The emergence of competition on the hard-line telephone market in Central and East Europe is stymied by the poor progress of governments in Romania, Poland, Czech Republic, Hungary, Estonia, Latvia, Bulgaria, Lithuania, Turkey, Ukraine, Russia and Slovenia in establishing independent regulation authorities, market research firm Analysys said in a report.
The paper argues that the benefits governments would enjoy from liberalising the hard-line telephone market - such as investments in network development and lower tariffs - are still not apparent, particularly due to the lack of a regulating institution bent on advocating consumer rights.
"Regulation authorities with an absolute power in any particular sector play an essential role in maintaining transparent competition," said Michael Denmead of Analysys.Michael Denmead believes that reducing bureaucracy in the telephone sector would improve and broaden the service range, simplify licence granting procedures for strategic investors, and double phone traffic.
"It is very clear that countries in the Balkan area need to learn fast from the experience of the other European countries that benefits arise from competition on the market, not merely from companies being brought in. These advantages should first of all benefit phone users and then the economy overall," Denmead added.
British company's analysts also say that most governments in Central and East Europe have been more concerned about privatising national hard-line operators than about bringing competition on the market. "The main reason was that authorities were in a dire need for cash."
Laura Hobbs from Analysys quotes the instance of Romania, where authorities have been more concerned about obtaining a good price out of RomTelecom's sale than about readying the telephone market for a tight competition. "Romania has privatised the monopoly by a new monopoly," Hobbs says.
In any case, it seems that, at present, every country in the Balkan area must find quick ways to make the telephone market completely transparent. This seems to be a necessary measure, as long as most of these countries strive to qualify for the European Union membership, while the World Trade Organisation keeps exerting serious pressures.
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