ABSTRACT
The role of the state in telecommunications has changed. This chapter suggests that, rather than being expiring residuals of the state's former role, these activities indicate new, permanent functions within the new institutional arrangement in the telecommunications sector. Three areas, at least, have displayed an increase of public activity: the enforcement of economic efficiency, the maintenance of social efficiency, and the protection of privacy. In historical and international comparison, it has been one of the economic sectors with the highest level of state ownership and activity. In spite of all the optimism about the economic benefits of liberalisation and privatisation, skepticism prevailed regarding their social consequences. More importantly, some penetrating technological innovations have profoundly changed the political economy of telecommunications, thus eroding the preconditions of the old PTT model. The rhethoric on 'deregulation', whether political or academic, often suggests that a liberalisation and privatisation of public activities will put an end to the nightmare of regulatory problems.
