INDUSTRY STUDIES ASSOCATION WORKING PAPER SERIES Investing in Infrastructure in Developing Regions: Innovative Strategies and Policies By

“L’information est la clé de toutes les portes. ” (Information is the key to all doors.)-- woman using a telecentre in Timbuktu Recent innovations in technology and policy are significantly increasing access to basic telecommunications services in the developing world. For example, in most African countires, there are now more wireless lines than fixed lines; for many new subscribers, their mobile phone is their first and only phone. This dramatic growth in connectivity is due partly to the advantages of wireless technologies in fast deployment of new networks, but perhaps more to the innovations in regulation and policy that have fostered innovation. Where countries have introduced competition in wireless/mobile services, rates have come down, and innovative wireless carriers have introduced features such as “pay as you go ” using rechargeable cards, and inexpensive text messaging. The result has been dramatic growth in access to basic communications. However, access to broadband that would allow use of the Internet’s Worldwide Web and other advanced services, is still very limited and/or expensive in most of Africa. This paper examines how technological and regulatory innovations might bridge this broadband divide. The paper also explores how targeted subsidies may be used to increase broadband access