- Email: [email protected]
policy series: Communication outlook 1993 soft cover (OECD) 156p FF180
The Australian Information Industry Association (ALIA) was vocal in its concern over this provision. The capping option for exceptional circumstances was introduced at a late stage in the drafting process in an attempt to overcome the impasse. Much will depend on how "high risk" transactions are identified. If
the principal criterion is price, the approach may overlook the fact that the degree of "risk" is often greater in a situation where a low cost item is critical to high cost transactions. Gordon Hughes LL.M, Ph.D, Research Correspondent Lander & Rogers, solicitors, Melbourne, Australia
BOOK REVIEW COMM UNICATIONS OUTLOOK
1993 Information Computer Communications/Policy Series: iiiiiii Communications Outlook 1993 Soft cover (OECD) ~i~:~! 156p FF180, £32, US$42, DM74; ISBN 92-64-13841-2. i~i~i:i The 1993 Communications Outlook is the second edition of ill~ the "OECD Communications Outlook" series, updating and ~ii~i:i expanding the first edition published in November 1990. The report provides a range of performance indicators for ~::: public telecommunications services in the 24 Member countries of the OECD. It assesses the current position, iiiii! analyses the development of the telecommunications i:~ services industry since 1980, and alerts policy-makers to iiiill likely future trends. The information presented here is timely because it provides an opportunity for telecommunications managers and policy-makers to reflect on the progress made during the 1980s - a decade of unparalleled technological and regulatory change in the communications field. By the start of 1991, the telecommunications sector was larger, more profitable and more diversified than ever before, both in absolute and relative terms. Furthermore, following an upturn in public telecommunications investment in the last few years, the prospects for future growth seem bright indeed. Underlying this growth in the telecommunications sector over the last decade has been technological change, notably the shift from analogue to digital switching and transmission, which has opened a whole new range of i! service options. Indeed, considering that the telecommunications industry is now more than 100 years old and must be considered a mature industry, the shift to digital technology appears to have introduced a new dynamism. The impact of technological change has been so strong that it can obscure the more subtle, but no less significant, changes which have been brought about through deregulation and the introduction of competition. Indeed, all OECD countries have experienced growth in the telecommunications sectors so that all regulatory bodies can claim, with justification, that their particular blend of policies has been successful. It is only by comparing the experience of different countries, the performance of different Public Telecommunications Operators (PTOs) and by examining different rates of growth, that it is possible to infer conclusions about the success of particular policies. The imprint of competition can be found throughout the pages of this report even though genuinely open market entry is still fairly rare. Most OECD countries now permit
competition n te ecommunications equipment markets and the provision of value-added network services (VANS). Twothirds of OECD countr es a o w competition both in the provision of services and in the construction of nfrastructures for mobile commun cations. A grow ng number of OECD countries, eight at present, also allow some degree of competition in fixed link, public switched telephone networks (PSTNs) for voice telephony and fax. The benefits of competition have not yet been fully realised with regard to the price of telecommunications services. For business services, such as leased lines and X.25 data communications, it is clear that competition has exercised a downward pull on prices. For international call charges too, even though most PTOs still charge prices that are demonstrably too high in relation to costs, there is some evidence that in the few countries that allow competition (including Australia, Japan, the UK and the USA) call charges are somewhat cheaper than in their monopolistic calling partners. But for mobile services, competition has stimulated such high growth rates that operators do not yet appear to feel the need to engage in price-cutting to attract new subscribers. Most of all, for fixed-link voice services, and especially for residential services, the results of allowing competition have thus far been disappointing. The 1990 Communications Outlook concludes that "the pace of regulatory change has been uneven". This is still true despite the widespread acceptance of pro-competitive policies int he OECD area. Perhaps the conclusion to this Communications Outlook should be that "the benefits of competition are uneven". While business services have undoubtedly benefitted from the impact of competition, little progress has been made in PSTN services, and services to residential consumers remain largely untouched. The challenge to telecommunications managers and policymakers during the 1990s must therefore be to extend the benefits of competition, both geographically into those areas of continental Europe which are still bastions of the "natural monopoly" school of thought, and sectorally into the traditional business of PTOs, namely basic voice telephony. Only then will the public at large give the same welcome as the business sector to the introduction of competition in telecommunications.Available from OECD Publications, 2 rue Andr~ Pascal, 75775, Paris, Cedex 16, France or from local OECD Publications Distributors.
