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FDI Plays an important role in the long-term economic development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity, and generating new employment opportunities. FDI also has an important role in enhancing exports. As FDI is seen as a developmental tool it becomes important to study FDI in context of Telecommunication Industry of India.

印度的外国直接投资在电信行业——FDI in Telecommunication Industry of India

The importance of infrastructure for sustained economic development is well recognized. High transaction costs arising from inadequate and inefficient infrastructure can prevent the economy from realizing its full growth potential regardless of the progress on other fronts. Physical infrastructure covering transportation, power and communication through its backward and forward linkages facilitates growth. There has been considerable progress in the last ten years in attracting private investment into the infrastructure sectors; first in telecommunication.

Impact of FDI in Telecommunications Industry and the Technological Developments

FDI is play greater role in India development of telecommunication Industry. In recent years, the telecommunications industry has evolved from manufacturing and providing basic fixed line telephony to an industry that offers mobile telecommunications services, and integrates IT and media into its services. In particular, mobile telecommunications innovation and digitalization have substantially changed the telecommunications landscape. The mobile telecommunications innovation has offered new forms of communications and services such as digital cellular services, cordless telephony, trunk and paging services. Particularly the use of mobile services has dramatically grown in the last decade. According to the International Telecommunication Union, the total number of mobile subscribers in the world increased from approximately 145 million to 1405 million respectively over the period 1996-2003. However, the total number of fixed line subscribers in the world increased only from 738 million to 1143 million over the same period. Hence, the total number of subscribers for mobile services exceeded the total number of subscribers for fixed services in 2002. Figure 1 presents the development of the number of subscribers in fixed line and mobile services. The evidence shows the tremendous increase of mobile services starting at the end of the 1990s.

The other main development by the FDI that has had a significant impact on the landscape was the digitalization. Since the digital technological development, a convergence between the telecommunications industry and the information technology industry is observed. The digitalization of the telecommunications industry is the direct effect of the rapid expansion of Internet. The number of users globally rose from 20 million in 1996 to 400 million in 2000. The convergence of industries or digitalization of the telecommunications 4 Cellular telephony takes up the largest part of mobile services. 5 The Internat本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。