Publication: Franchising Telecom Service Shops : Meeting Demand from Nonsubscribers in Indonesia
Loading...
Published
1996-03
ISSN
Date
2012-08-13
Author(s)
Editor(s)
Abstract
Indonesia has only about 1.3 lines per hundred people, so universal telephone service cannot be practically achieved in the near future. Nevertheless, public access to telephone and other telecommunications services can be dramatically improved through pay phones and telecom shops. The telecom shops are retail outlets that provide telecom services to "non-subscribers," often under a franchise from the local telephone company. These shops have turned out to be effective at meeting the strong demand among the majority of Indonesians who lack private residential or business telephone service, and their success provides a model that other countries can apply. The important message from the Indonesian experience is that the demand for service from nonsubscribers in developing countries is significant, commercially viable, and should be met. The rapid growth in the number of telecom shops in Indonesia attests to their increasingly effective role in providing public access to telecommunications services. As technology advances and the cost of telecommunications equipment declines, the next commercial development could be the establishment of community "micro" telephone companies. Using a small PBX (an automatic switchboard), a telecom shop could cost-effectively service one hundred extensions on twenty main lines and, using the new generation of digital cordless telephone sets, the telecom shop could extend its services while still providing conventional telecommunications shop services.
Link to Data Set
Citation
“Pradhan, Rajesh; Smith, Peter. 1996. Franchising Telecom Service Shops : Meeting Demand from Nonsubscribers in Indonesia. Viewpoint: Public Policy for the Private Sector; Note No. 73. © World Bank. http://hdl.handle.net/10986/11630 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication Competition and Poverty(World Bank, Washington, DC, 2016-04)A literature review shows competition policy reforms can deliver benefits for the poorest households and improve income distribution. A lack of competition in food markets hurts the poorest households the most. Competition in input markets and between buyers helps farmers and small businesses. And more competitive markets bolster job growth over the longer term. More research is needed, however, to better understand the impact of competition reforms and antitrust enforcement on poverty and shared prosperity.Publication Investment Climate in Africa(World Bank, Washington, DC, 2015-07-01)The World Bank Group has been working on investment climate reform in Sub-Saharan Africa for nearly a decade, a period characterized by dramatic economic growth on the continent. Establishing links between such reform interventions and economic growth, however, is a complex problem. Although this note finds some connection between investment climate reform and economic growth, establishing more concrete evidence of causation will require greater focus at the country level, as well as on small and medium enterprises. This is where investment climate interventions generate change.Publication Small Business Tax Regimes(World Bank, Washington, DC, 2016-02)Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any books or records tend to be overly popular but prone to abuse. System reforms will require more precise tailoring of the simplified regimes to their target beneficiaries, coupled with strong compliance management to detect and deter abuse. The overall objective of simplified taxation for micro and small enterprises (MSEs) in developing countries is generally to facilitate voluntary tax compliance and remove obstacles in moving toward business formalization and growth.Publication Export Competitiveness(World Bank, Washington, DC, 2015-06)This review of the empirical literature shows that industries with more intense domestic competition will export more. Competition law enforcement can be traced to export performance and is complementary to trade reforms. Pro-competition market regulation that reduces restrictions and promotes competition, where it is viable, is an important determinant for trade. The elimination of barriers to entry and rivalry, and a level playing field in upstream sectors contributes to export competitiveness in downstream manufacturing sectors. In some sectors, effective competition policy can directly lower trade costs.Publication Contract Farming(World Bank, Washington, DC, 2014-10)Contract farming involves production by farmers under agreement with buyers for their outputs. This arrangement can help integrate small-scale farmers into modern agricultural value chains, providing them with inputs, technical assistance, and assured markets. Critics contend that contract partners may subject farmers to abuses. The literature shows that in fact contract farming can raise farm income, but mainly for high-value crops. It also indicates that in many cases firms are willing to work with small farms. This note confirms that conflicts are common between buyers and farmers, and that alternative dispute resolution methods may help resolve them.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication What the Transformation of Telecom Markets Means for Regulation(World Bank, Washington, DC, 1997-07)The author looks at the impact of the changes in the telecommunications industry on regulation. As demand changes, services converge, and new players emerge, the key issue for regulators is promoting competition. The work of regulators is becoming increasingly complex at the same time that convergence and the common principles established in regional and international trade agreements are reducing their discretion. One way for regulators to deal with the complexity is to privatize aspects of regulation-for example, by creating property rights to the spectrum and by outsourcing some regulatory tasks. But the specialized telecommunications regulatory agency is probably a transitory entity that may eventually find itself merged into a multisectoral antitrust agency.Publication Sustainable Telecenters : A Guide for Government Policy(World