Chaire de Management des Industries de Réseau MIR

Chaire de Management des Industries de Réseau MIR Management of Network Industries Annual Report 2004 EPFL - CDM - MIR Odyssea Station 5 CH-1015 Lausanne Tel. +41 21 693 00 02 Fax. +41 21 693 00 00 e. Mail: mir@epfl. ch Chair MIR Annual Report 2004 http: //mir. epfl. ch

Annual Report 2004 Index Editorial MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Chair MIR Annual Report 2004 2

Editorial 2004 is MIR’s second year of real operations and as such it has been another year of successful growth and development, which will now allow MIR to enter a phase of consolidation. During 2004, we have successfully launched our e-governance executive Masters, acquired an FNRS research project, built-up our research activities and publications (especially with a co-authored Report to the Club of Rome), enrolled a critical mass of Ph. D students, and developed further relationships with partners in both academia and industry. This evolution has of course led to some significant changes in personnel. We are very fortunate to welcome Dr. Pierre Rossel, among others, as a new member of the MIR team. Editorial MIR structure MIR personnel Research In parallel, the College of Management of Technology at EPFL has been officially inaugurated. In this new institutional context, MIR has slightly redefined its focus, as it aims at making a contribution to the organization of the network industries and their networks with a speciall attention paid to institutional problems and solutions. MIR studies, in particular, de- and re-regulation, as well as the governance and the management of the network industries. It also studies questions of innovation and risk and is especially attentive to the transformations the network industries are currently undergoing as a result of the growing role played by the information and communication technologies (ICTs). Thus, MIR also explores the usage of the ICTs when it comes to regulation and governance (e. g. , e-governance). Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Let me also mention that MIR has further consolidated its international leadership in two sectors: - in the postal sector we have collaborated in 2004 with the major actors in the sector such as Deutsche Post AG, TPG Post, but also the Universal Postal Union. For example, Prof. Finger was invited to give the keynote address to the Universal Postal Union’s 23 rd World Congress in Bucarest in September 2004. This leadership role is likely to lead to an independent research center financed by the industry in 2005; - in the water and sanitation sector EU-funded research project “EUROMARKET” has now caught the attention of the EU administration, the main industry actors, and non-governmental organizations, as it introduces some rationality into the increasingly heated debate about water privatization. Objectives 2005 Editorial Finally, I would like to thank all the members of the MIR team for their contributions to this joint effort, as well as our various supporters, especially Swiss Post as the main sponsor of our Chair MIR Annual Report 2004 3 Prof. Matthias Finger Director MIR

MIR structure Areas of research MIR research activities cover four programmatic areas: -The evolution of the network industries: here we study how the network industries evolve and innovate as a result of liberalization, deregulation, privatization, as well as a result of the impact of the ICTs; - Network industry regulation and governance: here, we study the emergence of regulatory functions and institutions, the role of the ICTs in regulation (e. g. , eregulation), as well as new forms of governance; - Business – government relations: here we study the interface and evolving strategic relationships between business and government at the local, national, and global levels; research questions cover firms’ nonmarket strategies, business and society along with the growing importance of transnational corporations; and - From government to governance: here we study the emerging new forms of governance, such as publicprivate partnerships in management and financing, innovation, e-governance and other uses of the ICTs for governance purposes. Editorial MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 MIR structure Industries/sectors - Postal services - Telecommunications - Energy (electricity & gas) - Railways - Air Transport - Water and Sanitation Chair MIR Annual Report 2004 4 Directed by Prof. Dr. Matthias P. Finger Personnel 2 permanent staff 2 assistants (1 -year contracts) 5 Ph. D students enrolled and funded by EPFL 3 Ph. D students enrolled at EPFL and funded externally 3 Exchange students Main sponsor

