Pervasiveness and efficacy in regulatory governance – neo-liberalism as ideology and practice in European telecommunications reorganisation

Telecommunications provides one of the most well-developed examples of the growth of neo-liberalism. The sector is interesting since the contrast between its pre neoliberal and post neo-liberal characteristics is particularly stark. This paper explores the impacts of neo-liberalism in European telecommunications, placing particular focus on the EU institutional context. It considers the conseqences of neo-liberalism as ideology, on the one hand, and practice, on the other. It finds that, ideologically, neoliberalism has become deeply pervasive in European telecommunications and for its advocates can be regarded as a highly successful project spanning almost 30 years. In terms of practice, the paper argues that the pursuit of neo-liberalism has been less successful. In particular, competition has proven complex and difficult to create and there are concerns over the ability of the neo-liberal model to provide sufficient investment to deliver new Next Generation Networks. However, these deficiencies tend to be under-played due to the ideological and rhetorical success of the neo-liberal project in telecommunications.

Governing information infrastructures and services in telecommunications

Purpose – Telecommunications comprises a vital component of information infrastructures and services, with a historically strong public interest dimension. For the best part of 30 years, the telecommunications sector in Europe has been the subject of a radical reorganisation in structural and operational terms along the lines of neo-liberalism. This paper aims to analyse the significance of the neo-liberal project in telecommunications in respect of the related dimensions of ideology and practice. Design/methodology/approach – The paper presents a public policy critique of the manifestation of neo-liberalism in the telecommunications sector in the European Union, employing desk-based research on relevant primary and secondary source documentation. Findings – The paper finds that proponents of neo-liberalism have been able to secure the broad acceptance of neo-liberalism as a “view of the world” for telecommunications. It shows that in practice, however, the neo-liberal model in telecommunications provides evidence of a less than efficacious adoption process in three respects: neo-liberalism requires an elaborately managed system the regulatory burden of which has been under-emphasised; the normative success of neo-liberalism has masked how difficult it has actually proven to be to create competition; the preoccupation with markets and competition has resulted in de-emphasis of public interest issues in telecommunications. Originality/value – This paper contributes up-to-date knowledge of the nature and effects of neo-liberalism in the European telecommunication sector. It provides a challenge and counterweight to the “received wisdom” that neo-liberalism has been an overwhelmingly successful approach to the re-ordering of European telecommunications