3.4 Industry

It is notable that remote locations represent unattractive markets for telecommunication companies. However, ICT industries can be established in remote areas through attractive business schemes that expand telecommunication coverage in those remote areas without the need for subsidies.

What, therefore, are the elements that stimulate viable and attractive business plans for developing ICT infrastructure in remote areas and in Indigenous communities? What is the role of government in generating them? Prior to exploring the answers to these questions, it is necessary to understand a fundamental idea with respect to economic matters. According to Braudel´s model, there are three levels of economy, each capable of fully satisfying human needs, and with specific institutions that are suitable for each specific economic environment.13 The three levels are: the subsistence economy, the local economy and the global economy.14
 

Commonly, telecommunication coverage schemes do not mesh with this model, and companies that operate in the global economy often attempt to operate in areas with subsistence economies. This requires large subsidies, instead of generating the conditions necessary to create infrastructure suitable for this kind of economy.

 

13See, OCDE (1996) Reconciling Economy and Society: Towards a Plural Economy; Braudel (1980) Civilisation Matérialle, Économie et Capitalism; Neff (1993) Desarrollo a Escala Humana: Conceptos y Aplicaciones.

14 Diagram based on Haughton (1999) p. 9.