Assessing the Impact of Internet Telephony on the Deployment of Telecommunications Infrastructure

Abstract

The purpose of this research is to determine whether Internet telephony has had a negative impact on a country's telecommunications infrastructure. Using panel data the statistical analysis shows that call-back did not have a negative effect on infrastructure and high income countries benefited from that technology. Internet telephony shows a negative impact in high and lower middle income countries but at such a small scale that governments should not be concerned. Additionally the year variables show that for all income levels infrastructure has increased which means that if this technology will show any negative effects it will be in a gradual manner and should give carriers enough time to adjust their practices.

Keywords: Regulation, Internet telephony, call-back, infrastructure, teledensity

JEL Classification: O14, O33, O38