Publication: Investment Commitments to Telecommunications Continued at Peak Levels in 2008
Date
2009-11
ISSN
Published
2009-11
Author(s)
Izaguirre, Ada Karina
Jett, Alexander N.
Abstract
Investment commitments to
telecommunications projects with private participation in
low- and middle-income countries amounted to US$78.1 billion
in 2008, according to just-released data from the Private
Participation in Infrastructure Project database. This level
of investment commitments (hereafter, investment) represents
an increase of around 1 percent from the previous peak
reached in 2007. As before, investment was driven by
projects implemented in previous years. Projects that
reached financial closure in 1990-2007 attracted investment
of US$74.7 billion, while new projects implemented in 2008
accounted for US$3.4 billion. Investment in physical assets
(that is, network expansion) grew by 7 percent to US$71.6
billion, reaching a new peak for the fourth consecutive
year. Payments to the government (such as spectrum or
concession fees and divestiture revenues) fell by 37 percent
to US$6.5 billion, the lowest level since 2004. The data do
not allow the separation by semester of additional
investment in existing projects to see whether such
investment slowed in the second half of the year with the
full onset of the financial crisis. But its slower growth in
2008 as a whole compared with the previous four years
suggests a more cautious approach to capital expenditure.
Citation
“Izaguirre, Ada Karina; Jett, Alexander N.. 2009. Investment Commitments to Telecommunications Continued at Peak Levels in 2008. PPI Data Update; Note No. 27. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/28eee445-a575-5748-9281-0d34e9ca1581 License: CC BY 3.0 IGO.”