MIR personnel Prof. Dr. Matthias P. Finger - Director Chair MIR Permanent staff: - Rosa Graziani, personal assistant (left December 2004) - Dora Mendes, personal assistant (as of December 2004) - Dr. Pierre Rossel, senior scientist [has additional 2 Ph. D students] - Dr. Beat Wyser, scientific collaborator (left January 2005) Editorial MIR structure MIR personnel Research Assistants (1 -year contracts): - Jeremy Allouche, manager of the EUROMARKET project - Dena O’Neil, assistant to the e-governance Executive Masters - Valérie Schüpbach, assistant to the e-governance Executive Masters (left September 2004) Conferences Publications Teaching Continuing Education Ph. D students enrolled at and funded by EPFL (Finger): - Cátia Felisberto, Regulation and innovation in the postal sector (funded by FNRS) [enrolled] - Patricia Manso, Risk regulation in the water sector (funded by EUROMARKET) [enrolled] - Gustave Nguene, Security of supply in the energy sector (funded in part by CREM) [enrolled] - Jeannine Srivastava, Innovation in the Telecom sector (funded in part by MHV grant) [accepted] - Thomas Zwahr, e-governance (funded by SHS) [accepted] Keynotes Professional Service Media appearances Objectives 2005 Ph. D students enrolled at EPFL but funded externally (Finger): - Niko Illiadis, Electricity markets modelling, employed by Electrabel [accepted] - Patrick Mollet, Strategies of logistics operators, employed by Swiss Post [accepted]| - Alassane Ndour, Southern African Power pool, employed by Bouygues [accepted] - Philipp Zimmermann, local e-government, employed by HEVS [enrolled] MIR personnel Thesis co-directing (Finger): - Christof Abegg, Public Service in the peripheries, enrolled at ETHZ [defended February 2005] - Patrick Dorvil, Waste management privatization, enrolled at U of St. Gallen - Marc Ehrensperger, PPP in transport, enrolled at U of St. Gallen - Roger Sonderegger, Reform of local utilities, enrolled at U of St. Gallen [defended May 2004] - Urs Trinkner, Postal regulation, enrolled at U of Zürich Chair MIR Annual Report 2004 5

Research areas The Chair MIR aspires to make intellectual contributions in the following research areas: • The evolving postal sector: MIR studies the firms’ strategies, the concentration process, the evolution of the Universal Service, and the regulation of the sector • Water liberalization: MIR studies the evolution of the global water sector (distribution and sanitation), the non-market strategies of the major firms involved, the newly emerging regulatory arrangements, and the evolution of the management of the water resource • e-governance: MIR studies the use and application of the information and communication technologies in both public and corporate governance, as well as the consequence of such use on governance • Foresight: MIR explores new methods to better anticipate organizational, market, and technological changes in the network industries • Editorial Regulation: MIR studies the emerging new forms of regulation (functions and institutions) in the network industries, and assesses such emerging regulation in terms of its contribution to the governance of the netwrk industries MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 In all its research endeavours, MIR is grounding itself in solid organizational and neo-institutional theory, and aspires to making a contribution to such theory by using the network infrastructures as an empirical basis Research Chair MIR Annual Report 2004 6

Ongoing fundamental research projects In 2004 MIR managed and/or participated in the following fundamental research projects: • PNR 51 Swiss national research foundation programme 51 on social exclusion: a research project carried out in collaboration with CEAT (EPFL) on the digital divide, June 2003 to end of May 2005, 200’ 00. - CHF. • Exploratory research on the digital divide in Southern countries and possible bridging options; Cooperation unit at EPFL, 5’ 000. - CHF. • COST A 22 Foresight Methodologies – Exploring New Ways to Explore the Future: cooperation project started Oct. 2003, with Switzerland signing in June 2004 and our starting Oct. 2004, as Swiss representative in the Action. • Postal regulation and enterprise innovation: research grant from the Swiss National Science Foundation on, Co-Principal Investigator (with Prof. H. Dietl, University of Zürich); 400’ 000. - CHF; 2005 -2007. • Editorial EUROMARKET: Water liberalisation scenarios: an empirical analysis of the evolution of European water supply and sanitation sectors. EU research grant 5 th Framework Programme; 2, 4 Mio. Euros; 2002 -2006. MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Research Chair MIR Annual Report 2004 7

Applied research projects In 2004 MIR was actively involved in the following applied research projects: • Price regulation in the Dutch Postal sector; research conducted for TPG Post (completed) • Institutional Framework for the Water Regulatory Council; research conducted for the government of Mozambique (completed) • Situationsanalyse und Handlungsempfehlungen zum Stand des egovernment in der Schweiz; research conducted for the IT Strategy Office of the Swiss Confederation (completed) • Future screening; research conducted for Swiss Postfinance (completed) • Mise en perspective critique du projet de révision de la loi sur les télécommunications; research conducted for Swisscom (completed) • Editorial Analyse der Gasmärkte in der EU und Öffnungsbedarf im Schweizerischen Gasmarkt (with Plaut Economics): research for the Swiss Federal Office of Energy (ongoing) MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Research Chair MIR Annual Report 2004 8

