ajority of people living in developing countries still lack access to basic telecommunications. Yet there is cause for optimism. New technologies offer the possibility of technological leapfrogging, e.g., to reach end users through wireless local loops or small satellite terminals rather than stringing wire and cable. Digital transmission and switching are increasing reliability and lowering cost, as well as making it possible for subscribers in developing countries to use electronic mail and voice messaging, and to access the Internet. The newly industrializing economies of eastern Europe, Asia, and Latin America are starting to close the gap. Their growing economies appear promising to the telecommunications industry and to investors who are looking for new markets. Most of these countries are also taking steps to encourage investment by privatizing their operators, providing investment incentives, and/or introducing competition. Information gaps show least signs of shrinking in the poorest countries, two-thirds of which have less than one telephone line per 100 inhabitants. Telecommunications is not a panacea for countries with populations near the subsistence level as well as urgent demands on foreign exchange for food, fuel and medicine. Yet, as these countries develop market economies and seek to take maximum advantage of scarce expertise, they will need to invest in telecommunications. Of course, these regions are less attractive to investors than more prosperous economies; in general, they have also been the most reluctant to reduce their governments' role as monopoly operator. Their networks are also the least efficient, in terms of reliability and the number of lines per telecommunications employee. Restructuring their telecommunications sectors to improve productivity and encourage investment will be necessary if they are to begin to close the gap. New gaps? As investment in telecommunications infrastructure increases, the ga...
