Djibouti - Telecommunications and ICT Diagnosis and Advocacy Policy Note : Mitigating the Opportunity Cost of Status Quo
This diagnosis and advocacy policy note highlights key issues in the Djiboutian telecommunications sector and suggests possible recommendations for policy and regulatory reform. In Djibouti the sector is fully vertically integrated and the monopolistic position of Djibouti Telecom on the whole market drives the telecommunication sector to global inefficiencies, impacting the whole social welfare. The note identifies the key operational, regulatory and policy challenges and argues that, in persisting with those identified bottlenecks the country would simply trigger a fiscal and economic opportunity cost expected to dramatically impede the development of the sector, and jeopardize the expected developmental impacts of major infrastructure projects currently initiated. Strategic and Policy recommendations to mitigate the opportunity cost of status quo are eventually proposed. Among the reforms proposed were proposing choices the reform could take, reinforcing the regulatory body of the Ministry of Communication, and creating an IXP and a POP to leverage the impacts of fiber optic projects and make Djibouti an international ICT Gateway.
Summary: | This diagnosis and advocacy policy note
highlights key issues in the Djiboutian telecommunications
sector and suggests possible recommendations for policy and
regulatory reform. In Djibouti the sector is fully
vertically integrated and the monopolistic position of
Djibouti Telecom on the whole market drives the
telecommunication sector to global inefficiencies, impacting
the whole social welfare. The note identifies the key
operational, regulatory and policy challenges and argues
that, in persisting with those identified bottlenecks the
country would simply trigger a fiscal and economic
opportunity cost expected to dramatically impede the
development of the sector, and jeopardize the expected
developmental impacts of major infrastructure projects
currently initiated. Strategic and Policy recommendations to
mitigate the opportunity cost of status quo are eventually
proposed. Among the reforms proposed were proposing choices
the reform could take, reinforcing the regulatory body of
the Ministry of Communication, and creating an IXP and a POP
to leverage the impacts of fiber optic projects and make
Djibouti an international ICT Gateway. |
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