Skip to main content

Introduction

  • Chapter
  • First Online:
Universal Service in WTO and EU law

Part of the book series: Legal Issues of Services of General Interest ((LEGAL))

  • 586 Accesses

Abstract

This theoretical chapter explores the general necessity for the regulation of telecommunications services markets with a focus on the universal service instrument. It argues that telecommunications has always been a service of public interest and this status has required some special regulatory arrangements. Testing this assumption, first, the notion of services of public interest is investigated, in particular what this public interest consists of, as well as what kinds of regulation have been employed in relation to such services and why. To explain this last point, the theory of the social embeddedness of markets by Karl Polanyi is employed. Second, the theoretical framework of services of public interest to telecommunications services is applied in order to establish whether they can indeed be classified as such. Third, the nature and special features of telecommunications services are described that are useful for understanding their uniqueness among other commercial services, and to justify particularities of their provision and regulation. This allows one to present telecommunications services and the specifics of their regulation in terms of Polanyian theory.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    “Social regulation” is understood as the regulation of a market in order to protect and promote social welfare and public interest.

  2. 2.

    See Polanyi 2001, Chap. 5; see also Sect. 2.1.1.3 of this book.

  3. 3.

    See Aronson and Cowley 1988; Compaine 1986; Hills 1989; Horwitz 1997; Noam 1987; Stone 1991.

  4. 4.

    For the WTO see Allen 1998; Blouin 2000; Bronckers 2000; Bronckers and Larouche 1997; Drake and Noam 1997; Fredebeul-Krein and Freytag 1997 and 1999; Langenfurth 2000; McLarty 1999; Satola 1997; Tarjanne 1999; for the EU see Bauer 1999; Hart 1998; Hulsink 1999; Klein 2000; Sandholtz 1993, 1998; Schmidt 1998; Schweitzer 2001/2002; Scott 2000; Ungerer 2001; Woodrow and Sauvé 1994.

  5. 5.

    For example, the market failure explanation in Bozemen 2002; Gómez Barroso and Martínez 2003; public good qualities of telecommunications, Gómez Barroso and Martínez 2004; public interest theory, Birke 2009; Blackman 2007; Krajewski 2011.

  6. 6.

    Milgrom 1996; Nett 1998; Wallsten 2008; Weller 1999.

  7. 7.

    Choné et al. 2002; Castelli et al. 2000; Gasman 1998; Jaag and Trinkner 2009; Levin 2010; Peha 1999.

  8. 8.

    Bohlin and Teppayayon 2009; Burkart 2007; Feijóo González et al. 2005; Goggin 2008; Pau 2009.

  9. 9.

    Alampay 2006; Burgelman 2000; Falch and Henten 2009; Kirsch and von Hirschhausen 2008; Lie 2007; Mueller 1997; Sawhney and Jayakar 2005, 2007; Xavier 1997, 2008.

References

  • Alampay EA (2006) Beyond access to ICTs: measuring capabilities in the information society. Int J Educ Dev Using Inf Commun Technol 2:4–22

    Google Scholar 

  • Allen D (1998) The WTO telecommunications agreements: policy between trade and networks. Paper for the twelfth biennial conference, the international Telecommunications Society, Stockholm, Sweden. http://davidallen.org/papers/WTO.pdf

  • Aronson JD, Cowhey PF (1988) When countries talk: international trade in telecommunications services. Ballinger, Cambridge

    Google Scholar 

  • Bauer J (1999) Universal service in the European Union. Gov Inf Q 16:329–343

    Article  Google Scholar 

  • Birke F (2009) Zum Wandel des Universaldienstes in der Telekommunikation: Eine netzökonomische Analyse. Baden-Baden, Nomos

    Book  Google Scholar 

  • Blackman CR (2007) The public interest and the global, future telecommunications landscape. Info 9:6–16

    Article  Google Scholar 

  • Blouin C (2000) The WTO agreement on basic telecommunications. Telecommun Policy 24:135–142

    Article  Google Scholar 

  • Bohlin E, Teppayayon O (2009) Broadband universal service: a future path for Europe? Int J Manage Netw Econ 1:275–298

    Article  Google Scholar 

  • Bozeman B (2002) Public-value failure: when efficient markets may not do. Public Admin Rev 62:145–161

    Article  Google Scholar 

  • Bronckers M (2000) The WTO reference paper on telecommunications: a model for WTO competition law? In: Bronckers M, Quick R (eds) New directions in international economic law. Kluwer Law International, London, pp 371–389

    Google Scholar 

  • Bronckers M, Larouche P (1997) Telecommunications services and the World Trade Organization. J World Trade 31:4–48

    Google Scholar 

  • Burgelman J-C (2000) Regulating access in the information society: the need for rethinking public and universal service. New Media Soc 2:51–66

    Article  Google Scholar 

  • Burkart P (2007) Moving targets: introducing mobility into universal service obligations. Telecommun Policy 31:164–178

