Access costs and entry in the local telecommunications network: a case for de-averaged rates

Maher, Maria

doi:10.1016/s0167-7187(97)00049-0

Cited by 18 publications

(11 citation statements)

References 6 publications

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“…17. For example, see Maher (1999) for local telecommunications, and Joskow (1989) for electricity. 18.…”

Section: Regulatory Risk and The Design Of Regulatory Mechanismsmentioning

confidence: 99%

“…For example, Hausman et al (1993) find that increased economic efficiency from a re-balancing of tariffs in the United States did not lead to decreased penetration rates. 67 In addition, Maher (1999) estimates the cost of local access to the telecommunications network in one of the major states in the United States and finds that, contrary to public opinion, de-averaged (i.e. nonuniform) cost-based rates at the local level also do not threaten USO.…”

mentioning

confidence: 99%

“…As this implies higher basic monthly rental fees, they argue that these changes need to be accompanied by a targeted subsidy programme for low-income households. Maher (1999) also argues for the use of direct transfers and the removal of cross-subsidies since distortions in the tariff structure only lead to inefficiencies by inducing the wrong incentives. If the concern is about the impact on low-income households, and in particular those in rural areas, alternatives to cross-subsidies include direct cash transfers to consumers or direct subsidies to operators serving remote rural areas at prices below costs or meeting other social obligations.…”

mentioning

confidence: 99%

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The Implementation and the Effects of Regulatory Reform: Past Experience and Current Issues

2000

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“…17. For example, see Maher (1999) for local telecommunications, and Joskow (1989) for electricity. 18.…”

Section: Regulatory Risk and The Design Of Regulatory Mechanismsmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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The Implementation and the Effects of Regulatory Reform: Past Experience and Current Issues

2000

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“…For example, Hausman et al (1993) find that increased economic efficiency from a re-balancing of tariffs in the United States did not lead to decreased penetration rates. 72 In addition, Maher (1999) estimates the cost of local access to the telecommunications network in one of the major states in the United States and finds that, contrary to public opinion, de-averaged cost-based rates at the local level also do not threaten USO. 73 In light of the growing evidence that re-balancing of prices has increased efficiency without the resulting loss in penetration rates, a number of OECD countries have undertaken some re-balancing, see Figure 6.…”

mentioning

confidence: 99%

“…As this implies higher basic monthly rental fees, they argue that these changes need to be accompanied by a targeted subsidy programme for low-income households. Maher (1999) also argues for the use of direct transfers and the removal of cross-subsidies since distortions in the tariff structure only lead to inefficiencies by inducing the wrong incentives. If the concern is about the impact on low-income households, alternatives to cross-subsidies include direct cash transfers to consumers or direct subsidies to operators serving remote rural areas at prices below costs or meeting other social obligations.…”

mentioning

confidence: 99%

The Implementation and the Effects of Regulatory Reform

Gönenç

Maher

Nicoletti

2000

OECD Economics Department Working Papers

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93006 Document complet disponible sur OLIS dans son format d'origineComplete document available on OLIS in its original format ECO/WKP(2000)24 2 ABSTRACT/RÉSUMÉThis paper reviews trends, outcomes and issues in regulatory reform in OECD countries. First, it summarises the evidence on the evolution of regulatory environments and the economy-wide and sectoral effects of reforms (including privatisation) in both competitive and non-competitive industries in the past two decades. Turning to network industries, it then discusses the main policy issues raised by the need to adapt the regulation of the noncompetitive segments of these industries to increasing competition in liberalised markets. It focuses on four topics that dominate the debate over regulatory reform: i) the move from command-and-control to incentive-based regulatory approaches based on the removal of entry barriers in competitive markets, the adoption of price-cap mechanisms and the design of efficient and competitively-neutral charges for accessing the fixed networks of incumbents; ii) the pros and cons of structural measures such as privatisation, and vertical and horizontal separation of formerly integrated monopolies; iii) the ways to ensure that important non-economic objectives, such as universality of service, continue to be achieved in a more competitive environment at a minimum cost for society; and iv) the design of regulatory mechanisms and institutions that encourage best practice regulation.JEL classification: L50, L51, L43, K23, L9.

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Economies of scale for broadband in rural United States

Glass

Stefanova

2012

J Regul Econ

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Empirical cost models for wireline broadband circuits are used to test whether economies of scale exist in rural areas and whether new Ethernet technology lowers the unit cost of broadband transportation. Previous studies have shown small or nonexistent economies of scale for wireless technology. Results from earlier studies also demonstrated economies of scale for voice-only wireline networks which diminished with network size and were fully exploited for large networks. To our knowledge presence of economies of scale for wireline broadband networks has not been tested, certainly not in rural United States. We use data supplied by more than 500 rural local exchange carriers and find economies of scale for small rural wireline broadband providers. Market size limitations appear to prevent rural telephone companies from fully exploiting unit cost savings. The data also show increasing capacity over existing broadband connections is subject to substantial economies of scale, but such economies diminish quickly as bandwidth capacity increases. The data do not support the hypothesis that Ethernet technology reduces broadband transmission cost.

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Access costs and entry in the local telecommunications network: a case for de-averaged rates

Cited by 18 publications

References 6 publications

The Implementation and the Effects of Regulatory Reform: Past Experience and Current Issues

The Implementation and the Effects of Regulatory Reform: Past Experience and Current Issues

The Implementation and the Effects of Regulatory Reform

Economies of scale for broadband in rural United States

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