SECTORS | Telecommunications

The telecommunications sector is undergoing fundamental transformation as new technologies develop and the demand for improved and increased communication services increases. Underlying technology and cost trends in fibre backbone capacity, competitive local loop technologies, and the convergence of voice, video and data technologies will continue to drive the industry toward new business models. New forms of competition are constantly emerging in telecommunications and sources of market dominance are changing. This is challenging for both regulators and regulated firms in ensuring that monopoly services are regulated appropriately and contestable services are opened up to competition.

Castalia advises new entrants, established players, Governments and regulators on the implications of these trends for business strategy, competition and public policy. We understand that technology moves faster than policy, so regulatory frameworks should be flexible and responsive to changing environments. Our work for telecommunication providers has also shown us that technological advances drive markets in ways which are not always obvious, but can be predicted in a suitable strategic framework.

We advise on issues such as:

  • Business strategy: Castalia has helped enterprises ranging from state-owned telcos to nimble start-ups address issues such as innovation versus short-term profitability, driving the adoption of new technologies, customer relationships and the integration of service components
  • Industry structure and market design: Castalia has worked on issues of telecommunications market structure and industry design across the globe
  • Private investment: Castalia has worked with investment banks and entrepreneurs to develop new telecommunications ventures. We have helped Governments encourage private investment in new communications infrastructure, and managers of state-owned companies to prepare for private participation
  • Regulation: Castalia assists regulators in liberalising markets, setting price caps and choosing where to mandate access when dominance is a problem. We also assist telecommunications companies to plan their regulatory strategy, and engage in effective dialogue with regulatory agencies
  • Competition related matters: We also provide competition assessments of a proposed merger, business arrangement in the telecommunications sector.