New internet services and growth of the operator's revenue in terms of monopoly

Abstract

This paper begins with the current state of the electronic communications market in general, whose specificity is the existence of so-called a Significant Market Power (SMP) operator, and its ex-ante regulation by national regulatory authorities under predefined rules, that are based on EU legislation. European regulatory framework has changed many times and the number of markets with SMP operator also changed. Special attention has to be put on the existence of Internet market with of dominant wholesale operators. This market records continuous growth in revenues and three groups of participants appear on it: monopolists (one or more), alternative operators and regulator. Taking into account these facts, the paper analyzes the possibilities for simultaneous development of competition and further growth of monopolist's revenues, i.e. how much competition can be useful for the monopolists in the Internet market, either by encouraging himself to introduce new services or by the regulatory activities.

Keywords

• fostering competition
• monopolist's revenue
• naked Internet
• regulated market