this approach has been replaced by explicit sector – helping markets function more effi ciently and ensuring social objectives are met with equitable access for all (effi ciency and equity). subsidy mechanisms such as Universal Service Funds. As public and private service delivery increasingly shifts online, however, the inability of some parts of the population to get access to broadband becomes more of a public policy prob-lem, Current market failures in the provision of broad-band include diffi culties in obtaining permits to operate, ineffi cient allocation of radio-spectrum, poor information and limited capital markets. In many countries, the dominance of incumbent opera-tors if balanced development is to be achieved. This has led governments to consider a more ac-tive approach to ensuring broadband is available arising from their historical monopoly may stifl e throughout their territories. competition. These market failures have been widely recognized by governments around the world and can be addressed through regulatory policy includ-ing Most recently, broadband is now featuring in fi s-cal stimulus plans around the world. Australia has committed around US$ 3 billion, while the US ad-ministration liberalizing licensing regimes, facilitating effi cient has set aside US$ 7.2 billion for rural access to radio-spectrum and regulating access to dominant operators’ networks (“unbundling the local loop”). In some countries, there are even positive fi nancial incentives for operators to invest and com-pete broadband. Broadband is seen as a positive addition to these stimulus plans because, on the supply side, it stimulates investment and employment, while on the demand side, it creates opportunities for entrepreneurship and spill-over effects that benefi t the broader general economy. (e.g. Rep. of Korea). Others have provided low-cost access to existing energy and transport networks. Many governments have also taken a pro-active approach to boosting network roll-out in rural and underserved areas. Historically, this was achieved through cross-subsidization by the state-owned monopoly operator. Following market liberaliza-tion, Source: Dr. Tim Kelly, infoDev/World Bank. The views expressed herein are those of the author only and do not necessarily refl ect the views of the World Bank Group or the Governments it represents. 31