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Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract

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  • Knieps, Günter

Abstract

The increasing complexity of EU regulation is resulting in a tangle of contradictory decisions and statements, involving also new markets, such as interactive cable television, Internet etc. Whereas in the past sector-specific regulation has been applied in a discretionary manner in order to correct the rules of the market game, the really challenging task for the future seems to be the development and implementation of statu- tory constraints for the regulatory authorities in order to guarantee a predictable regulation of market power. For this purpose the design and implementation of a disaggre- gated regulatory contract on the statutory level (EU Directives and national law) is derived, which should be an essential principle in the EU Review 2006. Its basic components consist of limiting regulation to monopolistic bottlenecks, exploiting the phasingout potentials, and a disaggregated application of regulatory instruments. In con- trast, the problem of opportunistic regulatory behaviour with respect to irreversible investments can be solved by the application of the already existing statutory constraint of the Framework Directive guaranteeing financial viability.

Suggested Citation

  • Knieps, Günter, 2005. "Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract," Discussion Papers 109 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    • Handle: RePEc:zbw:aluivr:109r
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    1. Valletti, Tommaso M., 0. "The theory of access pricing and its linkage with investment incentives," Telecommunications Policy, Elsevier, vol. 27(10-11), pages 659-675, November.
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    Cited by:

    1. Knieps, Günter, 2012. "Competition and the railroads: A European perspective," Discussion Papers 142, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter & Zenhäusern, Patrick, 2008. "The fallacies of network neutrality regulation," Discussion Papers 115 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Knieps, Günter & Weiß, Hans-Jörg, 2008. "Regulatory agencies and regulatory risk," Discussion Papers 118 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Polykalas, Spyros E. & Prezerakos, George N., 2015. "Measuring the impact of market competition analysis process in EU׳s electronic communications sector: Catalyst or impediment towards market competition?," Telecommunications Policy, Elsevier, vol. 39(3), pages 241-252.
    5. Paul de Bijl, 2011. "Broadband Policy in the Light of the Dutch Experience with Telecommunications Liberalization," CPB Discussion Paper 169, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Knieps, Günter, 2010. "The three criteria test, the essential facilities doctrine and the theory of monopolistic bottlenecks," Discussion Papers 132, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Knieps, Günter & Zenhäusern, Patrick, 2013. "Regulatory fallacies in global telecommunications: The case of international mobile roaming," Discussion Papers 144, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. Knieps, Günter & Weiß, Hans-Jörg, 2007. "Reduction of regulatory risk: a network economic approach," Discussion Papers 117, University of Freiburg, Institute for Transport Economics and Regional Policy.
    10. Knieps, Günter, 2013. "The evolution of the generalized differentiated services architecture and the changing role of the Internet engineering task force," Discussion Papers 147, University of Freiburg, Institute for Transport Economics and Regional Policy.
    11. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of Internet traffic quality regulation," Discussion Papers 136, University of Freiburg, Institute for Transport Economics and Regional Policy.
    12. 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.
    13. Günter Knieps, 2006. "The Different Role Of Mandatory Access In German Regulation Of Railroads And Telecommunications," Journal of Competition Law and Economics, Oxford University Press, vol. 2(1), pages 149-158.
    14. Knieps, Günter, 2014. "Competition and third party access in railroads," Discussion Papers 150, University of Freiburg, Institute for Transport Economics and Regional Policy.
    15. Knieps, Günter & Zenhäusern, Patrick, 2009. "The reform of the European regulatory framework for electronic communications: The unexploited phasing-out potentials," Discussion Papers 128, University of Freiburg, Institute for Transport Economics and Regional Policy.
    16. Birke, Franziska, 2007. "Universaldienstregulierung in der Telekommunikation heute: Herausforderungen, Chancen und Risiken ; ein historischer Ansatz," Discussion Papers 114, University of Freiburg, Institute for Transport Economics and Regional Policy.
    17. Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    18. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of internet traffic quality regulation," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52149, International Telecommunications Society (ITS).
    19. Knieps, Günther, 2010. "Regulatory reforms of European network industries and the courts," Discussion Papers 129 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    20. Knieps, Günter, 2008. "The net neutrality debate and the German communications and competition law," Discussion Papers 120, University of Freiburg, Institute for Transport Economics and Regional Policy.

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