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Journal of Economic Perspectives: Vol. 11 No. 4 (Fall 1997)

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European Telecommunications Markets on the Verge of Full Liberalization

Article Citation

Waverman, Leonard, and Esen Sirel. 1997. "European Telecommunications Markets on the Verge of Full Liberalization." Journal of Economic Perspectives, 11(4): 113-126.

DOI: 10.1257/jep.11.4.113

Abstract

January 1, 1998 is the date when voice telephony is fully liberalized in most European countries. The process of privatization and liberalization has been uneven across Europe; actively embraced by countries such as the U. K., Sweden, and Finland, while opposed in others. The role of the European Commission which uses its powers under the single market to push recalcitrant operators and countries is key. No two countries in Europe are following the exact same path, which makes the Commission's role difficult; it is unclear to what extent rules interconnection, access, and universal service funding should be identical. New entrants in country markets include other incumbent operators as well as other utilities; alliances are forming among many participants. The central issue is the degree to which the marketplace will be allowed to function, rather than forced to compete, through politics.

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Authors

Waverman, Leonard (U Toronto)
Sirel, Esen (U Paris I, Pantheon-Sorbonne)

JEL Classifications

L98: Industry Studies: Utilities and Transportation: Government Policy
L96: Telecommunications
L33: Comparison of Public and Private Enterprises; Privatization; Contracting Out

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