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Why is the international accounting rate system in terminal decline, and what might be the consequences?

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  • Scanlan, Mark

Abstract

This paper looks at the incentives and opportunities existing in the provision of international telephony and argues that the present accounting rate system is unsustainable. The paper also provides a framework within which current or proposed regulations governing trade in international telecommunications services can be analysed. The enormous profits available in this sector, together with developments in digital and fibre optic technology, are resulting in a breakdown of the Implicit cartel arrangements which have largely prevented operators from on-selling services (a type of arbitrage). However, liberalization by only part of the world will give rise to a potentially serious new problem--monopoly opportunism by operators in non-liberalized countries. The paper analyses this and other potential problems that can be expected to arise in the future.

Suggested Citation

  • Scanlan, Mark, 1996. "Why is the international accounting rate system in terminal decline, and what might be the consequences?," Telecommunications Policy, Elsevier, vol. 20(10), pages 739-753, December.
    • Handle: RePEc:eee:telpol:v:20:y:1996:i:10:p:739-753
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    Cited by:

    1. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.
    2. repec:kap:iaecre:v:12:y:2006:i:4:p:505-522 is not listed on IDEAS
    3. Francesco Castelli & José Luis Gómez Barroso & Claudio Leporelli, 2000. "Global Universal Service and International Settlement Reform," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 69(4), pages 679-694.
    4. 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.

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