Economic Impacts of Broadband
The adoption of high-speed and widespread availability of internet broadband internet by users is a key driver of communication technology capabilities, information as well as overall success and wellbeing of a developed economy. Broadband technology ideally contributes to economic development at various levels. Generally, its deployment across business enterprises improves productivity by enabling the adoption of well-organized business processes. Besides, extensive deployment might accelerates innovation through the introduction of new broadbands which in turn leads to a more efficient functional deployment of enterprises. Keywords: Broadband, Economic development, Technology, communication. Case selection Even though Turkey lags behind many OECD states in fixed broadband usage dues to a 11 percent usage, it is ahead of many major nations that include Mexico, Chile, and Hungary (Coşkunoğlu, 4).
The Network Readiness Index of Turkey is 51st out of the 148 states with 48th position in readiness, 42nd position in infrastructure and content, 44th in Environment and 55th in political and regulatory environment pillar. In 2010, Turkey had a fixed broadband entrance of 9. 4 subscriptions for 100 inhabitants yet the Turkish homes have a broadband connection of 34 percent. With e-government projects, there has been a demand among the enterprises in the ICT sector and inspired citizens to have higher usage levels of the internet. As such, Telli the annual telecommunications investment of the government stood at an average of $ 656 million and as access lines went up by an average of 20 percent yearly (15). Another factor that promoted this growth was the wireless revolution between 1995 and the year 1999 hence an intense growth in wireless phone subscriptions grew in the late 90’s.
In 2000, the yearly subscription development surpassed 100 percent, and wireless phone infiltration reached 25 percent. Average annual outlay in the wireless division recorded more than US$ 1 billion (Telli, 20). In the course of this time, the government invested in wireline at US$ 560 million annually and wireline distribution came to 28 percent. 4502 in 2000 focused on liberalization hence developed a regulatory policy. Once Turkcell and Telsim were given licenses in 1998 the monopoly of Türk Telekom was done away with. A genuine competition set off (Coşkunoğlu, 6). In 2003, Avea a subsidiary of Türk Telekom got into the mobile market before Vodafone bought Telsim in 2005. Turkcell which was a first-mover dominated the market up to 2007 where TK too measures. 5 percent. The fixed subscribers have been recorded as 8.
5 million while the others include 26. 4 million. The charges on fixed broadband are 79% xDSL, 15% fiber, and 6% cable. Behind them were Bursa, Kocaeli, and Antalya. While mobile broadband users through mobile phones were 32. 4 million, those using non-phone mobile gadgets grew to 1. 5 million by 2014 (Ercoşkun, 132). There were both fiber subscribers and cable subscribers of 1. 4000 with exclusive rights of all telecommunications infrastructure apart from mobile amenities. Soon Turkcell and Telsom emerged as mobile telephony services that received approval licenses in 1998. The Türk Telekom, TTNet subsidiary launched broadband in the 2000s with ADSL amenities over the public switched telephone network (Coşkunoğlu, 10). Methodology and Data 3. 1 Methodology In this study, we shall utilize the survey on the Household and Information and Communication Technology (ICT) usage that is annually administered by the TURKSTAT in accordance with the European Union organization.
to deal with counterfactual questions that involve just a single treated unit and a limited number of control units (596). Naturally, this technique builds up a weighted average of units which is as comparable as possible to the treated unit concerning the pretreatment outcome covariates and variable. As such, this weighted average of control units is called the synthetic control. Given that the empirical literature applicable to SCM is wide, the development and expansion of such a theoretical foundation tool is an imperative task. Firpo & Possebom (2017) indicate that the inference process involving small samples through the synthetic control estimator came up through the attempts of Abadie et al. Then there is a measurement of temperature, humidity, and noise levels in the city.
Subsequently, there is transportation and emergency through smart stations, smart intersection systems, traffic management, and intelligent parking systems. They offer benefits by reducing waiting times and optimizing public transportation, reducing waiting time at junctions and lowering emissions, optimizing parking services, identifying drivers who break traffic laws so as to improve safety and calling ambulance services through the panic button. The third application serves social issues through smart home and office, bulk SMS system, patient tracking system, disabled amenities, and mission/unidentified persons’ system. These applications warn and remind urban dwellers with messages, handle the disabled, find missing people and lost animals, detect health problems among urban dwellers, and provide security services. For instance, there is increased productivity, high levels of innovation, increased efficiency, new employment opportunities, and globalization.
