Additionally, customers will have better access to phone services and government s can take credit for making people s live better. Suppliers will also benefit from increased spending and raw material delivery. The only possible negative effect could be on creditors. The telecommunications industry is rife with patent infringement liability lawsuits and counter-suits. These legal costs continue to rise as each company tries to protect itself from liability damage judgements and loss of technological superiority due to patent infringement.
Foreign investment is almost always risky due to the nature of political instability.
Many American companies have been nationalized when a new government succeeds an old one. Cuba, Iran, and Nicaragua are recent examples. While the risk of losing investment dollars due to political instability is not new, recent trends indicate that the telecommunications industry is in increasing jeopardy of investment loss due to the quantity of third world investment. As with political instability, foreign terrorist activity is also on the rise. Terrorist activity should be expected in unstable regions of the world.