Abstract
The better functioning of economy depends on the availability and quality of public services such as: outstanding education system, well-functioning health system, very good transportation system and other public services as well. The 21th century is seen as the century of information and communication technology. In this way the local and central governments have seen that the broadband is important like other public services. The purpose of this paper is the identification of the importance and the impacts of broadband on the development of the economy and the society. For this purpose we have surveyed in depth different theoretical and empirical literature. The literature shows that government intervention is necessary not only in the regulation of the market but also in providing broadband services and increasing the demand for these services, which in turn would enable the development of the broadband market at the same pace like other EU member states. In the last part of this paper we will show that the development of the broadband market requires a more active role of the government in the development of broadband by increasing the demand and the supply for broadband services. Regardless the fact that ARKEP is working on increasing the development level of the broadband, we will show that the existence of a well-designed governmental plan would make it possible to achieve the goal of an information society.
Highlights
Different university and non-university institutes rank the impact of broadband in the development of economy very high
Based on macroeconomic point of view, the impacts of broadband on national economy are not the same in different countries. For this Kolko (2010) shows the positive impact of broadband penetration on the economic growth. He emphasizes the fact that the relationship between the development of broadband and the economic growth is more emphasized in the societies that rely more on the information technologies
In order to get the benefits derived from the development of broadband, has to develop two dimensions of this sector, namely the use of broadband services and the provision of these services, due to high lags in both dimensions
Summary
Different university and non-university institutes rank the impact of broadband in the development of economy very high. The Telecommunication Regulation Authority (ART), Regulatory Authority of Electronic and Postal Communication (ARKEP) has decided that one of their targets is the creation of an information society, the lack of well-designed governmental plan for the development of broadband may prevent Kosovo from gaining the benefits of it. In this way, Kosovo lacks a well-designed governmental plan, which would enable the development of the demand and supply for the broadband services.
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