 their main customer. It has been argued that the telecommunication network is a natural monopoly, and that it is wasteful to duplicate access to subscribers, The telecommunication operator who wishes to operate globally It is reasonable to have competition in services which run over this often faces a difficult decision. The temptation is to gain market infrastructure, SO long as legislation is introduced to ensure equal share, usually at the expense of the local operator. Many of the large access to the service providers. Certainly it is very difficult for a telecommunication users are also multinational organisations who newcomer to set up his own network, due to the large investment prefer to obtain services from a single supplier, no matter in which needed to compete with the established operator. country they operate. The PTOs therefore offer 'one-stop shopping', This situation is made worse by the conditions usually attached to providing global services and single billing. However they also very the licence being granted, where the new entrant has to guarantee often need to form alliances with the local country PTO, especially coverage of a high percentage of the country within a specified if the country has a near monopoly in its telecommunications period in time, many of the locations covered having a low popula- system. tion density and therefore being uneconomical. Where the technol- Alliances are also formed between a foreign and local PTO where ogy is new, for example radio based PCN services, all operators are a country is just starting to grant new operator licences. In these on equal grounds in having to set up their networks. instances the foreign investor brings money and his experience to Many of the new entrants to the telecommunications operators' the table, whilst the local partner has knowledge of local conditions sector are organisations with established telecommunication net- and is also likely to be looked on more favourably by the local work, such as the utilities. They are niche player