Part VI Cross-Cutting Issues Liberalizing Development: Effects of Telecommunications Liberalization on Digital Divide Gap in Thailand and the Philippines

This paper hypothesized that extensive telecommunications liberalization would not increase the penetration rate of the fixed telephone service better than other, less competition-oriented, policy alternatives. The hypothesis was validated in the case of Thailand and the Philippines. Thus, the paper demonstrates that past research has not paid sufficient attention to this issue and has assumed that the more extensive reform could always lead to the faster and the better telecommunications development of telecommunication services. The findings of this paper suggest that the non-competition-oriented policy alternatives could be an effective way to reduce the digital divide gap in developing countries, if implemented and introduced properly. The conditions for successful implementation pf the policies that could help reducing the digital divide gap are: 1) the government perceives the service as a basic necessity; and 2) the government strictly commits and implements purposeful policies with the intention of increasing penetration rates of the services through the distribution of service provision authority. The paper also suggested that less-developed countries (LDCs) should realize that they do not have to fully implement liberalization reforms, but should instead specifically tailor their telecommunications reform policies to their own pace and needs. The paper results have the policy implication that liberalization can be a useful and effective alternative to lead to higher penetration rates, when and only if, the country and its people understand its goals, effects and implications and, more importantly, when the government provides the policy framework for universal service and addresses the issue of digital divide for the benefits of its people so that the telecommunications liberalization can lead to self-sustainable development