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Preconditions for Effective Deployment of Wireless Technologies for Development SAMARAJIVA

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Preconditions for Effective Deployment of Wireless Technologies for Development SAMARAJIVA Preconditions for Effective Deployment of Wireless Technologies for Development SAMARAJIVA Preconditions for Effective Deployment of Wireless Technologies for Development in the Asia-Pacific [email protected] LIRNEasia 12 Balcombe Place Colombo 8, Sri Lanka Wireless technologies play an enormously important role in extending access to voice and data communications by hitherto excluded groups in society, es- pecially in the world’s most populated region and now the largest mobile mar- ket, the Asia-Paciªc. The present rates of growth and levels of connectivity could not have been achieved without wireless in the access networks, for mobile as well as for ªxed, and in the backbone networks. But the solution is not simply wireless; it is wireless combined with new investment; it is wireless combined with other inputs and systems. Participation in the supply of services to meet pent up demand must be enabled by the removal of barriers to entry to hitherto monopolized markets. More than half the Asia-Paciªc countries now allow some form of market entry in basic services (higher in mobile). However, even where entry is allowed, conditions are not optimal for investment. For innovations using wireless, the creation of a better telecom regulatory environment constituted by better policies, regulation, and imple- mentation with regard to market entry, management of scarce resources, in- terconnection and access, and the enforcement of regulatory and competition rules is essential. In sum, wireless matters, but only when policy and regulatory preconditions allow it to matter. After much debate, it is now recognized that economic growth is a neces- sary condition for the alleviation of human misery (or for the achievement of human development). The relationship between the ability to commu- nicate over distance using technological means and economic growth has been much discussed.1 Correlation is beyond dispute, but the case for A previous version was presented at the high-level workshop on wireless communication and development: A global perspective, Annenberg Research Network on International Communication, University of Southern California, Los An- geles, October 6–8, 2005. The comments of the participants, an anonymous reviewer and the editorial assistance of Ayesha Zainudeen are gratefully acknowledged. 1. E.g., Cronin, F. J., Colleran, E. K., Parker, E. B. and Gold, M. A. (1991) “Telecommunications Infrastructure and Eco- nomic Growth: An Analysis of Causality’, Telecommunications Policy, 15(6): 529–535. Cronin, F. J., Colleran, E. K., Herbert, P. L. and Lewitzky, S. (1993) ‘Telecommunications and Growth: the Contribution of Telecommunications Infra- structure Investment to Aggregate and Sectoral Productivity’, Telecommunications Policy, 17(9): 677–690. Cronin, F. J., Colleran, E. K., Parker, E. B. and Gold, M. A. (1993) ‘Telecommunications Infrastructure Investment and Economic De- velopment’, Telecommunications Policy, 17(6): 415–430. Hardy, A. P. (1980) ‘The Role of the Telephone in Economic Development’, Telecommunications Policy, 4(4): 278–286. Mansell, R. and Wehn, U. (1998) Knowledge Societies: Infor- mation Technology for Sustainable Development, Oxford: Oxford University Press published for the United Nations Commission on Science and Technology for Development. World Bank (1999) World Development Report 1999, Ox- ford: Oxford University Press. © 2007 The Massachusetts Institute of Technology Information Technologies and International Development Volume 3, Number 2, Winter 2006, 57–71 57 PRECONDITIONS FOR EFFECTIVE DEPLOYMENT OF WIRELESS TECHNOLOGIES FOR DEVELOPMENT data. Optical ªber plays an important role in backbone net- works, even though satellite, digital microwave, and even some forms of unlicensed IEEE 802.11–type technologies play varying roles in the backbone.3 However important wireless is to modern ICT infrastructures in the developing world and in the developed world alike, it is not something that can be simply dropped in to yield magical results. Figure 1. Development: Not by communication (wireless) alone Its effective use requires the satis- Source: Author faction of several institutional pre- conditions. If anything, government causation is unlikely to be fully established. Develop- has more of a role in enabling effective use of wire- ment requires many inputs; communication and less than it does with wire-based telephony. knowledge being only some (see Figure 1). The Asia-Paciªc includes South Korea, the coun- Establishing causation was considerably more im- try with the world’s second-highest broadband pen- portant prior to the 1990s, when public funds were etration (after Iceland), and Macau SAR [Special still the main source of investments for expanding Administrative Region], and Hong Kong SAR, which access to information and communication technolo- have more mobile connections than people, on one gies (ICTs). There was a need to ensure that scarce end