    Article  Google Scholar 

  • Castelli F, Gómez Barroso JL, Leporelli C (2000) Global universal service and international settlement reform. Vierteljahreshefte zur Wirtschaftsforschung 69:679–694

    Article  Google Scholar 

  • Choné P, Flochel L, Perrot A (2002) Allocating and funding universal service obligations in a competitive market. Int J Ind Organ 1:1247–1276

    Article  Google Scholar 

  • Compaine BM (1986) Information gaps: myth or reality? Telecommun Policy, pp 5–12

    Google Scholar 

  • Drake WJ, Noam EM (1997) The WTO deal on basic telecommunications: Big Bang or Little Whimper? Telecommun Policy 21:799–818

    Article  Google Scholar 

  • Falch M, Henten A (2009) Achieving universal access to broadband. Inf Econ 13:166–174

    Google Scholar 

  • Feijóo González C, Gómez Barroso JL, Ramos Villaverde S, Rojo Alonso D (2005) Public policies for broadband development in the European Union: new trends for universalisation of services. Conference paper for “The Future of Broadband: Wired and Wireless?” Gainesville, USA. http://bear.cba.ufl.edu/centers/purc/DOCS/PRESENTATIONS/events/0205%20LBS/papers/GomezBarroso-PoliciesBroadbanddevelopmentinEU.Trendsforuniversalization-ConferenceFlorida_Fe.pdf

  • Fredebeul-Krein M, Freytag A (1997) Telecommunications and WTO discipline: an assessment of the WTO agreement on telecommunication services. Telecommun Policy 21:477–491

    Article  Google Scholar 

  • Fredebeul-Krein M, Freytag A (1999) The case for a more binding WTO agreement on regulatory principles in telecommunication markets. Telecommun Policy 23:625–644

    Article  Google Scholar 

  • Gasman L (1998) Universal service: the new telecommunications entitlements and taxes. Policy Analysis No. 310. http://www.cato.org/publications/policy-analysis/universal-service-new-telecommunications-entitlements-taxes

  • Goggin G (2008) The mobile turn in universal service: prosaic lessons and new ideals. Info 10:45–58

    Google Scholar 

  • Gómez Barroso JL, Pérez Martínez J (2003) Assessing market failures in advanced telecommunications services: universal service categories. In: Paper presented at ITS 14th European conference, Helsinki, Finland. http://userpage.fu-berlin.de/~jmueller/its/conf/helsinki03/papers/UnivService_Categories.pdf

  • Gómez Barroso JL, Pérez Martínez J (2004) Should advanced telecommunication services be considered a global public good? In: Paper presented at international conference “ICTs and inequalities: the digital divide”, Paris. http://irene.asso.free.fr/digitaldivides/papers/barroso2.doc

  • Hart T (1998) A dynamic universal service for a heterogeneous European Union. Telecommun Policy 22:839–852

    Article  Google Scholar 

  • Hills J (1989) Universal service: Liberalization and privatization of telecommunications. Telecommun Policy 129–144

    Google Scholar 

  • Horwitz RB (1997) Telecommunications and their deregulation: an introduction. In: The irony of regulatory reform: the deregulation of American telecommunications. Oxford University Press, New York (1989, reprinted in: Golding P, Murdock G (eds) The political economy of media. Edward Elgar, Cheltenham, pp 365–381)

    Google Scholar 

  • Hulsink W (1999) Privatisation and liberalisation in European telecommunications: comparing Britain, the Netherlands and France. Routledge, London

    Book  Google Scholar 

  • Jaag C, Trinkner U (2009) Tendering universal service obligations in liberalized network industries. Swiss economics working paper 0013. http://www.swiss-economics.ch/RePEc/files/0013JaagTrinkner.pdf

  • Kirsch F, von Hirschhausen C (2008) Regulation of NGN: structural separation, access regulation, or no regulation at all? MPRA Paper No. 8822. http://mpra.ub.uni-muenchen.de/8822

  • Klein C (2000) Die Liberalisierung des Telekommunikationsmarktes in der Europäischen Union: unter besonderer Berücksichtigung der Universaldienstgewährleistung in Frankreich und Deutschland. Hamburg, Kovač

    Google Scholar 

  • Krajewski M (2011) Grundstrukturen des Rechts öffentlicher Dienstleistungen. Springer, Berlin

    Book  Google Scholar 

  • Langenfurth M (2000) Der globale Telekommunikationsmarkt: Telekommunikationsdienste als international handelbare Dienstleistung. Peter Lang GmbH, Frankfurt am Main

    Google Scholar 

  • Levin SL (2010) Universal service and targeted support in a competitive telecommunications environment. Telecommun Policy 34:92–97

    Article  Google Scholar 

  • Lie E (2007) Next generation networks and universal access: the challenges ahead. In: Global symposium for regulators (GSR) discussion paper. http://www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR07/discussion_papers/Eric_Lie_universal_service.pdf

