Economic Policy Analysis and the Internet: Coming to Terms with a Telecommunications Anomaly

The significant set of public policy issues for economic analysis that arise from the tensions between the ‘special benefits’ of the Internet as a platform for innovation, and the drawbacks of the “anomalous” features of the Internet viewed as simply one among the array of telecommunications systems, is the focus of discussion in this chapter. Economists concerned with industrial organization and regulation (including antitrust and merger law) initially found new scope for application of their expertise in conventional policy analyses of the Internet’s interactions with other segments of the telecommunications sector (broadcast and cable television, radio and telephone), and emphasized the potential congestion problems posed by user anonymity and flat rate pricing. Policy issues of a more dynamic kind have subsequently come to the fore. These involve classic tradeoffs between greater efficiency and producer and consumer surpluses today, and a potential for more innovation in Web-based products and service in the future. Many such tradeoffs involve choices such as that between policies that would preserve the original ‘end-to-end’ design of the original Internet architecture, and those that would be more encouraging of market-driven deployment of new technologies that afforded ISPs with greater market power the opportunity to offer (and extract greater profits from) restricted-Web services that consumers valued highly, such as secure and private VOIP.public policy, telecommunications, Web-based products, user anonymity

Collective bargaining centralisation against all odds? The Italian telecommunications industry after market liberalization

The widespread trends towards markets liberalisation, decline in trade union power, and flexible work organization were expected to push collective bargaining institutions to converge to a decentralised bargaining structure. This crude version of the neoliberal convergence thesis, however, was not borne out. Instead, change in employment relations has been more nuanced than initially thought. This paper explores the conditions under which centralisation of bargaining is possible, even in a more competitive environment with pressures for greater flexibility. It draws on case study evidence from the Italian telecommunications industry, tracing back the process of liberalisation since the early 1990s. It is shown how the strategies and the coalitions between organised labour, business and the state explain in large part this path of institutional change

The coherence of EU trade, competition, and industry policies in the high tech sector : the case of the telecommunications services sector

We analyze the coherence existing among European Union competition, industry, and trade policies in the high tech sector in general terms focusing on its specific features (externalities, fast progress) and their effects on the emergence and treatment of policy consistency and conflicts. Second, this analysis is applied to the European telecommunications services sector. The examination of this sector and the relevant EU policies reveals a consensus on giving priority to competition. However structural factors prevent policy implementation to reflect much liberalization and harmonization and business responses to trade globalization challenge effective competition. The potential, important role of standardization is shown.economics of technology ;

The Beginnings and Prospective Ending of “End-to-End”: An Evolutionary Perspective On the Internet’s Architecture

The technology of “the Internet” is not static. Although its “end-to- end” architecture has made this “connection-less” communications system readily “extensible,” and highly encouraging to innovation both in hardware and software applications, there are strong pressures for engineering changes. Some of these are wanted to support novel transport services (e.g. voice telephony, real-time video); others would address drawbacks that appeared with opening of the Internet to public and commercial traffic - e.g., the difficulties of blocking delivery of offensive content, suppressing malicious actions (e.g. “denial of service” attacks), pricing bandwidth usage to reduce congestion. The expected gains from making “improvements” in the core of the network should be weighed against the loss of the social and economic benefits that derive from the “end-to-end” architectural design. Even where technological “fixes” can be placed at the networks’ edges, the option remains to search for alternative, institutional mechanisms of governing conduct in cyberspace.

Regulation and deregulation in industrial countries : some lessons for LDCs

The United States'experience with antitrust and with directive regulation in the rail, trucking, airline, and telephone sectors offers useful lessons for developing countries. The experience highlights the realities both of market failure and of the difficulties of implementing regulation to control it - and reveals that imperfect regulation may be no better than imperfect competition. Antitrust measures to regulate price fixing and to require approval for mergers above some threshold level of industrial concentration are straightforward to implement and have provided some gains in economic welfare. The regulation of price discrimination, restrictive vertical practices, and predatory pricing is administratively more difficult, and the potential gains are less clearly evident. In many situations, import competition can be an efficient alternative. Direct regulation of rail, trucking, airline, and telephone was frequently inefficient, the regulatory apparatus often lost sight of its original objectives, and the regulators were captured by the regulated. For rail and trucking regulation, the regulatory outcome probably was worse than it would have been under laissez-faire.Administrative&Regulatory Law,Economic Theory&Research,National Governance,Knowledge Economy,Environmental Economics&Policies

Working Paper 65 - Governance in Africa: The Role for Information and Communication Technologies

The information and knowledge age is upon us due to rapid advances ininformation and communication technologies (ICTs). These new technologies arechanging the way we live and work, and they are transforming many aspects ofsocial and economic organization in ways we could have hardly imagined less thantwo decades ago. ICTs offer developing countries formidable and cost-effectivetools for accelerated development. This paper assesses the role that ICTs can playin Africa’s development with special emphasis on governance. The 21st centurychallenges for governance in Africa are reviewed. The paper summarizes the usesof ICTs in governance and discusses possible risks. It also attempts to offer ideasthat should be considered in employing ICTs for governance, and identifies keyareas for intervention by African countries and the African Development Bank. Thepaper stresses the importance of the human factor in realizing good governance,given that ICTs are only tools.