The Measure and Regulation of Competition in Telecommunications Markets

CIRANO Working Paper No. 2005s-35

41 Pages Posted: 2 Jan 2006

See all articles by Marcel Boyer

Marcel Boyer

CIRANO, Université de Monréal

Date Written: November 2005

Abstract

I claim that the urgently needed telecommunications regulatory reform must rest on three specific principles or policies for enhancing economic efficiency. First, the pursuit of a dynamic regulatory approach based on implementing proper competition processes and information systems rather than based on the traditional measurement of market shares and concentration ratios, which, in a changing and volatile industry, typically become obsolete at the time they are completed. Second, the promotion of competition through the determination of proper incentives for the deployment of dynamically efficient network inter-access pricing rules and conditions and for the implementation of efficient investment programmes to guarantee the integrity of the telecommunications networks in Canada. Third, the design of non predatory pricing rules (price floors) through full cost sharing capable of fostering the emergence of a more competitive telecommunications industry, even if such non predatory pricing rules is likely to imply some loss of static efficiency.

Keywords: Competition, Regulation, Telecommunications, Full cost sharing

JEL Classification: L13, L51, L96, C71

Suggested Citation

Boyer, Marcel, The Measure and Regulation of Competition in Telecommunications Markets (November 2005). CIRANO Working Paper No. 2005s-35, Available at SSRN: https://ssrn.com/abstract=873350 or http://dx.doi.org/10.2139/ssrn.873350

Marcel Boyer (Contact Author)

CIRANO, Université de Monréal ( email )

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Montreal, Quebec H3A 2M8
Canada
514 985-4000 (Phone)
514-985-4039 (Fax)

HOME PAGE: http://www.cirano.qc.ca/~boyerm

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