Discussion Papers 2003

WDR Discussion Paper 0301

Stimulating Investment in Network Development

William H. Melody

This paper introduces the WDR 2003 theme, explaining that it stems not only from the desperate need for network rollout in developing countries, and concerns about the slow rate of broadband network upgrading in most developed countries, but also from the drying up of investment funds for the telecom sector. Melody starts the 2003 debate by posing the following question: "What are the specific areas where regulation can have the greatest positive impact on the investment environment in the short run?"

WDR Discussion Paper 0302a

Telecoms in Denmark: Investment, Performance and Regulation

Anders Henten

The focus of this paper is on the development of the Danish telecom network and service provision market since liberalization and the role of policy and regulation in shaping this development. More specifically, the emphasis is on investment. However, in order to present a sufficiently comprehensive picture, developments in financial performance, technology diffusion, price developments, and innovation are also included. Furthermore, the competitive situation on the Danish telecom market is examined, as the competitive environment affects the investment incentives of market players. The aim of this paper is to analyze the relationship between market developments and performance and the policy and regulatory initiatives taken and to discuss the general lessons with respect to initiatives fostering or limiting investment, innovation, and performance in general.

(Released Feb. 2004. WDR0302a updates discussion paper WDR0302 released September 2003)

WDR Discussion Paper 0303a

Regulation and Investment: Sri Lanka Case Study

Rohan Samarajiva & Anupama Dokeniya

This paper examines the investment patterns in Sri Lanka’s telecom sector and attempts to explain them in the context of the sector’s regulatory environment based upon assessments of perceived regulatory risk. The authors provide a detailed analysis of the 'Telecom Regulatory Environment', across five dimensions of regulatory risk (market entry, access to scarce resources, interconnection, tariff regulation, regulation of anti competitive practices), over three time periods (1993-96; 1997-99; 2000-02) for the fixed and mobile sectors. The investment patterns in the sector over the three time periods are then analytically examined, with respect to the corresponding assessments of the regulatory environment. The summary assessment for each dimension is expressed on a five-point scale as poor, unsatisfactory, neutral, satisfactory and excellent.

WDR Discussion Paper 0304

Indian Telecommunications Policy and Regulation: Impact on Investment and Market Structure

Payal Malik

The national political infrastructure (political institutional, and legal environment) of a country helps to define its investment environment and thus the economic growth prospects. In this paper we attempt a micro study to test this hypothesis in the context of the Indian Telecommunication sector. The Indian Telecommunication Sector provides a classical case study of how regulated telecom operators and potential investors include “regulatory risk” as a key factor in determining their investment strategies.

Over the past few decades, the changing technological and economic scenario has imparted an element of competition to the sector. With commercial activities like banking and international finance becoming critically dependent on global information and efficient electronic exchange, the demand for telecommunication services has grown rapidly. The abysmal performance of the state-owned telecom service providers and the increasing need to attract capital for the upgradation of the sector has merely served to hasten the process. In fact the National Telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the telecom targets of the eighth five-year plan of the Government of India (1992-97).

WDR Discussion Paper 0305

Telecom developments and investments in Ghana

Godfred Frempong & Anders Henten

Since 1994, the number of fixed line telephone subscribers in Ghana has grown from app. 50,000 to 275,000 and, in the same period of time, mobile subscribers have gone up from a couple of thousands to more than 300,000. All in all, this looks like a success story. However, the goals set by government have only partly been met – especially with respect to the development in rural areas – and the quality of service is still low and has even deteriorated on some indicators. There is, therefore, a widespread dissatisfaction with the general telecom development in Ghana among users as well as policy decision makers and administrators.

This is, in very brief terms, the general description of the telecom development and present situation in Ghana, and the aim of this paper is to analyze this development and situation and to discuss the reasons behind the successes and failures experienced, in particular with respect to investments.

WDR Discussion Paper 0306

A case study on Somaliland, in the framework of the WDR project

Knud Erik Skouby & Reza Tadayoni

This report contains a case study of Somaliland, prepared in the framework of WDR program. Among the case countries in WDR project, Somaliland is by far the poorest with an ICT development in its very infancy. The report maps the development of ICT in Somaliland and gives an analysis of potentials and barriers related to ICT development and investment, which is the overall theme of WDR this year.

WDR Discussion Paper 0307

Regulation and Electronic Commerce in Developing Countries

Robin Mansell

"IT empowers, benefits and links people the world over … access to the digital opportunities must, therefore, be open to all" (G-8 Communique 2000). This was a key message of the Group of Eight countries’ Okinawa Charter on the Global Information Society in 2000. In 2003, the principle of inclusion in the benefits of information societies in local, regional and global contexts was endorsed again in the Declaration of Principles agreed at the World Summit on the Information Society. The Principles emphasise a "commitment to build a people-centred, inclusive and development-oriented Information Society" (WSIS 2003a).

Together with other services being developed for information societies, electronic commerce is expected to play a major role in generating new social and economic opportunities as a result of technological innovations in information and communication technologies (ICTs). In order to achieve "inclusive and development-oriented" information societies, however, it is necessary to ensure that countries have the appropriate technical and institutional infrastructure in place to support the new services. An important issue for all countries is the extent of their readiness to implement new forms of electronic services. However, for many developing countries, there is little systematic evidence about how the new technologies are being designed and implemented in their varying contexts of use.

WDR Discussion Paper 0308

Cost based interconnection charges, competition and investments

Morten Falch

The objective of this paper is to analyse the relationship between regulation of interconnection charges and the level of competition and investments. One of the most important issues in the debate on interconnect regulation has been use of forward looking costs for setting of interconnection charges. This debate has been ongoing within the EU as well as in US. This paper discusses the European experiences and in particular the Danish experiences with use of cost based interconnection charges, and their impact on competition and investments in the telecom market.

WDR Discussion Paper 0309

Benchmark Indicators for African NRA Websites

Amy Mahan

This survey of African national regulatory websites ranks the different NRAs in their online role of information society drivers and facilitators. Websites serve to highlight the use of new technologies, and be used to provide wider access to regulatory information, standards and best practices. The study ranks the sites across four thematic categories and provides discussion around the role of regulatory websites and the information they should provide and processes they should support.

WDR Discussion Paper 0310

Stimulating Investment in Network Development: The case of South Africa

Alison Gilwald

This case study provides extensive evidence around telecom investment and roll-out showing the much believed South African success story to be largely mythical. The paper argues that there is significant evidence that demand for communications services can innovatively met through market forces and gaps in market cost-effectively filled by enabling alternative operators to enter areas regarded as unprofitable by the incumbents. However, their success in every instance in developing countries is dependent on strategic policy and effective market regulation which includes reduced regulatory risk to induce local and foreign investment.

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