Broadband Infrastructure: The Regulatory Framework, Market Transparency and Risk-Sharing Partnerships are the Key Factors

Abstract

Around the globe countries are attempting to forge ahead with the expansion and upgrading of advanced communications networks. In most cases they are setting very ambitious goals with regard to technology and coverage. However, the specific cost structure for broadband projects results in the private-sector-driven, competitive market for network upgrading being primarily focused on densely populated urban areas. By contrast, major progress in rolling out broadband to unserved rural areas will not be made in the foreseeable future without state subsidies. Without having to steer a course towards the return of a monopoly in the telecommunications sector, which would have a detrimental long-term impact, the public sector can in this situation promote sustainable progress in telecommunication by merging projects, entering into risk-sharing partnerships, setting realistic broadband targets, providing essential market information to market participants, offering e-government digital services itself and, on top of that, further enhancing investment incentives with a regulatory framework in a competitive environment.

Keywords: broadband, telecommunications, Infrastructure, investment, financing

JEL Classification: K2, L96, O14, O33