chapter  7
11 Pages

Interconnectivity of communications networks

In the past decade the role of communications networks such as the Internet, mobile telephone networks, and satellite communications systems in the world economy has been widely discussed. It is increasingly recognized that the growing connectivity of individuals and organizations is achieved through improved communications networks and a consequent increase in the flow of business services across borders. Related to this, Cairncross (1997, pp. 214-215) issued the following statement:

More dramatic than the effect of falling transport prices on tangible goods will be the effect of falling communications costs on those intangible processes and products that can be distributed on-line … The effects will come first in trade between businesses, such as data processing and business software.