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Competition in Telecommunications and Internet Services: Problems with Asymmetric Regulations

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  • Paul J.J. Welfens

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

Abstract

With the digital convergence of internet services markets and telecommunications markets, the issue of a common, consistent regulation has become more important. While Google or Facebook can exploit knowledge about the content of "data mails" or SMS, data protection rules for telecommunication operators are different - they cannot use info about "structural content" and are thus unable to generate high revenues from advertising that is based on knowledge about structural content. Internet service providers thus can cross-subsidize digital communication services and thereby gain market shares - based on cross-subsidization - in traditional telecommunication markets. Thus there is a fundamental inconsistency of regulations for internet service providers and telecommunication operators which should be remedied by new global rules for the emerging global communications market. The EU and the US, as well as other countries, plus the ITU should launch a joint initiative in order to create a global level playing field.

Suggested Citation

  • Paul J.J. Welfens, 2014. "Competition in Telecommunications and Internet Services: Problems with Asymmetric Regulations," EIIW Discussion paper disbei205, Universitätsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:eiiwdp:disbei205
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    References listed on IDEAS

    as
    1. Michael Vogelsang, 2010. "Digitalization in Open Economies," Contributions to Economics, Springer, number 978-3-7908-2392-9.
    2. Paul Welfens, 2009. "Transatlantische Bankenkrise: Dynamik und neue Reformoptionen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 89(10), pages 684-690, October.
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    4. Paul J. J. Welfens & Mathias Weske (ed.), 2007. "Digital Economic Dynamics," Springer Books, Springer, number 978-3-540-36030-8, December.
    5. Justus Haucap & Ulrich Heimeshoff, 2014. "Google, Facebook, Amazon, eBay: Is the Internet driving competition or market monopolization?," International Economics and Economic Policy, Springer, vol. 11(1), pages 49-61, February.
    6. Paul Welfens & Jens Perret, 2014. "Information & communication technology and true real GDP: economic analysis and findings for selected countries," International Economics and Economic Policy, Springer, vol. 11(1), pages 5-27, February.
    7. Edward Graham & Nina Oding & Paul J.J. Welfens (ed.), 2005. "Internationalization and Economic Policy Reforms in Transition Countries," Springer Books, Springer, number 978-3-540-29047-6, December.
    8. Paul J. J. Welfens & Cillian Ryan & Suthiphand Chirathivat & Franz Knipping (ed.), 2009. "EU - Asean," Springer Books, Springer, number 978-3-540-87389-1, December.
    9. Yoon, Chang-Ho & Song, Young-Woong & Jun, Byoung Heon, 2005. "Efficient capacity pricing of the internet services," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 46(2), pages 149-158, December.
    10. Ocde, 2005. "Travaux réglementaires internationaux," Bulletin de droit nucléaire, Éditions OCDE, vol. 2005(1), pages 139-145.
    11. Paul J.J. Welfens & Anna Wziątek-Kubiak (ed.), 2005. "Structural Change and Exchange Rate Dynamics," Springer Books, Springer, number 978-3-540-28526-7, December.
    12. Evgeniya Yushkova, 2014. "Impact of ICT on trade in different technology groups: analysis and implications," International Economics and Economic Policy, Springer, vol. 11(1), pages 165-177, February.
    13. Oecd, 2006. "International Regulatory Activities," Nuclear Law Bulletin, OECD Publishing, vol. 2005(2), pages 95-98.
    14. Paul J.J. Welfens & John T. Addison (ed.), 2009. "Innovation, Employment and Growth Policy Issues in the EU and the US," Springer Books, Springer, number 978-3-642-00631-9, December.
    15. Andre Jungmittag & Paul Welfens, 2014. "Telecommunications dynamics, output and employment," International Economics and Economic Policy, Springer, vol. 11(1), pages 179-195, February.
    16. Paul J. J. Welfens, 2008. "Digital Integration, Growth and Rational Regulation," Springer Books, Springer, number 978-3-540-74595-2, December.
    17. Paul J.J. Welfens & Franz Knipping & Suthiphand Chirathivat & Cillian Ryan (ed.), 2006. "Integration in Asia and Europe," Springer Books, Springer, number 978-3-540-28730-8, December.
    18. ., 2005. "Internationalization of the Business Firm," Chapters, in: Managing the Embedded Multinational, chapter 5, Edward Elgar Publishing.
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    20. Harry G. Broadman & Tiiu Paas & Paul J.J. Welfens (ed.), 2006. "Economic Liberalization and Integration Policy," Springer Books, Springer, number 978-3-540-31183-6, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Internet services; Telecommunication; Regulation; Digital global markets;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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