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From global access to universal access

A couple of weeks ago, we took a look over the horizon at opportunities for overhauling universal service delivery to harness the dynamic forces of low earth orbit satellite innovation and competition. A key theme was that LEO satellites can go a long way to solving the geographic reach challenge, and in so focus the spotlight on ongoing cost challenges, especially for those on low incomes.

This theme was taken up by many at this week’s Australasia Satellite Forum, where multiple Pacific Island participants talked about the challenges where:

  • customers with high needs and high willingness to pay move to a global commercial access network
  • these customers then no longer contribute to the funding of local networks which continue to be responsible for serving those with a lower incomes and a lesser ability to pay for high speed / capacity services.

It’s like asking an airline to fly all-economy planes. There’s a reason few airlines do it. And those that do, both deliver an inferior service and are constantly pushing add-ons. Not ideal.

In a country like Australia, which offers a commercially viable market that is reasonably attractive to a global commercial network provider, this might be resolved through reforms to universal service funding mechanisms like the Telecommunications Industry Levy and Regional Broadband Subsidy Scheme. But both in Australia and in economies that have less pull, there are three underlying dynamics that are likely to play a role in shaping the future of universal service delivery:

  1. Harmonisation of regulation: Regulators and policy makers should appreciate that the advent of the leo sat age is the first time we are seeing major global access networks, not restricted to a national geography. An increased focus on harmonising regional approaches to universal service funding and service delivery will help to harness the efficiencies of such transnational supply while encouraging active participation from the global satellite operators.
  2. Re-organising the supply chain: leo sats will be used for direct-to-device communications (eventually), traditional fixed location access communications and as backhaul in mobile networks. The last option and similar harnessing of satellite networks as connectivity links in cloud computing and private network access will allow local and national access providers to leverage existing access network investments to continue offering some lower priced universal network offerings.
  3. Partnerships to support the least served: it remains to be seen whether industry will seize the agenda and seek to shape the future of universal services, or whether government will set the agenda. Underserved consumers might most benefit from direct subsidies to choose from amongst a variety of service providers, or by the government providing a fixed subsidy to whichever provider promises to offer an acceptably low priced service to the same set of consumers, or by the government funding an intermediary who will offer low-priced services while being responsible for managing connectivity inputs from multiple operators and managing compliance in matters like spectrum regulation, telecoms operator licensing, industry levies and tax, and consumer protection. In any of these models, governments should keep in mind the force of telecommunications as a force multiplier in delivering social services and empowering economic participation – the funding pool in any configuration is not just about delivering telecoms – it is also about funding healthcare, education, vocational training, access to banking services, and the list goes on.

As with any meaningful innovation, leo sats hold new promises and create different challenges to the ones that we’ve (imperfectly) solved to date. The outcome could be better overall for those who are least well served today. Achieving that will require well managed policy that thoughtfully responds to the differences between this new technology and the ones that have come before it.