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Entry, Competition, and Regulation in UK Telecommunications

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  • Cave, Martin
  • Williamson, Peter

Abstract

In a formerly monopolized industry now subject to competition, there is likely to be considerable interaction between business strategy and regulation. The paper illustrates the development of this process in UK telecommunications. It sets out a framework in which competition between incumbent and entrants takes the form of a race on the part of the former to bridge the innovation gap and on the part of the latter to accumulate the necessary strategic assets, including regulatory assets. The strategies of major UK fixed-link telecommunications firms are analyzed in this light, and regulatory policy towards vertical separation in mobile telephony is also described. The article draws attention to the crucial role which the regulator plays in assisting entrants to gain access to strategic assets, including information. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Cave, Martin & Williamson, Peter, 1996. "Entry, Competition, and Regulation in UK Telecommunications," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(4), pages 100-121, Winter.
    • Handle: RePEc:oup:oxford:v:12:y:1996:i:4:p:100-121
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    Cited by:

    1. Gema Pastor-Agustín & Marisa Ramírez-Alesón & Manuel Espitia-Escuer, 2010. "Modeling Asset Interconnectedness on Investment Models," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(2), pages 203-212, May.
    2. Knorr, Andreas, 2002. "Liberalization in Telecommunications," Discussion Paper Series 26225, Hamburg Institute of International Economics.
    3. Mattos, César & Coutinho, Paulo, 2004. "The Duopoly Policy in the Brazilian Model of Telecommunications Reform," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 58(3), July.
    4. Jolian McHardy & Michael Reynolds & Stephen Trotter, 2012. "On the problem of network monopoly," Theory and Decision, Springer, vol. 73(2), pages 223-248, August.
    5. Knorr, Andreas, 2002. "Liberalization in telecommunications," HWWA Discussion Papers 162, Hamburg Institute of International Economics (HWWA).
    6. Michie, Jonathan, 1997. "Network externalities--the economics of universal access," Utilities Policy, Elsevier, vol. 6(4), pages 317-324, December.
    7. Grigoriev, A. & Uetz, M.J., 2005. "Scheduling parallel jobs with linear speedup," Research Memorandum 015, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    8. Kotakorpi, Kaisa, 2002. "Access Pricing and Competition in Telecommunications," Discussion Papers 283, VATT Institute for Economic Research.

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