19 / 2007 Telecommunications in small economies : the impact of liberalization and alternative technologies on universal service

The paper identifies a lack of research in the field of telecommunications in the context of small economies. The central research question of the paper is whether there exist significant differences between small and large economies with relation to the effects of liberalization and alternative technologies on Universal Service that would necessitate the consideration of smallness in the formulation of optimum policy. It examines this question following an econometric approach using data for more than 140 economies for the period 1980-2004. Research findings support that, for small economies, smallness constitutes a significant factor leveraging the outcomes of competition and alternative technologies on the fixed network and prices. Suggestions for policy development are provided.