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Spectrum prices hit consumers in developing markets

Better spectrum pricing policies are needed in developing countries to improve the economic and social welfare of the billions of people that remain unconnected to mobile broadband services, according to a new report.

The ‘Spectrum Pricing in Developing Countries’ report released by the GSMA today at the Mobile 360 – Africa conference in Kigali. The study reveals that spectrum prices in developing countries are, on average, more than three times higher than in developed countries, when income is taken into account. This high spectrum pricing is a major roadblock to increasing mobile penetration. 

Authored by GSMA Intelligence, the study also found that governments are playing an active role in increasing spectrum prices to maximise state revenues from spectrum licensing. High spectrum prices are linked to countries with high levels of sovereign debt, and alarmingly average reserve prices in spectrum auctions are more than five times higher in developing countries than in developed, once income is accounted for. The report also identifies a link between high spectrum prices and poorer coverage, as well as more expensive and lower quality mobile broadband services, all of which hinder the take-up of services by consumers. 

“Connecting everyone becomes impossible without better policy decisions on spectrum,” said Brett Tarnutzer, Head of Spectrum, GSMA. “For far too long, the success of spectrum auctions has been judged on how much revenue can be raised rather than the economic and social benefits of connecting people. Spectrum policies that inflate prices and focus on short-term gains are incompatible with our shared goals of delivering better and more affordable mobile broadband services. These pricing policies will only limit the growth of the digital economy and make it harder to eradicate poverty, deliver better healthcare and education, and achieve financial inclusion and gender equality.”

The GSMA study assessed over 1,000 spectrum assignments across 102 countries (including 60 developing and 42 developed countries) from 2010 through 2017, making it the largest-ever analysis into spectrum pricing in developing countries, as well as the drivers and their potential impacts of spectrum pricing on consumers. Among the countries included in the analysis are Algeria, Bangladesh, Brazil, Colombia, Egypt, Ghana, India, Jordan, Mexico, Myanmar and Thailand – all markets where spectrum licensing is a priority.

Setting high final prices administratively or setting high auction starting prices (e.g. reserve prices), artificially limiting the amount of licensed spectrum available, not sharing a clear spectrum roadmap, and setting poor auction rules are some of the policy decisions highlighted in the report that are driving high spectrum prices in developing countries.

GSMA Intelligence Releases Latest Mobile Connectivity Index
In related news, GSMA Intelligence today launched its latest Mobile Connectivity Index, which measures the performance of 163 countries (representing 99 per cent of the world’s population) against key enablers of mobile internet adoption. The Index highlights recent progress made on widening access to the mobile internet and explores key roadblocks to adoption, including spectrum policy.

At the end of 2017, 3.3 billion people (or 44 per cent of the global population) were connected to the mobile internet, representing an increase of almost 300 million compared to the previous year. That still leaves more than 4 billion people offline and unable to realise the social and economic benefits that the mobile internet enables. The majority of people that remain unconnected – 3.9 billion – live in developing countries. 

Mobile broadband networks still do not cover 1 billion people globally, and approximately 3 billion people who live within the footprint of a network are not currently accessing mobile internet services. In low-income countries, around two thirds of rural populations are not covered by 3G networks. The Mobile Connectivity Index highlights the importance of factors such as the affordability and quality of mobile broadband services, and network investment in connecting people, both of which can be impacted by high spectrum prices.

“If mobile operators don’t get affordable and predictable access to spectrum, it will be consumers who will suffer the most,” said Pau Castells, Director of Economic Analysis at GSMA Intelligence. “Developing countries have the opportunity to catch up with the developed on mobile adoption; however the investment case in some of these markets is being put at risk. Operators cannot keep paying significantly more for spectrum when consumer incomes and expected profits are much lower in these markets. This is making network investment challenging at a time when policies should encourage the development of the mobile sector to maximise the benefits it can bring to everyone.”

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What’s left after the machines take over?

KIERAN FROST, research manager for software in sub-Saharan Africa for International Data Corporation, discusses the AI’s impact on the workforce.

One of the questions that we at the International Data Corporation are asked is what impact technologies like Artificial Intelligence (AI) will have on jobs. Where are there likely to be job opportunities in the future? Which jobs (or job functions) are most ripe for automation? What sectors are likely to be impacted first? The problem with these questions is that they misunderstand the size of the barriers in the way of system-wide automation: the question isn’t only about what’s technically feasible. It’s just as much a question of what’s legally, ethically, financially and politically possible.

