Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas
This report addresses the important issue of interconnection, the application and enforcement of which is widely recognized to be key to effective liberalization strategy, or often a key reason for failure. Nowhere is this more critical than in the area of rural telecommunications, where network costs are known to be high and where the traditional consensus has been that services cannot be rolled out without subsidies. In a liberalizing environment, the issue becomes even more critical. Rural areas must be better connected, but subsidies-even best-practice explicit subsidies applied in a so-called smart way-cannot cover all of the areas that will remain without service unless better means of incentivizing investment are explored. This report investigates an approach to rural telecommunications investment that would seek to bridge most of the so-called rural "access gap" by revising the network interconnection regime, such that operators serving high cost areas would receive higher call termination fees. The new regime would be built on geographically de-averaged termination charges, to be more indicative of network cost differences between urban and rural networks. The new system could change the business model for rural networks, harnessing the potential for incoming call revenues to shoulder much more of the investment feasibility than currently allowed. It is argued that the rural access gap could be bridged largely by more efficient pricing, thus reducing the need for subsidies, leaving only the most remote and challenging areas in need of financial support.
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dig-okr-10986150312021-04-23T14:03:12Z Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas Dymond, Andrew ACCOUNTING ARBITRAGE AVERAGE COSTS CALLS CITIES COMPETITIVE MARKETS CONSUMERS ECONOMIC COOPERATION ECONOMIC EFFICIENCY FIXED NETWORKS INCOME INTERCONNECTION AGREEMENTS LICENSES LINES LOCAL CALLS MARKET DISTORTIONS MARKET LIBERALIZATION MOBILE NETWORKS MONOPOLIES NETWORKS POLICY MAKERS POWER SUPPLY PROFIT MARGIN REVENUE SHARING RURAL COMMUNITIES RURAL TELECOMMUNICATIONS SERVICE PROVIDERS SOCIAL EQUALITY TELECOMMUNICATIONS UNIVERSAL ACCESS URBAN AREAS WILLINGNESS TO PAY TELECOMMUNICATION INDUSTRY DEVELOPING COUNTRIES INTERCONNECTIONS INVESTMENTS INCENTIVES NETWORK ANALYSIS MOBILE OPERATIONS TARIFFS POLICIES OUTCOMES PUBLIC ACCESS COSTS RURAL AREAS PUBLIC ACCESS NETWORK SERVICES TELEPHONE INDUSTRY INTERCONNECTION CHARGES BILLING INFORMATION CALLING EQUIPMENT This report addresses the important issue of interconnection, the application and enforcement of which is widely recognized to be key to effective liberalization strategy, or often a key reason for failure. Nowhere is this more critical than in the area of rural telecommunications, where network costs are known to be high and where the traditional consensus has been that services cannot be rolled out without subsidies. In a liberalizing environment, the issue becomes even more critical. Rural areas must be better connected, but subsidies-even best-practice explicit subsidies applied in a so-called smart way-cannot cover all of the areas that will remain without service unless better means of incentivizing investment are explored. This report investigates an approach to rural telecommunications investment that would seek to bridge most of the so-called rural "access gap" by revising the network interconnection regime, such that operators serving high cost areas would receive higher call termination fees. The new regime would be built on geographically de-averaged termination charges, to be more indicative of network cost differences between urban and rural networks. The new system could change the business model for rural networks, harnessing the potential for incoming call revenues to shoulder much more of the investment feasibility than currently allowed. It is argued that the rural access gap could be bridged largely by more efficient pricing, thus reducing the need for subsidies, leaving only the most remote and challenging areas in need of financial support. 