Page 11 - Trends in Telecommunication Reform 2016

Executive Summary

Chapter 1: Investment strategies for commercially viable for operators themselves
broadband deployment and to invest in broadband infrastructure. There is a
access to the digital economy distinction, though, between how PPP projects
are implemented in developing markets and how
they are completed in developed markets. PPPs
This chapter describes both common and in developing markets are more likely to focus on
innovative investment strategies that have been building national, core networks and metro rings,
implemented to support the deployment of while PPP projects in developed markets tend to
broadband infrastructure and access to the digital focus on increasing last-mile broadband coverage
economy. The chapter draws upon practical and achieving very high download speeds.
examples from a wide range of countries to
describe current information and communication Regulators can play a key role in PPP projects
technology (ICT) investment trends and to by encouraging infrastructure sharing and
recommend best practices for regulators spectrum pooling, and by issuing licences with
wishing to foster and secure new investment coverage and performance obligations. Regulators
opportunities. Although this sampling of case should provide operators maps showing existing
studies is not statistically representative and network coverage and passive infrastructure
does not enable significant conclusions to be to aid their network planning. Regulators can
made, some themes do emerge, and these are also ensure that operators offer effective, non-
summarized in this chapter. discriminatory and transparent access to dominant

or government-funded networks. (Detailed
Telecommunication investments in developing analysis will be required, however, to ensure
markets tend to focus mainly on developing that existing operators are not dissuaded from
mobile infrastructure, with the aim of increasing further investment by such regulations.) Subject to
voice, data and broadband service penetration. In local constraints, regulators should also consider
contrast, mobile operators in developed markets allowing incumbent operators to sell assets, such
are more likely to invest in Long-Term Evolution as copper networks, which can be used to offset
(LTE) networks to reverse declining revenues by the costs of future investment in broadband
offering high-speed mobile data services and networks.
applications. Meanwhile, new-entrant, fixed
operators in developed markets are investing New market entrants such as Google, Microsoft
in gigabit broadband networks, since consumer and Facebook have invested in broadband
demand for bandwidth-hungry content is expected networks and emerging technologies. They are
to increase. motivated to generate downstream revenues

by leveraging demand for their content into
Industry consolidation, in the forms of network greater use of widespread broadband networks.
sharing or mergers and acquisitions, also is driving Regulators can play an important role in attracting
investment in both fixed and mobile networks. such new market entrants by providing clarity
The improved efficiencies and cost-savings realized on passive infrastructure-sharing rights, working
through consolidation often prompt operators to with local and national governments to promote
fund increased network investment. Governments technology pilots, and supporting community
and policy-makers can encourage investment in broadband initiatives. They can also help new
networks and services by creating and supporting entrants by expediting licence applications and
“tech clusters,” which have the added benefit of easing civil planning and construction restrictions.
creating jobs and growth in digital industries. Governments and regulators can proactively
champion pilot projects that explore disruptive
It is still common for governments to fund technologies, such as using broadcasting (i.e “TV
broadband networks using public-private white-space”) spectrum to promote broadband
partnerships (PPPs) in areas where it is not services in rural areas not considered to be

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