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e-Communications: Investment and the Regulatory Framework

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  • Jones, Siôn
  • Jones, Pau
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    Abstract

    The EU regulatory framework for e-communications was adopted by the European Parliament and the Council in 2002, and became applicable from 2003. It has three primary objectives: (1) to promote competition; (2) to develop the single market; and (3) to promote citizens' rights. The European Commission's DG Information Society commissioned London Economics to estimate the level of e-communications investment in the EU and to examine its main drivers as part of a contributio to the Commission's 2006 review of the e-communications framework. This paper outlines some of the findings of that study. The paper provides a description of the process of collecting data on investment in physical infrastructure in the e-communciations sector by country and by sub-sector. It also presents the collected data, showing a decline in overall investment between 2001 and 2003 and a subsequent upturn in 2004. An econometric analysis of the drivers of investment over the period is undertaken, which suggests that better performing regulatory regimes, as measured by an OECD regulatory index, can contribute to higher levels of investment in the sector.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3568.

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    Date of creation: Dec 2006
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    Handle: RePEc:pra:mprapa:3568

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    Keywords: e-communications; investment; regulation;

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    1. Wallsten, Scott, 2003. "Privatizing Monopolies in Developing Countries: The Real Effects of Exclusivity Periods in Telecommunications," Working paper 284, Regulation2point0.
    2. Peter Sutherland, 2003. "The Outlook for World Trade," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 4(3), pages 27-34, July.
    3. Dale W. Jorgenson, 2007. "Information Technology and the G7 Economies," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 325-350 National Bureau of Economic Research, Inc.
    4. Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    5. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
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