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International telecommunications settlement arrangements : An unsustainable inheritance?

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  • Ergas, Henry
  • Paterson, Paul

Abstract

Thirty years ago the world's carriers established a system of international payments which recognized their interdependence and the requirement to provide services jointly. The accounting rate arrangements, as then devised, met this need while creating incentives for capacity expansion and network growth. Today's challenge is to modify these arrangements in the light of the new phase of development of the telecommunications network: a phase in which the network is no longer supply- constrained but demand-driven; in which the carriers can no longer exercise tight control over the network and its uses; and in which increasingly powerful customers and competitors will set the pace. Reform of the present arrangements is both inevitable and desirable.

Suggested Citation

  • Ergas, Henry & Paterson, Paul, 1991. "International telecommunications settlement arrangements : An unsustainable inheritance?," Telecommunications Policy, Elsevier, vol. 15(1), pages 29-48, February.
    • Handle: RePEc:eee:telpol:v:15:y:1991:i:1:p:29-48
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    1. repec:kap:iaecre:v:12:y:2006:i:4:p:505-522 is not listed on IDEAS
    2. Cave, Martin & Donnelly, Mark P., 1996. "The pricing of international telecommunications services by monopoly operators," Information Economics and Policy, Elsevier, vol. 8(2), pages 107-123, June.
    3. James Alleman & Gary Madden & Scott Savage, 2000. "Trade imbalance in international message telephone services," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1311-1321.
    4. Madden, Gary & Savage, Scott J, 2001. "Regulation and International Telecommunications Pricing Behaviour," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(1), pages 247-265, March.
    5. Wallsten, Scott J., 2000. "Telecom traffic and investment in developing countries : the effects of international settlement rate reductions," Policy Research Working Paper Series 2401, The World Bank.
    6. Genschel, Philipp & Werle, Raymund, 1992. "From National Hierarchies to International Standardization: Historical and Modal Changes in the Coordination of Telecommunications," MPIfG Discussion Paper 92/1, Max Planck Institute for the Study of Societies.
    7. Gary Madden & Scott J. Savage, 2000. "Market Structure, Competition, and Pricing in United States International Telephone Service Markets," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 291-296, May.
    8. Simran Kahai & Paramjit Kahai & Adrian Leigh, 2006. "Traditional and Non-Traditional Determinants of Accounting Rates in International Telecommunications," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(4), pages 505-522, November.
    9. Edmond Baranes & Marie-Hélène Jeanneret, 1996. "Ouverture des réseaux de télécommunications : problèmes et enjeux," Revue Économique, Programme National Persée, vol. 47(6), pages 1297-1308.

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