Growth Dividends of Digital Communications

The near ubiquitous diffusion and use of modern digital communications is an expression of its indispensability in contemporary economic and social existence. Much like the spread of roads and electricity, telecom infrastructure is now globalizing markets, reducing transactions costs, expanding productivity, and thus promoting economic growth. With rudimentary systems now being replaced by versatile networks, communications infrastructure has rightly acquired the tag of a General Purpose Technology (GPT) with Internet and mobile based communications generating significant and wide-ranging spillover benefits for the rest of the economy. High speed Internet is increasingly viewed as an enabler of economic integration allowing further tradability of many services as well as creating new kinds of tradable services. This technological dynamism has paved the way for continuous innovation and knowledge creation that has enormous potential to enhance efficiency.