What COVID-19 Means for Digital Infrastructure in Emerging Markets
The COVID-19 pandemic shows that digital connectivity is critical to societal resilience and business continuity in times of crisis. For digital infrastructure providers in emerging markets, higher demand for connectivity may be counterbalanced by...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/234791596435725413/What-COVID-19-Means-for-Digital-Infrastructure-in-Emerging-Markets http://hdl.handle.net/10986/34306 |
| Summary: | The COVID-19 pandemic shows that digital
connectivity is critical to societal resilience and business
continuity in times of crisis. For digital infrastructure
providers in emerging markets, higher demand for
connectivity may be counterbalanced by a series of negative
shocks. These could affect broadband operators and smaller
companies, leading to less competition, limited availability
of open-access broadband infrastructure, and reduced
technological innovation. However, the perceived value of
digital connectivity is likely to rise, creating
opportunities to implement policy reforms to accelerate the
rollout of 4G and 5G. Digital infrastructure companies,
however, may accelerate their migration toward diversified
business models. Against a background of funding withdrawal
from emerging markets, financing for smaller or independent
companies in the poorest economies may require substantial
support from development finance institutions to preserve
competition, improve resilience, and promote digital
inclusion for the poorest. |
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