Abstract
The economic dimension of regulation is concerned with the imposition of controls on entry, exit, prices, outputs, service supplied, markets served, consolidations, and profitability in particular industries. Furthermore, economic objectives of regulation may be matched with 'market failure' situations which can be examined under, particularly, natural monopoly. Findings of this study indicate that: the relationship between competition and regulation shows that privatisation cannot be a solution to everything. Privatisation only leads to a change of ownership, but it is the competition or the effective regulation which really matters as far as increasing performance and channelling investment into the telecommunications sector are concerned. The process is complex and there is no single model or design due to the multitude of factors, conflicting interests, and interrelated evens that are involved. It should, however, be underlined that because the situation has been difficult in each country, one cannot generalise these experience.