Innovative ways to finance telecommunication in developing countries

Abstract: Purpose: To investigate what kind of innovative ways developing countries can finance telecommunication and on the basis of that also investigate if there is a connection between financing telecommunication and poverty reduction. Method: A qualitative study by using interview, questionnaire survey and a theoretical background. We have investigated what innovative ways of financing telecommunication that exist, but also to see if financing telecommunication could reduce poverty, which suits our purpose. Result: The most innovative way a country or company can finance telecommunication is finding the right combination of financing ways and strategies, to have the knowledge of which ways to choose from is a key in finding the optimal combination for a country or company. The main advantage by using a combination of strategies and financing ways is that the risks will be reduced, which is an innovative way of financing telecommunication. This will attract more investors, because they will get better security on their investments. By the result of the questionnaire survey we see that there is a lack of knowledge among ways to finance telecommunication, therefore it is important to inform companies and countries of both traditional ways and what makes a specific financing way innovative, which will give them a fair chance to find ways that suits their basic conditions. We found a link between telecommunication and poverty reduction hence by financing telecommunication projects in developing countries will result in some form of poverty reduction.