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Bill and Keep as the Efficient Interconnection Regime?

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  • Wright Julian

    (University of Auckland)

Abstract

In this paper I review the recent paper by DeGraba (2000) that proposes a version of Bill and Keep (called COBAK) as the efficient interconnection regime. I argue while the proposed interconnection regime is suitable for some types of interconnection it would be quite undesirable for others. I show that whether the COBAK approach is suitable for a particular type of interconnection depends on, among other things, the importance of network externalities and on the willingness of called parties versus calling parties to pay for calls.

Suggested Citation

  • Wright Julian, 2002. "Bill and Keep as the Efficient Interconnection Regime?," Review of Network Economics, De Gruyter, vol. 1(1), pages 1-7, March.
    • Handle: RePEc:bpj:rneart:v:1:y:2002:i:1:n:3
    DOI: 10.2202/1446-9022.1002
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    Cited by:

    1. Dewenter, Ralf & Kruse, Jörn, 2011. "Calling party pays or receiving party pays? The diffusion of mobile telephony with endogenous regulation," Information Economics and Policy, Elsevier, vol. 23(1), pages 107-117, March.
    2. Elena GALLO, 2008. "Is There a "Right" Charging Principle with the NGN Advent?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(72), pages 33-50, 4th quart.
    3. Cunningham, Brendan M. & Alexander, Peter J. & Candeub, Adam, 2010. "Network growth: Theory and evidence from the mobile telephone industry," Information Economics and Policy, Elsevier, vol. 22(1), pages 91-102, March.
    4. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    5. Ingo Vogelsang, 2003. "Price Regulation of Access to Telecommunications Networks," Journal of Economic Literature, American Economic Association, vol. 41(3), pages 830-862, September.
    6. Roberto Roson, 2003. "Incentives for the Expansion of Network Capacity in a “Peering” Free Access Settlement," Netnomics, Springer, vol. 5(2), pages 149-159, November.
    7. Harbord, David & Pagnozzi, Marco, 2008. "On-Net/Off-Net Price Discrimination and 'Bill-and-Keep' vs. 'Cost-Based' Regulation of Mobile Termination Rates," MPRA Paper 14540, University Library of Munich, Germany.

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