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Liberalizing Basic Telecommunications: The Asian Experience

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Author Info
Fink, Carsten
Mattoo, Aaditya
Rathindran, Randeep

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Abstract

The liberalization of the basic telecommunications sector in Asian countries is examined in this paper with a view to identify the elements of good policy and examine how it can be promoted through multilateral negotiations. We find that despite the move away from traditional public monopolies, most Asian governments are still unwilling to allow unrestricted entry, eliminate limits on private and foreign ownership, and establish strong independent regulators. Where comprehensive reform including privatization, competition and regulation has been implemented, there are significantly higher levels of main line availability, service quality and labor productivity. Somewhat surprisingly, there has not been much unilateral liberalization since the last round of GATS telecommunications negotiations. The new round therefore faces the challenge of not merely harvesting unilateral liberalization as in the past, but of negotiating away existing restrictions. Furthermore, since quantitative restrictions on the number of suppliers are pervasive, deepened GATS rules could help ensure the transparent and non-discriminatory allocation of licenses. There may also be a need to sharpen the regulatory principles established in the last round, and to create rules that safeguard not only the rights of foreign suppliers but also those of consumers. In diesem Papier wird die Liberalisierung des Telekommunikationssektors in asiatischen Ländern mit dem Ziel untersucht, die Elemente guter Politik zu identifizieren und zu prüfen, wie diese Politik durch multilaterale Verhandlungen unterstützt werden kann. Trotz ihrer Abkehr von traditionellen staatlichen Monopolen sind die meisten asiatischen Regierungen weiterhin nicht geneigt, uneingeschränkten Marktzugang zu gewähren, Beschränkungen privaten und ausländischen Eigentums an Telekommunikationsunternehmen aufzuheben und starke unabhängige Regulierungsbehörden zu schaffen. Wir zeigen, dass dort, wo umfassende Reformen - Privatisierung, Wettbewerb und Regulierung - durchgeführt wurden, die Zahl der Anschlüsse, die Servicequalität und die Arbeitsproduktivität deutlich gestiegen sind. Etwas überraschend ist, dass es seit der letzten Runde der Telekommunikationsverhandlungen unter dem GATS (General Agreement on Trade in Services) kaum einseitige Liberalisierungen gegeben hat. Die neue Runde steht deshalb vor der Aufgabe, nicht nur - wie in der Vergangenheit - einseitige Liberalisierungen zu "ernten", sondern existierende Beschränkungen in Verhandlungen zu beseitigen. Da die Zahl der Anbieter regelmäßig begrenzt ist, könnten vertiefte GATS-Regeln überdies dazu beitragen, die transparente und nicht-diskriminierende Zuteilung von Lizenzen zu gewährleisten. Außerdem könnte es notwendig sein, die in der letzten Runde beschlossenen Regulierungsgrundsätze zu schärfen und Regeln festzulegen, die nicht nur die Rechte ausländischer Anbieter sondern auch die der Verbraucher sichern.

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Publisher Info
Paper provided by Hamburg Institute of International Economics in its series Discussion Paper Series with number 26311.

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Date of creation: 2002
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Handle: RePEc:ags:hiiedp:26311

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Keywords: International Economic Order; Trade Negotiations; Market Liberalization; Services Trade; Telecommunication Services; International Relations/Trade; F02; F13; L96;

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References listed on IDEAS
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. Olivier Boylaud & Giuseppe Nicoletti, 2000. "Regulation, Market Structure and Performance in Telecommunications," OECD Economics Department Working Papers 237, OECD, Economics Department. [Downloadable!]
  2. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509.
  3. Das, Nibedita, 2000. "Technology, efficiency and sustainability of competition in the Indian telecommunications sector," Information Economics and Policy, Elsevier, vol. 12(2), pages 133-154, June. [Downloadable!] (restricted)
  4. Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2001. "Trade in international maritime services : how much does policy matter?," Policy Research Working Paper Series 2522, The World Bank. [Downloadable!]
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  1. Mattoo, Aaditya & Rathindran, Randeep & Subramanian, Arvind, 2001. "Measuring services trade liberalization and its impact on economic growth : an illustration," Policy Research Working Paper Series 2655, The World Bank. [Downloadable!]
  2. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2002. "An assessment of telecommunications reform in developing countries," Policy Research Working Paper Series 2909, The World Bank. [Downloadable!]
    Other versions:
  3. Pennings,Jacqueline & Kranenburg,Hans,van & Hagedoorn,John, 2005. "Past, Present and Future of the Telecommunications Industry," Research Memoranda 015, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  4. Easterly, William & Irwin, Timothy & Serven, Luis, 2007. "Walking up the down escalator : public investment and fiscal stability," Policy Research Working Paper Series 4158, The World Bank. [Downloadable!]
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  5. Estache, Antonio & Goicoechea, Ana & Trujillo, Lourdes, 2006. "Utilities reforms and corruption in developing countries," Policy Research Working Paper Series 4081, The World Bank. [Downloadable!]
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  6. Estache, Antonio & Goicoechea, Ana & Manacorda, Marco, 2006. "Telecommunications performance, reforms, and governance," Policy Research Working Paper Series 3822, The World Bank. [Downloadable!]
  7. Yan Li, 2008. "Econometric Evidence on the Impacts of Privatization, New Entry, and Independent Industry Regulator on Mobile Network Penetration and Expansion," Working Papers 08-35, Centre for Competition Policy, University of East Anglia. [Downloadable!]
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