The use of modern technology can lead to higher economic growth if it is attuned to the needs of the 80 million plus population of this country.

It looks like technology that is accessible or that may be used by only a few who can afford it will not lead to a high economic growth rate. Such a technology will have little effect on employment and productivity.

Producers and sellers of technology have to adjust their products and services so that more people can buy them. Such an approach will also expand their market.

A case in point is telecommunications. The telephone companies are now engaged in some kind of “price war” with drastic reductions in the cost of calling and texting through so called “unlimited” packages particularly those of Sun Cellular and Touch Mobile. Sun's P250/month and Touch Mobiles P300/month charges for unlimited texting and calling will certainly be attractive to cellphone users. Smart and Globe would probably lower their costs as soon as their earnings drop and the market share of Sun and TM increase dramatically within this year. Eventually a price equilibrium will be reached. This is the price at which sellers are willing to sell and buyers are willing to buy the service.

Next will be Voice over Internet Protocol (or VoIP).

The use of the internet as an alternative to long-distance telephone services is being pushed by some government agencies, particularly the National Economic and Development Authority (NEDA). If the use of VoIP is allowed the cost of an international call will drop by 70% or from 40 cents a minutes to 10 cents a minute. This would even be cheaper than the normal per minute charge of SMART and Globe (local call only).

These innovations and price reductions will improve the flow of communications and keep production costs down resulting in increased productivity. There are many more innovations in this field that will benefit more people.

Another instance is the widespread use of the internet in public elementary and secondary schools. This will improve instruction in schools accessible to the poor and will be a major leap in the months to come.

Technology that benefits the people should always be welcome.

The instances mentioned above are excellent examples.