EU Telecommunications Policy Case Study Example | Topics and Well Written Essays - 2500 words

EU Telecommunications Policy - Case Study Example Consequently, the sphere of telecommunications was regarded to be the natural monopoly of the state while administrations and enterprises that provided communication services traditionally belonged to the public sector. The only exceptions were Spain and Italy, where mixed public-private or fully private companies offered telecommunications services (Noam 1992). However, public monopoly over the telecommunications sector started to dissolve gradually from the early 1980s on. During only one decade from 1980 to the early 1990s, the majority of telecommunication monopolies in the countries of continental Europe transformed (though not fully) into competitive markets. This process was paralleled by the transformation of bodies and enterprises formerly controlled almost exclusively by governments into private organizations (Schneider 2000). Although the transformation had multiple causalities that involved a broad range of technical, social, political and other contributing factors, the key driving force highlighted by the researchers was the drive for liberalization and privatization that became the central tendency in Europe in the late 1980s (Noame 1992). A series of decisions and directives issued by the European Commission and the Council of Ministers called for transformation of the European market in general and telecommunications sector in particular in terms of market regulations, standardization, and procurement rules. These decisions and directives have "ultimately directed toward a near-total liberalization of all kinds of telecommunications networks and services within the European Union (EU) in the year 1998" (Schneider 2000, p.61) and laid the foundation for the current strategy applied by the EU members to regulate the telecommunications sector. The EU Telecommunications Policy: Origins and Current Situation The beginning of serious structural reforms in the telecommunications sector of the European Union can be traced back to the late 1970s with the current telecommunications policy being the result of gradual evolution those days until now. These three decades can be divided into several stages characterized by specific contents, developments and implementation patterns. 1977-1986: Early Reforms The need to address the issues related to the telecommunications sector in the European Community was first highlighted in 1977, but it was not until 1980 that the European Council received a proposal clearly with clear statement of such need. However, the amount of telecom issues raised by the document was rather limited: the essence of the proposal was harmonization of the development of new services while monopoly of the state and other essential problems remained unnoticed (Alabau 2006). As a result, the action plan that ensued from the proposal was largely industrial in its nature (envisaged only opening up the handset market) and did nothing to reduce the huge influence of state monopolies in the telecommunications sector. 1987-1998: Emergence of the First Telecommunications Regulations The Single European Act of 1986 enabled the Commission to exercise more control