Is telecommunications regulation efficient? An international perspective

This article addresses the efficiency of regulation policy in the telecommunications sector. First, the concepts of static and dynamic efficiency are reviewed, with the main policies used into achieve these goals identified, while distinguishing effective competition from industrial policy. Indicators are proposed that enable assessment of components of sector efficiency. These indicators are used to empirically investigate the link between regulation policy and economic performance for OECD Member Countries. The investigation is based on national differences in regulation policy and efficiency indicators. The results support the notion that asymmetrical ex ante regulation alone is not necessarily efficient, and that an ex ante policy, integrating an industrial policy, could favor dynamic efficiency.     

Do low-quality products affect high-quality entry? Multiproduct firms and nonstop entry in airline markets

This paper studies the effect of product ownership and quality on nonstop entry in the airline industry. Specifically, this paper empirically examines the decision of an airline to offer high-quality nonstop service between cities given that the airline may or may not be offering lower quality one-stop service. I find that airlines that offer one-stop service through a hub are less likely to enter that same market with nonstop service than those that do not. In addition, the quality of the one-stop service is an important determinant of entry. Airlines are more likely to enter a market with nonstop service if their own or their rival's one-stop service in the market is of lower quality. Estimates suggest that the entry of a rival nonstop carrier diminishes the probability a carrier enters the market with nonstop service. However, airlines offering one-stop service respond differently to nonstop rivals. In particular, relative to other carriers, those offering one-stop service are more likely to enter markets if there are nonstop rivals, suggesting that cannibalization effects are diminished in the presence of nonstop competition.     

Can local telecommunications be self-policing?: A proposed discovery procedure

To discover whether markets for local telecommunication services can be competitively self-policing, this paper advocates a comprehensive approach to policy making as opposed to a more piecemeal approach. The problem with a piecemeal approach is that the merits of particular policies are difficult to assess without reference to the total program in which they are embedded. What seems reasonable when considered along with other complementary policies may be unreasonable if undertaken in a different context. We describe the necessary conditions for an illuminating experiment that will both insure a fair test of competition's viability and afford adequate protections to the consuming public.     

Convergence between telecommunications and other media: How should regulation adapt?

The paper examines the regulatory issues raised by technological convergence between telecommunications and other media. Market uncertainty for broadband services has gone hand in hand with both uncertainty over how to supply those services and a regulatory framework that will facilitate growth in the sector, ensure a competitive market and provide the necessary protections for consumers and the public. Development of the information market should be determined primarily by market forces. Intervention may be justified but a clear distinction needs to be drawn between regulation in the public interest and regulation to protect against market failure.     

Competition law and regulation in the Turkish telecommunications industry: Friends or foes?

The interaction between national competition authorities (NCAs) and national regulatory authorities (NRAs) plays a vital role in institutionalizing competition policy during regulatory reforms. Questions about jurisdictional authority over competition policy are far from settled     

Does bridging the Internet Access Divide contribute to enhancing countries' integration into the global trade in services markets?

This paper examines the impact of countries' distance between their Internet usage and the world' average of the Internet usage intensity on their integration into the world market of trade in commercial services. Using an unbalanced panel dataset of 175 countries over the annual period 2000–2013, the empirical analysis indicates that the narrowing of the Internet-related distance would improve countries' integration into the world trade in commercial services market. Furthermore, it helps those countries that are geographically far from the world market to compensate for the adverse effect of this geographical distance on their integration into the world market of trade in commercial services.