Furthermore, broadband has enhanced the creation of new business models for many companies, new processes, new and better service provision and goods, new innovations, and high levels of competitiveness as well as economic flexibility. Besides, information dispersal has been reduced and market access improves because of emergency of large markets that permit people to sell products and services from multiple locations at flexible times. Procedures and processes have been speeded up, economic dynamism boost up and externality network created. With broadband, there is technological change and fundamental improvement of production. Besides, consumers are increasingly adapting to the services available over fast broadband speeds, and are on track to match the expected worldwide consumption trends. Essentially, such an environment of a growing demand represents an excellent background for the extension of future-proof FTTH/B technologies to serve a large percentage of the Turkey population.
The resultant development in wireless broadband access makes new businesses founded on the convenience of faster Internet connection. Lennett and Meinrath argues that telecommunication and broadband infrastructures that facilitates high-speed connectivity can no more be observed as a luxury but as critical (3). Such a relationship is even stronger in organizations that place more reliance on IT and in areas where the population is low. Consequently, this has boosted the country’s economic growth by about 0. 8 to 1. 7 percent (Telli 44). Such an economic momentum due to an enhanced broadband ecosystem has brought about 180,000 to 380,000 generated new income opportunities and employment. In the baseline growth scenario, it is observed that the Turkish economy could improve by a yearly rate of 5. A lot of business operations occur over broadband communication networks.
These activities include management of fleet, management of supply chain, recruitment of workers online, e-procurement, e-invoicing, customer service, operating call centers, making online payments, e-commerce, coordinating the process of fragmented production both between and within and companies, and the connection of teleworkers to the networks of the employers (Organization for Economic Co-operation and Development, 38). The increased bandwidth serves in virtual private networks as well as in video conferencing too and it provides data in the insurance, accounting, and financial market firms and systems. There are times when consultancies, reports, professional and academic research, and weather forecasts are enabled through broadband usage. Moreover, according to Organization for Economic Co-operation and Development online promotional activities, graphic design, and advertisements, ATM amenities, distribution of news and banking industry used broadband in so many activities for high-speed operation and innovative operation (42).
Besides, there should be cooperation with municipalities to increase demand and make the right-of-way fees go low. Additionally, there is a proposal for Turkey to revise the taxation of broadband-related gadgets and amenities in order to lower the cost of possession and make broadband affordable. The ultimate suggestion is the encouragement of the infrastructure-based competition through redefinition and extension of the regulatory holiday and bringing on board regulatory incentives. The fact that Turkish broadband available infrastructure to efficiency and timely provision is achievable because of the acceleration of the market in Turkey. As such, there would be 85 percent of individuals who might have access to broadband hence the social welfare, job creation, GDP, and competitiveness would grow. The usage of broadband in every country.
The usage of broadband is evolving and expanding because of the HD video, video conferencing, as well as telemedicine usage in the hospitals. Mobile broadband is cost-effective, reliable, and high capacity with great speed to serve people. For the past five years, the broadband market infrastructure-based rivalry has attracted a high level of investment with more than 20 billion TL from the operators. There is a 2. Source: (El-Darwiche, 2016)p. 15 Though the prices of broadband are about high, the households of the people of Turkey. However, if the high taxes on broadband are reduced then at least 86 % of the population can afford broadband, yet the modem and computer expenses reduce that prospective number to 69 %. Should the broadband cost be reduced there will be the ability to fulfill several activities.
For example, digital literacy programs, internet centers, and cafes, as well as school sources, will be greatly available and that will reduce the cost of learning and reach information (El-Darwiche,et al. First, broadband has a created consumer surplus, impact on the GDP growth and employment, as well as the employment and output of broadband deployment. It is also projected that more job opportunities could be created if more people have broadband. In Turkey broadband has proven to offer fast services, innovative goods, new processes, better service provision, high levels of competitiveness and flexible economy. There has been clear and precise communication of information, speedy production, and easy operation of machines, higher economic dynamism and creation of externality network. With broadband, there is the accessibility of services, reservations, functional and structural separation of duties, 24-7 economy, and efficient medication in the hospitals.
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