Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti

Djibouti is very well placed, as a landing site of undersea fiber optic cables, to benefit from the digital economy. However, the prevalence of a single national telecom operator in the country has stifled service delivery and innovation in the tel...

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Main Authors:	Decoster, Xavier, Lara Ibarra, Gabriel, Mendiratta, Vibhuti, Santacroce, Marco
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	DIGITAL ECONOMY TELECOMMUNICATIONS WELFARE EFFECTS MARKET COMPETITION UNDERSEA FIBER OPTIC CABLES SERVICE DELIVERY
Online Access:	http://documents.worldbank.org/curated/en/284461557256603334/Welfare-Effects-of-Introducing-Competition-in-the-Telecom-Sector-in-Djibouti http://hdl.handle.net/10986/31675

id	okr-10986-31675
recordtype	oai_dc
spelling	okr-10986-316752022-09-19T12:16:32Z Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti Decoster, Xavier Lara Ibarra, Gabriel Mendiratta, Vibhuti Santacroce, Marco DIGITAL ECONOMY TELECOMMUNICATIONS WELFARE EFFECTS MARKET COMPETITION UNDERSEA FIBER OPTIC CABLES SERVICE DELIVERY Djibouti is very well placed, as a landing site of undersea fiber optic cables, to benefit from the digital economy. However, the prevalence of a single national telecom operator in the country has stifled service delivery and innovation in the telecom sector. Mobile broadband coverage and access to internet in Djibouti in 2018 remains below that of many Sub-Saharan African countries. This paper simulates the impact of the introduction of competition on the telecom sector's prices and its implications for households' welfare. The analysis finds important gains in welfare among current users of telecom services, with the largest gains going to the richest households. On the extensive margin, the analysis also finds a higher likelihood of take up of telecom services across the consumption distribution but skewed toward the rich. More work is needed to understand the implications of changes in the telecom sector, especially as greater access may lead to more unequal access, at least in the short term. 2019-05-10T15:29:57Z 2019-05-10T15:29:57Z 2019-05 Working Paper http://documents.worldbank.org/curated/en/284461557256603334/Welfare-Effects-of-Introducing-Competition-in-the-Telecom-Sector-in-Djibouti http://hdl.handle.net/10986/31675 English Policy Research Working Paper;No. 8850 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Djibouti
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	DIGITAL ECONOMY TELECOMMUNICATIONS WELFARE EFFECTS MARKET COMPETITION UNDERSEA FIBER OPTIC CABLES SERVICE DELIVERY
spellingShingle	DIGITAL ECONOMY TELECOMMUNICATIONS WELFARE EFFECTS MARKET COMPETITION UNDERSEA FIBER OPTIC CABLES SERVICE DELIVERY Decoster, Xavier Lara Ibarra, Gabriel Mendiratta, Vibhuti Santacroce, Marco Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti
geographic_facet	Middle East and North Africa Djibouti
relation	Policy Research Working Paper;No. 8850
description	Djibouti is very well placed, as a landing site of undersea fiber optic cables, to benefit from the digital economy. However, the prevalence of a single national telecom operator in the country has stifled service delivery and innovation in the telecom sector. Mobile broadband coverage and access to internet in Djibouti in 2018 remains below that of many Sub-Saharan African countries. This paper simulates the impact of the introduction of competition on the telecom sector's prices and its implications for households' welfare. The analysis finds important gains in welfare among current users of telecom services, with the largest gains going to the richest households. On the extensive margin, the analysis also finds a higher likelihood of take up of telecom services across the consumption distribution but skewed toward the rich. More work is needed to understand the implications of changes in the telecom sector, especially as greater access may lead to more unequal access, at least in the short term.
format	Working Paper
author	Decoster, Xavier Lara Ibarra, Gabriel Mendiratta, Vibhuti Santacroce, Marco
author_facet	Decoster, Xavier Lara Ibarra, Gabriel Mendiratta, Vibhuti Santacroce, Marco
author_sort	Decoster, Xavier
title	Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti
title_short	Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti
title_full	Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti
title_fullStr	Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti
title_full_unstemmed	Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti
title_sort	welfare effects of introducing competition in the telecom sector in djibouti
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/284461557256603334/Welfare-Effects-of-Introducing-Competition-in-the-Telecom-Sector-in-Djibouti http://hdl.handle.net/10986/31675
_version_	1764474879588958208

Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti

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