Est. 2min 12-11-2001 (updated: 29-01-2010 ) Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram Full telecom competition in Europe is years away McKinsey Quarterly, 1998 nr 2 Summary: It is five years since the EU laid out a regulatory framework for the liberalisation of Member States’ telecommunications industries, and in that time much money in private funds have been invested. Yet the fact that in principle anyone can own or operate an EU telecoms company does not mean that Europe has achieved an optimal level of competition, nor that it will do so in the near future. Also price convergence across Europe remains a long way off. Local regulators have the power to determine the number of competitors in a market. Regulators also determine other aspects of liberalisation that ultimately affect the cost and quality of services and operators’ competitive positions: equal access, interconnection fees, infrastructure. McKinsey therefore states that the extent to which further investments in local services will depend on three regulatory questions: Will regulators mandate a complete separation between assets owned by cable television companies and those owned by telephone companies? Will regulators stimulate investment in wireless infrastructure through the generous allocation of spectrum and operating licences? Will incumbents be forced to unbundle their networks by selling or renting components to competitors? Despite the imminent deadline for the deadline for the opening up of Europe’s telecoms markets, their main challenge will be to keep liberalisation moving forward. This will require newly formed regulatory bodies to work through a backlog of basic short-term issues without getting stuck in increasingly complicated regulations. To read the full article,sign infor McKinsey Quarterly’s new Premium membership If you have already registered:go directly to the full article; For further information, contact ; EURACTIVLinksDossier on telecoms liberalisation; Recent story on telecoms:ECouncil informed about telecoms framework developments(16 October 2001)
