Cooperative initiatives program : Polish rural telephone development project

cooperative models. The project is implemented by the National Telephone Cooperative Association (NTCA). Evaluation covers the period 1990-9/92. NTCA"s well-managed projects are exceeding objectives in given timeframes. The two project-assisted cooperatives, Poland"s only independent systems, are models of telephone service to rural areas and of member-owned, democratic business organizations (although their success will be fully determined only after further operating experience and an analysis to determine if revenues can cover debt service). NTCA volunteers have been effective in providing critical interventions for the establishment of these model systems. Bringing senior policy makers to the United States to see rural telephone cooperatives also has been essential to project success. Ample evidence suggests that the cooperatives have increased agricultural output by attracting agribusinesses to serviced areas. NTCA has responded well to unexpected developments in the evolving telecommunications environment in Poland; the organization has had an impact on national legislation and participated in a national commission to resolve impediments to rural telephone cooperatives. However, the state telephone monopoly is strenuously opposing competition and placing major obstacles in the way of independent operators. The monopoly particularly resists the cooperative form of organization because of its broad public and political support. NTCA has leveraged a considerable amount of additional funding, including a complementary competitive cooperative agreement from the Europe Bureau and major purchases of U.S. equipment using Export-Import Bank credits. Already the project has resulted in over $2 million in U.S. sales of telephone switches, remotes, and other equipment as well as local loans from a Polish bank and contributions from communes and others. NTCA does not endorse any particular type of U.S. telephone equipment, but it has a strong working relationship with Northern Telecom and has indirectly promoted this supplier because its equipment is suitable for small rural systems. Both model cooperatives use Northern Telecom equipment. The most pressing issue for replication of the models is securing long-term credit. NTCA is working with the World Bank towards undertaking a study for the creation of an REA-type financing mechanism for rural telephone systems. The following are lessons learned. (1) Working with local foundations has proven highly effective and plays an important role in helping resolve national policy and legislative issues. (2) New private sector options in Poland can be developed quickly where there is strong local and national leadership.