Confronting the Crisis: Assessing its impact on the ICT industry

Check out this highlight on the Development Gateway.

"Drawing on analysis from leading industry experts and international institutions, this report by ITU (International telecommunication Union) highlights some harsh realities for the global ICT industry and considers how the industry can position itself for recovery in the future. This Report explores the impact of the financial crisis. Among the many insights contributed to the Report, several key findings emerge: a) Funding issues are unlikely to be resolved until the banking sector is recapitalized. The financial difficulties faced by the private sector could add to pressure for government intervention in the financing of national backbone infrastructure. b) Mobile operators are better-placed than fixed operators to weather the economic storm, due to greater flexibility in their cost structure and capex and fixed-mobile substitution. c) The demand for basic ICT services is income inelastic, but demand for advanced applications is more uncertain. d) Telecom services are likely to come under further price pressure, as operators will fight for a more cost-focused customer, resulting in further erosion of margins. e) Operators will take a more rigorous approach to cost control and search for further improvements in internal efficiency including reductions in headcount and infrastructure-sharing."