Telecom traffic and investment in developing countries

Telecom traffic and investment in developing countries

by Scott J. Wallsten

Part of Policy research working paper ;

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In 1997 the U.S. Federal Communications Commission ordered sharp reductions in international settlement rates (bilaterally negotiated rates for telecom traffic between pairs of countries) for telecom traffic between the United States and the rest of the world. Even the very poorest countries, with the least developed telecommunications networks, must slash rates for traffic to the United States by 2003. Will this, by reducing telecom revenues in developing countries, reduce investments in those countries' telecom sectors?

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