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European Telecommunications Infrastructures

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Author Info

  • Martin Cave
  • Luigi Prosperetti

Abstract

Since the liberalization of European telecommunications markets, regulators at European and national level have been relatively successful in forcing down the price of access to the historic monopolists' fixed network. This has led, however, to the development primarily of 'service competition' in most of Europe, while infrastructure competition has been limited. As a consequence, investment levels are significantly lower than in the United States, particularly for the provision of broadband. Mobile telephony has, however, diffused quickly in Europe compared with the United States, partly as a result of the successful second-generation Global System for Mobile Communications (GSM) standard adopted, and partly as a result of the charging systems employed. These developments have, however, been imperilled by the cost and delays associated with third-generation mobile technology. A new regime for regulating communications is currently being developed in Europe. If properly applied, it will reduce regulatory intervention and promote investment and innovation in both fixed and mobile services, but there is a risk that national regulators may thwart this outcome. Copyright 2001, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 17 (2001)
Issue (Month): 3 ()
Pages: 416-431

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Handle: RePEc:oup:oxford:v:17:y:2001:i:3:p:416-431

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Cited by:
  1. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2012. "Does the growth of mobile markets cause the demise of fixed networks? Evidence from the European Union," DICE Discussion Papers 42, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Parcu, Pier Luigi & Silvestri, Virginia, 2013. "Electronic communications regulation in Europe: An overview of past and future problems," 24th European Regional ITS Conference, Florence 2013 88509, International Telecommunications Society (ITS).
  3. Foros, Oystein, 2004. "Strategic investments with spillovers, vertical integration and foreclosure in the broadband access market," International Journal of Industrial Organization, Elsevier, vol. 22(1), pages 1-24, January.
  4. Pier Luigi Parcu, 2013. "Electronic Communications Regulation in Europe: An Overview of Past and Future Problems," RSCAS Working Papers 2013/92, European University Institute.
  5. Markos Tselekounis & Dimitris Varoutas & Drakoulis Martakos, 2012. "On the social optimality of make-or-buy decisions," Journal of Regulatory Economics, Springer, vol. 41(2), pages 238-268, April.

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