Leveraging the EU regulatory framework to improve a layered policy model for US telecommunications markets

What is the best way to overhaul the current telecommunications legislative framework in the United States? This is an ongoing debate among telecom policy analysts and many others affected by the legacy of regulatory compromises that govern US telecommunications (and related information and media) industry sectors. This paper compares a Layered Model for US telecommunications policy with the regulatory framework adopted by the European Union. Both approaches focus on service characteristics rather than underlying technological traits.¹ It becomes clear that the Layered Model could be adopted to move away from sector-specific regulation, and could successfully use conventional market analysis criteria.     

Wireline deregulation: The Canadian experience

Changes in the state of telephony markets paved the way for significant regulatory and legislative reforms in the telecommunications sector in the 1990s. In Canada, the 1993 Telecommunications Act was enacted to promote the emergence of competitors in a market that had until then been dominated by regional monopolies. This paper examines the Canadian telecommunications regulatory framework and analyzes the regulatory privileges given to new entrants at the expense of former telecommunications monopolies. Such regulations, which were meant to induce competition, ended up hurting consumers and distorting the market process. This paper also shows how the Canadian government recently eliminated many of those regulations by seizing control of the policy agenda from the telecommunications regulator.     

Tradable universal service obligations

This paper proposes a novel policy to motivate private-sector operators of basic infrastructure to expand infrastructure into previously unserved regions. It is particularly useful when resources are transferred to the private sector, as occurs during the privatisation of a state-owned telecommunications carrier, the introduction of competition, the release of spectrum, or the allocation of cash subsidies for this purpose. Firms receive tradable universal service obligations in the form of milestones that must be met, and commitments to meet specific deadlines. By exchanging its commitments, a firm can increase or decrease the rate at which it must expand infrastructure. By exchanging milestones, a firm can change where it must expand infrastructure. Making milestones and commitments independent and fully tradable allows each firm to develop the most cost effective business strategy possible, and to adapt that strategy as technology and demand evolve over time. The exchange of milestones and commitments does not diminish the obligations that must be met by industry as a whole, insuring the timely expansion of infrastructure. This paper focuses on telecommunications, but the approach is also applicable to other forms of infrastructure, such as electric power.     

The evolution of the telecommunications policy agenda: Forty years of articles in Telecommunications Policy

This paper investigates the evolution of the telecommunications policy agenda by means of text mining forty years –from 1976 to 2016– of papers in the journal Telecommunications Policy. Text mining techniques help identify the key topics, the dominant combinations of concepts and the main areas of research within this multidisciplinary –technical, economic, social, policy– discipline. In addition they depict an evolution of the policy agenda more nuanced than the conventional public service, pre-competition and post-liberalisation stages typical of telecommunications. Also, in combination with bibliometric information, the results display the relationships between areas of research and methodologies, countries and authors’ background, all together providing a deeper understanding of the past, present and future avenues for research in telecommunications policy.     

Influencing public policymaking: Firm‐, industry‐, and country‐level determinants

This paper examines the determinants of firms' public policymaking influence. Using a novel and global database that measures firms' perceived influence over the executive and legislative branches of government, a systematic analysis of the firm‐, industry‐, and country‐level determinants, and interrelationships among these determinants of firms' public policymaking influence is undertaken. The empirical results indicate that large firms perceive they have more public policymaking influence than small firms, but these differences are conditioned by the number of industry competitors and the structure of the country political institution environment. Nonmarket strategy implications that follow from this refined understanding are developed and discussed. Copyright © 2014 John Wiley & Sons, Ltd.     

Planning and control in the U.S. Federal Government: A critical analysis of PPB,MBO and ZBB

PPB, MBO and ZBB have each been implemented in the U.S. Federal government, ostensibly as means for facilitating planning and control in agencies and programmes. The purpose of this paper is to evaluate the use of these techniques as management tools, political strategies and ritualistic symbols using concepts discussed in the organizational theory, planning and control, and policy science literatures. Two basic conclusions emerge from the evaluation. First, PPB, MBO and ZBB may inappropriately encourage the use of an analytical, computational decision strategy, and a cost/benefit method of performance assessment at a level within the organization and in environmental settings which call for an inspirational decision strategy and social test performance assessment. As a result, environmental variety may not be matched by an organizational response which is equally variable. Secondly, PPB, MBO and ZBB may have been used more as political strategies and ritualistic symbols for controlling and directing controversy by both the executive and legislative branches of the U.S. Federal government and less as management tools for improving decision making within the U.S. Federal bureaucracy. These management tools give the appearance of rationality in the formulation of public policy which is consistent with man's need for confidence building and conflict avoidance in running the affairs of state.     

