37537 noTE NO. 1 – APRIL 2006 GRIDLINES Sharing knowledge, experiences, and innovations in public-private partnerships in infrastructure Public Disclosure Authorized Transforming telecoms in Afghanistan Expanding affordable access by introducing competition
Bhavna Bhatia and Neeraj Gupta
fghanistan has transformed its tele- None of these things would have been possi- communications from a fragmented ble just a few years ago. After the war in 2002 system serving few people to a Afghanistan’s telecommunications system was A small, fragmented, and dilapidated. The five major modern one putting Afghans in touch with cities had a mere 57,000 lines. The capital city, one another and with the global economy— Kabul, had fixed analogue, fixed digital, and wire- all in just a few years. After the war in 2002
Public Disclosure Authorized less digital networks—but none was connected to there were only 2 telephones for every 1,000 another. Even the government had difficulties in Afghans, and communicating between prov- communicating: poor communications links with inces was almost impossible, even for the the provinces meant that central ministries had to government. Today there are more than a transmit most information by paper or in face-to- million mobile subscribers with national and face meetings. global access. The credit goes to the govern- Recognizing that telecommunications would be crit- ment. Recognizing that telecommunications ical to rebuilding the country, the government made would be crucial to rebuilding the country, the developing the sector a high priority. It took early government acted quickly to promote private steps to promote private entry, focusing on getting entry—and mobile operators responded. This the policy and regulatory framework right. Its efforts experience demonstrates that even in a poor, appear to have paid off.
Public Disclosure Authorized war-torn environment the right policy and regulatory framework can lead to rapid roll- Converting policy into action out of competitive wireless services. The government moved quickly to approve a Tele- communications and Internet Policy in 2003. Aimed Today in Afghanistan people are using telecom- at modernizing and rapidly expanding telecommu- munications to offer new services and to do nications networks and providing universal access to business in new ways that boost income and a range of affordable services across the country, the productivity. A female journalist in Kabul hosts policy centered on legal, institutional, and regula- a phone-in radio program, fielding calls from tory reforms to accelerate the sector’s development. women all over the country seeking counsel- It strongly endorsed private sector participation and ing. A carpet merchant in Kabul uses his mobile transparent, market-based competition (box 1). 00)!&