Research Reveals Flawed Analysis misinforming world delegations at ITU World Radiocommunication Conference
GENEVA - Thursday, November 5th 2015 [ME NewsWire]
(BUSINESS
WIRE)-- As national administrations from across the world prepare to
make critical decisions this month regarding global communications
spectrum allocations, a newly-released report shows that studies
suggesting enormous benefits of satellite spectrum for terrestrial
wireless contain major flaws in logic, calculation and methodology.
The
findings of a study done by economic consultants VVA show that in
highlighting the benefits of the so-called “C-band” for mobile
terrestrial, cost-benefit studies done for the mobile terrestrial sector
completely ignore major negative impacts on satellite communications’
user groups throughout the world. The findings come just before the
question of the C-band will be considered during the International
Telecommunication Union (ITU) World Radiocommunication Conference (WRC),
being held in Geneva through November 2015.
Terrestrial
mobile stakeholders commissioned studies from Frontier Economics and
Plum to highlight the positive economic impact of the C-band for their
sector. A closer look at their methodology by VVA shows that these
studies ignore the cost of disruption or loss of services for sectors
that rely on them today, noting that for some applications, mobile
terrestrial cannot provide any replacement. Furthermore they use
incomparable benchmarks; follow an incorrect approach to calculations;
overlook alternative bands and technologies; rely on unproven technical
concepts and use a multiplier effect of their errors in order to
exaggerate the economic benefits.
Monica
Pesce, Managing Director of VVA commented, “Any economic analysis must
take full and proper consideration of the costs of and benefits for
existing players and users and new players and users. The studies we
have looked at are selective in their approach, drawing on the most
favourable elements necessary to conclude a significant, positive
economic benefit for the terrestrial mobile sector, even if in reality,
they may be far lower when properly balanced against satellite user
interests.”
In
a joint statement, Aarti Holla and David Hartshorn, Secretary Generals
of ESOA and GVF, non-profit associations representing the international
satellite communications sector noted that “Millions of people
throughout the world depend on satellite services delivered via the
C-band, and it is imperative that the decisions to be made at WRC are
based on the most accurate information currently available. The C-band
is used to support a wide range of services, including emergency
communications, peacekeeping, distance learning, live broadcasting,
tele-medicine, e-government and other vital applications. Taking away
and re-allocating the spectrum required to support those services based
on inaccurate terrestrial wireless analyses would have a severe impact
on consumers, enterprises and governments throughout the world.”
Background - Informing the Global Debate - VVA Study Findings
Research
conducted by VVA, a Brussels-based consultancy, which discovered that
claims made recently by Plum and Frontier Economics are based on key
methodological flaws, including:
The impact on existing C-band users and the stakeholders they serve is ignored;
Economic benefits are overestimated by using auctions on 2.6 GHz - a
band with different characteristics - as a benchmark for spectrum value
rather 3.5 GHz auction values;
Country specific factors, obtained by using an inaccurate calculation
approach, further inflate spectrum value for many countries used as case
studies. Wrong quantifications are then extrapolated for considered
regions. These two errors generate a multiplier effect that leads to
further overestimating calculated benefits;
Efficiency gains deriving from the usage of alternative methods to
provide capacity are expressed qualitatively but are not quantified.
Alternative options to C-band for spectrum usage are ignored.
For more information about this issue www.satellite-spectrum-initiative.com
ESOA
is a Brussels-based trade association whose membership brings together
all European, Middle-East and African satellite operators and supporting
members including service providers, manufacturers and launch service
providers. Set up in 2002, the association’s mission is to provide a
unified voice and a platform for collaboration for satellite operators
to ensure the continued success of the sector and to broaden the
opportunities for policymakers to leverage satellite services to fulfill
their objectives. (www.esoa.net)
GVF
is the non-profit association of the global satellite communications
sector. Headquartered in London, and with 15 affiliate offices
throughout the world, the organization includes the leading satellite
communications system and service providers based worldwide. The
organization works with public and private sector to heighten awareness
of the commercial, technological and social advantages of satellite
communications (www.gvf.org)
VVA
Brussels is the European economic consultancy with an international
team within VVA Group. VVA was founded in 1992 by two Professors from
Bocconi University, which works across a variety of fields, from
business consulting and market research to transfer pricing to economic
and market studies on EU policy. (www.vva.it/en)
View this news release online at: http://www.businesswire.com/news/home/20151105005803/en
Contacts
EMEA Satellite Operators Association (ESOA)
Aarti Holla Maini
Tel: +32(2) 550 3575
sg@esoa.net
www.esoa.net
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