The ITU and development assistance: North,South and the dynamics of the CCIs

The International Telecommunication Union (ITU), like other UN agencies, has been called upon to assist the developing countries in establishing a telecommunications infrastructure. This article charts the change of the ITU from being an organization concerned solely with matters of technical coordination to one which is involved in development assistance. The development of its various International Consultative Committees is also explained. The author argues that the developed countries have had to accept the change in the ITU's purpose demanded by its Third World members because of an imperative to consolidate the worldwide operation of telecommunications networks. As the industrialized nations' stake in those networks increases, the higher is the cost of breaking up the collective arrangements which make their operation possible.     

Financing and other issues in telecommunications development

Implementation of telecommunications infrastructure throughout developing countries is a prerequisite to national development. The fundamental question, argues Dr Parker, is how can developing countries pay for the capital investment in the necessary telecommunications equipment. The need is to encourage an institutional structure that can stimulate innovative, lower-cost appropriate rural telecommunications technologies without imposing excessive risks on the national telecommunications monopoly. With sucessful models to follow, it will be easier to achieve consensus between developing country borrowers, international lenders and telecommunications manufacturers.     

Telecommunications and economic development – The 20th century: The building of an evidence base

The literature on the relation between telecommunications and economic development published during the 20th century has been reviewed. It all began in 1963 with the publication of the Jipp curve. Over the twenty years that followed, there was hardly any noteworthy, at least academic, contribution. Already in the eighties, the debate was still focused towards the role of telecommunications in the integration of developing countries into the world economy. In the last decade of the century, subsequent research broadened the scope –the lack of an adequate telecommunication infrastructure is a serious drawback for any country–, and also made a qualitative and quantitative jump forward.     

Financing telecommunications for rural development

Evidence shows that there has been serious underinvestment in telecommunications facilities in developing countries (DCs). This article analyses the reasons for this neglect, and demonstrates that a major restrictive factor in the development of telecommunications facilities in DCs — particularly in rural areas — has been the absence of adequate foreign exchange financing. Through an analysis of three major mechanisms for financing investment — supplier credits, multilateral lending and bilateral lending — and of the policies of the major institutions involved, the article identifies those policies that will stimulate the expansion of rural telecommunications in DCs.     

Economic growth,telecommunications development and productivity growth of the telecommunications sector: Evidence around the world

This paper studies the relationships between economic growth, telecommunications development and productivity growth of the telecommunications sector in different countries and regions of the world. In particular, this study assesses the impact of mobile telecommunications on economic growth and telecommunications productivity. The results indicate that there is a bidirectional relationship between real gross domestic product (GDP) and telecommunications development (as measured by teledensity) for European and high-income countries. However, when the impact of mobile telecommunications development on economic growth is measured separately, the bi-directional relationship is no longer restricted to European and high-income countries. This study also finds that countries in the upper-middle income group have achieved a higher average total factor productivity (TFP) growth than other countries. Countries with competition and privatization in telecommunications have achieved a higher TFP growth than those without competition and privatization. The diffusion of mobile telecommunications services is found to be a significant factor that has improved the TFP growth of the telecommunications sector in Central and Eastern Europe (CEE).     

Regulation to deregulation: the telecommunications sector and industrialization : Evidence from the Pacific rim and basin

Evidence from the Pacific and elsewhere suggests that countries deregulate their telecommunications sectors as economic development proceeds. Theoretical considerations support this, since arguments for (against) deregulation are mostly applicable to industrialized (developing) countries. Several such arguments are surveyed. Actual instances of telecommunications deregulation in Pacific countries are also cited to confirm this hypothesis. The scarcity and simplicity of telecommunications in early development stages favour cooperative, regulated solutions; as technological progress makes services more abundant and varied, competitive, deregulated approaches become more attractive.     

