Extending Telecommunications Service to Rural Areas-The Chilean Experience : Awarding Subsidies Through Competitive Bidding

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 rura...

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Bibliographic Details
Main Author: Wellenius, Björn
Format: Viewpoint
Language:English
Published: World Bank, Washington, DC 2012
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
Online Access:http://documents.worldbank.org/curated/en/1997/02/441230/extending-telecommunications-service-rural-areas-chilean-experience-awarding-subsidies-through-competitive-bidding
http://hdl.handle.net/10986/11593
Description
Summary: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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