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Policy options for digital infrastructure strategies: A simulation model for broadband universal service in Africa

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  • Edward Oughton

Abstract

Internet access is essential for economic development and helping to deliver the Sustainable Development Goals, especially as even basic broadband can revolutionize available economic opportunities. Yet, more than one billion people still live without internet access. Governments must make strategic choices to connect these citizens, but currently have few independent, transparent and scientifically reproducible assessments to rely on. This paper develops open-source software to test broadband universal service strategies which meet the 10 Mbps target being considered by the UN Broadband Commission. The private and government costs of different infrastructure decisions are quantified in six East and West African countries (C\^ote D`Ivoire, Mali, Senegal, Kenya, Tanzania and Uganda). The results provide strong evidence that `leapfrogging` straight to 4G in unconnected areas is the least-cost option for providing broadband universal service, with savings between 13-51% over 3G. The results also demonstrate how the extraction of spectrum and tax revenues in unviable markets provide no net benefit, as for every $1 taken in revenue, a $1 infrastructure subsidy is required from government to achieve broadband universal service. Importantly, the use of a Shared Rural Network in unviable locations provides impressive cost savings (up to 78%), while retaining the benefits of dynamic infrastructure competition in viable urban and suburban areas. This paper provides evidence to design national and international policies aimed at broadband universal service.

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  • Edward Oughton, 2021. "Policy options for digital infrastructure strategies: A simulation model for broadband universal service in Africa," Papers 2102.03561, arXiv.org.
    • Handle: RePEc:arx:papers:2102.03561
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    1. Lei Fan & Yunyun Zhang & Meilin Jin & Qiang Ma & Jing Zhao, 2022. "Does New Digital Infrastructure Promote the Transformation of the Energy Structure? The Perspective of China’s Energy Industry Chain," Energies, MDPI, vol. 15(23), pages 1-18, November.
    2. Oughton, Edward J. & Comini, Niccolò & Foster, Vivien & Hall, Jim W., 2022. "Policy choices can help keep 4G and 5G universal broadband affordable," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    3. Huaiyue Wang & Peter C. Coyte & Weiwei Shi & Xu Zong & Renyao Zhong, 2023. "Social Governance and Sustainable Development in Elderly Services: Innovative Models, Strategies, and Stakeholder Perspectives," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    4. Edward J. Oughton & Ashutosh Jha, 2021. "Supportive 5G Infrastructure Policies are Essential for Universal 6G: Assessment using an Open-source Techno-economic Simulation Model utilizing Remote Sensing," Papers 2102.08086, arXiv.org, revised Jun 2021.

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