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Regulation and International Telecommunications Pricing Behaviour

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  • Madden, Gary
  • Savage, Scott J

Abstract

Recent technology change and market liberalization have substantially reduced the costs of providing international message telephone services (IMTS). However, the full extent of these cost reductions have generally not been reflected in lower prices. This paper reviews the recent literature on international telecommunications markets, and examines regulation and IMTS pricing behaviour. Particular attention is given to the accounting rate system (ARS), uniform settlement policies, and asymmetric competition. Several market behaviour scenarios are described where regulation has resulted in carriers implementing inefficient pricing rules for both accounting and collection rates. Finally, economic and political strategies are put forward that could supplant the current outmoded and uneconomic ARS, and bring about the full benefits of a freely functioning marketplace to telecommunications users. Copyright 2001 by Oxford University Press.

Suggested Citation

  • Madden, Gary & Savage, Scott J, 2001. "Regulation and International Telecommunications Pricing Behaviour," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(1), pages 247-265, March.
    • Handle: RePEc:oup:indcch:v:10:y:2001:i:1:p:247-65
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    Cited by:

    1. Oredegbe, Abayomi & Zhang, Yahua, 2020. "Telecommunications industry efficiency: A comparative analysis of high and middle income countries," Telecommunications Policy, Elsevier, vol. 44(5).

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    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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