Different paths to universal access: The impact of policy and regulation on broadband diffusion in the developed and developing worlds

The authors examine the broadband digital divide by analyzing the impact of policy and regulation on broadband Internet diffusion. Their multiple regression analysis shows factors that determine broadband diffusion in technologically developed countries do not necessarily have the same impact in less developed countries. They show that in technologically developed countries, there is greater broadband diffusion in countries that make a higher financial investment in information and communication technologies (ICTs), have effective governing practices at the national level, have higher levels of education, and are more urban. In technologically developing nations, a competitive telecommunications sector and higher investment in ICTs lead to greater broadband diffusion, with investment having an even larger impact in the developing world than in the developed world. In addition, stronger democratic political institutions, higher levels of national income and lower levels of income inequality increase diffusion, but the presence of a national telecommunications regulatory authority has a negative impact. These results suggest that the path to widespread availability and use of broadband requires different strategies depending on a nation's level of technological development.     

Communication technology transfer : Impact on economic development

International technology transfer is defined and described from the economics perspective, with emphasis on costs. Its role in economic development is discussed, including its impact on social values and the question of ‘appropriate’ technology for developing countries. Examples are provided for communications technology, particularly in the areas of telecommunications and satellite communications.     

An evaluation of China's evolving broadband policy: An ecosystem’s perspective

Although it is generally agreed that governments should have some roles in the development of broadband, questions about the specific role of governments remain unanswered, particularly from the perspective of developing countries. This paper evaluates China’s evolving broadband policy by developing a two-dimensional analytical framework, with the different stages of broadband development represented by columns and the four components of broadband ecosystem represented by rows. Generally speaking, China's telecommunications development has been driven by investments from government-allied entities and features a strong industrial policy. However, the Chinese government has chosen a somewhat soft-intervention approach in broadband development and relied on the market itself to grow by creating a competitive market structure. As the market has recently evolved to a certain degree of saturation, there is a seemingly shift of emphasis in China's broadband policy from infrastructure buildup and service provision to application creation and user demand stimulation. However, China’s broadband future is uncertain due to unsettled but important institutional and financial issues. Policy changes appear not to keep up with the broadband ecosystem evolution.     

‘Mainline’ telecommunications infrastructure, levels of development and economic growth: Evidence from a panel of developing countries

This paper assesses the growth impact of telecommunications infrastructure investment in developing countries by subjecting country-specific data on mainline tele-density and per capita growth to a Granger causality test within a panel cointegration framework. The results suggest that growth effects vary widely across country groupings reflecting different levels of development. Mainline tele-density and per capita growth strongly reinforce each other for countries that are relatively less developed. The reinforcement effect is even stronger for emerging countries that can be identified by their higher than average growth rates. In contrast, there is, at best, weak evidence of bi-directional causal links between the two variables for countries that are relatively more developed. These differences in the mainline tele-density and per capita growth relationships suggest that investment in telecommunications infrastructure, with its potential to generate high growth return, may serve as the critical tool for driving the growth and development process forward in the less developed countries.     

Telecommunications development in Israel: The growth of public services and lessons from developing countries

The article begins with a discussion of the importance of the public services sector in the development of a modern economy, with specific reference to the organization and growth of public services in Israel. While the telecommunications sector is becoming increasingly important in national economies, it is often mismanaged in developing countries and its profits are used to subsidize other areas of the economy, particularly the postal services, which are run at a loss. The author analyses the various reasons for the lack of effective telecommunications policies in developing countries, and concludes with a series of recommendations for Israel which arise from that analysis.     

Mexico's international telecommunications policy: Origins,the WTO dispute,and future challenges

Mexico is by far Latin America's largest trader and the country with the most free trade agreements. Notwithstanding the success of its trade policy, the liberalization of its telecommunications sector was limited and generated a dispute at the WTO. This article offers an overview of Mexico's trade policy, with special emphasis on its policy regarding trade in telecommunications services and the 2002–2004 Mexico–United States dispute over telecommunications at the WTO. The dispute is the first one over trade in telecommunications services at the WTO and has generated interest among many developed and developing countries.     

