Predictors of Growth of Teledensity in Developing Countries: A Focus on Middle and Low-Income Countries.

Abstract

Investments in Information and Communications Technology (ICT) have been a major issue of concern in academia and industry. How much a country should invest in its telecommunications infrastructure so as to improve their levels of teledensity is a major challenge. This research examines investments in the telecommunications sector of low and middle-income developing countries. The findings suggest that increased investment in telecommunications infrastructure without the involvement of other socio-economic factors may not improve growth of teledensity in developing countries. The study, however, suggests a positive relationship between teledensity and other variables such as GDP per capita, telecommunications staff and length of wait times to acquire and maintain telephones. Some strategies are suggested as steps to take in order to improve the teledensity levels of the countries used in this study.