Tuesday, July 17, 2012
Posted by D. Daniel Sokol
J. Gregory Sidak, Criterion Economics, L.L.C., Tilburg Law & Economics Center (TILEC), Tilburg University discusses The OECD's Proposal to Cartelize Mexican Telecommunications.
ABSTRACT: The OECD’s proposed regime of asymmetric ex ante regulation for Mexico’s telecommunications marketplace would reduce competition, contrary to the OECD’s aims. The OECD’s proposals would harm Mexican consumers and force an increase in prices paid for telecommunications services. They would create a government-sanctioned price cartel among the telecommunications providers. They would reward inefficient competitors and penalize efficient carriers, all to the detriment of the consumers. Instead of relying on new layers of counterproductive or ineffective regulations, the Mexican government should remove regulatory entry barriers between video and telephone, thereby creating enduring, facilities-based competition.