202
iiiiii iiiii ii~i~ iiiii ii~ i~i~i~ !ii
i!il
i
iii!i iiiiiji iiiIil i~i!~i~ iili:~
:~~i :i~ ii
the principal criterion is price, the approach may overlook the fact that the degree of "risk" is often greater in a situation where a low cost item is critical to high cost transactions. Gordon Hughes LL.M, Ph.D, Research Correspondent Lander & Rogers, solicitors, Melbourne, Australia
BOOK REVIEW COMM UNICATIONS OUTLOOK
1993 Information Computer Communications/Policy Series: iiiiiii Communications Outlook 1993 Soft cover (OECD) ~i~:~! 156p FF180, £32, US$42, DM74; ISBN 92-64-13841-2. i~i~i:i The 1993 Communications Outlook is the second edition of ill~ the "OECD Communications Outlook" series, updating and ~ii~i:i expanding the first edition published in November 1990. The report provides a range of performance indicators for ~::: public telecommunications services in the 24 Member countries of the OECD. It assesses the current position, iiiii! analyses the development of the telecommunications i:~ services industry since 1980, and alerts policy-makers to iiiill likely future trends. The information presented here is timely because it provides an opportunity for telecommunications managers and policy-makers to reflect on the progress made during the 1980s - a decade of unparalleled technological and regulatory change in the communications field. By the start of 1991, the telecommunications sector was larger, more profitable and more diversified than ever before, both in absolute and relative terms. Furthermore, following an upturn in public telecommunications investment in the last few years, the prospects for future growth seem bright indeed. Underlying this growth in the telecommunications sector over the last decade has been technological change, notably the shift from analogue to digital switching and transmission, which has opened a whole new range of i! service options. Indeed, considering that the telecommunications industry is now more than 100 years old and must be considered a mature industry, the shift to digital technology appears to have introduced a new dynamism. The impact of technological change has been so strong that it can obscure the more subtle, but no less significant, changes which have been brought about through deregulation and the introduction of competition. Indeed, all OECD countries have experienced growth in the telecommunications sectors so that all regulatory bodies can claim, with justification, that their particular blend of policies has been successful. It is only by comparing the experience of different countries, the performance of different Public Telecommunications Operators (PTOs) and by examining different rates of growth, that it is possible to infer conclusions about the success of particular policies. The imprint of competition can be found throughout the pages of this report even though genuinely open market entry is still fairly rare. Most OECD countries now permit
competition n te ecommunications equipment markets and the provision of value-added network services (VANS). Twothirds of OECD countr es a o w competition both in the provision of services and in the construction of nfrastructures for mobile commun cations. A grow ng number of OECD countries, eight at present, also allow some degree of competition in fixed link, public switched telephone networks (PSTNs) for voice telephony and fax. The benefits of competition have not yet been fully realised with regard to the price of telecommunications services. For business services, such as leased lines and X.25 data communications, it is clear that competition has exercised a downward pull on prices. For international call charges too, even though most PTOs still charge prices that are demonstrably too high in relation to costs, there is some evidence that in the few countries that allow competition (including Australia, Japan, the UK and the USA) call charges are somewhat cheaper than in their monopolistic calling partners. But for mobile services, competition has stimulated such high growth rates that operators do not yet appear to feel the need to engage in price-cutting to attract new subscribers. Most of all, for fixed-link voice services, and especially for residential services, the results of allowing competition have thus far been disappointing. The 1990 Communications Outlook concludes that "the pace of regulatory change has been uneven". This is still true despite the widespread acceptance of pro-competitive policies int he OECD area. Perhaps the conclusion to this Communications Outlook should be that "the benefits of competition are uneven". While business services have undoubtedly benefitted from the impact of competition, little progress has been made in PSTN services, and services to residential consumers remain largely untouched. The challenge to telecommunications managers and policymakers during the 1990s must therefore be to extend the benefits of competition, both geographically into those areas of continental Europe which are still bastions of the "natural monopoly" school of thought, and sectorally into the traditional business of PTOs, namely basic voice telephony. Only then will the public at large give the same welcome as the business sector to the introduction of competition in telecommunications.Available from OECD Publications, 2 rue Andr~ Pascal, 75775, Paris, Cedex 16, France or from local OECD Publications Distributors.
202
iiiiii iiiii ii~i~ iiiii ii~ i~i~i~ !ii
i!il
i
iii!i iiiiiji iiiIil i~i!~i~ iili:~
:~~i :i~ ii