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Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract

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  • Knieps, Günter
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    Abstract

    The increasing complexity of EU regulation is resulting in a tangle of contradictory decisions and statements, involving also new markets, such as interactive cable television, Internet etc. Whereas in the past sector-specific regulation has been applied in a discretionary manner in order to correct the rules of the market game, the really challenging task for the future seems to be the development and implementation of statu- tory constraints for the regulatory authorities in order to guarantee a predictable regulation of market power. For this purpose the design and implementation of a disaggre- gated regulatory contract on the statutory level (EU Directives and national law) is derived, which should be an essential principle in the EU Review 2006. Its basic components consist of limiting regulation to monopolistic bottlenecks, exploiting the phasingout potentials, and a disaggregated application of regulatory instruments. In con- trast, the problem of opportunistic regulatory behaviour with respect to irreversible investments can be solved by the application of the already existing statutory constraint of the Framework Directive guaranteeing financial viability. --

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    Bibliographic Info

    Paper provided by University of Freiburg, Institute for Transport Economics and Regional Policy in its series Discussion Papers with number 109 [rev.].

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    Date of creation: 2005
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    Handle: RePEc:zbw:aluivr:109r

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    References

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    1. Valletti, Tommaso M., 0. "The theory of access pricing and its linkage with investment incentives," Telecommunications Policy, Elsevier, vol. 27(10-11), pages 659-675, November.
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    Citations

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    Cited by:
    1. Knieps, Günter & Weiß, Hans-Jörg, 2007. "Reduction of regulatory risk: a network economic approach," Discussion Papers 117, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: the fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Birke, Franziska, 2007. "Universaldienstregulierung in der Telekommunikation heute: Herausforderungen, Chancen und Risiken ; ein historischer Ansatz," Discussion Papers 114, University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Knieps, Günther, 2010. "Regulatory reforms of European network industries and the courts," Discussion Papers 129 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of Internet traffic quality regulation," Discussion Papers 136, University of Freiburg, Institute for Transport Economics and Regional Policy.
    6. Knieps, Günter & Weiß, Hans-Jörg, 2008. "Regulatory agencies and regulatory risk," Discussion Papers 118 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Knieps, Günter, 2008. "The net neutrality debate and the German communications and competition law," Discussion Papers 120, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    10. Knieps, Günter & Zenhäusern, Patrick, 2009. "The reform of the European regulatory framework for electronic communications: The unexploited phasing-out potentials," Discussion Papers 128, University of Freiburg, Institute for Transport Economics and Regional Policy.
    11. Knieps, Günter, 2010. "The three criteria test, the essential facilities doctrine and the theory of monopolistic bottlenecks," Discussion Papers 132, University of Freiburg, Institute for Transport Economics and Regional Policy.
    12. Knieps, Günter & Zenhäusern, Patrick, 2008. "The fallacies of network neutrality regulation," Discussion Papers 115 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.

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