Telecommunications regulation

More competitive telecommunications markets —i.e. those in which there is strong competition between agents— tend to have more and better services and a more efficient price structure, as well as greater ICT investment and higher rates of penetration. High telecommunications penetration rates contribute to social inclusion and economic growth. Telecommunications infrastructure has positive network externalities. To achieve these, a network must reach a certain critical mass —a point that is close to universal service (Röller and Waverman, 2001; Waverman, Meschi and Fuss, 2005). Thus, besides its social importance, the goal of universal access impacts economic growth. Developing a vibrant competitive market requires regulation, since the absence of a strong and effective regulatory agency can encourage practices that perpetuate oligopolistic or monopolistic structures, to the detriment of the sector’s static, as well as dynamic, efficiency. Thus, regulation is essential for the sector’s performance.

Sustainable Development Goals:

Industry, Innovation and Infrastructure