EU regulation and the development of mobile and broadband services

Abstract

PurposeThis paper aims to examine the recent performance of European Union (EU) telecommunications policy in the context of the policy aims set out in the original green paper of 1987. It also aims to consider some problems encountered in applying the regulatory rules to interconnection, mobile roaming and broadband.Design/methodology/approachThe paper draws on economic and institutional analysis undertaken in 2007, complemented with monitoring of the EU policy response and empirical evidence until 2012.FindingsThe paper finds that, despite the success of the regulatory reform of 2003, the EU has encountered problems in dealing with a few “big ticket” policy items via its market reviews. The difficulties stem from a mix of factors, including poor methodological design and an erroneous assumption that effective competition is feasible in all market segments. Three main avenues for improvement are suggested, whilst retaining the basic structure of the cycle of market reviews.Originality/valueThe paper draws on theory, as well as empirical and institutional evidence over two decades, to highlight some flaws in dealing with some key telecommunications policy issues in the EU. It is of value to policy makers, industry analysts and academics.