Extending Telecommunications Service to Rural Areas-The Chilean Experience : Awarding Subsidies Through Competitive Bidding
Chile's telecommunications market
is one of the most open and competitive in the world.
Nevertheless, about 10 percent of all Chileans that live in
localities do not even have a public telephone. To increase
access to public telephones in rural and low-income urban
areas, the Chilean government set up a special fund in 1994.
The fund, due to expire in 1998, is financed by the national
budget and administered by a council chaired by the
telecommunications minister. The council decides on the
annual program of projects eligible for subsidy and awards
the projects and subsidies through competitive bidding. The
fund's second round began in August 1996. With
successful completion of the 1996 round, more than 97
percent of Chileans will likely have access to basic
telecommunications by 1998, and the fund may well have a
surplus. This Note describes the Chilean experience and the
lessons that may be broadly applicable in other emerging economies.
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Bibliographic Details
| Main Author: |
Wellenius, Björn |
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| Language: | English |
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| Published: |
World Bank, Washington, DC
1997-02
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| Subjects: | SUBSIDIES,
TELEPHONE SERVICES,
DEVELOPMENT FINANCE,
RURAL AREAS,
PROCUREMENT,
RURAL TELECOMMUNICATION SYSTEMS,
EMERGING ECONOMIES,
LICENSCEE,
TELECOMMUNICATIONS,
LOCALITIES ACCOUNTING,
CITIES,
COMPETITIVE BIDDING,
COMPETITIVE ENVIRONMENT,
COMPETITIVE MARKETS,
FOREIGN EXCHANGE,
HOUSEHOLDS,
INCOME,
INFLATION,
INHABITANTS,
INNOVATIONS,
LIBRARIES,
LICENSES,
LIMITED COMPETITION,
MARGINAL COST,
OPERATING COSTS,
OPERATING REVENUE,
PHONES,
PRESENT VALUE,
PRIVATE SECTOR,
PRIVATIZATION,
PROVISIONS,
RADIO,
RURAL TELECOMMUNICATIONS,
RURAL TELEPHONES,
SAVINGS,
TAX,
TELECOMMUNICATIONS INVESTMENTS,
TELEPHONE ACCESS,
TELEPHONE COMPANIES,
TELEPHONE CONNECTIONS,
TELEPHONE LINES,
TELEPHONES,
TELEVISION,
URBAN AREAS, |
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| Online Access: | http://documents.worldbank.org/curated/en/1997/02/441230/extending-telecommunications-service-rural-areas-chilean-experience-awarding-subsidies-through-competitive-bidding
https://hdl.handle.net/10986/11593
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