engleski

Assymetric competition in network services provision in the telecommunications subsystems

The majority of network services provision (postal and telecommunications services, rail transport, air transport, etc.) were traditionally considered as natural monopoly. New scenario of the liberalised national market and “Open Network Provision” require precise and concrete economic evaluation before implementation itself. This paper considers the methodology for the application of natural monopoly with the concept of cost sub-additivity. It is pointed out that the scale and scope economies, associated with “plant (network) sub-additivity” is not sufficient to justify the monopoly in every service provision in the traffic system and its subsystems. The paper considers and analyses the possible market configuration with various degrees of competition for telecommunication subsystem. The asymmetric competition in the telecommunication subsystem by means of the dominant organisation model has been analysed.

Network services; telecommunications; market configuration

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