There are many arguments in favor of deregulation. Advocates argue that continued regulation can only support the development of static markets whereas deregulation is necessary for the development of dynamic markets. Market convergence and related infrastructure competition are more likely to take place in dynamic markets. In many telecom markets, deregulation is currently being discussed, in this article, we will examine the impact of deregulation on the overall economy and study arguments that are placed in favor and against deregulation.
Although, it is far from clear whether infrastructure investments are best achieved through deregulation and unfettered competition or through some new form of regulatory intervention, however, there are several studies supporting the conclusions that deregulation of the telecom sector triggers investments and overall growth of the economy.