Bank, Washington, DC, 2003-01)For at least a decade, governments and non-profit organizations, often supported by bilateral aid, have experimented with tele-centers as means to extend access to computers, the Internet, and other information, and communication services to rural, and low-income urban areas of developing countries. Results have been mixed. This note proposes a guide for government policy on tele-centers conceived as private businesses - though with development functions - that are commercially sustainable beyond initial public support.Publication Enhancing the Livelihoods of the Rural Poor through ICT - A Knowledge Map(World Bank, Washington, DC, 2008-06)The major objective of the study was to come up with illustrative success stories as well as failures to give lessons on ICT interventions in the area of rural livelihoods and their impact in Tanzania. The key issues addressed in this study were: 1) common ICTs used by the rural poor in Tanzania; 2) which ICTs are regarded as attractive by different groups and why; 3) the use of ICTs by different age cohorts as part of their livelihoods strategies; 4) the role of ICTs in influencing the livelihoods of the poor; 5) what effects, if any, does use of these resources have on vulnerability, livelihoods and value of assets; and 6) whether or not ICT services can be improved in relation to their usage and effects. The study also made a comparative analysis of the use of ICTs by different groups based on age, location, gender and ethnicity. This study was conducted for a period of four months from October 2006 to January 2007, in three different districts (Bagamoyo, Moshi Rural and Njombe). The findings from this study reveal that ICTs commonly used by the rural poor in the selected districts are radio, mobile phone and TV. Development of ICTs is a result of a number of interventions by government, NGOs, development partners and the private sector, and this has impacted on the livelihoods of the rural poor. Survey results confirmed this by revealing that ICTs contributed to improving rural livelihoods through improved businesses (17%), increased access to education (3%), ease of communications (50%) and increased access to key information (30%). The output of this study is expected to inform policymakers as well as other stakeholders, such as development partners, civil society and the private sector, on how ICTs can be adapted to help improve the livelihoods of poor individuals, families and communities in rural areas and increase their income opportunities and/or livelihood sources, thereby improving their chances of escaping from persistent poverty. It also documents what has already been implemented in Tanzania as far as ICTs and rural livelihoods are concerned, and the pertinent gaps in terms of improving the livelihoods of the rural poor by using ICT tools.Publication Options to Increase Access to Telecommunications Services in Rural and Low-Income Areas(World Bank, 2010)Recent evidence suggests that increasing overall service coverage and promoting access to telecommunications services have a high economic benefit. Overall, it is estimated that a ten percent increase in mobile telephony penetration could increase economic growth by 0.81 percent in developing countries, whereas a ten percent increase in broadband penetration could increase economic growth by 1.4 percent. In rural and low-income areas in particular, not only do basic telephony services and broadband access allow population to connect with relatives and friends, but they have also introduced a dramatic increase in productivity and in many cases have become the only way for small and medium enterprises in rural areas to access national and, in some cases, global markets. Moreover, the impact of access to telecommunications in rural areas on health, education, disaster management, and local governments has allowed better and more rapid responses, improved coordination, and more effective public management. It is therefore worthwhile to take a second look at all possible policy options, both conventional mechanisms (some of which underutilized) as well as new approaches, to determine whether some of them may be relevant for the emerging agenda of universal broadband access. This paper will first address the necessary conditions required to adopt a more ambitious universal access policy in developing countries. After that, a brief account of the main relevant trends in the industry will be made, followed by a description of twelve different mechanisms for project implementation and six different mechanisms for funding of universal access strategies. Then, an evaluation of the mechanisms will be carried out to identify the most suitable ones. Finally, some recommendations to policy makers on implementation of the preferred mechanisms are also drawn from the analysis.Publication Telecommunications is Dead, Long Live Networking : The Effect of the Information Revolution on the Telecom Industry(World Bank, Washington, DC, 1997-07)The author looks at how the drivers of the information revolution are transforming the structure of the telecommunications industry. The end of natural monopoly, the breakdown of the old pricing mechanisms, the increasing competition from new operators and new products, and the globalization of the industry are forcing radical change. This spells trouble for incumbent telecommunications operators -most of whose assets are holes in the ground. Many incumbents are responding by forming global alliances. But this trend may have more to do with their desire to recreate in international markets the oligarchies they are used to at home than with the underlying market forces. Where is the industry heading? One view of the future sees transmission capacity and bandwidth becoming tradable commodities, with the industry fragmenting into wholesalers investing in capacity, brokers intermediating supply and demand for capacity, and retailers dealing with the consumer.
Users also downloaded
Showing related downloaded files
Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication The Container Port Performance Index 2023(Washington, DC: World Bank, 2024-07-18)The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.