Corruption in Telecommunications: Problems and Remedies

Abstract:     
The high value of privatizations, licenses and equipment supply contracts in telecommunications have created opportunities for individuals to solicit and companies to pay bribes. Despite obvious risks in advocating such policies, especially in developing countries with weak or absent anti-corruption systems, no special measures were put in place to reduce exposure to petty or grand corruption. Evidence gradually emerged of instances which illuminated these errors, not least in the revolutions of the 2011 Arab Spring, the Indian '2G spectrum scam' and Siemens bribery case. Action is needed to develop integrity and transparency codes for governments, regulators and the private sector in order to clean up the telecommunications sector.

Keywords: bribery, corruption, telecommunications, licenses, procurement, Arab states, India, Siemens

JEL Classification: L96, L97, H57, H54, K10, K14, K23

Accepted Paper Series