Wireless Taxes Hurt 3rd World Too
by James Gattuso on July 12, 2005
The Economist (subscription) ran a story in its current edition making the case that cell phones–even more than the personal computer–may be key to reducing poverty in the third world. From enabling farmers to check prices in different markets, to making it easier for people to find work, to making it easier to transfer funds, wireless telephony is a boon.
“[M]obile phones are, in short,” says The Economist, “a classic example of technology that helps people help themselves.”
Yet, high costs are impeding the growth of wireless in many areas. And among the culprits are third-world governments themselves. From Turkey to Uganda to Bangladesh and even Aghanistan, governments have imposed high taxes or other costs on wireless services. As the article notes, manufacturers (seeing a market here) are working to reduce their costs “Now governments must do their part, too.” Worth reading.
James Gattuso / James Gattuso is a Senior Research Fellow in Regulatory Policy in the Roe Institute for Economic Policy Studies at The Heritage Foundation. Gattuso also leads the Enterprise and Free Markets Initiative at Heritage, with responsiblity for a range of regulatory and market issues. Prior to joining Heritage, he served as Vice President for Policy at the Competitive Enterprise Institute and also as Vice President for Policy Development with Citizens for a Sound Economy (CSE). From 1990 to 1993, he was Deputy Chief of the Office of Plans and Policy at the Federal Communications Commission. From May 1991 to June 1992, he was detailed from the FCC to the office of Vice President Dan Quayle, where he served as Associate Director of the President's Council on Competitiveness. He lives in Alexandria, Virginia with his wife Dana, 8 year-old son, Peter (whom he relies upon to operate his VCR), and his four year-old daughter Lindsey (who does the DVD player.) He has no known hobbies, but is not nearly as boring as he seems.
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