Competition and modernization issues

This article reviews the various objectives that governments may set when considering privatization of a company and the benefits or otherwise that can be expected to follow. The most important mechanism for maximizing customer benefits and limiting monopoly power is competition, but various degrees of competition are possible. Modernization can also follow one of several models, according to the level of development of the telecommunications infrastructure. Overall, privatization can be expected to have a net positive effect, but conficting interests are at stake and care must be taken to ensure that the customer is the overall beneficiary.