of the connectivity continuum, and Myanmar ªnancial resources were being spent on the services and North Korea, with mobile teledensities of 0.17 with the greatest public beneªt. The burden of and 0.02, respectively, on the other.4 In many coun- proof is much less at the present time because pri- tries in Asia, mobile connections have overtaken vate capital is the main source of funding for ex- ªxed connections, underlining the importance of panding access. The always-beyond-expectations wireless. The very ªrst country where mobile over- demand that has been exhibited by the uncon- took ªxed was the Asian country of Cambodia, as nected when offered telecom services is reason far back as in 1993. enough for private investors. The available evidence In all Asia-Paciªc countries where connectivity is of employment and tax generation and similar growing rapidly, wireless is playing a signiªcant role. beneªts is adequate to justify government action to India’s recent growth spurt is driven not only by 2 facilitate private supply. “pure” mobiles but also by CDMA 800 technology Therefore, this article takes as a starting point the that began life in that country in the guise of “lim- necessity of greater access to ICTs by hitherto un- ited mobility” services (Figure 2). In Cambodia and served or underserved people of the developing Laos, the ªxed network is being expanded, primarily world. The access networks that will connect these for data, through deployment of wireless networks people are for the most part wireless, whether the based on CDMA 450.5 Sri Lanka’s expansion of ªxed services are described as ªxed, mobile, voice, or 2. E.g., Lane, B., Sweet, S, Lewin, D., Sephton, J, Petini, I. (2006, April). The economic and social beneªts of mobile services in Bangladesh: A case study for the GSM Association. London: Ovum. 3. Goswami, D. & Purbo, O. (2006). ‘WiFi “Innovation” in Indonesia: Working around hostile Market and Regulatory Conditions,’ World Dialogue on Regulation Discussion Paper WDR0611 http://www.lirneasia.net/2006/05/wi-ª- %e2%80%9cinnovation%e2%80%9d-in-indonesia-working-around-hostile-market-and-regulatory-conditions/ (con- sulted 12 July 2006). 4. ITU (2005) The Internet of things. Geneva: International Telecommunication Union. The teledensity ªgure for North Korea is from the World Bank. 5. Tanner, John C. (2004, August 7th), CDMA 450 to save ªxed line in Laos and Cambodia, telecomasia.net. At: http:// www.telecomasia.net/telecomasia/article/articleDetail.jsp?id?120365 58 Information Technologies and International Development SAMARAJIVA Figure 2. India, 2004–05, wireless-driven growth Source: Telecommunications Regulatory Authority of India connections in 2005–2006 was enabled by the Asia-Paciªc became the world’s largest mobile mar- refarming of frequencies for CDMA 800.6 In this ket, with 560 million connections, overtaking North case, the customer equipment has the form of a America. The Asia-Paciªc market grew at 31% a conventional ªxed telephone and not that of a mo- year in 2003, compared to 13% for North America. bile handset. It can be used anywhere within the Despite this, the number of mobile connections per range of the assigned base station by using a re- 100 people in the Asia-Paciªc was only 16, com- chargeable battery. pared to 52 in Europe and 35 in the Americas.7 This In light of the complexity of the relation between suggests that Asia-Paciªc mobile growth rates will development and communication-knowledge and accelerate even more, as the other two regions nat- the fact that wireless is but one input into the pro- urally slow down, making wireless even more impor- cess, it is not possible to weave a coherent narrative tant than it is today. that is solely focused on wireless and development. In the case of ªnancially constrained groups in What is attempted is the demonstration of the developing Asia, the role of mobile is still small. A growing importance of wireless in the Asia-Paciªc sample survey of persons earning less than USD 100 and the identiªcation of the policy and regulatory per month in 11 locations in India and Sri Lanka re- pre-conditions necessary to realize its full potential. vealed that only a minority owned the phones they used (61% in Sri Lanka and 57% in India), with mo- bile ownership among the less than USD 50 and be- Mobile telephony is the most visible manifestation tween USD 50 and 100 groups being 4% and 14% of the use of wireless technologies. In 2003, the respectively, in India and 22% and 32% respectively, 6. Jayasinghe, Amal (2005, August 14th), Hullo, hullo, Lanka Business Online, http://www.lankabusinessonline.com/ new_full_story.php?subcatcode 20&catname Research_Reports&newscode 2088815379 7. ITU (2004, September), Asia-Paciªc Telecom Indicators, Geneva: International Telecommunication Union, p. 9. Volume 3, Number 2, Winter 2007 59 PRECONDITIONS FOR EFFECTIVE DEPLOYMENT OF WIRELESS TECHNOLOGIES FOR DEVELOPMENT in Sri Lanka (see Figure 3). The greatest reliance was placed on public phones by this group.8 As stated above, wireless is found in all parts of the network and in all sorts of services, not in just the most obvious—that is, mo- bile services.
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