Background information

The purpose of this discussion at the outset of the 2020 ITU-D Study Group 1 annual meeting is to explore concrete approaches and concepts that enable innovative financing mechanisms and business models in order to ensure sustainable investments and financing for digital connectivity.

Bridging the digital divide encompasses not only bringing access to the remaining 47 percent of the population, but ensuring meaningful connectivity to those who are currently not able to contribute to and reap the benefits of the digital economy. People living in rural areas are especially exposed as their lack to broadband access limits their ability to thrive in the digital economy. Different approaches and initiatives seek ways to bring affordable broadband access to all, however, much remains to be done.

Accelerated progress towards achieving the UN Sustainable Development Goals (SDGs) requires concerted and collective action by governments, private sector, development partners, municipalities, civil society stakeholders and individuals. Investing in digital connectivity to ensure that citizens who are not online, independent of ability, can leverage the benefits and opportunities of digital technologies, access and use, is in general perceived as complex and financially risky impeding return on investments. Robust and transparent governance mechanisms contribute to mitigate the financial risks in uneconomically viable projects where public subsidies (through USF, PPPs, other funds), and other modalities such as co- and shared investments, are necessary. A conducive enabling environment attracts the private sector to engage as investors and financiers, as well as developers, service providers and operators.

It is challenging to get things right to ensure the availability of sustainable financing to implement high quality digital infrastructure projects that allow for affordable, accessible and meaningful connectivity. The discussion seeks to inspire all the study Questions as they progress their work.