COMCEC Transport and Communications
Outlook 2018
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6. TELECOMMUNICATIONS
Communication is an essential activity for mankind to survive and progress. Telecommunication
has provided individuals with invaluable communication opportunities. Telecommunication is
defined as “any transmission, emission or reception of signs, signals, writing, images and sounds
or intelligence of any nature by wire, radio, optical or other electromagnetic systems
(International Telecommunication Union, 1982). Invention of technologies like telegraph,
telephone, radio, television and more recently computer and internet has radically changed the
ways people communicate.
Today, information and communication technologies (ICT), especially internet, are used by
almost all sectors for different purposes and trigger technological improvements and
innovation. ICT enables the use of physical, social, financial and intangible assets more efficiently
and consequently creates productivity gains. ICT based R&D and innovation activities as well as
ICT driven transformations in other sectors result in significant economic benefits. Firms and
countries who own and utilize these technologies can gain competitive advantage.
Diffusion of ICT alters business models, organization structures and functioning of the job
market. As ICT is widely employed in economic activity, some of the jobs, professions and
business activities are either modified or replaced by new ones. Transfer of many transactions
and applications to the digital environment and dissemination of new applications such as e-
commerce, e-banking, e-health, e-learning, etc. provide significant advantages by removing
some of the traditional barriers, especially physical and time constraints. Furthermore, ICT
changes people’s daily lives including their habits, way of entertainment and communication
methods. Similarly, public administration and delivery of public services are affected and
improved by diffusion of ICT.
Internet has a special importance among other information and communication technologies.
Internet is the main platform on which most of the other ICT products and services operate.
Therefore, internet is an essential element for realization of abovementioned transformations
and advantages. Internet usage has been rapidly increasing throughout the world. Governments
try to develop fixed and mobile internet infrastructures and increase internet usage rates in
their countries. However, distribution of both supply of and demand for internet are not evenly
distributed across and within countries. Generally, richer countries and regions have higher
internet availability and usage rates. As a result, significant differences among individuals, firms
and countries in accessing and effectively using ICT, i.e. digital divide, arise.