2013-08-12T20:34:05Z 2013-08-12T20:34:05Z 2004-02 http://documents.worldbank.org/curated/en/2004/02/3100907/telecommunications-challenges-developing-countries-asymmetric-interconnection-charges-rural-areas 0-8213-5784-0 http://hdl.handle.net/10986/15031 English en_US World Bank Working Paper;No. 27 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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dig-okr |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
ACCOUNTING ARBITRAGE AVERAGE COSTS CALLS CITIES COMPETITIVE MARKETS CONSUMERS ECONOMIC COOPERATION ECONOMIC EFFICIENCY FIXED NETWORKS INCOME INTERCONNECTION AGREEMENTS LICENSES LINES LOCAL CALLS MARKET DISTORTIONS MARKET LIBERALIZATION MOBILE NETWORKS MONOPOLIES NETWORKS POLICY MAKERS POWER SUPPLY PROFIT MARGIN REVENUE SHARING RURAL COMMUNITIES RURAL TELECOMMUNICATIONS SERVICE PROVIDERS SOCIAL EQUALITY TELECOMMUNICATIONS UNIVERSAL ACCESS URBAN AREAS WILLINGNESS TO PAY TELECOMMUNICATION INDUSTRY DEVELOPING COUNTRIES INTERCONNECTIONS INVESTMENTS INCENTIVES NETWORK ANALYSIS MOBILE OPERATIONS TARIFFS POLICIES OUTCOMES PUBLIC ACCESS COSTS RURAL AREAS PUBLIC ACCESS NETWORK SERVICES TELEPHONE INDUSTRY INTERCONNECTION CHARGES BILLING INFORMATION CALLING EQUIPMENT ACCOUNTING ARBITRAGE AVERAGE COSTS CALLS CITIES COMPETITIVE MARKETS CONSUMERS ECONOMIC COOPERATION ECONOMIC EFFICIENCY FIXED NETWORKS INCOME INTERCONNECTION AGREEMENTS LICENSES LINES LOCAL CALLS MARKET DISTORTIONS MARKET LIBERALIZATION MOBILE NETWORKS MONOPOLIES NETWORKS POLICY MAKERS POWER SUPPLY PROFIT MARGIN REVENUE SHARING RURAL COMMUNITIES RURAL TELECOMMUNICATIONS SERVICE PROVIDERS SOCIAL EQUALITY TELECOMMUNICATIONS UNIVERSAL ACCESS URBAN AREAS WILLINGNESS TO PAY TELECOMMUNICATION INDUSTRY DEVELOPING COUNTRIES INTERCONNECTIONS INVESTMENTS INCENTIVES NETWORK ANALYSIS MOBILE OPERATIONS TARIFFS POLICIES OUTCOMES PUBLIC ACCESS COSTS RURAL AREAS PUBLIC ACCESS NETWORK SERVICES TELEPHONE INDUSTRY INTERCONNECTION CHARGES BILLING INFORMATION CALLING EQUIPMENT |
| spellingShingle |
ACCOUNTING ARBITRAGE AVERAGE COSTS CALLS CITIES COMPETITIVE MARKETS CONSUMERS ECONOMIC COOPERATION ECONOMIC EFFICIENCY FIXED NETWORKS INCOME INTERCONNECTION AGREEMENTS LICENSES LINES LOCAL CALLS MARKET DISTORTIONS MARKET LIBERALIZATION MOBILE NETWORKS MONOPOLIES NETWORKS POLICY MAKERS POWER SUPPLY PROFIT MARGIN REVENUE SHARING RURAL COMMUNITIES RURAL TELECOMMUNICATIONS SERVICE PROVIDERS SOCIAL EQUALITY TELECOMMUNICATIONS UNIVERSAL ACCESS URBAN AREAS WILLINGNESS TO PAY TELECOMMUNICATION INDUSTRY DEVELOPING COUNTRIES INTERCONNECTIONS INVESTMENTS INCENTIVES NETWORK ANALYSIS MOBILE OPERATIONS TARIFFS POLICIES OUTCOMES PUBLIC ACCESS COSTS RURAL AREAS PUBLIC ACCESS NETWORK SERVICES TELEPHONE INDUSTRY INTERCONNECTION CHARGES BILLING INFORMATION CALLING EQUIPMENT ACCOUNTING ARBITRAGE AVERAGE COSTS CALLS CITIES COMPETITIVE MARKETS CONSUMERS ECONOMIC COOPERATION ECONOMIC EFFICIENCY FIXED NETWORKS INCOME INTERCONNECTION AGREEMENTS LICENSES LINES LOCAL CALLS MARKET DISTORTIONS MARKET LIBERALIZATION MOBILE NETWORKS MONOPOLIES NETWORKS POLICY MAKERS POWER SUPPLY PROFIT MARGIN REVENUE SHARING RURAL COMMUNITIES RURAL TELECOMMUNICATIONS SERVICE PROVIDERS SOCIAL EQUALITY TELECOMMUNICATIONS UNIVERSAL ACCESS URBAN AREAS WILLINGNESS TO PAY TELECOMMUNICATION INDUSTRY DEVELOPING COUNTRIES INTERCONNECTIONS INVESTMENTS INCENTIVES NETWORK ANALYSIS MOBILE OPERATIONS TARIFFS POLICIES OUTCOMES PUBLIC ACCESS COSTS RURAL AREAS PUBLIC ACCESS NETWORK SERVICES TELEPHONE INDUSTRY INTERCONNECTION CHARGES BILLING INFORMATION CALLING EQUIPMENT Dymond, Andrew Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas |
| description |
This report addresses the important
issue of interconnection, the application and enforcement of
which is widely recognized to be key to effective
liberalization strategy, or often a key reason for failure.
