IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v23y1999i5p375-387.html
   My bibliography  Save this article

Local exchange competition in early US network development: considerations for developing countries

Author

Listed:
  • Jayakar, Krishna P.

Abstract

This paper examines the claim that competition between the Bell system and independent telephone companies, and not AT&T's regulated monopoly, was responsible for the rapid growth in telephone penetration in the United States. A mathematical model is developed to test if competition contributed to network expansion, when alternative explanations such as diffusion and economic growth are also taken into account. The model is estimated with time series data on telephone penetration in the US from 1876 to 1982, using both Ordinary Least Squares (OLS) and Feasible Generalized Least Squares (FGLS). The results indicate that local exchange competition is indeed a significant influence on increase in telephone penetration, even in the early stages of network development. This has clear policy implications for the current transition to competition in developing countries.

Suggested Citation

  • Jayakar, Krishna P., 1999. "Local exchange competition in early US network development: considerations for developing countries," Telecommunications Policy, Elsevier, vol. 23(5), pages 375-387, June.
    • Handle: RePEc:eee:telpol:v:23:y:1999:i:5:p:375-387
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596199000208
    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. Mina Baliamoune-Lutz, 2002. "The New Economy and Developing Countries: Assessing the Role of ICT Diffusion," WIDER Working Paper Series DP2002-77, World Institute for Development Economic Research (UNU-WIDER).
    2. Tasneem Zafar & Khalid Aftab, 2007. "Digital Divide: An Econometric Study of the Determinants in Information-poor Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(1), pages 63-96.
    3. 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.
    4. Wallsten, Scott, 2001. "Ringing in the 20th century : the effects of state monopolies, private ownership, and operating licenses on telecommunications in Europe, 1892-1914," Policy Research Working Paper Series 2690, The World Bank.

    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:23:y:1999:i:5:p:375-387. 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.