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Regulation, Market Structure and Performance in Telecommunications

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Author Info
Olivier Boylaud
Giuseppe Nicoletti ()

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Abstract

The paper uses an original international database on regulation, market structure and performance in the telecommunications industry to investigate the effects of entry liberalisation and privatisation on productivity, prices and quality of service in long-distance (domestic and international) and mobile cellular telephony services in 23 OECD countries over the 1991-1997 period. The data on regulation and market structure is analysed by means of factor analysis techniques in order to group countries according to their policy and market environments. Controlling for technology developments and differences in economic structure, panel data estimates show that prospective competition (as proxied by the number of years remaining to liberalisation) and effective competition (as proxied by the share of new entrants or by the number of competitors) both bring about productivity and quality improvements and reduce the prices of all the telecommunications services considered in the analysis ...


A partir d’une base de données originale sur la réglementation, la structure de marché et les performances dans l'industrie des télécommunications, ce document étudie les effets de la libéralisation, de l’ouverture des marchés et de la privatisation sur la productivité, les prix et la qualité du service pour les services de téléphonie fixe (interurbains et internationaux) et mobiles (cellulaires) pour 23 pays de l’OCDE au cours de la période 1991-1997. Les données sur la structure de marché et la réglementation sont analysées au moyen de techniques d'analyse factorielle afin de grouper les pays en fonction des politiques suivies et les caractéristiques de leurs marchés. En utilisant comme variables de contrôle les différences dans la technologie et la structure économique, les estimations réalisées sur les données de panel montrent que les anticipations de la concurrence (en utilisant comme proxy le nombre d'années restant avant la libéralisation) et la concurrence effective (en ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 237.

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Date of creation: 12 Apr 2000
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Handle: RePEc:oec:ecoaaa:237-en

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Keywords: models with panel data regulated industries and administrative law regulation and industrial policy telecommunications market structure firm strategy and market performance modèle de panel industrie réglementée et droit administratif télécommunications structure de marché stratégie d'entreprise et performance entreprise publique public enterprises

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises
L5 - Industrial Organization - - Regulation and Industrial Policy
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

Cited by:
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  1. Adriana Kugler & Giovanni Pica, 2003. "Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," Economics Working Papers 722, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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  2. Philippa Dee, 2005. "The Australia–US Free Trade Agreement: An Assessment," Trade Working Papers 611, East Asian Bureau of Economic Research. [Downloadable!]
  3. 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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  4. Estache, Antonio & Goicoechea, Ana & Manacorda, Marco, 2006. "Telecommunications performance, reforms, and governance," Policy Research Working Paper Series 3822, The World Bank. [Downloadable!]
  5. Guenter Lang, 2002. "Neue Regulierungsstrukturen fuer Kommunikationsnetze - Ueberblick und oekonomische Analyse aus der Perspektive von Mehrwertdiensten," Discussion Paper Series 214, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  6. Gual, Jordi & Trillas, Francesc, 2006. "Telecommunications policies: Measurement and determinants," IESE Research Papers D/630, IESE Business School. [Downloadable!]
  7. Jordi Gual & Francesc Trillas, 2006. "Telecommunications Policies: Measurement and Determinants," Review of Network Economics, Concept Economics, vol. 5(2), pages 249-272, June. [Downloadable!]
  8. 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!]
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  9. Tomaso Duso & Lars-Hendrik Röller, 2001. "Towards a Political Economy of Industrial Organization: Empirical Regularities from Deregulation," CIG Working Papers FS IV 01-17, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  10. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank. [Downloadable!]
  11. Tomaso Duso, 2002. "On the Politics of the Regulatory Reform: Econometric Evidence from the OECD Countries," CIG Working Papers FS IV 02-07, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  12. Matthias Lücke & Dean Spinanger, 2004. "Liberalisierung des internationalen Handels mit Dienstleistungen: Herausforderungen und Chancen für Entwicklungsländer," Kiel Working Papers 1228, Kiel Institute for the World Economy. [Downloadable!]
  13. Kugler, Adriana & Pica, Giovanni, 2003. "The Effects Of Employment Protection and Product Market Regulations on The Italian Labor Market," Discussion Paper Series In Economics And Econometrics 0310, Economics Division, School of Social Sciences, University of Southampton. [Downloadable!]
    Other versions:
  14. Alan V. Deardorff & Robert M. Stern, 2003. "Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization," Working Papers 505, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  15. Gual, Jordi & Trillas, Francesc, 2003. "Telecommunications policies: Determinants and impact," IESE Research Papers D/510, IESE Business School. [Downloadable!]
  16. Heli Koski & Tobias Kretschmer, 2002. "Entry, Standards and Competition : Firm Strategies and the Diffusion of Mobile Telephony," Discussion Papers 824, The Research Institute of the Finnish Economy. [Downloadable!]
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  17. Allan Shampine, 2006. "Handicapping Countries in the Race to Digital Switching," Review of Network Economics, Concept Economics, vol. 5(2), pages 229-248, June. [Downloadable!]
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