Telecommunication Infrastructure Development and Economic Growth: A Panel Data Approach

Abstract

World is going to be global village due to the introduction of new and advanced technology and new innovations in technology make it more possible day by day. The widely spread economic activities both in real as well as in credit market is possible when they use advance technology to communicate. This is a fact that the world is rapidly moving towards an economic system based on the continuous and ubiquitous availability of information. Developing countries try to maintain and develop their technology in such a way that they can become a part of this global village. Recent developments in telecommunication technology have been an important tool to exchange the information to develop a sharp and valuable commodity market. During 21st century to move into post-industrial, information based economic growth, countries and sector try to equip themselves with the necessary telecommunication system. A modern telecommunication infrastructure is not only important for economic growth but also to connect domestic market of commodities as well as credit with international commodity and financial markets. This would develop the smooth flow of foreign investment, positive value of net exports, increase the value addition in GDP of an economy etc. Once the industrial and agriculture development was considered to be a best tool to enhance economic growth of a country, every country gave more importance to these sectors in its plans and policies, but now the trend has changed because the advancement and development of these two major sector of an economy sustain on the development of other factors, the role of service sector, advancement in technology, and the contribution of foreign sector in economic growth by different ways increases, and the major area of interest for foreign sector or investment was service sector and still it is, countries with the existence of GATS, started to privatise their set up, and after realising the importance of communications, the telecommunication sector is now on their main priorities. With the advancement of telecommunication services, a new market mechanism, low cost structure and expanded value chain of firms is possible [Kambil and Short (1994)], on other hand in developing countries, the average price of agricultural commodities is high in the area where there is telephone facilities available than the area where there is no facilities to communicate [Bayes, et al. (1999)].

Effects of Network Infrastructure sharing Challenges on Open Information Communication Technology Infrastructure Sharing among Mobile Service Providers in Kenya

“…This study identified the following components of network sharing that can be shared by Mobile Service Providers: Antennae, Feeder cables, Node B and Transmission equipment. This findings reinforce a similar study that was conducted by [4] who noted that the core network elements of which antenna is part of should not be shared, so that each service provider can maintain control their equipment. 16 out of 39 respondents from Safaricom (41%), 10 out of 17 respondents from Airtel (59%) and 12 out of 15 respondents from Orange (80%) agreed that feeder cables could be shared in an open ICT infrastructure sharing framework.…”

“…According to [5], ICT Infrastructure incorporates site sharing, network sharing and spectrum sharing. In Node B Sharing, Radio network controller (RNC) and Core Network are not shared in this model, so that each service provider can maintain control of their equipment and spectrum use [4]. According to [19], the separation of the Core Networks also allows each service provider to offer differentiated services to their subscribers.…”

“…This form of sharing may allow Mobile Service Providers to differentiate themselves by providing value added services in addition to the standard telecom services such as PSTN (Public Switched Telephone Networks), and GSM (Global System for Mobile Communication) services on mobile phones. In the United Kingdom, Orange and Vodafone announced plans in August 2007 to share their Radio Access Network (RAN) across the entire country [4]. This was after realization that around two thirds of all mobile phone Base Stations in use in the UK were located on existing buildings and structures, including buildings, TV and radio transmission towers and existing mobile phone masts.…”

The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries

“…By contrast, [10,102,119,132] support the validity of growth-led ICT hypothesis (i.e., a demand-following hypothesis e DFH). Moreover [22,23,33,34,73,103,107,116,124,125], find existence of a mutual causal relationship between the two variables (i.e., they support a feedback hypothesis e FBH). Finally, some studies find a complete lack of a causal relationship between the variables -or a null hypothesis (NLH).…”

Telecommunications Infrastructure and Economic Growth: Comparative Policy Analysis for the G-20 Developed and Developing Countries

“…The idea behind this argument, which is in favour of the bidirectional causality, is that telecommunications infrastructure is indispensable to economic growth and economic growth inevitably requires a solid telecommunications infrastructure (Cronin et al 1993a;Nandi 2003, 2011;Yoo and Kwak 2004;Zahra et al 2008;Ramlan and Ahmed 2009;Pradhan et al 2013b).…”