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European Telecommunications Infrastructures

Author

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  • Martin Cave
  • Luigi Prosperetti

Abstract

Since the liberalization of European telecommunications markets, regulators at European and national level have been relatively successful in forcing down the price of access to the historic monopolists' fixed network. This has led, however, to the development primarily of 'service competition' in most of Europe, while infrastructure competition has been limited. As a consequence, investment levels are significantly lower than in the United States, particularly for the provision of broadband. Mobile telephony has, however, diffused quickly in Europe compared with the United States, partly as a result of the successful second-generation Global System for Mobile Communications (GSM) standard adopted, and partly as a result of the charging systems employed. These developments have, however, been imperilled by the cost and delays associated with third-generation mobile technology. A new regime for regulating communications is currently being developed in Europe. If properly applied, it will reduce regulatory intervention and promote investment and innovation in both fixed and mobile services, but there is a risk that national regulators may thwart this outcome. Copyright 2001, Oxford University Press.

Suggested Citation

  • Martin Cave & Luigi Prosperetti, 2001. "European Telecommunications Infrastructures," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 17(3), pages 416-431.
    • Handle: RePEc:oup:oxford:v:17:y:2001:i:3:p:416-431
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    Cited by:

    1. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2011. "Does the growth of mobile markets cause the demise of fixed networks? Evidence from the European Union," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52144, International Telecommunications Society (ITS).
    2. Tselekounis, Markos & Varoutas, Dimitris, 2013. "Investments in next generation access infrastructures under regulatory uncertainty," Telecommunications Policy, Elsevier, vol. 37(10), pages 879-892.
    3. Polemis, Michael & Tselekounis, Markos, 2019. "Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector," MPRA Paper 92770, University Library of Munich, Germany.
    4. Parcu, Pier Luigi & Silvestri, Virginia, 2014. "Electronic communications regulation in Europe: An overview of past and future problems," Utilities Policy, Elsevier, vol. 31(C), pages 246-255.
    5. von Hirschhausen, Christian & Beckers, Thorsten & Brenck, Andreas, 2004. "Infrastructure regulation and investment for the long-term--an introduction," Utilities Policy, Elsevier, vol. 12(4), pages 203-210, December.
    6. Johns Adam, 2012. "Contested Contestability: Competition Policy and the Development of Communications Satellite Broadcasting in Japan," Business and Politics, De Gruyter, vol. 14(2), pages 1-21, August.
    7. Michael Böheim & Klaus S. Friesenbichler & Susanne Sieber, 2006. "Teilstudie 19: Wettbewerb und Regulierung," WIFO Studies, WIFO, number 27458.
    8. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: The fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. Ben Dkhil, Inès, 2014. "Regulation and Investment in Telecom Network Infrastructure Facilities: The Recent Developments and Debates," MPRA Paper 72910, University Library of Munich, Germany, revised 02 Feb 2015.
    10. P. Baecker & G. Grass & U. Hommel, 2010. "Business value and risk in the presence of price controls: an option-based analysis of margin squeeze rules in the telecommunications industry," Annals of Operations Research, Springer, vol. 176(1), pages 311-332, April.
    11. Parcu, Pier Luigi & Silvestri, Virginia, 2013. "Electronic communications regulation in Europe: An overview of past and future problems," 24th European Regional ITS Conference, Florence 2013 88509, International Telecommunications Society (ITS).
    12. Pier Luigi Parcu, 2013. "Electronic Communications Regulation in Europe: An Overview of Past and Future Problems," RSCAS Working Papers 2013/92, European University Institute.
    13. Markos Tselekounis & Dimitris Varoutas & Drakoulis Martakos, 2012. "On the social optimality of make-or-buy decisions," Journal of Regulatory Economics, Springer, vol. 41(2), pages 238-268, April.
    14. Matthias Finger & Dominique Finon, 2011. "From ‘Service Public’ to Universal Service: The Case of the European Union," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 4, Edward Elgar Publishing.
    15. Dogan, Pinar & Bourreau, Marc & Manant, Matthieu, 2010. "A Critical Review of the “Ladder of Investment†Approach," Scholarly Articles 4777447, Harvard Kennedy School of Government.
    16. Foros, Oystein, 2004. "Strategic investments with spillovers, vertical integration and foreclosure in the broadband access market," International Journal of Industrial Organization, Elsevier, vol. 22(1), pages 1-24, January.
    17. Margarete Czerny & Klaus S. Friesenbichler & Daniela Kletzan & Kurt Kratena & Wilfried Puwein & Michael Weingärtler, 2006. "Teilstudie 10: Produktivitätssteigernde Infrastrukturinvestitionen," WIFO Studies, WIFO, number 27449.

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