The integrated sphere of coopetition of digital services and the regulatory approach of diagonal equity

Rohit Prasad and V Sridhar

Telecommunications Policy, 2024, vol. 48, issue 3

Abstract: Telecommunications Service providers (TSPs) and Content and Application Providers (CAPs) that operate over the Internet are traditionally regarded as complementary. However, the growth of 5G technologies has led to the emergence of an integrated sphere of competition and cooperation between TSPs and CAPs.The new elements of this competitive landscape stem from the hybridization of network provisioning, the growth of substitute services, and the emergence of end to end value networks comprising of devices, connectivity solutions, and a variety of content and application services. Simultaneously, the regulatory drivers that occasioned a differential treatment of TSP in their role as providers of essential utility communication services are converging with the features observed with respect to certain CAPs. These dynamics warrant the application of a new regulatory framework in the form of Diagonal Equity, that recognizes the need for similar regulatory principles to be applied to TSPs and CAPs, while acknowledging that with respect to certain issues a differential treatment will continue to be required.

Keywords: Co-opetition; Horizontal equity; Vertical equity; Diagonal equity; Telcos; Content; Application providers (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.telpol.2023.102700

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