Evolution of Technological Capabilities: A study of Indian products based Telecom start-up firms

New technology based start-ups play a very important role in developing the economy of a country. However, product based B2B start-ups in India are rare and existing ones have to undergo several challenges in commercializing. Present study explores the evolution of technological capabilities that enable commercialization among such early stage start-ups by adopting a multiple case based (four independent start-ups) inductive methodology with Indian telecom start-ups as the context. We have identified architectural design, algorithmic implementation and product adaptation as components of technological capability of such start-ups. We explore the link between knowledge acquisition, telecom specific knowledge and capability evolution in present work in a regulated and knowledge intensive context. Finally, we put forth a three stage framework mapping the evolution of technological capabilities among telecom start-ups, as well as identify regulatory bodies, standard making bodies and social network as facilitators in the capability evolution process.

The role of intellectual property rights in information and communication technologies

The paper starts by recapitulating the basic arguments provided by economic theory to explain the existence of the patent system. The paper then concentrates on the three important ICT industries viz., telecommunication equipment, computer hardware and semiconductor industries. The issues covered in the discussion on these industries are the technological characteristics; market structure and technology transfer experiences of selected developing countries. Even though there are some differences in these industries, what come out clearly are some similarities. These similarities pertain to concentration by firm as well as country; rapid technological changes; existence of scale economies; rising minimum efficient levels of production; entry barriers to the industries both financial and technological etc. Bresnahan, Stern and Trajtenbert [1997] show that in the computer PC market brand name and being on technological frontier help the firm in appropriating inventions. Taylor and Silberston [1973] observe that in electronics while patents by themselves are not important method of appropriation, it encourages firms to accumulate patents so that they can have an advantage in cross-licensing agreements. This finding was reiterated by Hall and Ham [1999] for semiconductor industry. They name this phenomenon "patent portfolio race". The paper briefly touches upon the issues pertaining to Internet and the problems it raises for copyright; protection of computer software and the discussion on a sui generis protection for databases. The paper concludes that the role of IPRs in ICT seems to be marginal and as prices are falling it does not seem to be attracting negative attention.Intellectual property rights, patents, information and communication technologies

Spectrum Refarming in Sri Lanka: Lessons for Policy Makers and Regulators

The commercial potential of wireless applications has brought spectrum policies to the forefront of regulatory arena. In the context of rapidly increasing demands on spectrum, regulators have to adopt refarming so as to be able to provide spectrum for new services. A variety of models have been chosen by different countries. This paper documents the approach and process adopted by Telecom Regulatory Commission, Sri Lanka (TRCSL) for refarming of spectrum and draws lessons for policy makers and regulators. Sri Lanka was among the early countries in Asia not only to introduce telecom reforms, but also commercial wireless services (mobile and WLL). It may appear that TRCSL’s quick introduction of wireless services gave a head start to Sri Lanka, but the earlier ad-hoc processes led to a situation where spectrum refarming had to be done very quickly subsequently, imposing additional costs on operators and regulators. While realignment was triggered by the need for mobile operators to adopt standard technology, this opportunity could have been strategically used by TRCSL to review spectrum allocations across all the bands, thus allowing faster deployment of digital services. The open consultation process adopted by TRCSL had reduced the risk of “regulatory capture” and it was able to leverage the refarming initiative to bring equity in quantum of spectrum allocated between incumbent and new operators. The study highlights that for rapid proliferation of wireless technologies, a forward looking approach is required not only for managing spectrum but also removal of restrictions on handsets, whose price is a critical aspect for penetration in a developing country context.

The Role of Intellectual Property Rights in Information and Communication Technologies

The paper starts by recapitulating the basic arguments provided by economic theory to explain the existence of the patent system. The paper then concentrates on the three important ICT industries viz., telecommunication equipment, computer hardware and semiconductor industries. The issues covered in the discussion on these industries are the technological characteristics; market structure and technology transfer experiences of selected developing countries. Even though there are some differences in these industries, what come out clearly are some similarities. These similarities pertain to concentration by firm as well as country; rapid technological changes; existence of scale economies; rising minimum efficient levels of production; entry barriers to the industries both financial and technological etc. Bresnahan, Stern and Trajtenbert [1997] show that in the computer PC market brand name and being on technological frontier help the firm in appropriating inventions. Taylor and Silberston [1973] observe that in electronics while patents by themselves are not important method of appropriation, it encourages firms to accumulate patents so that they can have an advantage in cross-licensing agreements. This finding was reiterated by Hall and Ham [1999] for semiconductor industry. They name this phenomenon patent portfolio race. The paper briefly touches upon the issues pertaining to Internet and the problems it raises for copyright; protection of computer software and the discussion on a sui generis protection for databases. The paper concludes that the role of IPRs in ICT seems to be marginal and as prices are falling it does not seem to be attracting negative attention.intellectual property rights, Patents, information and communication technologies.

