Overview

Rural telecommunications are usually believed to be unprofitable and therefore chronically under-invested. The author challenges this view and sets out to present reasons why regulators should consider implementing fairer cost-based interconnection arrangements between urban and rural network operators, which could significantly improve the business case for rural network operators. Specifically, a regime of geographically de-averaged asymmetric termination charges that reflect the higher costs rural operators face is proposed. A wide range of related issues are investigated before the author concludes that asymmetric termination charges could be implemented practically.

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