By Debra Johnson
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Additional info for Strategy and Policy for Trans-European Networks
A combination of political and economic inertia offers limited scope for investment and innovation beyond the incumbent operator and the state. Thus technological change takes place largely through the dominant supplier, thereby sustaining existing concentrated market structures and reﬂects conﬁdence in its ability to act in a benign fashion to meet a broad set of socioeconomic concerns. Policy recognises that such control is necessary over the short/medium term due to the impossibility, or lack of will, to introduce full competition into the sector.
With ﬁnance often a mixture of state subsidy and state controlled/determined user charges. Given the aforementioned nature of government objectives and the (then) limited intensity of global competition, the primary objective of this regime was to meet domestic needs – international needs were of secondary concern. In this era, there was limited cross border functionality and ﬂows (such as those with telecoms and energy). Where such ﬂows were evident, interconnection and integration occurred through intergovernmental and industry-wide (through bodies such as the ITU and UCTPE) agreements.
The emergence of modern TENs: from the Action Plan to the Treaty on European Union Whilst the SEM led to a re-examination of the importance of panEuropean infrastructure, there was recognition that developing the European dimension of networks faced considerable barriers within the prevailing framework of development based on control. The system of control was synonymous with a fragmented system of development that was counterproductive to the aims of objectives of the SEM and possibly (over the longer term) to the needs of national economies.
Strategy and Policy for Trans-European Networks by Debra Johnson