Output-based aid in Nepal: Expanding Telecommunications Service to Rural Areas

摘要

Privatization and regulatory reform have significantly improved access to ICTs in developing and transitional markets. However, access remains low in rural, remote and low-income regions where network expansion costs may exceed expected revenues. Minimum subsidy auctions can use small subsidies to stimulate private sector investment to fill this access gap and meet universal access policy goals. This paper reviews one such minimum subsidy auction project in Nepal, through which telecommunications service is now being rolled out to about 4 million people who have never before had it.