Expanding the Frontiers of Telecom Markets Through PPP in Peru
To help bring telephone service closer to Peru's poorest and most isolated areas, where people still had to travel some 56 kilometers on average to reach a pay phone, a pioneering fund offered subsidies to attract investment by private operato...
Main Authors: | , , |
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Format: | Brief |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2006/05/7090641/expanding-frontiers-telecom-markets-through-ppp-peru http://hdl.handle.net/10986/10735 |
Summary: | To help bring telephone service closer
to Peru's poorest and most isolated areas, where people
still had to travel some 56 kilometers on average to reach a
pay phone, a pioneering fund offered subsidies to attract
investment by private operators. Initial efforts led to
impressive achievements, though slow implementation left
room for improvement. A Public-Private Infrastructure
Advisory Facility (PPIAF)-funded assessment of the first
projects helped design the next generation of
initiatives-and pointed to lessons for other developing
countries. This paper list the following lessons:
Governments should set measurable and achievable goals for a
time frame of two to four years for their universal access
programs, periodically updating the goals as they are met
and as markets and technology evolve; universal access funds
can be most effective and sustainable if they create
incentives for private provision of services on a commercial
basis.; imposing a 1-2 percent assessment on operators'
revenues is an effective and transparent mechanism for
financing universal access funds; making the universal
access program part of the sector regulator, rather than a
stand-alone agency or a line ministry, reduces political
interference in the use of funds and makes it easier to
introduce critical regulatory changes to support the
program; sound regulatory measures can support universal
access; output-based aid (OBA) subsidies are an effective
use of universal access funds because they attract
significant additional private investment; and governments
should find ways to ensure that universal access funds are
used in a timely way. |
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