From national monopoly to Multinational Corporation: how regulation shaped the road towards telecommunications internationalization
One of the consequences of major regulatory reform of the telecommunications sector from the end of the 1970s – particularly, privatization, liberalization and deregulation – was the establishment of a new business environment which permitted former national telecommunications monopolies to expand internationally. From the 1990s, a number of these firms, particularly those based in Europe, joined the rankings of the world’s leading Multinational Corporations. Their internationalization was uneven, however: while some firms internationalised strongly, others went abroad much slower. This article explores how the regulatory framework within which telecommunications incumbents evolved over the long-term helped shape their subsequent, uneven, paths to internationalization. Two cases representing ´maximum variation´ are selected: Telefónica, whose early and unrelenting expansion transformed it into one of the world’s most international of Multinational Corporations, and BT, whose international ventures failed and, with decline domestic shares, forced the firm to partial de-internationalization, becoming the least international of the large European incumbents. Long-term ownership, access to capital, management style and exposure to liberalization strongly influenced firms’ approaches to internationalization.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bel, Germà & Trillas, Francesc, 2005.
"Privatization, corporate control and regulatory reform: the case of Telefonica,"
Elsevier, vol. 29(1), pages 25-51, February.
- Germa Bel & Francesc Trillas, 2004. "Privatization, Corporate Control and Regulatory Reform: The case of Telefonica," Finance 0409053, EconWPA.
- Massimo Florio, 2003. "Does privatisation matter? The long-term performance of British Telecom over 40 years," Fiscal Studies, Institute for Fiscal Studies, vol. 24(2), pages 197-234, June.
- Antonelli, Cristiano, 1995. "Localized Technological Change in the Network of Networks: The Interaction between Regulation and the Evolution of Technology in Telecommunications," Industrial and Corporate Change, Oxford University Press, vol. 4(4), pages 737-754.
- Goldstein Andrea E., 2000. "Corporate Governance and Regulation in Privatized Utilities: Telecommunications in Four European Countries," Business and Politics, De Gruyter, vol. 2(2), pages 1-36, August.
- Judith Clifton & Daniel Díaz-Fuentes, 2010. "Evaluating Eu Policies On Public Services: A Citizens' Perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(2), pages 281-311, 06.
- Clifton, Judith & Díaz-Fuentes, Daniel, 2008. "Evaluating EU policies on public services: a citizens´ perspective," MPRA Paper 9420, University Library of Munich, Germany.
- Svein Ulset, 2008. "The rise and fall of global network alliances," Industrial and Corporate Change, Oxford University Press, vol. 17(2), pages 267-300, April.
- Haar, Laura N. & Jones, Trefor, 2008. "Misreading liberalisation and privatisation: The case of the US energy utilities in Europe," Energy Policy, Elsevier, vol. 36(7), pages 2610-2619, July.
- Chari, Anusha & Gupta, Nandini, 2008. "Incumbents and protectionism: The political economy of foreign entry liberalization," Journal of Financial Economics, Elsevier, vol. 88(3), pages 633-656, June.
- Goldstein, Andrea E., 2000. "Corporate Governance and Regulation in Privatized Utilities: Telecommunications in Four European Countries," Business and Politics, Cambridge University Press, vol. 2(02), pages 189-223, August. Full references (including those not matched with items on IDEAS)