Biases in optimal pricing with network externalities

Access and usage externalities affect consumer welfare and behavior in regulated communications networks, but nobody has ever adjusted prices to allow for externalities with a binding revenue constraint. If we fail to account for network externalities when we set (profit-constrained) welfare-maximizing access and usage prices, are the resulting prices too high or too low? This article demonstrates that the outcome depends upon what size of customer is likely to exit the network. It determines ranges where the access price increases and the usage price decreases, as well as the reverse.     

INMARSAT: looking beyond the maritime community

As a relatively new satellite organization, INMARSAT is engaged in making its system known to the maritime community with a view to increasing its usage. Current priorities include removal of restrictions on communications equipment in harbours and territorial waters, the setting up of disaster relief communications systems on land, the development of the Future Global Maritime Distress and Safety System (FGMDSS), cooperation with the aeronautical communities in a common satellite system, and planning for its second-generation system.     

The orbit-spectrum resource: Market allocation of international property

The author presents a formulation of a market system for the allocation of orbital space to geosynchronous communications satellites. Although based on a simplified model of satellite communications systems, the market system retains sufficient flexibility to be applicable to the allocation problems of the next two decades. Ultimately, the usage rights put forward in this article may need to be modified to include explicitly additional aspects of the orbital-spectrum resource. This formulation, however, includes in the definition of the usage right most of the information actually used today in picking an orbital location for a satellite.     

Seeing Is Believing (Too Much): The Influence of Product Form on Perceptions of Functional Performance

The present research investigates the manner in which product form communicates functional performance, and examines how the form of a product can alter judgments about feature function. In a series of experiments, product form is pitted against objective information about feature function to understand how conflicting visual and verbal cues are reconciled. The findings indicate that when a product's form suggests a particular level of functional performance, consumers naturally incorporate that information into judgments of feature performance, even when presented with conflicting feature information from an objective source. The role of consumer attention in the process is also explored. The results suggest that product developers may be able to improve perceived performance by focusing design efforts and marketing communications on specific features that visually communicate functionality.     

The political economy of satellite business

Satellite communications systems are the outcome of the fusion of big governments, high technology and big business, whose needs they meet. As a major growth sector they are becoming extremely important in economic terms. But satellite communications raise wider issues of the relationships between rich and poor countries and within rich countries. They will crucially influence the location of economic activity and the future prospects for countries in terms of access to information, decision making and income. The article discusses these questions and suggests how Europe might improve its position. It also argues that participation in public policy on satellite communications should be opened to a wider range of parties.     

Universal service issues in converging communications environments: the case of the UK

Convergent trends in telecommunications and broadcasting technologies and markets have called forth a re-examination of universal service provision in the communications sector and present an opportunity to update and re-formulate its provision. In the UK, proposed changes announced in the 2000 UK Communications White Paper and subsequent 2003 Communications Act, whilst still emphasising the importance of guaranteeing universal access to stipulated key public services and content across communications, suggest a closer relationship between economic and content regulation will be developed. This paper argues that whilst it is important to consider issues of economic efficiency in the communications sector, this should neither obscure nor compromise the need to create progressive, socially responsible, universal service reflective of the requirements of 21st century users. Crucial to the delivery of such a system in the UK is an actively supportive government policy backdrop and the development of the new convergent regulator the Office of Communications as an effective regulatory force.     

A comparison of social media marketing between B2B,B2C and mixed business models

This paper explores the implicit assumption in the growing body of literature that social media usage is fundamentally different in business-to-business (B2B) companies than in the extant business-to-consumer (B2C) literature. Sashi's (2012) customer engagement cycle is utilized to compare organizational practices in relation to social media marketing in B2B, B2C, Mixed B2B/B2C and B2B2C business models. Utilizing 449 responses to an exploratory panel based survey instrument, we clearly identify differences in social media usage and its perceived importance as a communications channel. In particular we identify distinct differences in the relationship between social media importance and the perceived effectiveness of social media marketing across business models. Our results indicate that B2B social media usage is distinct from B2C, Mixed and B2B2C business model approaches. Specifically B2B organizational members perceive social media to have a lower overall effectiveness as a channel and identify it as less important for relationship oriented usage than other business models.     

