Regulatory roadblocks to mobile broadband- How the World Bank can help

Harriet E. Berg, VP and Head of Governmental Relations,

Telenor Group

Sweden

Telenor Sweden

Norway

Telenor Mobil

Denmark

Sonofon

Hungary

Pannon

Montenegro

Promonte

Serbia

Telenor Serbia

Bangladesh

Grameenphone

Thailand

DTAC

Pakistan

Telenor Pakistan

Malaysia

DiGiRussia

VimpelCom *

Ukraine

Kyivstar

Subscribers on 100% basis, including VimpelCom

* 33.6 % economic ownership in VimpelCom

Telenor’s World | 12 markets, entering India

Mobile broadband | Strong customer growth

0

0,4

0,8

1,2

1,6

2

2006 2007 2008

0

0,1

0,2

0,3

0,4

2007 Q1 2008 Q3 2008

Fixed Broadband CustomersNorway, Sweden & Denmark

Mobile Broadband CustomersNorway, Sweden, Denmark,

Hungary, Serbia, Montenegro

The broadband potential is huge

Provide high quality access

Make internet experience easy

Develop internet services

Tapping the potential | Becoming a wireless ISP…

Driving market development | An example from Bangladesh

VoiceFrom village phone concept

To 18 million mobile customers

DataBringing Internet to communities based on mobile Internet

Sh

are

con

cep

tsIn

div

idu

al co

nce

pts

Opportunities | Basic financial services to the underbanked

Service scope

TimeTime

Bill payment

Domestic transfer

International transfer

Savings

Loans?

Insurance?

Example from BillPay Bangladesh | Impressive Growth

Subscribers - thousand Transactions - thousand

815

28

46

65

Q1‘07

Q2‘07

Q3‘07

Q4‘07

Q1‘08

1221

42

65

100

Q1‘07

Q2‘07

Q3‘07

Q4‘07

Q1‘08

+85%

+85%

+65%

+40%

+75%

+100%

+55%

+55%

However, still in its infancy..

..and facing challenges

Regulatory issues becoming a bottleneck..

Spectrum requirements | New needs

Lack of level playing field | In many areas

No regulatory regime facilitating market for transmission infrastructure

USO regime facilitating specific technologies

Obligations put on ISPs for illegal use of network by customers

Regulatory hindrances for mobile operators to offer new services

Little transparency and predictability

Licensing | A high number of licenses are needed....

Sector specific taxation | Reducing uptake of new services

Financial services | Regulatory barriers

Obtaining the necessary licenses:

• Bank

• Loan

• International remittance

• E-wallet

Our recommendations

Release spectrum

Ensure level playing field

Secure predictability and transparency

Avoid sector specific taxation

It’s all about politics..

The role of the World Bank

Build belief in convergence and the role of mobile technologies in speeding up the roll-out of mobile broadband

Advocate for liberalization, predictability, transparency and a level playing field

1

2

Active policy dialogue GICT – private sector on relevant policy issues, locally and at global level

3

4 Focus on the basic issues, and engage in dialogue on new services