chapter  9
24 Pages

The Anatomy and Regulatory Repercussions of Global Telecommunications Strategies

ByJohannes M. Bauer

Several factors are commonly identified as contributing to this reorganization (Hausman, 1993; J ohansson, 1994). Most prominently among them ranks technological change, supporting the deveIopment of a wide array of innovative and speciaJized equipment, services, and applications, for which the monopoly environment did not seem to provide a conducive framework. Multinational and globally operating enterprises, whose emergence was facilitated by previous advances in communication technologies, in turn demand customized and specialized global teIecommunications services provided by one rather than a multitude of vendors, requiring aglobaI presence of carriers to retain large customers. Also, constrained by emerging domestic competition and regulatory restrictions, large equipment and service providers started to reach for profitable investment projects abroad. Last, but not least, the traditional system of service provision through state-owned monopolies frequently suffered from weak performance and did not meet the expectations and needs of their increasingly diverse customer base. As a response, many countries adopted policies of privatization and liberalization of former state-owned monopoJies and began to open national teIecommunications markets for foreign competitors.2