Indo-US FTA: Prospects for the Telecommunication Sector

Since telecommunication is one of the main drivers of economic growth and globalization, WTO (World Trade Organization) negotiations and New Age FTAs (Free Trade Agreements) have focused on liberalizing trade in this sector. The present paper analyses the possibilities of liberalizing trade in telecommunication services if India and its largest trading partner-the US-enter into a bilateral agreement. The study found that India and the US have trade complementarities in telecommunication services and that it should be a priority sector in the FTA negotiations. The study identified certain areas such as R&D related to telecommunication and broadband infrastructure where collaboration between companies of both countries would be mutually beneficial. The study found that telecommunication services have been significantly liberalized in the US FTAs-much beyond the scope of the GATS and the Reference Paper on Basic Telecommunications. While the current policy regime in India is consistent with some of the requests made by the US in its bilateral negotiations, for meeting others, the policy regime needs to be examined and, if required, reformed. The present paper suggests certain reforms which would enhance the productivity, efficiency and global competitiveness of the sector and enable the country to benefit from the bilateral liberalization.Indo-US FTA, GATS, bilateral agreements, telecommunication, services

The issues of enterprise growth in transition and post-transition period: the case of Polish 'Elektrim'

Case study of Polish company Elektrim illustrates the changing basis of growth of enterprises between the transition and post-transition periods. Elektrim grew primarily through conglomeration in the transition period. After the exhaustion of this mode of growth Elektrim has started to focus on a few core areas (telecoms, cables, energy). The strategic shift to telecommunications has been based on partnerships with foreign firms and it is likely that this will be the pattern in other areas. In this respect, the case of Elektrim shows the importance of internationalisation for the growth of enterprises in CEE. Based on the case study the paper draws several analytical issues: First, Elektrim's shift from conglomeration to focusing suggests that the institutional context, which drives firm strategy in post-socialist economies like Poland, is, perhaps, also changing. Second, in order to grow Elektrim is forced to enter into equity relationships and partnerships like with French Vivendi. This suggests that the possibilities for firm growth in post-socialist economies, like Poland, through generic expansion are still fewer when compared to growth based on mergers & acquisitions or different forms of alliances. Third, Elektrim's relationship with government is complex and refutes the simplified dichotomy of markets vs. governments. This raises the issue of to what extent post-socialist governments operate as a 'compensatory mechanism' on which firms like Elektrim can rely to grow. Fourth, the opening of the CEECs has led to relocations of EU and other MNCs into this region with the result that they are also transferring the oligopolistic competition from EU into new markets. The case of Elektrim shows how CEE companies and goverment regulations become factors in the oligopolistic competition between big EU companies. CEE companies and governments may use this competition to their advantage but also their limited bargaining powers may lead to outcomes unfavourable to them

The telecommunications sector in the Pacific: a regulatory policy survey

The paper makes three main contributions to the study of telecommunications policy in small island states. First, it provides a much-needed update of regulation of the telecommunications sector in the Pacific. Second, it explores a wide range of regulatory policy variables with potentially significant impacts on the performance of the telecommunications sector. Finally, the survey outlines the early expansion of the Irish-owned mobile operator Digicel Pacific Limited, which has been largely responsible for recent investment

Regionalizing telecommunications reform in West Africa

In recent years, there has been an increasing recognition that significant welfare gains could be realized through deep forms of regional integration which entail harmonization of legal, regulatory and institutional frameworks. Reforms that reduce cross-border transaction costs and improve the performance of “backbone” infrastructure services are arguably even more important for the creation of an open, unified regional economic space than trade policy reforms narrowly defined. This paper assesses the potential gains from regionalized telecommunications policy in West Africa. To this end, the paper: (i) discusses how regional cooperation can overcome national limits in technical expertise, enhance the capacity of nations credibly to commit to stable regulatory policy, and ultimately facilitate infrastructure investment in the region; (ii) identifies trade-distorting regulations that inhibit opportunities for regional trade and economic development, and so are good candidates for regional trade negotiations to reduce indirect trade barriers; and (iii) describes substantive elements of a harmonized regional regulatory policy that can deliver immediate performance benefits.E-Business,Environmental Economics&Policies,ICT Policy and Strategies,Transport Economics Policy&Planning,Emerging Markets

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 ;

Economic barriers to development : cost of access to internet infrastructure

The Internet is increasingly viewed as an "indispensable" resource for general development and economic growth (UNDP 1999). Its adoption by governments, organizations and individuals has resulted in the shrinking of spatial and temporal distances between different regions of the world, and has greatly facilitated the "free" and quick exchange of information. Such constrictions of time and space impact upon social and economic interactions at all levels of society. Furthermore, ramifications of this impact are felt by a society, group or individual irrespective of whether or not they use the Internet. The ability to access the Internet, and in particular the costs associated with such access, are therefore important points of consideration. Not only do these costs contribute to the disproportional spread of the Internet across the world's population; they also potentially contribute to uneven patterns of development within, and between countries