Chapter 1: Investment strategies for broadband deployment and access to the digital economy This chapter describes both common and innovative investment strategies that have been implemented to support the deployment of broadband infrastructure and access to the digital economy. The chapter draws upon practical examples from a wide range of countries to describe current information and communication technology (ICT) investment trends and to recommend best practices for regulators wishing to foster and secure new investment opportunities. Although this sampling of case studies is not statistically representative and does not enable significant conclusions to be made, some themes do emerge, and these are summarized in this chapter.Telecommunication investments in developing markets tend to focus mainly on developing mobile infrastructure, with the aim of increasing voice, data and broadband service penetration. In contrast, mobile operators in developed markets are more likely to invest in Long-Term Evolution (LTE) networks to reverse declining revenues by offering high-speed mobile data services and applications. Meanwhile, new-entrant, fixed operators in developed markets are investing in gigabit broadband networks, since consumer demand for bandwidth-hungry content is expected to increase.Industry consolidation, in the forms of network sharing or mergers and acquisitions, also is driving investment in both fixed and mobile networks. The improved efficiencies and cost-savings realized through consolidation often prompt operators to fund increased network investment. Governments and policy-makers can encourage investment in networks and services by creating and supporting “tech clusters,” which have the added benefit of creating jobs and growth in digital industries.It is still common for governments to fund broadband networks using public-private partnerships (PPPs) in areas where it is not commercially viable for operators themselves to invest in broadband infrastructure. There is a distinction, though, between how PPP projects are implemented in developing markets and how they are completed in developed markets. PPPs in developing markets are more likely to focus on building national, core networks and metro rings, while PPP projects in developed markets tend to focus on increasing last-mile broadband coverage and achieving very high download speeds.Regulators can play a key role in PPP projects by encouraging infrastructure sharing and spectrum pooling, and by issuing licences with coverage and performance obligations. Regulators should provide operators maps showing existing network coverage and passive infrastructure to aid their network planning. Regulators can also ensure that operators offer effective, non-discriminatory and transparent access to dominant or government-funded networks. (Detailed analysis will be required, however, to ensure that existing operators are not dissuaded from further investment by such regulations.) Subject to local constraints, regulators should also consider allowing incumbent operators to sell assets, such as copper networks, which can be used to offset the costs of future investment in broadband networks.New market entrants such as Google, Microsoft and Facebook have invested in broadband networks and emerging technologies. They are motivated to generate downstream revenues by leveraging demand for their content into greater use of widespread broadband networks. Regulators can play an important role in attracting such new market entrants by providing clarity on passive infrastructure-sharing rights, working with local and national governments to promote technology pilots, and supporting community broadband initiatives. They can also help new entrants by expediting licence applications and easing civil planning and construction restrictions. Governments and regulators can proactively champion pilot projects that explore disruptive technologies, such as using broadcasting (i.e “TV white-space”) spectrum to promote broadband services in rural areas not considered to be Trends in Telecommunicaiton Reform 2016 ix Executive Summary