Implementing policy on next-generation broadband networks and implications for equity of access to high speed broadband: A case study of Australia's NBN

Next generation telecommunications infrastructure is expanding and supporting rapid growth of broadband technologies and a digital economy. In this context, digital information and communications technologies (ICTs) are of increasing importance as a means for people to gain access to health or social services, employment opportunities, information and social networks. In this article we draw on our recent case study research to examine the policy (and politics) shaping implementation of Australia's National Broadband Network (NBN) and its likely effects on equity of access to high speed broadband (HSB) services. We monitored NBN policy and implementation from 2015 to 2018 through policy documents, reports, and media. To assess likely effects of NBN policy on implementation and subsequently on equity of access to HSB we: a) applied a framework defining four elements of equity of access; and b) analysed stakeholder views drawn from media articles and 22 interviews with experts on NBN policy including politicians, government staff, and industry representatives. We found that equity considerations competed with political and commercial imperatives during the rollout of the NBN. This resulted in positive and negative consequences for equity of access to HSB, with a change in policy and implementation in 2013 bringing greater risks to equity of access. The case study provides a framework for considering equity in the implementation of next generation telecommunications infrastructure and highlights the importance of considering equity in the evaluation of telecommunications infrastructure.     

Impact of modern communication infrastructure on productivity,production structure and factor demands of US industries: Impact revisited

This study investigates the contribution of modern communication infrastructure characterized by high speed broadband access network on the productivity growth, production structure and factor demands for US industries and for the aggregate economy. To evaluate such contribution, we modify the traditional cost function by incorporating communication infrastructure as input in production process in conjunction with other public infrastructures. The network externality and spillover effect of broadband access technology are captured by introducing broadband penetration rate as a shift factor in industry level production function. Empirical results show that the increased use of modern communications infrastructure increases the productivity of all industries with wide variations across industries. Estimated impacts on input demands show that increase in use of communications infrastructure service saves labor and materials and increase the demand for private capital. Finally, aggregate social rate of return on such investment has been estimated for policy implications.     

Electronic information exchange — findings

In the late autumn and early spring of 1977–1978, four ‘small research communities’ began using EIES, a computer-mediated communications system. The purpose of the operational trials was to see if the use of a system of this type to tie together geographically dispersed scientists working in the same research speciality area would increase the communication and productivity within the groups. All four groups were charged with assessing the impact of the system upon their members. In addition, the Division of Mathematical and Computer Science funded an overall study which provides comparable data across groups. This article summarizes the data collected in the ‘preuse’ and ‘three-month follow-up’ stages of the project. The distributions of usage, reasons for low use, and subjective evaluations of the system by its users are presented.     

Cost allocation and regulatory pricing in telecommunications : A UK case study

This article describes the application of alternative cost allocation methodologies to the Hull telephone system, which provides service to a small area of the UK independently of British Telecom. The article first discusses alternative uses of and methods for allocating costs among access, local usage and trunk usage. It then implements the fully distributed cost approach, using accountancy data provided by the company. In addition, several illustrative calculations are shown which cost individual services on a stand-alone basis using different technologies. The results broadly suggest that, on a full distributed cost basis, access costs exceed existing average tariff levels. The article concludes with some illustrative calculations showing the rebalancing of access and usage charges which would generate the same revenue but bring them more in line with costs.     

Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion,and financial development

Despite the momentous rise in ICT diffusion, and financial development in sub-Saharan Africa (SSA), their plausible joint effect on inclusive growth have not been explored, leaving a lacuna in the literature. This study, therefore, examines the direct and indirect effects of ICT diffusion on inclusive growth in 42 SSA countries over the period 1980–2019. We provide evidence robust to several specifications from the dynamic system GMM to show that: (i) ICT skills, access and usage induce inclusive growth in SSA, and (ii) the effects of ICT skills, access and usage are enhanced in the presence of financial development. These findings remain the same when we focussed on financial institution access. Policy recommendations are provided in line with the region's green growth agenda and striving efforts at improving socioeconomic development.     

Galileo used to live here.: Tuscany Hi Tech: the network and its poles

The paper outlines how networking between smaller companies and larger companies is evolving and how these changes need to be incorporated into policies for regional economic development. The strengths and weaknesses of the Tuscan region are outlined and on the basis of this situation a strategy was devised to exploit its scientific and technological resources. A particular feature of the strategy is the establishment of a new optical fibre communications system linking three university centres, Pisa, Florence and Siena.     

Exploring the potential of wireless technologies to accelerate universal Internet access in Ghana

Ghana was one of the first countries in sub-Saharan Africa to be connected to the Internet, yet has very low Internet usage (5.3 users per 100 inhabitants). A qualitative study including in-depth interviews with ISPs explored Internet diffusion in Ghana. Findings suggest that due to Ghana's inefficient and outdated fixed-line infrastructure, universal Internet access goals might not be achievable through fixed-line technologies. Rather, wireless technologies may be more efficient. However, high access costs continue to be a barrier. Policy options to encourage widespread deployment of wireless broadband and cost reduction are presented as suggestions for further research. These include using universal service funds to expand the national backbone with an open access high capacity wireless backbone to reach unserved and underserved areas, reducing license and regulatory fees for the wireless industry to encourage coverage and capacity expansion, and mandatory infrastructure sharing to reduce cost.     

