Universal Access- how mobile can bring communications to all
Mobile communication will deliver affordable voice, data and Internet services to more than 5 billion people by 2015 - double the number connected today. The GSM Association (GSMA) believes that the cost of mobile networks and devices will continue to fall, enabling affordable mobile services to be offered to people on very low incomes.
This latest study on Universal Access was commissioned by the GSMA and conducted by Intelecon Research. It examines how universal service funds are currently meeting their objectives and what role mobile plays in delivering universal service and access.
The study's main findings:
- Mobile networks now cover 80% of the world's population, double the level in 2000. This can be attributed, almost exclusively to investment by mobile operators and the liberalization of telecom markets by governments. By 2010, 90% of the world will be covered by mobile networks.
- 32 of the 92 developing countries surveyed have set up universal service funds, which levy contributions from mobile and fixed operators, to subsidize the rollout of telecommunications networks in rural areas.
- To date, 15 of the 32 universal service funds have collected more than US$6 billion from the telecommunications industry, of which US$2 billion has come from the mobile industry.
- Only 27% (US$1.62 billion) of the US$6 billion that has been collected to date has been redistributed to the telecommunications industry to aid in network expansion. The remaining 73% remains unallocated and unspent.
- Universal service fund disbursements have had little impact on improving market penetration, primarily because 93% of the US$1.62 billion has been spent on extending fixed-line networks, which are relatively expensive compared to mobiles
Recommendations:
- Governments should regard market forces as the primary means to extend access and connections to mobile communications. Universal service funds should play a secondary, 'last resort' role in the provision of access to communications.
- The US$4.4 billion that has been accrued by universal service funds and has not yet been disbursed should be invested in mobile coverage rollout. This should be complimented by the reduction of other barriers to mobile usage, such as tax, as a matter of priority.
- Universal service funds should only be used as a short to medium term policy tool, which should be phased out over time.
- Universal service funds should be spent on the lowest cost access technology, typically mobile networks, which have been demonstrated to be the most efficient way to extend access to telecommunications.
- Governments should make public their policies towards universal access, ensure transparency and review progress regularly.
Download the report
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