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Regulation of network industries: between flexibility and stability

Author

Listed:
  • Alexandre Ditzel Faraco
  • Diogo R. Coutinho

Abstract

This paper explores the problems of an unstable regulatory regime in network industries and addresses the tension between the necessary flexibility in the long-term regulatory commitment and the need for institutional stability. A draft statute that substantively changes the initial terms under which fixed telecommunications services have been transferred to private companies - currently under discussion in the Brazilian Congress - is presented as an example of that tension. Some alternative proposals to tackle with universal service challenges - the underlying problem behind the mentioned draft statute - are presented in the end. JEL Classification: L5, L9, K2, K4.

Suggested Citation

  • Alexandre Ditzel Faraco & Diogo R. Coutinho, 2007. "Regulation of network industries: between flexibility and stability," Brazilian Journal of Political Economy, Center of Political Economy, vol. 27(2), pages 261-280.
    • Handle: RePEc:ekm:repojs:v:27:y:2007:i:2:p:261-280:id:565
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/565/563
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    More about this item

    Keywords

    regulation; regulatory commitment; network industries; telecommunications;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • K2 - Law and Economics - - Regulation and Business Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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