The Context of EU Telecommunications Reform Process: The Cases of Britain and Germany

Abstract

In recent years, the European telecommunications market has experienced major changes with wave of liberalization and rapid technological advancements. The nature of these changes and their implications for the autonomy of the national state vis-à-vis the Commission are often the subject of heated debate. Unlike the claims of neorealism and neofunctionalism, a close examination of the liberalization process in Britain and Germany telecommunications sector shows the appropriateness of new institutional analysis in which domestic as well as EU level conditions for the liberalization process are simultaneously explored. Although the wave of globalization, liberalization, and technological development set the stage for both countries to initiate telecoms reform, their different institutional structures produced mixed result initially. However, the Commission, armed with technical information and institutional support, exhibited effective mediation skills in making member states follow its legislative steps and pushing through its regulatory measures. As a result, despite some differences in timing and sequencing in their reform processes, Britain and Germany shared key institutional features of convergence – privatization of incumbent of PTTs, full liberalization of the sector, the creation of semi independent regulatory authorities and the spread of new norms of fair and effective competition.