Regulate or Deregulate: Influencing Network Interconnenction Charges
AbstractWe study the choice between regulating interconnection charges or delegating their determination to the operators, both in a non-mature and a mature market. Three regulatory regimes are considered: full, cost-based and bill-and-keep. Delegation corresponds to bargaining about the interconnection charges using the regulatory schemes as disagreement outcomes.Applying regulation benefits the consumers.Under full regulation, access charges account for asymmetries and allow a unique Ramsey price.Delegation benefits the operators.In a mature market delegation robs the government of any market influence.In a non-mature market government preferences coincide with those of the largest operator and are disadvantageous for entry.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-68.
Date of creation: 2003
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regulations; delegation; telecommunication industry;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L5 - Industrial Organization - - Regulation and Industrial Policy
This paper has been announced in the following NEP Reports:
- NEP-COM-2003-08-24 (Industrial Competition)
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