Some aspects of telecommunications regulation: the public interest and the structure of telecommunications markets

The main justifications for government interventions in market mechanisms have always been based on the doctrine of market failures and the public interest concept, and it is commonly believed that competition failure is one of the instances of inability of the market to serve social needs. Meanwhile, the monopolistic landscape of the telecom industry cannot be considered a natural outcome of market forces, but it is a direct result of regulatory efforts. Telecommunications markets have always been highly regulated, while the competitive order has been an alternative to regulation. The central role in regulation of telecommunications markets has been played by the universal service idea, which appeared in the US in the beginning of the 20s century in response to the “dual service” competition, and then, this doctrine has evolved and found its place in a new form in the digital economy era, and continues to influence regulatory efforts in the industry. The article analyses the process of formation of the modern structure of the infocommunications industry and the role of universal service in the concentrated landscape of telecommunications markets.