Regulation - Case 6

Critical review of the EU Regulatory Framework for eCommunications

E.CA commented on the European Commission's review of the framework that regulates the telecommunications industry in Europe, focussing on the relationship between (de-)regulation and investment in the telecommunications sector. While the Commission's review - based on three empirical studies - found a positive relationship between (de-) regulation and investment, we came to a more cautious interpretation of the empirical results as the cited studies are affected by severe data limitations, a limited time dimension, problems of endogeneity and aggregation problems. In line with this, we singled out open questions and put forward recommendations on how to find robust empirical answers.