Facility-based competition in Europe: The case for a separate satelite system

Oliver Stehmann

Telecommunications Policy, 1992, vol. 16, issue 2, 135-146

Abstract: Technological progress in both the space and the Earth segments has made it feasible to run satellite networks completely independent of terrestrial systems. Given its intrinsic advantages, especially in Europe, a separate satellite network could lead to efficiency gains resulting from facility-based competition. Moreover, a satellite entrant may induce the terrestrial network operators to complete directly against each other. It may therefore offer a solution to the problem of network fragmentation in Europe. Moreover, its intensitivity to distance implies that a satellite competitor will foster universal service. It is therefore agrued that Eutelsat, the main player in the European satellite market, should be separated from the national telecommunications organizations.

Date: 1992
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