Spectrum and the Digital Divide
Mobile has a critical role to play in improving health, wealth, education and social mobility and bridging the digital divide between the developed world and the developing world.
Just as the promotion of open, competitive market conditions is fundamental to extending the benefits of mobile communications to all, so is the allocation of sufficient, appropriate spectrum.
Importance of allocation
The digital dividend represents the best chance that society has for the allocation of harmonised spectrum that can be used to bridge the digital divide.
- The allocation of additional UHF spectrum will support the provision of better coverage and more capacity with better economics
- It will allow mobile operators to more efficiently reuse their existing 2G base stations.
- With the right amount and type of spectrum (UHF) being made available in a timely way, economies of scale and good RF performance in handsets could allow mobile broadband to overtake fixed by the year 2012.
Promoting competition is also an important consideration, and sufficient spectrum should be found to allow for more than one operator in these UHF bands.
KEY FACTS
- There are more mobile than fixed users worldwide
- Mobile promotes competition, and allows many more citizens access to voice (over 3.2 billion worldwide)
- Studies show that a 10% Increase in mobile penetration gives a 0.6% boost to GDP growth in developing markets (source London Business School)
- Mobile economic benefit can approach 8% GDP (Philippines – source McKinsey)
- Once price and data rates approach those offered by ADSL, there is exponential demand growth in developed fixed markets.
