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Subscriber financing of telecommunications investment

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  • Gellerman, Robert F.

Abstract

This article describes a system of subscriber financing of investment in the telecommunications industry, which has proved highly successful in Japan and Brazil. In those countries, new subscribers were required to buy bonds or shares as well as paying a telephone installation charge. The capital raised was used to fund construction and improvement of telecommunications facilities. The article examines the details of the financing plans in Japan and Brazil, and the results for the industry and for subscribers. Subscriber financing is recommended as a useful method of raising sufficient and assured capital to fund a carefully planned telecommunications system, especially in developing countries where national priorities for resources may be in other sectors.

Suggested Citation

  • Gellerman, Robert F., 1986. "Subscriber financing of telecommunications investment," Telecommunications Policy, Elsevier, vol. 10(1), pages 51-56, March.
    • Handle: RePEc:eee:telpol:v:10:y:1986:i:1:p:51-56
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