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      EUROPEAN INTEGRATION AND TELECOMMUNICATIONS: RESTRUCTURING MARKETS AND INSTITUTIONS

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            Abstract

            Complexity characterises technical and institutional restructuring in telecommunications. This makes it difficult to determine the social and economic implications of transformations in an industry that has outgrown its monopolistic origins. This paper focuses on the external forces influencing the European Community's efforts to fashion a more open, integrated and competitive telecommunication environment. Attention is given to organisational, regulatory, and trade issues. The analysis considers whether the strategic economic and political importance of telecommunications in the wider context of European integration is taking precedence over telecommunications as a major tool of social policy.

            Content

            Author and article information

            Journal
            cpro20
            CPRO
            Prometheus
            Critical Studies in Innovation
            Pluto Journals
            0810-9028
            1470-1030
            June 1990
            : 8
            : 1
            : 50-66
            Affiliations
            Article
            8631873 Prometheus, Vol. 8, No. 1, 1990: pp. 50–66
            10.1080/08109029008631873
            0c470d3d-9067-4b08-9a1e-945475e97fcb
            Copyright Taylor & Francis Group, LLC

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Page count
            Figures: 0, Tables: 0, References: 27, Pages: 17
            Categories
            Original Articles

            Computer science,Arts,Social & Behavioral Sciences,Law,History,Economics
            regulation,telecommunications policy,European Community,telecommunications,European integration

            NOTES AND REFERENCES

            1. Freeman C.. 1988. . “Preface. ”. In Technical Change and Economic Theory . , Edited by: Dosi G.. p. 10 London : : Printer Publishers. . ibid.

            2. Williamson O. E.. 1975. . Markets and Hierarchies: Analysis and Antitrust Implications . , New York : : Free Press. .

            3. See R. Mansell, ‘Rethinking the telecommunication infrastructure: the new ‘black box’ ’, Research Policy, forthcoming 1990.

            4. See OECD, Telecommunication Network-based Services: Policy Implications, ICCP Report No. 18, Paris, 1989.

            5. Revenues from telecommunication services exceeded US$500 billion in 1989. Equipment sales generated approximately US$125billion in 1989. The market for communication, information and processing services using networks in Europe was valued at US$1.3 billion by 1993. See ‘A revolution in global data transmission’, Financial Times, 18 July 1989.

            6. For a description of the ‘intelligent network’ concept see, A. Maher, ‘Intelligent networks — a European standard?’ Telecommunications, Int. Ed., February 1989.

            7. Quoted from a workshop attended by representatives of the UK telecommunication industry, ‘Delivering Connectivity: The Intelligent Network’, SPRU, University of Sussex, October 1988.

            8. See K. Morgan and A. Davies, ‘Seeking advantage from telecommunications: regulatory innovation and corporate information networks in the UK’, paper presented to OECD Seminar on Information Networks and Business Strategies, Paris, October 1989.

            9. Teece D.. 1988. . “Joint ventures and collaborative arrangements in the telecommunications equipment industry. ”. In International Collaborative Ventures in US Manufacturing . , Edited by: Mowery D.. Cambridge , MA : : Ballinger. .

            10. See H. Small, ‘The single market: opportunities and threats for European telcos’, Telecommunications, Int. Ed., May 1989. For an excellent academic treatment of alliance formation, see C. Ciborra, ‘Alliances as learning experiments: cooperation, competition and change in the high-tech industries’, paper presented to 8th International Telecommunication Society Conference, Venice, March 1990.

            11. International Telecommunication Union, ‘Telecommunication Regulations’, Final Acts, Melbourne, December 1988.

            12. International Telecommunication Union, ‘The changing telecommunication environment: policy considerations for the members of the ITU’, Report of the Advisory Group on Telecommunication Policy, Geneva, February 1989.

            13. International Telecommunication Union, Final Acts of the Plenipotentiary Conference, Nice, 1989, Constitution, Article 4.

            14. Space limitations prevent full citation of the relevant Articles and Opinions. The relevant texts are paraphrased here. The reader is referred to ITU, Final Acts of the World Administrative Telegraph and Telephone Conference (WATTC-88), Melbourne, 1988, ‘International Telecommunication Regulations, Article 1 and Resolution No. PL/2; Article 9 and Opinion PL/A.

            15. GATT, Ministerial declaration on the Uruguay Round’, GATT Newsletter, October 1986.

            16. A. Reid, ‘Trade in telecommunication services: the current institutional framework and the potential for change’, OECD/ICCP(85)12, Paris, 1985. Bilateral agreements refer here to those between PTOs (administrations) to offer jointly provided services such as international long distance voice telephony.

            17. See OECD, Telecommunication Net work-based Services: Policy Implications, ICCP Report No. 18, Paris, 1989. The first draft of this report was produced in 1987 as OECD/ICCP(87)5 (1st Revision).

            18. ICCP documents used the TNS term in documents concerning the applicability of trade concepts to telecommunications. See for excample, OECD, ‘Trade in telecommunication Network-based Services’, DSTI/ICCP/TISP/88.2 (1st Revision), Paris, November 1988. Subsequently published as Trade in Information, Computer and Communication Services, OECD, ICCP Report No. 21, Paris, 1990. In May 1989, the GATT Secretariat, Multilateral Trade Negotiations, MTN.GNS/W/52, 19 May, UR-89-0062, document used the term as one of serveral for background consideration at the June 1989 meeting of the GNS.

            19. CEC, Completing the Internal Market: A White Paper from the Commission to the European Council, Luxembourg, 1985; P Cecchini et at. 1992 The European Challenge, Gower, London, 1988.

            20. J. Pelkmans, Completing the internal market for industrial products, CEC, Luxembourg, 1986.

            21. See ‘Single European Act’, Official Journal of the European Communities, No. L169, 29/6/1987.

            22. CEC, Green Paper on the Development of the Common Market for Telecommunications Services and Equipment, Brussels, COM(87) 290 final, 1987.

            23. See Sir R. Clarke and G. Charpentier, Les achats publics dans le Marche Commun, unpublished report to the CEC, 1976, P. Holmes, Real and imaginary barriers to trade within the EEC and economies of scale, University of Sussex, International Economics Research Centre, Discussion Paper No. 87/47, 1987.

            24. The Treaty of Rome, Article 113, para. 2, states that “The Commission shall submit proposals to the Council for Implementing the Common Commercial Policy”.

            25. Standards setting activities for the EC were transferred to the European Telecommunications Standards Institute in 1989 as part of the CEC's programme of implementing its proposals for the creation of an internal market for telecommunications.

            26. CEC, Green Paper, op. cit., pp. 66-711, 121-29, 179-183.

            27. CEC, Commission Directive on Competition in the Market for Terminal Equipment, Brussells, April 1988. Texts of Directives on Services and Open Network Provision have also been issued.

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