Access of developing countries to information and communication technology (ICT) increased over the past 25 years and thus subsequently increased information flow in the developing countries, according to the information and communication for development 2006 report authored by the World Bank.

The report said that the number of telephone subscribers in the developing countries rose by over 30 times between 1980 and 2005 from 20 percent in 1980 to 60 percent in 2005 of the world's phones.

The World Bank report attributed the positive trend to technological revolution of mobile telephone and private sector competition which has lead to increased investment from overseas.

Annual foreign direct investment (FDI) to 122 developing countries in telecommunications increased from 2 billion U.S. dollars in 1990 to a record of 33 billion dollars in 1998, according to the report.

"Flows then hovered between 20 billion and 25 billion dollars in the following three years, and dropped to about 13 billion dollars per year in 2002 and 2003," said the report.

The report said that between 1990 and 2003 foreign investors or consortia of foreign and domestic private investors participated in more than 460 telecommunications infrastructure projects.

The report however said sound macroeconomic policies, low political risk, ease of market entry, the protection of property and investor rights, and business-friendly overall environment is an important ingredient for attracting and retaining FDI in telecommunications.

Good infrastructure, a skilled work force, more generally reliable contract enforcement, and favorable tax policies are additional factors to attracting investment in developing countries, said the report.

The report urged the developing countries to focus on creating a level playing field by providing fair opportunities to new entrants irrespective of monopolies on international telephony.

A survey of firms carried out in 56 developing countries finds that firms using ICT grows faster, invest more and are more productive and profitable than those that do not.

Source: Xinhua