Competition and Regulation in Network Industries, Second Annual Conference on Competition and Regulation in Network Industries

Font Size:  Small  Medium  Large

The reform of the European regulatory framework for electronic communications: the unexploited phasing-out potentials

Guenter Dr. Knieps, Patrick Zenhaeusern

Last modified: 2009-11-06

Abstract


The European Commission’s Recommendation 2007/879/EC has become known as an impor-tant innovation towards phasing-out sector-specific regulation of electronic communications. Eleven of the eighteen markets are no longer regarded to be subject to sector-specific ex ante regulation. Although the important role of active and potential competition in telecommunica-tions markets has been mentioned, the economically founded implications of the “three- citeria-test” in the Commission’s Recommendation 2003/311/EC have not yet been imple-mented. As a consequence, the relevance of regulation in the remaining seven markets re-mains vague. To provide a superior alternative, the analytical concept of a disaggregated regu-latory approach is applied. Sector-specific regulatory interventions are to be limited to net-work-specific market power (stable monopolistic bottlenecks). In consequence, only two of the seven remaining markets within the European Commission Recommendation 2007/879/EC are possible candidates for regulation.


Full Text: PDF