The mechanisms of infrastructure enforcement
Public infrastructure delivery has included streets, water, sewerage, energy and telecommunications. In many countries (e.g., the US and in Europe), telecommunication has been a state monopoly for a very long time. Communication and postal services were controlled by government authority and often operated by the state. After the US (1982), the UK (1984) and Japan (1985), the liberalization process in Europe began to transform the telecommunications state monopoly into a competition-based market environment. The state-owned telecommunication operators were detached from the government and took on a life on their own in liberalized markets with the goal of free, market-based competition. Europe’s state-controlled regulation and regulatory policies seek to establish a self-sustainable and competition-based market, and efficient resource allocation in order to maximize the consumer benefits to consumers. This is the case in general and within telecommunications. Economically, broadband can be considered from two perspectives: The perspective of public good (where a specific level of area-wide broadband access is guaranteed to each citizen by the state) and the competition-based perspective (of network effects and market externalities).
KeywordsPublic Engagement Infrastructure Provision Efficient Resource Allocation Universal Service Obligation Universal Service Fund
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