Determining the level of regulation in EU telecommunications. A preliminary assessment

The attention of the EU is currently focused on which aspects of telecommunications should be regulated at a national and which at a European level. The paper argues that in practice this is not an 'either/or' question, but a question of the degree of regulatory detail at the European level. The criteria for making choices on this dimension should be the standard ones of efficiency, equity, accountability and (in this case) consistency with the single market. The presence of externalities favours a central solution, while reliance on local information and a desire for political accountability favour decentralization. A number of possible regulatory frameworks are analysed, including the creation of an independent European regulator. In many contexts, some form of policy coordination is preferable to the creation of new centralized institutions.