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Accelerating Access to Digital Services: Policy and Regulatory Initiatives to Incentivize Infrastructure Investments

IADB 2017.09.14
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Economic theory tells us that there is a close relationship between price and demand. Moreover, these two variables may explain the rhythm of deployment and the technological solution that could provide broadband services most cost efficiently. The experience of the past decade has clearly shown that competition―in particular, facilities-based competition together with setting up independent regulatory authorities―is the most important driving force for accelerated and sustainable telecom market development. This paper discusses various ways to lower network deployment and operation costs to achieve greater efficiency and broaden coverage in providing digital services across the different social strata. In this regard, this paper provides specific recommendations related to: (i) tower sharing assuming mobile is the more extended and available technology in Latin America and the Caribbean (LAC) (ii) infrastructure sharing, and (iii) conditions for state aid.

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