Analysis of WIMAX/BWA Licensing in India: A real option approach

Indian Internet and broadband market has experienced very slow growth and limited penetration till now. The introduction of Broadband Wireless Access (BWA) is expected to aid in increasing the penetration of internet and broadband in India. The report sheds light on the guidelines and procedure used in 4G/BWA spectrum auction and presents comparative analysis of the competing technologies, providing the information about suitability of each technology available. Recently held 4G/ BWA spectrum auction saw enthusiastic participation by the industry and even saw some new entrants in Indian broadband market. Government benefited by Rs, 385bn that it earned as revenue from the auction of the spectrum and projected it as successful auction. However, the question remains if the auctions were efficient and whether they led to creation of value or will it prove to be burden to the telecom operators and will depress their balance sheet for years to come. The report uses both traditional valuation methods such as Discounted Cash Flow as well as Real Option approach to answer such questions. Using DCF analysis, the broadband subscribers have been forecasted to grow from present 13.77mn to 544mn by the end of 2025. The wireless subscribers are forecasted to be 70% of the total broadband subscribers after 5 years of roll out as it will be difficult to replace all wireline subscribers with wireless subscribers in India due to the high cost of wireless broadband and new technology. WiMAX is expected to increase its presence with time and reach 90mn subscribers from meager 0.35mn subscribers by 2025. Using industry wide cost of capital as 12.05%, the Net Present Value has been found Rs 221bn aggregate with an IRR of 17.1%. Using Real option approach, the value of license has been calculated as Rs 437bn which is 13.5% more than the spectrum fees paid by the operators. This mismatch, between the auction value and the correct value that should have been discovered by supply-demand dynamics, can be due to limited participants in BWA spectrum auctions and companies such as TATA and Reliance opting out of the auction process midway as well as uncertainty about acceptance of new technology with Indian subscribers.WiMAX, broadband, 3G spectrum, 4G,broadband wireless access, valuation, licensing, real option

Data Service Efficiency of Mobile Network Operators using Data Envelopment Analysis

The ubiquity of mobile devices such as smartphones, tablets, laptops, and mobile routers drive unprecedented mobile data traffic year after year. However, the actual mean mobile data usage (volume) per subscriber varies significantly between Mobile Network Operators (MNOs) and countries. Understanding these differences is important for both MNO's evolving business models and telecom regulation in general. A potential driver for these differences is MNO efficiency in delivering mobile data services. Where efficiency is measured relative to non-financial inputs (subscribers and spectrum) and output (total data volume). Given this context, this study estimates and analyzes the efficiency of data service delivery (data usage by subscribers) of 94 mobile operators from 28 countries by using the Data Envelopment Analysis (DEA) method. The study demonstrates that many countries have a single highly efficient MNO due to that MNO's effort to gain market share. While in a few other countries all MNOs are high efficiency likely due to country-level initiatives. Furthermore, major economic disparities between countries highly influence country-level efficiency scores. Finally, a case study between Finland and India highlights their similar high-efficiency scores but very dissimilar data service markets

The global information technology report 2014

Executive summary When The Global Information Technology Report (GITR) and the Networked Readiness Index (NRI) were created more than 13 years ago, the attention of decision makers was focused on how to develop strategies that would allow them to benefit from what Time Magazine had described as “the new economy”: a new way of organizing and managing economic activity based on the new opportunities that the Internet provided for businesses. At present, the world is slowly emerging from one of the worst financial and economic crises in decades, and policymakers, business leaders, and civil society are looking into new opportunities that can consolidate growth, generate new employment, and create business opportunities. Information and communication technologies (ICTs) continue to rank high on the list as one of the key sources of new opportunities to foster innovation and boost economic and social prosperity, for both advanced and emerging economies. For more than 13 years, the NRI has provided decision makers with a useful conceptual framework to evaluate the impact of ICTs at a global level and to benchmark the ICT readiness and usage of their economies

Understanding the digital divide: A literature survey and ways forward

The term digital divide was introduced in the mid-1990s and defined as the gap separating those who have access to new forms of information technology from those who do not. The digital divide remains an important public policy debate that encompasses social, economic and political issues. This paper presents a literature review and classification scheme for digital divide research. The review covers journal articles published between 2001 and 2010 in three types of journals: (1) Information technology & information systems, (2) Economics and business & management and (3) Social science. A classification of digital divide literature and a comprehensive list of references are provided. The results show that the digital divide is a multifaceted phenomenon, due to the many dimensions of determinant factors. Recent studies have included socio-economic, institutional and physiological factors in order to gain a greater understanding of the digital divide. Among other findings, they show that technological determinism is not sufficient to explain the emergence of the digital divide. Moreover, several types of technologies were investigated, both from empirical and conceptual standpoints. The Internet is the most commonly studied technology. The divide in access and usage are discussed at the global, social and democratic levels by employing a quantitative method, either a survey or data analysis, as the main method. However, there is less discussion in developing countries and at the level of the organization (i.e. SMEs, the private sector and the public sector). The qualitative research method could be seen as a complementary method to fill the gap in the current research. The choice of policies which have been recommended to the policy maker and national regulatory agency (NRA) are also presented and discussed at the end of this paper. Several initiatives made at the country and regional levels and by international organizations have also attempted to create a combined policy. This may suggest that the combined policy is the current trend among digital divide policies. Therefore, there is a need for future research to examine these determinants through the context of global, social and democratic divides. The results would provide some insight into how diverse people in different areas adopt ICTs. --Digital divide,Literature review,Future research

The state of broadband 2012: achieving digital inclusion for all

With this Report, the Broadband Commission expands awareness and understanding of the importance of broadband networks, services, and applications for generating economic growth and achieving social progress. High-speed affordable broadband connectivity to the Internet is essential to modern society, offering widely recognized economic and social benefits (Annex 1). The Broadband Commission for Digital Development promotes the adoption of broadband-friendly practices and policies for all, so everyone can take advantage of the benefits offered by broadband. With this Report, the Broadband Commission expands awareness and understanding of the importance of broadband networks, services, and applications for generating economic growth and achieving social progress. It has been written collaboratively, drawing on insightful and thought-provoking contributions from our leading array of Commissioners and their organizations, foremost in their fields

Telecommunication Economics

This book constitutes a collaborative and selected documentation of the scientific outcome of the European COST Action IS0605 Econ@Tel "A Telecommunications Economics COST Network" which run from October 2007 to October 2011. Involving experts from around 20 European countries, the goal of Econ@Tel was to develop a strategic research and training network among key people and organizations in order to enhance Europe's competence in the field of telecommunications economics. Reflecting the organization of the COST Action IS0605 Econ@Tel in working groups the following four major research areas are addressed: - evolution and regulation of communication ecosystems; - social and policy implications of communication technologies; - economics and governance of future networks; - future networks management architectures and mechanisms

Customer relationship management with perspective to Indian Mobile Industry and its Statistical Analysis

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