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The role of resale entry in promoting local exchange competition

Author

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  • Randolph Beard, T
  • Kaserman, David L
  • Mayo, John W

Abstract

This article examines the role of resale entry in achieving competition in local exchange telecommunications markets in the US under the Telecommunications Act of 1996. Contrary to the claims of many incumbent local exchange providers, we argue that: (1) resale entry produces direct competitive benefits; (2) resale entry will not reduce incumbent incentives to invest in the local network; and (3) resale entry will not reduce more beneficial facilities-based entry. We also examine avoided cost estimation issues in determining wholesale discounts.

Suggested Citation

  • Randolph Beard, T & Kaserman, David L & Mayo, John W, 1998. "The role of resale entry in promoting local exchange competition," Telecommunications Policy, Elsevier, vol. 22(4-5), pages 315-326, May.
    • Handle: RePEc:eee:telpol:v:22:y:1998:i:4-5:p:315-326
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    Cited by:

    1. Byun Jeong Wook & Kim Sung-Hwan, 2015. "The Effect of Vertically Differentiated Entry Under Retail-Minus Access Pricing," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 747-767, April.
    2. Beard, T. Randolph & Ford, George S. & Koutsky, Thomas M., 2005. "Mandated access and the make-or-buy decision: the case of local telecommunications competition," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(1), pages 28-47, February.
    3. Kaserman, David L. & Mayo, John W., 1999. "Regulatory policies toward local exchange companies under emerging competition: guardrails or speed bumps on the information highway?," Information Economics and Policy, Elsevier, vol. 11(4), pages 367-388, December.
    4. Kim, Byung Woon & Park, Joonho & Youl Ko, Chang, 2013. "Cost allocation of WCDMA and wholesale pricing for mVoIP and data services," Telecommunications Policy, Elsevier, vol. 37(1), pages 35-47.
    5. Gerpott, Torsten J. & Massengeil, Sven W., 2002. "Strategic determinants of reseller profitability in the US wireline telecommunications market," Information Economics and Policy, Elsevier, vol. 14(1), pages 111-131, March.

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