Facility-Based Competition in Europe - the Case For A Separate Satellite System
Title: Facility-Based Competition in Europe - the Case For A Separate Satellite System
Author: STEHMANN, Oliver
Citation: Telecommunications Policy, 1992, 16, 2, 135-146
Technological progress in both the space and the Earth segments has made it feasible to run satellite networks completely independent of terrestrial systems. Given its intrinsic advantages, especially in Europe, a separate satellite network could lead to efficiency gains resulting from facility-based competition. Moreover, a satellite entrant may induce the terrestrial network operators to compete directly against each other. It may therefore offer a solution to the problem of network fragmentation in Europe. Moreover, its insensitivity to distance implies that a satellite competitor will foster universal service. It is therefore argued that Eutelsat, the main player in the European satellite market, should be separated from the national telecommunications organizations.
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