broadband strategies handbook.pdf - Khazar University

support widespread deployment of public telephones to rural and remoteareas. These countries are now also using the UASF to extend broadbandservices to rural areas; for example, Chile is using UASFs to provide Internetaccess and multipurpose telecenters to unserved areas.InfoDev’s ICT Regulation Toolkit illustrates how so-called “secondgeneration”UASFs are applying their resources to the financing of Internetpoints of presence (POPs) in rural districts, telecenters, and cybercafés,school connectivity, and other ICT initiatives. Uganda is one of the firstcountries to establish a more comprehensive USF, and many of its recentinitiatives use technology-neutral competitions, which are increasinglybeing won by mobile operators.However, many countries have raised legitimate concerns regardingUASFs due largely to a few instances of mismanagement and lack of transparencyin fund collection and disbursement. Countries have also been concernedwith the complexity involved in implementing and managing aUASF. It may be a daunting task for governments to get all operators toaccept the conditions of the fund, particularly who will contribute to theUASF and how much those contributions will be (Maddens 2009).Brazil, for example, has struggled with its fund, the Fundo de Universalizaçãodos Serviços de Telecomunicações (FUST). FUST was establishedwith the purpose of creating a financial resource that could complement thedeployment of universal obligations of the wireline operators, but in realitythe cost of expanding services is being borne directly by the operators.FUST’s most critical challenge is that it is not technologically neutral. Itfavors wireline service operators over other telecommunications providers,as the funds can only be applied toward wireline service projects. However,all telecommunications service providers are required to contribute, whichfavors one service over another.Acknowledging that this is not the best funding mechanism, the Ministryof Communications carried out a public consultation in April 2008 with theintention of reforming the Brazilian telecommunications framework. In theconsultation, the ministry proposed that the FUST should be, at the veryleast, technology neutral in its distribution mechanism. The Brazilian Congressis presently considering a variety of other ways to distribute funds andto determine appropriate projects. Currently, various draft laws are underconsideration that, if passed, will amend the FUST regulations to allow theuse of FUST moneys for projects that seek to increase access to broadbandservices in Brazil.Policy makers have also found that mechanisms need to be put in place tomake UASFs accessible to a wider range of telecommunications service providers.Limiting access to funds to a specific category of licensee or toExtending Universal Broadband Access and Use 183