scholarly journals Explaining the definition of wholesale access prices in the Portuguese telecommunications industry

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Vitor Miguel Ribeiro ◽  
Fernando Lobo Pereira ◽  
Rui Gonçalves
Keyword(s):  
European Commission ◽  
Optimization Theory ◽  
Complete Information ◽  
Telecommunications Industry ◽  
Regulatory Framework ◽  
Theory Approach ◽  
Investment Theory ◽  
Social Welfare Maximization ◽  
Access Price ◽  
Long Run

<p style='text-indent:20px;'>The 2016–2018 triennium was a period marked by a fierce dispute between the European Commission and Autoridade Nacional de Comunicações, Portugal, on the need to regulate wholesale access prices. While the European Commission defended the imposition of Fiber-To-The-x regulation in non-competitive areas, the Portuguese sectoral regulator argued in favor of the persistence of Fiber-To-The-x deregulation. Following a Game Theory approach, the present study demonstrates that the transition from Fiber-To-The-x deregulation to Fiber-To-The-x regulation should only occur when a given territorial unit becomes a competitive area since the subgame perfect Nash equilibrium captures a regulatory framework optimally characterized by the imposition of active access price deregulation (regulation) in non-competitive (competitive) areas, that is, local administrative units characterized by a weak (strong) degree of vertical spillover, respectively. Meanwhile, ducts access regulation must be permanently imposed throughout the national territory, despite it can be relaxed in competitive areas if the regulator imposes intra-flexibility to establish a monopolistic bottleneck to ensure social welfare maximization. Previous conclusions require to introduce both facility-based and service-based competition at the entry stage as well as active and passive obligations at the regulation stage in a multi-stage game with complete information. The present analysis legitimizes the emergence of a new optimization theory in the telecommunications literature, whose modus operandi is contrary to (coincident with) the ladder of investment theory in non-competitive (competitive) areas, respectively. Differently from the view sustained by the ladder of investment theory, which defends that a short-term regulatory touch combined with long-term market deregulation is a socially optimal strategy, the new theory confirms that a regulatory intervention is socially desirable only in the long run. The conceptual refinement is meticulously explained and labeled as the <i>theory of creative creation</i> because, differently from the Schumpeterian gale of creative destruction, whose processes of industrial mutation are permanently market-driven by assumption, a period of regulatory holidays followed by successive regulatory interventions dependent on the degree of vertical spillover observed in the telecommunications industry can effectively promote investment realization that continuously revolutionizes the market structure from within, incessantly destroying the old technology. The theory of creative creation reflects the regulatory framework currently in force in the Portuguese Telecommunications Industry.</p>

Flexibility in the European telecommunications industry

2017 ◽  
Vol 19 (5) ◽  
pp. 397-409 ◽  
Author(s):  
Vitor Miguel Ribeiro
Keyword(s):  
Historical Context ◽  
Telecommunications Industry ◽  
Regulatory Framework ◽  
Wholesale Market ◽  
Content Type ◽  
Static Efficiency ◽  
Access Price ◽  
European Regulatory ◽  
Retail Prices ◽  
Definition Of

Purpose The purpose of this paper is to expose the necessity of introducing some degree of flexibility in the definition of wholesale access price of FTTx, in the EU competition regulatory framework, and incorporating new regulatory actions to boost investment substitutability to ensure that NRAs accomplish dynamic and/or static efficiency targets. Design/methodology/approach Given the European historical context, the current preponderance of cable and the strong heterogeneity in NGA networks rollout across Europe, a policy-oriented analysis defines a set of recommendations useful for member states whose NGA networks market is in a more advanced state of development. Findings Flexibility is necessary in jurisdictions holding a highly competitive NGA wholesale market at the three previously described levels to avoid that strong dynamic efficiency is passed-through into excessive retail prices which may decrease static efficiency in greater proportion, thereby generating a deadweight loss. Originality/value The novel measures pointed out are part of the on-going debate concerning the revision of the European regulatory framework for NGA networks.

scholarly journals The Spillover Effects on Strategic Interdependence Neighboring Countries: A Game Theory Approach

2021 ◽  
Author(s):  
Oyundelger Sharkhuu ◽  
Pu Yongjian ◽  
Batdelger Tsogt-Ochir ◽  
Tugs Sanjdorj
Keyword(s):  
Game Theory ◽  
Time Series Data ◽  
Spillover Effects ◽  
Three Dimensions ◽  
Series Data ◽  
Theory Approach ◽  
Vector Error Correction ◽  
Long Run ◽  
Inbound Tourism ◽  
Short Run

The main aim of sustainable development is to ensure an intelligible and long-lasting balance between the economy, society, and the environment. Sustainable tourism could only be successful if the inter-relationships between all three dimensions are accepted. In the limited number of research analyses, the focus of the research is on competition between tourist countries and destinations. This study has used Game theory to analyze the competition applies time-series data in selected neighboring countries measure of a VAR-based spillover index, developed by [1] to investigate the time-varying relationship between tourism and Gross Domestic Product. Each country analyzed Vector Error Correction (VEC) and Granger analysis to explore the causal short and long-term tourism and use a sample that spans from 1997 to 2019. From the main results of Cholesky, the total spillover index is 59.0% between Russia and Mongolia which suggests a moderate interdependence among the four variables. Findings indicate that neither China nor Mongolia have a short-run influence on tourism development. China's inbound tourism is affected in the long run by Mongolia's inbound tourism but not vice versa can be explained by the fact that the number of tourists visiting Mongolia would include China in their travels.

