Regulation and Investment in Telecommunications: Uruguay Case Study

Series
Estudios TRE
Publication date
2008
Language
Español
Publication type
Paper
Author
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Gómez, Gustavo
Rivoir, Ana Laura
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The study clearly shows that the regulatory environment is perceived differently in the two telecom sectors considered. While for fixed line telephony most of the regulation is perceived as "inefficient" or "not very good", for mobile telephony perceptions are broadly favourable. The difference in perception is due to the monopolistic nature of the majority of the fixed line sector (with competition existing only for international calls) and the inertia of a strong State company facing a regulator that still suffers from institutional weaknesses, and of the absence of clear and coherent government policies in the telecommunications area.

Original Title: Regulación e Inversión en Telecomunicaciones: estudio de caso para Uruguay

Abstract

This report presents an assesment of the perceptions regarding mobile and fixed telephony in Uruguay. Its outcomes result from the application of a methodoligical framework developed by LIRNEasia.
 
Moreover, , in order to contextualize the findings, this paper analyzes and provides data on the sector's state of affairs for each of the six dimensions proposed by the methodology:
  1. Market entry,
  2. Access to scarce resources,
  3. Interconnection,
  4. Tariff regulation,
  5. Regulation of anti-competitive practices,
  6. Universal service obligations (USO). 
The assessment was based on the contribution of 43 individuals representative of the three categories considered for this study: actors directly concerned with the telecommunications’ sector regulations; actors that analyse the sector with a broader interest; actors interested in improving the sector in order to assist people.
 
Answers were to use a 1 to 5 scale, where “1” stands for a percpetion of “very inefficient” and “5” means that the regulatory environment is perceived as “very efficient”. 

Findings show differences on the perceptions regarding the two telecommunications sectors studied. While for fixed telephony most dimensions of national regulation were assessed as “inefficient” or “regular”, mobile telephony was considered very positively, and the assessment of its regulatory environment exceeds the intermediate value, with some dimensions considered  as “very efficient”.

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