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Telecommunications and transition in Central and Eastern Europe

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  • Welfens, Paul JJ

Abstract

This paper analyses the strategic role of liberalization and competition of the telecommunication sector in transforming economies and shows that network externalities cause special problems in the stage of early network expansion. Introducing competition in the telecommunication sector in post-socialist East European economies could not only contribute to rapid network expansion but also stimulate economic efficiency through backward linkages and forward linkages. Falling marginal costs during network expansion and improving quality of services - due to network competition - could generate high productivity gains and stimulate demand across the economy. Improved information networks will also have market-enhancing effects.

Suggested Citation

  • Welfens, Paul JJ, 1995. "Telecommunications and transition in Central and Eastern Europe," Telecommunications Policy, Elsevier, vol. 19(7), pages 561-577, October.
    • Handle: RePEc:eee:telpol:v:19:y:1995:i:7:p:561-577
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    Cited by:

    1. Madden, Gary & Savage, Scott J., 1998. "CEE telecommunications investment and economic growth," Information Economics and Policy, Elsevier, vol. 10(2), pages 173-195, June.
    2. Boymal, Jonathan & Martin, Bill & Lam, Dieu, 2007. "The political economy of Internet innovation policy in Vietnam," Technology in Society, Elsevier, vol. 29(4), pages 407-421.
    3. Paul J.J. Welfens, 2004. "Digitale Soziale Marktwirtschaft: Probleme und Reformoptionen im Kontext der Expansion der Informations- und Kommunikationstechnologie," EIIW Discussion paper disbei123, Universitätsbibliothek Wuppertal, University Library.
    4. Dvornik, Darko & Sabolić, Dubravko, 2007. "Telecommunication liberalization and economic development in European countries in transition," Technology in Society, Elsevier, vol. 29(4), pages 378-387.

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