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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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    File URL: http://eiiw.eu/fileadmin/eiiw/Daten/Publikationen/Gelbe_Reihe/disbei205.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Andre Jungmittag & Paul Welfens, 2014. "Telecommunications dynamics, output and employment," International Economics and Economic Policy, Springer, vol. 11(1), pages 179-195, February.
    3. 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.
    4. Ocde, 2005. "Travaux réglementaires internationaux," Bulletin de droit nucléaire, Éditions OCDE, vol. 2005(1), pages 139-145.
    5. Andre Jungmittag & Paul Welfens, 2009. "Liberalization of EU telecommunications and trade: theory, gravity equation analysis and policy implications," International Economics and Economic Policy, Springer, vol. 6(1), pages 23-39, June.
    6. 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.
    7. Paul Welfens, 2009. "Transatlantische Bankenkrise: Dynamik und neue Reformoptionen," Wirtschaftsdienst, Springer;German National Library of Economics, vol. 89(10), pages 684-690, October.
    8. ., 2005. "Internationalization of the Business Firm," Chapters,in: Managing the Embedded Multinational, chapter 5 Edward Elgar Publishing.
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    More about this item

    Keywords

    Internet services; Telecommunication; Regulation; Digital global markets;

    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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