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State-invested enterprises in the European telecommunications industry: Are they competitive players?

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  • Paolo Castelnovo

Abstract

The present paper provides an overview of the main companies operating in European telecommunication industry over the decade 2006-2015, with a specific focus on their ownership structure. Following Christiansen and Kim (2014), State-invested telecom companies are classified into State-owned (SOEs) and partially State-owned (PSOEs) enterprises. The aim of the analysis is to investigate the current involvement of European Governments in the telecommunications sector after the deep process of privatisation started in the ?80s and to understand whether the type of ownership is connected with companies? economic performance. It turns out that European States still have an important role in the telecommunications industry, mainly through minority but significant participations into previously publicly held incumbents. Moreover, from the analysis of balance sheet data it turns out that State-Invested companies have achieved an economic performance which is comparable, if not superior, to that of private enterprises in terms of profitability. However, some gaps seem to persist as far as labour productivity and investment levels are concerned.

Suggested Citation

  • Paolo Castelnovo, 2016. "State-invested enterprises in the European telecommunications industry: Are they competitive players?," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(3), pages 219-240.
    • Handle: RePEc:fan:epepep:v:html10.3280/ep2016-003008
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    References listed on IDEAS

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    1. Geoff Edwards & Leonard Waverman, 2006. "The Effects of Public Ownership and Regulatory Independence on Regulatory Outcomes," Journal of Regulatory Economics, Springer, vol. 29(1), pages 23-67, January.
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    Cited by:

    1. Luc Bernier & Massimo Florio & Johan Willner, 2016. "Rationales, performance and governance of public entreprises. Editorial introduction," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(3), pages 5-10.
    2. Castelnovo, Paolo, 2022. "Innovation in private and state-owned enterprises: A cross-industry analysis of patenting activity," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 98-113.

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    More about this item

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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