Privitization of Telecommunications Services

TELECOMMUNICATIONS PRIVATIZATION, GENERALLY

In examining the issue of the privatization of telecommunications services, consideration is given to the private versus the public provision of goods and services, alternative approaches to privatizing services, and national experiences with the privatization of telecommunications services. The private versus the public provision of services is at the core of the privatization issue, while the alternative approaches to privatizing services enable economies structure the delivery of goods and services in a quasipublic context, as well as in all public or all private contexts. National experiences with the privatization of telecommunications services provide a basis for assessing the appropriateness of telecommunications privatization in Turkey.

Private Versus Public Provision of Goods and Services

When political and philosophical factors are not paramount, choice in economic organization is typically determined on the basis of which type of organization will provide a specific benefit at the least possible cost (Gwartney, Str

. . .
ization through deregulation, had three facets. First, it was consumeroriented. There was a genuine desire to lower consumer costs, and increase consumer choices through deregulation. Second, in an era of fiscal constraints, government wanted to reduce its exposure to the support of industrial activity. The Carter Administration has reduced the federal budget deficit to $27 billion in 1979, and it wanted to reduce the deficit even further in later years. Third, government wanted to reduce its role in industry management. This last goal was actively pursued by the Reagan Administration. Motives for the privatization and deregulation of services in countries other than the United States vary. The threefaceted American model is certainly not followed fully by all other countries. In examining the deregulation and privatization of telecommunications in countries other than the United States, one additional factor should be borne in mind. As the deregulation of the telecommunications industry in the United States was just one facet (and not the first implemented) of an overall deregulation effort in that country, so the privatization of telecommunications in other countries is also just one facet in broader privatiz
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Approximate Word count = 4873
Approximate Pages = 19 (250 words per page)