by different in rural areas, inefficient use of radio it an unfair comparison. Commercial subsidise a commercial network provider governments, SWNs can be generally spectrum and fears that the private sector networks can deliver coverage even to expand coverage to reach these areas. defined as government-initiated network may lack incentives to maximise coverage in areas where duplicate networks are

monopolies that compel mobile operators or investment. uneconomic. This can be achieved 1 GSMA & Frontier Economics Report: Assessing and others to rely on wholesale services in many ways, including through the the Case for Single Wholesale Networks in provided by the SWN as they serve and implementation of voluntary network Mobile Communications. compete for retail customers. Debate sharing among operators. 2 Source: GSMAi.

SWNs would represent a radical departure Are SWNs likely to increase The benefits of network competition go from the approach to mobile service the quality and reach of next- beyond coverage. Innovation is a key provision that has been favoured by generation mobile broadband, driver of consumer value at the national policymakers for the past 30 years — compared with the existing level, and this occurs in networks as well namely, to license a limited number of approach of network competition? as services and devices. While mobile competing mobile network operators, technologies are typically developed which are usually under private ownership. at the international level, the speed at What alternative policies which they become available to consumers In 2000, there were almost as many should be considered before countries served by a single mobile adopting a monopoly wholesale network as there were countries served network model? by multiple competing networks. Today, however, only about 30 markets are served by a single mobile network.1 Many of them are small islands with populations in the thousands, and, in total, they represent less than two per cent of the world’s population. During the same period, network competition has produced unprecedented growth and innovation

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 110 Business Environment Single Wholesale Networks Mobile Policy Handbook 111

Deeper Dive

Risks Associated with Single Wholesale Networks operators already provide coverage. Consequently, take-up among the large operators, which would help increase the impact of the project, has been Governments often have ambitious goals when they mandate the creation of a single slow. This makes the final goal to reach 92.2 per cent of the population by 2024 look wholesale network (SWN) or a wholesale open-access network (WOAN) instead of relying very optimistic. upon the market, especially competing mobile networks, to deliver mobile broadband services in their country. However, research shows that of the five countries seriously In other countries, projects have been abandoned or made little progress. In Kenya and considering this option, only Rwanda and Mexico have actually rolled out a network (as of Russia, the push stalled due to complicated negotiations with key stakeholders. As of mid-2018). The lessons from all five countries highlight the significant challenges associated September 2018, a Ministerial Policy Directive in South Africa to assign high-demand with SWNs and WOANs. spectrum to a WOAN and to other electronic communications network service licensees simultaneously was the subject of a public consultation process. For example, the public-private partnership project in Rwanda set ambitious goals but has faced a number of difficulties in meeting them. While an LTE network has been rolled Improving rural coverage is something the mobile industry works on tirelessly. Instead of out, connectivity is generally not being delivered in areas where operators are not already going down the wholesale monopoly route, the GSMA recommends governments conduct providing 3G coverage. The network is also competing directly with the existing mobile a comprehensive consultation with all stakeholders to address coverage gaps. operators, as opposed to selling services to them on a wholesale basis. Pricing remains a concern, as levels are so low they are undercutting those of the existing mobile operators, While it is often a fiercely competitive industry, mobile operators are not shying away from leaving little room for reinvestment. cooperation as a means of expanding coverage. In the end, the connectivity gap can only be overcome through close collaboration between the telecoms industry and governments. In the other four countries, efforts to roll out networks have either been severely delayed or The basic building blocks that can help make this happen are: abandoned altogether. • Cost-effective access to low-frequency spectrum. The roll out in Mexico was marred by delays and the scope of the project has been reduced. In May 2015, the government announced the investment target had been reduced from $10 • Support for flexible use in spectrum (e.g., refarming and technology neutral licenses). 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. • Support for all forms of voluntary infrastructure sharing.

In 2016, the Altán consortium, as the sole remaining bidder, was granted access to • Better usage of government USF/subsidiaries to incentivise extended coverage. 90 MHz of valuable spectrum in the 700 MHz band to build an LTE-based wholesale network. In mid-2018, the network had reached its first coverage target at 32 per cent of • Elimination of sector-specific taxation on operators, vendors and consumers. the population. • Non-discriminatory access to public infrastructure. However, as with the project in Rwanda, the cost structure is a major concern. The government isn’t receiving any revenue from the licence for this valuable spectrum and • Support for streamlined planning and administrative processes. Altán is paying much reduced annual spectrum fees. This is distorting the market, as existing operators must still pay for their spectrum licence as well as full annual spectrum • Relaxation of quality of service requirements. fees, while also finding funds to reinvest in their networks. • Context appropriate competition policy, especially concerning market structure. The Altán consortium is yet to prove its service is a valuable offering for Mexican consumers and businesses, as the network is also only available in areas where existing mobile • Support for multi-sided business models such as zero rating and sponsored data. 112 Business Environment Mobile Policy Handbook 113

Taxation

Background Debate Industry Position Discriminatory, sector-specific taxes deter the take-up of mobile services and can slow The mobile telecommunications sector Do sector-specific taxes deliver Governments should reduce or remove the adoption of ICT. Lowering such taxes has a positive impact on economic short-term government income mobile-specific taxes because the benefits consumers and businesses and and social development, creating jobs, at the expense of longer-term resulting social impact and long-term boosts socio-economic development. increasing productivity and improving additional revenues that could positive impact on gross domestic the lives of citizens. be accrued through increased product, and hence tax revenues, will Governments often levy special taxes economic growth? outweigh any short-term reduction in to finance spending in sectors where Sector-specific taxes are levied on contributions to governments’ budgets. private investment is lacking, however mobile consumers and operators in this approach is inefficient. Fiscal many countries. These include special Taxes should align with internationally policy that applies a special tax to the communication taxes, such as excise duties recognised principles of effective tax telecommunications sector causes on mobile handsets and airtime usage, and systems. In particular: distortions that deter private spending and, revenue-share levies on mobile operators. in the end, diminish welfare by preventing These taxes contribute to a high tax burden • Taxes should be broad-based — the realisation of the positive spill-overs that on the mobile sector that exceeds the different taxes have different economic mobile provides throughout the economy. burden on other sectors. properties and, in general, broad-based consumption taxes are less distortionary Emerging economies need to align their Some countries have applied a surcharge than taxation on income or profits. approach to taxing mobile broadband on international inbound call termination with national ICT objectives. If broadband (SIIT), which can have the effect of • Taxes should account for sector and connectivity is a key social and economic increasing international call prices and product externalities. objective, taxes must not create an obstacle acting as a tax on other countries’ citizens. to investment in broadband networks or • The tax and regulatory system adoption and usage of mobile broadband There is an increasingly broad consensus should be simple, easily understandable by consumers. Lowering the taxation around the world that for tax systems to be and enforceable. burden on the sector increases mobile take- effective they should follow internationally up and use, creating a multiplier effect in recognised best practice principles. • 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 Mobile Taxation Research and Resources GSMA Report: Taxing Connectivity in Sub-Saharan Africa 114 Business Environment Taxation Mobile Policy Handbook 115

Facts and Figures

Taxes and Fees on Mobile Consumers and Operators Eight Steps Governments Can Take to Rebalance Taxation and Promote Digital Inclusion 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 1. Phased reductions of sector-specific taxes and fees can represent an includes taxes on handset purchases and connection activation, as well as calls, messages effective way for governments to signal their support for boosting the and data access. High taxation has a negative impact on the affordability of mobile services connectivity agenda. and can also have wider negative effects on productivity and economic growth. 2. To enable more users to gain access to mobile services, governments should In addition to these consumer-facing charges, mobile operators also face a range of other choose to lower the affordability barrier caused in part by so-called ‘luxury’ charges including licensing fees, corporation tax, revenue charges and many more. Taxes taxes on devices and connections. 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 3. Uncertainty over future taxation reduces investment because the risk of future depends on individual market conditions. Some taxes may be absorbed by operators in the tax rises is priced into investment decisions. Governments should seek to limit form of lower profits, while others may be passed through to consumers as higher prices, unpredictable tax and fee changes and streamline how tax and fees are levied. or a combination of the two. 4. The spectrum award approach needs to balance the relationship between Research by Deloitte for the GSMA revealed that: ex-ante and ex-post fees in a transparent way, to ensure operators do not pay twice for access to the same resource. • Mobile operators paid $32 billion in 2015 across 27 nations surveyed. Sector-specific taxes accounted for around $8 billion of this. Sector-specific excise duties were present in 5. Eliminating import duties for mobile network equipment and other local 81 per cent of surveyed nations, as were spectrum fees. taxes levied directly on mobile sites has the potential to increase network investment. • Just under a third (28 per cent) of operators’ revenues were spent on taxes, excluding non-recurring payments such as spectrum auction fees. 6. Governments should avoid disproportionate taxation of services such as mobile money, as it puts a wide range of positive externalities at risk. • In eight countries, including Brazil, Chad and DRC, taxes account for 40 per cent or more of sector revenue. 7. Removal of surtaxes on international incoming calls can ease barriers to regional and international trade by lowering the cost of international Among the countries surveyed, it is only in South Africa and Italy that the sector’s tax communication. It can also improve affordability, enabling more consumers to contribution as a proportion of the whole tax take closely match its proportion of the whole realise the benefits of mobile services. economy. In four nations, the sector pays more than double, in three others more than triple and in three others more than four times. 8. Governments should apply fees on profits rather than revenues, so as not to discourage investment and innovation. These fees require the same payment Taxes and fees on mobile services affect the affordability of access and usage. These taxes from an operator regardless of whether it retains its profit or uses it to invest and fees may have a disproportionate impact on lower-income consumers, as they result in in new infrastructure and services. 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 21 per cent of the gross national income of the bottom 20 per cent of income earners. 116 Business Environment Mobile Policy Handbook 117

Universal Service Funds

Background Debate Industry Position USFs that already exist should be targeted, time-bound and managed transparently. Universal service — characterised by Are USFs an effective way to Governments should phase out USFs The funds should be allocated in a a telecommunications service that is extend voice and data connectivity and discontinue collecting USF levies. competitive and technically neutral way, available, accessible and affordable — to underserved citizens? Existing USF monies should be returned in consultation with the industry. is a policy goal of many governments. to operators and used to extend mobile services to remote areas. Governments should consider incentives Some countries have established universal What alternative strategies that facilitate market-based solutions. service funds (USFs) on the premise that could be more effective? Liberalised markets and private- They can help by removing sector-specific operators are unable to extend service to sector investment have delivered taxes, stimulating demand and developing some areas without financial support. telecommunication services to the the supporting infrastructure. Alternative How relevant are USFs majority of the world’s population, a trend solutions (e.g., public-private partnerships) USFs are typically funded by levies on in mature markets? that the industry considers will continue. should be explored in preference to USFs telecommunication sector revenues. In for the extension of communications to these cases, operators continue to be Few USFs have successfully expanded rural and remote areas. required to contribute a share, despite the access to telecommunication services,

expansion of service to the vast majority as is their objective, yet they continue to 1 GSMA Report: Survey of Universal Service Funds (2013) of a countries’ citizens and the increasingly accumulate large sums of money. 2 ITU Report: Universal Service Fund and Digital Inclusion large accumulations of undisbursed funds. for All (2013) There is little evidence that USFs are The reality is that most funds have an effective way to achieve universal performed poorly in achieving universal service goals and many have, in fact, access. Studies by the GSMA1 and the ITU2 been counterproductive, because they show that across the world, more than half tax communications customers, including of the sums collected for USFs were never those in rural areas, and therefore raise the utilised and over a third of the funds were barrier to rural investment. not able to distribute any of the levies collected. When administered ineffectively, USFs can be counterproductive in that, by effectively taxing communications customers, they actually serve to raise the affordability barrier.

Resources: GSMA Report: Survey of Universal Service Funds, Key Findings GSMA Connected Society: Are Universal Service Funds an Effective Way To Achieve Universal Access? 118 Spectrum Management and Licensing Mobile Policy Handbook 119

Spectrum Management and Licensing

Mobile networks must continue to evolve communications markets is undermined to close the connectivity gap, respond with the result that network investment to skyrocketing data traffic growth and is stifled. deliver on the immense potential of the nascent Internet of Things industry. All of Instead, to ensure widespread, high- these elements will also be key pillars of quality affordable services, it is essential the 5G mobile future. that a sufficient amount of spectrum is released for mobile use — especially To support this evolution, mobile operators Digital Dividend spectrum — with fair need access to sufficient, internationally access prices. harmonised spectrum. Effective spectrum licensing plays a key role in providing With the World Radiocommunication operators with access to this Conference 2019 (WRC-19) on the horizon, necessary resource. governments should build upon the foundations of previous conferences to Everything starts with solid planning. identify sufficient mobile spectrum to To encourage substantial investment in support the future of the digital society. mobile services, it is important to have a transparent, long-term broadband The work centred around Agenda plan that includes a strategy for making Item 1.13 looks at spectrum for mobile sufficient amounts of spectrum available broadband in frequencies between to the mobile industry. This creates a 24.25 GHz and 86 GHz. The successful certainty that allows the industry to identification of a significant amount of innovate and thrive. these frequencies for international mobile telecommunication (IMT) is vital to realise Spectrum pricing also has a significant 5G’s full potential. impact on investment, and ultimately on mobile services. Governments that The GSMA is very active at national, seek to maximise state revenues from regional and global levels in advocating spectrum pricing, for example, risk much for the timely identification and release of greater costs to society if competition in more spectrum for mobile broadband. 120 Spectrum Management and Licensing Mobile Policy Handbook 121

Core Mobile Bands

Core frequency bands The frequency bands utilised in mobile Band Characteristics: the same area, thereby requiring more for mobile broadband networks today have been designated for Capacity vs. Coverage investment. However, these bands can mobile services internationally through support more mobile broadband traffic Not all radio frequencies are equal, and ITU Radiocommunication Sector (ITU-R) In general, lower-frequency signals below and higher speeds, making them effective mobile network operators require access and harmonised on either a regional or 1 GHz reach further and are better at in more densely populated areas. to a range of frequency bands to support global basis. They are then standardised penetrating buildings. These frequencies affordable, high-quality mobile broadband by 3GPP before commercial deployment. are sometimes called coverage bands It isn’t an either/or proposal, however. A services with excellent coverage. The core The most frequently deployed current because an operator can serve a larger single mobile handset today can support harmonised bands for mobile roughly fall bands are listed below. Although countries area with one base station. These bands a variety of bands, and mobile operators within the frequency range of 400 MHz in different regions have adopted different are particularly important for providing use a combination of different bands to to 5 GHz, with the lower range providing combinations of those bands, regional affordable mobile broadband services in provide good coverage and high data large coverage areas and the higher range and global harmonisation has created rural areas. speeds. For future services, operators are providing higher capacity. economies of scale, which in turn have looking at even higher bands, those above made mobile services and handsets The capacity of a wireless connection 6 GHz, to support data-intensive mobile more affordable. for data or voice calls is dependent on 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 Effects of frequency on range and coverage area and above. These frequencies are often In general, a network that uses higher-frequency spectrum requires more referred to as capacity bands. Deploying a base stations to cover the same area as a network using lower frequencies. network that uses these higher-frequency bands requires more base stations to cover

Cell Radius Mobile network base station Capacity Bands (> 1 GHz) 5800 MHz2100 MHz850 MHz700 MHz< 700 MHz 14142727 15181518 19201920 19198080 21102110 21702170 13013 MH0 MHz z Coverage Bands (<1 GHz) L-bandL-band1 1 2.12. GH1 GHz z 6176652 663 98 7918821 832 62 61766176652652 663663 9898 79187918821821 832832 62 62 17101710 17851785 1801805 5 18801880 23002300 24240000 11 MHz 11 MHz 11 MH11 MHz z 11 MH11 MHz z 2020 MH MHz z TDTDD D 600 MHz 800 MHz 60600 MH0 MHz z 80080 MH0 MHz z 18001800 MH MHz z 2.32. GH3 GHz z 7037733 758 88 8248849 869 94 17101710 17701770 21102110 21702170 25002500 25257070 26202620 26269090 70377037733733 758758 8888 82488248849849 869869 9494 25 MHz 20 MHz 34340 MH0 MHz z TDTDD D 25 25MH MHz z 20 20MH MHz z 700 MHz - Region 1* 850 MHz AWAWS bandS band 2.62. GH6 GHz2z2 70070 MH0 MHz - zRe - gionRegion 1* 1* 850850 MH MHz z 7038748 758 03 8809915 925 60 18501850 19101910 19193030 19199090 33003300 3803800 0 70387038748748 758758 0303 88098809915915 925925 6060 10 MHz 10 MHz 2020 MH MHz z TDTDD D 10 MH10 MHz z 10 MH10 MHz z 700 MHz - APT 700* 900 MHz 19001900 MH MHz z 3.53. GH5 GHz3z3 70070 MH0 MHz - zAP - APT 70T 0*700* 900900 MH MHz z *North America uses a more complex 700 MHz plan 1 B1 andBand plan plan is isunder under de devevelopmenlopment t 2 502 50 MH MHz TDz TDD Din inth the cee centrentre ga gap p *Nor*North Americth America usesa uses a mo a more core mplecomplex 70x 070 MH0 MHz planz plan 3 Ac3 Actualtual rang range dei ers di ers by by re regiongion/c/countountryry 122 Spectrum Management and Licensing Mobile Policy Handbook 123

5G Spectrum

Background The success of 5G services will be heavily Industry Position WRC-19 will be vital to realise the ultra- reliant on national governments and high-speed vision for 5G, so government 5G will support significantly faster mobile regulators. Most notably, the speed, reach 5G needs a significant amount of support for the mobile industry throughout broadband speeds and heavier data and quality of these services will depend new harmonised mobile spectrum. the process is vital. The GSMA recommends usage than previous generations of mobile on governments and regulators supporting Regulators should aim to make available the 26 GHz, 40 GHz and 66-71 GHz bands technology while also enabling the full timely access to the right amount and type 80-100 MHz of contiguous spectrum are supported for mobile, and that the 45.5- potential of the Internet of Things (IoT). of spectrum, under the right conditions. per operator in prime 5G mid-bands 52.6 GHz range is studied in more detail. From autonomous cars and smart cities Spectrum awards for 5G have already (e.g., 3.5 GHz) and around 1 GHz per to the industrial internet and fibre-over- begun and the variation in the amount of operator in millimetre wave bands Licensed spectrum should remain the-air, 5G will be at the heart of the future spectrum assigned, as well as the prices (i.e., above 24 GHz). the core 5G spectrum management of communications. 5G is also essential paid, means the potential of 5G services model. Unlicensed bands can play a for preserving the future of today’s most will vary between countries. This is because 5G needs sufficient spectrum in three key complementary role. popular mobile applications — such as on- these factors impact the quality and frequency ranges to deliver on prime 5G demand video — by ensuring that growing capacity of 5G services and ultimately usage cases: Setting spectrum aside for vertical markets uptake and usage can be sustained. the competitiveness of national in priority 5G bands could jeopardise the digital economies.. Sub-1 GHz will support widespread success of public 5G services and may The technology will address four key coverage across urban, suburban and rural waste spectrum. Sharing approaches, such usage scenarios: areas and help support IoT services. as leasing, are better options where vertical Debate markets require access to spectrum. • Enhanced mobile broadband, including 1-6 GHz offers a good mixture of coverage multi-gigabit per second (Gbps) How much spectrum do regulators and capacity benefits and includes Governments and regulators should avoid data rates. need to make available in key bands spectrum within the 3.3-3.8 GHz range, inflating 5G spectrum prices (e.g., through to support high-quality 5G services? which is expected to form the basis of many excessive reserve prices or annual fees) as • Ultra-reliable communications, including initial 5G services. they risk limiting network investment and very low latency (sub-1 ms), very high driving up the cost of services. availability and very high security. Should regulators aim to maximise Above 6 GHz is needed for the ultra- state revenues or socio-economic high broadband speeds envisioned for Regulators must consult 5G stakeholders • Massive machine-type communications, benefits when assigning 5G 5G. Currently, the 26 GHz and/or 28 GHz to ensure spectrum awards and licensing including the ability to support a huge spectrum? bands have the most international support approaches consider technical and number of low-cost IoT connections. in this range. Establishing international commercial deployment plans. agreement on 5G bands above 24 GHz • Fixed-wireless access, including the What role could unlicensed and will be a key focus of the ITU World Governments and regulators need to adopt ability to offer fibre-type speeds in both shared spectrum play within 5G? Radiocommunication Conference national spectrum policy measures to developed and developing markets. in 2019 (WRC-19). encourage long-term heavy investments in 5G networks (e.g., long-term licences, clear renewal processes, spectrum roadmaps, etc.).

