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2.4 Infrastructure for production, policies and decisions are sound, private
growth, and employment sector players will find a suitable market for
their operations. For such Administrations,
2.4.1 Telecommunications plays a strategic this would imply a macroeconomic
part in global, regional, and national environment that serves as a reference in
economies owing to its dual nature: as an formulating investment projects in both
activity in itself and as a vehicle and support networks and services and in product
for other industries and sectors. development, as growth rates will be
estimated based on sound elements, thereby
2.4.2 In the telecommunications sector of putting financial parameters in perspective in
the economy, one bringing together countless forecasting the production potential of such
businesses, institutions, and society itself, projects.
four components may be identified: service
provision; the equipment supplier industry; 2.4.5 Public and private research and
generators of knowledge for production of development in centers, institutes, and
equipment and services; and users. This universities, in some cases vary in terms of
suggests the important part played by the status of their research and the extent of
telecommunications in production, growth, their coordination and exchange with other
and employment in the region’s countries. entities. Promotion of and investment in
When policies regula ting service provision research and development by the state might
are established in accordance with the result in beneficial public policy and in ways
production of equipment and development of of tying in with the private sector.
knowledge of the countries themselves, their Companies may choose to invest some
communities will be able to profit from this fraction of their overall budget in research
in the form of well-being and employment. and technological development in the
countries where they provide services or
2.4.3 The design of telecommunication market products. Cooperation between the
services linked to the national productive web public and private sectors in this area would
and public and private technological research facilitate the dissemination of innovation and
and development institutions may take the its assimilation by researchers and developers
form of public policies that establish rules of the countries and the region.
and reflect consensus with providers,
including, to the extent decided by each 2.5 National legislation and regulation
Administration, incentives for the
procurement of local production. This should 2.5.1 The need for national legislation
not imply artificial barriers to freedom of for the telecommunication and information
trade and should respect multilateral sector
agreements concluded, facilitating the
placement of external productive investment. 2.5.1.1 In general, all countries of the region
Some Administrations consider that the have national legislation governing
output of the local industrial and telecommunication services and ownership of
technological complex should be products telecommunication infrastructure, and have
with standards of quality and competitive established regulatory or administrative
pricing enabling them to participate in global systems to implement and enforce that
supply and demand, resulting in the insertion legislation. If significant changes are made to
of countries in the world arena. the structure of the telecommunication sector,
as has occurred in many countries of the
2.4.4 Some Administrations also consider region, this legal framework must be formally
that when governments clearly define their amended. Review and revision of related
economic and social models and when their legislation, such as legislation on investment,
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