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Competition in Local Telecommunications

Author

Listed:
  • Christopher Swann

    (Global Insight)

  • David G Loomis

    (Illinois State University)

Abstract

The Telecommunications Act of 1996 created a framework for competition in local telecommunications. Under its rules and under the jurisdiction of state regulatory authorities, competitive local telephone companies were to gain access to some or all parts of the incumbent's network through known wholesale tariffs and offer retail local telephone service. As customers adopt other technologies for communications–mobile wireless service, broadband for email, messaging, and information retrieval–additional competitive pressures are put on the core voice telephone market. The substitution of usage and access from local telephony to other modes of communication is regarded as intermodal competition and is the subject of this paper. This study concerns local telecommunications competition between incumbent and competitive service providers in the United States. In addition to measuring competition from within the wireline market, we find significant intermodal competitive impacts resulting from wireless and high-speed development. We report empirical results from an econometric model that measures line loss impacts between carriers and the effects of wireless and high-speed services on the wireline market. The paper offers interpretation of the strategic and policy implications of these results.Business Economics (2005) 40, 18–28; doi:10.2145/20050202

Suggested Citation

  • Christopher Swann & David G Loomis, 2005. "Competition in Local Telecommunications," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 40(2), pages 18-28, April.
    • Handle: RePEc:pal:buseco:v:40:y:2005:i:2:p:18-28
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    Citations

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    Cited by:

    1. 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.
    2. de Bijl, P.W.J. & Peitz, M., 2007. "Innovation, Convergence and the Role of Regulation in the Netherlands," Other publications TiSEM 21cc8b22-82a4-48da-87d0-6, Tilburg University, School of Economics and Management.
    3. Brito, Duarte & Pereira, Pedro, 2008. "Investment and welfare implications of the ownership structure of overlapping networks," Information Economics and Policy, Elsevier, vol. 20(1), pages 38-53, March.
    4. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.
    5. de Bijl, Paul & Peitz, Martin, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," Telecommunications Policy, Elsevier, vol. 32(11), pages 744-754, December.
    6. Duarte Brito & Pedro Pereira, 2005. "Ownership Structure of Cable Networks and Competition in Local Access," Working Papers 09, Portuguese Competition Authority.
    7. Jitendra Parajuli & Kingsley E. Haynes, 2017. "Broadband and narrowband Internet in Nepal," Asia-Pacific Journal of Regional Science, Springer, vol. 1(1), pages 85-97, April.
    8. Jeffrey Prince & Shane Greenstein, 2017. "Measuring Consumer Preferences for Video Content Provision via Cord‐Cutting Behavior," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(2), pages 293-317, June.
    9. Madden, Gary & Morey, Aaron & Theoharakis, Bill, 2012. "On the statistical identification of technology disruption," Telecommunications Policy, Elsevier, vol. 36(8), pages 676-684.
    10. Connolly Michelle & Prieger James E., 2013. "A Basic Analysis of Entry and Exit in the US Broadband Market, 2005–2008," Review of Network Economics, De Gruyter, vol. 12(3), pages 229-270, September.

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