Resources: GSMA Public Policy Position: 5G Spectrum GSMA Future Networks 5G website GSMA Report: The 5G Era – Age of Boundless Connectivity and Intelligent Automation 124 Spectrum Management and Licensing Mobile Policy Handbook 125

Digital Dividend

Background Debate Industry Position Regional harmonisation of the bands will maximise economies of scale for The Digital Dividend is the spectrum What goals should governments try The Digital Dividend should be allocated equipment manufacturers (helping to drive made available for alternative uses to achieve when relicensing Digital for mobile use in alignment with down the cost of handsets for consumers) following the switchover from analogue Dividend bands? regionally harmonised band plans as and mitigate interference along national to digital terrestrial television, as digital soon as possible. borders. For these reasons: broadcasting uses spectrum far more efficiently than analogue broadcasting. How important is spectrum The switchover to digital television • Asia Pacific and Latin America should harmonisation when planning supports the delivery of a wide variety of adopt the APT 700 MHz band plan. Digital Dividend spectrum is ideal for for the Digital Dividend? high-definition broadcast content, while mobile broadband because it consists of also improving the provision of mobile • Europe, the Middle East and Africa lower-frequency bands that can cover broadband services. Licensing as much should adopt the ITU Region 1 700 MHz wider areas with fewer base stations than Digital Dividend spectrum as possible for band, which is compatible with APT 700 current mobile broadband spectrum which mobile use is key if governments are to MHz equipment. relies on higher frequencies. This lowers give their citizens access to affordable, deployment costs and allows operators high-quality, mobile broadband services. • Countries from ITU Region 2 and 3 to provide broader, more affordable (US, Mexico, New Zealand, etc.) are coverage, especially in rural areas. 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 Digital Dividend spectrum also delivers as this can lead to spectrum remaining important foundation towards global benefits in urban areas, as it supports unsold and risks impacting network harmonisation of the band. improved indoor coverage, because investment and deployment, while also these frequencies can more easily potentially leading to higher mobile phone penetrate buildings. bills. Ultimately, excessive spectrum fees have the potential to limit the socio- The initial upgrade to digital television economic benefits that affordable mobile created two potential new mobile bands. broadband access can deliver. 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 Resources: as Bangladesh, Colombia, Mexico, New 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 Zealand and the United States. GSMA Public Policy Position: Asia Pacific Digital Dividend/UHF Band Plans GSMA & ASIET 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 126 Spectrum Management and Licensing Digital Dividend Mobile Policy Handbook 127

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

Source: GSMA Intelligence, August 2018 128 Spectrum Management and Licensing Mobile Policy Handbook 129

Limiting Interference

Background Debate Industry Position

Radio transmissions always have the Are guard bands the only way Interference can be managed with proper potential to interfere with radio systems to prevent interference between planning and mitigation techniques. operating in adjacent frequency bands, mobile bands and systems using due to transmitter imperfections or adjacent bands? For mobile telecommunications, regional imperfect receiver filtering. harmonisation of allocated mobile bands is the best way to avoid interference along New technologies are better at mitigating Should potential interference be national borders. interference, although they can be more solved ex-ante by the national costly because of equipment complexity regulatory authority before Issues of cross-border interference are and energy consumption. allocating new spectrum to mobile usually addressed through bilateral operators, or should this be left to or multilateral agreements among The solution is to define radio transmitter the operators? neighbouring countries. and receiver parameters to ensure compatibility between radio systems To minimise guard-band size and the cost operating in the same or adjacent of interference mitigation, radio system frequency bands. This approach cannot, standards defining the RF performance of however, be applied to technologies that transmitters and receivers are necessary. lack standards. Broadcasters are rightly concerned that The traditional way to manage mobile services introduced in the UHF interference has been to establish guard band do not interfere with television bands that are left vacant. However, reception, and mobile operators are these guard bands reduce the overall equally concerned that this does not efficiency of spectrum use. Other happen. A television receiver standard interference-mitigation techniques should would improve the situation. 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 Resources: along country borders and delivering cost benefits for consumers. GSMA Reference Document: Managing Radio Interference GSMA Briefing Paper: WRC Agenda Item 1.17 — Broadcast Interference — GSMA GSMA Reference Document: Potential for Interference to Electronics 130 Spectrum Management and Licensing Limiting Interference Mobile Policy Handbook 131

Case Study Case Study

Real-World Experience of 800 MHz LTE Coexistence at800 in the United Kingdom

Because Digital Dividend spectrum is, by definition, adjacent to frequency bands that In 2012, mobile operator licensees in the UK set up a joint venture called at800 to act continue to be used for television broadcasting, regulators and industry have worked hard as the mechanism for resolving television interference issues when LTE services were to ensure that mobile services using the 800 MHz Digital Dividend band do not interfere launched in the 800 MHz band. 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 The four mobile operators are shareholders, and each had to contribute £30 million per countries have begun to deploy LTE networks using Digital Dividend spectrum, these 5 MHz lot acquired. at800 was then responsible for collecting information about each concerns can largely be put to rest. 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 In Germany, as of October 2012, more than 4,600 800 MHz base station sites had been manages the call centre, posts filters to consumers and sends engineers to fix any deployed, in urban, suburban and rural areas. Reported incidents of interference were remaining problems. Any funds remaining after the completion of the programme will very low. Six cases of interference with digital terrestrial television were reported, and this be divided among the shareholders. In practice, it has become apparent that the scale of includes the most critical case, involving the lower block of LTE spectrum and TV channel interference was greatly overestimated. 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 In August 2017, at800 achieved a 100 per cent pass rate against its primary KPI, as it had regulator), and six involved other radio services and applications. every month in the previous year. For example, all 393 confirmed 4G interference cases in August 2017 were resolved within the 10-working-day target. For disruption that is In Sweden, hundreds of 800 MHz base station sites have been deployed, with the first- not related to LTE at 800 MHz, at800 directs viewers to organisations that may be able line response for reported interference managed jointly by the mobile operators. During to help. 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 132 Spectrum Management and Licensing Mobile Policy Handbook 133

Spectrum Auctions

Background When assigning spectrum via an auction, Industry Position spectrum. They should not be designed governments typically have a number of to maximise short-term revenue for Spectrum management for mobile goals to achieve, which may include: Efficient allocation of spectrum is governments. The following key principles telecommunications is increasingly complex necessary to realise the full economic can help guide licensing authorities: as governments release new spectrum in • The maximum long-term value to the and societal value of mobile. existing mobile bands, manage the renewal economy and society from the use of • Auctions can deliver strong social of licences coming to the end of their initial the spectrum. There is no ‘one size fits all’ design for benefits as long as they are properly term, and release spectrum in new bands for spectrum auctions. Each auction needs designed. mobile broadband services. • Efficient technical implementation to be designed to meet the market of services. circumstances and to achieve the specific • High spectrum prices jeopardise the Effective and efficient management of objectives set by government. effective delivery of wireless services. these processes is central to the continued • Sufficient investment to roll out investment in, and development of, networks and new services. As with most auction design elements, the • Spectrum licences should be technology mobile services. appropriateness of simultaneous auctions and service neutral. • Revenue generation for the government. (multiple bands being auctioned together) Auctions are an efficient way to allocate versus sequential auctions (bands • Licence conditions should be used spectrum when there is competition for • Adequate market competition. being auctioned one after the other) is with caution. scarce spectrum resources and demand is dependent on specific market conditions. expected to exceed supply. However, they • A fair and transparent allocation process. The effectiveness of either approach • Licence duration should be at least 20 need to be carefully planned if they are to will be dependent on a clear spectrum years to incentivise network investment. lead to successful outcomes. In-demand road map with well-defined rights and Digital Dividend spectrum — which is the key Debate conditions understood in advance. • Competition can be supported by to extending affordable mobile broadband licensing as much spectrum as possible services — has gone unsold in several How is the value of spectrum Regulators should work with stakeholders and limiting charges and other barriers developing markets because governments best determined? to ensure the auction design is fair, to services. have set excessively high reserve prices.1 transparent and appropriate for the specific market circumstances. Auctions • Voluntary spectrum trading should There are a number of different possible Should governments design are not the only option available to be encouraged to promote efficient auction designs, each with its strengths and auctions to maximise revenue governments to manage spectrum spectrum use. limitations. While multi-round auctions are in the short term, or to ensure allocation and should only be used in

often preferred, the best choice is dependent an economically efficient means appropriate circumstances. 1 In 2016 alone, part or all of the Digital Dividend mobile on the market circumstances and the of allocating a scarce resource? spectrum went unsold in Ghana, Senegal and India. objectives of the government and regulators. Auctions should be designed to maximise the long-term economic and social benefits that can be gained from use of the

Resources: GSMA & CEG Report: Best Practice in Mobile Spectrum Licensing Countries that get their licensing approach right can better realise the GSMA & NERA Report: Effective Spectrum Pricing: Supporting Better Quality and More Affordable potential of mobile broadband, bringing substantial benefits to consumers Mobile Services and businesses in terms of innovative, high-quality services and lower GSMA Report: Spectrum Pricing in Developing Countries — Evidence to Support Better and More costs of provision. Affordable Mobile Services GSMA Public Policy Position: Spectrum Auctions — Competition Economists Group, 2016 GSMA Managing Spectrum website 134 Spectrum Management and Licensing Spectrum Auctions Mobile Policy Handbook 135

Case Study

Rising Spectrum Prices Harming Consumers and the Digital Economy India: Enough Spectrum Made Available but Hooked on High Reserve Prices 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 In a 2015 auction, the main Indian carriers had competed intensely to retain their became common, the average final price paid for spectrum sold at auction increased 3.5 existing spectrum holdings. However, when fresh spectrum was made available fold.1 A key factor behind this significant rise was a number of outlier auctions where final in a 2016 auction across the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, prices were extremely high. 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 High spectrum prices are associated with more expensive, lower-quality mobile extremely high level, having based it on 1800 MHz prices achieved in the hotly broadband services and irrecoverable losses in consumer welfare worth billions of dollars contested 2015 auction (the 700 MHz price being four times what was paid for 1800 worldwide.2 For example, research shows that when prices are too high, operators are MHz). As a result, the final revenues from the auction were less than anticipated — likely to invest less in their networks — which impacts the quality and reach of services. only $9.9 billion of total revenues as opposed to $85 billion of total reserve prices. High spectrum prices are particularly harmful in developing countries where they have There were no bids for the 700 MHz band and bids for 850 MHz, 2100 MHz and 2500 become a major roadblock to increasing much-needed mobile penetration. Pricing in MHz spectrum were also very limited, with many blocks in several circles unsold. The developing countries is, on average, more than three times higher than in developed entire 2300 MHz spectrum was sold and 80 per cent of 1800 MHz spectrum that was countries, when income is taken into account.3 put up for auction was also sold.

The cause of these extremely high prices are typically policy factors that appear to Thailand: Expensive Rationed Spectrum Hampers Investment prioritise maximising short-term state revenues above long-term support for the digital economy through improved mobile services. Policy factors include setting excessive In 2015, Thailand auctioned 1800 MHz spectrum in November, followed by reserve prices, making insufficient spectrum available for auction, while also providing 900 MHz spectrum in December. The winning bids in the December auction were a lack of clarity on future releases or the process of renewing expiring licences. Such almost six times the reserve price for the 900 MHz spectrum and more than double factors can create uncertainty, artificial scarcity of spectrum and encourage excessive the final proceedings for the 1800 MHz spectrum auction. In total, the auction of just bidding above operators’ true valuations of the licences on offer. 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 Spectrum is a valuable asset and governments have the option to use it to raise revenues auctions demonstrate what can happen in markets where spectrum is artificially to fund vital state activities. However, the primary goal in all awards should be to rationed and there is no clear roadmap for its release. Although the auctions raised encourage the most efficient use of spectrum through investment in widespread, high- huge funds for the Thai government, they have dramatically reduced the Thai quality networks. Many countries around the world successfully strike the right balance operators’ ability to invest in their networks and services. This is likely to hold back between raising revenues and delivering efficient spectrum awards. To do this, the GSMA the development of Thailand’s digital economy and the country runs the risk of recommends that governments and regulators: falling behind other countries in South East Asia.

1. Set modest reserve prices and annual fees, and rely on the market to set prices. In the words of Brett Tarnutzer, Head of Spectrum, GSMA, “Acquiring spectrum is only 2. License spectrum as soon as it is needed, so as to avoid artificial spectrum scarcity. the first step before making the necessary investment in network deployment to deliver mobile services to consumers. Unreasonably high reserve prices lead to spectrum 3. Avoid measures which increase risks for operators, forcing them to overbid remaining unsold, delays in the delivery of mobile services and, ultimately, an increase in for spectrum. consumer tariffs.”

4. Publish long-term spectrum award plans that prioritise welfare benefits over 1 GSMA & NERA Economic Consulting Report: Effective Spectrum Pricing — Supporting Better Quality and More state revenues. Affordable Mobile Services, 2017 2 Ibid NERA, 2017 3 GSMA Report: Spectrum Pricing in Developing Countries — Evidence to Support Better and More Affordable Mobile Services, 2018 136 Spectrum Management and Licensing Mobile Policy Handbook 137

Spectrum for Drones (UAVs)

Background networks can also provide the connectivity Industry Position devices that are ‘off the ground’. Similarly, if to support an air traffic management regulators choose to classify mobile services Unmanned Aerial Vehicles (UAVs), or system for UAVs, as well as enabling no-fly Licensed mobile spectrum enables for UAVs as an ‘aeronautical mobile service’ drones as they are commonly referred zones and issuing commands such as flight widespread, high-quality connectivity then the bands mobile operators can use to, have the potential to deliver profound path updates. for UAVs with sufficient capacity to may be restricted. This would adversely socio-economic benefits. These range support competitive services and rising affect the coverage and capacity of the from transforming how businesses deliver But these significant benefits can only be usage levels. resulting LTE services, as well as competition their products to supporting life-saving realised if regulators remove barriers in the in markets to provide such services. services such as drug delivery in remote way of using of mobile networks to support Mobile services in licensed bands are areas. However, this is all contingent on UAVs — most notably those associated with well established worldwide in mature It is not clear that any such restrictions effective UAV authentication, monitoring the use of licensed mobile spectrum. networks, so could be used to support UAV on the use of mobile spectrum would be and connectivity. connectivity today if permitted by regulators. justified given there is no evidence that Mobile operators typically have exclusive mobile-connected UAVs present interference In Europe alone there are expected to be Debate access to coverage spectrum (i.e., below concerns to other wireless services. over 400,000 commercial and government 1 GHz) to reliably cover very wide areas and UAVs by 2050.1 Current aeronautical Should regulators permit licensed capacity spectrum (i.e., above 1 GHz bands) Regulators should also adopt a service communication systems are not designed mobile spectrum to be used for which supports very fast data speeds. Taken and technology neutral framework to to manage such a huge new fleet of UAV connectivity? together this means operators can support fully support UAVs. It is essential that vehicles, nor can they enable them to very safe, reliable, wide-area broadband governments provide a regulatory operate effectively in built-up urban areas connectivity for UAVs. framework for licensed spectrum that and support high-bandwidth traffic such as facilitates the development and growth streaming video. Another benefit of licensed mobile spectrum of UAV connectivity, and does not impose is that it can support affordable UAV service or technological restrictions that Mobile networks already provide wide area connectivity worldwide. Mobile spectrum hold back innovation. Operators should broadband connectivity and sim cards are bands are often harmonised regionally or not be prevented from deploying any a trusted authentication mechanism. Trials globally, so economies of scale already exist mobile technology in their spectrum to have shown that terrestrial mobile networks to support affordable radio equipment support UAVs. Spectrum licences which are are able to safely support UAV connectivity for UAVs. technology specific may limit the ability to at altitudes of at least 400 feet.2 Mobile 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 1 SESAR, European UAVs Outlook Study, 2016. decide that mobile spectrum licences may 2 Several trials have taken place including those held not be used to provide connectivity to by Nokia and Qualcomm.

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 138 Spectrum Management and Licensing Mobile Policy Handbook 139

Spectrum for IoT

Background The latest mobile standard — 3GPP Industry Position International spectrum harmonisation is vital Release 13 — supports all the key for the development of a global, affordable The Internet of Things (IoT) is a hugely requirements for mobile IoT technologies, Licensed spectrum is vital in order to mobile IoT market. This is because it enables important and rapidly growing market including: long battery life, low device deliver the most reliable IoT services. the development of mass-market, low-cost with the potential to transform the cost, low deployment cost, widespread This is because of its unique ability mobile IoT devices, through the creation of digital economy. Mobile services play an coverage and support for a massive to support quality of service guarantees an addressable market that is large enough important role in the wide-area IoT market number of devices. over wide areas, as networks using to support manufacturing economies and are evolving to meet a growing array licensed spectrum are not at risk of of scale. of different requirements. For example, The mobile industry already plays a interference and operators can control the key markets for mobile IoT solutions significant role in the wide-area M2M usage levels on their networks. Harmonised mobile spectrum is needed include the utility, medical, automotive and market — most notably via GSM systems to support all wide-area IoT use cases, retail sectors. This is in addition to current for low-bandwidth applications, such as As a result, licensed mobile IoT may be the including coverage bands for Low-Power consumer electronics devices, including vending machines, and through 3G and only choice for services that require concrete Wide-Area (LPWA) use cases and capacity e-book readers, GPS navigation aids and 4G-LTE for high-bandwidth applications assurance levels, such as security and bands for high-bandwidth applications like digital cameras. such as streaming video. medical applications. video streaming.

