Competition in the telecommunications industry: a new global paradigm and its limits

Abstract

The ascendancy of competition in the telecommunications industry suggests the emergence of a new public policy paradigm. By tracing the progress of two first movers - the United States and the United Kingdom - the technological, industrial and economic pressures for change can be observed. In this paper we present the underlying assumptions, effects and expected benefits of the competitive paradigm. We argue, however, that the outcomes experienced by early adopters of this paradigm may not be the same for later entrants. Evidence from other industries, economic development theory, and social equity literature questions the assumption that all nations should progress along identical telecommunications policy paths.