In the early 1990’s the main goal in telecommunication was the creating of a competitive market. In recent years the regulatory topics have shifted towards areas like pricing and service quality.
In this paper these recent trends in policies are introduced and discussed.
Table of Contents
1. Introduction
2. Competition
2.1 Local Loop unbundling
2.2 Government Ownership
2.3 Restrictions on foreign-owned companies
3. Standards
3.1 Mobile Phone market
3.1.1. Contract lengths
3.1.2. Portability of phone numbers
3.2. Broadband
3.2.1. Accessibility
3.2.2. Transmission Speed
3.3. Broadcasting
4. Price Regulation
4.1. Consumer prices
4.2. Interconnection prices
5. Conclusion
Research Objectives and Topics
This paper examines the evolution of the global telecommunications market, focusing on how rapid technological advancements and industry growth have necessitated a shift in regulatory policies from merely fostering competition to addressing complex issues like pricing, service quality, and infrastructure accessibility.
- Liberalization strategies including Local Loop Unbundling and privatization.
- Regulatory standards for mobile and broadband services, including accessibility and transmission speed.
- Dynamics of price regulation for end-consumers and network interconnection.
- Challenges of market convergence and the digital divide in developing regions.
Excerpt from the Book
2.1 Local Loop Unbundling
LLU enables market entrants to “rent” existing copper wires to provide services to the end users.
Three Different types of LLU are currently being used: Full LLU → the new entrants have complete control over the line. Line-sharing LLU → incumbent in control of the lines, but the entrants install splitters at the distribution sight and at the end users premises. Bit-Stream-Access → similar to Line-Sharing, but in this case the splitter is installed by the incumbent and the entrants can only provide services assigned by the incumbent (usually broadband internet access) and are not allowed to install additional hardware.
In order to successfully implement LLU, policies have been implemented in most countries but to different extents. Many regulators introduced policies that obliged the incumbents to grant access to the unbundled loops. Obviously the former monopolists were not eager to allow new competitors to use their networks they had built over many decades.
A second wave of policies in the LLU was pricing regulation. In the last few years many countries adopted regulations that either set specific prices for LLU charges i.e. Austria, Belgium and New Zealand or mandate cost-oriented pricing i.e. Spain. These pricing-regulations were necessary to prevent the incumbents from misusing their bargaining power by charging too high prices for the entrants.
While in many countries the percentage of local exchanges open for LLU is now at 100% i.e. England, Spain and Portugal, it is still considerably low in others, i.e. Mexico.
Summary of Chapters
1. Introduction: Outlines the steady growth of the global telecommunications market and the subsequent shift in regulatory focus towards pricing and service quality.
2. Competition: Analyzes liberalization methods such as Local Loop Unbundling, privatization of state-owned enterprises, and the role of foreign ownership restrictions.
3. Standards: Discusses the implementation of industry standards regarding mobile contract lengths, number portability, broadband accessibility, and the evolving nature of broadcasting.
4. Price Regulation: Explores mechanisms for regulating consumer roaming prices and the complexities surrounding network interconnection cost models.
5. Conclusion: Summarizes the success of past regulations and identifies future challenges such as market convergence and the need for improved internet access in rural and developing areas.
Keywords
Telecommunications, Regulation, Local Loop Unbundling, Privatization, Broadband, Market Competition, Price Regulation, Interconnection, Roaming, Digital Divide, Webcasting, Infrastructure, Policy, Globalization, OECD.
Frequently Asked Questions
What is the primary focus of this paper?
The paper analyzes the global telecommunications industry and the recent trends in international regulation, specifically how policies have evolved to accommodate market growth and technological change.
What are the main thematic areas covered?
The key themes include competition policy, the setting of technical and service standards, price regulation for consumers and network providers, and the global disparities in infrastructure access.
What is the core objective of the research?
The objective is to explore how and why telecommunication policies have shifted from a primary goal of creating competitive markets in the 1990s toward more complex regulatory frameworks managing pricing and service quality today.
Which methodology is applied?
The work utilizes an industry analysis approach, leveraging comparative data from the OECD and international regulatory bodies to illustrate policy trends across various nations.
What topics are discussed in the main body?
The main body examines Local Loop Unbundling (LLU), government ownership, foreign investment restrictions, standards for mobile/broadband, and various methods for regulating interconnection and consumer prices.
How can the paper be characterized by keywords?
The paper is characterized by terms such as Telecommunications, Regulation, Competition, Broadband, Price Regulation, and Digital Divide.
What is the significance of the "digital divide" mentioned in the text?
The digital divide refers to the disparity between densely populated areas and rural regions regarding broadband access; the paper discusses how governments are using policy reforms to overcome this gap.
How do countries manage the conflict between incumbents and new market entrants?
Through mechanisms like Local Loop Unbundling (LLU), regulators force incumbent monopolists to grant competitors access to existing infrastructure, preventing the abuse of bargaining power.
What is the difference between the various interconnection models described?
The models—Calling-party-pays, Bill-and-Keep, and Receiving-part-pays—represent different ways of allocating the costs of call termination between network providers, which directly impact the pricing for end-users.
- Quote paper
- Caroline Bussenius (Author), 2010, Industry Analysis – The Global Telecommunications Industry , Munich, GRIN Verlag, https://www.grin.com/document/183574
