The study exammes the relationship between corporate and public telecommunication networks, and the role of interconnection. The telecommunication development in East Germany in the post-unification period is presented as a critical case study to examine the impact of restricted interconnection and monopolistic network supply on corporate network growth. A survey questionnaire in conjunction with in-depth interviews with large corporate users is applied to evaluate their propensity to establish private networks in East Germany. In order to generalise the results, statistical methods (logit and probit models) have been applied to several empirical data sets. The empirical findings of the analysis are compared with assumptions that have guided public policy in Germany between 1990 and 1994. The study demonstrates that interconnection accelerates network tipping, i.e., the adoption of private networks by a majority of large corporate users in conjunction with their exit from the public network. It evaluates different technical solutions to unbundle activities in digital nehvorks that enable an interconnection of corporate and public telecommunication networks In distinguishing between closed and open network access, interconnection is related to the concept of 'appropriability'. Open network access facilitates competitive network supply and undermines the traditional monopolies of the Post, Telegraph and Telephone Administrations (PTTs). Closed network access restricts competitive network supply and is a characteristic of a network design controlled by a dominant PTT. The study argues that closed network access can lead to a 'lock-in' configuration, i.e, an inefficient adoption of network technologies It postulates that the 'lock-in' situation in the East German telecommunication sector in the 19905 is due to the instantaneous application of the West German regulatory framework and monopolistic inefficiencies of German Telekom. The main conclusion is that there is a need to reconsider the traditional 'natural' monopoly as the most appropriate industrial structure to accelerate infrastructure development in countries with poorly developed telecommunication networks especially in East and Central East Europe. Moreover, it is argued that the expansion of corporate networks can contribute to the modernisation of telecommunication infrastructure when open network access is permitted. However, the specific circumstances in which open interconnection policies can facilitate the modernisation of the public network depend on a large number of country specific features. These are examined in detail for the case of the former East Germany.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:284054 |
| Date | January 1995 |
| Creators | Sadowski, Bert |
| Publisher | University of Sussex |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
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