According to data from GSMA Intelligence, Licensed spectrum has the capacity and Regulators should work with the mobile the total number of IoT connections is Debate coverage capabilities to support IoT growth. industry to support IoT in 5G spectrum predicted to grow from just over nine Crucially, the IoT technologies included planning, as 5G is expected to play an billion (9.1 billion) in 2018 to 25 billion How can governments and in the latest mobile standard, Release important role in the evolution of by 2025, with the total IoT revenue regulators use spectrum policy 13, significantly build on the coverage mobile IoT. opportunity worth $1.1 trillion by 2025. to incentivise the rapid roll out capabilities of existing spectrum. of IoT services? The bulk of the machine-to-machine The viability of mobile IoT is contingent on (M2M) market (92 per cent) uses short- governments adopting a positive regulatory range, unlicensed connections (e.g., Wi-Fi What are the benefits of using framework, especially as it pertains to mobile and ZigBee), while the wide-area market licensed spectrum for IoT? spectrum. This type of framework must not is heavily reliant on mobile connectivity. impose service or technological restrictions Licenced cellular IoT connections (cellular that hold back innovation. Instead it should M2M and licenced LWPA) are expected be designed to nurture evolution in the to grow from 1.1 billion in 2018 to 3.5 billion capabilities of mobile networks and allow the by 2025. market to decide which solutions will thrive.

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 Resources: other IoT solutions. GSMA Public Policy Position: Internet of Things GSMA Guide: The Internet of Things GSMA Video: The Internet of Things — A World of Opportunity 140 Spectrum Management and Licensing Mobile Policy Handbook 141

Spectrum Harmonisation

Background with an important mix of internationally Industry Position All markets should harmonise regionally harmonised coverage and capacity where possible, as this benefits the entire Spectrum harmonisation refers to the spectrum to meet the growing demand for Governments that align national use global mobile ecosystem. There is no uniform allocation of radio frequency bands, mobile services. Spectrum harmonisation of the spectrum with internationally advantage in going it alone. under common technical and regulatory through the WRC process is also key harmonised band plans will achieve the regimes, across entire regions. A country’s to enabling lower-cost mobile devices greatest benefits for consumers and Cognitive radio technologies will not adherence to internationally identified through economies of scale. avoid interference along their borders. reduce the need for harmonised mobile spectrum bands offers many advantages: spectrum anytime soon. Adhering to At a minimum, harmonisation of mobile internationally recognised band plans is • Lower costs for consumers, as device Debate bands at the regional level is crucial. Even the only way to achieve large economies manufacturers can mass-produce small variations on standard band plans of scale. devices that function in multiple How harmonised does a band can result in device manufacturers having countries on a single band. need to be to realise the benefits to build market-specific devices, with of harmonisation? costly consequences for consumers. • 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 a mobile that the benefits of spectrum device abroad. harmonisation are inconsequential?

• Fewer issues of cross-border interference. In the future, will cognitive At the World Radiocommunication technologies enable devices to tune Conference (WRC) in 2015 in Geneva, dynamically to any band removing agreement was reached on the creation the need for countries to harmonise? of three global spectrum bands for mobile — 700 MHz, 1427-1518 MHz and 3.4-3.6 GHz. The outcome provides the industry

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 Resources: spot for both wide coverage and high speeds. It will give top-quality internet GSMA & Boston Consulting Group Report: The Economic Benefits of Early Harmonisation of access to all Europeans, even in rural areas, and pave the way for 5G, the next the Digital Dividend Spectrum and the Cost of Fragmentation in Asia-Pacific generation of communication network. GSMA & Plum Consulting Report: The Benefits of Releasing Spectrum for Mobile Broadband in Sub-Saharan Africa — Andrus Ansip, Vice-President for the Digital Single Market, European Commission, 2016 GSMA Report: Economic Benefits of the Digital Dividend for Latin America 142 Spectrum Management and Licensing Spectrum Harmonisation Mobile Policy Handbook 143

Deeper Dive

World Radiocommunication Conference 2019 (WRC-19) Another band that holds strong interest for the mobile industry is 66-71 GHz. The decision by the Federal Communications Commission in the US to use this band for 5G adds Spectrum harmonisation has created economies of scale for existing generations of momentum to the existing support for this band in Europe, Africa and member countries mobile networks, which in turn have made mobile services and handsets more of RCC. The GSMA supports the identification of the 66-71 GHz band for International affordable. To become a success, widely harmonised mobile spectrum is again needed to Mobile Telecommunications (IMT) and believes it should be available for use by 5G ensure 5G meets its future expectations and delivers the full range of affordable services. systems with flexibility to allow for different licensing regimes, thus enabling its use by both IMT and non-IMT technologies. 5G networks require spectrum within three key frequency ranges: sub-1 GHz, 1-6 GHz and above 6 GHz. The availability of widely harmonised spectrum for 5G in the latter It is important to remember that the WRC process is a long-term endeavour. Spectrum frequency range will depend to a large extent on the decisions made at WRC-19. This identified at WRC-19 will be in use for decades to come, so it is important to get involved spectrum is needed for 5G to be able to offer multi-gigabit per second (Gbps) data rates and ensure the details are correct now, irrespective of when the first commercial 5G and to support very low latency (sub-1 ms). services will be launched.

The work at WRC-19 includes Agenda Item 1.13 (AI 1.13), which looks at spectrum WRC-19 runs from 28 October to 22 November 2019. Here are the GSMA’s for mobile broadband between 24.25 and 86 GHz. In total, eight frequencies are recommendations on how to succeed at the conference: being considered: • Advocate positions as much as possible at national and regional levels before the conference. Frequencies being considered under Agenda Item 1.13 • Familiarise yourself with the process and structure of the conference to make it easier • 24.25-27.5 GHz • 50.4-52.6 GHz to follow the agenda items. • 31.8-33.4 GHz • 66-71 GHz • Know who you can ask for help on important issues. • 37-43.5 GHz • 71-76 GHz

• 45.5-50.2 GHz • 81-86 GHz • 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.

The GSMA advocates for identification of the 26 GHz, 40 GHz and 66 GHz bands. The 26 • Have fall-back positions ready if the optimum outcome can’t be reached. GHz band (24.25-27.5 GHz) is already gaining traction and has been chosen in Europe as a ‘pioneer band’. Africa, the Middle East, Asia, member countries of RCC and parts of • Don’t assume that decisions are just rubber stamped by the plenary during the last the Americas are also planning to use this band for 5G. Identifying the band for IMT at couple of days. WRC-19 sets the stage for harmonisation and helps build the scale necessary for low-cost devices and services. There are also technical and economic benefits. For example, as the • Manage energy levels — the WRC is a marathon, not a sprint: prioritisation is key 26 GHz band is adjacent to the 28 GHz band, it allows for economies of scale and early to a successful outcome. equipment availability. The 28 GHz band will be used as the first millimetre-wave 5G band in the US, Korea, Japan and Canada, with implementation done outside of the WRC-19 Learn more about the WRC process at: www.gsma.com/spectrum/wrc-intro process and under an existing mobile allocation.

The GSMA also supports the identification of 37-43.5 GHz (known as the 40 GHz band) for IMT. Identifying the whole band for IMT at WRC-19 allows for flexibility. For example, it lets different countries and regions choose which part of the band to implement. 144 Spectrum Management and Licensing Mobile Policy Handbook 145

Spectrum Licensing

Background Debate Industry Position To the maximum practical extent, spectrum should be identified, allocated and Spectrum licensing is central to the What is the most effective way Spectrum rights should be assigned licensed in alignment with internationally delivery of high-quality mobile broadband to license spectrum? to the services and operators that can harmonised mobile spectrum bands to services and long-term, heavy investment generate the greatest benefit to society enable international economies of scale, in networks. from the use of that spectrum. reduce cross-border interference and What conditions should be tied facilitate international services. The amount of spectrum made available to spectrum-access rights? Regulatory authorities should foster and the terms on which it is licensed a transparent and stable licensing For new spectrum allocations, market- fundamentally drive the cost, range and framework that prioritises exclusive based approaches to licensing, such as quality of mobile services. Are licensing rules the best way to access rights, promotes a high quality of auctions, are the most efficient way to ensure a healthy, well-functioning service and encourages investment. assign spectrum to the bidders that value Mobile is a capital-intensive industry mobile sector, or should the the spectrum the most. requiring significant investment in development of the industry Licensing authorities should publish a road infrastructure. Governments’ spectrum be shaped predominantly by map of the planned release of additional The primary goal in all awards should licensing policies — when supported by market forces? spectrum bands to maximise the benefits be to encourage the most efficient a stable, predictable and transparent of spectrum use. The road map should use of spectrum through investment regulatory regime — can dramatically raise take a five- to ten-year view and include in widespread, high-quality networks. the attractiveness of markets to investors. a comprehensive and reasonably detailed Efforts to use awards to raise excessive inventory of current use. revenues, such as through high auction Spectrum management for mobile reserve prices or annual fees, have been telecommunications is complex, as Restrictive licence terms and conditions linked to negative consumer outcomes governments release new spectrum in limit operators’ abilities to use their through reduced network investment existing mobile bands; manage the renewal spectrum resources fully, and risk and increased prices. Instead, auction of licences coming to the end of their initial delaying investment in new services. reserves should be set conservatively term; and release spectrum in new bands In particular, service and technology to let the market determine the price for mobile broadband services. 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 146 Spectrum Management and Licensing Mobile Policy Handbook 147

Spectrum Licence Renewal

Background Debate Industry Position Should a government choose to reappraise the market structure at the Many of the original 2G spectrum licences Which approach to spectrum It is essential that governments time of renewal, the priorities should are coming up for renewal in the next few licence renewal will have the most and regulators implement a clear be to maintain service for consumers years. National regulatory authorities must beneficial outcome for consumers and timely process for the renewal and ensure network investments are determine how mobile operators’ spectrum and society? of spectrum licences. not stranded. Governments should not rights will be affected as licences approach discriminate in favour of, or against, new the end of their initial term. Maintaining mobile service for consumers market entrants, but establish a level Should spectrum licence holders is critical. To ensure this, the approach for playing field. The prospect of licence expiry creates presume they will have the option licence renewal should be agreed at least significant uncertainty for mobile operators. to renew when the licence reaches three to four years before licence expiry. New licences should be granted for 15 A transparent, predictable and coherent the end of its term, unless otherwise to 20 years, at least, to give investors approach to renewal is therefore important, specified in the licence? Governments and regulators should work adequate time to realise a reasonable enabling operators to make rational, long- on the presumption of licence renewal return on their investment. term investment decisions. for the existing licence holder. Exceptions Should governments feel free to should only apply if there has been a Renewed mobile licences should be There is no standard approach to reshuffle spectrum allocations, serious breach of licence conditions in technology and service neutral. relicensing spectrum. Each market needs to change bandwidths or alter licence advance of renewal. 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.

Resources: GSMA Public Policy Position: Licence Renewal GSMA & CEG Report: Licensing to Support the Mobile Broadband Revolution 148 Spectrum Management and Licensing Mobile Policy Handbook 149

Spectrum Sharing

Background Debate Mobile operators favour a simple sharing Sharing can play a role in the 5G era but framework that is investment-friendly poor implementation risks harming its Continually rising data traffic means What role can spectrum sharing and supports reliable, high-quality mobile potential. Mobile operators will need a mobile services must rely on access to play alongside traditional spectrum services. Complex sharing frameworks, core foundation of exclusively licensed growing amounts of spectrum to meet management approaches, such as such as those with three tiers, are likely 5G spectrum, including in millimetre wave demand. However, completely clearing exclusively licensed spectrum and to be less desirable to mobile operators. bands, to support wide-area services, heavy new frequency bands for future mobile use unlicensed spectrum? They may limit the amount of spectrum network investment and good quality of has become increasingly difficult. When for prioritised licensed access — which service. Sharing can play a complementary clearing a band is not possible, spectrum may make a band unsuitable for 5G — and role if the band and sharing framework sharing may offer a way to help by What spectrum sharing frameworks introduce conditions (e.g. relatively low is carefully designed. If sharing means an enabling mobile access to additional bands could be used to enable mobile power limits, small licence areas, short insufficient amount of licensed spectrum in areas, and at times, when other services services and how would they impact licences) that restrict deployment options is available to mobile operators where and are not using them. investment in these services? (e.g. for macrocells or fixed wireless when they need it then sharing may limit, or access) and discourage significant long- eliminate, the potential for 5G in the band. Sharing is only possible if regulations term wide-area network investment. do not prohibit it, commercial measures Spectrum sharing will not succeed incentivise it, and it is technically practical Industry Position Mobile operators should be permitted unless incumbent users are encouraged (i.e., different users can operate effectively to voluntarily share spectrum to support to share their spectrum in areas where without interference). Regulators can Spectrum sharing is an opportunity faster services, improve coverage and drive it is underused and there is clear, and enable sharing by giving incumbent to open up access to new spectrum innovation. They should also be permitted commercially viable, demand from users the right to share their spectrum for mobile services but needs careful to voluntarily establish commercial other users. voluntarily through sharing agreements planning to succeed. It is essential that agreements to lease spectrum to other or by awarding rights to use spectrum in the approach chosen protects the needs types of operators (e.g. verticals or rural Sharing should balance the current areas and/or at times when the incumbent of incumbents, supports the needs wireless internet service providers). and future requirements of incumbents is not using it. Sharing will impose of new users, and avoids limiting the However, it should be noted that sharing and sharers. The success of spectrum opportunity costs on incumbents, so they future evolution of the band including may not always be possible in areas management has been contingent on will generally need to be remunerated for possible repurposing. where it is currently unused. This can be providing reliable, guaranteed access sharing their spectrum, especially if they due to future planned use of the band to spectrum users to allow long-term have paid for access. Exclusive licensing has been central or because the required coordination or investment and enable technology to the success of mobile services and synchronisation measures may undermine evolution. It is vital sharing does not Policymakers increasingly see spectrum must continue. Spectrum sharing good-quality services. undermine this success. sharing as a means of opening up is a complementary, not an additional spectrum for 4G and 5G mobile alternative, approach. services. Their decisions regarding bands and frameworks for sharing are likely to Sharing will only be useful for operators have a significant impact on the quality and if the proposed band is harmonised for coverage of these services, as well as the mobile use and is available and usable in level of investment mobile operators and sufficient quantities in areas and at times other users are willing to make in them. where needed.

Resources: GSMA Public Policy Position: Spectrum Sharing GSMA & Deloitte Report: The Impact of Licensed Shared Use of Spectrum AT&T Public Policy blog: The Power of Licensed Spectrum 150 Spectrum Management and Licensing Spectrum Sharing Mobile Policy Handbook 151

Deeper Dive

Spectrum Sharing Models CBRS-type approaches:

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 The planned ‘Citizens Broadband Radio Service’ approach in the United States in the to consumers without interference. However, as demand for spectrum increases there is 3.5 GHz band aims to support three tiers using dynamic sharing. The top tier are the growing interest in exploring spectrum sharing. incumbents (e.g., radars, satellite companies and wireless ISPs) who have the most protection. The secondary tier are Prioritised Access Licence (PAL) holders, who will There are a variety of frameworks that can be used to implement sharing. These pay to buy rights to use a portion of the available spectrum where it is not in use by frameworks control who can share the band and define respective usage rights and the top tier. The third tier is for General Authorised Access (GAA) and is available limitations. The key variables usually include: to anyone but will have the least protection. Portions of the spectrum are reserved for GAA and PAL tiers in areas where the incumbent is not using the spectrum. PAL The number of access tiers: and GAA users can access each other’s reserved portion of spectrum where it is not registered as being used in the Spectrum Access System (SAS) database.

A one-tier model typically grants everyone the same usage rights. Two-tier models include the incumbent and one class of shared user. Some models add a third tier Licensed Shared Access: with further reduced access rights (e.g., low-power uses).

Incumbent licence holders can sub-license spectrum to other users in a controlled Access guarantees: way. The traditional model was developed in Europe for the 2.3 GHz band. It has two tiers including the incumbent and secondary users (e.g., mobile operators) who are permitted to use the spectrum in areas when it is available. More advanced models The framework outlines the access guarantees that the tiers of users can expect. are being developed. These can include traditional licensing to provide strong guarantees and high quality of service. Concurrent Shared Access (e.g., club licensing):

Access terms, technical conditions and fees (if any): Unlike the approaches above, this only allows one class of user but allows them to share spectrum with each other in a coordinated way. This could allow sharing These define the geographic area over which users may operate and, where between mobile operators to improve data speeds and spectrum efficiency. necessary, for how long and at what cost (e.g., when a tier is licensed). They also include technical conditions (e.g., power levels) which affect coverage. Licence-exempt spectrum (aka unlicensed spectrum):

TV white space: A one-tier approach where the band can be used by multiple systems and services if they meet predefined ‘politeness protocols’ and technical standards. Wi-Fi is a Television spectrum in the UHF band that, due to predictable geographical or technology that uses licence-exempt spectrum. temporal gaps in TV broadcasting, offers the potential for licence-exempt devices to use the spectrum for broadband services — but usage is typically controlled through a database. 152 Spectrum Management and Licensing Mobile Policy Handbook 153

Spectrum Trading

Background Debate Industry Position It makes sense for governments to be notified of spectrum-trading agreements and Spectrum trading is a mechanism by which Should spectrum-trading Countries should have a regulatory to grant approval. Notification requirements mobile network operators can transfer arrangements between operators framework that allows operators to preserve transparency, making it clear which spectrum-usage rights on a voluntary be allowed? engage in voluntary spectrum trading. entities hold spectrum-usage rights and commercial basis. ensuring that trading arrangements are not Spectrum trading creates increased flexibility anti-competitive. Trading spectrum-usage rights is a What role should regulators play in business planning and ensures that relatively recent development. In Europe, in overseeing such arrangements? spectrum does not lie fallow, but instead is Governments should implement most countries that allow the practice used to deliver valuable services to citizens. appropriate and effective procedures for have done so since 2002 or later, and each handling notification requests of spectrum- country has established different rules What regulatory procedures are Spectrum-trading restrictions should only trading agreements. governing the practice. required to ensure transparency be applied when competitive or other and notification of voluntary compelling concerns are present. Trading rules can facilitate the partial spectrum trading? transfer of a usage right, which could Spectrum-trading agreements are governed permit a licensee to use a specified by commercial law and subject to the frequency band at a particular location or rules applicable to such agreements. They for a certain duration. This may result in may also be subject to assessment under more intensive use of the limited spectrum. 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 154 Spectrum Management and Licensing Mobile Policy Handbook 155

Technology Neutrality and Change of Use

Background Debate Industry Position Governments should amend technology specific licences to allow new technologies Technology neutrality is a policy approach Should governments set the We support a licensing approach that to be deployed, enabling operators to that allows the use of any non-interfering technical parameters for a band’s allows any compatible, non-interfering serve more subscribers and provide each technology in any frequency band. use or should the market decide? technology to be used in mobile subscriber with better, more innovative frequency bands. services per unit of bandwidth. In practice, this means that governments allocate and license spectrum for particular Should licence conditions restrict Adopting harmonised, regional band Enabling spectrum licence holders to services (e.g., broadcasting, mobile, operators’ ability to deploy more plans for mobile ensures that interference change the underlying technology of their satellite), but do not specify the underlying efficient technologies and adapt between services can be managed. service, known as refarming, generates technology used (e.g., 3G, LTE or WiMAX). to market changes? Governments should allow operators to positive economic and social outcomes deploy any mobile technology that can and should be allowed. Many of the original mobile licences were technically coexist within the international issued for a specific technology, such How is spectrum coexistence best band plan. as GSM or CDMA, which restricts the managed to prevent interference ability of the licence holder to ‘refarm’ between services and operators Technology neutrality encourages the band using an alternative, more using different technologies? innovation and promotes competition, efficient technology. allowing markets to determine which technologies succeed, to the benefit of Refarming refers to the repurposing of consumers and society. 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.

