Indeed, not only is competition feasible in many, if not most, segments of the telecommunications market, but with new technologies such as satellite telephones, governments will be able to maintain their monopolies only with repressive measures. A competitive telecommunications sector opens up a whole new range of economic possibilities. It permits an enormous flow of private capital. The expansion of telecommunications does not have to be limited by the current revenues of the telecommunications monopoly, or the government's ability to borrow. Private capital can fuel rapid expansion.
Competition is also likely to drive down prices increasing access for the poor.
In many developing countries, entrepreneurs have already demonstrated their ability to bring telephone services to poor villages. A single phone can serve large numbers of poor people. In Peru, for instance, Community Telephone Centers serve an average of 640 low-income customers, who use the telephone not only for emergencies, such as fire and health, but also to search for jobs. Not only do telecommunications companies in the more advanced countries stand ready and able to provide these services, competition among these companies makes it all the more likely that the developing countries will enjoy more of the fruits of these innovations. But to realize these benefits, the developing countries must ensure that there is effective competition among these international companies.