Predictors of Growth of Teledensity in Ethiopian Telecommunications Corporation
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Date
2009-06
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Addis Abeba university
Abstract
The Ethiopian Telecommunications Corporation is the sole provider of national and
international telecommunications in Ethiopia since 1894. In Ethiopia, teledensity grew so
slowly, as compared to developed countries or other developing countries. This study uses 31
years of yearly data starting from the beginning of 1970 in Ethiopian fiscal year.
The problems and strategic actions for growth in teledensity are discussed. Also, the
opportunities for utilizing information and communication technologies to solve priority
problems and to realize sustainable development in the country are examined. Parametric
(Cochrane‐Orcutt) and nonparametric (lowess) multiple regression models are employed.
Specifically, the findings of the parametric regression model based on Cochran‐Orcutt
transformation to handle serial correlation of residuals suggest that major determinant for
growth of teledensity are higher GDPC and higher contribution of the service sector share to
GDP in Ethiopia. And the average revenue generated by each telephone line (average used
charge) is negatively related to teledensity in Ethiopia. In addition, the non parametric
regression based on lowess method fitted the teledensity data equally as good as the
parametric method