Productivity analysis of the telecommunications sector in China

This paper applies the data envelopment analysis (DEA) approach to measure the productivity performance of China's telecommunications sector at the provincial level. The results indicate that the efficiency scores for different provinces and regions are diverse: the efficiency scores of the provinces in the eastern region are significantly higher than those in the central and western regions. The differences in efficiency scores are mainly due to the differences in the operating environments of different provinces, rather than the efficiency performance of telecommunications enterprises. The results also suggest that labour redundancy and excess capacity of long-distance optical cable lines are major problems in China's telecommunications sector. After a period of rapid growth in investment and number of subscribers, it is time for the telecommunications sector to consolidate and to put more emphasis on productivity growth in order to meet the challenges posed by the World Trade Organization (WTO) commitments.     

Wanted — wise policy not restrictive regulation

This article begins by restating some familiar tenets of information processing and telecommunications theory: that our emerging post-industrial economy is becoming increasingly service-oriented with a corresponding emphasis being placed upon information-intensive activities;¹ that technical improvements in telecommunications systems are forthcoming at an almost exponential rate of increase;² that a wide array of developed or developing telecommunications systems (including computer-based word processing, cable/satellite TV, interactive video, videotext, etc) are being considered for possible application in varied settings (ranging from the home to the office to the delivery of governmental services).     

The future role of international telecommunications institutions

The telecommunications world is being swept by technological and national regulatory changes. The international telecommunication institutions — the ITU, INTELSAT and CEPT — were founded in times when technological trends were more stable and national regulation was more homogeneous. How will they cope with these new changes? In an era of growing heterogeneity, the ITU may need to look increasingly beynd itself to maintain its centrality. Meanwhile, INTELSAT faces challenges from new market entrants and a more flexible approach to new technological and commercial imperatives in satellite and cable services. The EEC is awakening to the need for institutional change within Europe and this is already having an impact on CEPT. It is concluded that to survive and to maintain relevance the existing international institutions will need to initiate changes or face a loss of authority to other institutions such as OECD and EEC.     

Municipal electric utilities’ role in telecommunications services

Municipal electric utilities (MEUs) are increasingly expanding into telecommunications services. Such entry is interesting in several respects. First, MEUs marry two potential pathways for the growth of telecommunications access infrastructure and services: public ownership of last-mile facilities and electric power company expansion into telecommunications. Second, municipalities are key early adopters of next generation access technology in the form of both fiber-to-the-home (FTTH) and broadband wireless (e.g., WiMax) systems. Third, MEUs are at the nexus of the debate over the proper role for local government in promoting broadband Internet access. Most homes in the United States are served by investor-owned local telephone and cable television providers, using company-owned wireline infrastructure. These providers have generally opposed municipal entry, arguing that it will crowd out private investment and represents an unfair and less efficient form of competition. A number of states have acted to limit—or in some cases—to promote such entry. Before engaging in this debate, it is necessary to have a clearer picture of the current state of municipal entry and the local demographic, cost, industry, and policy factors that influence its evolution. To address this need, this paper reports the results of an empirical analysis of MEUs that provide communications services to the public. This analysis shows that MEUs are more likely to offer such services if they also provide internal communication services to support their electric utility operations (scope economies); are relatively close to metropolitan areas (lower backhaul costs); are in markets with fewer competitive alternatives (cable modem and DSL service availability limited); and which are less encumbered by regulatory barriers to entry (in communities in states which do not restrict municipal entry into telecommunication services). Of these results, the competitive impacts are the least straight-forward to interpret, suggesting richer dynamics and avenues for further research.     

Regulatory issues in regional satellite communications: Towards a USA - Mexico bilateral agreement

This article examines the issues raised by the drawing up of a bilateral agreement for satellite communications between the USA and Mexico. Mexico has been mainly leasing capacity from INTELSAT and is developing its own Morelos satellite system. Both the USA and Mexico are keen to develop transborder satellite telecommunications services, but before coming to an agreement both parties must arrive at a clear definition of the main concepts that will constitute the agreement. Key concepts being analysed are: services classification, the reciprocity principle, economic harm to INTELSAT, and technical harm to INTELSAT.     