Submitted fundamental research projects In 2004 MIR had either individually or jointly submitted the following fundamental research projects: • Social and institutional influences on innovation in technological communities; project submitted with Prof. E. Autio (HEC-Unil) to the FNRS (decision pending) • Production décentralisée et sécurité d’approvisionnement énergétique; project submitted to the Swiss Federal Office of Energy (decision pending) • Editorial Security of supply and regulation in a liberalized electricity market; project submitted to the FNRS (rejected, but will be resubmitted in 2005) MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Research Chair MIR Annual Report 2004 9

Papers presented at academic conferences In 2004 MIR members have presented papers at the following academic conferences: • Managing Human Resources while downsizing (Hasler, Finger, Friedli), CPDE, Cork, June MIR personnel • Critical Steps towards e-governance (Finger, Zwahr), EJEG, Dublin, June Research • Air transport regulation under transformation (Finger), Air Transport Research Society, Istanbul, July • Evidence for a new framework to analyze operators’ strategies in the water supply and sanitation sectors (Finger, Manso, Allouche); Water Research, Marrakech, September • Towards Virtual Governance Architecture (Zwahr, Finger), e-Challenges, Vienna, October • Desafios para a Regulação da Água na Europa (Manso), Congreso Iberico de Agua, Tortosa, December Editorial MIR structure Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Conferences Chair MIR Annual Report 2004 10

Publications published in 2004 • Finger M. & C. Genoud (2004). Electricity Regulation in Europe. In: Midttun, A. & D. Finon (eds). The Changing European Electricity Sector. Amsterdam: Elsevier Publishers; 1/3 rd of the book. • Finger M. (2004). The New Water Paradigm: The Privatization of Governance and the Instrumentalization of the State. In: Levy, D. & P. Newell (eds. ). The Business of Global Environmental Governance. Cambridge: MIT Press, pp. 275 -304. • Luís-Manso P. (2004), La Liberalizzazione del settore idrico nell'Unione Europea - sviluppo ed alcuni casi nazionali. In: Instituto Regionale Studi Europei Friuli Venezia Giulia (ed. ). Governare l'acqua, Pordenone: Edizioni Concordia Sette. • Rossel P. & C. Jemelin (2004). Gestion des connaissances et apprentissages en matière de mobilités quotidiennes : quelles évaluations? In: Vodoz, L. et al. (eds. ). Les Territoires de la mobilité: l’aire du temps. Lausanne: Presses polytechniques universitaires, pp. 251 -262. Editorial MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Publications Chair MIR Annual Report 2004 11

Publications submitted in 2004 Books: • Finger, M. , Tamiotti, L. & J. Allouche (eds). Water governance. Albany: SUNY Press. • Von Weizsäcker, E. , Young, O. & M. Finger. Limits to privatization. Report to the Club of Rome. London: Earthscan. Editorial MIR structure MIR personnel Research Book chapters: • Finger M. World Food Organization. In Conca, K. (ed. ). Encyclopedia of Globalization. New York: Palgrave/Mc. Millan. • Finger M. Globalization; Critical Theory; Conscientization. In: English, L. (ed. ). Encyclopoedia of Adult Education. New York: Palgrave. Mc. Millan. • Finger M. Global Governance through the Institutional Lense. In: Lederer, M. & P. Müller (eds. ). Reflecting Critically on Global Governance. New York: Palgrave, forthcoming. • Finger, M. & P. Rossel Impacts of the ICTs on local government. In Löffler, E. (ed. ) Public Sector Reform, forthcoming. Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Peer-reviewed articles: • Finger M. & M. Piers. Air transport regulation under transformation: the case of Switzerland, Journal of Air Transport Research, forthcoming. • Finger M. & G. Nguene. Risk modeling and strategic choices in an uncertain environment: the case of energy operators, submitted to Emerging Applications of Artificial Intelligence, November 2004. • Finger M. & P. Manos. The challenge of regulating the drinking water sector: lessons from Mozambique, submitted to Water International, November 2004. Publications Chair MIR Annual Report 2004 12

