The recession had failed to dent demand for information and
communications (ICT) services, but governments needed to support
the roll-out of next generation networks financially if they were
to provide universal service and economic growth, the International
Telecommunications Union (ITU) said today.
Despite growing consumer demand, the report found less private
sector investment going into telecommunications than in the past 30
years. "Government must take simple and immediate steps to assist,"
the ITU said.
But governments should "be mindful" of where they invest, it
said. Operators were hedging their bets by picking a raft of
different technologies. Governments should also be cautious about
picking technologies, winners or even the communities where
investments will be channelled, it said.
Despite demand, the recession meant network operators found
capital market tougher. This slowed their plans to roll out
next-generation networks.
"These challenges could hold back communities that need solid
broadband infrastructure to achieve their social and economic
development goals. The right policy choices must be made now, so we
can reap the benefits tomorrow," said Touré.
The ITU said however taht the mobile and satellite sectors were
"remarkably resilient". Consumer demand for high-speed fixed and
mobile connections is fueling growth in broadband subscriptions in
major markets worldwide, including Brazil, China and the US.
A
reportpublished
today, the second in ITU's Confronting the Crisis series, found
wireless communication technologies, fixed broadband internet,
next-generation networks and satellite technologies could all spur
economic growth in developing and developed regions.
ITU secretary-general Hamadoun Touré said investments in ICT and
broadband networks often gave stronger marginal returns on supply
and greater productivity gains than other forms of
infrastructure.
Global fibre-to-the-home (FTTH) installations were forecast to
grow at a steady rate of 30% over the next five years. Long lead
times, robust demand for entertainment services and specialised
financing mechanisms have helped bolster the satellite industry,
which is predicting 50% growth over the coming decade, the ITU
said.