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206 WORLD DEVELOPMENT REPORT 2016<br />

Table 4.1 A policy framework for the supply of internet service<br />

Network<br />

components<br />

The first mile<br />

(the point at which the<br />

internet enters<br />

a country)<br />

International internet<br />

access, including<br />

submarine cable landing<br />

stations, satellite dishes,<br />

domain name registration<br />

The middle mile<br />

(the national, intercity<br />

internet backbone<br />

of a country)<br />

National backbone<br />

and intercity network,<br />

including fiber backbone,<br />

microwave, IXPs, local<br />

hosting of content<br />

The last mile<br />

(the connection between<br />

users and their<br />

nearest internet point<br />

of presence)<br />

Local access network,<br />

including local loop,<br />

central office exchanges,<br />

wireless masts<br />

The invisible mile<br />

(other, less visible<br />

network components<br />

and potential<br />

bottlenecks)<br />

Nonvisible network<br />

components, including<br />

spectrum, border<br />

crossings, databases,<br />

SIM cards, cybersecurity<br />

Market<br />

competition<br />

• Authorization of satellite<br />

dishes<br />

• Designation of domain<br />

name registry and<br />

registrars<br />

• Licensing of competing<br />

international service<br />

providers and orbital<br />

slots<br />

• Authorizations for<br />

landing stations, and<br />

access (co-location) to<br />

international gateway<br />

facilities<br />

• Licensing/authorization<br />

of nationwide facilitiesbased<br />

operators and<br />

service providers<br />

• Interconnection<br />

arrangements<br />

• Infrastructure sharing<br />

arrangements<br />

• Cross-sectoral<br />

participation (such as<br />

cable TV and alternative<br />

infrastructures)<br />

• Licensing mobile virtual<br />

network operators<br />

• Licensing/authorization<br />

of local facilities-based<br />

operators and service<br />

providers<br />

• Authorization of<br />

mobile virtual network<br />

operators<br />

• Authorization of valueadded<br />

network service<br />

providers, including for<br />

mobile money<br />

• Unbundling the local<br />

loop<br />

• Market mechanisms<br />

(such as auctions and<br />

resale) for spectrum<br />

assignments, especially<br />

for 3G and 4G bands<br />

• Arrangements for access<br />

to essential network<br />

facilities, including<br />

national numbers,<br />

address database<br />

Public-private<br />

partnership<br />

• Privatization/<br />

liberalization of<br />

international gateway<br />

• Development of<br />

government data centers<br />

• Participation in<br />

international cable and<br />

satellite consortia<br />

• Regulation of legal<br />

intercept<br />

• Privatization of the<br />

incumbent operator<br />

• Industry consultation on<br />

a network master plan<br />

• Establishment of<br />

national and local IXPs<br />

• Local hosting of content,<br />

including government<br />

data center<br />

• Dominantly private<br />

operation and<br />

ownership, with PPP<br />

approach where market<br />

fails (as in rural areas)<br />

• Stakeholder consultation<br />

on a national<br />

broadband plan<br />

• Universal service<br />

obligations (as for<br />

emergency services<br />

and accessibility for<br />

disabled)<br />

• Negotiation of transit<br />

and access to virtual<br />

landing stations (for<br />

landlocked countries)<br />

• CSIRTs at national and<br />

institutional levels<br />

• Open access to short<br />

code numbers, as for<br />

SMS<br />

Effective<br />

regulation<br />

• Open access to<br />

international facilities<br />

• Open to foreign<br />

ownership and<br />

investment<br />

• Avoiding excessive<br />

import and excise taxes<br />

• National representation<br />

at relevant national and<br />

regional bodies, such as<br />

ITU, ICANN, and WTO<br />

• Coordinating<br />

rights-of-way for<br />

linear infrastructures<br />

• Safeguards on<br />

significant market power<br />

• Open access rules for<br />

national backbone<br />

• Promotion of local<br />

content and hosting<br />

• Open access rules for<br />

local loop and central<br />

office exchanges<br />

• Coordination of<br />

planning permission for<br />

public works among<br />

operators and utilities,<br />

and authorizations for<br />

construction of wireless<br />

masts<br />

• e-waste recycling<br />

guidelines<br />

• Spectrum management,<br />

including arrangements<br />

for allocation of bands<br />

and refarming<br />

• SIM card registration<br />

arrangements<br />

• Data protection and<br />

privacy guidelines<br />

Source: WDR 2016 team.<br />

Note: Policy examples are indicative, not exhaustive. Policy actions shaded in red are particularly suitable for emerging economies, in green for transitioning economies, and in blue for<br />

transforming economies, but all are good options to pursue at any stage (see chapter 5 for classification of economies). 3G = third-generation; 4G = fourth-generation; CSIRTs = Computer<br />

Security Incident Response Teams; ICANN = Internet Corporation for Assigned Names and Numbers; IP = internet protocol; ITU = International Telecommunication Union; IXP = internet<br />

exchange point; PPP = public-private partnership; SIM = subscriber identification module; SMS = short message service; WTO = World Trade Organization.

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