By Thomas M. Johnstone, Harry Stroomer
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Extra resources for Mehri texts from Oman: based on the field materials of T.M. Johnstone
Sample text
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.