Liberalizing telecommunications markets : Political externalities in the Greek case

In the course of technological changes in the information technology area and of completing the Internal European market, reforms in the traditional structure of the European telecommunication sector have become a key issue. This paper presents the policy reforms in the Greek case. Focusing first on the importance of regulation as a background activity to any type of change, the paper then gives an overview of the situation in the Greek telecommunication sector and evaluates the plans for privatization. It is argued that the new regulatory framework and the shift to private ownership are necessary, but not sufficient, conditions to deal with the political externalities the country faces.