Phase out mobile communication technology : an analysis based on public policy and business values

Through the progress of communication technology, the mobile services have broughtlots of benefits for our daily lives. However, with the recent advances in cellular communications and new systems being deployed alongside existing ones, an emerging question aboutwhether there still is someneedsfor the legacy infrastructure, in particular the widely deployed GSMsystemsat this moment.Forthe evolution of mobile communication, we have embrace convenience and efficiency offered bymobile service.We confront, however,so many problems after enjoying the benefits. For an example, the exponentially growing demand for wireless traffic hasresultedin availablespectrum shortageand thus national regulatory authorities(NRAs) worldwide are looking to re-farmtheir GSMspectrum to deploy more spectrally efficient technologies such asLTEor 5G. Therefore, both NRAsand mobile network operators (MNOs) need toaddress the re-farming closely and efficiently. In addition, the regulators should contemplate how to balance subscriber protection and re-farming scheme for asmooth transition amongdifferent mobile communication services.In some cases, an easement model can be a practical option to achieve efficient use of spectrum. The FCC allows US mobile operators to decide when to phase out the legacy network. Compared with Taiwan or some countries in Europe, the FCC takes the laissez-faire approach in the termination process with some flexibility. In the light of this, the NRA in Taiwan provides some subsidies to GSMusers to facilitate their migration to more advanced services before the GSMservice licenses expiration in June this year. However, who will derive the benefits? In fact, there are five mobile network operators in Taiwan, but three operators such as Chunghwa Telecom, Far EasTone and Taiwan Mobile offer the GSMservices. Accordingto current subsidy policy, GSMmobile operators will compete each other to decide who can convert those subscribers as many as possible into 3G or 4G subscribers through NRA's subsidy would the winner of this technology transition. In addition,the NRA phasing out the legacy network confrontssome potential tough issues.