Past, Present and Future of the Telecommunications Industry

The telecommunications industry has experienced a series of dramatic changes since itsinception in the 1880s. Due to the latest liberalization and privatization wave in the world, the telecommunications industry has turned into a dynamic environment and is rapidly growing.In addition, the New Economy emerged and brought new technological developments in the1990s. They have stimulated the convergence of previously distinct industries such as thetelecommunications, information technology, entertainment, media, and consumerelectronics, into the so-called multimedia information industry. This study discusses the (de)regulation actions and their implications on the telecommunications industry as of its beginning. Furthermore, this study also presents a general overview of major trends in inter-firm partnerships and M&As in the telecommunications industry since 1985, examining both the general developments and the distribution according to internationalization and industries. We find that the overall trends demonstrated an increase in importance of inter-firm partnerships and M&As over time. Another significant finding is the increase in importance of other industries. In relative terms, the growth of M&As and alliances with partners outside the telecommunications industry superseded the increase in the number of M&A’s and alliances within the industry.Strategy;

Asia-Pacific telecommunications liberalisation and productivity performance

This study examines the growth in total factor productivity (TFP) of 12 Asia-Pacific telecommunications carriers for the period 1987 through 1990. Carriers are chosen to represent the stages of telecommunications liberalisation identified by the International Telecommunication Union (1995a). A model relating TFP growth to output growth, changes in output mix, technology change and market competition and private ownership is estimated on a unique data set obtained from telecommunications carrier annual reports. Empirical results show competition, private ownership, technology change and scale economies improve carrier TFP growth.Asia-Pacific telecommunications; liberalisation and productivity performance

Protection and trade in services : a survey

Until recently, trade in services was mostly ignored by iinternational economists, reflecting a perception that services were nontradable. This has never been true. Transportation and travel, for example, have always been important economic activities. In 1995, services trade climbed to a 20-percent share of global trade -no doubt an underestimate, as the most dynamic component of trade in services is telecommunications, which is not being properly captured in conventional balance of payment statistics. The authors survey the literature on trade in services, focusing on thepolicies used to restrict such trade, the gains from liberalization, and the institutional mechanisms adopted in pursuit of liberalization. They argue that technological progress (which makes services more tradable) and iinternational trade negotiations are likely to keep liberalization of trade in services a high-profile policy issue. They suggest that research focus on developing better estimates of the welfare costs of protectionism in the service sector. This will require quantifying barriers to the international exchange of services.Environmental Economics&Policies,Health Economics&Finance,Payment Systems&Infrastructure,Economic Theory&Research,Decentralization,Health Economics&Finance,ICT Policy and Strategies,Knowledge Economy,Environmental Economics&Policies,Economic Theory&Research

The radio spectrum : opportunities and challenges for the developing world

The radio spectrum is a major component of the telecommunications infrastructure that underpins the information society. Spectrum management, however, has not kept up with major changes in technology, business practice, and economic policy during the past two decades. Traditional spectrum management practice is predicated on the spectrum being a limited resource that must be apportioned among uses and users by government administration. For many years this model worked well, but more recently the spectrum has come under pressure from rapid demand growth for wireless services and changing patterns of use. This has led to growing technical and economic inefficiencies, as well as obstacles to technological innovation. Two alternative approaches are being tried, one driven by the market (spectrum property rights) and another driven by technology innovation (commons). Practical solutions are evolving that combine some features of both. Wholesale replacement of current practice is unlikely, but the balance between administration, property rights, and commons is clearly shifting. Although the debate on spectrum management reform is mainly taking place in high-income countries, it is deeply relevant to developing countries as well.Broadcast and Media,Roads&Highways,Climate Change,Montreal Protocol,ICT Policy and Strategies

Price Effects of Regulation: Telecommunications, Air Passenger Transport and Electricity Supply

Price Effects of Regulation draws on research undertaken at the OECD to quantify the effects of domestic regulatory regimes on prices in up to 50 economies for 3 sectors — international air passenger transport, telecommunications and electricity supply. The study finds wide variations in regulatory regimes across economies for each sector. The results suggest a positive relationship between the stringency of regulatory regimes and higher prices in each sector. For example, the bilateral system of restrictions on the number of air passenger flights between countries and the conditions under which they operate are estimated to collectively increase airfares by between 3 and 22 per cent.regulation - price effects - telecommunications - air transport - airlines - electricity - trade restrictions

Railway Reform in China.

The purpose of this working paper is to consider the current situation of Chinese Railways, the progress of reforms to date, and possible future developments. The first section describes the current problems of Chinese Railways, as a vast organisation subject to strong central control, facing enormous and rapidly growing demands which it is unable to satisfy. The progress of reform in Chinese Railways to date, and in particular the Economic Contract Responsibility System instituted in the late 1980's and the development of joint venture companies to build new lines, are then described. In the following section the key reform models found in other countries - deregulation and privatisation of vertically integrated regional companies; separation of infrastructure from operations with open access andlor franchising competitors; or reorganisation on the basis of business sectors - are then described. None is fully suitable for China, but it is suggested that a combination of sectorisation, more commercial independence, further development of joint public/private partnerships and more contracting out, is the most likely way forward