Telecommunications/ transportation substitution and energy conservation: Part 1

The substitution of telecommunications for transportation is held to have major potential for increasing energy conservation within the USA, other developed nations, and even developing nations. This article is the first of a two-part re-examination of the substitution hypothesis based on research and experience of the past decade. This part examines the theoretical potential of telecommunications-transportation substitution for energy conservation, and reviews recent research both on public attitudes towards substitution of telecommunications for travel and on the operational experience with substitution experiments in organizations. Part 2, which appears in the June 1982 issue of Telecommunications Policy, examines the major factors which influence whether individuals and institutions will in fact choose telecommunications over travel, and then discusses government policy which could facilitate telecommunications substitution for travel.     

Telecommunications in Central and Eastern Europe: Similarities,peculiarities and trends of change in the countries of transition

The paper overviews the current state and modernization strategies of telecommunications in Central and Eastern European countries comprising Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Romania and Bulgaria. In the mid-1990s telephone density is relatively low; advanced telecommunications services are scarcely established. However, the significance of telecommunications is recognized, and therefore intensive expansion and modernization plans have been formed and a change of the legislative environment is in process. The main intention of the paper is to summarize the general features and trends in Central and Eastern European telecommunications and to derive from the experiences a possible way to harmonize the responsibilities for basic telecommunication services and the expectations for business-oriented operation.     

Telecommunications models: Planning for regional development in LDCs

The aim of telecommunications policy in the less developed countries should be to contribute to general development goals, but the links between economic development and telecommunications are not clearly understood. The authors suggest a dual approach to this problem. First, this involves the construction of models of demand based on the interaction between regional economic development and telecommunications use. Second, corporate models are required to explore the feasibility of particular supply strategies. The progress of practical work in these areas is described and includes the results of some specific research in Kenya.     

Telecommunications reform and efficiency performance: Do good institutions matter?

Until recently, most studies investigating telecommunication reforms performance have failed to incorporate the importance of institutions into the empirical analysis. This study highlights the importance of institutional governance on telecommunications efficiency and provides empirical results for the impact of institutions on reform outcomes. It provides significant evidence that the institutional environment in which reform progress takes place is an important determinant for successful reform. This study uses the stochastic distance function approach to capture the role of institutions in explaining efficiency differences across 70 countries. The empirical analysis reveals that policy stability in the form of substantive checks and balances on executive power is the most important aspect for successful reform. Independently, legal integrity improves telecommunications efficiency through privatization, while greater freedom from corruption influences the effectiveness of a regulatory body.     

Regulatory inertia versus ICT dynamics: The case of product innovations

This article conjectures that the legacy industry-specific regulation that has governed the telecommunications sector for a long time is in basic conflict with the dynamics and product innovations that characterize the modern information and communications technology (ICT) sector. Reasons for the failure of legacy regulation to promote product innovations are explained and proposals for alternatives, such as deregulation and regulatory reform are discussed. Both regulation and competition policy are more difficult for ICT than for other sectors. Therefore both, regulation and competition policy may need reforms in order to deal with new problems. The most drastic and most realistic alternative to legacy-type regulation remains deregulation and a move to competition policy. Symmetric regulation, smart regulation, quasi-Coasean approaches and subsidies all have some limited applicability to specific situations, but are all associated with complications that have to be resolved, while competition policy is a comprehensive alternative. Last-mile access and gatekeeper access are analyzed as two main areas of legacy regulation, which are in danger of being exported to other ICT areas. Such exports may negatively affect the dynamics of the ICT industry. Rather than being exported, legacy regulations should be reduced in order to enhance product innovations.     

Mexico's international telecommunications policy: Origins,the WTO dispute,and future challenges

Mexico is by far Latin America's largest trader and the country with the most free trade agreements. Notwithstanding the success of its trade policy, the liberalization of its telecommunications sector was limited and generated a dispute at the WTO. This article offers an overview of Mexico's trade policy, with special emphasis on its policy regarding trade in telecommunications services and the 2002–2004 Mexico–United States dispute over telecommunications at the WTO. The dispute is the first one over trade in telecommunications services at the WTO and has generated interest among many developed and developing countries.     

Symbiotic production: The case of telecommunication pricing

In this paper we analyze a generalization of vertical monopolies in which monopoly suppliers trade essential inputs with one another. The most obvious applications of the model, which we call symbiotic production, are to postal and telecommunications services. We show how producers can use per-unit tariffs to achieve cooperative outcomes without colluding directly over consumer prices. We then show the firms have an incentive to collude in the setting of tariffs but that suchcollusion will lower consumer prices. This assumes that the suppliers are otherwise unfettered. In contrast, if the constituent monopolies are regulated, we show that collusion enables the firms to completely undo the restraints of regulation. The model has important policy implications for the international telecommunications market.     

Telecommunications in the land of the Thunder Dragon: recent developments in Bhutan

This paper charts the development of telecommunications in Bhutan. Since the introduction of telecommunications services in 1963 Bhutan has faced many challenges as it has sought to roll out a network that covers the whole population and country. A small population, a mountainous geography, a transitional economy and a unique approach to development—Gross National Happiness—present many challenges that need to be overcome if the telecommunications industry is to develop further. Added to this is the decision of Bhutan to join the outside world through membership of the ITU, APT and WTO that has added liberalisation and privatisation to the challenges faced by Bhutan. This paper identifies two broad policy options that Bhutan could adopt—network expansion nationally or investment concentration towards urban areas. The authors conclude that due to the limited resources available to Bhutan these policies are contradictory and will take the telecommunications industry in quite different directions if adopted.     

