The previous chapters have outlined the need to build both telecommunications and data center infrastructure, digital skills and also digital businesses in the developing economies and the LDCs, LLDCs and SIDS to close the digital divide.

Closing the connectivity gap requires accelerated investment to ensure that the underserved countries does not end up with a lesser quality of experience than is available across the developed world. What is evident is that there is a funding gap. It is also apparent that existing models of funding and distribution are insufficient to fill the gap. For example, traditional models for universal service and access funds (USAF) – which are designed to take contributions only from nationally licensed network operators and issue grants to operators to build infrastructure in underserved areas – are known to be inadequate.

There is a need to examine ways to augment and expand on the current financing and investment models. This approach requires new paradigms including:

  • broadening the base of contributors
  • ensuring that all who derive benefits from the digital economy, as consumers or as producers contribute objectively, equitably, and fairly towards connecting the offline
  • for such contributions to be made by all ecosystem players, considering the new realities of the disaggregation of digital service provision and, therefore, revenue generation from underlying network infrastructure investments
  • making such contributions sustainable and predictable; and
  • for such contributions to be managed efficiently and disbursed in a timely and prioritized manner.

What's covered in this Focus Area