Wholesale competition in the international telecommunications system

In the last ten years, the international telecommunications industry has undergone important changes from both the legislative (regulatory reforms) and the technological points of view. The liberalization of the telecommunications market has, consequently, affected the dynamics of the bilateral agreements between international carriers. In this paper, the international wholesale market in which carriers compete over the tariffs in order to increase their market share is analyzed. In particular, this paper examines the interactions between fixed telephony TLC carriers belonging to various countries and analyzes the possible strategic choices of the market leader induced by changes in competitor behavior.