Telecommunications services and economic growth: Evidence from India

This paper estimates the growth contributions of telecom services by public and private sectors and distinguishes it from the information technology services. Socio-economic determinants of demand for telecom services are estimated for fixed and mobile phones in the framework of a Logit model and using data from a small-household sample survey in India. Estimation results show a significant negative impact of price and a positive impact of income variables; distinguish the importance of social caste, education level, nature of occupation, age of household head and family size between fixed and mobiles phones and offer evidence for substitutability of mobile phones for fixed phones. These results add to the empirical knowledge of socio-economic determinants of telecom demand and have implications for selective design of policies towards promotion of higher demand and attainment of higher economic growth by fixed and mobile services in India and other developing countries.     

Telecommunications services in France: The regulated monopoly and the challenge of competition

Classical microeconomic modelling cannot alone explain the present trend of telecommunications deregulation. Based upon an examination of the French situation, the author argues that the current phenomenon should be viewed more as a game between three main players whose behaviour can be analysed using principles of industrial organization. The traditional telecommunications monopoly is bound to react defensively in response to increasingly powerful demand, stimulated by technical innovations, while at the same time the public policy maker searches for modern regulatory principles. Demand, as represented by large corporate customers, will probably trigger the next step in the game between the three players.     

Symbiotic production: The case of telecommunication pricing

In this paper we analyze a generalization of vertical monopolies in which monopoly suppliers trade essential inputs with one another. The most obvious applications of the model, which we call symbiotic production, are to postal and telecommunications services. We show how producers can use per-unit tariffs to achieve cooperative outcomes without colluding directly over consumer prices. We then show the firms have an incentive to collude in the setting of tariffs but that suchcollusion will lower consumer prices. This assumes that the suppliers are otherwise unfettered. In contrast, if the constituent monopolies are regulated, we show that collusion enables the firms to completely undo the restraints of regulation. The model has important policy implications for the international telecommunications market.     

Telecommunications development in Israel: The growth of public services and lessons from developing countries

The article begins with a discussion of the importance of the public services sector in the development of a modern economy, with specific reference to the organization and growth of public services in Israel. While the telecommunications sector is becoming increasingly important in national economies, it is often mismanaged in developing countries and its profits are used to subsidize other areas of the economy, particularly the postal services, which are run at a loss. The author analyses the various reasons for the lack of effective telecommunications policies in developing countries, and concludes with a series of recommendations for Israel which arise from that analysis.     

Telecommunications as ecosystem: An Australian case study

In describing methods of analysing and evaluating alternative policy options of large systems, like the Australian Telecommunications Commission, this article proposes a set of criteria to test the policy options of Telecom Australia. The criteria are developed through three levels of enquiry. The rational enquiry describes the objective characteristics of the system; the mythological enquiry describes that set of beliefs which justifies the system's organization; and the ecological enquiry evaluates the adaptability of the system. This article concludes that re-evaluation at the mythological level is necessary for the successful continuation of Telecom Australia.     

Telecommunications development in Asia-Pacific : The case for a new Australian role

This article describes the role of Australia in economic cooperation and telecommunications development in the Asia-Pacific region, particularly Asia. Australia's economic imperative focuses on north-east Asia while targeting markets for telecommunications in the relatively poorer nations of south-east Asia. A new role is advocated for Australia to take the Asia-Pacific Economic Cooperation forum it instigated beyond the purpose of economic cooperation directly into the cultural and human realm. Australia is challenged to use the new communications technologies to facilitate an active, shared learning process which could move Asia-Pacific into a new global order. A case is put for research on the use and impacts of the new telecommunications technologies in the service of humankind.     

Centrality and pricing in spatially differentiated markets: The case of gasoline

We highlight the importance of ‘centrality’ for pricing. Firms characterized by a more central position in a spatial network are more powerful in terms of having a stronger impact on their competitors' prices and on equilibrium prices. These propositions are derived from a simple theoretical model and investigated empirically for the retail gasoline market of Vienna, Austria. We compute a measure of network centrality based on the locations of gasoline stations in the road network. Results from a spatial autoregressive model show that prices of gasoline stations are more strongly correlated with prices of central competitors.     

Marginal cost and second-best pricing for water services

This paper examines the pricing strategy of water services relative to marginal cost and second-best pricing rules, which is a principal concern of utility commissions. The water utility is viewed as a multiproduct firm providing residential and nonresidential services, and a translog multiproduct cost function is estimated for a cross section of U.S. water utilities. Marginal costs are estimated and combined with demand elasticities to simulate second-best prices for water services. Results show that while the existing price structure is quite different from the one suggested by marginal costs, it does not depart substantially from the second-best optimum.     

Spin-off performance: A case of overstated expectations?

While the impact of divestitures on parent firms has been extensively studied, little attention has been given to the performance of the divested units. Previous research has found that spin-offs and sell-offs were associated with significant positive cumulative abnormal returns. However, these studies have not identified whether these benefits were expected to accrue to the divesting firm, the divested unit, or both. Specifically, this study examined the performance as autonomous firms of a sample of 51 voluntary spin-offs by nonfinancial firms across a 6-year period. Three accounting and financial market measures were tracked from 2 years prior to divestiture through the first three years of independence. No change in pre- and post-spin-off performances was observed except for the decline in profitability return on assets (ROA). The effect of relatedness between the parent company and the spinoff was also examined. Divested units which were unrelated to their parents prior to spinoff reported deterioration in performance. Implications for divestiture and restructuring programs are developed.     

