The risks associated with Wholesale Open Access Networks
Wholesale Open Access Networks (single wholesale networks) are perhaps not the panacea that is claimed.
The goals are often ambitious when governments propose establishing a single wholesale network (SWN) or a wholesale open access network (WOAN) instead of relying upon competing mobile networks to deliver mobile broadband services in their country. Citizens are promised better coverage, more competition, and as a result, more affordable prices. However, research shows that of five countries originally considering this option, only one, Rwanda, has actually rolled out a network.
The lessons from these five countries should serve as examples to other countries contemplating this route. They highlight the real challenges of SWNs and WOANs and are a wakeup call to those regulators that look to them as an alternative to tried-and-true approaches to network deployment.
A better way forward is for governments, regulators and mobile operators to collaborate on long-term solutions. The basic building blocks which can help make this happen are:
- Cost effective access to low frequency spectrum
- Support for spectrum re-farming
- Support for all forms of voluntary infrastructure sharing
- Elimination of sector specific taxation on operators, vendors and consumers
- Non-discriminatory access to public infrastructure
- Support for streamlined planning and administrative processes
- Relaxation of Quality of Service requirements
- Context appropriate competition policy, especially concerning market structure
- Support for multi-sided business models such as zero rating and sponsored data