The role of public administrations in developing electronic communications infrastructures in Spain

Abstract

PurposeThe purpose of this paper is to provide an overview of the direct involvement of public administrations in the supply side of electronic communications markets based on the Spanish experience. It is an example of the difficult balance in the public private interplay in next generation electronic communications networks.Design/methodology/approachStarting from a general overview of the conditions for public intervention in the development of infrastructures established by the electronic communications regulatory framework, this paper analyses the case of Spain as an illustrative example taking into consideration some specific initiatives to illustrate the different possible mechanisms of intervention on the supply side.FindingsIt is the opinion of the authors that a framework of public‐private collaboration in the field of electronic communications infrastructure development is consistent with the industry liberalisation model chosen one decade ago in Spain and it could be particularly adequate in an environment of financial hardship such as the present one, which leads to a greater demand for efficiency in the use of public and private resources. However, the conditions and limitations for public involvement should be persistently respected. In addition, there are novel policy instruments on the supply side that could help the deployment of next generation networks without the burden of substituting private initiative.Originality/valueThe paper presents a systematic analysis of policy instruments for direct intervention of public administrations in the supply side of electronic communications market, including the specific situation of Spain. It is also a contribution to the debate on the role of public administrations in developing electronic communications infrastructures.