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Regional Economics: Theory and Practice
 

A model to bridge the digital divide in small remote locations through public-private partnership

Vol. 14, Iss. 8, AUGUST 2016

PDF  Article PDF Version

Received: 28 April 2016

Received in revised form: 12 May 2016

Accepted: 19 May 2016

Available online: 16 August 2016

Subject Heading: SPATIAL ECONOMICS

JEL Classification: O18, R11

Pages: 19-32

Sharif'yanov T.F. Institute of Socio-Economic Research, Ufa Science Center of RAS, Ufa, Republic of Bashkortostan, Russian Federation
timur.sharifyanov@gmail.com

Gainanov D.A. Institute of Socio-Economic Research, Ufa Science Center of RAS, Ufa, Republic of Bashkortostan, Russian Federation
isei@anrb.ru

Subject The article deals with the problem of bridging the digital disparity between urban and rural residents in low population density and vastness of the territories.
Objectives The paper aims to develop a model to overcome the digital divide between urban and rural populations. The model promises to exceed the current model in the Russian Federation on the proliferation of universal communication services, consumer properties of global network access services, and the volume of investment expenditure saving of the State Universal Service Fund.
Methods The study uses a comparative method, analysis of international best practices in the implementation of infrastructure projects and sector regulation, and the differentiation of universal communication services.
Results We have developed and now present a model for bridging the digital divide between urban and rural areas through public-private partnership. Also, we have analyzed and show a concrete way to implement the developed model, and we justified its key structural characteristics.
Conclusions We conclude that to eliminate the digital divide between urban and rural populations, it is necessary to use such forms of public-private partnerships that form the economic motivation of businesses to implement cost-effective investments in development of telecommunications infrastructure in rural areas without increasing public investment. This partnership will provide a large area access to the global network and best features product.

Keywords: digital gap, small settlement, rural area, ICT infrastructure, public-private partnership, social disintegration

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