In Mexico, we are technologically neutral, so operators can innovate and offer better services to consumers. Resources: GSMA Public Policy Position: Change of Use of Spectrum — Mario Fromow, Commissioner at Instituto Federal de Telecomunicaciones, Mexico, August 2018 GSMA & CEG Report: Licensing to Support the Broadband Revolution 156 Spectrum Management and Licensing Technology Neutrality and Change of Use Mobile Policy Handbook 157

Deeper Dive

The 1800 MHz Band: A Global Refarming Success Story for LTE Mapping 4G-LTE Deployments by Frequency Bands 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 As of July 2018, 675 operators worldwide have live LTE networks, covering 208 international roaming. countries. More LTE deployments are now using new bands assigned to mobile service, such as AWS or the 2.3-2.6 GHz frequencies. 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 Other bands not operate on some 4G networks around the world, as they did not support the right frequency bands.

26% 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. 2018 49%

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 25% devices. According to the Global Mobile Suppliers Association (GSA), the 1800 MHz band has the largest device ecosystem of any LTE band, with over 6,171 compatible user devices available as of December 2017. Digital Refarmed 2G/3G Dividend spectrum

Technology and Service Neutrality Incentivises the Adoption Breakdown of bandsMHz of New Technologies Digital Dividend700, 800

Restricting the use of spectrum to particular technologies and services exacerbates Refarmed 2G/3G 850, 900, 1500, 1800, 1900, 2100, 1700/2100 the problem of scarcity of spectrum and prevents customers from gaining access to Other bands450, 2300, 2500, 2600, 3500, 3600, 3700, 5000, 5800 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 Source: GSMA Intelligence 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. 158 Spectrum Management and Licensing Mobile Policy Handbook 159

TV White Space

Background Debate Industry Position The advantages of licensed mobile services over the secondary unlicensed approach Today, several approaches are being What approach should regulators TVWS networks make opportunistic of TVWS include: a more mature and explored to help improve broadband take to TVWS? use of white spaces to provide generally developed ecosystem, better reliability, coverage in rural areas, including gaps that small-scale services on a secondary and higher quality of service and increased might exist between licensed spectrum unlicensed basis. These services aren’t coverage (due to higher power limits for users. The expression ‘white space’ is often What challenges do TVWS allowed to interfere with TV signals, the licensed devices). used to describe these gaps. They are networks face? primary users of the spectrum. Since parts of a spectrum band that are not used the spectrum is shared, devices can New regulatory and technical solutions at a given time in a geographical location. only operate if white space is available are needed to connect everyone. TVWS What role can the technology play and other TVWS devices aren’t using it networks can be used to provide backhaul TV white space (TVWS) describes in helping connect everyone and already. As such, there is no guarantee for Wi-Fi hotspots in rural areas where there spectrum in the television broadcasting everything? users will be able to stay connected or is no cellular connectivity. bands (470–790 MHz in Europe and 470– connect at all. 698 MHz in the Americas, for example). Still, they face challenges related to the Because of necessary geographical For TVWS to work, careful avoidance of availability of equipment, cost and quality separation between television stations on interference is needed with primary licensees of service. Public authorities must carefully the same and adjacent channels, there are such as existing TV broadcasters and other consider this when making long-term varying amounts of unused spectrum. TVWS devices and services in adjacent decisions about spectrum allocations. The bands. Even in the most developed markets same is true when considering how best to The actual amount depends on the this technology hasn’t yet been proven. meet future broadband goals. number of TV stations in a specific area and nearby areas. It is worth noting The roll out of TVWS services should not that commercially desirable geographic be allowed to disrupt the licensing of the locations, such as major urban and Digital Dividend bands for mobile broadband suburban areas with high population and services (i.e., 800 MHz, 700 MHz and business densities, typically have little, if increasingly the 600 MHz band, too). any, TV white space at all. The Digital Dividend is central to extending commercially proven mobile broadband services across whole countries, including rural areas.

The over-eager pursuit of unlicensed sharing models cannot turn a blind eye to the model proven to deliver investment, innovation, and jobs — exclusive Resources: licensing. Industry and government alike must continue with the hard work of GSMA Public Policy Position on TV White Space clearing and licensing underutilised government spectrum where feasible. GSMA Public Policy Position on Spectrum Sharing GSMA Europe Response to Radio Spectrum Policy Group 2010 Work Programme — Joan Marsh, Executive Vice President of Regulatory and State External Affairs, AT&T AT&T Public Policy Blog: The Power of Licensed Spectrum 160 Consumer Protection Mobile Policy Handbook 161

Consumer Protection

With the growing economic and social and non-governmental organisations importance of mobile services, particularly to address concerns related to consumer the mobile internet, there is a protection by: corresponding need to ensure the more than five billion people currently connected • Defining, sharing and promoting global via these services can continue to enjoy best practice. them safely and securely. The challenge is providing this protection while also • Building and participating in cross- ensuring users have control over their sector coalitions. privacy and personal data. • Educating consumers and businesses It is essential for the mobile industry, in the safe use of mobile technologies therefore, to deliver safe and secure and applications. technologies, services and apps that inspire trust and confidence. At the same • Commissioning research that offers time, there is a need to educate consumers real-world insight and evidence. about potential risks and raise awareness of the steps they can take to avoid The following pages provide a small those risks. indication of the work undertaken by the mobile industry to ensure consumers The mobile industry takes consumer continue to be appropriately protected protection seriously. The GSMA and its and informed as they enjoy the full range members play a leading role in developing of benefits that mobile technology and implementing appropriate safety and makes possible. security solutions, technical standards and protocols. They also work with governments, multilateral organisations 162 Consumer Protection Mobile Policy Handbook 163

Addressing Cybersecurity Challenges

The internet and mobile connectivity and reducing vulnerabilities. They test Given that risks are dynamic and not • Contributing to the development of have become ever-more pervasive and networks for weaknesses and build their confined to national borders, sustained, globally recognised, industry-led, embedded in daily life, so there is a capacity to detect and deter malicious international multi-stakeholder cooperation voluntary consensus security standards, corresponding need to ensure people can attacks on current-generation and future is key in all areas of security to manage assurance programmes and conformity continue to use these increasingly essential networks. The GSMA and its members risks. Furthermore, robust security assessment schemes. services safely and securely. The mobile support the principles of 'security-by- measures must be adopted by the entire industry has worked to educate consumers design' to be applied across the digital value chain. Looking ahead, mobile • Participating in capacity building and in while incorporating new features and value chain. operators and the GSMA will remain public-private partnerships to share best enhancing existing security capabilities engaged in a number of activities, including: practices with other stakeholders. such as encryption, integrity checking and • Protecting public safety. Mobile

user identification validation into mobile networks are considered to constitute • Continuing to invest in the security of 1 A useful overview of definitions can be found in ENISA’s services, minimising the potential for fraud, critical national infrastructure in many their own networks, devices and services report: Definition of Cybersecurity – Gaps and overlaps identity theft and other possible threats. jurisdictions and they play a key role and building the capacity to detect in standardisation. in protecting the public, for example and deter malicious attacks, improving 2 GSMA Report: Safety, Privacy and Security Across the Mobile Ecosystem for All (2013). Governments and policymakers have put by enabling people to call emergency preparedness and incidence response. in place measures to prevent cyberattacks, services. Operators have a legal which are not only harmful and criminal, but obligation to assist law enforcement undermine trust in digital services. National agencies, which they do while being and regional strategies have been adopted supportive of human rights concerns. in many countries to strengthen resilience, Personal privacy, security and data protection build capacity and fight cybercrime. • Protecting consumers from fraud. Fraudulent attacks take many forms, Protecting Consumers from illegal activity and 1 ‘Cybersecurity’ is not often clearly defined such as identity theft, financial fraud, anti-social behaviour and can cover a number of areas. Generally, phishing, SMiShing or vishing, where it refers to the protection, by any means, victims are tricked to reveal sensitive of network-related systems and devices personal information and service access and the software and data they contain. credentials. Operators implement As such, cybersecurity typically comprises solutions to prevent the use of networks the protection of technical infrastructure, to commit fraud and the use of devices to procedures and workflows, physical harm consumers. Protecting Networks And Devices assets, national security as well as the to keep communications confidentiality, integrity and availability • Protecting consumer privacy. secure (CIA triad) of information. Information security implies that Protecting Privacy information, including personal data, and securing customer data The mobile industry has a long history of is not accessible or disclosed to providing secure products and services to unauthorised individuals, entities or its customers in the following ways:2 processes, and that it is maintained, complete and available, throughout its • Protecting network infrastructure life. The GSMA has done extensive work and devices. Operators are constantly on data protection and data privacy. improving standards, deploying better Protecting Public Safety versions of technology, identifying risks and meeting legal obligations 164 Consumer Protection Mobile Policy Handbook 165

Children and Mobile Technology

Background Mobile devices increasingly play a role in Industry Position The GSMA takes part in international formal education and informal learning. In initiatives related to safeguarding children Young children and teenagers are developing and rural areas, as well as places Mobile devices and services enhance the online, including contributing to the ITU’s enthusiastic users of mobile technology. where certain people — girls in particular — lives of young people. This perspective Child Online Protection programme, and Young people’s knowledge of mobile are excluded from formal education, mobile needs to be embraced, encouraged and actively engages with governments and applications and platforms often surpasses connectivity offers new opportunities better understood by all stakeholders to regulators looking to address this issue. that of parents, guardians and teachers, and to learn. ensure young people get the maximum Through its Capacity Building programme, children now use social networking services benefits from mobile technology. for example, the GSMA helps policymakers more than their parents. Like any tool, mobile devices can be used in better understand children’s use of ways that cause harm, so children require Addressing safe and responsible use of technology, and discusses strategies for For growing numbers of young people, guidance in order to benefit from mobile mobile by children and young people encouraging young people to become mobile technology is an increasingly technologies safely and securely. is best approached through multi- positive, engaged, responsible and resilient important tool for communicating, stakeholder efforts. users of digital technology. accessing information, enjoying The mobile industry has taken active steps entertainment, learning, playing and being in the area of safe and responsible use of Working closely with Unicef, the GSMA and Young people are critical to the evolution creative. As mobile technology becomes mobile services by children. The GSMA its mobile operator members — as well as of the mobile sector as they represent increasingly embedded into everyday has played a leading role in self-regulatory a range of other organisations including the first generation to have grown up in life, mobile phone operators can play an initiatives dealing with issues such as the International Centre for Missing and a connected, always-on world. They are important role in protecting and promoting parental controls, education and awareness. Exploited Children (ICMEC) and INHOPE — future consumers and innovators who children’s rights. hold national and regional multi-stakeholder will deliver the next wave of innovation workshops on the issue. These workshops in mobile. Mobiles can be key enablers to access: Debate bring together policymakers, NGOs, law enforcement and industry, to facilitate the • Skills for employment. What potential harm are development of collaborative approaches to children exposed to in the online safe and responsible use of the internet. • Enhanced formal and informal education environment? and learning. Through its mYouth programme, the GSMA also works closely with Child Helpline • Information and services to aid in health, How can all stakeholders navigate International to foster collaboration well-being and support. tensions between differing child between mobile operators and child rights in the digital world? helplines in promoting children’s rights — • Improved social and civic engagement. in particular their right to be heard — and to work together on areas of mutual • Opportunities to play and to be creative. concern, such as safer internet.

Our partnership with the GSMA is one of our most productive and engaging. Children everywhere are ever more digital and mobile; GSMA’s leading- Resources: edge policy and practice on keeping children safe and productive in their UNICEF Guidelines for Industry on Child Online Protection website ever-changing digital environments are vital in enhancing the knowledge UNICEF Tools for Companies in the ICT Sector website and capacity of our member child helplines to prevent harm and respond to ICT Coalition website children and young people. GSMA mYouth website GSMA and Child Helpline International: Internet Safety Resources — Sheila Donovan, Executive Director, Child Helpline International Global Kids Online: Research Results 166 Consumer Protection Children and Mobile Technology Mobile Policy Handbook 167

Deeper Dive Deeper Dive

Collaboration in Action The 30th anniversary of the UN Convention on the Rights of the Child

Growing numbers of young people are leading digital lives, and when they encounter The year 1989 was significant, as it marked both the agreement of the UN Convention on problems online many will reach out to child helplines for support and guidance. the Rights of the Child (UNCRC) and the birth of the World Wide Web.

And while many child helplines have already built up experience in this area, globally The UNCRC sets out a number of child-specific needs and rights that children, there is still a number of them who are in the early stages of development and would everywhere, are entitled to in order to survive and thrive, to learn and grow, and to reach benefit from guidance on these issues. GSMA and Child Helpline International wanted to their full potential. It outlines children’s rights to education, information, privacy and the extend their support to child helplines that fall into the latter category by harnessing the highest attainable standard of health. It also outlines their rights to leisure and play, to be experience of experts in this field from a range of stakeholder groups. heard, as well as to protection from violence, sexual exploitation and abuse.

In May 2016, GSMA and Child Helpline International co-hosted an intensive one-day The provisions in the UNCRC were set out and agreed without knowledge of the workshop. This session brought together expertise from the child helpline community, technology revolution that would follow shortly after, and yet — as the UNCRC reaches its the Child Helpline International youth panel, mobile operators and other industry 30th anniversary — they remain as important and relevant in today’s connected world as players, NGOs, child online safety experts — including a specialist child and adolescent they were for children at the time of its creation. psychiatrist — and law enforcement. The GSMA supports its members as they seek to enable the safe and positive realisation The workshop was used to kick-start the process for creating a series of high-level guides of the many opportunities afforded through connectivity, whilst taking steps to mitigate for child helpline counsellors and volunteers on nine of the more common or challenging potential risks. 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 As UNICEF’s State of the World’s Children 2017 report notes, the internet “...reflects and speech, grooming, illegal content, inappropriate content, privacy, sexual extortion, sexual amplifies the best and worst of human nature. It is a tool that will always be used for harassment and unsolicited contact. good and for ill. Our job is to mitigate the harms and expand the opportunities digital technology makes possible.” 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. 168 Consumer Protection Mobile Policy Handbook 169

Cross-Border Flows of Data

Background However, their successful adoption is Industry Position This encourages more effective undermined by the implementation by protection for individuals than formalistic The global digital economy depends on governments of ‘data localisation’ (also Cross-border flows of data play a key administrative requirements, while helping cross-border flows of data to deliver crucial known as ‘data sovereignty’) rules that role in innovation, competition and to realise potential social and economic social and economic benefits to individuals, impose local storage requirements or use economic and social development. benefits. Such frameworks should be made businesses and governments. of local technology.2 Such localisation Governments can facilitate these data interoperable across countries and regions requirements can be found in a variety flows in a way that is consistent with to the greatest extent possible. This would When data is allowed to flow freely across of sector- and subject-specific rules consumer privacy and local laws by stimulate convergence between different national borders, it enables organisations to created for financial service providers, the supporting industry best practices approaches to privacy, while promoting operate, innovate and to access solutions public sector or to maintain professional and frameworks for the movement of appropriate standards of data protection, and support anywhere in the world. confidentiality. They are sometimes data and by working to make these allowing accountable companies to Enabling cross-border flows of data can imposed by countries in the belief that frameworks interoperable. build scalable and consistent data help organisations adopt data-driven digital supervisory authorities can more easily privacy programmes. transformation strategies that ultimately scrutinise data that is stored locally.3 Governments can also ensure that these benefit individuals and society. Policies frameworks have strong accountability Requirements for companies to use

that inhibit the free flow of data through 1 International Chamber of Commerce Report: Trade in the mechanisms, and that the authorities can local data storage or technology create unjustified restrictions or local data storage Digital Economy, 2016; ECIPE Report: The Cost of Data play a role in overseeing/monitoring their unnecessary duplication and cost for requirements can have an adverse impact Localisation, 2014. implementation. Governments should companies and there is little evidence that on consumers, businesses and the economy 2 Emory Law Journal: Anupam Chander and Uyen Le, Data only impose measures that restrict cross- such policies produce tangible benefits Nationalism, 2015; Hague Institute for Global Justice: 1 in general. Jonah Force Hill, The Growth of Data Localization Post- border data flows if they are absolutely for local economies or improved privacy Snowden, 2014. necessary to achieve a legitimate public protections for individuals. Cross-border flows of personal data 3 European Commission Report: Building a European Data policy objective. The application of these are currently regulated by a number Economy Communication, 2017. measures should be proportionate and not To the extent that governments need of international, regional and national arbitrary or discriminatory against foreign to scrutinise data for official purposes, instruments and laws intended to protect Debate suppliers or services. MNOs would encourage them to achieve individuals’ privacy, the local economy or this through existing lawful means and national security. How can industry, legislators, Mobile Network Operators (MNOs) appropriate intergovernmental mechanisms regulators and civil society engage welcome frameworks such as the APEC that do not restrict the flow of data. While many of these instruments and laws effectively to develop policy that Cross-Border Privacy Rules or the EU’s adopt common privacy principles, they supports cross-border flows Binding Corporate Rules, which allow The GSMA and its members believe that do not create an interoperable regulatory of data? accountable organisations to transfer cross-border data flows can be managed framework that reflects the realities, data globally, provided they meet certain in ways that safeguard the personal data challenges and potential of a globally criteria. Such mechanisms are based and privacy of individuals and remain connected world. Emerging frameworks How can data protection on commonly recognised data privacy committed to working with stakeholders such as the Asia-Pacific Economic Co- safeguards adequately address principles and require organisations to to ensure that restrictions are only operation (APEC) Cross-Border Privacy the legitimate concerns of adopt a comprehensive approach towards implemented if they are necessary to Rules and the EU’s Binding Corporate governments that seek to impose data privacy. achieve a legitimate public policy objective. Rules allow organisations to transfer localisation requirements? personal data generally under certain conditions. These frameworks contain Resources: accountability mechanisms and are United Nations Conference on Trade and Development (UNCTAD) Report: Data Protection Regulations based on internationally accepted data and International Data Flows, 2016 protection principles. 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 170 Consumer Protection Cross-Border Flows of Data Mobile Policy Handbook 171

Deeper Dive

National Data Privacy Regimes Should be Based on Shared, Core Principles Localisation Rules Risk Undermining the Protection of Personal Data and Provide Flexibility in Implementation There are several reasons countries give to justify the imposition of data localisation rules. The challenge when regulating for data privacy, including cross-border flows of data, is to These include concerns about foreign surveillance and national security and a desire to put in place measures that consistently provide consumers with confidence in existing and stimulate a national digital economy through in-country data analysis. new services, without limiting service adoption or imposing significant additional costs on service providers. The range of localisation restrictions can include subjecting the data flows to certain restrictions to benefit citizens’ privacy and requiring organisations to keep data in-country, To achieve this, it is crucial for privacy regulation to be based on shared core principles but allowing the data to flow thereafter. It may also include forcing the data to be kept which, according to United Nations Conference on Trade and Development (UNCTAD) sit in-country altogether or imposing requirements that have the indirect effect of keeping the “at the heart of most national [privacy] laws and international regimes” as well as industry data in-country, such as mandating the use of local infrastructure. 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 However, restrictions do not necessarily lead to better protection of personal data. For from wider choice, improved quality and lower prices of services. 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 that The 2009 Madrid Resolution on International Standards for the Protection of Personal Data ultimately has a negative impact on the secure management of personal data. and Privacy, for example, encourages consistent international protection of personal data and embraces privacy approaches from all five continents. As well as being designed “to The risks identified by governments can be mitigated by various solutions and principles ease the international flow of personal data, essential in a globalized world”, the resolution without restricting data flows. For example, over the last five years internet platform advocates six privacy principles to be adopted by policymakers: companies and cloud computing providers have established regional hubs. These allow governments that are concerned about the surveillance activities of foreign countries to avoid data being held in particular jurisdictions. In addition, encryption techniques allow Lawful and fair Purpose Proportionate data to be protected from access and stored securely abroad. Requiring localisation on the Personal data must be Processing should be limited Processing should be grounds of a perceived economic benefit are equally flawed. Restricting data processing lawfully and fairly processed to specified purposes proportionate and not activities to a national, rather than global, scale is likely to lead to significantly higher costs excessive of operation per customer served while also stopping citizens from accessing innovative digital services that emerge on the global stage.

