Telecom Subsidies : Output-Based Contracts for Rural Services in Peru
In Peru private telecommunications operators bid for the minimum government subsidy to provide pay phone service to the poor in targeted rural areas. Part of the subsidy is paid on award, part once the equipment is installed, and the rest in semian...
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Format: | Viewpoint |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2001/06/16253056/telecom-subsidies-output-based-contracts-rural-services-peru http://hdl.handle.net/10986/11384 |
Summary: | In Peru private telecommunications
operators bid for the minimum government subsidy to provide
pay phone service to the poor in targeted rural areas. Part
of the subsidy is paid on award, part once the equipment is
installed, and the rest in semiannual installments for
several years, contingent on compliance with performance
standards. The winning bidders get a nonexclusive concession
defining their rights and obligations. Early pilot results
show that the private investment mobilized is twice the
subsidy provided. |
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