Region: Latin America and Caribbean
Country: Global / Non-Specific
Topics: Procurement
Keywords: Subsidy
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Document Details:
This is an important case study on ICT universal access provision, it shows an innovative bidding process that allowed telecom universal access in Peru.
“FITEL in Peru offers an early and successful example of a universal access fund adopting an innovative approach to achieving access in rural areas, now widely replicated: the lowest-subsidy auction. This is an efficient mechanism for minimizing the subsidy required for commercial telecoms companies to extend the network into non-commercial areas, by awarding the contract to the bidder seeking the lowest subsidy. Despite shortcomings, this pioneering program brought a number of social benefits, and activities have since expanded from public telephony to include internet access.”
Updated: August 25, 2020