Building value through telecommunications: Regulatory roadblocks on the information superhighway

In a global economy that is increasingly information intensive, almost everyone agrees that an advanced telecommunications network infrastructure is key to economic growth and value creation. Throughout the world there has been a flurry of government activity promoting investment in advanced telecommunications network infrastructures. Since public sector budgets are strained in most countries, new government policies and regulations must be targeted to stimulate private sector investment. But business worship at the altar of cash flow; investment incentives are directly related to the pursuit of high profits and competitive advantage. Established regulatory processes, on the other hand, continue to focus on constraining earnings and market power, and therefore represent a formidable institutional roadblock to increased private investment. However, if governments can avoid the temptation to overregulate the introduction of competitive entry into telecommunication service markets, rapid deployment of the Information Superhighway will not necessarily fall victim to a fundamentally flawed regulatory process.