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Telecommunications Liberalization and Network Expansion
--The Experiences of APEC Countries
Abstract
This paper applies the fixed-effects model to examine the effects of
telecommunications on network expansion in the APEC countries. Three indicators are
used to represent telecommunication liberalization: competition, privatization and
regulatory independence. Two indicators are used to represent network expansion:
telephone line and cellphone penetration. Based on the statistics data of ITU, from 1990
to 1999, the research finds that telecommunications liberalization has different levels of
effects on network expansion. Among three indicators of liberalization, competition
shows the most robust effects on network expansion both telephone and cellphone
subscribers. The effects of privatization and regulatory independence on network
expansion are divergent between developing countries and advanced economies of the
APEC countries.
Keywords: Telecommunications liberalization, Competition, Privatization, Regulatory
independence, Network expansion, APEC