Productivity, Growth and Jobs: How Telecoms Regulation Can Support European Businesses

Background

In June 2007 BT released a major economic study, examining how multinational enterprises source and use communications services. The study concluded that uneven and ineffective application of the regulatory framework was holding back business efficiency, competitiveness and economic growth in the EU. Information and Communications Technologies (ICT) have become increasingly central to competitive success in the global economy, however the current telecoms regulatory regime is not supporting the international competitiveness of EU businesses.

A new study

This latest study, "Productivity, Growth and Jobs: How Telecoms Regulation Can Support European Businesses", assesses the economic benefits that would arise from better pan-European communication services (PECS). The findings are based on in-depth discussions with five EU-based multinational enterprises (MNEs) and a survey of the in-country managers of one of Europe’s leading PECS providers, BT.

The report highlights the importance of "ubiquitous access"; the competitive supply conditions for pan-European communications services providers. Businesses would benefit from competitive telecommunications in a variety of ways: increased market opening in telecommunications services and the corresponding gains from trade, an increase in the rate of productivity growth coming from improved connectivity, and potential benefits to the way businesses organise their processes and get products to market. This report argues that, together with complementary measures, ubiquitous access would generate benefits with a net present value of between €1100 billion and €1300 billion over the next 20 years

The report concludes that if a more developed and competitive market in access network services existed, multinational enterprises and their suppliers would be able to make significant innovations in their ways of working and achieve substantial gains in productivity and product and service development. Moreover, achievement of these gains would be accompanied by a reduction in prices and expansion of output and trade in communications services, thereby contributing to the development of the internal market. Improved connectivity could also bring benefits in terms of improved economic stability such that economies would be less likely to experience sharp fluctuations in output.

Download the full report PDF format [862Kb]
Download the press release PDF format [49Kb]

For further information please contact Claudia Breure