Convergence and diversification in cable industry: An empirical analysis of the deployment pattern of cable telephony in US local telecommunications markets

The primary purpose of this study is to examine the deployment pattern of cable telephony in the US local telecommunications market. A model is established stressing that the size of local markets and the specific cost advantages of local cable systems are associated with the deployment of cable telephony by cable operators.     

Broadband and universal service

Section 254(b)(3) of the 1996 Telecommunications Act established the objective that residents of rural areas should have access to advanced telecommunications and information services comparable to services in urban areas. Pursuant to the passage of the Act, the Federal Communications Commission (FCC) established a new universal fund that provides explicit support to high-cost rural areas. This paper addresses the question of whether people in rural areas have similar access due to the support provided through the Commission's new high-cost fund. This paper focuses on the telephone platform because cable companies often do not serve rural areas due to the high cost of service, and because there is no mechanism for the federal or state government to subsidize the provision of advanced telecommunications services via cable. The Act's objectives are apparently not being met in rural areas served by large companies since people living in these areas are much less likely to have qualified lines that could be used to access advanced telecommunications services. On the other hand, small companies are much closer to satisfying the statutory requirement as a result of the implicit support received through cost sharing.     

Satellite data networks for national development

This article assesses the telecommunications needs of developing countries and the possibility of using satellite communications to meet those needs. Three primary technological factors provide a guide to this application: small inexpensive satellite earth stations can provide a solution to the problem of limited ground facilities; satellites can operate in a broadcast and multiple acess mode as well as in a conventional point- to-point mode; and, the capacity required to support a single interactive digital terminal is about 1000 times less than that required to support a voice telephone and abput 1 000 000 times less than that required for video transmission. These factors lead to consideration of new forms of national networks based on satellites, microprocessors and small earth stations which do not follow the North American model. These new advanced forms of networks can co-exist with conventional voice networks, and can provide a realistic alternative for consideration by national telecommunications authorities.     

Cable television and competition : Theory, evidence and policy

There is currently widespread discussion in the USA of the merits of amending legislation to allow competition in the cable television market, notably from the telecommunications companies. This article explores what economic theory can contribute to this debate, and adduces empirical evidence on the effects of competition in the cable market where it presently exists. The authors conclude that blocking entry into cable, and indeed into telecommunications markets, is likely to be poor policy, and that increased competition would foster the development of an efficient modern broadband network.     

Telecommunication in the US: From Regulation to Competition (Almost)

Alfred E. Kahn was an observer and practitioner of telecommunications regulation as technology changed the industry from a natural monopoly to a platform-based oligopoly among telephone, cable, satellite, and wireless carriers. Regulation and legislation were slow to recognize these changes, and large welfare losses occurred, some of which could have been avoided if regulators, legislators and economists had followed Fred’s economic advice: Prices must be informed by costs; the relevant costs are actual incremental costs; costs and prices are an outcome of a Schumpeterian competitive process, not the starting point; excluding firms from markets is fundamentally anticompetitive; a reliance on imperfect markets subject to antitrust law is preferable to necessarily imperfect regulation; and a regulatory transition to deregulation entails propensities to micromanage the process to generate preferred outcomes, visible competitors, and expedient price reductions.     

Financing telecommunications for rural development

Evidence shows that there has been serious underinvestment in telecommunications facilities in developing countries (DCs). This article analyses the reasons for this neglect, and demonstrates that a major restrictive factor in the development of telecommunications facilities in DCs — particularly in rural areas — has been the absence of adequate foreign exchange financing. Through an analysis of three major mechanisms for financing investment — supplier credits, multilateral lending and bilateral lending — and of the policies of the major institutions involved, the article identifies those policies that will stimulate the expansion of rural telecommunications in DCs.     

Satellite communications : US policy considerations

Regulatory decisions have controlled the possible technical alternatives in the use of artificial satellites, for both domestic and international telecommunications, since the enactment by the US Congress of the Communications Satellite Act of 1962. At the same time, advancements in technology have caused satellite systems to play a larger role in telecommunications. An updating of the 1934 Communications Act would allow for a more definitive statement of national satellite policy and for a revised regulatory standard. This article reviews some of the principle factors which have influenced communications satellite policy, and offers additional issues for consideration that can affect the development of communications satellite markets, systems and services.     

