Fallacies of Global Unregulated Markets: The Case of Telecommunications

The last thirty years have been marked by extraordinary transformations having radical impacts on the world economy and the post-war economic order. These transformations have been linked to the process of globalization and its effects on the structures of the world economy, international relations and international organisations. One of the most important changes has been the tremendous favour given to competition as the main organizational principle of social and economic activities in that states have unilaterally and collectively embraced deregulation, privatisation and liberalisation as the main driving force behind economic policies and international cooperation. A new global economic order characterized by a radical move towards markets has emerged and engaged private actors and states in a new global oligopolistic rivalry. This is particularly significant in some sectors, most notably the telecommunications (telecom) sector. This chapter will review the changes that have led to the emergence of global unregulated telecommunications markets, explore the fallacies of a global unregulated telecommunications regime and put into perspective emerging regulation challenges.