Reviewing a dozen of fiscal stimulus packages in developed countries, this paper analyzes one common strategy that has found widespread support in these stimulus packages and its…
Abstract
Purpose
Reviewing a dozen of fiscal stimulus packages in developed countries, this paper analyzes one common strategy that has found widespread support in these stimulus packages and its relevance for developing countries: investing in broadband and next‐generation networks, as a counter‐cyclical tool to create jobs and provide the foundation for economic recovery and long‐term sustained growth.
Design/methodology/approach
The paper looks at the various impacts broadband investment is expected to have: short‐term job creation and aggregate demand effects, and long‐term productive activities in other sectors of the economy. Moreover, broadband investment is more fiscally sound than other public spending stimulus options, in the sense of coming closer to, or in some cases actually being, self‐financing.
Findings
Several factors highlight the potential of broadband infrastructure as an important area of public investment during economic downturn, an option also open to policymakers in developing countries. Spending initiatives on next‐generation telecommunications networks at a time when labor market conditions are particularly weak can help preserve jobs and head off a potential burden on social safety nets. Bringing forward longer‐term aggregate spillover effects of broadband can improve the productivity of the entire economy and is consistent with enhancing longer‐run growth and development. Public support also “crowds in” private investment when access to private financing is decreasing and more expensive.
Originality/value
This is one of the few studies with a focus on the emerging broadband network, its impact on economy and the role of the public sector in rolling out next‐generation networks, during economic downturn and in general. A detailed summary of broadband initiatives in more than a dozen developed countries is provided in the paper.
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Colin Blackman, Simon Forge and Robert Horvitz
The European telecommunications landscape has been transformed over the past 25 years, but spectrum management has remained largely unchanged. The paper seeks to highlight the…
Abstract
Purpose
The European telecommunications landscape has been transformed over the past 25 years, but spectrum management has remained largely unchanged. The paper seeks to highlight the need for a more flexible approach to spectrum management and, in particular, the role of shared spectrum access.
Design/methodology/approach
The paper draws on a research study to examine the value of shared spectrum access, based on a review of the literature, a survey of European national regulatory authorities, and scenario analysis.
Findings
The paper highlights trends in wireless data growth and, in particular, the impact of 4G cellular mobile technology over the next five years. With pressure also growing on the licence‐exempt bands at 2.4 and 5 GHz, a more flexible approach to spectrum management will be required in future, including light licensing, de‐licensing and spectrum sharing.
Originality/value
The paper brings together a range of evidence to show how the current approach to spectrum management is no longer able to cope with the social and economic demands for the radio spectrum. It should be of value to policy makers, industry analysts and academics.
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Keywords
Cheryl Nakata and Erin Antalis
The base of the pyramid (BOP) is characterized by deep and wide poverty, which dampens market exchanges, or making/selling and buying/consuming activities. The purpose of this…
Abstract
Purpose
The base of the pyramid (BOP) is characterized by deep and wide poverty, which dampens market exchanges, or making/selling and buying/consuming activities. The purpose of this paper is to address the specific issue of how national culture distinguishes BOP markets in terms of exchange activities, and the broad issue of how market exchanges can grow and flourish by accounting for comparative differences across BOP markets.
Design/methodology/approach
The study design is a conceptual framework drawn from the extant BOP literature and several theories such as Amartya Sen’s theory on poverty, and Anthony Bebbington’s concepts of human capital. The framework specifies research propositions for future empirical examination.
Findings
The conceptual framework proposes that BOP poverty lowers or inhibits market exchanges but is countered by several factors: national culture (performance orientation), non-traditional assets (creative and social capitals), and transformative technologies (mobile telephony). Assuming these factors vary by BOP setting, greater performance orientation alongside higher social capital, creative capital, and mobile telephony directly and/or interactively increase market exchange activities.
Research limitations/implications
Among research implications are the application of other culture theories to the BOP market exchange issue, and the need to examine the role of government and other non-traditional capitals in exchanges.
Practical implications
Managerial implications include the targeting and selection of BOP markets and development of marketing tactics that leverage cultural, nontraditional, and technological assets.
Originality/value
This paper explores how to counter the negative effects of BOP poverty on market exchanges by leveraging the distinctives and variations among BOP markets.