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By Prof. Dr. Paul J. J. Welfens, Prof. George Yarrow, Prof. Dr. Ruslan Grinberg (auth.), Prof. Dr. Paul J. J. Welfens, Prof. George Yarrow, Prof. Dr. Ruslan Grinberg, Dipl.-Vw. Cornelius Graack (eds.)

Competition in community industries faces specific difficulties that are analyzed from either a theoretical and coverage viewpoint. problems with vertical integration, deregulation and privatization are lined. whereas pageant and privatization are quickly unfolding in telecommunications in Western and japanese Europe, power and railway transportation symbolize sectors of extra sluggish liberalization. the various marketplace features of telecommunications, strength and transportation bring up consistency difficulties within the fields of deregulation, funding techniques and internationalization. whereas transformation regulations create possibilities for liberalization in jap Europe and Russia the latter indicates serious difficulties in finishing monopoly and country possession. community industries should be topic to pageant and promise significant funding possibilities plus buyer benefits.

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Additional info for Towards Competition in Network Industries: Telecommunications, Energy and Transportation in Europe and Russia

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4. 5. positive income and employment effects as the infrastructure is built; increase in the economy's overall fixed capital stock raising the productivity of complementary factors and potential output; the provision of services which are crucial inputs for many sectors; indirect pro-competitive effects as infrastructure expansion increases the size of markets, provided that there is no recurrent congestion; the provision of services by competing service providers requiring control systems necessary for optimal hazard-free capacity utilization - control systems can be organized by the government as in the case of police services in road traffic, by private monopolist as in the case of air transportation or by vertical integration as in telecoms, electricity and railway systems.

5 bill. 8% of Community GDP. The top of the league was the Italian railway system which accounted for a debt load equivalent to 5% of the Italian GDP. In the Visegrad countries there are plans to modernize the railway network segments that are leading to EU countries. In Hungary the government-owned MAV has launched a broad modernisation project whose financing, however, might suffer from strongly declining freight revenues in transportation to Russia (after the August 1998 crises). MAV Rt has also started to diversify into communications by acquiring a minority stake in the newcomer PanTel (which is controlled by the Dutch KPN with its 49% stake).

Mobile telephony is, possibly except for advanced DECT concepts, no full alternative to fixed network transmission, especially as regards reliable high quality data transmission which is important for video conferencing and some internet applications. Cable TV networks are a full substitute for all kinds of fixed network telephony, and marginal costs of providing telephony are small as examples from the UK (with many cable TV networks offering telephony), Belgium (Telenet starting trial services in Flanders in 1997) and Australia (newcomer Optus partly relying on a cable TV network) show.

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