World Telecommunication Development Report 1996-1997

Trade in Telecommunications

image of World Telecommunication Development Report 1996-1997

The third edition explores the theme of telecommunications trade, covering both trade in equipment and trade in services. As well as providing up-to-date information on the outcome of the trade negotiations and analysis of new developments in electronic commerce, the report also presents ITU’s authoritative World Telecommunication Indicators for year end 1995. These statistics monitor the main indicators of network growth, mobile communications, pricing, revenues and investment for 200 plus economies worldwide.



Foreign investment

Group on Basic Telecommunications (GBT) at the World Trade Organization (WTO) in early 1997 was the level of foreign investment and ownership which each country would allow in its telecommunication sector. Many countries still retain 100 per cent stateownership, or at least local ownership, of their incumbent public telecommunication operators (PTO) for strategic reasons. Other countries are keen to attract strategic equity partners from abroad but require that foreign investors must share ownership with local interests. Still others are willing to open their markets fully to foreign ownership. This chapter examines why countries have adopted differing positions on foreign investment and how those positions are changing. In particular, the chapter analyses what has happened in those countries which have taken steps to open their markets to foreign investment, for instance, through privatization, through licensing new operators, or by issuing franchises.


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