A.1     Introduction and context

The ITU Financing universal access to digital technologies and services report describes a financing toolbox that includes risk mitigation mechanisms and blended financial solutions, as well as the objectives and principles of next-generation funding tools (USAF 2.0).  This section of the toolkit unpacks the tools and instruments available for universal access and service financing, including:

  • the context of public investment, which should be carefully approached so as not to ‘crowd out’ private capital;
  • the key areas for policy and regulatory intervention and funding that broadly cover the digital policy value chain, i.e. connectivity, adoption, innovation and inclusion;
  • policy and regulatory interventions and supporting tools and case studies that can reduce costs and risks to incentivise investment;
  • examples of traditional and innovative funding models that can be used to support universal access to digital technologies and services.

This toolkit reflects the importance of collaboration and shows how the complementary roles and mandates of the various funding stakeholders facilitate this. It is therefore important that policy-makers, regulators and universal service fund managers and administrators understand how their roles intersect and complement each other. Given the central and cross-cutting nature and reach of broadband and digital technologies, innovative means need to be explored to finance the deployment and expansion of infrastructure into high-cost, high-risk, and underserved areas, and to ensure that low-income and vulnerable communities, which would otherwise not be connected using private capital, are able to adopt and use the digital applications, services and platforms that broadband enables.