Quality Openness Accountable In order to address legitimate concerns about privacy, governments have adopted a patchwork of international, regional and national rules. In addition to APEC’s Privacy Data held should be accurate The processor should The processor should be open regarding their be accountable for their Framework and the EU’s General Data Protection Regulation (GDPR), regional frameworks activities activities have emerged in ASEAN, Latin America and Africa. These frameworks have the commendable aim of aligning economies within regions around a common understanding of data privacy. However, in order to reflect the realities of a globally connected world, they need to be interoperable across regions to the greatest extent possible. This would allow Similar principles are reflected repeatedly in laws and policy initiatives around the world companies to build scalable and accountable data protection and privacy platforms. 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 Flows of data across borders are important for societal and economic reasons. Without Principles and the APEC Privacy Framework. The mobile industry has also adopted the them both economic growth and the potential benefits to society of digital transformation GSMA Mobile Privacy Principles to give consumers confidence that their personal data is can be hampered. It is therefore incumbent on governments, regulators, industry and civil being properly protected, irrespective of service, device or country. society groups to reject localisation measures and instead find ways to enable the flow of data while protecting individuals. 172 Consumer Protection Mobile Policy Handbook 173

Electromagnetic Fields and Health

Background Health authorities have advised that Industry Position Parents should have access to accurate given scientific uncertainty and the lack information so they can decide when Research into the safety of radio signals, of support from cancer trend data, this National authorities should implement and if their children should use mobile which has been conducted for more than 50 classification should be understood as EMF-related policies based on phones. The current WHO position years, has led to the establishment of human meaning that more research is needed. established science, in line with is that international safety guidelines exposure standards that provide protection They have also reminded mobile phone international recommendations and protect everyone in the population with against all established health risks. users that they can take practical measures technical standards. a large safety factor, and that there is no to reduce exposure, such as using a hands- scientific basis to restrict children’s use of The World Health Organization (WHO) free kit or text messaging. Large differences between national limits and phones or the locations of base stations. and the International Telecommunication international guidelines can cause confusion We encourage governments to provide Union (ITU) recommend that governments New applications, such as 5G, wireless and increase public anxiety. Consistency is information and voluntary practical adopt the radio-frequency exposure limits IoT and wearable devices, will be designed vital, and governments should: guidance to consumers and parents, based developed by the International Commission to comply with existing exposure limits. on the position of the WHO. on Non-Ionizing Radiation Protection The international exposure guidelines are • Base EMF-related policy on reliable (ICNIRP). These were reviewed and not technology specific and are information sources, including the WHO, The mobile industry works with updated in 2018. periodically reviewed. trusted international health authorities national and local governments to help and expert scientists. address public concern about mobile The WHO set up the International EMF communications. Adoption of evidence- Project in 1996 to assess the health and Debate • Set a national policy covering the siting based national policies concerning environmental effects of exposure to of masts, balancing effective network roll exposure limits and antenna siting, public electromagnetic fields (EMF) from Does using a mobile phone regularly, out with consideration of public concerns. consultations and information can all sources. or living near a base station, have reassure citizens. any health implications? • Accept mobile operators’ declarations of The strong consensus of expert groups and compliance with international or national Ongoing, high-quality research is public health agencies, such as the WHO, is radio frequency levels using technical necessary to support health-risk that no health risks have been established Are there benefits in adopting standards from organisations such assessments, develop safety standards from exposure to the low-level radio signals EMF limits for mobile networks as the International Electrotechnical and provide information to inform policy used for mobile communications. or devices? Commission (IEC) and ITU. development. Studies should follow good laboratory practice for EMF research and However, research has suggested a possible • Actively communicate with the public, be governed by contracts that encourage increased risk of brain tumours among Are new methods needed to assess based on the positions of the WHO, open publication of findings in peer- long-term users of mobile phones. As a compliance of advanced antennae to address concerns. reviewed scientific literature. result, in May 2011, the International Agency planned for 5G deployment? for Research on Cancer classified radio signals as a possible human carcinogen. Resources: Should there be particular WHO International EMF Project website restrictions to protect children, International Agency for Research on Cancer Monograph on Radiofrequency Fields website pregnant women or other GSMA Report: Mobile Communications and Health potentially vulnerable groups? 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 Report: 5G, the Internet of Things (IoT) and Wearable Devices GSMA Mobile and Health — Independent Expert Review website Mobile & Wireless Forum SAR Tick Programme website ITU EMF Guide website 174 Consumer Protection Electromagnetic Fields and Health Mobile Policy Handbook 175

Deeper Dive Deeper Dive

Health Authorities on the Science Advanced Antenna Technologies

Many of the antennae used for 5G will look similar to those in use today. Advanced A large number of studies have been performed over the last two decades to antenna technologies, such as beam-forming, require the use of arrays of antennae to assess whether mobile phones pose a potential health risk. To date, no adverse optimise the delivery of the wanted radio signal to connected mobile devices. 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

Conventional antennaBeamforming antenna

Whether mobile phone use causes brain tumours or not was mainly addressed using time trends studies in the last two years. The results were not entirely As shown above, a conventional base station antenna transmits a radio signal to a wide consistent but mainly point towards a lack of association. Whereas these time area regardless of how many users are connected. Advanced beam forming antennae series studies do not suffer from recall and selection bias, which is of concern transmit radio signals only to connected users, reducing unwanted exposure. for case-control studies, they are vulnerable to secular time trends. Changes in coding praxis or improved diagnostic tools and thus better detection rate may Beamforming involves combining the signal from multiple antennae to improve produce an apparent increase or a decrease in the incidence of brain tumours performance. However, operation at higher frequencies means that while some could or specific subtypes. The few indications of changing incidence are thus rather be larger, the size of many of the antennae is expected to be similar to that of attributed to such methodological limitations than actual changes in risk. existing installations. — Swedish Radiation Safety Authority, 2018 176 Consumer Protection Electromagnetic Fields and Health Mobile Policy Handbook 177

Deeper Dive

A Global Look at Mobile Network Exposure Limits

The World Health Organization (WHO) endorses the guidelines of the International In some cases (e.g., China and Russia) historical limits have not been updated to reflect Commission for Non-Ionizing Radiation Protection (ICNIRP) and encourages countries to more recent scientific knowledge. In other cases, RF limits applicable to mobile networks adopt them. While many countries have adopted this recommendation, some have chosen may be the result of arbitrary reductions, as a political response to public concern. to adopt other limits or additional measures regarding the siting of base stations. Excluding countries or territories with unknown limits, 126 apply ICNIRP, 11 follow the FCC This map shows the approach to radio frequency (RF) exposure limits countries have limits from 1996, and 36 have other limits. Although the map uses only one colour for the adopted for mobile communication antenna sites. Much of the world follows the ICNIRP ‘other’ category, there are many differences between these countries in the limit values and 1998 guidelines or those of the US Federal Communications Commission. their application.

E ective RF limit ICNIRP 1998

FFC 1996

Other

Unknown 178 Consumer Protection Mobile Policy Handbook 179

eWaste

Background finding it difficult to manage the e-waste Industry Position • Environmental and telecommunications generated through their operations. In authorities should work together Electronic waste — also known as some cases, they have even had to take on The effective management of WEEE at to design, promote and implement e-waste or waste electrical and electronic 100 per cent of the operational and financial a country and company level must be policies, standards, laws, regulations equipment (WEEE) — is a type of waste responsibility for the management of their based on specific regulatory frameworks and programmes for responsible generated when devices related to customers’ e-waste, whereas in most other that recognise the environmental risks WEEE management. the Information and Communications regions the responsibility is shared among that e-waste presents and also the Technology (ICT) industry reach the end of a range of parties including equipment potential for efficient resource recovery. • Guidelines that recognise the principle their life. Parts and materials that make up manufacturers, importers and distributors. This is to ensure there is no ambiguity of EPR should be created by relevant e-waste usually contain precious or high- among the various parties who are environmental authorities and value metals that can be recycled at the end In addition, operators have faced other responsible for e-waste management as developed into legal frameworks of a device’s useful life. However, they can challenges such as a dearth of qualified to how they must act in order to conform for e-waste management. also contain hazardous materials that must e-waste managers in some countries, to the agreed guidelines. be treated responsibly and in compliance the high costs of e-waste transport • WEEE management programmes with environmental legislation. Some and storage, and restrictions (from the Mobile operators have long recognised the should include measures to promote used electronic equipment may be Basel Convention) on the export of importance of WEEE management. recycling in order to extend the lifespan suitable for re-use, perhaps after repair equipment to countries where it could of devices and material recovery. These and refurbishment. be treated appropriately. This is why, in regions such as Latin need to explain the importance of these America, they have actively sought to processes for the re-use of materials, As part of the ICT sector, mobile operators draw attention to loopholes in the legal so they can in turn increase the economic generate e-waste during periods of Debate system and communicate the challenges value of devices collected for re-use technological renewal and also through the they have faced during the development or recycling. normal supply of products (such as routers, How should the responsibility for of their WEEE management programmes. mobile phones and tablets) to customers. processing e-waste be shared out Moreover, they continue to look for ways • Governments, manufacturers, importers, among a range of industry parties, to collaborate with the environmental distributors and WEEE management Mobile operators around the world including operators, equipment authorities in order to define effective legal companies should work together to have developed WEEE management manufacturers, importers frameworks that promote environmentally create e-waste awareness campaigns programmes both as compliance measures and distributors? responsible WEEE management. aimed at the general public. These to conform to current legislation, and also in campaigns will help create a culture of their desire to meet their own sustainability With this in mind, they have come up with WEEE recycling, foster buy-in across and corporate social responsibility goals. How is it possible to distinguish a number of proposals for regions where all sectors of society and drive improved between e-waste and used there is currently a lack of robust legal results when all the parties involved However, in some regions, such as Latin electronic equipment destined frameworks in place: begin implementing WEEE America, there are limited legal frameworks for re-use? management campaigns. specifically covering e-waste management. Unfortunately, this also means there is a lack of clarity around the concept of extended producer responsibility (EPR). Resources: Usually, EPR rules firmly establish the GSMA & United Nations University Report: eWaste in Latin America — Statistical Analysis and Policy Recommendations roles and responsibilities of producers, GSMA, IDB & South Pole Report: Technology for Climate Action in Latin America importers and distributors for equipment Step Initiative website in the e-waste chain. The absence of clear United Nations University, International Telecommunication Union & International Solid Waste Association rules means operators in Latin America are Report: The Global E-waste Monitor 2017 Quantities, Flows, and Resources 180 Consumer Protection Mobile Policy Handbook 181

Illegal Content

Background Mobile operators are typically alerted Industry Position The mobile industry condemns the misuse to illegal content by national hotline of its services for sharing child sexual Today, mobile networks not only offer organisations or law-enforcement agencies. The mobile industry is committed to abuse content. The GSMA’s Mobile Alliance traditional voice and messaging services, When content is reported, operators follow working with law enforcement agencies Against Child Sexual Abuse Content but also provide access to virtually all procedures according to the relevant and appropriate authorities, and to provides leadership in this area and works forms of digital content via the internet. data protection, privacy and disclosure having robust processes in place that proactively to combat the misuse of mobile In this respect, mobile operators offer legislation. In the case of child sexual abuse enable the swift removal or disabling networks and services by criminals the same service as any other internet content, mobile operators use terms and of confirmed instances of illegal content seeking to access or share child sexual service provider (ISP). This means mobile conditions, notice and takedown processes hosted on their services. abuse content. networks are inevitably used, by some, to and reporting mechanisms to keep their access illegal content, ranging from pirated services free of this material. ISPs, including mobile operators, are not Regarding copyright infringement and material that infringes intellectual property qualified to decide what is and is not illegal piracy, the mobile industry recognises rights (IPR) to racist content or child sexual content, the scope of which is wide and the importance of proper compensation abuse material (child pornography). Debate varies between countries. As such, they for rights holders and prevention of should not be expected to monitor and unauthorised distribution. Laws regarding illegal content vary Should all types of illegal content judge third-party material, whether it is considerably. Some content, such as child — from IPR infringements to child hosted on, or accessed through, their sexual abuse material, is considered illegal sexual abuse content — be subject own network. around the world, while other content, such to the same reporting and as dialogue that calls for political reform, removal processes? National governments decide what is illegal in some countries while being constitutes illegal content in their country; protected by ‘freedom of speech’ rights they should be open and transparent about in others. What responsibilities should fall to which content is illegal before handing governments, law enforcement or enforcement responsibility to hotlines, law- Communications service providers, industry in the policing and removal enforcement agencies and industry. including mobile network operators of illegal content? and ISPs, are not usually liable for illegal content on their networks and services, provided they are not aware of its presence Should access to illegal content and follow certain rules (e.g., ‘notice and on the internet be blocked by ISPs takedown’ processes to remove or disable and mobile operators? access to the illegal content as soon as they are notified of its existence by the appropriate legal authority).

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 GSMA and Child Helpline International: Internet Safety Guides (see, in particular, Grooming, Illegal Content, Sexual Extortion of Children) WePROTECT Global Alliance Model National Response 182 Consumer Protection Illegal Content Mobile Policy Handbook 183

Deeper Dive

Mobile Alliance Against Child Sexual Abuse Content Mobile Alliance Procedures To Stop 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 A report of suspected illegal child sexual abuse content is made by an internet user, child sexual abuse content. directly or through their internet service provider (ISP) or mobile operator

Alliance members have made the commitment to:

National hotline or law enforcement agency (LEA) assesses the content • Implement technical mechanisms to restrict access to websites or 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 IllegalNot illegal 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. Traced to host country No further action Through a combination of technical measures, cooperation and information sharing, the Mobile Alliance is working to stem, and ultimately reverse, the growth of online child sexual abuse content around the world. If the content is hosted in a The Mobile Alliance also contributes to wider efforts to eradicate online child sexual di erent country, the report abuse content by publishing guidance and toolkits for the benefit of the whole mobile If the content is hosted is passed on to INHOPE or in the same country the relevant LEA industry. For example, it has produced a guide to establishing and managing a hotline as the hotline or LEA, in collaboration with INHOPE, the umbrella organisation for hotlines, and a guide to notice and take implementing notice and take-down processes with UNICEF. down processes are instigated and the Some countries also add the content is removed URL to a ‘block list’ that allows In the 10 years that have passed since the founding of the Mobile Alliance, changes to ISPs and mobile operators to the digital ecosystem — including the increase in online interactivity and user-generated prevent access content — have altered the nature of online child sexual exploitation and abuse. For example, hotlines are increasingly seeing self-generated content (also known as ‘sexting’) being shared online. Child helplines are receiving calls from children related to ‘sexual extortion’. This is where a young person is blackmailed by an offender using self-produced sexual images or videos of the young person to make further sexual or financial demands. GSMA and the Mobile Alliance members continue to work with their external partners to monitor emerging issues and seek additional ways to contribute to the wider efforts to address them. For example, they are collaboratively developing guidance for child helpline counsellors on internet safety issues (including illegal content and sexual extortion) and members are running internet safety consumer education and awareness campaigns on an ongoing basis. 184 Consumer Protection Mobile Policy Handbook 185

Internet Governance

Background Debate Industry Position Some questions warrant a different approach at the local, national, regional Internet governance involves a wide Who ‘owns’ the internet? The multi-stakeholder model for internet or global level. An effective and efficient array of activities related to the policy governance and decision making should multi-stakeholder model ensures that the and procedures of the management be preserved and allowed to evolve. stakeholders, within their respective roles, of the internet. It encompasses legal Should certain countries or can participate in the consensus-building and regulatory issues such as privacy, organisations be allowed to have Internet governance should not be process for any specific issue. cybercrime, intellectual property greater decision-making powers managed through a single institution rights and spam. It is also, for example, than others? or mechanism, but be able to address Technical aspects related to the concerned with technical issues related a wide range of issues and challenges management and development of internet to network management and standards relevant to different stakeholders more networks and architecture should be and economic issues such as taxation and How should a multi-stakeholder flexibly than traditional government and addressed through standards bodies, the internet interconnection arrangements. model be applied to internet intergovernmental mechanisms. Internet Engineering Task Force (IETF), governance? the Internet Architecture Board (IAB) and Because mobile industry growth is tied to The internet should be secure, stable, other forums. the evolution of internet-enabled services trustworthy and interoperable, and no and devices, decisions about the use, single institution or organisation can or Economic and transactional issues such management and regulation of the internet should manage it. as internet interconnection charges are will affect mobile service providers and best left to commercial negotiation, other industry players and their customers. Collaborative, diverse and inclusive models consistent with commercial law and of internet governance decision-making regulatory regimes. Internet governance requires input are requisite to participation by the from diverse stakeholders, relating to appropriate stakeholders. their interests and expertise in technical engineering, resource management, The decentralised development of the standards and policy issues, among others. internet should continue, without being Interested and relevant stakeholders will controlled by any particular business vary from issue to issue. model or regulatory approach.

