Is telecommunications regulation efficient? An international perspective

This article addresses the efficiency of regulation policy in the telecommunications sector. First, the concepts of static and dynamic efficiency are reviewed, with the main policies used into achieve these goals identified, while distinguishing effective competition from industrial policy. Indicators are proposed that enable assessment of components of sector efficiency. These indicators are used to empirically investigate the link between regulation policy and economic performance for OECD Member Countries. The investigation is based on national differences in regulation policy and efficiency indicators. The results support the notion that asymmetrical ex ante regulation alone is not necessarily efficient, and that an ex ante policy, integrating an industrial policy, could favor dynamic efficiency.