Price Structure and Network Externalities in the Telecommunications Industry

Price Structure and Network Externalities in the Telecommunications Industry PDF Author: Atsushi Iimi
Publisher: World Bank Publications
ISBN:
Category : Access to Markets
Languages : en
Pages : 43

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Book Description
Many developing countries have experienced significant developments in their telecommunications network. Countries in Africa are no exception to this. The paper examines what factor facilitates most network expansion using micro data from 45 fixed-line and mobile telephone operators in 18 African countries. In theory the telecommunications sector has two sector-specific characteristics: network externalities and discriminatory pricing. It finds that many telephone operators in the region use peak and off-peak prices and termination-based price discrimination, but are less likely to rely on strategic fee schedules such as tie-in arrangements. The estimated demand function based on a discreet consumer choice model indicates that termination-based discriminatory pricing can facilitate network expansion. It also shows that the implied price-cost margins are significantly high. Thus, price liberalization could be conducive to development of the telecommunications network led by the private sector. Some countries in Africa are still imposing certain price restrictions. But more important, it remains a policy issue how the authorities should ensure reciprocal access between operators at reasonable cost.

Price Structure and Network Externalities in the Telecommunications Industry

Price Structure and Network Externalities in the Telecommunications Industry PDF Author: Atsushi Iimi
Publisher: World Bank Publications
ISBN:
Category : Access to Markets
Languages : en
Pages : 43

Get Book Here

Book Description
Many developing countries have experienced significant developments in their telecommunications network. Countries in Africa are no exception to this. The paper examines what factor facilitates most network expansion using micro data from 45 fixed-line and mobile telephone operators in 18 African countries. In theory the telecommunications sector has two sector-specific characteristics: network externalities and discriminatory pricing. It finds that many telephone operators in the region use peak and off-peak prices and termination-based price discrimination, but are less likely to rely on strategic fee schedules such as tie-in arrangements. The estimated demand function based on a discreet consumer choice model indicates that termination-based discriminatory pricing can facilitate network expansion. It also shows that the implied price-cost margins are significantly high. Thus, price liberalization could be conducive to development of the telecommunications network led by the private sector. Some countries in Africa are still imposing certain price restrictions. But more important, it remains a policy issue how the authorities should ensure reciprocal access between operators at reasonable cost.

Price Structure and Network Externalities in the Telecommunications Industry

Price Structure and Network Externalities in the Telecommunications Industry PDF Author: Atsushi Iimi
Publisher:
ISBN:
Category :
Languages : en
Pages :

Get Book Here

Book Description
Many developing countries have experienced significant developments in their telecommunications network. Countries in Africa are no exception to this. The paper examines what factor facilitates most network expansion using micro data from 45 fixed-line and mobile telephone operators in 18 African countries. In theory the telecommunications sector has two sector-specific characteristics: network externalities and discriminatory pricing. It finds that many telephone operators in the region use peak and off-peak prices and termination-based price discrimination, but are less likely to rely on strategic fee schedules such as tie-in arrangements. The estimated demand function based on a discreet consumer choice model indicates that termination-based discriminatory pricing can facilitate network expansion. It also shows that the implied price-cost margins are significantly high. Thus, price liberalization could be conducive to development of the telecommunications network led by the private sector. Some countries in Africa are still imposing certain price restrictions. But more important, it remains a policy issue how the authorities should ensure reciprocal access between operators at reasonable cost.

Access Pricing Under the Presence of Network Externalities in the Telecommunications Industry

Access Pricing Under the Presence of Network Externalities in the Telecommunications Industry PDF Author: Qinjie Yang
Publisher:
ISBN:
Category : Telecommunication
Languages : en
Pages : 186

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Book Description


Telecommunications Pricing

Telecommunications Pricing PDF Author: Bridger M. Mitchell
Publisher: Cambridge University Press
ISBN: 9780521426787
Category : Business & Economics
Languages : en
Pages : 332

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Book Description
Systematically reviews recent innovations in the economic theory of pricing and extends results to the conditions which characterize telecommunications markets

Telecommunications Transformation

Telecommunications Transformation PDF Author: Erik Bohlin
Publisher: IOS Press
ISBN: 9789051993660
Category : Political Science
Languages : en
Pages : 438

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Book Description
This volume of papers by leading telecommunications experts from around the world addresses in an integrated fashion the ongoing transformation of telecommunications. The book covers technology, economics, the law, and other social sciences and focuses on both theory and policy. Major topics include the impact of new technology on networks and users, network evolution and firm structure and strategy, pricing and interconnection, demand and policy for the Internet, and competition and the United States Telecommunications Act of 1996. The papers in this book represent a unique integration of topics, appropriate for a converging industry, and they also include the first wide-ranging analysis and critique of telecommunications policy in the United States following the 1996 Act.

