When the economy goes rock bottom, it makes little sense asking what it would mean to one component. But what exactly the impact of the present financial crisis on telecoms? This is what Spencer E. Ante thinks: The $1 trillion telecommunications industry has long been one of the most resilient parts of the economy. But as the financial crisis has intensified, it has recently become clear that telecom can’t escape the fallout of the credit crunch.
Here is an issue that will feature large in India and even Bhutan, but not Sri Lanka. The reason is that the former countries have a sizable number of cable connections, which will in the future be used to provide broadband access in competition to phone companies. Because of the profligacy of frequency-based broadcast licensing in Sri Lanka, there is no cable industry to speak of. What there is uses frequencies. That means it cannot easily be turned into a conduit for broadband.