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European Telecommunications Markets on the Verge of Full Liberalization

Author

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  • Leonard Waverman
  • Esen Sirel

Abstract

January 1, 1998 is the date when voice telephony is fully liberalized in most European countries. The process of privatization and liberalization has been uneven across Europe; actively embraced by countries such as the U. K., Sweden, and Finland, while opposed in others. The role of the European Commission which uses its powers under the single market to push recalcitrant operators and countries is key. No two countries in Europe are following the exact same path, which makes the Commission's role difficult; it is unclear to what extent rules interconnection, access, and universal service funding should be identical. New entrants in country markets include other incumbent operators as well as other utilities; alliances are forming among many participants. The central issue is the degree to which the marketplace will be allowed to function, rather than forced to compete, through politics.

Suggested Citation

  • Leonard Waverman & Esen Sirel, 1997. "European Telecommunications Markets on the Verge of Full Liberalization," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 113-126, Fall.
    • Handle: RePEc:aea:jecper:v:11:y:1997:i:4:p:113-26
    Note: DOI: 10.1257/jep.11.4.113
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.11.4.113
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    Cited by:

    1. Liang Wang & Qiming Sun, 2022. "Market Competition, Infrastructure Sharing, and Network Investment in China’s Mobile Telecommunications Industry," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    2. Lestage, Romain & Flacher, David & Kim, Yeonbae & Kim, Jihwan & Kim, Yunhee, 2013. "Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms?," Information Economics and Policy, Elsevier, vol. 25(1), pages 41-50.
    3. María José Gil‐Moltó & Joanna Poyago‐Theotoky, 2008. "Flexible versus Dedicated Technology Adoption in the Presence of a Public Firm," Southern Economic Journal, John Wiley & Sons, vol. 74(4), pages 997-1016, April.
    4. Cheung, Zeerim & Aalto, Eero & Nevalainen, Pasi, 2020. "Institutional Logics and the Internationalization of a State-Owned Enterprise: Evaluation of International Venture Opportunities by Telecom Finland 1987–1998," Journal of World Business, Elsevier, vol. 55(6).
    5. Diaz-Bautista, Alejandro, 2002. "The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence," ERSA conference papers ersa02p102, European Regional Science Association.
    6. Martin Quinn & Miguel Godinho de Matos & Christian Peukert, 2022. "The Welfare Effects of Mobile Internet Access - Evidence from Roam-Like-at-Home," CESifo Working Paper Series 9612, CESifo.
    7. Productivity Commission, 2002. "International benchmarking of Australian telecommunications services," Microeconomics 0207009, University Library of Munich, Germany.
    8. White, Lawrence J., 2000. "US telephone deregulation: lessons to be learned, mistakes to be avoided," Japan and the World Economy, Elsevier, vol. 12(2), pages 173-183, May.
    9. Knorr, Andreas, 2002. "Liberalization in Telecommunications," Discussion Paper Series 26225, Hamburg Institute of International Economics.
    10. Yuqing Xing, 2001. "Assessing the Significance of Telecommunication Deregulation on the Growth of Japan's Mobile Phone Market," Working Papers EMS_2001_02, Research Institute, International University of Japan.
    11. James Alleman & Gary Madden & Scott Savage, 2000. "Trade imbalance in international message telephone services," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1311-1321.
    12. Ramón Faulí-Oller & Antonia Díaz, 1999. "- Competition And Privatization," Working Papers. Serie AD 1999-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    13. Fraquelli, Giovanni & Vannoni, Davide, 2000. "Multidimensional performance in telecommunications, regulation and competition: analysing the European major players," Information Economics and Policy, Elsevier, vol. 12(1), pages 27-46, March.
    14. Massey, Patrick, 2004. "Is Irish Utility Regulation Failing Consumers?," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(4-Winter), pages 1-18.
    15. Maria Jose Gil-Molto & Joanna Poyago-Theotoky, 2006. "Flexible vs Dedicated Technology Adoption in the Presence of a Public Firm," Discussion Paper Series 2006_1, Department of Economics, Loughborough University, revised Jan 2006.
    16. Rabah Arezki & Vianney Dequiedt & Rachel Yuting Fan & Carlo Maria Rossotto, 2021. "Working Paper 352 - Liberalization, Technology Adoption, and Stock Returns: Evidence from Telecom," Working Paper Series 2478, African Development Bank.
    17. Knorr, Andreas, 2002. "Liberalization in telecommunications," HWWA Discussion Papers 162, Hamburg Institute of International Economics (HWWA).
    18. Paweł Dziewulski, 2008. "Konkurencja na rynku telekomunikacyjnym przy asymetrycznym dostępie do infrastruktury," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 47-69.
    19. Russell Pittman, 2001. "Vertical Restructuring of the Infrastructure Sectors of Transition Economies," Industrial Organization 0111002, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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