Nowhere is this more critical than in the area of rural
telecommunications, where network costs are known to be high
and where the traditional consensus has been that services
cannot be rolled out without subsidies. In a liberalizing
environment, the issue becomes even more critical. Rural
areas must be better connected, but subsidies-even
best-practice explicit subsidies applied in a so-called
smart way-cannot cover all of the areas that will remain
without service unless better means of incentivizing
investment are explored. This report investigates an
approach to rural telecommunications investment that would
seek to bridge most of the so-called rural "access
gap" by revising the network interconnection regime,
such that operators serving high cost areas would receive
higher call termination fees. The new regime would be built
on geographically de-averaged termination charges, to be
more indicative of network cost differences between urban
and rural networks. The new system could change the business
model for rural networks, harnessing the potential for
incoming call revenues to shoulder much more of the
investment feasibility than currently allowed. It is argued
that the rural access gap could be bridged largely by more
efficient pricing, thus reducing the need for subsidies,
leaving only the most remote and challenging areas in need
of financial support. |
| format |
Publications & Research :: Publication |
| topic_facet |
ACCOUNTING ARBITRAGE AVERAGE COSTS CALLS CITIES COMPETITIVE MARKETS CONSUMERS ECONOMIC COOPERATION ECONOMIC EFFICIENCY FIXED NETWORKS INCOME INTERCONNECTION AGREEMENTS LICENSES LINES LOCAL CALLS MARKET DISTORTIONS MARKET LIBERALIZATION MOBILE NETWORKS MONOPOLIES NETWORKS POLICY MAKERS POWER SUPPLY PROFIT MARGIN REVENUE SHARING RURAL COMMUNITIES RURAL TELECOMMUNICATIONS SERVICE PROVIDERS SOCIAL EQUALITY TELECOMMUNICATIONS UNIVERSAL ACCESS URBAN AREAS WILLINGNESS TO PAY TELECOMMUNICATION INDUSTRY DEVELOPING COUNTRIES INTERCONNECTIONS INVESTMENTS INCENTIVES NETWORK ANALYSIS MOBILE OPERATIONS TARIFFS POLICIES OUTCOMES PUBLIC ACCESS COSTS RURAL AREAS PUBLIC ACCESS NETWORK SERVICES TELEPHONE INDUSTRY INTERCONNECTION CHARGES BILLING INFORMATION CALLING EQUIPMENT |
| author |
Dymond, Andrew |
| author_facet |
Dymond, Andrew |
| author_sort |
Dymond, Andrew |
| title |
Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas |
| title_short |
Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas |
| title_full |
Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas |
| title_fullStr |
Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas |
| title_full_unstemmed |
Telecommunications Challenges in Developing Countries : Asymmetric Interconnection Charges for Rural Areas |
| title_sort |
telecommunications challenges in developing countries : asymmetric interconnection charges for rural areas |
| publisher |
Washington, DC: World Bank |
| publishDate |
2004-02 |
| url |
http://documents.worldbank.org/curated/en/2004/02/3100907/telecommunications-challenges-developing-countries-asymmetric-interconnection-charges-rural-areas http://hdl.handle.net/10986/15031 |
| work_keys_str_mv |
AT dymondandrew telecommunicationschallengesindevelopingcountriesasymmetricinterconnectionchargesforruralareas |
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1756572859130445824 |