The impact of telecommunications on Latin America’s economic growth

Telecommunications

The impact of telecommunications on Latin America’s economic growth

Telecommunications is the transmission of data and information at a distance through electronic and technological means such as a Smartphone. Today, the telecommunications industry sector plays a very important role in society and in the growth of a country’s economy.

In the following Guinea Mobile article we will analyze the impact of the telecommunications sector on the economic growth of several countries in Latin America.

Better products and services

In the last two decades, following the transition from monopoly to free market, better communications services and products have been incorporated. Innovation in the telecommunications industry generates the invention and production of new products and services. For example, new financial and banking applications such as Yape.

A clear example of the evolution of products is the reduced use of fixed telephones, since there are better alternatives. This shows how the telecommunications industry generates innovation.

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Information

Another important influence of telecommunications is information. Telecommunications reduce the cost of access to information by reaching places outside the main cities. By promoting access to information, users make more informed decisions and market efficiency is improved.

Productivity

Advances in telecommunications contribute to productivity growth and optimize processes such as delivery applications. This application makes a restaurant business more productive and efficient.

Impact of telecommunications on economic growth

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The telecommunications industry has had a positive impact on poverty in several parts of the world, including Latin America. This is because technology promotes economic development and improves the quality of life in the neediest areas. Having access to the internet and mobile technology helps in the formation of human capital.

Let’s look at the case of a baker in a village in the Peruvian highlands. The cell phone is used to maintain and strengthen his networks of contacts and facilitates his commercial activities with clients. Telecommunications are a key instrument to improve the quality of life of these people and give them a better chance of integrating into the labor market. When we incorporate telecommunications into businesses, their presence helps to optimize processes, provide access to information and expand supplier networks. Cell phones have become a tool for the lower sectors to improve their position in social and economic networks.

Companies

The telecommunications industry generates millions of jobs in several countries. It has also helped many companies to reduce costs and optimize communication processes. In other words, they have been able to replace physical communications with electronic ones. It has also helped rural businesses to be able to communicate the status of their crops with their customers. As we can see, telecommunications streamline processes in all types of businesses, mainly by providing instant and effective communication for their users.

As we have seen, the telecommunications industry is contributing to different dimensions of economic growth in Latin America. The use of telecommunications increases productivity, connectivity, access to information, and it is also a great source of employment generation, entrepreneurship and innovation. For all these reasons, telecommunications help reduce poverty in countries like ours.

Up to this point we have seen the significant impact of the telecommunications industry on the economic growth of a country. We hope you have found this information useful.

At Guinea Mobile we are always exploring the latest technology trends. If you are looking to improve your company’s communication through mobile subscriptions, please contact us and we will help you.

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