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International Telecommunications, Settlement Rates, and the FCC

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  • Wright, Julian

Abstract

This paper models settlement arrangements between international telecommunication carriers. The FCC in the United States claims these arrangements cost United States consumers billions of dollars annually, largely to subsidize foreign carriers in low-income countries. A model is given which makes sense of this claim, as well as the role of costs, competition, and income disparities in settlement rate determination. Findings are tested using data spanning 17 years and 167 countries. Some implications are drawn for the FCC's recently proposed settlement rate caps, as well as for proposals for multilateral solutions. Copyright 1999 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 15 (1999)
Issue (Month): 3 (May)
Pages: 267-91

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Handle: RePEc:kap:regeco:v:15:y:1999:i:3:p:267-91

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Web page: http://www.springerlink.com/link.asp?id=100298

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Cited by:
  1. Joan Calzada & Francesc Trillas, 2005. "The interconnection prices in telecomunications: from theory to practice," Hacienda Pública Española, IEF, vol. 173(2), pages 85-125, June.
  2. Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45788, University Library of Munich, Germany.
  3. Domon, Koji & Ota, Koshiro, 2001. "Access pricing and market structure," Information Economics and Policy, Elsevier, vol. 13(1), pages 77-93, March.
  4. James Alleman & Gary Madden & Scott Savage, 2003. "Dominant carrier market power in US international telephone markets," Applied Economics, Taylor & Francis Journals, vol. 35(6), pages 665-673.
  5. Simran Kahai & Paramjit Kahai & Adrian Leigh, 2006. "Traditional and Non-Traditional Determinants of Accounting Rates in International Telecommunications," International Advances in Economic Research, Springer, vol. 12(4), pages 505-522, November.
  6. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.
  7. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
  8. Christos Agiakloglou & Demetrius Yannelis, 2006. "Estimation of Price Elasticities for International Telecommunications Demand," International Advances in Economic Research, Springer, vol. 12(1), pages 131-137, February.
  9. Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45862, University Library of Munich, Germany.
  10. Agiakloglou, Christos & Gkouvakis, Michalis, 2012. "Causal interrelations among market fundamentals: Evidence from the Europen telecommunications sector," 23rd European Regional ITS Conference, Vienna 2012 60387, International Telecommunications Society (ITS).
  11. Alberto Nucciarelli & Massimo Gastaldi & Nathan Levialdi, 2010. "Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets," Netnomics, Springer, vol. 11(3), pages 315-329, October.

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