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funding even if they are not necessarily the • Targets need to distinguish between rural and
best-equipped commercial operators. This urban areas. It is more likely that urban areas
may dissuade private-sector investment in will require higher-speed services than rural
broadband infrastructure. areas, but greater funding will be required in
rural areas.
• Market structure and regulatory
effectiveness: A market where a dominant • Targets need to be realistic and achievable
operator is not required to provide wholesale, rather than being over-optimistic and over-
non-discriminatory open access to its network ambitious. Otherwise, authorities will not
may see delayed broadband development be able to gauge the real success of the
or unnecessary duplication of broadband broadband project.
infrastructure.
Coverage targets can be included in mobile
Governments and regulators should consider these spectrum licences or in fixed network licences, so
aspects in the implementation and design of their investors need to undertake a detailed assessment
national broadband plans. of the targets in order to determine the cost of
acheiving them. Investors also need to assess
whether coverage targets are even achievable
1.4.2 Development of broadband targets so they don’t commit to a project that cannot be
delivered successfully.
Another factor that often influences the
implementation of broadband projects relates to
how governments and regulators develop their 1.4.3 Open access networks
broadband targets and their understanding of
the costs and funding requirements to support Open access networks are another vital aspect of
those investments. Many managing authorities, implementing broadband projects, particularly
particularly in developing markets, have in promoting competiveness and fairness and,
developed broadband targets that are simply ultimately, in reducing duplicative infrastructure.
too aggressive, given current levels of network The mandate to open access to networks can
investment and the relatively low levels of ensure that operators have effective, non-
Internet maturity in those economies. discriminatory and transparent access to
wholesale networks.
Well-defined and realistic broadband targets
will enable a better understanding of the range The concept of "open access" has two dimensions:
of technologies required to meet those targets an operational one and a technical one. At the
and a more accurate prediction of deployment operational level, access must be:
costs. Knowing the costs then allows managing
authorities to establish the funding needs • Effective – it should provide the access
and operators can then set their investment services requested without undue burdens
requirements. In some cases, this can be an such as onerous processes or overheads;
iterative process, in which targets are revised until
an optimum balance is achieved between optimal • Transparent – it should be clear how to use
speed and coverage targets and the availability of the access services, and they must be provided
funding. efficiently; and

Governments, therefore, can adopt the following • Non-discriminatory – It should be possible to
principles in defining their broadband targets: demonstrate – possibily through some level of
separate management between wholesale and
• Targets should be defined progressively to retail operations – that services are provided
increase in accordance with market trends in a non-discriminatory way. There also should
for the next ten years. The targets should be a mechanism for recourse if non-price
define the broadband speed and coverage (by discrimination is suspected.
number of business and residential premises)
targets over that period.

20 Trends in Telecommunication Reform 2016