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Network liberalization and developing countries: The case of Chile

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  • Stehmann, Oliver

Abstract

The opening of Chile's telecommunications infrastructure to private and foreign investment has led to a rapid modernization of the network and to improvements in universal service. In 1994 all remaining regulatory entry barriers to the local, long-distance and international markets were removed for both service providers and network operators. Full digitization of switches and specific characteristics of the Chilean network structure have led to fierce price competition in the market. In spite of the small market size the strategic behaviour of the main market players is unlikely to succeed. As a result the market is likely to remain highly competitive. While the liberalization process has so far spurred the universal service goal, further improvements will mainly depend on whether entry takes place in the local market.

Suggested Citation

  • Stehmann, Oliver, 1995. "Network liberalization and developing countries: The case of Chile," Telecommunications Policy, Elsevier, vol. 19(9), pages 667-684, December.
  • Handle: RePEc:eee:telpol:v:19:y:1995:i:9:p:667-684
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    References listed on IDEAS

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    1. Greenstein, Shane M & Spiller, Pablo T, 1995. "Modern Telecommunications Infrastructure and Economic Activity: An Empirical Investigation," Industrial and Corporate Change, Oxford University Press, vol. 4(4), pages 647-665.
    2. Cave, Martin & Donnelly, Mark P., 1996. "The pricing of international telecommunications services by monopoly operators," Information Economics and Policy, Elsevier, vol. 8(2), pages 107-123, June.
    3. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1991. "Telecommunications infrastructure and economic growth : An analysis of causality," Telecommunications Policy, Elsevier, pages 529-535.
    4. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, December.
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    Cited by:

    1. Fernandes, Ana M. & Paunov, Caroline, 2012. "Foreign direct investment in services and manufacturing productivity: Evidence for Chile," Journal of Development Economics, Elsevier, vol. 97(2), pages 305-321.
    2. Dieter Elixmann, 1996. "Internationalization in Telecommunications Services Markets: Some Preliminary Findings," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 65(4), pages 446-458.
    3. Fernandes, Ana M. & Paunov, Caroline, 2008. "Foreign direct investment in services and manufacturing productivity growth: evidence for Chile," Policy Research Working Paper Series 4730, The World Bank.

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