Regional structure and telecommunications planning

The general role of telecommunications in economic development has been recognized, but there remain some important specific issues in matching telecommunications planning to development goals. The author suggests a new approach, based on models relating regional structure to telecommunications demand. Data, which are readily available, on populations in places and rural areas within a region are used to derive a regional structure composed of places and the links between them. These links are found to be very closely related to telecommunications demand. This article suggests that telecommunications and development planners in the Third World should pay particular attention to ensuring that all the links between places in a region are served, and that the models presented here could form the basis for suitable planning criteria.     

Digital divide or digital opportunity in the Mississippi Delta region of the US

This study analyzes the interdependence of telecommunications manufacturing, services, and user industries in the Mississippi Delta region of the US to understand the social and economic prospects of poorer rural areas of the US as advanced technologies rapidly proliferate. An underlying assumption is that telecommunications industries should not be viewed only by the employment they directly support; they should also be analyzed in terms of their linkages to other industries and how those linkages influence the competitiveness and growth prospects of businesses and public institutions in the region by building a capable community of technology users. The absence of leading telecom manufacturing and service firms in rural Delta counties together with low levels of connectivity suggest that digital divide problems are very real for the region. The central economic development challenge should be to ensure that rural businesses, government, health care, education, and non-profit institutions gain access to an advanced telecommunications infrastructure and that they develop the capacity to leverage this access to enhance their performance and expand their reach.     

Telecommunications development in Asia-Pacific : The case for a new Australian role

This article describes the role of Australia in economic cooperation and telecommunications development in the Asia-Pacific region, particularly Asia. Australia's economic imperative focuses on north-east Asia while targeting markets for telecommunications in the relatively poorer nations of south-east Asia. A new role is advocated for Australia to take the Asia-Pacific Economic Cooperation forum it instigated beyond the purpose of economic cooperation directly into the cultural and human realm. Australia is challenged to use the new communications technologies to facilitate an active, shared learning process which could move Asia-Pacific into a new global order. A case is put for research on the use and impacts of the new telecommunications technologies in the service of humankind.     

APEC: steps to harmonising regional telecom policy

In spite of initial pessimistic analysis and observations, APEC has made sustained and collective efforts to overcome huge disparities in political, economic and cultural systems, and has achieved significant results in harmonising telecommunications policy and market liberalisation. This paper analyses how APEC member economies have overcome difficulties and have created unique approaches to establishing consensus and liberalising the telecommunications market in the region. Despite the current economic turmoil, APEC leaders are continuing in their efforts to advance the Asia Pacific Information Society (APIS). This paper also provides some perspectives on further development for the future.     

The new communication age in Japan

Moriya Koyama, Japanese Vice-Minester of Posts and Telecommunications, outlines the need for and format of the recent reforms in Japan's telecommunications. Importantly, the principle of competition has been introduced throughout Japanese telecommunications, with private enterprises now able to provide main categories of service. The principles of impartiality between domestic and foreign suppliers and of fairness in competition have been enshrined in the reform. Further, Japan wishes to promote cooperation in the Pacific basin area to develop economic growth throughout the region.     

Telecommunications and economic development in Singapore

The existing research of aggregate statistical analysis on the relationship between telecommunications and economic development is largely organized around the hypothesis that telephone growth fosters economic development. Although considerable evidence supports that hypothesis, there is also a growing realization that the growth of telecommunications, in turn, requires a sound economy. The existing research, however, ignores the reciprocal relationship between these two variables. Employing Singapore data, this article formulates a simultaneous equation model to assess the reciprocal relationship between telecommunications and economic development. These data support the reciprocal relationship hypothesis. Policy implications of the findings are also discussed.     

Telecommunications models: Planning for regional development in LDCs

The aim of telecommunications policy in the less developed countries should be to contribute to general development goals, but the links between economic development and telecommunications are not clearly understood. The authors suggest a dual approach to this problem. First, this involves the construction of models of demand based on the interaction between regional economic development and telecommunications use. Second, corporate models are required to explore the feasibility of particular supply strategies. The progress of practical work in these areas is described and includes the results of some specific research in Kenya.     

Comparative research on regional regulators’ associations: A theory-driven path for progress

Since the 1990s regional economic communities have been increasingly involved in the development of model telecommunications policies and regulations. Through semi-independent regional regulators’ associations, these communities aim to harmonize telecommunications policy and regulation across member states in hopes of stimulating cross-border investments and market development. To fully understand the role and effects of these administrative bodies, analyses are needed within and between a variety of regions. The research described herein facilitates such analyses by providing a series of theoretically derived propositions developed with reference to a number of regions including the Organization of Eastern Caribbean States (OECS), the Southern African Development Community (SADC), and the European Union (EU).     

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).     

The power of local information

The author argues that telecommunications efforts too often tend to stress distant connections. The local informative contacts are important, and should be given a chance in future systems. The argument presented to support this view includes the specific example of the TERESE project (Telecommunications and Rural Development in Sweden). This publically funded project uses narrowband communication, including computer conferencing, to stress economic and social identity in a region in the far north of Sweden. Details of continuing regional efforts are given.     

