4a: Options for interventions - Introduction
As noted previously, there are three general types of interventions to increase universal coverage and service for internet connectivity. These three categories of interventions are also utilized in this Solutions Guide to group interventions that encourage last-mile connectivity service deployment.
The first category involves policy and regulatory interventions that expand economically feasible service provision (described here as market efficiency and expansion interventions). It encompasses actions that address market failure and limit the potential for private sector investment in service delivery.
The second category relates to one-time financing or limited subsidies that de-risk private investment (also described as smart subsidies). It contains a range of one-time public financing measures (and tax incentives) and is described in Step 4c.
The last category centres on recurring public financing in cases where service provision is not economically feasible, as the market offers insufficient return on private capital investment, and ongoing, recurring subsidies are needed in order to provide service. Step 4d describes the intervention options available.
Figure 36: Intervention distinctions for the various access gaps
Source: ITU Regulation Toolkit