The economics of mobile telephony in east and central Europe : The case of the Czech Republic
Telecommunications requires modernization and expansion in eastern and central Europe. The shortage and poor quality of fixed networks elevates the role to be played by mobile telephony. This article examines how mobile telecommunications have developed in the Czech Republic under a high tariff regime. It is proposed that the structure of the industry be reformed to promote competition, and recommended that a price cap be imposed and new entry permitted. Following entry, price regulation should be maintained to prevent any predatory pricing by the incumbent operator, but once a new entrant has established itself regulation could be relaxed or completely removed.
Volume (Year): 17 (1993)
Issue (Month): 5 (July)
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