Telecommunications Demand in Theory and Practice

Telecommunications Demand in Theory and Practice PDF Author: L.D. Taylor
Publisher: Springer Science & Business Media
ISBN: 9401108927
Category : Business & Economics
Languages : en
Pages : 422

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Book Description
Telecommunications Demand in Theory and Practice, which builds upon the author's seminal 1980 book, Telecommunications Demand: A Review and Critique, provides comprehensive analyses of the determinants and structure of telecommunications demands in the United States and Canada. Theory and empirical application receive equal emphasis with a heavy focus on the developments and econometric research since the divestiture of AT&T in 1984. For the first time, a detailed theoretical analysis of business telecommunications demand on subscriber and usage consumption externalities is presented. Telecommunications Demand in Theory and Practice is without peer in the documentation and analysis of price elasticities of demand for telecommunications services. This new book also includes a comprehensive bibliography with over 500 entries related to telecommunications demand and pricing. Telecommunications Demand will appeal to both academic and consulting economists, telecommunications industry analysts and regulators, and to teachers of courses in applied econometrics and regulated industries.

Europe's Network Industries

Europe's Network Industries PDF Author: Lars Bergman
Publisher: Centre for Economic Policy Research
ISBN: 9781898128373
Category : Business & Economics
Languages : en
Pages : 286

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Book Description
This report is the first in a new series, Monitoring European Deregulation (MED), launched by CEPR and SNS Förlag in 1997. The MED Reports feature new, policy-oriented research on the liberalization of the European markets of the major 'network industries:' telecommunications, energy, air transportation, rail, and water. Addressed to a wide audience of both academics and European decisionmakers in the private-sector and policy communities, at both the national and EU level, the series will play an important role in informing the policy debate and influencing current thinking on these issues.

The Economics and Regulation of Network Industries

The Economics and Regulation of Network Industries PDF Author: Ingo Vogelsang
Publisher: Cambridge University Press
ISBN: 110880781X
Category : Political Science
Languages : en
Pages : 94

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Book Description
Have you ever wondered how your telephone company or Internet service provider can give you access to almost all people in the world, or how electricity suppliers can compete with each other if there is only one electric supply line passing through your street? This Element deals with the economics and public regulation of such network industries. It puts particular emphasis on the specific economic concepts used for analyzing them and on the regulatory reform movement and the compatibility of regulation and competition. Worldwide most of these industries have changed dramatically in recent years, telecommunications in particular. Network industries mostly exhibit economies of scale in production and similar economies in consumption. Both of these properties cause market power problems that often require industry-specific regulation. However, due to technological and market changes network policies have moved on from end-user regulation to wholesale regulation and in some cases to deregulation.

The Economics of Mobile Telecommunications

The Economics of Mobile Telecommunications PDF Author: Harald Gruber
Publisher: Cambridge University Press
ISBN: 1139444476
Category : Business & Economics
Languages : en
Pages : 343

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Book Description
The mobile telecommunications industry is one of the most rapidly growing sectors around the world. This book offers a comprehensive economic analysis of the main determinants of growth in the industry. Harald Gruber demonstrates the importance of competitive entry and the setting of technological standards, both of which play a central role in their contribution to the fast diffusion of technology. Detailed country studies provide empirical evidence for the development of the main themes: the diffusion of mobile telecommunications services, the pricing policies in network industries, the role of entry barriers such as radio spectrum and spectrum allocation procedures. This research-based survey will appeal to a wide range of applied industrial economists within universities, government and the industry itself.

Pricing and Consumer Behavior in the Wireless Telecommunications Industry

Pricing and Consumer Behavior in the Wireless Telecommunications Industry PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The wireless telecommunications industry has seen extraordinary growth over the last decade and associated with the widespread adoption of wireless phone service are peculiar pricing schemes such as three-part tariffs and on-net/off-net pricing. This dissertation examines the interaction of consumer behavior and pricing schemes in the wireless telecommunications industry. Chapter 2 addresses in a theoretical model the interaction of consumers' consumption patterns over the billing cycle with the monopolist's provision of access. The service provider designs a menu of contracts to screen privately informed consumers who learn about their actual demand in a sequential manner over the billing period. The model shows that the distorted contracts in the profit-maximizing menu of tariff options are characterized by an increasing marginal price schedule. Three-part pricing schemes commonly observed in the wireless telecommunications industry consisting of a fixed monthly fee, an allowance of minutes and a positive marginal price for minutes consumed in excess of the allowance can be reconciled with rational consumer behavior if the consumer model accounts for the sequential consumption pattern over the billing cycle. Chapter 3 examines termination-based price discrimination, where the price a mobile customers pays for a call to a subscriber on another network (off-net) exceeds the price for a call to a subscriber on the same network (on-net). A standard Hotelling-type model of network competition is combined with closed user groups such as a family or a group of friends who are able to internalize tariff-mediated network externalities when choosing their network. The model results show that termination differentials can reduce social welfare and contradict the commonly held belief that the presence of closed user groups can mitigate networks' market power. The empirical analysis in Chapter 4 presents a structural consumer model of tariff choice and consumption in the prese.