Cost Characteristics of Telecom Networks and Their Implications for Market Structures

摘要

One of the main reasons to undertake sector specific regulation of telecommunication markets has been the unique characteristics of cost and demand structures within the telecom sector. This paper examines some general characteristics of costs for telecom services, and on this background discusses how these affect possibilities for creating competitive telecom service markets. Government policy and regulatory authorities in almost every country aim to introduce more competition into their telecom industries. The question is how more competition can be realistically obtained that is likely to bring beneficial results. A fully liberalised market will not necessarily by itself lenad to more competition. This depends very much on supply and demand factors that shape market conditions. This paper examines these conditions and their potential impact on the competition that is likely to develop.