Telecom Prices, Regulatory Reforms, Consumers’ Satisfaction: Evidence for 15 EU Countries

26 Pages Posted: 6 Feb 2012

See all articles by Emanuele Bacchiocchi

Emanuele Bacchiocchi

Università degli Studi di Milano

Massimo Florio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM)

Marco Gambaro

Università degli Studi di Milano - DEPA

Date Written: May 5, 2008

Abstract

We study the impact on consumers of privatization and liberalization in the telecommunication sector for 15 EU Countries. Policy reforms are summarized by the OECD regulatory indicators (REGREF), that consider the extent of privatization, vertical disintegration, and market entry. After controlling for other country variables, we first test the impact of ownership and regulatory changes on productivity and consumer prices. In a second step, we consider the Eurobarometer data on consumers’ satisfaction about quality and prices of the telecommunication service. The analysis confirms the importance of market regulation in reducing prices and increasing productivity performances, but minimize the role played by privatization per se. The latter and liberalization of the telecommunication market play a role in explaining the consumers’ satisfaction about prices and quality of the service, but country features are more important. Overall, our findings offer only mixed evidence, and somehow contradict, the hypothesis of welfare dominance across the EU of a unique reform paradigm in the telecom industry.

Keywords: telecom industry liberalization, privatization, impact on European consumers

JEL Classification: L32,L33,L96

Suggested Citation

Bacchiocchi, Emanuele and Florio, Massimo and Gambaro, Marco, Telecom Prices, Regulatory Reforms, Consumers’ Satisfaction: Evidence for 15 EU Countries (May 5, 2008). TPRC 2009, Available at SSRN: https://ssrn.com/abstract=1999827

Emanuele Bacchiocchi (Contact Author)

Università degli Studi di Milano ( email )

Milan, 20122
Italy

Massimo Florio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM) ( email )

Via Conservatorio 7
I-20122 Milano, 20122
Italy
+39 02 50321510 (Phone)
+39 02 50321505 (Fax)

HOME PAGE: http://www.demm.unimi.it/ecm/home

Marco Gambaro

Università degli Studi di Milano - DEPA ( email )

Via Conservatorio, 7
I-20122 Milano
Italy
+39 02 5032 1501 (Phone)
+39 02 5032 1505 (Fax)

HOME PAGE: http://www.economia.unimi.it

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