IDEAS home Printed from https://ideas.repec.org/p/zbw/itsb12/72478.html
   My bibliography  Save this paper

The policy deadlock of digitizing cable TV in Taiwan: An analytic hierarchy process on the stakeholders' interests

Author

Listed:
  • Chou, Yuntsai

Abstract

This paper probes the phenomenon of delayed cable digitization in countries such as Korea and Taiwan. The paper first performed a cross-country longitudinal analysis on the 16 countries in the Asia Pacific region and found out that 1. inter-platform competition, primarily from DBS, generates the strong and positive impact on the ratio of cable digitization; 2. the analog installed base reduces the percentage of digital cable service subscribed; and 3. consumers' switching costs decrease their willingness to subscribe the digital service, therefore reduces the ratio of digitization. An AHP study of Taiwan's cable operators demonstrates the top three policy preferences as: 1. rate deregulation; 2. lifting the horizontal integration cap; and 3. the set-up-box subsidies. The results of two empirical tests together conclude that countries should deregulate the cable tariffs and encourage inter-platform competition. As rate deregulation grants the operators flexibility in charging the services, they can compensate consumers the switching costs by lower digital tariffs. For countries shich lack of budget in subsidization, they are advised to bundle rate deregulation with the operators' obligation to subsidize consumers. The countries also need to create a level playing field among various TV platform operators to entail inter-platform competition and thus a higher ratio of cable digitization.

Suggested Citation

  • Chou, Yuntsai, 2012. "The policy deadlock of digitizing cable TV in Taiwan: An analytic hierarchy process on the stakeholders' interests," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72478, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itsb12:72478
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/72478/1/743673565.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Haucap Justus & Heimeshoff Ulrich & Stühmeier Torben, 2011. "Wettbewerb im deutschen Mobilfunkmarkt," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 60(2), pages 240-268, August.
    2. Barth, Anne-Kathrin & Graf, Julia, 2011. "Irrationality rings! - Experimental evidence on mobile tariff choices," DICE Discussion Papers 36, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Joan Calzada & Tommaso M. Valletti, 2008. "Network Competition and Entry Deterrence," Economic Journal, Royal Economic Society, vol. 118(531), pages 1223-1244, August.
    4. Doh-Shin Jeon & Jean-Jacques Laffont & Jean Tirole, 2004. "On the Receiver-Pays Principle," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 85-110, Spring.
    5. Hoernig, Steffen, 2007. "On-net and off-net pricing on asymmetric telecommunications networks," Information Economics and Policy, Elsevier, vol. 19(2), pages 171-188, June.
    6. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: II. Price Discrimination," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 38-56, Spring.
    7. Gans, Joshua S. & King, Stephen P., 2001. "Using 'bill and keep' interconnect arrangements to soften network competition," Economics Letters, Elsevier, vol. 71(3), pages 413-420, June.
    8. Bolle Friedel & Heimel Jana, 2005. "A Fallacy of Dominant Price Vectors in Network Industries," Review of Network Economics, De Gruyter, vol. 4(3), pages 1-8, September.
    9. Haucap, Justus & Heimeshoff, Ulrich, 2011. "Consumer behavior towards on-net/off-net price differentiation," Telecommunications Policy, Elsevier, pages 325-332.
    10. repec:rim:rimwps:03-08 is not listed on IDEAS
    11. Harbord David & Pagnozzi Marco, 2010. "Network-Based Price Discrimination and `Bill-and-Keep' vs. `Cost-Based' Regulation of Mobile Termination Rates," Review of Network Economics, De Gruyter, vol. 9(1), pages 1-46, February.
    12. Luís Cabral, 2011. "Dynamic Price Competition with Network Effects," Review of Economic Studies, Oxford University Press, vol. 78(1), pages 83-111.
    13. Ángel L. López & Patrick Rey, 2009. "Foreclosing Competition through Access Charges and Price Discrimination," Working Papers 2009.99, Fondazione Eni Enrico Mattei.
    14. Corrocher, Nicoletta & Zirulia, Lorenzo, 0. "Me and you and everyone we know: An empirical analysis of local network effects in mobile communications," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 68-79, February.
    15. Daniel Birke & G. Swann, 2006. "Network effects and the choice of mobile phone operator," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 65-84, April.
    16. repec:eee:ecomod:v:221:y:2010:i:23:p:2760-2768 is not listed on IDEAS
    17. Gabrielsen, Tommy Staahl & Vagstad, Steinar, 2008. "Why is on-net traffic cheaper than off-net traffic Access markup as a collusive device," European Economic Review, Elsevier, vol. 52(1), pages 99-115, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    digital switchover; inter-platform competition; network effects; switching costs; rate deregulation; analytic hierarchy process; Taiwan;

    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:zbw:itsb12:72478. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://www.itsworld.org/ .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.