• Telecoms

    The competition vs investments debate jeopardises EU leadership opportunities in 5G

    EU leadership on 5G will depend on the ability of policy makers to think out-of-the-box, and beyond old debates. Instead, they should keep focusing on universal, technology neutral and future proof principles. On 26th January, the industry and research c [read more]
    byFederico Poggi | 14/Feb/20173 min read
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    EU leadership on 5G will depend on the ability of policy makers to think out-of-the-box, and beyond old debates. Instead, they should keep focusing on universal, technology neutral and future proof principles.

    On 26th January, the industry and research committee (ITRE) of the European Parliament organised the first hearing on the future of electronic communications following the legislative proposals tabled by the European Commission in September last year.

    Listening to the discussion it emerged clearly that the debate is increasingly heating up and that, at least when it comes to the future of pro-competitive access measures, two clear opposite camps are shaping up: on one side, consumers, alternative telecom operators and regulators (BEREC) that ask to maintain the pro-competitive framework that guaranteed high  broadband performances and low prices in most EU countries for the last 15 years; and, on the other side, dominant telcos (ETNO and GSMA) and some financial institutions such as HSBC loudly advocating for a deregulatory agenda that would grant higher profits to few selected players and for their investors.

    Connected to this policy fight there is a much more strategic ongoing battle, the one on the future of 5G and on the way to ensure EU leadership in the development of this emerging technology. How 5G will finally develop and what will actually deliver is not consensual yet.

    A recent study recently published by the European Parliament precisely on this topic raises several concerns and affirms that established telcos are trying to steer current and future 5G policies towards a precise scenario, i.e. 5G as the new generation of mobile communications based on exclusive spectrum licenses (just like 3G and 4G). In this model/scenario only few players share the consumer market for faster and more reliable mobile communications.

    But 5G could mean much more than this. The goal that Europe could set for itself is that 5G will finally enable full convergence between fixed and mobile data communication services. On top of this seamless connectivity any provider should be able to create and offer new services, that is the emergence of totally new and innovative platform.

    In order to do this, it is essential that policy makers think out-of-the-box in an open manner and that, with this view, they refrain from defining rules today that could set development of 5G on an old path. Policy makers should keep focused on universal, technology neutral and future proof principles.

    In this respect competition has played in the past and will play in the future as enabler of innovation and of investments. A pro-competitive framework in terms of access to spectrum resources combined with well-studied regime for spectrum sharing where possible will be crucial to give to Europe its much desired leadership in 5G.

     

    Picture credit: Andrew J. Russell

     

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  • Startup Economy

    Connected cars, (more) developers wanted

    As the Internet of Things takes off the market for connected car will rapidly expand. GSMA estimates that every car will have some type of connection by 2025. This means that more and more developers are poised to enter the automotive space. The demand f [read more]
    bySophie Mestchersky | 15/Jan/20155 min read
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    As the Internet of Things takes off the market for connected car will rapidly expand. GSMA estimates that every car will have some type of connection by 2025. This means that more and more developers are poised to enter the automotive space.

    The demand for constant connectivity spreads to many industry sectors and the automotive sector is no exception to this trend. Our cars have become central hub not just for transportation, but also for communication.

    According to Alec Saunders, a technology ecosystem, platform and developer relations leader, “people want uninterrupted connectivity and intelligent personalisation, and this experience is now moving into a new medium – the car.” Developers ought to be on the cutting edge of this rapidly growing market, and car manufacturers have eagerly started recruiting.

    As consumer expectations evolve, the market for connected cars will rapidly expand. A 2013 forecast by GSMA found every car will have some type of connection by 2025. Furthermore, the market for technology to connect cars was an estimated $18 billion in 2012 and is expected to increase three times that number in the next four years worldwide.

    Our research shows that more than just expectations are changing.

    [Tweet “Road safety will also soon become a factor in connected car development.”]

    Think about the risks we take during all manual tasks, such as reaching for a phone, dialing, and texting while driving. As vehicles become more connected, standardising interfaces and reducing the amount of time needed to take a driver’s eyes off the road becomes important.

    Liz Kerton, the Executive Director of the Autotech Council, says: “A car that drives itself is 90% software and 10% hardware. We’re about 70% software now, so you could say there are many opportunities still out there.” Liz’s aim is to connect car manufacturers with entrepreneurs, venture capitalists, and suppliers.

    Nowadays, drivers can unlock their cars, check the status of their batteries, find where they parked, and remotely activate the climate control system. With more and more developers entering the automotive space, this is just the beginning.

    Learn more in our white paper, “Automotive as a Microcosm of IoT.

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  • Telecoms

    EU members’ short-sighted approach to spectrum coordination

    EU governments look pretty keen to scrap plans for more coordination in spectrum licensing across the continent. However, the move may jeopardize future efforts to improve Europe's mobile networks, with negative impacts on consumers and businesses alike. [read more]
    byFrancesco Molica | 18/Dec/20144 min read
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    EU governments look pretty keen to scrap plans for more coordination in spectrum licensing across the continent. However, the move may jeopardize future efforts to improve Europe’s mobile networks, with negative impacts on consumers and businesses alike.

    It is unclear whether EU member states are going to broker a deal on the Telecoms Single Market package anytime soon. Differences abound on the details of Net Neutrality provisions and plans to end roaming fees featured in the proposed bill.

    However, what’s more certain at this stage is that most governments are keen to get away with the package proposals pushing for more coordination in spectrum licensing for wireless broadband.

    If confirmed, the move would strike a fatal blow to the very spirit of the legislation.

    For in a world increasingly dominated by mobile communications there will be no digital single market without a higher degree of harmonization in spectrum policies.

    The expected gains will be paramount to speed up the roll out of 4G networks, bringing huge benefits to consumers and businesses alike. The same goes for the introduction of more flexibility and market-led mechanisms in spectrum usage provided for by the legislative package.

    Speaking at a recent GSMA event, the EU new digital single market chief Andrus Ansip urged governments to make up their minds rightfully pointing out that more cooperation on spectrum assignment “is not a technical issue” but would translate into cheaper and higher quality connectivity, as well as new services.

    MEPs should also step up their pressure by threatening to block any incoming inter-institutional negotiations on the TSM proposal if member states water down or drop its provisions on spectrum usage. It would be a logical step since the European Parliament in April passed an amended draft of the bill that reinforces its original plans on spectrum harmonization.

    The truth here is that auctions for frequencies have long provided an easy source of revenue for governments. This explains their reluctance, also welcome by national regulators, to relinquish powers to a more centralized mechanism of the sort contemplated by TSM package. A single market for wireless communications would be however a far more lucrative bargain for everyone in the long run.

    Although the European Commission has pledged to work out new legislation on ‘radiospectrum management’, it would be foolish to give up on the rules put forward by former EU digital chief Neelie Kroes under the scope of the TSM package. In fact any future bill should build up upon them, impulsing greater harmonization and – why not? – even daring to break the great taboo of pan-European auctions.

    At this stage a fresh legislative initiative would take a while to be drafted and presented, not to mention adopted. Do not expect anything like that before 2016. Meanwhile, the gap between Europe and other regions (such as the US) in LTE deployments, network speeds, total mobile usage or the rollout of advanced services may get bigger to the detriment of the continent’s economy.

    To be sure, a lot is at stake here. Up to the new Commission and the European Parliament to convey this message to their national counterparts.

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