Edited by Anastassios Gentzoglanis and Anders Henten
Chapter 5: The Measure and Regulation of Competition in Telecommunications Markets
1 Marcel Boyer INTRODUCTION 5.1 Telecommunications and more generally information and communication technologies (ICTs) constitute the backbone of our societies. Nothing is more important for the well-being, present and future, of modern societies than getting an efficient web of telecommunications chains and networks. Such a web is essential for social cohesion, productivity gains, innovation and commercialization, and for reaching the highest level of humanist economic growth. The development of a telecommunications web is significantly influenced by the regulatory framework put in place to oversee the evolution of this web towards a competitive system through policies aimed to protect efficient newcomers from predatory incumbents and to protect the public against the capacity of large firms to exercise market power. If and when the level of competition is deemed sufficient, specific economic regulation is expected to disappear in favour of general competition or antitrust policy while technical, architectural or design regulation and coordination will subsist. When is the level of competition in a national telecommunications industry sufficient? When it is not, then when will it be: that is, what value of which indicators will tell us that its time has come? The answers to those questions are vital for any society since too much economic regulation for too long as well as too little economic regulation for too short a time generate important social costs in terms of consumer welfare, productivity, innovation and growth. The specific objectives of this chapter are, first, to develop a methodological framework, which will allow a proper...
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