Only a concerted joint global effort by governments, businesses, the technical community and civil society will produce a governance architecture that is as generic, scalable and transnational as the internet itself. No single actor Resources: or group of actors can solve this alone. The Internet Governance Forum website — Vint Cerf, Chief Internet Evangelist at Google and Co-inventor of the Internet Protocol suite, World Summit on the Information Society WSIS+10 website February 2018 The Internet Society Internet Governance website UNESCO Internet Governance website 186 Consumer Protection Mobile Policy Handbook 187

Mandated Government Access

Background In response to public debate concerning Industry Position Given the expanding range of the extent of government access to communications services, the legal Mobile network operators are often subject mobile subscriber data, a number of major Governments should ensure they have framework should be technology neutral. to a range of laws and/or licence conditions telecommunications providers (such as AT&T, a proportionate legal framework that that require them to support law enforcement Deutsche Telekom, Orange, Rogers, SaskTel, clearly specifies the surveillance powers Governments should provide appropriate and security activities in countries where Sprint, T-Mobile, TekSavvy, TeliaSonera, available to national law enforcement limitations of liability or indemnify they operate. These requirements vary from Telstra, Telus, Verizon, Vodafone and Wind and security agencies. telecommunications providers against legal country to country and have an impact on the Mobile) as well as internet companies (such claims brought in respect of compliance privacy of mobile customers. as Apple, Amazon, Dropbox, Facebook, Any interference with the right to privacy with requests and obligations for the Google, LinkedIn, Microsoft, Pinterest, of telecommunications customers must be retention, disclosure and interception of Where they exist, such laws and licence Snapchat, Tumblr, Twitter and Yahoo!) publish in accordance with the law. communications and data. conditions typically require operators to retain ‘transparency reports’, which provide statistics data about their customers’ mobile service relating to government requests for disclosure The retention and disclosure of data and The costs of complying with all use and disclose it, including customers’ of such data. the interception of communications for laws covering the interception of personal data, to law enforcement and law enforcement or security purposes communications and the retention and national security agencies on lawful demand. should take place only under a clear disclosure of data should be borne by They may also require operators to have the Debate legal framework and using the proper governments. Such costs and the basis ability to intercept customer communications process and authorisation specified by for their calculation should be agreed following lawful demand. What is the correct legal framework that framework. in advance. to achieve a balance between a Such laws provide a framework for the government’s obligation to ensure There should be a legal process available to The GSMA and its members are supportive operation of law enforcement and security its law-enforcement and security telecommunications providers to challenge of initiatives that seek to increase service surveillance and guide mobile agencies can protect citizens, requests which they believe to be outside government transparency and the operators in their mandatory liaison with and the rights of those citizens to the scope of the relevant laws. publication by government of statistics these services. privacy? related to requests for access to The framework should be transparent, customer data. However, in some countries, there is a lack of proportionate, justified and compatible clarity in the legal framework to regulate the Should all providers of communication with human rights principles, including disclosure of data or lawful interception of services be subject to the same obligations under applicable international customer communications. interception, retention and human rights conventions, such as the disclosure laws on a technology International Convention on Civil and This creates challenges for industry in neutral basis? Political Rights. protecting the privacy of its customers’ information and their communications. Would further transparency Legislation often lags behind technological about the number and nature of developments. For example, it may be the requests that governments the case that obligations apply only to make assist the debate, improve established telecommunications operators government accountability and Resources: but not to more recent market entrants, bolster consumer confidence? United Nations General Assembly Report: Guiding Principles on Business and Human Rights — such as those providing internet-based Implementing the United Nations “Protect, Respect and Remedy” Framework Sixth Form Law — Malone v. The United Kingdom website services, including Voice over IP (VoIP), High Court Judgement: Data Retention and Investigatory Powers Act 2014 (“DRIPA”) video or instant messaging. UK Investigatory Powers Review Report: A Question of Trust Office of the Privacy Commissioner of Canada website 188 Consumer Protection Mandated Government Access Mobile Policy Handbook 189

Deeper Dive

Trending Towards Transparency companies committed to the GNI Principles on Freedom of Expression and Privacy, which provide direction and guidance to the ICT industry and its stakeholders in protecting and There is an important global public debate about the scope, necessity and legitimacy advancing the enjoyment of these human rights globally. of the legal powers that government authorities use to access the communications of private individuals. ICT firms are increasingly reporting the demands of governments for Civil society organisations have contributed to the advancement of these issues by trying communications data where it is legal to do so. These reports have revealed the degree to to provide trustworthy measures of transparency. Ranking Digital Rights (RDR) publishes which government intelligence and law enforcement agencies rely on such information. an annual report on telecoms and internet companies disclosed commitments, policies and practices that affect users’ privacy and freedom of expression. The RDR calls for Many of the largest communications and internet content providers (including AT&T, governments to allow encryption and publish their own transparency reports, to make Deutsche Telekom, Telenor, Verizon, Vodafone, Apple, Dropbox, Facebook, Google, it clear what information they demanded from companies and why. LinkedIn, Microsoft, Twitter and Yahoo!) publish periodic transparency reports. The debate can be heated on both sides — those who argue that law enforcement Typically, these reports include how many of these requests resulted in the disclosure of agencies require broad access in order to fight crime versus those who challenge the customer information. They reveal the frequency of such requests and also some detail government’s level of inquiry into private lives and strive to maintain citizens’ rights to about the kind of information accessed. This can include customer account information, privacy in the digital age. GSMA members maintain that transparency reporting brings the interception of communications and metadata, which can reveal an individual’s valid information to the public and policymakers, raising key questions about the balance location, interests or relationships. Mobile operators often have no option but to comply between government access and privacy. with such requests, but they are increasingly pressing for greater transparency about the nature and scale of government access. Government Access – Encouraging Transparency Questions have also arisen as to the role that telecommunications network and service providers play in relation to such access. For example, misunderstandings can arise about Governments sometimes request access to the level to which mobile network operators have the technical capacity to intercept mobile network operators’ subscriber data communications. Intercepting standard phone calls or SMS messages to and from specific users is technically possible and lawful interception requirements and capabilities have been described in the global mobile standards for decades.

However, communications between users using an internet-based platform, known as an over-the-top (OTT) service, is generally beyond the reach of mobile network operators. OTT messaging applications are usually encrypted, with messages not stored by the mobile network operators nor decryption keys made available to them. So operators can neither access or provide messages’ content, even on receipt of lawful requests. Both internet companies and 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.

To further support their commitment to transparency, some operators have joined forces with internet companies and other stakeholders in initiatives such as the Global Network Initiative (GNI). The GNI brings together telecommunications operators, major internet To provide more transparency to users, mobile These requests should be based on companies, leading academics, civil society organisations, and investors to advance network operators, as well as some internet a proportionate legal framework that clearly privacy and freedom of expression in the information and communications technology companies, publish ‘transparency reports’ speciﬁes the surveillance powers available providing statistics relating to government to national law enforcement and (ICT) sector. In March 2017, seven operators — Millicom, Nokia, Orange, Telefónica, Telenor requests for disclosure of such data security agencies Group, Telia Company and Vodafone — joined an expanded GNI after having previously promoted transparency through the Telecommunications Industry Dialogue. These 190 Consumer Protection Mobile Policy Handbook 191

Mandated Service Restriction Orders

Background MNOs also suffer. Not only do they sustain Industry Position For example, rather than block an entire financial losses due to the suspension network or social media platform, it From time to time, mobile network of services, as well as damage to their The GSMA discourages the use of SROs. may be possible for the SRO to target operators (MNOs) receive orders from reputation, but their local staff can also face Governments should only resort to particular content or users. In any event, government authorities to restrict services pressure from authorities and possibly even SROs in exceptional and pre-defined the SRO should always specify an end date. on their networks. These service restriction retaliation from the public. circumstances, and only if absolutely Independent oversight mechanisms should orders (SROs) require operators to shut necessary and proportionate to be established to ensure these principles down or restrict access to their mobile achieve a specified and legitimate aim are observed. network, a network service or an over-the- Debate that is consistent with internationally top (OTT) service. Orders include blocking recognised human rights and Operators can play an important role by particular apps or content, restricting data What factors and alternatives should relevant laws. raising awareness among government bandwidth and degrading the quality governments consider before officials of the potential impact of SROs. of SMS or voice services. In some cases, planning an SRO? In order to aid transparency, governments They can also be prepared to work swiftly operators would risk criminal sanctions should only issue SROs to operators in and efficiently to determine the legitimacy or the loss of their licence if they were to writing, citing the legal basis and with a of the SRO once it has been received. This disclose that they had been issued with What tools and methods can be clear audit trail to the person authorising will help establish whether it has been an SRO. used to avoid the need for an SRO the order. They should inform citizens that approved by a judicial authority, whether or to avoid negative impacts if an the service restriction has been ordered by it is valid and binding and whether there SROs can have a number of serious SRO is the only option? the government and has been approved by is opportunity for appeal, working with consequences. For example, national a judicial or other authority in accordance the government to limit the scope and security can be undermined if the powers with administrative procedures laid down impact of the order. Procedures can include are misused and public safety can be in law. They should allow operators to guidance on how local personnel are to endangered if emergency services and investigate the impacts on their networks deal with SROs and the use of standardised citizens are not able to communicate and customers and to communicate freely forms to quickly assess and escalate SROs with one another. Freedom of expression, with their customers about the order. If it to senior company representatives. freedom of assembly, freedom to conduct would undermine national security to do so business and other human rights can also at the time when the service is restricted, All decisions should first and foremost be be impacted. citizens should be informed as soon as made with the safety and security of the possible after the event. operators’ customers, networks and staff Furthermore, individuals and businesses in mind, and with the aim of being able to who are not the target of the SRO may no Governments should seek to avoid or restore services as quickly as possible. longer be able to pay friends, suppliers or mitigate the potentially harmful effects salaries. This can have a knock-on effect of SROs by minimising the number of on credit and investment plans, ultimately demands, the geographic scope, the damaging the country’s reputation for number of potentially affected individuals managing the economy and foreign and businesses, the functional scope and investment, and discouraging donor the duration of the restriction. countries from providing funds or other resources.

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 192 Consumer Protection Mobile Policy Handbook 193

Mandatory Registration of Prepaid SIMs

Background consumers’ ability to meet them in a proportionate and relevant to the specific • Set realistic timescales for designing, specific market, mandating this policy may market, including the level of official ID testing and implementing In a number of countries, customers of lead to implementation challenges and penetration in that market and the timing of registration processes. prepaid or pay-as-you-go services can unforeseen consequences. For example, it any national identity roll-out plans. anonymously activate their subscriber could unintentionally exclude vulnerable • Provide certainty and clarity on identity module (SIM) card by simply and socially disadvantaged consumers If these conditions are met, the SIM registration requirements before purchasing credit, as formal user or refugees who lack the required registration exercise is more likely to any implementation. registration is not required. Around 150 identity documents. It might also lead be effective and lead to more accurate governments around the world1 have to the emergence of a black market for customer databases. Furthermore, a robust • Allow and/or encourage the mandated prepaid SIM registration fraudulently registered or stolen SIM cards, customer verification and authentication storage of electronic records and citing a perceived, but unproven, link based on the desire by some mobile users, system can enable mobile operators to design registration processes that are between the introduction of such policies including criminals, to remain anonymous. facilitate the creation of digital identity administratively ‘light’. and the reduction of criminal and anti- solutions, empowering customers to access social behaviour. Mandated prepaid SIM a variety of mobile and non-mobile services. • Allow and/or encourage the SIM- registration is most prevalent in Africa, Debate registered customer to access other where 90 per cent of UN-recognised states We urge governments who are considering value-added mobile and digital services. have such laws. To what extent do the benefits of the introduction or revision of mandatory mandatory prepaid SIM registration SIM-registration to take the following steps • Support mobile operators in the Some governments — including the outweigh the costs and risks? prior to finalising their plans: implementation of SIM-registration Czech Republic, the United Kingdom programmes by contributing to joint and the United States — have decided • Consult, collaborate and communicate communication activities and to their against mandating registration of prepaid What factors should governments with mobile operators before, during and operational costs. SIM users, concluding that the potential consider before mandating such after the implementation exercise.

loopholes and implementation challenges a policy? 1 GSMA Report: Access to Mobile and Proof of Identity. outweigh the merits. • Balance national security demands against the protection of citizens’ rights, SIM registration can, however, allow particularly where governments mandate many consumers to access value-added Industry Position SIM registration for security reasons. mobile and digital services that would not otherwise be available to them as While registration of prepaid SIM card unregistered users, including identity-linked users can deliver valuable benefits services such as mobile money, e-health to citizens, governments should not and e-government services. mandate it.

For a SIM registration policy to lead to To date, there has been no empirical positive outcomes for consumers, it evidence that mandatory SIM registration must be implemented in a pragmatic directly leads to a reduction in crime. Where way that takes into account local market a decision to mandate the registration circumstances, such as the ability of of prepaid SIM users has been made, we mobile operators to verify customers’ recommend that governments take into Resources: GSMA website: Mandatory Registration of Pre-paid SIMs identity documents. If the registration account global best practices and allow GSMA Report: Access to Mobile and Proof of Identity requirements are disproportionate to registration mechanisms that are flexible, GSMA Policy Note: Enabling Access to Mobile Services for the Forcibly Displaced GSMA Report: Mandatory Registration of Prepaid SIM cards — Addressing Challenges Through Best Practice GSMA Report: Regulatory and Policy Trends Impacting Digital Identity and the Role of Mobile 194 Consumer Protection Mobile Policy Handbook 195

Mobile Devices: Counterfeit

Background in their products and this makes it more GSMA has made its IMEI database available legitimate TAC/IMEI holders. If national difficult to differentiate between authentic to the World Customs Organization to import verification systems and national A counterfeit mobile device explicitly and counterfeit products. establish a global security gateway where device homologation systems exist these infringes the trademark or design of an customs officers can verify the authenticity should also be linked to the national white original or authentic ‘branded' product, of mobile device identities online. list. Some implementations propose even where there are slight variations to Debate National customs agencies are advised that customers register their details the established brand name. to systematically make use of this facility and devices centrally. GSMA is opposed How can governments and other as part of a rigorous set of measures to to central customer registrations since Due to their illicit nature, these mobile stakeholders best address the issue monitor the importation of mobile devices. they are unnecessary — the subscriber devices are typically shipped and sold of counterfeit mobile devices? The database is made available to national identities associated with each device can on black markets globally, by organised customs agencies directly. be established by the network operators criminal networks. As a result, there is without the need for consumer action. limited awareness among consumers and How can anti-counterfeit measures The GSMA encourages operators to deploy governments about the true scale and be framed to also consider systems like Equipment Identity Registers Where national authorities are considering impact of counterfeit mobile devices. consumers who have unwittingly (EIR) and to connect to the GSMA’s IMEI introducing a white list system and the purchased counterfeit devices? Database. Using the GSMA’s global Type pursuant blocking of devices, they should It is estimated that almost one in five Allocation Code (TAC) list of all legitimate consider offering an amnesty to existing mobile devices may be counterfeit.1 This has device identity number ranges, operators consumers who have non-compliant negative effects for consumers who risk can block devices with invalid IMEIs. devices, as the loss to consumers and the lower quality, safety, security, environmental Industry Position social, economic and security impact on health and privacy assurances. It also National authorities should study which the country of the immediate blocking of impacts governments who forego tax and The mobile industry supports the factors, such as import duties and taxation huge quantities of devices is significant. duties and must contend with increased need for legal and product integrity in levels, contribute to the local demand In addition, it is recommended that the crime. Industry players are also affected, as the device market and is increasingly for counterfeit devices. The potential funding model for such systems should it can harm their trademarks and brands. concerned about the negative impact of of reduced tax levels to narrow the gap not place a burden on the end users (i.e., counterfeit devices on consumer welfare between the cost of counterfeit/smuggled consumers and network operators) since Some countries are considering the and society in general. and legitimate devices should be carefully they are not the cause of the underlying implementation of national white lists considered with a view to making the black issue. White list systems should also not be to combat counterfeit, smuggled and Although mobile operators and legitimate market a less lucrative place in which applied to roamers who might be denied non-homologated devices. The purpose vendors cannot stop the production to trade. service without cause. of white lists is to indicate which devices and distribution of counterfeit devices,

are permitted access to the networks. multi-stakeholder collaboration can Some countries are considering the 1 According to figures from OECD, 2017 Operators implement device blocking help combat the issue at the source. In implementation of national white lists capabilities on their local networks and particular, national law enforcement and to combat counterfeit, smuggled and connect with the national white list to customs agencies should take measures non-homologated devices. White lists ensure permitted devices are allowed to stop the production and exportation of can be successful if they are linked with network access. counterfeit devices in their jurisdictions. It is the GSMA TAC list for verification of the essential that information on crime patterns However, counterfeit mobile devices are and specific criminal activity relating to not easy to identify and block, given that counterfeit devices is provided by national many have IMEIs that appear legitimate. agencies to appropriate international Resources: IMEI Services provided by the GSMA It is now commonplace for counterfeiters bodies, such as Interpol and the World GSMA Device Check Platform to hijack IMEI number ranges allocated to Customs Organization, to facilitate action in OECD Report: Trade in Counterfeit ICT Goods legitimate device manufacturers for use other jurisdictions by the relevant agencies. The WCO Tool in the Fight Against Counterfeiting website 196 Consumer Protection Mobile Policy Handbook 197

Mobile Devices: Theft

Background Industry Position consumer education material on their A coherent cross-border information websites reflecting the advice and sharing approach involving all relevant Policymakers in many countries are The mobile industry has led numerous measures appropriate to their market. stakeholders increases the effectiveness of concerned about the incidence of mobile initiatives and made great strides in the national measures. GSMA advocates the device theft, particularly when organised global fight against mobile device theft. The concept of a ‘kill switch’ — a mechanism sharing of stolen device data internationally crime becomes involved in the bulk export allowing mobile device users to remotely for blocking and status checking purposes of stolen devices to other markets. Although the problem of device theft is disable their stolen device — has received and the GSMA IMEI Database facilitates this not of the industry’s creation, the industry much attention. The GSMA supports function. Only if regulation allows stolen For many years, the GSMA has led industry is part of the solution. When lost or stolen device-based anti-theft features and has device information to be shared across initiatives to block stolen mobile devices, mobile devices are rendered useless, they defined feature requirements that could all countries will the deterrent have based on a shared database of the unique have significantly reduced value, removing lead to a global solution. These high-level most impact. identifiers of devices reported lost or stolen. the incentive for thieves to target them. requirements have set a benchmark for Using the International Mobile Equipment anti-theft functionality, while allowing the Some national authorities have proposed Identifier (IMEI) of mobile devices, the The GSMA encourages its member industry to innovate. national white lists or black lists with GSMA maintains a central list — known operators to deploy EIRs on their networks ongoing centralised customer registration as the GSMA Black List — of all devices to deny connectivity to any stolen device. The deployment of persistent endpoint requirements to combat device theft. These reported lost or stolen by mobile network Operators should connect to the GSMA IMEI security solutions on mobile devices can systems are unnecessary, as blacklisting operators’ customers. The GSMA IMEI Database and share their own network’s also help render devices useless and systems are sufficient and less complex or Database that hosts the GSMA blacklisting black list to ensure devices stolen from their unattractive to criminals by preventing expensive to implement and maintain. service is available to other network customers can be blocked on any other those devices from working on non-mobile operators around the world to ensure those networks that also connect to the database. networks, such as Wi-Fi, where EIR blocking In markets where a national white list or devices transported to other countries are These black list solutions have been in place would otherwise be ineffective. black list exists, lost and stolen device also denied network access. on some networks for many years. information can be exchanged between National authorities have a significant role mobile network operators through the The efficient blocking of stolen devices To better enable a range of stakeholders to play in combatting this criminal activity. GSMA IMEI Database. Alternatively, if on individual network Equipment Identity to combat device crime, GSMA provides It is critical that they engage constructively a national device blacklisting system is Registers (EIRs) depends on the secure services that allow eligible parties such with the industry to ensure the distribution already in place, and is compliant with the implementation of the IMEI in all mobile as law enforcement, device traders and of mobile devices through unauthorised GSMA’s requirements, it may be connected devices. Leading device manufacturers have insurers to check the status of devices channels is monitored and that action is to the GSMA Black List. agreed to support a range of measures to against the GSMA Black List. taken against those involved in the theft or strengthen IMEI security, and progress is illegal distribution of stolen devices. monitored by the GSMA. IMEI blocking, when complimented with additional measures undertaken by, and in consultation with, a variety of stakeholders, Debate can be the cornerstone of a highly effective anti-theft campaign. What can industry do to prevent mobile phone theft? Consumers that have had their devices Resources: stolen are particularly vulnerable to their IMEI Services provided by the GSMA personal data being used to commit a GSMA IMEI Database Portal What are the policy implications range of additional crimes. Industry, law GSMA Security Technical Design Principles GSMA IMEI Security Weakness Reporting and Correction Process of this rising trend? enforcement agencies and regulators GSMA Reference Document: Anti-Theft Device Feature Requirements are recommended to provide anti-theft GSMA Mobile Phone Theft — Consumer Advice GSMA & OAS Briefing Paper Aug 2011: Theft of Mobile Terminal Equipment 198 Consumer Protection Mobile Policy Handbook 199

