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Network Industries and Social WelfareThe Experiment that Reshuffled European Utilities$
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Massimo Florio

Print publication date: 2013

Print ISBN-13: 9780199674855

Published to Oxford Scholarship Online: September 2013

DOI: 10.1093/acprof:oso/9780199674855.001.0001

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Testing the paradigm: Telephone services

Testing the paradigm: Telephone services

(p.96) (p.97) 4 Testing the paradigm: Telephone services
Network Industries and Social Welfare

Massimo Florio

Oxford University Press

Empirical testing of correlations between consumer price changes and reform indicators is performed in each of the three key industries. Chapter 4 deals with the effect of reforms on residential prices of fixed telephony. This service was the starting point for privatization policies worldwide, following the divestiture of British Telecom in 1984. After a brief overview of technological change and of policy reforms in the EU, the market structure in selected countries is discussed. The incumbents are found to still retain s considerable market share. Then price variability across the EU-15 is discussed, and earlier empirical literature is reviewed. Empirical models find some evidence of a beneficial impact of market opening on some prices, but limited evidence of the benefits of privatization.

Keywords:   telephony, British Telecom, residential price, technological change, market share

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