The Governance Of Telecom Markets

This book provides a critical comprehensive summary of the coevolution of telecom markets, rules and public institutions over the last 25 years, focusing on the challenges that regulators and policy makers have been facing. Even if the perspective of the book is European (as the EU regulatory framework is examined), most of the economic and institutional issues addressed are common to all telecom markets in advanced economies. The book addresses some traditional fundamental topics in the telecom regulation literature, as well as some hot-button topics in the current policy debate, e.g., ultrafast broadband and 5G networks, the relationship between investments and competition, the sector digitalisation and the role of OTTs. All these are relevant to students, researchers, and policy makers interested to get a sound understanding of the sector, its many dimensions and coevolutionary patterns.

The mobile telecommunication industry has been one of the fastest growing industries in the global economy since the late 1990s. As the first country to offer commercial Code Division Multiple Access (CDMA) cellular service in the world, Korea was able to jump right into the digital mobile markets, enhancing its status as a leading manufacturer of mobile equipment. While the growth of the telecom industry occurred with the emergence of worldwide market-oriented regulatory reform and liberalization in telecommunications, the state-market relationship in Korea evolved from state monopoly toward “centralized governance” and later toward “flexible governance,” which is substantially different from “liberal governance” of the US. This book examines the uniqueness of Korean regulatory reforms of the mobile telecommunication sector, and argues that the market-oriented regulatory reform and liberalization should be explained by focusing on the interactions among the state, the private sector, and international political economic environment. It will appeal to scholars and policy-makers alike concerned with market regulation, Asian development and political economy.

Few would doubt the potential of information technology to connect individuals, firms and organisations. Whether this will actually lead to the integration of markets and societies is a different issue. The articles collected in this book shed light on crucial considerations for the success of global communication networks. These include frameworks for regulation, inclusion of customers in defining product and service strategies, access to advanced technology and networks for all groups, and more.

In recent years, liberalization, privatization and deregulation have become commonplace in sectors once dominated by government-owned monopolies. In telecommunications, for example, during the 1990s, more than 129 countries established independent regulatory agencies and more than 100 countries privatized the state-owned telecom operator. Why did so many countries liberalize in such a short period of time? For example, why did both Denmark and Burundi, nations different along so many relevant dimensions, liberalize their telecom sectors around the same time? Kirsten L. Rodine-Hardy argues that international organizations – not national governments or market forces – are the primary drivers of policy convergence in the important arena of telecommunications regulation: they create and shape preferences for reform and provide forums for expert discussions and the emergence of policy standards. Yet she also shows that international convergence leaves room for substantial variation among countries, using both econometric analysis and controlled case comparisons of eight European countries.

Few would doubt the potential of information technology to connect individuals, firms and organisations. Whether this will actually lead to the integration of markets and societies is a different issue. The articles collected in this book shed light on crucial considerations for the success of global communication networks. These include frameworks for regulation, inclusion of customers in defining product and service strategies, access to advanced technology and networks for all groups, and more.

Jill Hills picks up from her pathbreaking study The Struggle for Control of Global Communication: The Formative Century to continue her examination of the political, technological, and economic forces at work in the global telecommunications market from World War II to the World Trade Organization agreement of 1997. In the late twentieth century, focus shifted from the creation and development of global communication markets to their intense regulation. The historical framework behind this control--where the market was regulated, by what institution, controlled by what power, and to whose benefit--masterfully complements Hills's analysis of power relations within the global communications arena. Hills documents attempts by governments to direct, replace, and bypass international telecommunications institutions. As she shows, the results have offered indirect control over foreign domestic markets, government management of private corporations, and government protection of its own domestic communication market. Hills reveals that the motivation behind these powerful, regulatory efforts on person-to-person communication lies in the unmatched importance of communication in the world economy. As ownership of communications infrastructure becomes more valuable, governments have scrambled to shape international guidelines. Hills provides insight into struggles between U.S. policymakers and the rest of the world, illustrating the conflict between a growing telecommunications empire and sovereign states that are free to implement policy changes. Freshly detailing the interplay between U.S. federal regulation and economic power, Hills fosters a deep understanding of contemporary systems of power in global communications.

Regulators act as “market referees”, balancing often competing interests of stakeholders, including governments, current and future actors in the markets, and consumers. At the same time, markets are changing at an unprecedented pace due to new technologies, the international drive toward carbon-neutral economies, shifts in consumer needs and preferences, and, more recently, the profound changes brought by the COVID-19 pandemic.

Innovation in information and communication technology (ICT) fuels the growth of the global economy. How ICT markets evolve depends on politics and policy, and since the 1950s periodic overhauls of ICT policy have transformed competition and innovation. For example, in the 1980s and the 1990s a revolution in communication policy (the introduction of sweeping competition) also transformed the information market. Today, the diffusion of Internet, wireless, and broadband technology, growing modularity in the design of technologies, distributed computing infrastructures, and rapidly changing business models signal another shift. This pathbreaking examination of ICT from a political economy perspective argues that continued rapid innovation and economic growth require new approaches in global governance that will reconcile diverse interests and enable competition to flourish. The authors (two of whom were architects of international ICT policy reforms in the 1990s) discuss this crucial turning point in both theoretical and practical terms.