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The rapid pace of technological change is placing the world's telephone companies in a very difficult position. Fiber optics cables, wireless telephones, digital signal compression, and sophisticated new switching equipment are lowering the cost of providing service and opening the gates to new competition. At the same time, these new technologies are providing the telephone companies with a wide array of new market opportunities. Unfortunately, their status as regulated carriers makes it difficult to exploit these new opportunities and to fend off competitive assaults on their traditional telephone business. As long as they are regulated, they can be accused of using their monopoly services to cross-subsidize new competitive ventures. But partial deregulation and open entry would be a catastrophe for them unless they were allowed to revise their rate structure. There is a widespread misconception that the U.S. telecommunications industry has been "deregulated" and that Canadian authorities are following the U.S. lead. In fact, most services remain regulated, even though some markets, such as long-distance services, equipment sales and rentals, and local services, have been opened up. This book reviews the recent changes in the structure of U.S. and Canadian telecommunications industries and the changes in regulatory policy on both sides of the border. The authors analyze the effects of these changes in regulation on telephone rates in both the local and long-distance markets with particular emphasis on the impacts of regulatory reforms and competition on long-distance rates. They use their results to suggest how regulation should be structured to allow competition to replace monopoly on the road to the information superhighway. The authors contend that for decades misguided regulation of the telephone sector in both Canada and the U.S. denied consumers the benefits of competition, distorted local and long-distance telephone rates, and blocked en
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.
Presents industry reviews including a section of "trends and forecasts," complete with tables and graphs for industry analysis.
By providing the latest information on mobile phone pricing structures and trends, this book highlights a number of areas for policy review and decision.