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The three-criteria test and SMP: how to get it right

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  • Henning Never
  • Brigitte Preissl
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    Abstract

    The New Regulatory Framework (NRF), which guides the telecommunications regulation in the European Union (EU) countries, has established a two-step approach for regulating the telecommunications sector. To this end, the so-called Three-Criteria Test (TCT) has been developed to identify those markets that, in principle, might be subject to regulatory intervention. In the proposed paper, we will show that: the current two-step approach shows a strong bias towards excessive regulation; the TCT, as such, can be a useful tool for regulation (and deregulation), if adopted properly. The paper starts from the thesis that the current practice fails to make use of the advantages that could be derived from using the test. Based on an analysis of the regulatory practice in Europe, the paper will show that a different approach would make it possible to considerably reduce the regulatory intervention in the European telecommunications markets.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Management and Network Economics.

    Volume (Year): 1 (2008)
    Issue (Month): 1 ()
    Pages: 100-127

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    Handle: RePEc:ids:ijmnec:v:1:y:2008:i:1:p:100-127

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    Web page: http://www.inderscience.com/browse/index.php?journalID==259

    Related research

    Keywords: telecommunications regulation; telecommunications market; New Regulatory Framework; NRF; European Union; EU regulations; regulatory intervention; three-criteria test; significant market power; SMP.;

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