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.     

Telecommunications and economic development – The 21st century: Making the evidence stronger

A review of the literature on the relation between telecommunications and economic development published since the turn of this century is undertaken. Two stages have been considered: until 2008, most contributions continued to examine the role of telecommunications taken together; since 2009, the impact of broadband –and, to a lesser extent, of mobile communications– dominates the research agenda. All in all, the role of telecommunications as a catalyst to leverage economic growth has been conclusively proven over the years. Taking into consideration the shortcomings of previous research, suggestions for future work are also provided.     

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.     

The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis

The telecommunications industry has a great ripple effect on the overall national economy. However, there is no consensus about what is the optimal regulation policy for the telecommunications industry. Regulations on the telecommunications industry are different by region (i.e. United States, European Union and Asia). A number of studies have been conducted on comparative efficiency analysis for different policies that apply stochastic frontier analysis or data envelope analysis. However, these comparative studies are inappropriate because the production functions for each region are not identical. Thus, this paper addresses meta-frontier methodology, which can reflect differences in production functions. The results indicate that the United States has the highest meta-frontier efficiency in contrast to previous research findings.     

Communication satellites for rural service: Problems and potentials

The author discusses three interrelated facets of the problem and potentials of communication satellites for rural development. The first concerns the nature of the needs for rural telecommunications, and differences from urban telecommunications needs. The second facet is the technical and economic nature of satellites, compared to other technologies, as it relates to the task of meeting rural needs within rather severe economic constraints. Finally, a set of policy issues emerges from the review of technical and economic characteristics in the context of rural needs.     

The development of information infrastructure in Hong Kong

Given its geographical advantage and economic integration with mainland China, Hong Kong has naturally become a major communications centre in the Asia-Pacific region. A growing number of international telecommunications and broadcasting companies are establishing business relations with Hong Kong. Hong Kong has also become the first place in the world to launch video-on-demand service. Although these companies are equipped with new technology, their developments have been impeded by the policy inertia of the Hong Kong Government. The objectives of this paper are to highlight some of the regulatory issues posed by the new technology and to make policy recommendations for the removal of the structural barriers impeding Hong Kong’s information infrastructure development.     

Productivity analysis of the telecommunications sector in China

This paper applies the data envelopment analysis (DEA) approach to measure the productivity performance of China's telecommunications sector at the provincial level. The results indicate that the efficiency scores for different provinces and regions are diverse: the efficiency scores of the provinces in the eastern region are significantly higher than those in the central and western regions. The differences in efficiency scores are mainly due to the differences in the operating environments of different provinces, rather than the efficiency performance of telecommunications enterprises. The results also suggest that labour redundancy and excess capacity of long-distance optical cable lines are major problems in China's telecommunications sector. After a period of rapid growth in investment and number of subscribers, it is time for the telecommunications sector to consolidate and to put more emphasis on productivity growth in order to meet the challenges posed by the World Trade Organization (WTO) commitments.     

Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on?

Indonesia is currently enjoying rapid development in the telecommunications sector despite the economy having been heavily dependent for almost four decades on the two largest sectors: the manufacturing industry and trade. The telecommunications sector has played an important role in stimulating economic growth in the country during the last few years, with an annual growth rate higher than that of other sectors. This contribution is supported to a great extent by the rapid diffusion of telephony, in particular cellular telephony, as the number of subscribers increased from just 2.1 million in 1999 to 170 million in 2011. Previous studies investigating the impact of the telecommunications sector on the economy aggregate the impact of the sectors on Gross Domestic Product (GDP) without further scrutiny of what sources of growth telecommunications has contributed. Hence, an interesting question arises as to whether the achievement of cellular diffusion is also followed by structural change in the telecommunications sector. That said, this study aims to decompose the output of telecommunications into several sources of growth: domestic final demand, export effect, import substitution effect and technological coefficient effect. A particular interest in this study is to compare the source of growth concerning domestic final demand and the technological coefficient effect. The main tool for analysis in this study is the Input–Output (IO) method, while the time series of the investigation covers the period 1975–2008, allowing comparison of structural changes in the telecommunications sector between the pre- and post-cellular eras. The study found that the coefficient multiplier of the telecommunications sector, which was approximately 1.8 during the 1980s, had decreased to only 1.3 by the end of 2008. Consequently, the final demand from the telecommunications sector contributed less to economic output in the late 2000s compared to the impact in the 1980. Moreover, the cellular era that started in the early 2000s also brought about a trend of changes in telecommunications output. While final demand remains very dominant, the technological coefficient effect has diminished as the source of telecommunications output. This finding indicates a lower ability of the telecommunications sector to build an inter-industry relationship with other sectors. A possible explanation for this result is the cellular uses which are much less related to business activities than that of fixed telephony dating back to the 1970s in Indonesia.     

Australia's telecom 2000

Telecom 2000 explores the implications of the growing interaction between telecommunications and society. The author outlines the main findings concerning Australia's social and economic future, the possible directions of telecommunications, and the policies and strategies recommended to guide its development through the coming decades.