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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.
First Published in 1995. Routledge is an imprint of Taylor & Francis, an informa company.
Telecommunications are increasingly recognized as a key component in the infrastructure of economic development. For many years, there were state-owned monopolies in the telecommunications sector. In transition economies, they were characterized by especially poor performance and high access deficits, as telecommunications were considered to be a non-profit-oriented production process intended to support the socio-economic superstructures. As a result, the starting point for the reform processes in transition countries was quite poor performed public monopolies, functioned under completely different circumstances as the peers in the market economies. The main question of this book is what the strategies for the successful future development of the telecommunications sector in transition countries are. The special focus is on Russia, the largest of the transition countries.
This book attempts to draw lessons from the experiences of developed as well as developing countries in carrying out telecommunications reform. Contributors come from academia, as well as from stakeholders in telecommunications policy in a dozen countries, mostly in the Asia-Pacific region. Globally, the telecommunications industry is undergoing major changes: technological advances in the form of a vast number of new digitised services, ownership shifts as state-owned carriers in many countries become fully or partly privatized, and a general transition from monopolistic to more competitive market environments. The economic and regulatory experiences derived from these changes are explored and analyzed using the USA, the UK, Australia and Singapore to represent developed and newly industrialized countries, and China, India, Indonesia, Malaysia, the Philippines, Sri Lanka, Thailand and Vietnam as examples of developing countries. The conclusions outlined in this timely volume hold important lessons for these as well as for other countries.
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.
"""The report is essential reading for policy makers, government workers, and academics pursuing the goal of equitable, sustainable development across the world."" - N. R. Narayana Murthy, Chairman and Chief Mentor Infosys Technologies Ltd. Information and communication technology (ICT) is rapidly evolving, changing rich and poor societies alike. It has become a powerful tool for participating in the global economy and for offering new opportunities for development efforts. ICT can and should advance economic growth and reduce poverty in developing countries. It has been 20 years since the first telephone operator was privatized, a little over 10 since the World Wide Web emerged, and 5 since the telecommunications bubble burst. How have the ICT sector and its role in development evolved? What have we learned? How can we move forward? Information and Communications for Development 2006: Global Trends and Policies contains lessons from both developed and developing countries. It examines the roles of the public and private sectors, identifying the challenges and the benefits of adopting and expanding ICT use. The report assesses topics essential to building an information society, including investment, access, diffusion, and country policies and strategies. Assessing what has worked, what hasn't, and why, this report is an invaluable guide for understanding how to capture the benefits of ICT around the world."
Presents a compilation of information from a worldwide pool of experts on their practical experiences in telecommunications sector reform. This study compiles a wealth of information from a worldwide pool of experts on their practical experiences in telecommunications sector reform. It provides an up-to-date account of approaches to the major policy and structural issues and describes developments in Latin America, Asia and the Pacific, and Europe. The study also examines issues related to investment, regulation, and implementation. While each of the eight parts centers on a particular aspect of telecommunications sector reform, the study highlights several recurring themes and looks at a number of country experiences from the perspective of policymakers, regulators, investors, operators, the international development community, and other industry specialists. This volume provides valuable information on how to implement telecommunications reforms, offers insights into the effectiveness of these reforms, and identifies critical areas in which further discussion of related policy and implementation issues in this increasingly important economic sector.
Examines how developing countries have restructured their telecommunications in order to "leapfrog" or accelerate development.
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.