Telecom and the Internet: Assessing the necessary degree of coherence between technology and institutions

Abstract

From research into the co-evolution of technology and institutions in the electricity sector system functions and coordination mechanisms have been identified as essential for the overall system integrity. When intervention in the autonomous development of the sector is being considered, e.g., through liberalization, their execution needs to be assured through institutional and/or technological means. Hence, a certain degree of coherence between technological and institutional arrangements needs to be safeguarded. In this contribution we report in summary form on the applicability of the coherence hypothesis for the electronic communications sector. We explore the co-evolution of the voice network (PSTN) and the data network (Internet), and assess the implications of the Telecom Reform as an deliberate intervention in the development process. We conclude that for the sector the coherence hypothesis can neither be accepted, nor rejected. What appears to distinguish the sectors are the attributes of the products/services provided, and the characteristics of the design regime applied. Identifiers are categorized as being coordination critical.