Publication: Expanding the Frontiers of Telecom Markets Through PPP in Peru
Date
2006-05
ISSN
Published
2006-05
Author(s)
Stephens, Robert
Bossio, Jorge
Ngo, Jean-Christophe
Abstract
To help bring telephone service closer
to Peru's poorest and most isolated areas, where people
still had to travel some 56 kilometers on average to reach a
pay phone, a pioneering fund offered subsidies to attract
investment by private operators. Initial efforts led to
impressive achievements, though slow implementation left
room for improvement. A Public-Private Infrastructure
Advisory Facility (PPIAF)-funded assessment of the first
projects helped design the next generation of
initiatives-and pointed to lessons for other developing
countries. This paper list the following lessons:
Governments should set measurable and achievable goals for a
time frame of two to four years for their universal access
programs, periodically updating the goals as they are met
and as markets and technology evolve; universal access funds
can be most effective and sustainable if they create
incentives for private provision of services on a commercial
basis.; imposing a 1-2 percent assessment on operators'
revenues is an effective and transparent mechanism for
financing universal access funds; making the universal
access program part of the sector regulator, rather than a
stand-alone agency or a line ministry, reduces political
interference in the use of funds and makes it easier to
introduce critical regulatory changes to support the
program; sound regulatory measures can support universal
access; output-based aid (OBA) subsidies are an effective
use of universal access funds because they attract
significant additional private investment; and governments
should find ways to ensure that universal access funds are
used in a timely way.
Citation
“Stephens, Robert; Bossio, Jorge; Ngo, Jean-Christophe. 2006. Expanding the Frontiers of Telecom Markets Through PPP in Peru. Gridlines; No. 5. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/1926996c-c63f-50c0-a9df-6d6bbf248b41 License: CC BY 3.0 IGO.”