Cable TV in Austria. Between telecommunications and broadcasting

In this paper the development of the Austrian cable television (CATV) sector is discussed, focusing on its delicate interconnections with telecommunications and broadcasting, the blurring borderlines and resulting regulatory problems. The policy network is identified and recent changes in the CATV policy and strategy are highlighted, In particular, developments towards a stronger convergence within the electronic communications sector. The case study illustrates peculiarities and shortcomings of Austrian media and communications policies on the way toward a future-oriented information infrastructure.     

The Market Structure of Broadband Telecommunications

The recent growth of the Internet is creating markets for broadband telecommunications networks. In the past, virtually all such 'infrastructure' networks have been subject to government regulation. Two reasons advanced for this market intervention are (i) such networks constitute a natural monopoly, and (ii) to achieve 'universal service', in which all citizens have access to services. In this paper, we develop a model and estimate it using engineering data which tests if these two hypotheses are likely to obtain for broadband networks. We find that oligopolistic competition is likely to emerge for demand levels approaching that of today's cable television.     

Reaching out to remote and rural areas: Mobile satellite services and the role of Inmarsat

This paper analyses the problems faced by developing countries in extending telecommunications to remote and rural areas. It identifies some possible technical solutions using mobile satellite services, especially in specialized niche markets, but also ways in which telecommunications can be made more widely available to populations in rural and remote areas. Although means must be found to finance such development, the paper highlights the necessity of implementing policy and regulatory frameworks conducive to the availability of mobile satellite services.     

Telecommunications evolution and inequities of current tax policies: A case analysis for New Jersey

Telecommunications technologies, services and regulatory policies have been on a rapid spiral of evolution in recent years. However, state policies on taxation of telecommunications services and service providers and the systems of compensation of local governments for the use of public resources by cable television and telecommunications companies, have not kept pace with this rapid change. This paper examines the case of the State of New Jersey. It provides a baseline profile of revenues, taxes and user fees of telecommunications service providers for 1999 through 2005. The paper illustrates the effect of convergence and discusses the need for updating tax policies.     

Telecommunications for development: findings of the ITU-OECD project

This article presents the main findings of a major research project jointly sponsored by the International Telecommunication Union (ITU) and the Development Centre of the Organisation for Economic Cooperation and Development (OECD). The purpose of the project was to shed some light on the ways in which telecommunications contribute to economic and social development. The author also describes one approach to rural telecommunications explored by the project — the GLODOM concept.     

电信进化论

1876年,亚历山大·贝尔在实验室里不小心将电池酸液溅到了腿上,他赶紧叫喊道:"沃森,快过来,帮帮我。"就这句简单的喊话宣告了现代通信时代的到来。     

EC competition law and the convergence of the telecommunications and broadcasting sectors

This article surveys how convergence is dealt with in the main areas of EC competition law. First, under Article 90 EC Treaty, the Commission has not yet reached a solution to the problems of TOs holding exclusive rights over cable TV networks or providing broadcasting services over their telecommunications networks. Secondly, while the Commission has largely upheld certain policy lines in individual decisions, it has reached markedly different outcomes in the broadcasting and telecommunications sectors. The Commission has not been able successfully to integrate non-economic factors in its competition law analysis. Third, State aid problems are likely to arise in relation with production subsidies and compulsory broadcasting fees. In the end, competition law must still evolve to deal with convergence, but in doing so it is likely to pre-empt regulatory options.     

Appropriate telecommunications for economic development

A vision of improved telecommunications infrastructure leading to dramatic improvements in the economies and the quality of life in developing countries is now supported by an increasing body of evidence. Economic justification of the necessary investment depends on the availability of appropriate low cost technology, such as microprocessor-based digital satellite earth stations costing under $10000. Such technology is technically feasible, but its availability will depend on the emergence of a consensus among telecommunications lenders, borrowers and manufacturers that the benefits can be achieved and therefore the necessary mass market will emerge.