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The Revenue and Efficiency Implications of Timed Local Calls

Author

Listed:
  • Robert Albon

    (Department of Economics, Faculty of Economics and Commerce, Australian National University.)

Abstract

The case for timed local calls (TLC) is overwhelming on both equity and efficiency grounds. However, Telecom's example of a pricing structure for (TLC) would probably have raised revenue substantially. The efficiency effects depend on the structure of local prices and on what is done with the additional revenue (e.g. reducing STD). There could also be considerable savings in capital equipment requirements. Alternative TLC pricing structures are considered which may be both superior to, and more acceptable than, the original proposal.

Suggested Citation

  • Robert Albon, 1989. "The Revenue and Efficiency Implications of Timed Local Calls," Australian Journal of Management, Australian School of Business, vol. 14(2), pages 115-126, December.
    • Handle: RePEc:sae:ausman:v:14:y:1989:i:2:p:115-126
    DOI: 10.1177/031289628901400201
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    References listed on IDEAS

    as
    1. Brown,Stephen J. & Sibley,David Sumner, 1986. "The Theory of Public Utility Pricing," Cambridge Books, Cambridge University Press, number 9780521314008.
    2. Robert Albon, 1988. "The Welfare Costs of the Australian Telecommunications Pricing Structure," The Economic Record, The Economic Society of Australia, vol. 64(2), pages 102-112, June.
    3. Griffin, James M & Mayor, Thomas H, 1987. "The Welfare Gain from Efficient Pricing of Local Telephone Services," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 465-487, October.
    4. Albon, Robert, 1988. "The Welfare Costs of the Australian Telecommunications Pricing Structure," The Economic Record, The Economic Society of Australia, vol. 64(185), pages 102-112, June.
    5. Park, Rolla Edward & Wetzel, Bruce M & Mitchell, Bridger M, 1983. "Price Elasticities for Local Telephone Calls," Econometrica, Econometric Society, vol. 51(6), pages 1699-1730, November.
    Full references (including those not matched with items on IDEAS)

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