Innovative Asia: Advancing the Knowledge-Based Economy - Highlights of the Forthcoming ADB Study Report

[Excerpt] The development of knowledge-based economies (KBEs) is both an imperative and an opportunity for developing Asia. It is an imperative to sustain high rates of growth in the future and an opportunity whereby emerging economies can draw from beneficial trending developments that may allow them to move faster to advance in global value chains and in position in world markets. Over the last quarter of a century, driven mostly by cheap labor, developing countries in Asia have seen unprecedented growth rates and contributions to the global economy. Sustaining Asia’s growth trajectory, however, requires developing economies to seek different approaches to economic growth and progress, especially if they aspire to move from the middle-income to the high-income level. KBE is an important platform that can enable them to sustain growth and even accelerate it. It is time for Asia to consolidate and accelerate its pace of growth. Asia is positioned in a unique moment in history with many advantages that can serve as a boost: to name a couple, an expanding middle of the pyramid—Asia is likely to hold 50% of the global middle class and 40% of the global consumer market by 2020; and the growing importance of intra-regional trade within Asia, increasing from 54% in 2001 to 58% in 2011. Many developing economies are well placed to assimilate frontier technologies into their manufacturing environment

Valuation of 3G spectrum license in India: A real option approach

India is about to enter a new technological phase as far as mobile technology is concerned. After almost a decade of existence, Third Generation (3G) mobile technology will be rolled out in India. The licenses for the same were auctioned in April – May 2010 and 3G licenses were allocated to the winners in September 2010. Nine private telecom operators entered the bidding for the license and eventually seven won the licenses. The bidding was intense and eventually the aggregate fees of the license as received by the government were almost twice the expected amount. In the backdrop of experience of 3G auction winners in UK and Germany who paid huge sums to acquire the 3G licenses and later lost their market capitalization as the markets perceived that the price paid for the license was more than the actual value of the license, analysts in India were concerned if the operators had paid too much for the licenses. In this report aggregate value of the 3G licenses is calculated using both traditional discounted cash flow approach and real options approach. We find that the rollout of 3G services gives an internal rate of return of 14.2%over the life of the license. If we assume an internal rate of return of 15% for the telecom operators then the aggregate license value comes out to be INR 594 Billion which is 12% lower than what the operators have paid to acquire the license. We also found out that the value of the license as calculated from the real options methodology is INR 798 Billion which is 17.8% higher than the aggregate value paid by the operators. Hence we see that DCF valuation suggests that the licenses were overvalued while Real Options methodology suggests that the licenses were undervalued. The report discusses the reasons for differences between real option valuation and DCF valuation of the license, the possible challenges that the 3Goperators might face in the short to long term and what are the key enablers for the growth of3G services if they want to extract the maximum mileage out of the 3G technology. The report recommends that in future while allocating telecom licenses or licenses in sectors where high and irreversible investment is required and there is a scope for the licensees to invest in phases or in modules, the government should consider real options methodology for setting the price of the license., or the base price of the licenses in case the government decides to follow an auction methodology3G spectrum, mobile technology, valuation, real options, DCF

Mobile Broadband Possibilities considering the Arrival of IEEE 802.16m & LTE with an Emphasis on South Asia

This paper intends to look deeper into finding an ideal mobile broadband solution. Special stress has been put in the South Asian region through some comparative analysis. Proving their competency in numerous aspects, WiMAX and LTE already have already made a strong position in telecommunication industry. Both WiMAX and LTE are 4G technologies designed to move data rather than voice having IP networks based on OFDM technology. So, they aren't like typical technological rivals as of GSM and CDMA. But still a gesture of hostility seems to outburst long before the stable commercial launch of LTE. In this paper various aspects of WiMAX and LTE for deployment have been analyzed. Again, we tried to make every possible consideration with respect to south Asia i.e. how mass people of this region may be benefited. As a result, it might be regarded as a good source in case of making major BWA deployment decisions in this region. Besides these, it also opens the path for further research and in depth thinking in this issue.Comment: IEEE Publication format, ISSN 1947 5500, http://sites.google.com/site/ijcsis

Economic barriers to development : cost of access to internet infrastructure

The Internet is increasingly viewed as an "indispensable" resource for general development and economic growth (UNDP 1999). Its adoption by governments, organizations and individuals has resulted in the shrinking of spatial and temporal distances between different regions of the world, and has greatly facilitated the "free" and quick exchange of information. Such constrictions of time and space impact upon social and economic interactions at all levels of society. Furthermore, ramifications of this impact are felt by a society, group or individual irrespective of whether or not they use the Internet. The ability to access the Internet, and in particular the costs associated with such access, are therefore important points of consideration. Not only do these costs contribute to the disproportional spread of the Internet across the world's population; they also potentially contribute to uneven patterns of development within, and between countries

Research and action agenda for a national broadband initiative in India

Broadband has found to have substantial impact on the economic growth of various nations. Recognizing the positive impact of broadband, several countries have gone ahead with their respective broadband plans, which, at times, include requisite fiscal stimulus. In this paper we have tried to look into several of these international examples and have tried to put forth the challenges and opportunities that exist in a fast developing country like India. Based on these experiences, observations and analysis, this paper tries to bring forth recommendations towards a National Broadband Policy for India and suggests the objectives and structure of the same - thus setting a research and policy agenda for the nation. The findings of this paper may also provide necessary inputs to policy makers of such developing nations to formulate a similar broadband policy and management organization for them. --