broadband strategies handbook.pdf - Khazar University

provide service to profitable, high-revenue customers, neighborhoods, andregions to the detriment of those that are less commercially viable. This isthe result of the tendency to see profitability and return on investment asdrivers of private investment.In addition to the purely economic decisions involved, private investmentalso depends heavily on the regulatory climate. The government’schallenge is to put in place the necessary policy measures and regulatoryframework to allow and encourage the deployment and financing of broadbandnetworks as widely as possible and thus ensure not only that highvalueusers receive high-quality services, but also that the benefits ofbroadband are spread throughout all populations and areas.The Organisation for Economic Co-operation and Development (OECD),based on a survey of broadband policies in member states, identified particularpolicy initiatives that may promote broadband investments, includingpolicies to undertake the following:• Improve access to passive infrastructure (conduit, poles, and ducts) andcoordinate civil works as an effective means to encourage investment• Ensure access to rights-of-way in a fair and nondiscriminatory manner• Encourage and promote the installation of open access to passive infrastructurewhen public works are undertaken• Allow municipalities or utilities to enter telecommunications markets;where market distortion is a concern, policy makers could limit municipalparticipation to basic investments (such as the provision of dark fibernetworks under open-access rules)• Provide greater access to spectrum (which is a significant market barrierto wireless broadband provision) and adopt more market mechanisms topromote more efficient spectrum use.Many countries have used these policies to spur the build-out of broadbandnetworks. In Korea, for example, thanks to greater market liberalizationover the past decade, several new service providers entered thetelecommunications market and began to fund and deploy fiber-based networks.Many advanced broadband networks are now available, and thecountry has an impressive number of users.In Africa, wireless broadband licenses have been granted by governmentssince 2004, allowing mobile operators to roll out networks capable ofsupporting high-speed data. Although uptake was initially slow, several factorshave led to a growing number of African operators, boosting investmentsfor 3G or 4G, including (a) more affordable international and backhaulcapacity, (b) increasing competition in the mobile sector, (c) greater demandfor more advanced services (for example, through the launch of e-healthPolicy Approaches to Promoting Broadband Development 65