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1 Basic Definitions and Concepts ..................... 1 Universal access and universal service defined ............. 2 How can universal access be achieved? .................. .3 Two gaps to address ............... .................. . 3 The Universal Access Fund ........................... . 9 2 Basic Policy Formulation and Universal Access Development ................................... 12 Legal foundation .... .............................. 12 The role of the regulator ............................ . 13 Sector review and consultation .........................14 Framework for sector review - structural model for ICT ..... 14 Outcome: Policy objectives and actions ................... 21 3 Estimating Subsidy Requirements .................. 24 Initial viability model .................................24 Initial estimate of UAF-required capital accumulation ....... 28 4 Baseline Demand Analysis ........................ 34 The rural marketplace ............................... 35 Dem and field studies ................................ 37 Analysis and summary - outputs .................. ..... 43 5 Developing the Fund Strategy ..................... 44 Strategic zoning and licence or subsidy packaging ......... 44 Achieving a strategic balance in Uganda ................. 46 Other bidder incentives ............................... 50 Tariffs ........................ ........... .......... 51 Interconnection ....... ........... . ...... ........ . 52 6 Operating Principles, Organisation and Operations ... 54 Operating principles .............. ..... ............. . 54 Organisation of the Rural Communications Development Fund .................................. 56 Fund finances ....................................... 59 The Operating Manual ................................ 61 7 Subsidy Competition, Tendering and Contract Awards 63 Introduction .......................................63 Main programme and pilot procedures ................... 63 Level 1 tendering procedure ............................ 66 Level 2 tendering procedure .......................... . 72 Level 3 tendering procedure ......... .................. 73 Level 4 tendering procedure ............................ 74 Level 5 tendering procedure .......................... . 76 RCDF subsidy disbursement procedures .................. 78 8 Monitoring and Evaluation ....................... 79 The importance of monitoring .......................... 79 Evaluation of rural ICT projects .................. . . . . 82