Privatization, competition, and best practices for telecom sector reform

Information and Communication Technologies (ICT) generate a wide range of social and economic externalities. Therefore, if ICT are not deployed and adopted within short periods of time, countries face significant social and economic opportunity costs. This paper provides empirical evidence in support of the importance of telecommunications sector reform to accelerate broadband deployment speed and adoption in the ICT sector to deliver social and economic impact. The theory of change put forward in this study establishes that privatization of incumbent telecommunications operators supports the introduction of competition and improved quality of regulations, which together condition the speed of technology migration, the amount of telecommunications capital spending and broadband penetration. In turn, all these three factors maximize economic impact and, ultimately, the development of the digital economy