  • McLarty TL (1999) Liberalized telecommunications trade in the WTO: implications for universal service policy. Fed Commun Law J 51:1–59

    Google Scholar 

  • Milgrom P (1996) Procuring universal service: putting auction theory to work. Nobel prize memorial lecture at the Royal Swedish Academy of Sciences. http://www.market-design.com/files/milgrom-procuring-universal-service.pdf

  • Mueller M (1997) Universal service: competition, Interconnection and monopoly in the making of the American telephone system. MIT, Cambridge

    Google Scholar 

  • Nett L (1998) Auctions: an alternative approach to allocate universal service obligations. Telecommun Policy 22:661–669

    Article  Google Scholar 

  • Noam EM (1987) The public telecommunications network: a concept in transition. J Commun 37:30–48

    Article  Google Scholar 

  • Pau L-F (2009) Enabling mobile communications for the needy: affordability methodology, and approaches to requalify universal SERVICE measures. Inf Econ 13:128–135

    Google Scholar 

  • Peha JM (1999) Tradable universal service obligations. Telecommun Policy 23:363–374

    Article  Google Scholar 

  • Polanyi K (2001) The great transformation: the political and economic origins of our time, 2nd edn. Beacon Press, Boston

    Google Scholar 

  • Sandholtz W (1993) Institutions and collective action: the new telecommunications in Western Europe. World Polit 45:242–270

    Article  Google Scholar 

  • Sandholtz W (1998) The emergence of a supranational telecommunications regime. In: Sandholtz W, Stone Sweet A (eds) European integration and supranational governance. Oxford University Press, New York, pp 134–163

    Google Scholar 

  • Satola D (1997) Legal and regulatory implications of implementing WTO telecommunication commitments in developing markets. http://siteresources.worldbank.org/INTLAWJUSTICE/Resources/WTOTelecomDevelopmentMarkets.pdf

  • Sawhney H, Jayakar KP (2005) Universal access: precedents, prevarications and progress. In: Paper presented at the 33rd annual telecommunications Policy research conference (TPRC). http://www.edtechpolicy.org/AAASGW/Session11/sawhney_jayakar_2005.pdf

  • Sawhney H, Jayakar KP (2007) Universal access. Ann Rev Inf Sci Technol 41:159–221

    Article  Google Scholar 

  • Schmidt SK (1998) Liberalisierung in Europa—Die Rolle der Europäischen Kom-mission. Frankfurt/Main, Campus

    Google Scholar 

  • Schweitzer H (2001/2002) Daseinsvorsorge, “service public”, Universaldienst: Art. 86 Abs. 2 EG-Vertrag und die Liberalisierung in den Sektoren Telekommunikation, Energie und Post, Baden-Baden, Nomos

    Google Scholar 

  • Scott C (2000) Services of general interest in EC law: matching values to regulatory technique in the public and privatised sectors. Eur Law J 6:310–325

    Article  Google Scholar 

  • Stone A (1991) Public service liberalism: telecommunications and transitions in public policy. Princeton University Press, Princeton

    Book  Google Scholar 

  • Tarjanne P (1999) Preparing for the next revolution in telecommunications: implementing the WTO agreement. Telecommun Policy 23:51–63

    Article  Google Scholar 

  • Ungerer H (2001) Use of EC competition rules in the liberalisation of the European Union’s telecommunications sector. Assessment of past experience and conclusions in other utility sectors, COMP/C/2/HU/rdu, Brussels

    Google Scholar 

  • Wallsten S (2008) Reverse auctions and universal telecommunications service: lessons from global experience. Fed Commun Law J 61:373–394

    Google Scholar 

  • Weller D (1999) Auctions for universal service obligations. Telecommun Policy 23:645–674

    Article  Google Scholar 

  • Woodrow BR, Sauvé P (1994) Trade in telecommunications services: the European community and the Uruguay Round services trade negotiations. In: Steinfield C, Bauer J, Caby L (eds) Telecommunications in transition: policies, services and technologies in the European community. SAGE, Thousand Oaks, pp 97–117

    Google Scholar 

  • Xavier P (1997) Universal service and public access in the networked society. Telecommun Policy 21:829–843

    Article  Google Scholar 

  • Xavier P (2008) From universal service to universal network access? Info 10:20–32

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Olga Batura .

Rights and permissions

Reprints and permissions

Copyright information

© 2016 T.M.C. Asser Press and the author

About this chapter

Cite this chapter

Batura, O. (2016). Introduction. In: Universal Service in WTO and EU law. Legal Issues of Services of General Interest. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-94-6265-081-7_1

Download citation

  • DOI: https://doi.org/10.1007/978-94-6265-081-7_1

  • Published:

  • Publisher Name: T.M.C. Asser Press, The Hague

  • Print ISBN: 978-94-6265-080-0

  • Online ISBN: 978-94-6265-081-7

  • eBook Packages: Law and CriminologyLaw and Criminology (R0)

Publish with us

Policies and ethics

Societies and partnerships