roviders to offer services in anticipation of revenue from annual license fees and spectrum auctions. Carriers in many of these regions face additional problems in attempting to upgrade and expand their networks. Fraud and corruption by government officials is common in many countries and results in less money available for governments invest in infrastructure improvements at all levels, from basic road construction and maintenance (to facilitate rudimentary transportation) to the installation of advanced fiber-optic cabling (to connect mobile networks to one another and to the Internet). In addition, companies that are headquartered in countries that prohibit bribing busi- nesses or government officials often find that a pervasive culture of bribery in certain foreign markets makes it difficult for them to operate. If a potential customer or official expects gifts or entertainment as a condition of making a sale or granting a permit, companies that are not allowed to abide by those tactics will be at a disadvantage. Introduction Even with these obstacles, large multinational telephone companies have been attracted to countries with emerging economies where they hope that the vast num- bers of potential mobile customers will offer growth opportunities that will offset low ARPU. Multinationals often have the capital to build new networks that they are able to operate for years before the networks are profitable. This can sometimes freeze out smaller competitors who need to earn revenue faster and do not have the resources to bid on an adequate amount of spectrum or develop networks for nationwide service. Unlike most of Africa and India, rates for mobile services in Latin America, par- ticularly Brazil, are high because of the dominance of two major carriers, América Móvil and Telefónica. There is not enough competition in these countries to drive down mobile rates. Moreover, countries such as Brazil and Costa Rica have growing middle classes that are able to afford premium mobile services. Large multinationals al