Closing the Gap in Access to Rural Communication Chile 1995-2002

by Wellenius, Bjorn

• ISBN13: 9780821350928
• ISBN10: 0821350927
• Format: Paperback
• Copyright: 2002-02-01
• Publisher: World Bank Publications

Summary

" Printed on Demand. Limited stock is held for this title. If you would like to order 30 copies or more please contact [e-mail] Contact [e-mail] , if currently unavailable.During the 1990's Chile experienced a rapid growth in telecommunications services that resulted in new services, technological innovation, and prices among the world's lowest. However, despite this fast growth in telecommunication services, most rural inhabitants of Chile and some urban dwellers continued to lack access to even a payphone. In 1994, the government of Chile established a Telecommunications Fund for the purpose of extending services to those without access.This study reviews and documents the cost effective approach developed in Chile that has become the international best practice for improving basic access to telecommunication. Included in the report is detailed information on the design and administration of the Fund and suggestions for improvements to the design. It will serve as a template for developing countries that wish to accelerate their efforts to improve basic access to communication."

Table of Contents

Foreword	vii
Acknowledgments	viii
Acronyms	ix
Executive Summary	1	(2)
Background	3	(2)
The Telecommunications Development Fund	5	(4)
Administration	5	(1)
Eligible Projects	6	(1)
Competitive Tenders	6	(1)
Licenses	6	(3)
Results, 1995-2002	9	(6)
Population Coverage	9	(1)
Private Resource Mobilization	10	(1)
Utilization and Revenues	11	(1)
Operating Companies	12	(3)
Success Factors	15	(2)
Reliance on Market Forces	15	(1)
Minimal Regulation	15	(1)
Simple and Relatively Fast Processing	16	(1)
Competence and Leadership	16	(1)
More on Selected Success Factors	17	(6)
Competition for the Market	17	(1)
Growth-Oriented Business Strategy	18	(2)
Cost-Reflective Access Charges	20	(3)
Improving the Basic Design	23	(8)
Target Population	23	(1)
Selection Bias	24	(1)
Local Participation	25	(1)
Implementation Delays and Penalties	26	(1)
Quality of Service and Monitoring	27	(1)
Administration	28	(1)
Regulatory Framework	28	(3)
Outstanding Questions	31	(4)
Sustainability of Rural Service	31	(1)
Remaining Unserved Rural Population	32	(1)
Low-Income Urban Areas	33	(2)
Beyond Voice	35	(4)
Conclusion	39	(2)
Annex 1. Cost-Benefit Analysis of Projects	41	(6)
Private Cost-Benefit Analysis	41	(1)
Costs	41	(1)
Benefits	42	(1)
Social Cost-Benefit Analysis	42	(1)
Costs	43	(1)
Benefits	43	(1)
Project Selection	43	(1)
Discussion	44	(3)
Private Costs and Revenues	44	(1)
Impact on Subsidies	45	(1)
Social Costs and Benefits	45	(1)
Scope for Improvement	46	(1)
Annex 2. Setting Access Charges for Rural Telephone Companies	47	(1)
Background	47	(1)
Method and Application	48	(1)
Investments	48	(1)
Operating Expenses	49	(1)
Cost of Capital	49	(1)
Other Parameters	50	(1)
Cost Allocation	50	(1)
Results	51	(1)
Conclusion	51