Worldwide Telecom Regulatory Body Should Consider Charging Spectrum Fee Linked With User ARPU

Worldwide Telecom Regulatory

We all are aware that Spectrum is one of the most precious assets of any country and regulatory body faces uphill task to manage the balance within different segment of Industry and most importantly defence sector.

We are also well aware that the auction of 3G spectrum in Europe triggered Telecom initiated global recession in 2001 to 2004 wherein many Telecom service providers put in multi billion $ bet in auction with a view that data centric products and services will fly off without any problem. Unfortunately, the limitation of 3G supported device, concern around device battery, lack of coverage delayed the maturity time from 5 years to 10 years. On a contrary,Japan, South Korea, USA, and China succeeded in adopting it and user responded back with higher adoption.

Given the successful adoption of Technology and growth, many countries only adopt the procedure without digging down deep to understand geo political condition. None of the Telecom Networks run by any service providers cannot be successful without the maturity of ecosystem which is combination of services, platform and Applications as it is the building blocks of Telecom service provider revenue stream other than voice services.

For Example, China government control Telecom services through three entity and ensure that Telecom service providers are supported in all way. That is one of the reason that the implementation of home grown 3G and 4G standard being adopted by even global equipment supplier to ensure that they capture most lucrative market.

If we look at the APRU both on Voice and Data, I want to keep it to abstract level and want to mention Japan, USA, South Korea, China, Germany, Switzerland, UK as some of the countries where ARPU is generating high APRU on both voice and data front. One of the major reason of the same is the voice an data package bundled with device which help user to shell out minimum to acquire data centric service. While package gets over and user device gets unlocked by the Telecom service provider; user understand the true value of offered services and subscription success rate achieve higher percentage.

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