That said, there are some guidelines that can be put in place. An obvious career path exists in being on the ‘other side of the code’, as it were – being the one who writes the code, who trains the machine, who cleans the data. But no serious commentator can leave the discussion there – too many people are simply not able to or have the desire to code. Put another way: where do the legal, financial, ethical, political and technical constraints on AI leave the most opportunity?

Firstly, AI (driven by machine learning techniques) is getting better at accomplishing a whole range of things – from recognising (and even creating) images, to processing and communicating natural language, completing forms and automating processes, fighting parking tickets, being better than the best Dota 2 players in the world and aiding in diagnosing diseases. Machines are exceptionally good at completing tasks in a repeatable manner, given enough data and/or enough training. Adding more tasks to the process, or attempting system-wide automation, requires more data and more training. This creates two constraints on the ability of machines to perform work:

  1. machine learning requires large amounts of (quality) data and;
  2. training machines requires a lot of time and effort (and therefore cost).

Let’s look at each of these in turn – and we’ll discuss how other considerations come into play along the way.

Speaking in the broadest possible terms, machines require large amounts of data to be trained to a level to meet or exceed human performance in a given task. This data enables the bot to learn how best to perform that task. Essentially, the data pool determines the output.

However, there are certain job categories which require knowledge of, and then subversion of, the data set – jobs where producing the same ‘best’ outcome would not be optimal. Particularly, these are jobs that are typically referred to as creative pursuits – design, brand, look and feel. To use a simple example: if pre-Apple, we trained a machine to design a computer, we would not have arrived at the iMac, and the look and feel of iOS would not become the predominant mobile interface. 

This is not to say that machines cannot create things. We’ve recently seen several ML-trained machines on the internet that produce pictures of people (that don’t exist) – that is undoubtedly creation (of a particularly unnerving variety). The same is true of the AI that can produce music. But those models are trained to produce more of what we recognise as good. Because art is no science, a machine would likely have no better chance of producing a masterpiece than a human. And true innovation, in many instances, requires subverting the data set, not conforming to it.

Secondly, and perhaps more importantly, training AI requires time and money. Some actions are simply too expensive to automate. These tasks are either incredibly specialised, and therefore do not have enough data to support the development of a model, or very broad, which would require so much data that it will render the training of the machine economically unviable. There are also other challenges which may arise. At the IDC, we refer to the Scope of AI-Based Automation. In this scope:

  • A task is the smallest possible unit of work performed on behalf of an activity.
  • An activity is a collection of related tasks to be completed to achieve the objective.
  • A process is a series of related activities that produce a specific output.
  • A system (or an ecosystem) is a set of connected processes.

As we move up the stack from task to system, we find different obstacles. Let’s use the medical industry as an example to show how these constraints interact. Medical image interpretation bots, powered by neural networks, exhibit exceptionally high levels of accuracy in interpreting medical images. This is used to inform decisions which are ultimately made by a human – an outcome that is dictated by regulation. Here, even if we removed the regulation, those machines cannot automate the entire process of treating the patient. Activity reminders (such as when a patient should return for a check-up, or reminders to follow a drug schedule) can in part be automated, with ML applications checking patient past adherence patterns, but with ultimate decision-making by a doctor. Diagnosis and treatment are a process that is ultimately still the purview of humans. Doctors are expected to synthesize information from a variety of sources – from image interpretation machines to the patient’s adherence to the drug schedule – in order to deliver a diagnosis. This relationship is not only a result of a technicality – there are ethical, legal and trust reasons that dictate this outcome.

There is also an economic reason that dictates this outcome. The investment required to train a bot to synthesize all the required data for proper diagnosis and treatment is considerable. On the other end of the spectrum, when a patient’s circumstance requires a largely new, highly specialised or experimental surgery, a bot will unlikely have the data required to be sufficiently trained to perform the operation and even then, it would certainly require human oversight.

