Case Study Analysis and Solutions

Case ID: 713016

Abstract:
Case Solution & Analysis for Telecommunications Regulation and Coordinated Competition in Romania by Arthur A. Daemmrich, Alex Radu, Ana Sarbu
Leaders of the Romanian telecommunications agency must decide about a proposed international merger and how to structure bandwidth auctions critical to the telecoms market. The case is designed to teach about regulatory choices from the perspective of a regulatory agency, but it also describes the competitive standing of domestic and international telecoms providers in Romania and the challenges of operating as a "foreign" multinational, even in the European Union where protection of national champions is supposedly obsolete. Policy tradeoffs are developed among approving, delaying, or denying the proposed merger of domestic Romtelecom with Greek-based Cosmote. Likewise, tradeoffs are described for bandwidth auctions, notably among public transparency, maximizing revenue, preventing collusion, promoting efficient use of spectrum, broadening coverage, and fostering innovation in products and services.
Keywords:
Acquisition, Auctions, Business & government relations, Business policy, Communication, European Union, Government policy, Mergers & acquisitions, Telecommunications Regulation and Coordinated Competition in Romania Case Solution

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