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Developing countries apply numerous sector-specific taxes to telecommunications, whose buoyant revenues and formal enterprises provide a convenient “tax handle”. This paper explores whether there is an economic rationale for sector-specific taxes on telecommunications and, if so, what form they should take to balance the competing goals of promoting connectivity and mobilizing revenues. A survey of the literature finds that limited telecoms competition likely creates rents that could efficiently be taxed. We propose a “pecking order” of sector-specific taxes that could be levied in addition to standard income and value-added taxes, based on capturing rents and minimizing distortions. Taxes that target possible economic rents or profits are preferable, but their administrative challenges may necessitate reliance on service excises at the cost of higher consumer prices and lower connectivity. Taxes on capital inputs and consumer access, which distort production and restrict network access, should be avoided; so should tax incentives, which are not needed to attract foreign capital to tap a local market.
Alternative implementation strategies are also considered, with an eye to practicality for developing countries. It concludes that the concept is feasible, and the study further provides ideas for piloting the concept in a limited number of countries."--Jacket.
This publication views Africa in a global perspective, in economic, regulatory and technological terms. Arguments are offered for ensuring that Africa keeps pace with global technology as the rest of the world is gearing towards multimedia communications and the associated productivity gains.
The world economy has experienced an enormous growth the past 50 years. Yet the gap between the richest and the poorest countries has increased. There have been several attempts to explain the increased differences. Proponents of the endogenous growth theory claim that a technological revolution has created a new growth paradigm. Following the information technology revolution seen in the industrialised world in the 90s, information and communication technology has often been launched as a possible remedy for the slow or decelerating growth developing countries have faced. This paper seeks to explore the relationship between telecommunications development and economic growth by performing an econometrical analysis of 61 developing countries and 23 developed countries between 1990 and 1999. By estimating a simultaneous equation model where telecommunication infrastructure investments are endogenised into the aggregated economy and country specific fixed effects are included, simultaneous causality and spurious correlation are recognised. The results of the analysis indicate that there is a significant correlation between telecommunication and GDP growth. Overall, there seems to be larger growth effects from telecommunication development in developing countries than in developed countries, a result that contradicts earlier findings and the notion of network externalities. The report suggests that the indirect effects, i.e. the gain in productivity that other sectors experience as a result of development in the telecommunication sector, are more significant in developing countries, and this might explain the large growth effects found in these countries.
A little more than 3 billion people have access to basic mobile telephony, with 48% living close to or below the poverty line. These people, the so-called ‘mass market’, lack access to basic communications technology. An ongoing issue facing communications providers is how to facilitate and promote communications access to those who live in rural areas of developing economies. The authors utilize their considerable ‘hands on’ experience of working in successful telecommunications companies in order to address the challenges of creating, facilitating and maintaining sustainable telecommunications growth in developing nations. With this focus in mind the authors present a snapshot of these countries through real life case studies. Sustainable Telecoms Growth in Developing Economies: Presents innovative and sustainable business models to address telecommunications adoption in developing countries. Identifies the inherent drivers and barriers in the mass-market adoption of mobile services in developing economies. Discusses the impact and importance of telecoms in developing nations including customer needs and Internet-based services. Highlights the current state of communications in such markets. Includes real-world case studies and interviews with telecoms CEOs from all over the world. The author team provides decision makers, professionals, and application developers in IT, telecommunications and media with a thorough understanding of the current state and future evolution of sustainable telecommunications in developing countries. The book will also be of interest to advanced students in electrical engineering and telecommunications, analysts, and consultants with an interest in growing economies.
In rural telecommunications, network costs are known to be high, and the traditional consensus has been that many rural areas cannot be connected without subsidies. This report examines options for implementing a charge regime in developing countries which takes account of the relative cost differences between urban and rural networks. Issues discussed include: customer affordability; customer education and awareness; numbering plan and billing; the need for detailed cost models; distortions created by asymmetric termination charges, and alternative implementation strategies.
Telecommunications in Developing Countries (1990) stresses the importance of modern, micro electronics-based telecommunications for developing economies in providing a basic communications infrastructure for economic and industrial development and the springboard for new information technology activities. Although progress in telecommunications has so far been concentrated in the most advanced regions of the world, some developing countries can bypass older, less efficient forms of telecommunications and go straight to microelectronic technology. This book is the first to examine the challenges and difficulties facing developing countries in this field. extending existing theories of technology transfer and diffusion, Michael Hobday offers an explanation of the forces for change in the telecommunications industry. He then examines Brazil's experience in telecommunications, from developing the technology and building up a modern infrastructure to controlling multinational suppliers of equipment. Dr Hobday explains why Brazil's efforts in this area have succeeded, and offers lessons for other developing countries.
First Published in 1995. Routledge is an imprint of Taylor & Francis, an informa company.