Price-cap regulation and service-quality in telecommunications: an empirical study

Resende, Marcelo; Façanha, Luís Otávio

doi:10.1016/j.infoecopol.2003.11.001

Cited by 21 publications

(20 citation statements)

References 18 publications

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“…(). A branch of the empirical literature that includes Façanha and Resende (), Resende and Façanha () and Resende and Tupper () proposed the use of efficiency frontiers for quality by means of data envelopment analysis (DEA) models for the` telecommunications sectors. The adaptation involves interpreting unfavorable quality indicators as inputs we want to diminish and favorable quality indicators as outputs that should be augmented.…”

Section: Introductionmentioning

confidence: 99%

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Marinho

Resende

2019

Ann Public Coop Econ

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The paper undertakes a dynamic analysis for service quality in the electricity distribution in Brazil between 2010 and 2014 based on Malmquist indexes constructed upon Data Envelopment Analysis (DEA) distance functions. The motivation for the less usual consideration of efficiency frontiers for service quality, that does not rely on traditional inputs and outputs but rather on quality indicators, builds on previous static applications in the context of telecommunications. The analysis considers undesirable technical indicators for quality as inputs and desirable consumer satisfaction indicators for quality as outputs in the efficiency frontier analysis. The bootstrap-corrected Malmquist indexes indicated service quality deterioration in 38.1 per cent, quality stagnation in 40.5 per cent and quality improvement only in 21.4 per cent of the cases. When one decomposes the Malmquist index, the evidence does not suggest relevant frontier shifts and indicates a dominant role for the catch-up effect. Finally, Malmquist indexes are regressed against variables that may portray heterogeneities, such as firm size, service area, density, ownership and regional dummies in terms of a well-known two-stage procedure. The mostly weak significance results reinforce the plausibility of the initial analysis.

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Section: Introductionmentioning

confidence: 99%

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Marinho

Resende

2019

Ann Public Coop Econ

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“…This shortcoming has led to inconsistent results mainly due to two problems: (a) serial correlation among the DEA estimates and (b) correlation of the inputs and outputs used in the first stage with second-stage environmental variables (Simar and Wilson, 2007). The serial correlation problem arises because the efficiency estimates of productivity change depend on the performance of the Resende and Fac¸anha (2005) USA local telephony, 32 companies Average interval in days from commitment date to provision of installation service (residential and business users) -complaints concerning service quality made by residential and business users to LECs -number of initial out-of-service trouble reports for residential and business users -number of all other trouble reports for residential and business users -trouble reports remaining unresolved within 30 days of the initial trouble report (residential and business users)…”

Section: Methodological Approachmentioning

confidence: 99%

“…In turn, other studies have focused on the determinants of efficiency, such as regulation (Uri, 2000(Uri, , 2001, as well as liberalization (Kang, 2009(Kang, , 2010Yang and Chang, 2009). Lastly, the concept of quality performance in telecommunications using DEA has been introduced by Fac¸anha and Resende (2004) and Resende and Fac¸anha (2005).…”

Section: Background Analysis On Efficiency and Productivity In Tmentioning

confidence: 99%

Productivity change and its determinants among leading mobile operators in Europe

Usero

Asimakopoulos

2013

Applied Economics

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The European mobile telecommunications industry has seen increased competition and market saturation in recent years, so improving productivity will become crucially important for mobile operators in the near future. This study adopts a bootstrap Malmquist index approach to estimate productivity change among a sample of 23 of Europe's leading mobile operators over the 2008 to 2009 period. Using a second-stage regression, this article also analyses the determinants of productivity changes in terms of regulation, competition and ownership structure. The results show that mobile companies operating in countries that have recently joined the EU have a positive association with productivity change, in contrast to their counterparts in South-East Europe. Concerning market competition, the leading mobile operators that experience higher productivity changes operate in more concentrated markets. The results also indicate that international mobile operators perform better in terms of productivity change than their national equivalents. Finally, some of the implications of the findings for mobile operators' management and policymakers are provided.

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“…Ai and Sappington (1998) investigated specific service quality measures to reveal patterns masked by aggregation of regulatory regimes and concluded that IR is associated with fewer complaints but longer repair times. While Uri (2003) and Resende and Facanha (2004) conclude that service quality has degraded between 1991 and 2000; Banerjee (2003) shows evidence to the contrary and concludes that average quality has not worsened, and has even improved. Ai et al (2004) show incentive regulation (compared to earnings share regulation) correlated with both higher and lower service quality levels on different dimensions.…”

Section: Introductionmentioning

confidence: 99%

Identifying leaders and laggards—A method and application to US local telephone companies

Sastry¹

2009

Telecommunications Policy

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Price-cap regulation and service-quality in telecommunications: an empirical study

Cited by 21 publications

References 18 publications

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Productivity change and its determinants among leading mobile operators in Europe

Identifying leaders and laggards—A method and application to US local telephone companies

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