Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth

Limited competition hinders the optimal use of telecommunication services in the Dominican Republic, which lags peer countries in mobile subscriptions and internet penetration. Despite recent reforms designed to enhance competition, the telecommuni...

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Main Author: World Bank
Format: Policy Note
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/203161623989071011/Dominican-Republic-Leveraging-Competition-in-the-Telecom-Sector-to-Accelerate-Economic-Growth
http://hdl.handle.net/10986/35859
id okr-10986-35859
recordtype oai_dc
spelling okr-10986-358592021-06-30T05:10:43Z Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth World Bank TELECOMMUNICATIONS VALUE CHAIN LICENSING TARIFFS COMPETITION POLICY MARKET COMPETITION Limited competition hinders the optimal use of telecommunication services in the Dominican Republic, which lags peer countries in mobile subscriptions and internet penetration. Despite recent reforms designed to enhance competition, the telecommunications sector remains dominated by a small number of companies. In addition, the antimonopoly policy is perceived to be weak compared to regional peers. High infrastructure costs limit the economic viability of replicating key facilities, creating bottlenecks. Fixed telecom prices have remained largely unresponsive to changes in demand over the last eight years. Moreover, prices for both mobile communications and fixed broadband are higher in the DR than in peer countries. Following the World Bank Group’s Markets and Competition Policy Assessment Toolkit (MCPAT), this policy note provides a brief overview of key bottlenecks affecting the telecommunications sector, as well as key pro-competition reforms that could improve the regulatory landscape. Due to its inherent characteristics, the telecommunications markets, fixed, mobile and internet, in DR are concentrated. Currently, there are three main operators in the fixed, mobile and internet markets, with few smaller operators having a residual market share in the fixed and internet markets. While market concentration is common in the telecommunication sector in many countries, the interaction between market characteristics and the regulatory framework for telecommunications is key to yield efficient market outcomes in terms of prices, quality and access to services. 2021-06-29T15:43:20Z 2021-06-29T15:43:20Z 2021-01 Policy Note http://documents.worldbank.org/curated/en/203161623989071011/Dominican-Republic-Leveraging-Competition-in-the-Telecom-Sector-to-Accelerate-Economic-Growth http://hdl.handle.net/10986/35859 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note Latin America & Caribbean Dominican Republic
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic TELECOMMUNICATIONS
VALUE CHAIN
LICENSING
TARIFFS
COMPETITION POLICY
MARKET COMPETITION
spellingShingle TELECOMMUNICATIONS
VALUE CHAIN
LICENSING
TARIFFS
COMPETITION POLICY
MARKET COMPETITION
World Bank
Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth
geographic_facet Latin America & Caribbean
Dominican Republic
description Limited competition hinders the optimal use of telecommunication services in the Dominican Republic, which lags peer countries in mobile subscriptions and internet penetration. Despite recent reforms designed to enhance competition, the telecommunications sector remains dominated by a small number of companies. In addition, the antimonopoly policy is perceived to be weak compared to regional peers. High infrastructure costs limit the economic viability of replicating key facilities, creating bottlenecks. Fixed telecom prices have remained largely unresponsive to changes in demand over the last eight years. Moreover, prices for both mobile communications and fixed broadband are higher in the DR than in peer countries. Following the World Bank Group’s Markets and Competition Policy Assessment Toolkit (MCPAT), this policy note provides a brief overview of key bottlenecks affecting the telecommunications sector, as well as key pro-competition reforms that could improve the regulatory landscape. Due to its inherent characteristics, the telecommunications markets, fixed, mobile and internet, in DR are concentrated. Currently, there are three main operators in the fixed, mobile and internet markets, with few smaller operators having a residual market share in the fixed and internet markets. While market concentration is common in the telecommunication sector in many countries, the interaction between market characteristics and the regulatory framework for telecommunications is key to yield efficient market outcomes in terms of prices, quality and access to services.
format Policy Note
author World Bank
author_facet World Bank
author_sort World Bank
title Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth
title_short Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth
title_full Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth
title_fullStr Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth
title_full_unstemmed Dominican Republic : Leveraging Competition in the Telecom Sector to Accelerate Economic Growth
title_sort dominican republic : leveraging competition in the telecom sector to accelerate economic growth
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/203161623989071011/Dominican-Republic-Leveraging-Competition-in-the-Telecom-Sector-to-Accelerate-Economic-Growth
http://hdl.handle.net/10986/35859
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