India : The link between tele-density & prosperity

A research sponsored by vodafone says that penetration of cellular technology is related to prosperity and economy growth. The report is available for download India: The Impact of Mobile Phones [pdf] on the Indian Council for Research on International Economic Relations (ICRIER) web site:

Professor Kathuria, commented “We believe this analysis shows that telecommunications is a critical building block for the country’s economic development. Our work also shows that the real benefits of telecommunications only start when a region passes a threshold penetration rate of about 25%. Many areas have still not attained that level, which indicates the importance of increasing teledensity as soon as possible. If Bihar’s mobile penetration rates were similar to those of Punjab, for example, then it would enjoy a growth rate that is 4% higher than its current rate.”

Via Mint

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