Pricing policy and regulation in the Greek telecommunications market

The paper examines the pricing policy that has been implemented by the Greek Telecommunications Organization (OTE) in the last seven years, as well as the role that the regulator has played in the setting of these prices. These prices are then compared to the respective ones in countries of the EU and the issues of rebalancing and regulatory capture are examined. It is shown that the prices charged by OTE in the long distance and international telephony are very high, whereas the price of the local call is very low. Furthermore, the imposition of the price caps by the NRA is characterized by regulatory capture. (C) 1998 Elsevier Science Ltd. All rights reserved.