Economic sustainability of international telecommunication networks

Abstract

Purpose

The paper aims to examine the expanding broadband “digital divide” as a warning that developing countries are falling behind in the upgrade of their telecommunication networks, specially the access network. It points out the deteriorated financial conditions facing developing countries in the context of the global economic crisis that adversely affects the availability of resources to invest in network infrastructure.

Design/methodology/approach

The paper is based on a review and analysis of relevant literature and the outcomes of significant ICT for development events.

Findings

The existing economic mechanisms in international communications networks establish the financial flows in favor of the developed countries, thus thwarting any attempt to increase its net external income that could be used in investments in telecommunications infrastructure. On the other hand, convergence and the migration to next generation networks present a new set of opportunities and challenges to establish an international interconnection regime that will allow the developing countries to recover the investment in infrastructure.

Research limitations/implications

The scarcity of publicly available economic data of the current international interconnection agreements suggests the necessity to conduct further research in this area.

Practical implications

The failure to establish a non‐discriminatory international interconnection regime could lead to economic unsustainability of international networks in the long run. The paper presents some recommendations to address this issue.

Originality/value

This paper presents an approximation to an important issue of international telecommunication networks that is usually hidden behind the confidentiality of services contracts.

Citation

Alfonso Fernández González, J. (2011), "Economic sustainability of international telecommunication networks", info, Vol. 13 No. 1, pp. 6-12. https://doi.org/10.1108/14636691111101847