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The Frontier of Telecommunications Deregulation: Small Countries Leading the Pack

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  • Pablo T. Spiller
  • Carlo G. Cardilli

Abstract

Interconnection, equal access, unbundling, and industry structure are four key determinants of facilities-based competition in telecommunications. Using these building blocks, this paper analyzes the differences in telecommunications regulatory regimes in Australia, Chile, Guatemala, and New Zealand, assessing the effect on competition and consumer welfare. Some regulation is necessary as incumbents can prolong their market power after demonopolization by exploiting positive externalities inherent to telecommunications networks. The authors emphasize the superiority of market mechanisms over traditional regulatory processes to achieve efficient transactions among operators. Such market mechanisms need clear rules and credible enforcement.

Suggested Citation

  • Pablo T. Spiller & Carlo G. Cardilli, 1997. "The Frontier of Telecommunications Deregulation: Small Countries Leading the Pack," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 127-138, Fall.
  • Handle: RePEc:aea:jecper:v:11:y:1997:i:4:p:127-38
    Note: DOI: 10.1257/jep.11.4.127
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.11.4.127
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    References listed on IDEAS

    as
    1. de Boer, David Boles & Evans, Lewis, 1996. "The Economic Efficiency of Telecommunications in a Deregulated Market: The Case of New Zealand," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 24-35, March.
    2. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    3. Economides, Nicholas, 1998. "The incentive for non-price discrimination by an input monopolist," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 271-284, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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