State monopoly in the context of "Gas utilities"

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⭐ Core Definition: State monopoly

In economics, a government monopoly or public monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly created, owned, and operated by the government. It is usually distinguished from a government-granted monopoly, where the government grants a monopoly to a private individual or company.

A government monopoly may be run by any level of government—national, regional, local; for levels below the national, it is a local monopoly. The term 'state monopoly' usually means a government monopoly run by the national government.

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State monopoly in the context of Public utilities

A public utility company (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to statewide government monopolies.

Public utilities are meant to supply goods and services that are considered essential; water, gas, electricity, telephone, waste disposal, and other communication systems represent much of the public utility market. The transmission lines used in the transportation of electricity, or natural gas pipelines, have natural monopoly characteristics. A monopoly can occur when it finds the best way to minimize its costs through economies of scale to the point where other companies cannot compete with it. If the infrastructure already exists in a given area, minimal benefit is gained through competing. In other words, these industries are characterized by economies of scale in production. Though it can be mentioned that these natural monopolies are handled or watched by a public utilities commission, or an institution that represents the government.

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State monopoly in the context of Government-granted monopoly

In economics, a government-granted monopoly (also called a "de jure monopoly" or "regulated monopoly") is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement. As a form of coercive monopoly, government-granted monopoly is contrasted with an unregulated monopoly, wherein there is no competition but it is not forcibly excluded.

Amongst forms of coercive monopoly it is distinguished from government monopoly or state monopoly (in which government agencies hold the legally enforced monopoly rather than private individuals or firms) and from government-sponsored cartels (in which the government forces several independent producers to partially coordinate their decisions through a centralized organization). Advocates for government-granted monopolies often claim that they ensure a degree of public control over essential industries, without having those industries actually run by the state. Opponents often criticize them as political favors to corporations. Government-granted monopolies may be opposed by those who would prefer free markets as well as by those who would prefer to replace private corporations with public ownership.

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State monopoly in the context of Deutsche Telekom

Deutsche Telekom AG (German pronunciation: [ˌdɔʏtʃə ˈteːləkɔm ʔaːˌɡeː] , lit.'German Telecom'; often just Telekom, DTAG or DT; stylised as ·T·) is a partially state-owned German telecommunications company headquartered in Bonn and is the world-wide largest telecommunications provider by revenue. It was formed in 1995 when Deutsche Bundespost, a state monopoly at the time, was restructured. Since then, Deutsche Telekom has consistently featured among Fortune Magazine's top Global 500 companies by revenue, with its ranking as of 2023 at number 79. In 2023, the company was ranked 41st in the Forbes Global 2000. The company operates several subsidiaries worldwide, including the mobile communications brand T-Mobile. It is the world's fifth-largest telecommunications company and biggest in Europe by revenue.

As of April 2020, the German government held a direct 14.5% stake in company stock and another 17.4% through the government bank KfW. On 4 June 2024, the German government reduced its total shareholding to 27.8%. The company is a component of the EURO STOXX 50 stock market index.

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State monopoly in the context of Eir (telecommunications)

Eircom Limited, trading as Eir (/ɛər/ AIR; stylised eir), is a large fixed, mobile and broadband telecommunications company in Ireland. The company, which is currently incorporated in Jersey, traces its origins to Ireland's former state-owned monopoly telecommunication provider Telecom Éireann and its predecessors, P&T (the Dept. of Posts and Telegraphs) and before the foundation of the state, the telecommunications division of the GPO. It remains the largest telecommunications operator in Ireland and has overseas operations focused on the business and corporate telecom markets in the United Kingdom. The company was in majority state ownership until 1999, when it was privatised through a flotation on the Irish and New York Stock Exchanges.

Eir is currently majority owned by Xavier Niel's Iliad SA and his Paris-based NJJ Telecom Europe investment fund (64.5%). The group includes French telecommunications provider Free and Iliad Italia. Other major investors include Anchorage Capital Group (26.6%), and Davidson Kempner (8.9%).

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State monopoly in the context of General Post Office

The General Post Office (GPO) was the state postal system and telecommunications carrier of the United Kingdom until 1969. Established in England in the 17th century, the GPO was a state monopoly covering the dispatch of items from a specific sender to a specific receiver (which was to be of great importance when new forms of communication were invented); it was overseen by a Government minister, the Postmaster General. Over time its remit was extended to Scotland and Ireland, and across parts of the British Empire.

The GPO was abolished by the Post Office Act 1969, which transferred its assets to the Post Office, so changing it from a Department of State to a statutory corporation. Responsibility for telecommunications was given to Post Office Telecommunications, the successor of the GPO Telegraph and Telephones department. In 1980, the telecommunications and postal sides were split prior to British Telecommunications' conversion into a totally separate publicly owned corporation the following year as a result of the British Telecommunications Act 1981. In 1986 the Post Office Counters business was made functionally separate from Royal Mail Letters and Royal Mail Parcels (the latter being later rebranded as 'Parcelforce'). At the start of the 21st century the Post Office became a public limited company (initially called 'Consignia plc'), which was renamed 'Royal Mail Group plc' in 2002. In 2012 the counters business (known as 'Post Office Limited' since 2002) was taken out of Royal Mail Group, prior to the latter's privatisation in 2013. The privatised holding company (Royal Mail plc) was renamed International Distributions Services plc in 2022.

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