ABSTRACT
This paper discusses policies of privatisation towards the telecommunications sector in Brazil. It raises some issues connected to the impact of these policies and presents some characteristics of an econometric/computational model which can be used to analyse such an impact. It argues that, in the light of the international experience, the adoption of privatisation policies, in general, is necessary but not sufficient. If detailed statistical analyses in respect to the industrial structure of the sectors involved are not properly carried out, it is likely that privatisation could not bring about expected efficiency gains. This argument is based on the recent contributions to the theory of natural monopolies of the modem multi product industries.
KEYWORDS:
Privatization; telecommunications