Nicaragua - Telecommunication Reform

The Project will help strengthen the policy and regulatory environment in the telecommunications sector and improve rural access to services by encouraging private investment in those areas. In particular, the Project wi ll support the development of a modern regulatory framework including the drafting and implementation of lega l, economic, and technical regulations related to tariff rebalancing, interconnection agreements, and technic al plans. In addition, support will be provided to strengthen and improve the autonomy of the regulatory age ncy with responsibility for sector regulation, planning, and policy. The Project will support the design and operations of a rural telecommunications development fund to provide incentives for private operators to pro vide telecommunications services in rural areas. Technical and financial support will also be provided to th e new regulator for the establishment and maintenance of a radio spectrum management system. The Project wil l fund Technical Assistance for the privatization of Empresa Nicaragü ense de Telecommunicaciones (ENITEL), and also measures to correct the computer programs of the telephone and data networks to overcome the year 2 000 problem.