Selection Step 3b: Components of an Appropriate Last Mile Connectivity Solution

Financial Viability

The financial viability of different forms of service provision depends on a number of factors. Affordability thresholds (if applied) and usage requirements (if applied) from the previous sections can serve as inputs for calculating financial viability. They can also be left out, depending on the ultimate goal of the intervention. Financial viability depends on a number of enabling factors and binding constraints, some of which are articulated here. It is essential to estimate the potential demand for connectivity service in order to determine whether the service will generate sufficient revenue to cover capital investments and ongoing operating expenses. On the supply side, service options will be determined by environmental / geographic limitations, technical considerations, pricing (of backhaul) and regulatory requirements and limitations.

Table 27: Components of financial viability assessments