“Sender-pays” rule doesn’t necessarily increase telecom investment

“Sender-pays” rule doesn’t necessarily increase telecom investment | Ars Technica: ""My results contradict the hypothesis that the ability to charge more for international Internet traffic is all that is needed to build out telecommunications infrastructure in poor countries," Dourado concludes. "High international telephone collection rates have not led to greater buildout and adoption of telecommunications infrastructure in the past two decades. It seems unlikely, therefore, that adopting a sender-pays model for Internet traffic would increase buildout of Internet infrastructure today."
Rather, Dourado suggests the quality of a nation's telecommunications network is dependent on the quality of its domestic institutions. Some countries have telecommunications industries that efficiently put new revenues to work on network improvements. Other countries have corrupt or incompetent telecommunications incumbents that will upgrade their networks slowly no matter how much money they're given. He argues that regulatory reforms, not more cash, are needed to improve global network quality." 'via Blog this'