Telecommunications Services in Africa

This paper examines the impact of telecommunications liberalization in Africa on both sectoral performance and economic growth. Besides unilateral measures, we account for WTO commitments fostering the credibility of reforms. Actual regulatory quality plays a major role in bringing down prices and in improving access to telecommunication services in Africa. Competition, notably in the mobile telephony segment, also improves sector performance. Increasing access to mobile networks by 1 per cent translates into a 0.5 per cent increase in real GDP per capita. In Africa, multilateral commitments do not reflect recent reforms. However, at the global level, adherence to the WTO Reference Paper entails lower prices.