The best way to measure motivation

1.Price regulation - Avoid excessive pricing on the consumer -Cost recovery and investment recoupment over a period -Foster forthcoming investments. Several options – Cost à calculate AC and grant a markup upon them (May dillute incentives to efficiency gaining and cutting costs) – Cap pricing à absolute pricing level acting as threshold (May dillute to furthering investments + Sufficient fixed time)

2.Non discriminatory Access (Aimed at enabling non-network carriers access network in fair, transparent and non-discriminatory terms)

3.Corporate unbundling : Guaranteeing healthy functioning of competitive markets by curbing the exercise of competitive adv of integrated players (By isolating the diff “branches” with imp market power + When network owners are service providers at the same time) – 3 separation: 1. Accounting (Results presented independently. No cross-subsidising allowed) 2. Functional (Internal “Chinese walls” set out. No operational meltdown/ exchange of info possible) 3. Ownership (Diff legal entities. Separate companies with separate structure)

Public intervention in markets –Direct action a. Subsidising (ec adv to operators) b. Direct provision (/ entrustment to a 3rd p). –Regulation on access to activity and on exercise of activity

4.Universal Service (Duty on the incumbent  to guarantee provision of a particular service to any citizen) This obligation has costs and can be subsidized – direct financing via (Public authorities, private operators, Consumers) –The granting or reserving of an otherwise free market activity to the incumbent

5.Quasi-market allocation mechanisms (ETS) – Aimed at: passing-on of environmental costs from society to direct responsibles + acting as incentive to keep reducing such costs. –Supply/demand mechanisms (allocation of polluting rights + selling excess rights to interested companies)

6.Information disclosure mechanisms (assymetry of info btw sellers/buyers or vicev)

7.Exclusive rights -Industrial/intellectual property mechanisms (ensure economic return over a period of time + innovation and implementation costs

8.Public service obligations entrusted 3rd p who perform public services (exclusive basis)

The Altmark Case – For a State measure to be considered aid-free (an entrustment act defining the public service obl +parameters for calculating the compensation in advance objectively & transpa + reasonable profit, no overcompensation+provider through a public procurement procedure or level of compensation determined based on costs of an average undertaking in the sector concerned)– This ruling showed: public service compensation for SGEI providers represent State aid