The transformation of the mobile telecommunications industry in Pakistan: A developing country perspective

This paper offers a rare insight into the reality of the mobile telecommunications market transformation in Pakistan. Our analytical framework treats the mobile telecommunications market as a complex socio-technical system. Specifically, we define the telecommunications market as being composed of technology standards and three sets of social actors that include government institutions, network and service providers, and users. In the case of Pakistan, these social actors together determine the adoption of standards and services, and thus shape the trajectory of the market change. Our case study provides evidence that a pro-competition policy is imperative for mobile telecommunications development in developing countries, and an independent regulator is critical in promoting technological innovation.     

On the role of telecommunications in development

Numerous studies document the relationship between telecommunications and economic development. The main types and relative merits of these are summarized. The paper argues that more of the same will do little to help promote accelerated telecommunications investment in developing countries as needed. Rather, the efforts should now mainly concentrate on conveying existing sector knowledge to governments and international agencies. The paper focuses on examples of simple, proven tools which can be used to supplement telecommunications project analysis for this purpose.     

Reaching out to remote and rural areas: Mobile satellite services and the role of Inmarsat

This paper analyses the problems faced by developing countries in extending telecommunications to remote and rural areas. It identifies some possible technical solutions using mobile satellite services, especially in specialized niche markets, but also ways in which telecommunications can be made more widely available to populations in rural and remote areas. Although means must be found to finance such development, the paper highlights the necessity of implementing policy and regulatory frameworks conducive to the availability of mobile satellite services.     

Politics and economics of telecom liberalization in India

The article describes the ideological background to the more than 40-year monopoly of the Department of Telecommunications over Indian telecommunications. It traces how the monopoly was eased between 1986 and 1991 and then how the government gave up its policy of central planning and control. It describes the adoption of the new National Telecom Policy (NTP) in 1994 and the difficulties of its implementation. In so doing, it highlights the lessons of demonopolization for other developing countries.     

Subscriber financing of telecommunications investment

This article describes a system of subscriber financing of investment in the telecommunications industry, which has proved highly successful in Japan and Brazil. In those countries, new subscribers were required to buy bonds or shares as well as paying a telephone installation charge. The capital raised was used to fund construction and improvement of telecommunications facilities. The article examines the details of the financing plans in Japan and Brazil, and the results for the industry and for subscribers. Subscriber financing is recommended as a useful method of raising sufficient and assured capital to fund a carefully planned telecommunications system, especially in developing countries where national priorities for resources may be in other sectors.     

Lowering barriers to agricultural exports through technical assistance

Sanitary and Phytosanitary (SPS) regulations imposed by the developed world, significantly reduce the export opportunities of developing countries. Under the SPS Agreement, developed countries are to provide technical assistance to developing countries, to help them meet SPS requirements. A survey of providers of technical assistance reveals, however, that assistance is allocated in an ad hoc manner. This article argues for a more systematic allocation of technical assistance to developing countries, based on relevant data and comparisons of benefits and costs of different kinds of capacity building. Data is presented which highlights the major problems of developing countries in exporting to the European Union and the United States.     

Telecommunications in the Pacific region: Impact of a new regime

In many developed countries there has recently been serious erosion of the monopoly position of national telecommunications authorities. Such authorities have long found difficulty in adjusting to the furious pace of electronics technology. The private sector may find less difficulty and should benefit as both user and provider of new information services. However, there are likely to be costs involved, and those who have traditionally made least use of telecommunications seem destined to bear the bulk of these costs. In developed countries, this may be unfortunate: in developing countries, the consequences could be much more serious.     

Strategies for high-technology equipment manufacturing in developing countries

The authors present a methodology to establish local manufacturing in a developing country with a modest telecommunications industry. The main focus of the article is on the analysis of high-technology equipment that can be applied to a large variety of computing, communications, and control systems. They conclude that with strategic planning the import content of electronic equipment can be reduced if the country in question shows potential for local manufacturing. This strategic planning requires commitments with local industry for technical assistance and three to five year purchasing programmes. For countries with a limited industrial background a manufacturing effort could be initiated through the establishment of assembly factories which in general make use of low local labour cost. A requirement for the transfer of technology to local industry must be established with these factories.