Intelecon Research projects in a recent release that mobile networks will begin to provide coverage to 90% of the world’s population by 2010 - compared with 80% today.

This optimistic projection is being made despite the misplaced policies of many local governments who continue to subsidize the rollout of fixed-networks.

The World Bank has already estimated that the capital cost of providing mobile coverage to an individual is one-tenth of the cost of installing a fixed-line connection, so one fails to understand why these countries continue with their costly, retrogressive, shortsighted policies.

Intelecon Research found that governments have collected over US$6 billion from the telecoms industry (a third from mobile operators) out of which one quarter got used in other things and just 5% (US$75 million) has been used to extend mobile coverage.

Malaysia, for instance corners 6% of operators’ income, while India, which levies 5%, has built up a fund of almost US$2 billion that is earmarked entirely for extending fixed networks. Brazil levies 1%, but has yet to spend any of the US$1.7 billion it has collected.