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Access and Investment in the ICT Sector for Developing Countries

  • Vikas Kathuria EMAIL logo
Published/Copyright: September 11, 2015

Abstract

The Information and Communication Technology (ICT) sector is characterized by rapid changes in technology. The innovation in the ICT has shown its benefits in not only facilitating better communications, but also in fostering development. Therefore, ensuring proper incentives to the private sector for innovation or diffusion of technology is crucial. However, incentivizing the private players may be challenging in developing countries, where majority of the population requires cheap access. Thus, this paper analyses the extent to which developing countries can ensure incentivizing the providers of technology, without failing on their commitment to provide cheap access to the poor. The paper analyses Local Loop Unbundling (LLU) and Universal Service Obligation (USO) and suggests ways to ensure adequate investment without jeopardizing access. The framework chosen in this paper is to see the changing treatment of LLU and USO in mature jurisdictions, and then analyze the viability of these policies in the socio-economic settings of developing countries. The framework also takes note of changes in the ICT technology.

JEL: K21; K23; O31

Acknowledgements

I gratefully acknowledge the helpful comments of my supervisors Dr Pierre Larouche and Dr Morag Goodwin. Comments of the anonymous referees were very helpful. Thanks are also due to Dr, Rajat Kathuria and his team at Indian Council for Research on International Economic Relations (ICRIER), New Delhi.

Published Online: 2015-9-11
Published in Print: 2016-6-1

©2016 Law and Development Review

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