Telecommunications Policy: Alliances, Interconnection, and Universal Service
24 Pages Posted: 8 Feb 2010
Date Written: 1998
Any survey of such a dynamic industry as telecommunications is bound to be idiosyncratic - reflecting the particular tastes and interests of the reviewers. We do not apologize for selectivity, but wish to acknowledge that another team could review developments in telecommunications policy and present a very different set of observations. We focus on global alliances, interconnection, and universal service. These three issues illustrate how basic industry conditions (mediated by regulatory regimes) lead to market structures. Market structure, particularly the number of firms and entry conditions, influences corporate behavior. The resulting market performance is a key factor determining public policy initiatives. Legal changes, such as privatization or deregulation, create new constraints and/or open up commercial opportunities. Since policy is endogenous, identifying the impacts of a particular policy on performance is difficult in practice.
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