INTERCONNECTION PRICING AND RURAL INFRASTRUCTURE BUILD-OUT: POLICY OPTIONS 1 Final draft accounting for second round of comments—30 October 2001

Abstract

SUMMARY: This note suggests an interim approach to interconnection pricing designed to help economies that have made commitments to quickly regulate interconnection pricing in telecommunications. Some effort has been made to help reconcile conflicting objectives that exist in many developing economies and it is taken as given that very little information is available to the regulator in the short term. Nonlinear interconnection tariffs are recommended. These allow fixed costs to be recovered over a broader range of products. One variant of our proposals includes an incentive scheme that may help in speeding rural infrastructure development. 1 Development of this paper has been funded by Asia-Pacific Economic Cooperation, which consists o

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