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Regulation and innovation in the telecommunications industry
Institution:1. France Télécom, Direction des Relations Extérieures, 6 place d’Alleray, 75505 Paris Cedex 15, France;2. GREMAQ, UT-1, Université des Sciences Sociales, Manufacture des Tabacs, GREMAQ – Bureau MF003, 21, Allée de Brienne, 31000 – Toulouse, France;1. Centre for European Economic Research (ZEW), Mannheim, Germany;2. Vienna University of Economics and Business (WU), Research Institute for Regulatory Economics, Vienna, Austria;1. IT & Telecom Solutions Research Group, Center for Advanced Studies in Telecommunication (CAST), COMSATS Institute of Information Technology, Islamabad, Pakistan;2. Department of Electrical Engineering, COMSATS Institute of Information Technology, Islamabad, Pakistan
Abstract:This paper aims to introduce issues that relate regulation and innovation in the telecommunications industry. We try to address the following question: which types of regulatory schemes are likely to promote innovation in a fast-growing telecommunications industry? Section 2 analyses ex ante control by sector-specific regulation and ex post control by competition policies. Section 3 deals with the importance of compatibility hence regulation of standards in the telecommunications industry. Section 4 discusses the major issues pertaining to the relation between innovation and pricing on the one hand, and innovation and unbundling on the other.
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