IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v21y1997i3p251-264.html
   My bibliography  Save this article

Local exchange competition, rate restructuring and universal service

Author

Listed:
  • Cronin, Francis J
  • Colleran, Elisabeth
  • Miller, Michael
  • Raczkowski, Richard

Abstract

Some perceive a dilemma between 'Universal Service' and competition in local telecommunications markets. Universal service objectives have been met primarily by a system of cross-subsidies that keep rates artificially low for some (usually residence) and artificially high for others (usually businesses). Increasingly regulators realize that these subsidies are untenable, but voice concern that cost-based rate restructuring will produce 'rate shock' and lower subscribership. Based on a quantitative analysis, the authors show that rate rebalancing may raise local rates in some cases, but these increases will be more than offset by reductions in intra-LATA toll prices. More importantly, declines in business rates will reduce enduser operating costs, ultimately translating to substantial indirect benefits to all consumers through lower prices for goods and services.

Suggested Citation

  • Cronin, Francis J & Colleran, Elisabeth & Miller, Michael & Raczkowski, Richard, 1997. "Local exchange competition, rate restructuring and universal service," Telecommunications Policy, Elsevier, vol. 21(3), pages 251-264, April.
    • Handle: RePEc:eee:telpol:v:21:y:1997:i:3:p:251-264
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596197000050
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eduardo Saavedra & Xavier Mancero, "undated". "Entry, Cream Skimming, and Competition: Theory and Simulation for Chile's Local Telephony Market," ILADES-UAH Working Papers inv132, Universidad Alberto Hurtado/School of Economics and Business.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:21:y:1997:i:3:p:251-264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.