Mobile Network and Device Security

Background The GSMA plays a key role in coordinating Debate processing power and a high level of the industry response to security incidents technical expertise beyond the capability Security attacks threaten all forms of ICT, and it has developed and launched a How secure are mobile voice of most people. including mobile technologies. Consumer Coordinated Vulnerability Disclosure (CVD) and data technologies and what is devices are targeted for a variety of programme. This allows the GSMA to work being done to mitigate the risks? Reports of eavesdropping are not reasons, from changing the IMEI number of with a range of stakeholders, including its uncommon, but such attacks have not a mobile phone to re-enable it after theft, operator members, security researchers and taken place on a wide scale, and UMTS through to data extraction or the use of industry suppliers, to ensure an appropriate Do emerging technologies and and LTE networks are considerably better malware to perform functions that have the response to threats that could affect services create new opportunities protected against eavesdropping risks than potential to cause harm to users. services, networks or devices. for criminals? GSM networks. Moreover, 5G technology boasts a host of new security capabilities Mobile networks use encryption The GSMA's Warning Advice and that further enhance protection levels. technologies to make it difficult for Reporting Point (WARP) helps coordinate What will the 5G security landscape criminals to eavesdrop on calls or to the mobile ecosystem worldwide, and look like? The GSMA supports global security intercept data traffic. Legal barriers to the provides crucial support around security standards for emerging services and deployment of cryptographic technologies challenges. Drawing on the collective acknowledges the role that SIM-based have been reduced in recent years and knowledge of mobile operators, vendors secure elements have played in protecting this has allowed mobile technologies to and security professionals, WARP collects Industry Position users and mobile services because the incorporate stronger and better algorithms and disseminates information and advice SIM card has proven itself to be resilient to and protocols, which remain of significant on security incidents within the mobile The protection and privacy of customer attack. The Embedded Universal Integrated interest to hackers and security researchers. community — in a trusted and anonymised communications is at the forefront of Circuit Card (UICC) approach that has way. Stakeholders from the mobile operators’ concerns. been defined by GSMA, and is being rolled Recent years have seen a significant ecosystem are encouraged to join WARP out by industry, inherits the best security increase in interest in protocols such to collectively address the critical security The mobile industry makes every properties from the SIM and is designed as SS7 and Diameter, which support issues faced by the industry, its partners reasonable effort to protect the privacy to build on the protection levels achieved interconnection between network and its customers. and integrity of customer and network in the past. operators to support mobile services. communications. The barriers to The GSMA has led a range of industry GSMA’s Fraud and Security Group acts as compromising mobile security are high and The GSMA constantly monitors the initiatives to ensure network operators a centre of expertise to drive the industry’s research into possible vulnerabilities has activities of hacker groups, as well as are aware of the risks and the mitigation management of fraud and security matters. generally been technically quite complex. researchers, innovators and a range of options open to them to protect their The group seeks to maintain or increase the industry stakeholders, to improve the networks and their customers. protection of mobile operator technology While no security technology is guaranteed security of communications networks. and infrastructure, and customer identity, to be unbreakable, practical attacks on Our ability to learn and adapt can be seen The GSMA's work and recommendations security and privacy, so that the industry’s mobile services are rare, as they tend to in the security improvements implemented have been acknowledged by regulators reputation stays strong and mobile require considerable resources, including from one generation of mobile technology around the world as being sufficient to operators remain trusted partners in specialised equipment, computer to the next. eliminate the need for regulation. the ecosystem.

Resources: GSMA Security Accreditation Scheme website GSMA Security Advice for Mobile Phone Users website GSMA Coordinated Vulnerability Disclosure website GSMA Warning Advice and Reporting Point website 200 Consumer Protection Mobile Policy Handbook 201

Number-Resource Misuse and Fraud

Background Debate Industry Position The group believes that national regulators can help communications providers Many countries have serious concerns How can regulators, number-range Number-resource misuse has a reduce the risk of number-resource misuse about number-resource misuse, a practice holders and other industry players significant economic impact for by enforcing stricter management of whereby calls never reach the destination collaborate to address this type many countries, so multi-stakeholder national numbering resources. Specifically, indicated by the international country code. of misuse and the resulting fraud? collaboration is key. regulators can: Instead they are terminated prematurely, through carrier and/or content provider The telecommunications fraud carried out • Ensure national numbering plans collusion, to revenue-generating content as a consequence of number-resource are easily available, accurate and services without the knowledge of the ITU-T misuse is one of the topics being addressed comprehensive. assigned number-range holder. by the GSMA Fraud and Security Group, a global conduit for best practice with • Implement stricter controls over the This abuse puts such calls outside any respect to fraud and security management assignment of national number ranges national regulatory controls on premium- for mobile network operators. The Fraud to applicants and ensure the ranges are rate and revenue-share call arrangements, and Security Group’s main focus is to drive used for the purpose for which they have and is a key contributing factor to industry management of mobile fraud been assigned. International Revenue Share Fraud (IRSF) and security matters to protect operators perpetrated against telephone networks and consumers, and safeguard the mobile • Implement stricter controls over leasing and their customers. Perpetrators of IRSF industry’s trusted reputation. of number ranges by number-range are motivated to generate incoming traffic assignees to third parties. to their own services with no intention The Fraud and Security Group supports of paying the originating network for the European Union guidelines under The Fraud and Security Group shares calls. They then receive payment quickly, which national regulators can instruct abused number ranges among its members long before other parties within the communications providers to withhold and with other fraud-management settlement process. payment to downstream traffic partners industry bodies. It also works with leading in cases of suspected fraud and misuse. international transit carriers to reduce Misuse also affects legitimate telephony the risk of fraud that arises as a result of traffic, as high-risk number ranges can be number-resource misuse, and with law blocked as a side-effect. enforcement agencies to support criminal investigations in this area.

Resources: ITU-T Misuse of an E.164 International Numbering Resource website 202 Consumer Protection Number-Resource Misuse and Fraud Mobile Policy Handbook 203

Facts and Figures Best Practice

Top 10 Countries Whose Numbering Resources Are Being Abused Recommended Operator Controls to Reduce Exposure to Fraud from Number-Resource Misuse

1 2 3 4 5

Republic Implement controls at the point of subscriber acquisition and controls to prevent United Chad Tunisia Armenia of the Congo Kingdom account takeover. (Brazzaville)

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.

6 7 8 9 10

Croatia Latvia Albania Morocco Switzerland Ensure that up-to-date tariffs, particularly for premium numbers, are applied within roaming agreements.

Source: GSMA July 2018 Implement the Barring of International Calls Except to Home Country (BOIEXH) function for new or high-risk subscriptions. 204 Consumer Protection Mobile Policy Handbook 205

Privacy

Background Debate Industry Position Because of the high level of innovation in mobile services, legislation should Research shows that mobile customers are How can policymakers help create Currently, the wide range of services focus on the overall risk to an individual’s concerned about their privacy and want a privacy framework that supports available through mobile devices offers privacy, rather than attempting to legislate simple and clear choices for controlling how innovation in data use while varying degrees of privacy protection. for specific types of data. For example, their private information is used. They also balancing the need for privacy To give customers confidence that legislation must deal with the risk to an want to know they can trust companies across borders, irrespective of their personal data is being properly individual arising from a range of different with their data. A lack of trust can act as the technology involved? protected — irrespective of service or data types and contexts, rather than a barrier to growth in economies that are device — a consistent level of protection focusing on individual data types. increasingly data driven. must be provided. How is responsibility for ensuring The mobile industry should ensure privacy One of the major challenges faced by the privacy across borders best Mobile operators believe that customer risks are considered when designing new growth of the mobile internet is that the distributed across the mobile confidence and trust can only be fully apps and services, and develop solutions security and privacy of people’s personal internet value chain? achieved when users feel their privacy is that provide consumers with simple ways information is regulated by a patchwork of appropriately protected. to understand their privacy choices and geographically-bound privacy regulations, control their data. while the mobile internet service is, by What role does self-regulation play The necessary safeguards should derive definition, international. Furthermore, in a continually evolving technology from a combination of internationally The GSMA is committed to working with in many jurisdictions the regulations environment? agreed approaches, national legislation and stakeholders from across the mobile governing how customer data is collected, industry action. Governments should ensure industry to develop a consistent approach processed and stored vary considerably legislation is technology neutral and that its to privacy protection and promote trust in between market participants. For example, What should be done to allow data rules are applied consistently to all players mobile services. the rules governing how personal data to be used to support the social in the internet ecosystem. 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 Resources: provide easy access to their personal data, GSMA Mobile and Privacy website leaving them exposed to unwanted or GSMA Report: Safety, Privacy and Security Across the Mobile Ecosystem undesirable outcomes such as identity theft GSMA Report: Consumer Research Insights and Considerations for Policymakers GSMA Report: Mobile Privacy Principles — Promoting a User-centric Privacy Framework for the Mobile and fraud. Ecosystem GSMA Report: Privacy Design Guidelines for Mobile Application Development GSMA Report: Mobile Privacy and Big Data Analytics GSMA Presentation: IoT Privacy by Design Decision Tree 206 Consumer Protection Privacy Mobile Policy Handbook 207

Deeper Dive

Smart Privacy Practice and Regulation Mobile Privacy Principles

A combination of smart data privacy practices and smart data privacy regulation is required The GSMA has published a set of universal Mobile Privacy Principles, which describe how to sustain consumers’ trust in the digital ecosystem that has evolved rapidly around them. mobile consumers’ privacy should be respected and protected.

The GSMA has developed nine Mobile Privacy Principles as well as a range of resources to promote good practice. These resources include the GSMA’s Privacy Design Guidelines for • Openness, transparency and notice Mobile Application Development, considerations that should be taken into account when Responsible persons (e.g., application or service providers) shall be open and honest engaging in Big Data analytics and a privacy-by-design decision tree for use in developing IoT with users and will ensure users are provided with clear, prominent and timely products and services. They seek to strike a balance between protecting privacy and enabling information regarding their identity and data privacy practices. organisations to achieve commercial, public policy and societal goals. • Purpose and use If organisations adopt comprehensive policies, processes and practices to protect the privacy The access, collection, sharing, disclosure and further use of personal information of individuals — and can easily demonstrate these safeguards are effective — they will shall be limited to legitimate business purposes, such as providing applications or strengthen trust among consumers and regulators. Equally, if governments adopt smart data services as requested by users, or to otherwise meet legal obligations. privacy rules, they can establish a regulatory environment that stimulates the digital economy while also unleashing its benefits for consumers and citizens. • User choice and control Users shall be given opportunities to exercise meaningful choice and control over While governments must ensure smart data privacy laws take account of citizen's privacy their personal information. concerns, they must also recognise that these rules can have important consequence beyond the protection of privacy. As a result, when drafting these rules, governments must take into • Data minimisation and retention consideration how these laws sit within an economic and societal context. Only the minimum personal information necessary to meet legitimate business purposes should be collected and otherwise accessed and used. Personal Policymakers around the world have been studying the EU’s General Data Protection information must not be kept for longer than is necessary for those legitimate Regulation (GDPR) and other regional and national frameworks or laws to inform their business purposes or to meet legal retention obligations. own legislative proposals. Among the lessons learned are that smart data privacy rules are: • Respect user rights • Horizontal, meaning they apply to all processing of personal data rather than focusing on Users should be provided with information about, and an easy means to exercise, just one technology or sector. This reduces the need for sectoral rules or operating licences their rights over the use of their personal information. that subject network operators to an additional set of competing privacy obligations. • Security • Principles-based, allowing innovation to thrive without having to reinvent the rules every Personal information must be protected, using reasonable safeguards appropriate time new technologies or business methods are introduced. to the sensitivity of the information.

• Risk-based, encouraging companies to focus on preventing harm (for example, by setting • Education a threshold for reporting of data breaches rather than mandating that all breaches are Users should be provided with information about privacy and security issues and reported), or encouraging organisations to implement privacy-by-design and privacy ways to manage and protect their privacy. impact assessment processes. • Children and adolescents • Based on the idea of accountability, holding companies to account, but allowing them to An application or service that is directed at children and adolescents should ensure innovate and comply in a way that makes sense for their business and rewarding those that that the collection, access and use of personal information is appropriate in all given embed a culture of privacy in their organisations. circumstances and is compatible with national law.

• Open to data flows, allowing data to cross borders provided there are sufficient safeguards to protect an individual’s privacy (see the Cross-Border Flows of Data section in this handbook). 208 Consumer Protection Mobile Policy Handbook 209

Privacy and Big Data

Background Debate 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 Increases in computing power and falling How can MNOs and policymakers of processing’ — that had not been processed where this may raise prices of information technology systems help society realise the benefits considered or identified when the data privacy concerns. make it possible to process huge volumes of Big Data analytics in a privacy was initially collected. Accordingly, privacy of data, from a variety of sources and in protective manner and in frameworks must recognise this potential • Establishing clarity on responsibilities a range of formats, at greater speed than compliance with applicable laws? and make such uses possible. between parties when collaborating on ever before. As a result, it is now possible Big Data analytics projects. to analyse all of the data from one or MNOs can address these types of more large datasets, rather than relying How can the GSMA further trust challenges and increase trust between • Incorporating ethical decision-making on smaller samples of data. Importantly, among stakeholders involved in the industry stakeholders and consumers by: into governance models. this allows meaningful insights to be collection and analytics of data? drawn, where appropriate, from mere • Building on previous privacy Equally, governments can ensure their correlations in the data rather than having initiatives, such as the GSMA Mobile country and citizens gain the most benefit to identify causal connections. These Privacy Principles and the Privacy from the potential of Big Data by: capabilities are often referred to as Big Industry Position Design Guidelines for Mobile Data analytics techniques. Application Development. • Understanding how Big Data analytics The mobile industry recognises the works and the context in which it At the same time, the Internet of Things societal benefits that can result from • Finding innovative ways to provide takes place. (IoT) is equipping an ever-increasing Big Data and wants to unlock the huge meaningful choice, control and number of devices with sensors that potential of Big Data analytics in a way transparency to individuals about what • Accommodating innovative approaches collect and communicate data. that respects well-established privacy data is collected and how it is used. to transparency and consent. principles and fosters an environment For example, this could be addressed Together, these capabilities represent of trust. through user-friendly dashboards or • Developing and adopting practical a sea change in society’s ability not only signals from IoT devices that are easily industry guidelines and self-regulatory to create new products and services, but New laws are not necessary to address Big discoverable by smartphones. measures that seek to harness, rather also to solve some of the most pressing Data analytics and the IoT. Rather, MNOs than hinder, Big Data analytics. public policy needs of our time — from recognise that existing privacy principles • Thinking carefully about the impact on road management in congested and apply in these areas. Rules that restrict the individuals (and groups) of the insights polluted urban areas to understanding legitimate use of data or metadata should derived from Big Data and the actions and preventing the spread of diseases. be qualified and proportional to the risk of or decisions that may be taken based on privacy harm that consumers might suffer those insights. Mobile network operators (MNOs) will if their data is misused. These rules should increasingly use the information they also be applied consistently across different collect for Big Data initiatives. They have industry sectors and types of technology. an important role to play as responsible stewards of that data and potentially as MNOs are well-placed to understand the facilitators in a future marketplace for potential risks to individuals and groups access to this type of data. from Big Data analytics and can implement measures to avoid or mitigate those risks. Resources: However, Big Data capabilities also give GSMA Report: Mobile Privacy and Big Data Analytics GSMA Report: Mobile Privacy Principles — Promoting Consumer Privacy in the Mobile Ecosystem rise to questions about security and GSMA Privacy Design Guidelines for Mobile Applications website privacy and how these important concerns OECD Data-driven Innovation for Growth and Well-being website can be addressed. FTC Report: Big Data — A Tool for Inclusion or Exclusion? 210 Consumer Protection Mobile Policy Handbook 211

Signal Inhibitors (Jammers)

Background Debate Industry Position and they can interfere with the operation of mobile-connected alarms or personal Signal inhibitors, also known as jammers, Should governments or private In some Latin American countries, such health devices. are devices that generate interference organisations be allowed to use as Colombia, El Salvador, Guatemala and or otherwise intentionally disrupt signal inhibitors that interfere with Honduras, governments are promoting The industry’s position is that signal communication services. In the case of the provision of mobile voice and the deployment of signal inhibitors inhibitors should only be used as a last mobile services, they interfere with the data services to consumers? to limit the use of mobile services in resort and only deployed in coordination communication between the mobile prisons. The GSMA and its members are with operators. This coordination must terminal and the base station. Their use by committed to working with governments continue for the total duration of the private individuals is banned in countries Should the marketing and sale to use technology as an aid for keeping deployment of the devices — from such as Australia, the United Kingdom and of signal inhibitors to private mobile phones out of sensitive areas, installation through to deactivation — the United States. individuals and organisations as well as cooperating on efforts to to ensure that interference is minimised in be prohibited? detect, track and prevent the use of adjacent areas and legitimate mobile phone In some regions, such as Latin America, smuggled devices. users are not affected. signal inhibitors are used to prevent the illegal use of mobile phones in specific However, it is vital that a long-term, Furthermore, to protect the public locations, such as prisons. However, practical solution is found that doesn’t interest and safeguard the delivery of blocking the signal does not address the negatively impact legitimate users, nor mobile services, regulatory authorities root cause of the problem — wireless affect the substantial investments that should ban the use of signal inhibitors by devices illegally ending up in the hands mobile operators have made to improve private entities and establish sanctions for of inmates who then use them for their coverage. private entities that use or commercialise illegal purposes. them without permission from relevant The nature of radio signals makes it virtually authorities. The import and sale of inhibitors Moreover, signal inhibitors don’t prevent impossible to ensure that the interference or jammers must be restricted to those mobile devices from connecting to Wi-Fi generated by inhibitors is confined, for considered qualified and authorised to do networks, as they don’t affect the frequency example, within the walls of a building. so and their operation must be authorised bands used by Wi-Fi routers. As a result, Consequently, the interference caused by by the national telecommunications signal inhibitors don’t block people from signal inhibitors affects citizens, services regulator. using over-the-top voice applications to and public safety. It restricts network make calls to phone networks. coverage and has a negative effect on the Nevertheless, strengthening security to quality of services delivered to mobile users. prevent wireless devices being smuggled Mobile network operators invest heavily to Furthermore, inhibitors cause problems for into sensitive areas, such as prisons, is the provide coverage and capacity through the other critical services that rely on mobile most effective measure against the illegal installation of radio base stations. However, communications. For example, during an use of mobile devices in these areas, as it the indiscriminate use of signal inhibitors emergency they could limit the ability would not affect the rights of legitimate compromises these investments by causing of mobile users to contact emergency users of mobile services. extensive disruption to the operation of services via numbers such as 999, 911 or 112, mobile networks, reducing coverage and leading to the deterioration of service for consumers.

