TELECOMMUNICATIONS CHALLENGES IN DEVELOPING COUNTRIES-ASYMMETRIC INTERCONNECTION CHARGES FOR RURAL AREAS

Rural telecommunications are usually believed to be unprofitable and therefore chronically under-invested.

The author challenges this view and sets out to present reasons why regulators should consider implementing fairer cost-based interconnection arrangements between urban and rural network operators, which could significantly improve the business case for rural network operators.

Specifically, a regime of geographically de-averaged asymmetric termination charges that reflect the higher costs rural operators face is proposed.

A wide range of related issues are investigated before the author concludes that asymmetric termination charges could be implemented practically.