Regulatory reform and performance in telecommunications: unrealized potential in the MENA countries

Abstract

Based on international evidence, this study confirms that telecommunications liberalization is conducive to higher efficiency, contributing to Information and Communications Technologies (ICT) growth. Assessment of liberalization benefits on sector performance is based on an indicator encompassing three key factors: (i) competition in fixed and mobile networks; (ii) openness to foreign ownership; and (iii) pro-competitive regulation. Notwithstanding recent progress, Middle East and North Africa (MENA) telecommunications markets remain less open to competition than elsewhere in the developing world: competition is hindered, private participation is scarce and foreign ownership is most severely constrained, while regulatory regimes do not support fair competition.