End of the Line for the Local Loop Monopoly? Technology, Competition, and Investment in Telecom Networks
Local telephone service is the last bastion of a still frequently asserted public policy preference for monopoly provision of telecommunications. This Note challenges the rationale for that preference, addressing four issues: First, is local networ...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1995/12/441235/end-line-local-loop-monopoly-technology-competition-investment-telecom-networks http://hdl.handle.net/10986/11641 |
| Summary: | Local telephone service is the last
bastion of a still frequently asserted public policy
preference for monopoly provision of telecommunications.
This Note challenges the rationale for that preference,
addressing four issues: First, is local network competition
feasible from a technical and cost point of view? Second, is
telecommunications competition accepted by major investors?
Third, how important is competition from a public policy
point of view? And fourth, how can it be made to work? This
Note makes the case that local network competition is
increasingly feasible from a technical and cost point of
view, that it is increasingly accepted by investors, and
that it offers important benefits from a public policy point
of view. But in order to work, it must be supported by
effective regulation. Policymakers should be encouraged to
address the critical issues of this transition toward a
competitive telecommunications sector. |
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