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The Frontier of Telecommunications Deregulation: Small Countries Leading the Pack

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Author Info
Spiller, Pablo T
Cardilli, Carlo G

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Abstract

Interconnection, equal access, unbundling, and industry structure are four key determinants of facilities-based competition in telecommunications. Using these building blocks, this paper analyzes the differences in telecommunications regulatory regimes in Australia, Chile, Guatemala, and New Zealand, assessing the effect on competition and consumer welfare. Some regulation is necessary as incumbents can prolong their market power after demonopolization by exploiting positive externalities inherent to telecommunications networks. The authors emphasize the superiority of market mechanisms over traditional regulatory processes to achieve efficient transactions among operators. Such market mechanisms need clear rules and credible enforcement. Copyright 1997 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 11 (1997)
Issue (Month): 4 (Fall)
Pages: 127-38
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Handle: RePEc:aea:jecper:v:11:y:1997:i:4:p:127-38

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  1. Economides, Nicholas, 1996. "The economics of networks," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 673-699, October. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ronald Fischer & Pablo Serra, 2002. "pserra@dii.uchile.cl," Documentos de Trabajo 140, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  2. Diaz-Bautista, Alejandro, 2002. "The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence," ERSA conference papers ersa02p102, European Regional Science Association. [Downloadable!]
  3. Otto Toivanen, 2004. "Choosing Standards," Discussion Papers 937, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Thomas Hazlett & Giancarlo Ibarguen & Wayne Leighton, 2007. "Property Rights to Radio Spectrum in Guatemala and El Salvador: An Experiment in Liberalization," Review of Law & Economics, Berkeley Electronic Press, vol. 3(2), pages 10. [Downloadable!] (restricted)
  5. Patrick Massey, 2004. "Is Irish Utility Regulation Failing Consumers?," Economics, Finance and Accounting Department Working Paper Series n1451104, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
  6. Russell Pittman, 2001. "Vertical Restructuring of the Infrastructure Sectors of Transition Economies," Industrial Organization 0111002, EconWPA. [Downloadable!]
  7. Ronald Fischer & Pablo Serra, 2000. "Regulating the Electricaly Sector in Latin America," Documentos de Trabajo 86, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  8. Israel Fainboim Yaker & Carlos Jorge Rodríguez Restrepo, 2000. "El desarrollo de la infraestructura en Colombia en la década de los noventa. Parte I," REFORMAS ECONÓMICAS 002490, CEPAL NACIONES UNIDAS. [Downloadable!]
  9. Carlos Diaz & Raimundo Soto, . "Open-Access Issues in the Chilean Telecommunications and Electricity Sectors," ILADES-Georgetown University Working Papers inv124, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
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