Telecommunications and Sub-Saharan Africa : The continuing crisis

Telecommunications growth in Sub-Saharan Africa is chronically slower than in the rest of the developing world, primarily because it has not been given the necessary priority by governments. This article identifies nine fundamental areas which weaken financial and technical performance of the telecommunications sector, and explains their effects in the region. The author describes some plausible measures for reform in each area, and the role of international institutions and experts in encouraging change. The author warns that the leaders of Sub-Saharan countries need to realize the importance of communication in order to make available the adequate resources.     

LNG产业链成本分析及定价策略

LNG(液化天然气)下游各环节的成本相对稳定,并不随着LNG国际市场FOB价格(离岸价)的上涨而上涨;对LNG中的冷能加以利用,分离湿气源LNG中所含的轻烃,有助于降低LNG下游各环节的成本.成本核算原则、资源利用效率原则、替代对象价格决定承受能力原则、市场开拓导向原则是LNG下游用户定价的基本原则.根据此原则,LNG联合循环电站用户,价格承受能力较低,应当享受尽可能的低价;城市民(商)用燃气用户的用气价格宜较高,但要考虑贫困人口的承受能力;对规模化的城市和工业园区分布式能源系统用户应实行"薄利多销";对炼油石化企业用户应实行较低价格,鼓励其大量采用LNG;虽然车用燃料用户的价格承受能力很强,但要给产业链其他环节留下合理的利润空间,价格不可随意抬高;对槽车运输公司的LNG售价,应当充分考虑开拓卫星站用户市场的因素,适当让利给下游公司,以实现双赢.     

Estimating consumer surplus in the mobile telecommunications market: The case of Korea

This paper estimates consumer surplus in the Korean mobile telephone services (MTS) market. The Korean mobile telecommunications market has grown rapidly since 1997 when competition was introduced and Code Division Multiple Access (CDMA) technology was commercialized. Because consumer surplus is relevant to the controversy over establishing an appropriate price level between consumers and service providers, the need for a robust measurement of benefit from MTS is increasing. The measured net consumer surplus estimated by means of elasticities of demand reached about US$48.8 billion in the period 1996–2004 and the changes amounted to about US$8.8 billion during the same period. In particular, after competition was introduced into the market with an accompanying price decrease and increase in the number of subscribers, consumers have benefited greatly. Therefore, it can be inferred that a facility-based competition policy and the reduction in price of access such as handset subsidies all played a positive role in the early diffusion of MTS in Korea. The estimated consumer surplus in this paper does not include network externality (option externality); if this were considered, the total social welfare of the consumer would be larger.     

Telecommunications in Canada: The regulatory crisis

The article highlights the need for a national dimension in Canada's telecommunications systems. But the national dimension is undermined by the country's haphazard regulatory structure, and the consequent barriers to fair and equitable access to telecommunications services. A solution is proposed in the form of a national regulatory body which, without constitutional rearrangement, would yield effective federal authority and simultaneously ensure that valid concerns of a local or intraprovincial nature are taken into account.     

Telecommunications infrastructure competition: The costs of delay

This paper examines the experience of the USA, the UK and other OECD countries that introduced infrastructure competition, principally for long-distance telephone service, during the 1980s. The results show that competition has generally brought lower prices, greater variety of service, faster innovation, higher usage and productivity gains, and increased output both in telecommunications and in other sectors of the economy. The evidence is now convincing that the economic benefits from competition outweigh the highly visible costs and disruptions to established organizations and relations. Other countries can learn from the pioneers' experience to reduce the uncertainties and costs resulting from the transition to competition.     

Cost allocation of WCDMA and wholesale pricing for mVoIP and data services

This study estimates cost-based prices for wholesale voice and data services provided to 3G (WCDMA) MVNOs according to their distinct types. For estimation, 3G MVNOs are classified into different types, and the overall cost of WCDMA facilities are separated into voice and data components based on their subscriber rates, actual traffic rates, as well as efficiency consideration of traffic rates. The study then calculates cost-based wholesale prices of voice and data services for each of the 3G MVNO types. The result of this study shows that a cost-plus pricing scheme can help achieve the policy goals of the regulator, namely, lowering telecommunications tariffs and facilitating the introduction of new convergent-type services, far more effectively than the current retail-minus pricing scheme. The findings of this study may assist firms in developing business models based on 3G networks and telecom regulators in designing policies related to interconnection, mVoIP, prepaid calls, wholesale services, and network neutrality.     

Telecommunications policy: The medium is the message

Reflecting on his involvement with Telecommunications Policy, since 1979, this article by one of its first editors Colin Blackman, contributes to the 40^th anniversary issue. It describes the launch of the journal, the unique nature of its publisher, IPC Science & Technology Press, the way in which the field has changed over the past four decades, and makes some personal observations about the changing nature of the world of journal publishing.     

A strategic approach to industrial product pricing: The pricing plan

Price planning is one of the most overlooked areas in industrial marketing. Traditionally, emphasis is placed on product development, advertising strategy, and distribution channel formation before any consideration is given to pricing. The result is that industrial pricing decisions are made quickly without the necessary market and cost factors included in the final decision. The pricing decision is at the core of every business plan and impacts directly on the critical components of a company's marketing strategy. In this article, the importance of price planning in industrial marketing is discussed including the major components needed to make an industrial pricing strategy successful.