An international comparison of regulations and competition in telecommunications

Finally, section 8 concludes this article. The EU has sought to address the lack of network investment in a series of recent policy documents, which includes various Recommendations and Directives for next-generation networks Cave and Shortall ; EC More flexible access pricing rules which have allowed variation in charges across Member States have prevented the controversy and final abandonment of attempts at unbundling networks in the US in the decade after the passage of the US Telecommunications Act of COS firms have to monitor developments of such "basic" technologies as microelectronics, optoelectronics, fiber optics and other new materials.

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In other words, rivalry either remains a pure threat or it exceptionally occurs if the incumbent firm is not adequately reactive to the threat itself. Governments increased the number of licenses in an effort to introduce more competition into these markets Gruber and Valletti As suggested earlier section 1the COS industry provides a particularly useful field for a more detailed analysis of the process through which the above mentioned changes affect competitive behaviours.

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Indeed, all the countries that completed the analysis did find problems—without a single exception—and imposed differential cuts to termination rates.

Then the customer pays a retail price to his home network.

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The European Framework for Regulating Telecommunications: A year Appraisal