Economic analysis of the introduction of the MVNO system and its major implications for optimal policy decisions in Korea

This study analyzes the anticipated economic effects arising from the introduction of the mobile virtual network operator (MVNO) system in the mobile communications service market. For the analysis, actual data (or estimated data)—such as price elasticity, the number of subscribers, traffic volume, rate, and access charge—were combined with an assumption about a competition scenario in the future market. Based on this analysis, consumer surplus, and change in the service provider's profits were estimated according to the type of policy that may be adopted for the MVNO system by the regulator. The results of the analysis indicate that consumer surplus appears to increase largely because of the reduction of the mobile service rate by the promotion of “service-based competition,” which occurs upon adoption of an MVNO policy in the mobile communication service market. Moreover, the introduction of an MVNO system into the mobile communication market seems to be socially beneficial regardless of policy type if access charges are set reasonably by a cost-plus or retail-minus method. In particular, in order to make sense of the introduction of a special MVNO, whether by the cost-plus method or the retail-minus method, the correct discount rate must be used in setting an access charge between the special MVNO and the significant market power (SMP) mobile network operator (MNO).     

Dynamic usage of narrowband spectrum

We examine the potential for expansion of the white space spectrum sharing model in the 400 MHz band. As opposed to UHF broadcast spectrum, which contains unassigned or idle segments known as white spaces, the 400 MHz band is characterised by intensive licence usage. However, productive spectrum usage does not guarantee allocative efficiency, which would require knowledge of the highest value service for each licence. 400 MHz frequencies are not priced on opportunity cost. It is therefore difficult to ascertain the economically efficient mix of services to deploy in the 400 MHz band. Drawing parallels with the high-economic value revealed and generated through the operations of unlicensed white space devices in UHF broadcast spectrum, we identify untapped 400 MHz spectrum capacity, which we refer to as narrowband spaces. Encouraging dynamic spectrum usage of narrowband spaces could, similarly to TV white space usage help realise the efficient allocation of the 400 MHz band. However, the narrowband nature of the 400 MHz licences and high licensing turnover imply a significantly different concept of dynamic spectrum access than that considered for TV Bands. The paper discusses regulatory implications and the type of services suited to exploit narrowband spaces.     

How much energy will your NGN consume? A model for energy consumption in next generation access networks: The case of Spain

The contribution to global energy consumption of the information and communications technology (ICT) sector has increased considerably in the last decade, along with its growing relevance to the overall economy. This trend will continue due to the seemingly ever greater use of these technologies, with broadband data traffic generated by the usage of telecommunication networks as a primary component. In fact, in response to user demand, the telecommunications industry is initiating the deployment of next generation networks (NGNs). However, energy consumption is mostly absent from the debate on these deployments, in spite of the potential impact on both expenses and sustainability. In addition, consumers are unaware of the energy impact of their choices in ultra-broadband services. This paper focuses on forecasting energy consumption in the access part of NGNs by modelling the combined effect of the deployment of two different ultra-broadband technologies (FTTH-GPON and LTE), the evolution of traffic per user, and the energy consumption in each of the networks and user devices. Conclusions are presented on the levels of energy consumption, their cost and the impact of different network design parameters. The effect of technological developments, techno-economic and policy decisions on energy consumption is highlighted. On the consumer side, practical figures and comparisons across technologies are provided. Although the paper focuses on Spain, the analysis can be extended to similar countries.     

Visual communication technology : Priorities for the 1980s

The author considers a strategy for the study of visual communications in the 1980s. To establish a basis for this strategy, market research was carried out to ascertain major visual communications needs in leading business organizations. The systems found to have greatest potential were video conferencing, interactive information retrieval, facsimile, document processing, and office automation (integrating all four systems). In the light of these requirements, the author describes a study programme for the 1980s and shows which technologies should be developed.     

Potential for visual communications technology in business

The authors describe the methodology used in a survey conducted by NTT to assess the potential of visual communications technology in business and the conclusions drawn. Communications activities were investigated in detail at a selected manufacturing company, and several fundamental communication patterns suitable for the application of visual communications services were defined. It was concluded that the areas with the greatest potential for such services were ‘investigation/ inquiry’, ‘negotiation’, and ‘submitting information’. To confirm these needs, a questionnaire was mailed to major corporations throughout Japan. Finally, several services and systems were proposed.