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The Welfare Costs of the Australian Telecommunications Pricing Structure

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  • ROBERT ALBON

Abstract

Australian telecommunications pricing has developed in an environment which is uncompetitive, subject to pressures to cross‐subsidize and insufficiently cognizant of relevant costs and demands. STD and local call charges are too high and access charges too low. Compared with a structure which charged marginal usage costs and retrieved costs of subscribers' loops and overheads through access charges, the pricing structure has an estimated efficiency cost of about $240 m in 1985–86.

Suggested Citation

  • Robert Albon, 1988. "The Welfare Costs of the Australian Telecommunications Pricing Structure," The Economic Record, The Economic Society of Australia, vol. 64(2), pages 102-112, June.
    • Handle: RePEc:bla:ecorec:v:64:y:1988:i:2:p:102-112
    DOI: 10.1111/j.1475-4932.1988.tb02045.x
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    References listed on IDEAS

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    Cited by:

    1. Alberto Alesina & David W. R. Gruen & Matthew T. Jones, 1991. "Fiscal Adjustment, The Real Exchange Rate and Australia's External Imbalance," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 38-51, July.
    2. Quiggin, John, 1997. "Efficiency versus social optimality: The case of telecommunications pricing," Information Economics and Policy, Elsevier, vol. 9(4), pages 291-308, December.
    3. Robert Albon, 1989. "The Revenue and Efficiency Implications of Timed Local Calls," Australian Journal of Management, Australian School of Business, vol. 14(2), pages 115-126, December.

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