Network facilities in a competitive environment: A contribution from the Spanish debate

Emilio Lera

Telecommunications Policy, 1994, vol. 18, issue 8, 629-641

Abstract: An observation of liberalized telecommunication services markets shows that competition has had limited impact so far. The main cause of market distortions is the interdependence between operators; new entrants are obliged to use reserved facilities and services provided by incumbent operators, who are competitors in the same markets. The neutral provisions of these facilities and services could only be assured if the entrant had the option to install its own facilities. This article makes the case for the provision of networks and facilities to be market led, ie entrants should be allowed to decide whether to use available facilities or install their own, depending on suitability, as with any other business investment. The author introduces some considerations about the impact of this policy on universal service, existing networks, the introduction of new technologies and the role of agents.

Date: 1994
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