Telecommunications and economic development. The role of local access networks in economic integration

Abstract

Telecommunications is a vital prerequisite for economic development in the countries of Eastern and Central Europe. So far, investment has concentrated on the international and trunk networks, whereas investment in the local networks, the most expensive part of the telecommunications infrastructure, is lagging behind Local networks are necessary for local development and the integration of the regions into the changing national economies as well as the integration into the world economy and the reorientation of external trade. Some Eastern European countries are trying out new models for the development of local networks. They are often based on country-specific initiatives from the local or regional level. Their role as a model for other Eastern European countries is discussed with regard to their risks and chances . Taking the existing financial constraints for telecommunications operators into account, an innovative regulatory policy , such as it can be observed in many countries of the region is necessary in Eastern Europe despite or even because of the problems of the lack of "institutional capital". One of the main benefits in the regulatory strategies to be realised is the close link between regional economic initiatives and the investment into telecommunications.