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Dynamic performance analysis of U.S. wireline telecommunication companies

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  • Moreno, Plácido
  • Lozano, Sebastián
  • Gutiérrez, Ester

Abstract

Assessing the changes over time in the efficiency of firms participating in competitive markets has always been a major concern to researchers and experts alike. With respect to the US wireline telecommunications sector, recent changes in unbundling regulations, as well as intermodal competition and mergers, have just increased uncertainty in a sector still marked by the Telecommunications Act of 1996. Although Data Envelopment Analysis (DEA) has become a methodology commonly used in many efficiency assessment applications, in the telecommunications context there is a need to implement an approach that takes into account carry-over activities between consecutive years; because of a wide customer base, financial long-term planning and investments in network elements and facilities are crucial for Local Exchange Carriers (LECs) to succeed. To that end, a Dynamic DEA application is formulated in this paper to evaluate the Incumbent LECs' (ILECs) performance from 1997 to 2007. Finally, a regression analysis has been carried out to establish the impact of competition and regulatory schemes upon carriers' efficiency. The results show that local competition has worsened efficiency, whereas neither intermodal competition nor incentive regulation has such a clear influence.

Suggested Citation

  • Moreno, Plácido & Lozano, Sebastián & Gutiérrez, Ester, 2013. "Dynamic performance analysis of U.S. wireline telecommunication companies," Telecommunications Policy, Elsevier, vol. 37(6), pages 469-482.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:6:p:469-482
    DOI: 10.1016/j.telpol.2012.12.001
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    References listed on IDEAS

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    6. Asimakopoulos, Grigorios & Whalley, Jason, 2017. "Market leadership, technological progress and relative performance in the mobile telecommunications industry," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 57-67.
    7. Li, Ying & Chiu, Yung-ho & Lin, Tai-Yu, 2019. "Coal production efficiency and land destruction in China's coal mining industry," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    8. Konstantinos Petridis & Alexander Chatzigeorgiou & Emmanouil Stiakakis, 2016. "A spatiotemporal Data Envelopment Analysis (S-T DEA) approach: the need to assess evolving units," Annals of Operations Research, Springer, vol. 238(1), pages 475-496, March.

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