Incentive regulation and telco performance: A primer

The links between incentive regulation and telco performance are complex. This survey of recent research briefly reviews empirical studies of the causes and effects of new regulatory initiatives to promote modernization, price reductions and cost containment. Given the importance of this topic, the strengths and limitations of the first generation quantitative studies need to be understood by policy-makers worldwide. After describing how new initiatives are attempting to improve telecommunications performance, we present some observations about the art of policy development.