broadband strategies handbook.pdf - Khazar University

lower cost structure in rural areas and faster rollout, since it is easier todeploy a series of cell towers than to connect each household with a physicalwire. With the introduction of 3G and 4G technologies, wireless networksare expected to compete directly with, and be substitutes for, wirelinebroadband within the next decade. In Austria, for example, the telecommunicationsregulator (Rundfunk & Telekom Regulierungs [RTR]) determinedin 2009 that DSL, cable modem, and mobile broadband connections forresidential consumers are substitutes at the retail level. The range of policyoptions and regulatory changes that could be made to improve wirelessbroadband development is set forth below:• Allocate additional spectrum. To support the expected increase in demandfor advanced services requiring faster download speeds and the greateruse of such services, regulators are implementing policies that promotethe most efficient and effective use of spectrum resources, including freeingup spectrum bands that are either unused or underutilized.• Flexible allocations. Another major tool for promoting wireless broadbanddevelopment is for governments to allow flexible use of spectrumso as not to constrain technology or service developments. This will helpproviders to meet the rapidly changing demands of their customers.• Technology neutrality. Technology neutrality refers to the concept thatoperators should be allowed to use whatever technology or equipmentstandard they wish in order to meet market demands. Thus, ratherthan having regulators mandate that a specific technology must beused in a certain band, operators are allowed to choose whatever technologythey wish, subject to technical limitations—to prevent interference,for example.• Service neutrality. With the transition to digital technology and betterprocessing capabilities, advanced systems are now capable of transmittingall kinds of services. Wireless operators can now provide voice,high-speed data services, and video over their networks. Governmentregulators should modify service and licensing terms to allow operatorsto realize the benefits of this flexibility.• Greater use of market mechanisms. The move to market mechanisms canbe seen in two important trends: assigning spectrum to operators usingsome sort of competitive mechanism (for example, auctions) and chargingmarket-based prices for acquiring or using spectrum. Having a competitive,transparent means of assignment can also give service providersgreater access to spectrum. In conjunction with a regime that allows118 Broadband Strategies Handbook