Searching for Economic Value in Mexican Rural Communities
9 Pages Posted: 20 Dec 2015
Date Written: July 13, 2015
Evolving information and communications technologies (ICT), along with Mexican regulatory changes, raise expectations to increase ICT population reach. Yet, to bring infrastructure to more than 4,500 rural communities with less than 1,500 residents, remains an enormous challenge for Telecommunications Service Providers (TSP’s). Therefore, two questions are addressed: is there sufficient economic value in rural communities? Is there a sustainable way to capture such value? To address the first question, the economic activity of a typical rural population is analyzed, and the impact from ICT adoption is estimated. Broadband availability leads to optimistic figures, in contrast to traditional models assuming only personal communications services. To answer the second question, a midsized mobile virtual network enabler (MVNE) is proposed to provide turnkey franchise-type business models and assets, for local entrepreneurs to supply information services within their communities, creating sufficient demand for TSP’s to deploy infrastructure. Findings show attractiveness for all stakeholders.
Keywords: MVNO, MVNE, Rural Community, Economic Value, ICT, ICT Economic Impact, Infraestructure deployment
JEL Classification: L96, O18
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