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The overhang of excess capacity, especially in telecommunications, will be worked off only slowly.
High-growth industries like telecommunications will be opened to freer competition.
It is all very well to argue that telecommunications will eventually wipe out the advantages of agglomeration and let people scatter.
The commission's proposal, which was prepared by Neelie Kroes, the commissioner for telecommunications, will require approval by the European Parliament and the Council of Ministers in a process likely to conclude next spring.
Congressional proposals to repeal the Public Utility Holding Company Act for electric utilities and to further deregulate telecommunications will only serve to enhance the monopolies that have worked so hard to kill competition in the first place.
He also said that "telecommunications will probably be a persistent growth sector in the economy" in the long term and that the global market would probably expand 10to15percentent in the next few years.
Similar(47)
Last week's announcement that Lucent Technologies, the maker of telecommunications equipment, will merge with Paris-based Alcatel will do nothing to rouse the state from its economic stupor.
After the transaction is completed, Deutsche Telekom, the German telecommunications behemoth, will own 74 percent of the combined company, which will be renamed T-Mobile.
To reduce long-distance costs, China Unicom, the country's second-largest telecommunications provider, will open a network operating center in Guangdong Province that will allow the company to avoid paying other carriers for use of their phone networks.
The German telecommunications giant will hold onto a 74 percent stake, while current MetroPCS shareholders will keep a 26 percent stake.
Telecommunications services will also face higher sales tax under the law while an electricity subsidy will be reduced.
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