Competition and Price Dispersion in International Long-distance Calling

This paper examines the relationship between changes in telecommunications provider competition on international long-distance routes and changes in prices. Overall, increased competition is associated with significantly lower prices to consumers of long-distance services. However, the relationship between competition and price varies according to the type of long-distance plan considered. For the plans frequently selected by price-conscious consumers, increased competition on a route is associated with lower prices. In contrast, for the basic international plans that are the default selection for consumers, increased competition on a route is actually associated with higher prices. Thus price dispersion appears to increase as competition increases. The views expressed in this paper are those of the author and not necessarily those of the OECD. I thank two anonymous referees, Joe Farrell, John Harkrider, Jim Lande, Bob Majure, Carl Willner and seminar participants at the FCC for their helpful comments. Special thanks for aid with data to Linda Blake, Mark Uretsky, Jim Lande, R.L. Smith and Carl Willner.     

Are Local TV Markets Separate Markets?

In sweeping revisions the US Telecommunications Act of 1996 relaxed rules respecting broadcast TV ownership regulations. In particular Congress directed the Federal Communication Commission (FCC) to conduct a rulemaking on whether the 'duopoly rules' preventing businesses from owning multiple broadcast stations in the same market should be relaxed, modified or eliminated. Naturally, this directive raises questions concerning competition. Specifically, would concentration and consolidation of local media firms have deleterious effects on advertising rates, output and consumer choice? In the present paper we examine, using own-price and cross-price elasticity demand estimates, the question of whether local TV markets constitute a separate market for advertising. Our structural tests, with appropriate caveats, reveal that local TV advertising is not, by itself, a distinct market - one relevant for antitrust action.     

Internationalisation in the telecommunications services industry: Literature review and research agenda

A review of 356 publications addressing internationalisation aspects of the telecommunications services industry (TSI) shows a growing body of contributions, mainly covering research themes like settlement and regulation policy, strategic alliances and incumbents’ reactions to deregulation as well as opening of markets in-depth until recently. Wireline telephony TSI has been the dominant segment in most contributions, while the mobile or broadband Internet segments only featured in more recent work. Segment characteristics like non-uniform barriers to entry, different reasons for alliances and non-uniform levels of internationalisation differentiate these TSI segments pose a number of additional questions concerning telecom firms’ internationalisation strategy and success promising for future research.     

A tale of two reforms: Telecommunications reforms in Mexico

The telecommunications industry in most parts of the world experienced a round of market-led reforms in the early 1990s. After a period of sustained development in the sector numerous countries are moving toward government-led network deployments. Even though it may appear as if the pendulum swung back to the previous 1990s period of government-led development, this paper argues persistent regional disparities in access and adoption of new technologies generated a need for public action in the second reform. By analyzing the Mexican case and comparing the policy choices in each one of the reforms, this paper sheds light on how particular policy decisions in the first reform generated inefficient market solutions and were key in creating a perception of the need for stronger public action. In both reforms, the policymaking process was carried out by a small elite that negotiated its contents behind closed doors. Paradoxically, within the transition to democracy, in the second reform, the leaders of the major political parties established a closed-door agreement. Even though the 2013 telecommunications reform improved the status quo, it did not decrease market concentration and, once again, we face low levels of investment and high levels of digital exclusion. By reconstructing the policy decision process in each reform, this paper argues that the closed-door policy choices taken, which were the result of the interaction of political actors with their own agenda and interests, hampered the most efficient solutions.     

近年来哈萨克斯坦非能源产业发展现状

在全世界聚焦哈萨克斯坦石油、天然气产业和哈萨克斯坦从石油、天然气等传统能源获得巨大利益之时,哈萨克斯坦政府在积极推动本国非能源产业的发展,如粮食产业的恢复,核能等新能源的研发,轻工业产能产量的提高和产值的增加等。本文以纺织业为例,深入分析了该产业在哈萨克斯坦发展的现状、遇到的问题和所采取的对策,以此管窥哈萨克斯坦轻工业发展的真实现状。     

无锡电信业顾客价值分析

企业竞争力的本质是为顾客创造比竞争对手更高的价值。电信市场的激烈竞争使得研究电信业顾客价值成为必要。文章通过问卷调查的方式在无锡市对电信业的用户进行随机调查,采用因子分析法对收集的数据进行分析处理,寻找衡量电信业顾客价值指标的基本结构,进而提出提高电信行业顾客价值的建议。     

‘Mainline’ telecommunications infrastructure, levels of development and economic growth: Evidence from a panel of developing countries

This paper assesses the growth impact of telecommunications infrastructure investment in developing countries by subjecting country-specific data on mainline tele-density and per capita growth to a Granger causality test within a panel cointegration framework. The results suggest that growth effects vary widely across country groupings reflecting different levels of development. Mainline tele-density and per capita growth strongly reinforce each other for countries that are relatively less developed. The reinforcement effect is even stronger for emerging countries that can be identified by their higher than average growth rates. In contrast, there is, at best, weak evidence of bi-directional causal links between the two variables for countries that are relatively more developed. These differences in the mainline tele-density and per capita growth relationships suggest that investment in telecommunications infrastructure, with its potential to generate high growth return, may serve as the critical tool for driving the growth and development process forward in the less developed countries.     

The effects of lower mobile termination rates in South Africa

The effects of a 90% reduction in mobile termination rates (MTRs) are evaluated over the period between 2009 and 2017 in South Africa. Prepaid prices and quality-adjusted postpaid prices declined by over 40%. However, only approximately 30% of the decline in prepaid prices and 60% of the reduction in quality-adjusted postpaid prices can be explained by lower MTR costs. On-net and off-net prepaid prices converged as MTR costs dropped. Regulators concerned about high retail prices and differences between on-net and off-net prices should reduce MTRs.     

Laffont and Tirole's Competition in Telecommunications : A View From the US

This article briefly reviews Competition in Telecommunications by Laffont andTirole (2000); it presents the major conclusions of the book and corrects certain errors. In addition, this article treats related topics, some specific to the US telecommunications industry. In US telecommunications access to incumbents facilities are priced based on cost model estimates. Several of the important sources of misunderstandings of telecommunications costs and cost estimates are described including: multiple meanings of 'access,'meanings of cross-subsidy; nature of loop costs; the many dimensions of marginal costs in telecommunications, misuses of long-run cost concepts; and misuses of 'most efficient' provider assumptions. The methods of cost calculations and legal and regulatory requirements in the US are described, as are the implications for incentive regulation, changing technology, efficient pricing, and measures of efficient competitive entry.     

On the role of telecommunications in development

Numerous studies document the relationship between telecommunications and economic development. The main types and relative merits of these are summarized. The paper argues that more of the same will do little to help promote accelerated telecommunications investment in developing countries as needed. Rather, the efforts should now mainly concentrate on conveying existing sector knowledge to governments and international agencies. The paper focuses on examples of simple, proven tools which can be used to supplement telecommunications project analysis for this purpose.