Spatial data constraints: Implications for measuring broadband

The accurate determination of where broadband telecommunication services are available in the United States continues to be a significant challenge. Existing data regarding broadband provision, such as that provided by the Federal Communication Commission (FCC) simply designate ZIP codes with at least one high-speed Internet subscriber. As ZIP code areas vary greatly in size and shape, the lack of geographic specificity as to exactly where broadband is available, particularly within ZIP code areas, confounds communications policymaking. Further, there are a number of additional geographic nuances concerning broadband availability that also inhibit empirical examination and policy generation, including the spatial limitations of digital subscriber line services. The purpose of this paper is to briefly review the issues concerning broadband measurement in the United States and provide an empirical analysis of several spatial data constraints that must be accounted for when interpreting and constructing public telecommunications policy.     

Targeting population nutrition through municipal health and food policy: Implications of New York City’s experiences in regulatory obesity prevention

Obesity remains a major public health challenge across OECD countries and policy-makers globally require successful policy precedents. This paper analyzes New York City’s innovative experiences in regulatory approaches to nutrition. We combined a systematic documentary review and key informant interviews (n = 9) with individuals directly involved in nutrition policy development and decision-making. Thematic analysis was guided by Kingdon’s three-streams-model and the International Obesity Task Force’s evidence-based decision-making framework. Our findings indicate that decisive mayoral leadership spearheaded initial agenda-change and built executive capacity to support evidence-driven policy. Policy-makers in the executive branch recognized the dearth of evidence for concrete policy interventions, and made contributing to the evidence base an explicit goal. Their approach preferred decision-making through executive action and rules passed by the Board of Health that successfully banned trans-fats from food outlets, set institutional food standards, introduced menu labeling requirements for chain restaurants, and improved access to healthy foods for disadvantaged populations. Although the Health Department collaborated with the legislature on legal and programmatic food access measures, there was limited engagement with elected representatives and the community on regulatory obesity prevention. Our analysis suggests that this hurt the administration’s ability to successfully communicate the public health messages motivating these contentious proposals; contributing to unexpected opposition from food access and minority advocates, and fueling charges of executive overreach. Overall, NYC presents a case of expert-driven policy change, underpinned by evidence-based environmental approaches. The city’s experience demonstrates that there is scope to redefine municipal responsibilities for public health and that incremental change and contentious public discussion can impact social norms around nutrition.     

Telecommunications policy and individuals with disabilities: Issues of accessibility and social inclusion in the policy and research agenda

Information and communications technologies have become an integral part of life in an information society, affecting employment, education and many other daily activities. For individuals with disabilities, equal access to telecommunications remains a concern, as many technologies that are developed do not allow for equal access. Law and policy have made significant progress in some nations, but sizeable barriers remain to the social inclusion of individuals with disabilities in telecommunications technologies and services. This paper examines the importance of equal access to telecommunications for individuals with disabilities in both the formulation and the implementation of policy. Analyzing issues of policy and implementation, this paper discusses policy questions and potential areas of research to better understand the relationship of telecommunications policy to access for persons with disabilities.     

Telecommunications technology applications and standards : A new role for the user

Telecommunications is at a critical juncture in the development of technology, policy and industry structure. The industry is becoming increasingly global and competitive; technology is developing faster than it can be implemented; and telecommunications is becoming strategically important to user organizations. Regulatory bodies and standards organizations are struggling with these developments. Public policy that encourages both competition in the telecommunications industry as well as the organized participation of users in the development of new technology applications, technical standards and industry regulations is essential for realizing the prospective benefits of the information age.     

Models for telecommunications strategy in the LDCs

Telecommunications administrators in the less developed countries are faced with a number of complex strategic policy issues. The author argues that current planning procedures do not provide an adequate aid to decision making. A more sophisticated approach is suggested based on corporate planning models and a prototype model is described in detail. Some sample applications of this model are presented to illustrate the value of the approach to specific problems, including the areas of tariff policy and the growth rate of rural telecommunications.     

The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis

The telecommunications industry has a great ripple effect on the overall national economy. However, there is no consensus about what is the optimal regulation policy for the telecommunications industry. Regulations on the telecommunications industry are different by region (i.e. United States, European Union and Asia). A number of studies have been conducted on comparative efficiency analysis for different policies that apply stochastic frontier analysis or data envelope analysis. However, these comparative studies are inappropriate because the production functions for each region are not identical. Thus, this paper addresses meta-frontier methodology, which can reflect differences in production functions. The results indicate that the United States has the highest meta-frontier efficiency in contrast to previous research findings.