By Prof. Dr. Paul J. J. Welfens, Prof. George Yarrow, Prof. Dr. Ruslan Grinberg (auth.), Prof. Dr. Paul J. J. Welfens, Prof. George Yarrow, Prof. Dr. Ruslan Grinberg, Dipl.-Vw. Cornelius Graack (eds.)
Competition in community industries faces specific difficulties that are analyzed from either a theoretical and coverage standpoint. problems with vertical integration, deregulation and privatization are coated. whereas pageant and privatization are quickly unfolding in telecommunications in Western and japanese Europe, power and railway transportation signify sectors of extra sluggish liberalization. the several industry features of telecommunications, power and transportation bring up consistency difficulties within the fields of deregulation, funding techniques and internationalization. whereas transformation regulations create possibilities for liberalization in japanese Europe and Russia the latter indicates serious difficulties in finishing monopoly and nation possession. community industries will be topic to festival and promise significant funding possibilities plus buyer benefits.
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Extra info for Towards Competition in Network Industries: Telecommunications, Energy and Transportation in Europe and Russia
Example text
E. industry-specific competition rules - are means to cope with the specific problems of the energy sector. g. the UK until 1990; Italy; Spain; France). Because of falling average costs the energy sector is often considered to be a natural monopoly which does not allow competition or at least will not achieve efficiency via competition. This view favoring a monopoly framework is, if generally applied to the energy sector, seriously flawed. Recently several European countries have successfully launched competition in the electricity sector: Norway, the UK, Sweden and Finland.
6. TOWARDS COMPETITION IN NETWORK INDUSTRIES Networks provide essential services which are used by all sectors, raising the marginal product of capital and labor. To the extent that they are provided for free firms using infrastructure services will record higher profits and tend to invest more than otherwise. With higher local investment government expenditures on infrastructure can be financed from higher future tax receipts based on rising output. However, globalization of industry renders this tax calculus of governments uncertain since mobile investors could use free infrastructure to mainly promote business expansion abroad.
But the US was clever enough to split off the local networks from AT&T in 1984, thus creating the so-called baby bell companies. These baby bells became profitable strategic investors in the expanding European mobile telephony business in the early 1990s. Mobile telephony is, possibly except for advanced DECT concepts, no full alternative to fixed network transmission, especially as regards reliable high quality data transmission which is important for video conferencing and some internet applications.