Competition in Telecoms—Implications for Universal Service and Employment

Industry and Energy Department ▪ Vice Presidency for Finance and Private Sector Development Despite the huge opportunities opening up from new technology, competitive markets, and the globalization of production and trade, governments in many emerging economies have been reluctant to introduce much competition in their domestic telecommunications markets. Services are largely restricted to basic voice provided by a monopoly carrier, and this basic telephony is still out of reach for most of the population. The reluctance to open monopoly markets to competition arises from fears about what it means for universal service, employment, and the viability of the incumbent national carrier. This Note argues that these concerns are misplaced. The arrival of new technologies and new services means that the real issue for government is not whether to liberalize but when and how.