The 1990s witnessed a major revolution in telecommunications policy
in North America and Europe. The electronics revolution swept the
world, and most countries began to realize that they could not
compete in many markets without a vibrant, competitive
telecommunications sector. As a result, the European Union, Canada,
and the United States launched major new liberalization policies
aimed at opening all telecommunications markets to competition.
This report presents two views of the progress towards competition
-- one for North America and one for Europe. The authors provide an
overview of the market structure on both continents prior to the
1990s, discuss significant regulatory changes during that decade,
and analyze changes in rate structures and competition that have
occurred since liberalization. They conclude with a look at the
present and future impact of the Internet and other new
technologies on the telecommunications industry. Martin Cave is
professor of economics and vice chancellor at Brunel University,
United Kingdom. Robert W. Crandall is a senior fellow in the
Economic Studies program at the Brookings Institution.
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