The Challenge of the Law to Electronic Commerce

2011 ◽  
pp. 383-410
Author(s):  
Severine Dusollier ◽  
Laetitia Rolin Jacquemyns
Keyword(s):  
Electronic Commerce ◽  
European Commission ◽  
Dispute Resolution ◽  
New Products ◽  
Regulatory Framework ◽  
Electronic Marketplace ◽  
Goods And Services ◽  
Legislative Action ◽  
Regulatory Approach ◽  
Rules Of The Game

In the Communication on Electronic Commerce of 19971 , the European Commission stressed that “in order to allow electronic commerce operators to reap the full benefits of the Single Market, it is essential to avoid regulatory inconsistencies and to ensure a coherent legal and regulatory framework for electronic commerce.” The electronic marketplace has a crucial need to know “the rules of the game”2 in order to carry out electronic commerce. Therefore, the regulatory framework has to be clear, stable and predictable, both to enable e-commerce operators to face all challenges raised by the development of new products and services and to ensure the trust and confidence of consumers in the new electronic supermarket. These are the main objectives of the legislative action of the European Commission3 which has, in recent years, laid the foundations for a consistent setting of the legal scene for electronic commerce in Europe. It is worth recalling that the action of the Commission has been and should be guided by the key principles of the EC Treaty, particularly by the concern for the Internal Market and the enhancement of the circulation of products and services. A clear consequence is that any regulatory intervention of the Commission should be directed to a further harmonization or clarification of the existing rules in order to lift the uncertainties and discrepancies in national policies which might impede the free circulation of electronic goods and services. Other key concerns of the European Commission are to refrain from over-regulating electronic markets and businesses and to remain open to a self-regulatory approach and alternative dispute resolution. This last guideline is particularly followed in the recent Draft Directive on electronic commerce4 .

Customer routing to different servers with complete information

1989 ◽  
Vol 21 (4) ◽  
pp. 861-882 ◽  
Author(s):  
Zvi Rosberg ◽  
Parviz Kermani
Keyword(s):  
Complete Information ◽  
Service Rate ◽  
Dependent Rate ◽  
Routing Policy ◽  
State Dependent ◽  
Long Run ◽  
Ideal Situation ◽  
Ideal System ◽  
Holding Cost ◽  
Routing Policies

In this paper we consider a queueing system having n exponential servers, each with its own queue and service rate. Customers arrive according to a Poisson process with rate λ, and upon arrival each customer must be routed to some server's queue. No jockeying amongst the queues is allowed and each server serves its queue according to a first-come-first-served discipline.Each server i, 1 ≦ i ≦ n, provides service with a state-dependent rate μ(i)(k), k = 0, 1, …. In addition, at every queue i, there is a deterministic holding cost which occurs at rate h(i)(k) while there are k customers at the queue.An admissible routing policy is a policy that assigns each arriving customer to one of the queues. A decision at time t may be randomized and dependent on the queue lengths and decisions till time t. An optimal routing policy is an admissible policy that minimizes the long-run average holding cost.In this study, we bound the optimal cost from below, by considering an ideal system, where each server optimally selects a given proportion of customers, irrespective of other servers' selections. From this ideal system we construct a class of admissible routing policies, the overflow routing class, that approximates the ideal situation for each server. Finally, we evaluate the policies and compare them to the lower bound.

scholarly journals EU regulations on telecommunications: The role of subsidiarity and mediation

First Monday ◽  
2010 ◽  
Author(s):  
Panayiota Tsatsou
Keyword(s):  
European Commission ◽  
Information Society ◽  
Shared Vision ◽  
Regulatory Framework ◽  
Critical Examination ◽  
Eu Regulation ◽  
Telecommunications Regulation ◽  
The Past ◽  
The Eu

This article provides a critical examination of telecommunications regulation in the EU and argues for the need for change along the lines of subsidiarity and mediation. This discussion is particularly timely, as the European Commission is working on a new telecommunications regulatory framework, with the lessons and failures of the past appearing more critical than ever. In this context, the article points to the debate between national heterogeneity and shared vision in the European Information Society and it proposes a shift of the culture and procedures dominating the formal EU regulation. It brings to the fore the potential for the tension between national particularities and EU regulation to be resolved by applying subsidiarity along with existing regulatory tools and mediation via the enforcement of mediating networks and the establishment of institutions that increase the accountability of EU regulation on telecommunications.

Growing drone use will drive international regulation

2015 ◽  
Keyword(s):  
European Commission ◽  
Technological Development ◽  
Regulatory Framework ◽  
International Regulation ◽  
Content Type ◽  
Privacy Concerns ◽  
Red Tape ◽  
The Eu

Significance The EP's move gives parliamentary backing to the effort to develop common EU drone rules. The report advanced nothing novel, but will both encourage and put pressure on the European Commission to act. EU agreement on regulations governing drone use in controlled airspace and for commercial purposes would be a key step in expanding drone construction and services. Impacts The emergence of a comprehensive regulatory framework will trigger the full commercialisation of drone operations. The EP report will increase pressure on the European Commission and EU states to find funding to support drone technological development. The EU will seek to establish enough of a common regime to encourage development without so much 'red tape' as to deter investment. Regulators must also balance safety and privacy concerns against industry pressure to allow wider exploitation of the technology. Achieving the international 2028 target for full airspace integration will require resolution of several technological issues.

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