Investment models and regulatory constraints for broadband backbone roll‐out in selected African countries

Enrico Calandro (Research Fellow at Research ICT Africa, Cape Town, South Africa)
Mpho Moyo (Researcher at Research ICT Africa, Cape Town, South Africa)

info

ISSN: 1463-6697

Publication date: 20 June 2012

Abstract

Purpose

This paper seeks to identify policy and regulatory bottlenecks that need to be overcome in order to stimulate private sector investment in backbone networks in selected African countries (Côte d'Ivoire, Ethiopia, Kenya, South Africa and Uganda).

Design/methodology/approach

It does so by exploring policy and regulatory frameworks and market structures that influence investment decisions on backbone infrastructure roll‐out; it investigates models and strategies adopted by the public sector to finance national backbone infrastructure; and it provides recommendations on how to stimulate private investment in backbone roll‐out by creating an enabling policy and regulatory environment.

Findings

Research findings show that the telecommunications sector in the selected African countries has witnessed the return of state‐led investment in the roll‐out of fibre backbones. The rationale for state‐led intervention has often been cited as market failure regarding investment in broadband backbone roll‐out. However, many of the policy and regulatory barriers to market entry remain, including protectionist legislation, which has limited private sector participation in investing in backbone.

Practical implications

The reality is that African governments are maintaining control over national backbones and, in some markets where the telecommunications infrastructure sector has been liberalised, the state‐owned operators may enter into direct competition with the private sector or may delay delivery by the private sector.

Originality/value

The value of the paper is that it provides evidence on how to improve the roll‐out and extension of national broadband backbone networks through the development of a policy and regulatory framework which facilitates private sector investment in this sector. The paper also makes recommendations to governments for the facilitation of private investment in backbone networks through the development of an enabling policy and regulatory environment.

Keywords

Citation

Calandro, E. and Moyo, M. (2012), "Investment models and regulatory constraints for broadband backbone roll‐out in selected African countries", info, Vol. 14 No. 4, pp. 21-35. https://doi.org/10.1108/14636691211240860

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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