Abstract
The Information and Communication Technology (ICT) sector is characterized by rapid changes in technology. The innovation in the ICT has shown its benefits in not only facilitating better communications, but also in fostering development. Therefore, ensuring proper incentives to the private sector for innovation or diffusion of technology is crucial. However, incentivizing the private players may be challenging in developing countries, where majority of the population requires cheap access. Thus, this paper analyses the extent to which developing countries can ensure incentivizing the providers of technology, without failing on their commitment to provide cheap access to the poor. The paper analyses Local Loop Unbundling (LLU) and Universal Service Obligation (USO) and suggests ways to ensure adequate investment without jeopardizing access. The framework chosen in this paper is to see the changing treatment of LLU and USO in mature jurisdictions, and then analyze the viability of these policies in the socio-economic settings of developing countries. The framework also takes note of changes in the ICT technology.
