Ghana, other African countries could save $200m through cost-reducing telecom reforms
The World Bank’s recent report on the potential cost savings and benefits of policy reforms related to internet access in six African countries has garnered significant attention from policymakers and industry experts alike. According to the report, cost-reducing policy reforms focused on spectrum, infrastructure sharing, and taxation could save up to 10-20 percent of the cost required to achieve near-universal availability of internet access in the studied countries, resulting in over US$200 million in savings for governments.
The potential cost savings resulting from policy reforms in the telecommunications sector have been a topic of much discussion, with policymakers and industry stakeholders searching for ways to expand access to high-quality internet services while keeping costs under control. The World Bank’s report offers a promising avenue for achieving these goals, suggesting that regulatory reforms focused on spectrum allocation, infrastructure sharing, and taxation could lead to significant savings for governments and lower costs for consumers.
However, the report also notes that targeted subsidies and financing will be necessary to incentivize universal access and service in areas that are not commercially viable after implementing regulatory reforms. This is a critical issue, as expanding internet access to remote and rural areas is often challenging and requires significant investment.
Despite these challenges, the report highlights the potential benefits of demand-side policies for expanding access to high-quality internet services. According to the report, increasing potential 4G use in uncovered areas to 40 percent could make expansion commercially viable and result in near-universal availability of internet access. This finding underscores the importance of demand-side programs in not only expanding use but also boosting coverage and ensuring that high-quality internet services are available to all.
Moreover, the report emphasizes the importance of transparent, pro-competition rules for upgrading internet exchange points and for accessing data centers and cloud computing to help drive down costs and ensure affordable availability of data infrastructure. As internet access becomes increasingly essential for economic growth and social development, it is crucial that policymakers and industry stakeholders work together to create an environment that fosters innovation and investment in the telecommunications sector.
The World Bank’s report offers valuable insights into the potential cost savings and benefits of policy reforms related to internet access in African countries. While challenges remain, including the need for targeted subsidies and financing to incentivize universal access and service in remote and rural areas, the report highlights the importance of demand-side programs, transparent, pro-competition rules, and regulatory reforms focused on spectrum, infrastructure sharing, and taxation in expanding access to high-quality internet services. As policymakers and industry stakeholders continue to work towards achieving universal access to the internet, the World Bank’s report provides a useful roadmap for achieving this goal.
