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The role of competition in institutional reform of telecommunications: lessons from Sri Lanka

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  • Samarajiva, Rohan

Abstract

Consolidation of the recent wave of institutional reforms in telecommunications requires assessment of the position of competition in relation to organizational reform of incumbents and the establishment of regulation. Drawing lessons from the experience of Sri Lanka, a country which has achieved good results from comprehensive reforms over a nine-year period, the article concludes that competition plays the most important role. In addition to the direct benefits of increased investment, lower prices and higher levels of connectivity, quality of service and innovation, competition reinforces organizational reform of the incumbent, contributes to the consolidation and legitimation of regulation and prevents the rollback of advances in organizational reform of the incumbent and in regulation. The article also draws general conclusions from the policy choices made by Sri Lanka regarding the strategy of introducing competition; the sequence of privatization and competition; the balance between telecommunications sector objectives and yield maximization from privatization/ownership; universal access/service; managing competition within technology-defined subsectors; and ongoing regulation for competition.

Suggested Citation

  • Samarajiva, Rohan, 2000. "The role of competition in institutional reform of telecommunications: lessons from Sri Lanka," Telecommunications Policy, Elsevier, vol. 24(8-9), pages 699-717, September.
    • Handle: RePEc:eee:telpol:v:24:y:2000:i:8-9:p:699-717
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    Cited by:

    1. Fang, Xiang & Yen, David C., 2006. "Demographics and behavior of Internet users in China," Technology in Society, Elsevier, vol. 28(3), pages 363-387.
    2. Berg, Sanford V., 2000. "Sustainable regulatory systems: laws, resources, and values," Utilities Policy, Elsevier, vol. 9(4), pages 159-170, December.
    3. Devkar, Ganesh A. & Mahalingam, Ashwin & Deep, Akash & Thillairajan, A., 2013. "Impact of Private Sector Participation on access and quality in provision of electricity, telecom and water services in developing countries: A systematic review," Utilities Policy, Elsevier, vol. 27(C), pages 65-81.
    4. Chang, Jane & Fang, Xiang & Yen, David C., 2005. "China's telecommunication market for international investors: opportunities, challenges, and strategies," Technology in Society, Elsevier, vol. 27(1), pages 105-121.
    5. El-Haddad, Amirah, 2017. "Welfare gains from utility reforms in Egyptian telecommunications," Utilities Policy, Elsevier, vol. 45(C), pages 1-26.
    6. Thai, Do Manh & Falch, Morten & Williams, Idongesit, 2015. "The Role Of Stakeholders On Implementing Universal Services In Vietnam," 26th European Regional ITS Conference, Madrid 2015 127184, International Telecommunications Society (ITS).

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