IDEAS home Printed from https://ideas.repec.org/p/yor/yorken/00-02.html
   My bibliography  Save this paper

On The Impact Of "Call-Back" Competition On International Telephony

Author

Listed:
  • Fabio M. Manenti

Abstract

In this paper we build a simple three-country model to evaluate the impact of "call-back" on international telephony. The effects on both accounting rates and collection prices are studied. Call-back firms exploit arbitrage opportunities in collection prices among countries, rerouteing calls that originate in countries with high prices for international phone calls via countries with low prices. Contrary to what it is commonly perceived, we show that call-back tends to magnify the distortions associated with the current accounting rate regime. In particular call-back puts upward pressure both on low price countries foreign accounting rates and collection charges. Call-back companies are assumed to enjoy a price discount on each rerouted call; we show that the larger the price discount offered to call-back companies, the higher the prices for international calls in the country hosting call-back.

Suggested Citation

  • Fabio M. Manenti, "undated". "On The Impact Of "Call-Back" Competition On International Telephony," Discussion Papers 00/02, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:00/02
    as

    Download full text from publisher

    File URL: https://www.york.ac.uk/media/economics/documents/discussionpapers/2000/0002.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oecd, 1997. "New Technologies and their Impact on the Accounting Rate System," OECD Digital Economy Papers 28, OECD Publishing.
    2. Frieden, Robert M, 0. "The impact of call-back and arbitrage on the accounting rate regime," Telecommunications Policy, Elsevier, vol. 21(9-10), pages 819-827, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sergio Da Silva & Gustavo Manfrim, 2007. "Estimating demand elasticities of fixed telephony in Brazil," Economics Bulletin, AccessEcon, vol. 12(5), pages 1-9.
    2. repec:ebl:ecbull:v:12:y:2007:i:5:p:1-9 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2005. "Assessing the impact of communication costs on international trade," Journal of International Economics, Elsevier, vol. 67(2), pages 428-445, December.
    3. Francesco Castelli & José Luis Gómez Barroso & Claudio Leporelli, 2000. "Global Universal Service and International Settlement Reform," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 69(4), pages 679-694.

    More about this item

    Keywords

    telecommunications; call-back; access; accounting rate; collection charge; international telephony.;
    All these keywords.

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:yor:yorken:00/02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Paul Hodgson (email available below). General contact details of provider: https://edirc.repec.org/data/deyoruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.