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Affordability of basic telephone service: an income distribution approach

Author

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  • Milne, Claire

Abstract

Liberalisation usually requires price rebalancing. In low-income countries, this often leads to residential rentals being priced are much higher than before, which can threaten the affordability of basic telephone service. A quantitative model is provided for assessing the likely effects of price changes on affordability, using local data. Representative data from a range of countries are provided. Using illustrative parameters, the model is applied to show the effects on telephone take-up of economic growth, different pricing strategies, and different degrees of inequality in income distribution. It is also used to estimate price elasticities of demand for lines in low-income environments.

Suggested Citation

  • Milne, Claire, 2000. "Affordability of basic telephone service: an income distribution approach," Telecommunications Policy, Elsevier, vol. 24(10-11), pages 907-927, November.
    • Handle: RePEc:eee:telpol:v:24:y:2000:i:10-11:p:907-927
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    Citations

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    Cited by:

    1. Bundorf, M. Kate & Pauly, Mark V., 2006. "Is health insurance affordable for the uninsured?," Journal of Health Economics, Elsevier, vol. 25(4), pages 650-673, July.
    2. Ali, Mohammad Afshar & Alam, Khorshed & Taylor, Brad & Rafiq, Shuddhasattwa, 2019. "Do income distribution and socio-economic inequality affect ICT affordability? Evidence from Australian household panel data," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 317-328.
    3. Corrado Benassi & Marcella Scrimitore, 2017. "Income Distribution in Network Markets," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 251-271, September.

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