The economic point is a particularly important one. To automate the activity in a mine, for example, would require massive investment into what would conceivably be an army of robots. While this may be technically feasible, the costs of such automation likely outweigh the benefits, with replacement costs of robots running into the billions. As such, these jobs are unlikely to disappear in the medium term. 
Thus, based on technical feasibility alone our medium-term jobs market seems to hold opportunity in the following areas: the hyper-specialised (for whom not enough data exists to automate), the jack-of-all-trades (for whom the data set is too large to economically automate), the true creative (who exists to subvert the data set) and finally, those whose job it is to use the data. However, it is not only technical feasibility that we should consider. Too often, the rhetoric would have you believe that the only thing stopping large scale automation is the sophistication of the models we have at our disposal, when in fact financial, regulatory, ethical, legal and political barriers are of equal if not greater importance. Understanding the interplay of each of these for a role in a company is the only way to divine the future of that role.

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LG unveils NanoCell TV range

At the recent LG Electronics annual Innofest innovation celebration in Seoul, Korea, the company unveiled its new NanoCell range: 14 TVs featuring ThinQ AI technology. It also showcased a new range of OLED units.

The new TV models deliver upgraded AI picture and sound quality, underpinned by the company’s second-generation α (Alpha) 9 Gen 2 intelligent processor and deep learning algorithm. As a result, the TVs promise optimised picture and sound by analysing source content and recognising ambient conditions.

LG’s premium range for the MEA market is headlined by the flagship OLED TV line-up, which offers a variety of screen sizes: W9 (model 77/65W9), E9 (model 65E9), C9 (model 77/65/55C9) and B9 (model 65/55B9).

NanoCell is LG’s new premier LED brand, the name intended to highlight outstanding picture quality enabled by NanoCell technology. Ensuring a wider colour gamut and enhanced contrast, says LG, “NanoColor employs a Full Array Local Dimming (FALD) backlight unit. NanoAccuracy guarantees precise colours and contrast over a wide viewing angle while NanoBezel helps to create the ultimate immersive experiences via ultra-thin bezels and the sleek, minimalist design of the TV.”

The NanoCell series comprises fourteen AI-enabled models, available in sizes varying from 49 to 77 inches (model 65SM95, 7565/55SM90, 65/55/49SM86 and 65/55/49SM81).

The LG C9 OLED TV and the company’s 86-inch 4K NanoCell TV model (model 86SM90) were recently honoured with CES 2019 Innovation Awards. The 65-inch E9 and C9 OLED TVs also picked up accolades from Dealerscope, Reviewed.com, and Engadget.

The α9 Gen 2 intelligent processor used in LG’s W9, E9 and C9 series OLED TVs elevates picture and sound quality via a deep learning algorithm (which leverages an extensive database of visual information), recognising content source quality and optimising visual output.

The α9 Gen 2 intelligent processor is able to understand how the human eye perceives images in different lighting and finely adjusts the tone mapping curve in accordance with ambient conditions to achieve the optimal level of screen brightness. The processor uses the TV’s ambient light sensor to measure external light, automatically changing brightness to compensate as required. With its advanced AI, the α9 Gen 2 intelligent processor can refine High Dynamic Range (HDR) content through altering brightness levels. In brightly lit settings, it can transform dark, shadow-filled scenes into easily discernible images, without sacrificing depth or making colours seem unnatural or oversaturated. LG’s 2019 TVs also leverage Dolby’s latest innovation, which intelligently adjusts Dolby Vision content to ensure an outstanding HDR experience, even in brightly lit conditions.

LG’s audio algorithm can up-mix two-channel stereo to replicate 5.1 surround sound. The α9 Gen 2 intelligent processor fine-tunes output according to content type, making voices easier to hear in movies and TV shows, and delivering crisp, clear vocals in songs. LG TVs intelligently set levels based on their positioning within a room, while users can also adjust sound settings manually if they choose. LG’s flagship TVs offer the realistic sound of Dolby Atmos for an immersive entertainment experience.

LG’s 2019 premium TV range comes with a new conversational voice recognition feature that makes it easier to take control and ask a range of questions. The TVs can understand context, which allows for more complex requests, meaning users won’t have to make a series of repetitive commands to get the desired results. Conversational voice recognition will be available on LG TVs with ThinQ AI in over a hundred countries.

LG’s 2019 AI TVs support HDMI 2.1 specifications, allowing the new 4K OLED and NanoCell TV models to display 4K content at a remarkable 120 frames per second. Select 2019 models offer 4K high frame rate (4K HFR), automatic low latency mode (ALLM), variable refresh rate (VRR) and enhanced audio return channel (eARC).

To find out more about LG’s latest TVs and home entertainment systems, visit https://www.lg.com/ae.

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