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Welfare Effects of Introducing Competition in the Telecom Sector in Djibouti / Decoster, Xavier Stephane.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Decoster, Xavier Stephane.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Digital Economy.
- Inequality.
- Information and Communication Technologies.
- Information Technology.
- Market Structure.
- Poverty Reduction.
- Telecom.
- Welfare.
- Local Subjects:
- Digital Economy.
- Inequality.
- Information and Communication Technologies.
- Information Technology.
- Market Structure.
- Poverty Reduction.
- Telecom.
- Welfare.
- Physical Description:
- 1 online resource (17 pages)
- Place of Publication:
- Washington, D.C. : The World Bank, 2019.
- System Details:
- data file
- Summary:
- Djibouti is very well placed, as a landing site of undersea fiber optic cables, to benefit from the digital economy. However, the prevalence of a single national telecom operator in the country has stifled service delivery and innovation in the telecom sector. Mobile broadband coverage and access to internet in Djibouti in 2018 remains below that of many Sub-Saharan African countries. This paper simulates the impact of the introduction of competition on the telecom sector's prices and its implications for households' welfare. The analysis finds important gains in welfare among current users of telecom services, with the largest gains going to the richest households. On the extensive margin, the analysis also finds a higher likelihood of take up of telecom services across the consumption distribution but skewed toward the rich. More work is needed to understand the implications of changes in the telecom sector, especially as greater access may lead to more unequal access, at least in the short term.
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