Competition in Telecommunications and Internet Services: Problems with Asymmetric Regulations

Paul Welfens

No disbei205, EIIW Discussion paper from Universitätsbibliothek Wuppertal, University Library

Abstract: With the digital convergence of internet services markets and telecommunications markets, the issue of a common, consistent regulation has become more important. While Google or Facebook can exploit knowledge about the content of "data mails" or SMS, data protection rules for telecommunication operators are different - they cannot use info about "structural content" and are thus unable to generate high revenues from advertising that is based on knowledge about structural content. Internet service providers thus can cross-subsidize digital communication services and thereby gain market shares - based on cross-subsidization - in traditional telecommunication markets. Thus there is a fundamental inconsistency of regulations for internet service providers and telecommunication operators which should be remedied by new global rules for the emerging global communications market. The EU and the US, as well as other countries, plus the ITU should launch a joint initiative in order to create a global level playing field.

Keywords: Internet services; Telecommunication; Regulation; Digital global markets (search for similar items in EconPapers)
JEL-codes: L86 L96 L98 (search for similar items in EconPapers)
Pages: 20 Pages
Date: 2014-12
New Economics Papers: this item is included in nep-com, nep-cse, nep-ict, nep-net, nep-pay and nep-reg
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