Resources: GSMA Public Policy Position: Signal Inhibitors in Latin America GSMA Report: Signal-Blocking Solutions — Use of Jammers in Prisons GSMA Report: Safety, Privacy and Security Across the Mobile Ecosystem 212 Appendix Mobile Policy Handbook 213

GSMA Intelligence Global Market Source: GSMA

GSMA Intelligence is an extensive and growing resource for GSMA members, associate members and other organisations interested in understanding the mobile industry. Global SIM connections excluding cellular M2M Through industry data collection and aggregation, market research and analysis, 9.0bn GSMA Intelligence provides a valuable view of the mobile industry, and the wider mobile ecosystem, around the globe. 1.92%

Global coverage 7.9bn CAGR GSMA Intelligence publishes data and insights spanning 240 markets, 1,400 mobile connections network operators and over 1,300 mobile virtual network operators (MVNOs). Comprising 2018 2025 more than 30 million individual data points, GSMA Intelligence combines historical and forecast data from the beginnings of the industry in 1979 with forecasts out to 2025. Mobile broadband growth New data is added every day. 2025 8.4bn

Numerous data types connections 7.48% 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 4,600 network 2018 5.1bn CAGR deployments to date. White papers and reports from across the GSMA and weekly bulletins are also available as part of the service. Global subscribers 5.9bn Powerful data tools 5.1bn

Information in GSMA Intelligence is made easy to use by a range of data-selection tools: subscribers multifaceted search, rankings, filters, dashboards, a real-time data and news feed, as well 2018 2025 CAGR 2.0% as the ability to export data into Excel and add graphs and charts to presentations. penetration

66.6% 71.2% https://gsmaintelligence.com [email protected] LTE networks count (includes ﬁxed-wireless) 861 networks Total live and planned 217 markets 675 networks

2018

208 markets

CAGR: compound annual growth rate 214 Appendix Mobile Policy Handbook 215

Unique subscriber penetration by region Mobile operator group global ranking by connections Q2 2018 Source: GSMA Intelligence Source: GSMA Intelligence, company reports

The global unique subscriber base grew by 3.1 per cent in the previous 12 months. This growth is forecast to continue, but at a slower rate of two per cent until 2025. China Mobile 9.0 Growth is far from uniform across the regions of the world and is now largely driven by Vodafone Group 4.9 developing markets, which are forecast to add over 706 million subscribers over the

next six years, compared to only 64 million new additions in developed markets over Bharti Airtel Group 4.4 the same period. China Unicom 3.0 Unique subscriber penetration rates vary significantly across regions. Europe has the highest penetration rate on average, followed by North America and then the China Telecom 2.7 Commonwealth of Independent States (CIS). Sub-Saharan Africa had the lowest penetration rate in 2018 at 45 per cent of the population, despite having seen the Telefonica Group 2.6 fastest subscriber growth of any region over the past decade. America Movil Group 2.5

Idea Cellular 2.1 A Unique subscriber penetration by region B Smartphone adoption by region Orange Group 2.0 67.3% 63% 72.7% 81% Telkomsel 2.0 Asia Paciﬁc Asia Paciﬁc (Telkom Indonesia) Reliance Jio 80.4% 59% 2.0 (Reliance Industries) 82.3% 79% CIS CIS Telenor Group 1.8

85.4% 72% 87.6% 83% MTN Group 1.8 Europe Europe VEON Group 1.6 67.9% 64% 74.3% 78% Deutsche Telekom Group 1.5 Latin America Latin America

62.7% 56% Axiata Group 1.5 67.6% 76% Middle East and North Africa Middle East and North Africa Ooredoo Group 1.5

83.7% 81% Verizon Wireless 1.2 85.6% 91% Northern America Northern America Etisalat Group 1.2

44.9% 36% AT&T Group 1.2 51.6% 67% Sub-Saharan Africa Sub-Saharan Africa 0100 200300 400500 600700 800900

2018 2025 Mobile connections (hundreds of millions) 216 Appendix Mobile Policy Handbook 217

Global connection trends Financial Data Source: GSMA Intelligence

GSMA Intelligence forecasts that between 2018 and 2025, mobile operators will grow

10bn revenues by a CAGR of 0.8 per cent to reach $1.15 trillion. Slowing subscriber growth, Total connections coupled with declining levels of ARPU are the prime factors driving this trend. (excluding cellular M2M) 8bn Between 2018 and 2020, mobile operators across the world will spend $492 billion on capex, compared to $541 billion over the preceding three years. The key reason for the 6bn disparity is the large decline in capex in China following the completion of 4G rollout in Unique subscribers the country; the combined annual capex for Chinese operators during 2016 was almost 4bn $18 billion lower than the annual average between 2013 and 2015. Mobile broadband connections 2bn

$1,030 $1,038 $1,051 $1,076 $1,096 $1,104 $1,113 $1124 $1,133 $1,141 $1,148

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5G connections 2025 (in millions) % of total connections Global mobile revenues ($bn) 441.9

306.6 193.6 $9.99 $9.83 $9.49 $9.19 $9.10 $9.03 $8.95 $8.88 $8.79 $8.70 $8.60 188.9 14% 19% 96.5 37.5

ChinaEuropeUSJapan S KoreaRest 100% 2025

% of population covered by 5G networks 100% 2025 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Global mobile average revenue per user (ARPU) 39%437%574% 87%13% 29% 3% 4%

$194 $171 $176 $166 $164 $163

Global Asia Europe Northern Latin Middle East and CIS Sub-Saharan Paciﬁc America America North Africa Africa

Number of 5G connections (in billions) 2015 2016 2017 2018 2019 2020 2025 Mobile capex ($bn) 1.26 2024 0.99 2023 0.69 2022 0.43 19%16% 17%15% 15%15% 2021 0.22 2020 0.07 2015 2016 2017 2018 2019 2020 2019 Capex to sales ratio 0.01 218 Appendix Mobile Policy Handbook 219

GSMA Intelligence forecasts that the total number of IoT connections (cellular and The majority of IoT devices — typically in indoor environments — will be connected by non-cellular) globally will reach 25.2 billion in 2025, up from nine billion in 2018. The unlicensed radio technologies designed for short-range connectivity. These include size of the market will triple over the forecast period. technologies such as Wi-Fi, Z-Wave and ZigBee. IoT devices that require mobility, lower latency and ultra reliability will primarily be connected by cellular networks using licensed While IoT is rapidly becoming a mainstream technology in consumer markets (for spectrum. Cellular networks address the need for more secure, managed connectivity consumer electronics and smart home devices), the industrial IoT segment will be the allowing devices to connect directly to the cloud (as opposed to a gateway). Managed largest source of connections growth in the future. connectivity will be one of the key drivers of growth. Licenced LPWA networks enable a slew of IoT devices that require longer battery life and lower data throughputs to be Total IoT connections, 2010-2025 connected. Currently, there are 62 commercial launches of mobile IoT across several Total IoT connections, 2010-2025 countries, including the US, China and parts of Europe. GSMA Intelligence forecasts that by 2025, propelled by the growth of NB-IoT and LTE-M, licensed cellular networks 5 increase 3 increase 25 2010 - 2017 2018 - 2025 will serve 3.3 billion IoT connections globally or 13 per cent of the total number of IoT connections. The growth in licenced LPWA connections is particulary noteworthy — ) 20 GSMA Intelligence expects it to account for almost 60 per cent of total licenced IoT

(bilion connections, representing a twelvefold increase between 2018 and 2025.

s 15 on ti 10 IoT connections by technology, cellular share of total IoT nnec T co

Io 5 13% 25 13% 0 13% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 s) 20 13% 13%

(billion 15 12% s 12%

on 11% ti 9% Consumer IoT vs Industrial IoT connections as proportion of total IoT 10 7% 6%

Connec 5 70% 70% 0 60% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 59% 50% 55% Non-cellular Cellular Licensed cellular IoT as % total IoT

40% 45% 41%

30% Licensed LPWA connections 30%

20% 2,000 Consumer IoT Industrial IoT % total IoT % total IoT 10% 1,600 12 increase s)

0% illion 1,200 (m

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 s on ti 800 nnec

Definition co 400 GSMA Intelligence defines Internet of Things (IoT) devices as those capable of two-way data transmission (excluding passive sensors and RFID tags). It includes connections using multiple communication 0 methods such as cellular and short-range connectivity. It excludes PCs, laptops, tablets, e-readers, 2018 2019 2020 2021 2022 2023 2024 2025 data terminals and smartphones. 220 Appendix Mobile Policy Handbook 221

Spectrum assignments across regions by bands, 2013-2018 mmWave bands that will be used for initial 5G deployments

120 Region Band (GHz) 100 24.25-27.5 GHz, 80 Europe 40.5-43.5 GHz 60 40 China 24.25-27.5 GHz, 3 GHz in 37-43.5 GHz

No. of auctions 20 Korea 24.25-29.5 GHz, 3 GHz in 37-43.5 GHz 0 700 800850 900 AWS 18001900 1700/ 2100 2300 2500/ 3500 3700 Other Japan 24.25-29.5 GHz, 3 GHz in 37-43.5 GHz (PCS) 2100 2600 US 24.25-25.25 GHz, 27.5-28.35 GHz, 37-40 GHz AP CIS Europe LatAm MENA NA SSA

Share of LTE deployments by frequency band, by region (July 2018) Trials in a range of spectrum bands Source: GSMA Intelligence

5G trials in dierent band ranges Bands 0 0 0 0 0 0 00 00 00 00 (MHz) 45 60 70 80 85 90 15 1800 1900 2100 2300 2500 26 35 3600 37 5000 5800

AP 7.5 CIS <3 GHz Europe 31.1 LatAm 3 GHz to 6 GHz MENA 27.2 NA 6 GHz to 30 GHz % SSA >30 GHz < 10% of LTE deployments between 10-20% > 20% 7.0 Unconﬁrmed bands

Frequency Bands used for LTE (July 2018) 27.2

The top 5 bands account for 80% of LTE usage 350 300 121 operators 73 operators

s 250 or at band 200 e per

th are trialling have announed plans to launch f o g 150

.o 5G technology across 5G services across usin

No 100 50 0 61 countries 46 countries 1800 MHz 2.5 & 2.6 GHz 800 MHz 700 MHz 2100 MHz Others (band 3) (bands 7, 38) (band 20) (bands 20, 12, (band 1) 13, 14, 17) 222 Appendix Mobile Policy Handbook 223

Amount of MHz licensed for mobile use around the world (July 2018)

0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600

Afghanistan Burundi Equatorial Israel Guinea Albania Cabo Verde Italy Eritrea Algeria Cambodia Jamaica Estonia Andorra Cameroon Japan Ethiopia Angola Canada Jordan Fiji Antigua and Central Kazakhstan Barbuda African Rep. Finland Kenya Argentina Chad France Kiribati Armenia Chile Gabon Korea, North Australia China Gambia Korea, South Austria Colombia Georgia Kosovo Azerbaijan Comoros Germany Kuwait Bahamas Congo Ghana Kyrgyzstan Bahrain Congo, Dem. Greece Laos Rep. Bangladesh Grenada Latvia Costa Rica Barbados Guatemala Lebanon Cote d'Ivoire Belarus Guinea Lesotho Croatia Belgium Guinea-Bissau Liberia Cuba Belize Guyana Libya Cyprus Benin Haiti Liechtenstein Czech Rep. Bhutan Honduras Lithuania Denmark Bolivia Hong Kong Luxembourg Djibouti Bosnia and Hungary Macau Herzegovina Dominica Iceland Macedonia Botswana Dominican India Rep. Madagascar Brazil Indonesia Ecuador Malawi Brunei Iran Darussalam Egypt Malaysia Iraq Bulgaria El Salvador Maldives Ireland Burkina Faso Mali 224 Appendix Mobile Policy Handbook 225

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 0-200 200-400 400-600 > 600 0-200 200-400 400-600 > 600

Malta Paraguay South Africa Tunisia Marshall Peru South Sudan Turkey Islands Philippines Spain Turkmenistan Mauritania Poland Sri Lanka Tuvalu Mauritius Portugal Sudan Uganda Mexico Qatar Suriname Ukraine Micronesia Romania Swaziland United Arab Moldova Emirates Russian Sweden Monaco Federation United Switzerland Kingdom Mongolia Rwanda Syria United States Montenegro Saint Kitts Taiwan of America and Nevis Morocco Tajikistan Uruguay Saint Lucia Mozambique Tanzania Uzbekistan Saint Vincent Myanmar and the Thailand Vanuatu Namibia Grenadines Timos-Leste Venezuela Nauru Samoa Togo Vietnam Nepal San Marino Tonga Yemen Netherlands Sao Tome and Trinidad and Zambia New Zealand Principe Tobago Zimbabwe Nicaragua Saudi Arabia Niger Senegal Nigeria Serbia Amount of spectrum in some countries was estimated by GSMA Intelligence Norway Seychelles Oman Sierra Leone Pakistan Singapore Palau Slovakia Palestine Slovenia Panama Solomon Islands Papua New Guinea Somalia 226 Appendix Mobile Policy Handbook 227

Global LTE frequency bands

Band Number Type Mhz Name Uplink Downlink Regions 1 FDD 2100 IMT Core Band 1920 – 1980 2110 – 2170 Global except N America 2 FDD 1900 PCS 1900 1850 – 1910 1930 – 1990 Americas, Asia 3 FDD 1800 1800 1710 – 1785 1805 – 1880 Global except Americas 4 FDD 1700 AWS 1710 – 1755 2110 – 2155 Americas 5 FDD 850 850 824 – 849 869 – 894 Americas, APAC 7 FDD 2600 IMT-Extension 2500 – 2570 2620 – 2690 Global except N America 8 FDD 900 E-GSM 880 – 915 925 – 960 Global except N America 9 FDD 1800 Japan UMTS 1700 / Japan DCS 1749.9 – 1784.9 1844.9 – 1879.9 Japan 10 FDD 1700 Extended AWS blocks A-I 1710 – 1770 2110 – 2170 Americas 11 FDD 1500 Lower PDC 1427.9 – 1447.9 1475.9 – 1495.9 Japan 12 FDD 700 Lower SMH blocks A/B/C 699 – 716 729 – 746 N America 13 FDD 700 Upper SMH block C 777 – 787 746 – 756 N America 14 FDD 700 Upper SMH block D 788 – 798 758 – 768 N America 17 FDD 700 Lower SMH blocks B/C 704 – 716 734 – 746 N America 18 FDD 850 Japan lower 800 815 – 830 860 – 875 Japan 19 FDD 850 Japan upper 800 830 – 845 875 – 890 Japan 20 FDD 800 EU Digital Dividend 832 – 862 791 – 821 Europe, Middle East, Africa 21 FDD 1500 Upper PDC 1447.9 – 1462.9 1495.9 – 1510.9 Japan 22 FDD 3500 FDD 3500 3410 – 3490 3510 – 3590 n/a 23 FDD 2000 S-Band (AWS-4) 2000 – 2020 2180 – 2200 N America 24 FDD 1600 L-Band (US) 1626.5 – 1660.5 1525 – 1559 n/a 25 FDD 1900 Extended PCS blocks A-G 1850 – 1915 1930 – 1995 N America 26 FDD 850 Extended CLR 814 – 849 859 – 894 N America 27 FDD 850 SMR 807 – 824 852 – 869 N America 28 FDD 700 APT 703 – 748 758 – 803 Latin America, APAC 29 FDD* 700 Lower SMH blocks D/E N/A 717 – 728 N America 30 FDD 2300 WCS blocks A/B 2305 – 2315 2350 – 2360 N America 31 FDD 450 LTE 450 Brazil 452.5 – 457.5 462.5 – 467.5 Brazil 32 FDD* 1500 L-Band (EU) N/A 1452 – 1496 Europe 33 TDD 2100 TDD 2000 Lower 1900 – 1920 Global except N America 34 TDD 2100 TDD 2000 Upper 2010 – 2025 Global except N America 37 TDD 1900 PCS Center Gap 1910 – 1930 Global (certain countries) 38 TDD 2600 IMT Extension Gap 2570 – 2620 Global except N America 39 TDD 1900 China TDD 1900 1880 – 1920 China 228 Appendix Mobile Policy Handbook 229

Global LTE frequency bands (cont.)

Band Number Type Mhz Name Uplink Downlink Regions 40 TDD 2300 TDD 2300 2300 – 2400 Global (certain countries) 41 TDD 2500 BRS / EBS 2496 – 2690 N America, China, Japan 42 TDD 3500 C-band 3400 – 3600 Global 43 TDD 3700 C-band 3600 – 3800 Europe 44 TDD 700 APT 703 – 803 n/a 45 TDD 1500 L-Band (China) 1447 – 1467 n/a 46 TDD 5200 NII 5150 – 5925 n/a 47 TDD 5900 V2X 5855 – 5925 n/a 48 TDD 3500 US CBRS 3500 3550 – 3700 n/a 49 TDD 3500 eLAA 3500 3550 – 3700 n/a 50 TDD 1500 TDD L-band 1432 – 1517 n/a 51 TDD 1500 TDD L-band 1427 – 1432 n/a 52 TDD 3300 TDD 3300 3300 – 3400 n/a 65 FDD 2100 Extended IMT 1920 – 2010 2110 – 2200 n/a 66 FDD 1700 Extended AWS blocks A-J (AWS-1/AWS-3) 1710 – 1780 2110 – 2200 n/a 67 FDD* 700 EU 700 N/A 738 – 758 Europe 68 FDD 700 ME 700 698 – 728 753 – 783 Middle East 69 FDD* 2600 IMT-E (duplex spacing) N/A 2570 – 2620 n/a 70 FDD 1700 AWS-3 A1/B1 + EPCS H 1695 – 1710 1995 – 2020 n/a 71 FDD 600 US 600 663 – 696 617 – 652 n/a 72 FDD 450 450 EU BB-PPDR 451 – 456 461 – 466 n/a 73 FDD 450 450 Region 3 450 – 455 460 – 465 n/a 74 FDD 1500 FDD L-band 1427 – 1470 1475 – 1517 n/a 75 FDD* 1500 Extended SDL L-band n/a 1432 – 1517 n/a 76 FDD* 1500 Extended SDL L-band n/a 1427 – 1432 n/a

* Supplemental Downlink only www.gsma.com/publicpolicy/handbook