Download Closing the Gap in Access to Rural Communication: Chile by Björn Wellenius, World Bank PDF

By Björn Wellenius, World Bank

Throughout the 1990's Chile skilled a speedy development in telecommunications companies that led to new companies, technological innovation, and costs one of the world's lowest. even though, regardless of this quick progress in telecommunication prone, so much rural population of Chile and a few city dwellers persisted to lack entry to even a payphone. In 1994, the govt of Chile tested a Telecommunications Fund for the aim of extending providers to these with no entry. This research studies and files the associated fee powerful procedure constructed in Chile that has develop into the foreign top perform for bettering uncomplicated entry to telecommunication. integrated within the document is certain info at the layout and management of the Fund and recommendations for advancements to the layout. it is going to function a template for constructing nations that desire to speed up their efforts to enhance simple entry to communique.

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Places that are far from the main network are costly to reach. The cost-benefit analysis tends to over-state costs and under-state revenues (Annex 1). On all these counts small, remote, or poor places tended to rank l o w in terms o f social NPV per unit o f subsidy and were therefore less likely to be selected for early funding. They remained, nonetheless, in the roster o f eligible localities and stood growing chances o f being supported in later rounds as the program extended into more marginal localities.

For example, little would have been gained b y undertaking extensive econometric studies to determine more accurately the price elasticity o f calls. But i t made sense to use actual payphone traffic data instead o f assumptions on willingness to pay to forecast revenues as soon as such data became available. There are, however, two broader lessons to be drawn. First, the risk o f errors in costbenefit analysis should be limited b y using the results o f the analysis in conjunction with other decisionmaking tools.

45 o f March 31, 1999, and by Decree No. 266 o f May 26, 2000. An operating company i s classified as rural by SUBTEL, at the company’s request, when i t provides service exclusively in localities or areas that meet at least three o f the following eight criteria: (1) low demand for telephone lines, (2) geographical dispersion o f this demand, (3) low traffic volume, (4) high proportion of long-distance traffic, compared with urban customers, (5) isolation o f population relative to main centers, (6) topographical impediments to building conventional telephone networks, (7) exceptionally adverse topography or climate for operation and maintenance, and (8) lack o f reliable electric power supply.

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