Antitrust vs. Sector Specific Regulation in Telecom: The Impact on Competitiveness

Abstract

This note analyses the competitiveness of different segments of the telecommunications markets in the five countries (United States, United Kingdom, Australia, New Zealand, and Chile) shows that those countries that have relied on a proper balance between antitrust and sector-specific regulation have, on the whole, more competitive telecom markets. The market for fixed local services is, however, a separate case. There, the balance between antitrust and sector-specific regulation matters much less than the fact that prices have in many instances been set below costs with the result that the potential for competition in the provision of fixed local services does not exist.

Keywords: antitrust, competition law, telecommunications, prices, competitiveness, United States, United Kingdom, Australia, New Zealand, Chile

JEL Classification: L12, L22, L41, L43, L50, L96, D42, K21