Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Broadband Internet and Household Welfare in Senegal

“…The importance of competitive environments in digital infrastructure is relevant in Senegal, where Orange-Sonatel was the only 4G provider up to 2018-19. The need for competition to exploit fully the potential of digital technologies is highlighted by studies showing that increased competition in digital infrastructure, such as a higher number of mobile operators and the reduction in the market power of broadband monopolies, has measurable impacts on welfare by reducing prices and incentivizing new entrants (Decoster et al 2019;Rodríguez-Castelán et al 2019).…”

Competition Reform and Household Welfare: A Microsimulation Analysis of the Telecommunication Sector in Ethiopia

“…The approach proposed in this paper complements Rodríguez-Castelán et al (2019) by simulating the likely welfare effects of greater competition among new consumers. It accomplishes this by building on the basic setting discussed in Decoster et al (2019), who estimate the potential uptake of competition reforms. The approach proposes to model consumer behavior, specifically the probability of adoption by new users based on observable sociodemographic characteristics and policy parameters.…”

How Do Digital Technologies Affect Household Welfare in Developing Countries? Evidence from Senegal

“…In poor countries, electricity access appears to be a key driver of internet adoption (Armey and Hosman 2016). Higher competition among digital service providers can reduce prices and allow new entrants to adopt internet services (Decoster et al 2019;Rodríguez-Castelán et al 2019;Rodríguez-Castelán, Araar, et al 2021). Competition appears to have had a positive and significant effect on cell phone coverage systems in Sub-Saharan Africa (Buys et al 2009;Howard and Mazaheri 2009).…”