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Thailand Article
Empirical Evidence of Network Externality of Thailand's Telephone System
Introduction
Telecommunications infrastructure is a crucial element for economic development, especially for developing countries. However, telephone service in developing countries is typically characterized by a supply that does not meet demand. This means that the telephone service may not be available in some areas, or that there may be delays in getting a telephone. In terms of telephone usage, it means that telephone calls may not go through during peak hours because of congestion. As the Maitland Commission (1984) noted, telecommunication is a missing link in much of the developing world.
During 1980's, the problem of telephone shortage in developing countries had been modestly reduced because of changes in telecommunications technology and policy. |
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Hudson (1995) found that the average growth of the telephone line capacity per 100 populations in developing countries between 1980-1990 was many times higher than the average growth of their per capita GNP. However, the average level of telephone line capacity per 100 population for the low-income and the lower middle-income economies was relatively low, i.e., 0.5 lines per 100 population and 5 lines per 100 population respectively. Thus, there is still a significant gap in the access to telecommunications between the industrialized and the developing countries.
Can read full article at http://thailand2009.blogspot.com/2007/06/empirical-evidence-of-network.html
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