Non peer-reviewed publications • Finger, M. De la transformation de l’état à la gouvernance électronique: vers un modèle de l’E-Gouvernance, Les Cahiers du CREMOC, Sceaux, janvier 2004 ISSN 1634 -4774. • Finger M. The future international administration of global mail – a review of other industry models (with Triangle Consultancy), London, 2004, 40 pages. • Finger M. Postal regulation: principles and orientation. Edited by the Universal Postal Union, Berne, Switzerland, 2004, 29 pages. • Finger M. & C. Genoud. La concurrence dans les chemins de fers – une chimère? Publication of the Swiss Association for Public Transport, 2004, 16 pages; also German edition. • Rossel Pierre, Glassey Olivier, La fracture digitale dans les pays du Sud et les pistes possibles de la remédiation, Cahiers de la VPRICOOP No 1. • Rossel Pierre, Glassey Olivier, Caractéristiques et enjeux de la dimension dynamique de la fracture digitale, in : ADIS, ICTs and Inequalities: The Digital Divides, Proceedings of the Conference, Paris || 17 -19 Nov. 2004 Editorial MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Publications The Chair MIR edits the “Network Industry Newsletter” (4 times / year); The newsletter formerly called “Séquence 8” (in paper) is published as an electronic version only as of September 2004. Chair MIR Annual Report 2004 13

Teaching Ph. D course: • Editorial De- and re-regulation of the network Industries (24 h) [Finger] Minor / Master: MIR structure • Research Corporate governance (Spring 2004, 42 h) [Finger] • MIR personnel Corporate governance (Fall 2004, 42 h) [Finger] Conferences Bachelor: Publications • SHS 1 st year: Corporate governance (Spring and Fall 2004, 4 h) [Finger] Teaching • SHS 2 nd year: Projects (90 h) [Finger] • STS: Mobilités, innovation technique et gouvernance (28 h) [Rossel] Continuing Education Keynotes The Chair MIR also manages SHS-MTE Professional Service Media appearances Teaching at other Universities: Objectives 2005 • Teaching Chair MIR Annual Report 2004 14 Management of Public Enterprises, University of St. Gallen (16 h) [Finger]

Continuing education offerings and teaching • • Editorial • MIR structure MIR personnel Research • Conferences • Publications Teaching Continuing Education • Keynotes • Professional Service Media appearances Objectives 2005 • • Teaching Chair MIR Annual Report 2004 Executive Master Management of Technology (Mo. T), EPFL “Enterprise and Society”, Prof. Finger (20 h) Executive Training Managing Technology Enterprise, IMD/EPFL/ETHZ “De-/re-regulation”, Prof. Finger (8 h) Posgraduate Programme “Development”, EPFL/EIER, Ouagadougou, Burkina Faso “Importance and changing role of the State in infrastructures”, Prof. Finger (8 h) Executive Master in Sport Administration & Technology “Innovation products and processes”, Dr. Rossel (3 h) Executive Master in Sport Administration & Technology “Breakthroughs, cross-fertilizations, hybrids, co-evolution, clusters, transfers and spin-offs”, Dr. Rossel (3 h) Executive Master in Sport Administration & Technology “Coupling strategic intelligence with user-oriented design”, Dr. Rossel (1 h) Postgraduate education program « Politique de l’enseignement supérieur et de la recherche of The Observatoire science, politique et société (EPFL-UNIL), “The Social Shaping of Technology”, Dr. Rossel (2 h) Postgraduate Studies in Hydraulic Schemes, EPFL “The Challenge to access to water and sanitation”, J. Allouche (4 h) PUMA, Executive MPA University Bern “Corporate Governance”, Prof. Finger (4 h) As of December 2004, the Chair MIR offers an Executive Master Program in e-governance, 10 participants 15

Keynote speeches and public appearances (Prof. Finger) • • Editorial • MIR structure MIR personnel Research Conferences • Publications • Teaching Continuing Education • Keynotes • • Professional Service Media appearances Objectives 2005 Keynotes Chair MIR Annual Report 2004 16 Innovation Dynamics in the Network Industries, 7 th Annual International Conference on Economics of Infrastructures, Delft, May Die Auswirkungen des e-government auf den Föderalismus, Arena Publica, St. Gallen, May The future of Public Services in European Trade Union Confederation (ETUC) & the European Centre of Enterprises with Public Participation and Enterprises of General Economic Interest (CEEP), Budapest, June Security of supply between liberalization and regulation, Swiss Electricity, Zürich, June Postal Services facing a changing environment, 23 rd Congress of the Universal Postal Union, Bucharest, September e-governance, a model for Europe, 5 th i. Democracy World Forum, Issy-les Moulineaux, September Regulating regulation, CPOGG-Summit, Monterrey (Mexico), November Water Liberalization Scenarios, Stockholm University, Stockholm, November

