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Regulation of network industries: between flexibility and stability

Author

Listed:
  • Alexandre Ditzel Faraco

    (doutor em direito pela USP e advogado)

  • Diogo R. Coutinho

    (professor doutor da Faculdade de Direito da USP e pesquisador do Núcleo Direito e Democracia do CEBRAP)

Abstract

This paper explores the problems of an unstable regulatory regime in network industries and addresses the tension between the necessary flexibility in the long-term regulatory commitment and the need for institutional stability. A draft statute that substantively changes the initial terms under which fixed telecommunications services have been transferred to private companies - currently under discussion in the Brazilian Congress - is presented as an example of that tension. Some alternative proposals to tackle with universal service challenges - the underlying problem behind the mentioned draft statute - are presented in the end. JEL Classification: L5, L9, K2, K4.

Suggested Citation

  • Alexandre Ditzel Faraco & Diogo R. Coutinho, 2007. "Regulation of network industries: between flexibility and stability," Brazilian Journal of Political Economy, Center of Political Economy, vol. 27(2), pages 261-280, March.
    • Handle: RePEc:ekm:repojs:v:27:y:2007:i:2:id:95136
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    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • K2 - Law and Economics - - Regulation and Business Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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