Publication: Internet Access : Regulatory Levers for a Knowledge Economy
Mustafa, Mohammad A.
Internet access depends on four critical players: First, providers of telecommunications infrastructure (bandwidth capacity) for international access to the global Internet backbone. Second, providers of national long-distance telecommunications transmission capacity (such as leased lines) to connect Internet service providers (ISPs) with one another and with international connectivity nodes. Third, providers of local loop access (narrowband and analogue, such as traditional copper wire connections, or broadband and digital, such as digital subscriber lines [DSL], cable television modems, and fixed wireless service). Fourth, ISPs, which provide Internet services to customers using these layers of networks. Expanding Internet access requires cooperative behavior by these players, and regulators have a key role in ensuring such behavior. A regulatory strategy for doing so focuses on promoting the telecommunications infrastructure, enabling viable ISPs, ensuring efficient pricing, maintaining appropriate service quality, supporting diffusion in remote areas, and ensuring legal certainty for electronic transactions. Promoting the telecommunications Infrastructure - competition is key. So regulators should take a permissive approach to licensing multiple financially sound providers (owners and resellers) of telecommunications infrastructure for international connectivity, alternative national long distance networks, and local loop access. To ensure competition in the ISP market, regulators should require no formal licensing for ISPs; simple registration should suffice.
“Mustafa, Mohammad A.. 2003. Internet Access : Regulatory Levers for a Knowledge Economy. Viewpoint: Public Policy for the Private Sector; Note No. 256. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/b0abf3b1-2747-53bc-99e6-2484047b41ff License: CC BY 3.0 IGO.”
Other publications in this report series
PublicationInvestment 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.
PublicationExport Competitiveness: Why Domestic Market Competition Matters(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.
PublicationPrimary Care for the Poor: The Potential of Micro-Health Markets to Improve Care( 2015-01)Much of the primary curative care provided to the poor by the private sector occurs not at large hospitals but at small, single-person clinics. While such micro-health providers increase access, questions persist about quality. Some have argued that the micro-health sector needs to be better regulated. This note cites recent studies in arguing that the micro-health sector needs to be better understood. A more evidence based approach may enable the World Bank Group to better target investments and interventions and help these providers fulfill an important role serving the poor. The following recommendations are made at the conclusion of this paper: (1) Effort, rather than hardware or training, may count the most. (2) Scaling up interventions to improve quality requires understanding and addressing market failures. (3) Changing the way impacts are measured will lead to smarter investments.
PublicationSmall 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.
PublicationCompetition 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.