IMPORT AND TELECOM SECTOR REVENUE IN EXPLAINING THE MOTIVES TO INVEST IN INNOVATIVE TECHNOLOGY BY ARMENIAN OPERATORS

Аннотация

By estimating the impact of real imports of innovative technologies and non-innovative equipment on the real revenue of the telecommunications operators; and the impact of real imports of non-innovative equipment and the real revenue of the telecommunications operators on the real revenue of the telecommunications operators in Armenia from the second half of 2014 till the end of 2020, we have identified which factors will mainly lead to the growth of the sector and force them to invest in innovative technology. According to the analysis of the econometric model #1, it can be said that companies increase the cost of importing innovative technologies and equipment by 6.11%, on average, as soon as revenue decreases by 1%. Secondly, import of non-innovative equipment, like phones, once every 24 months, could lead to an increase in import of innovative equipment. According to the model #2 the costs of importing non-innovative equipment have a statistically significant impact on the revenue of telecom companies, however, the import of new generation phones does not lead to a huge increase in the use of services offered by operators. 11 months after the introduction of innovative technologies, their impact on the revenue of the telecom companies becomes statistically significant and negative. We conclude that the decrease of telecoms revenue leads to the growth of real imports of innovative technologies. The model results will enable telecoms to overcome the situations that would decrease companies’ revenue, to revise the periods set for importing equipment and innovative technology.