The Negative Effects Of The Liberalization Of Telecommunication

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As our world becomes increasingly more globalized, the pressure to become readily interconnected continues to surge. In consequence, the liberalization of the telecommunications sector has become an increasingly popular form of policy reform among nations. However, this interest is not singular to Western developed nations such as the United States and the United Kingdom as many lesser-developed countries (LDCs) are developing into increasingly crucial parts of this broader economic reform initiated by the World Trade Organization (WTO) on February 5, 1998 (Bodamer, Pirie, Addy-Nayo. 2005 p.538). The Agreement on Basic Telecommunication (ABT) was considered the first “major accomplishment” by the WTO as sixty-nine governments, which included …show more content…
Second, it will introduce potential origins of motivation for the adoption of liberalization. Third, it will introduce expected possible positive as well as negative effects of telecommunication liberalization. Fourth, I will present my methods of observations. Lastly, the paper will conclude with a case study of two LDCs from the Africa and South Asia respectively. Ultimately, the essay should provide a fair guide into the factors that contribute to either a damaging or constructive use of telecommunication …show more content…
Clarke and Scott J. Wallsten, “argue[d] that universal service for the poor in developing countries is generally ineffective” (Garbacz and Thompson, 2007 pp. 279). They believe that the expectation that telecom liberalization will reduce prices for public through competition is not enough “to ensure [the] full coverage of vulnerable groups,” such as those living in rural or very low-income households (Clarke and Wallsten, 2002 pp.13). They introduce the need for regulation and an effective distribution system to finance universal service is necessary if universal service is a goal of public policy. Lastly, Wei Li and Lixin Colin Xu suggest privatization and competition “are important factors to the development and expansion of both fixed and mobile telecommunications” (Garbacz and Thompson, 2007 pp. 277). Unlike Ros, they do recognize competition makes some contribution to growth. However, they also cite “less efficient modes of governance” as a “bottleneck for growth” for the progression of developing countries (Li and Xu, 2002 p.25). Ultimately, these studies highlight skepticism and uncertainty regarding the contribution of telecommunication liberalization in which the onset of competition and privatization are concepts that may alone not prove beneficial enough to the entirety of developing countries’ population, which makes that telecom liberalization benefits all increasingly difficult to prove. Thus, there presents a need to test

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