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Prices for long-distance voice telephony in Germany

Author

Listed:
  • Brunekreeft, Gert
  • Gross, Wolfgang

Abstract

This paper examines the first 16 months of competition in the German market for long-distance voice telephony on the fixed network. It concentrates on price level and price structure. Competition induced by the entry of both network operators and switch-based service providers decreased the price level substantially. Furthermore, after initial attempts to design innovative price structures, most firms gave up differentiation, and instead charged uniform prices for long-distance calls for residential customers. Moreover, the decrease in the price level seems to have induced a shift in the peak-load structure, which raises concern about the regulation of the peak-load structure of interconnection charges.

Suggested Citation

  • Brunekreeft, Gert & Gross, Wolfgang, 2000. "Prices for long-distance voice telephony in Germany," Telecommunications Policy, Elsevier, vol. 24(10-11), pages 929-945, November.
    • Handle: RePEc:eee:telpol:v:24:y:2000:i:10-11:p:929-945
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    Citations

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    Cited by:

    1. Gabelmann, Anne, 2001. "Regulating European telecommunications markets: Unbundled access to the local loop outside urban areas," Discussion Papers 81, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Günter Knieps, 2004. "Privatisation of Network Industries in Germany: A Disaggregated Approach," CESifo Working Paper Series 1188, CESifo.
    3. Knieps, Günter, 2006. "The different role of mandatory access in German regulation of railroads and telecommunications," Discussion Papers 104 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Knieps, Günter, 2004. "Privatisation of Network Industries in Germany: A Disaggregated Approach," Discussion Papers 100, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Cherry, Barbara A. & Bauer, Johannes M., 2002. "Institutional arrangements and price rebalancing: empirical evidence from the United States and Europe," Information Economics and Policy, Elsevier, vol. 14(4), pages 495-517, December.
    6. Knieps, Günter, 2002. "Wholesale, retail pricing in telecom markets," Discussion Papers 84, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. 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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