Professional Service Prof. Finger • Dean of the School of Continuing Education, EPFL Editorial • Vice-President, CREM Centre de recherche en Urbistique (jointly owned by EPFL and the City of Martigny) MIR structure MIR personnel • Member of the Swiss Federal Commission on Transport Litigation, (Railway Regulator), Berne Research Conferences • Member of the Swiss Federal Commission on Air Transport Safety, Berne Publications Teaching • Member of the Commission “Public Enterprises” of the CIRIEC (International Centre of Research and Information on the Public and Cooperative Economy), Brussels, Belgium Continuing Education Keynotes Professional Service • Member, Editorial Board, Journal “Critical Perspectives on Global Governance” Media appearances Objectives 2005 • Member, Editorial Board, Global Environmental Politics, M. I. T. Press, Boston, Massachussetts • Member, Editorial Board, Journal of Network Industries, Sage, London Prof. Service Chair MIR Annual Report 2004 17

Media appearances Newspaper articles from and about Chair MIR Editorial • Verfehlte Zugangsregulierung im Telekom-Sektor Article NZZ, 23 September 2004 (in German), • 2700 Poststellen – und was nun? Article Der Bund, 27 April 2004 (in German) • UBS, majoritaire dans Atel, redistribuera les cartes du marché de l'électricité en Suisse Article Le Temps, 6 April 2004 (in French) • Lições sobre a liberalização e a regulação Article in Economia & Negócios, Mozambique, March 26 th (in Portuguese) • Sino-Swiss Management Training Center Article St. Galler Tagblatt, 4 February 4 2004 (in German) • Le régulateur postal suisse manque d'indépendance Article Le Temps, 22 January 2004 (in French) MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education Keynotes Professional Service Media appearances Objectives 2005 3 Radio and 2 TV appearances Media appearances Chair MIR Annual Report 2004 18

Objectives 2005 Personnel: 1 more Ph. D student in the area of railways or air transport Editorial Research: MIR structure MIR personnel 2 FNRS projects submitted (October 2005) Publications: Book on the transformation of the State and regulation (draft version) Edited book on e-governance (draft version) 1 co- authored and 1 single authored (Ph. D student) paper employed Ph. D student (10) 2 single-authored papers (Finger) Research Conferences Publications Teaching Conferences: EJEG (3 papers accepted) SMS (1 paper acceptance pending) AOM (1 paper accepted, Finger & Mollet) CRRI (2 papers, accepted) IAMOT (1 paper, Finger& Rossel, abstract accepted) ATRS (1 paper, Finger, acceptance pending) ISNIE (1 paper, Finger, acceptance pending) Regulation of public services, Paris (1 paper, Finger, acceptance pending) Continuing Education Keynotes Professional Service Media appearances Objectives 2005 Teaching: New course on Industry analysis and trends (Spring 2005) Executive Education: second edition of the executive masters in e-governance Objectives 2005 Partnerships with industry: Setting up of the European Center for Mail Excellence Chair MIR Annual Report 2004 19

Zusammenarbeit mit der Post 2004 Editorial • Paper for Conference on Postal and Delivery Economics, Cork, 3. 6. 2004 • Formation pour Réseau et Vente, Les Marécottes, 11. 6. 2004 • Postmail Workshop, Olten 17. 6. 2004 • MPA Uni Bern, Magglingen, 17. 8. 2004 • Postmail Workshop, Lausanne 18. 8. 2004 • SPI, Strategieworkshop, Bern 30. 8. 2004 • Conférence Réseau et Vente, Fribourg 25. 9. 2004 • Workshop SPI 29. -30. 11, 2004 MIR structure MIR personnel Research Conferences Publications Teaching Continuing Education • Zusammenarbeit mit Poststellennetz und Verkauf (Projekt Ymago) • Zusammenarbeit mit Postfinance: - Studie “Future Screening” - Betreuung von Austauschstudent E. Reimondez (Chipkarten Anwendung) • Zusammenarbeit mit SPI: - Betreuung Diplomarbeit von Yan Wang • Zusammenarbeit mit CD: - Betreuung Austuaschstudent Belen Urrutia (CENDRIS) • Zusammenarbeit mit P: - Vorbereitung Workshop Service Public Keynotes Professional Service Media appearances Objectives 2005 Review 2004 • Yellowlunch (Dr. Wyser) • Treffen mit Herren Savary/Kohler (P&V), Kunz/Zürcher (Logistics), SPI (Streich), Kornzernleiter Chair MIR Annual Report 2004 20