Future policy in telecommunications: an analytical framework

CPB investigates future policy issues within the telecommunication sector with the aid of so-called 'exogenous developments'.  The aim is to analyse a limited number of developments that are exogenous to policymakers. The policy issues that emerge depend mainly on the trade-off between so-called static and dynamic efficiency. The three exogenous developments we consider are: growth of internet through mobile, the outpacing of demand for supply of broad band internet access, and the concentration and consolidation of the European mobile industry. This paper describes the policy trade-offs for each of the exogenous developments, charts the likely development of the industry given certain key drivers, and suggests ways in which the market can be pushed towards the optimum state of high dynamic and high static efficiency. This work is co-financed by OPTA.