Predictors Of Growth Of Teledensity In Ethiopian Telecommunications Corporation

The Ethiopian Telecommunications Corporation is the sole provider of national andrninternational telecommunications in Ethiopia since 1894. In Ethiopia, teledensity grew sornslowly, as compared to developed countries or other developing countries. This study uses 31rnyears of yearly data starting from the beginning of 1970 in Ethiopian fiscal year.rnThe problems and strategic actions for growth in teledensity are discussed. Also, thernopportunities for utilizing information and communication technologies to solve priorityrnproblems and to realize sustainable development in the country are examined. Parametricrn(Cochrane‐Orcutt) and nonparametric (lowess) multiple regression models are employed.rnSpecifically, the findings of the parametric regression model based on Cochran‐Orcuttrntransformation to handle serial correlation of residuals suggest that major determinant forrngrowth of teledensity are higher GDPC and higher contribution of the service sector share tornGDP in Ethiopia. And the average revenue generated by each telephone line (average usedrncharge) is negatively related to teledensity in Ethiopia. In addition, the non parametricrnregression based on lowess method fitted the teledensity data equally as good as thernparametric method

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