Price Telecommunications

efficient pricing of telecommunications services: the state of the debate - review of industrial organization

gabel and kennet resurrect three familiar arguments in support of their view that there would be no clear welfare gain from raising the price of exchange service: (i) access costs vary with usage, (ii) access is a joint input that would not be recovered through a fixed charge if markets were competitive, and (iii) new technology has increased the incremental cost of access, and services that require the new technology should bear the increased costs.28 by my scorecard, the first round is a tie, and the last two go to kahn and shew.in the forward-looking network we use to measure incremental costs, there is a significant proportion of shared facilities in what once was the domain of dedicated loops. the fcc part 69 accounting rules probably overstate the amount of loop plant that is invariant to use, and the problem of non-traffic sensitive cost recovery is probably not as severe as would appear from accounting data. nonetheless, whatever the amount of non-traffic sensitive costs, the issue remains as to how they should be recovered.even if access ix treated as a fixed common input into the provision of local and toll usage, efficient prices would recover fixed costs on a flat-rate basis and variable costs on a per-minute basis. finally, forward-looking incremental costs are the only costs that are relevant for pricing decisions, and those costs take the current network as given. recovering network upgrade costs from enhanced services is correct if, on a forward-looking basis, additional demand for enhanced services (or the totality of enhanced services demand) requires that additional network upgrade costs be incurred.

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the commission signed an order on feb. 9, 2005, setting verizon's rates for wholesale charges to other phone carriers that rent space on the company's lines. the order addresses recurring rates – rates verizon charges on a monthly or periodic basis for unbundled network elements (unes). the decision also created a five-zone rate structure for loops and switching.   this proceeding was the first test nationally for verizon's newly developed "vzcost" model, a web-based program used to help calculate recurring rates. the commission said the new verizon model had "merits and demerits." the commission used verizon's model, but not exclusively, as it also employed a version of an earlier program known as the hatfield model. (dockets ut-023003 and ut-033034. see links at the bottom of this page for more information.)   background:   the utc's "generic cost case" began during the initial round of interconnection arbitrations after passage of the telecommunications act of 1996. it has proceeded through a series of parts to establish cost and prices for interconnection and unbundled network elements. the case has proceeded in phases. in aug. 2003 the commission began this investigation of non-recurring costs separate from recurring costs. qwest's issues were removed from the proceeding in nov. 2003, leaving only verizon. the commission dismissed part of this proceeding dealing with non-recurring costs for verizon in oct 2004. at a recent prehearing conference, several participants said they no longer wished to go forward with this proceeding given major changes and uncertainties in telecommunications regulation. given the difficulty of developing a record if the primary parties did not participate, the commission dismissed the proceeding without prejudice. (docket ut-033034. see document links below for more information.)   the commission approved a settlement agreement submitted by qwest, commission staff and at&t on may 11, 2004. under the agreement, qwest agreed to implement five different rates for using the company's lines in different parts of the state. the proposed settlement resolves remaining qwest issues, so only verizon's costs are still at issue in the case. (docket ut-023003. for more information, see document links for this docket below).   in approving the agreement, the commission said that rates in the settlement will move prices toward costs in all areas of the state. "accurate pricing provides carriers the best information to rely on in making decisions whether to invest in facilities to serve a given geographic area." qwest agreed to implement the five-zone loop-rates shown below:   zone 1 $11.26 zone 2 $13.63 zone 3 $16.92 zone 4 $28.23 zone 5 $67.77   second phase, generic cost and pricing the second generic proceeding (docket ut-003013) was to determine costs and prices for network elements that were not included in the initial proceeding, and to address issues left unresolved in that proceeding. this proceeding was also divided into several phases, referred to as "parts."   the utc issued its part a order (13th supplemental), which determined prices for line sharing, operations support systems and collocation, on january 31, 2001, and issued a corrected order on november 6, 2001 (27th supplemental order).   the utc issued its part b order (32nd supplemental) on june 21, 2002. it addresses issues of line splitting, line sharing over fiber loops, oss, loop conditioning, reciprocal compensation, and nonrecurring and recurring rates for some unbundled network elements.   part c, which was to address microwave collocation issues, was was cancelled june 14, 2001, after parties reached agreement on rates. the utc held evidentiary hearings in part d may 6-10, 2002, and issued its final order on part d (44th supplemental) on december 20, 2002.    initial generic cost and pricing docket   the utc's initial generic cost and pricing proceeding (docket ut-960369) established the cost and prices for unbundled network elements (une) including the unbundled loop. the primary orders from this proceeding are listed below:   phase i: costs the utc completed the cost phase of the proceeding in 1998. the cost determinations are in these orders: generic cost order clarification   clarification and reconsideration phase ii: prices the second phase of the proceeding established statewide average prices. the utc completed this phase in 1999. the price determinations are in these orders: generic pricing order clarification order compliance order phase iii: deaveraging  the third phase of the proceeding established deaveraged prices for interconnection and unbundled network elements. the utc issued its decision in this phase on may 4, 2000, and an order on reconsideration on december 15, 2000. deaveraging order  appendix a (alpha) appendix a (zone) appendix b (alpha) appendix b (zone) order staying prices reconsideration order on deaveraging

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telecommunications services: price index in germany 1995-2018| statista

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pricing of telecommunications services - review of industrial organization

recently many scholars have argued that society's welfare would be increased if the price of local telephone service were increased, and the prices for toll and enhanced telecommunication services reduced. in this paper we argue that the telecommunications policy literature has largely ignored the impact of varying technical standards on the cost-of-service. consequently, the marginal cost of exchange service has been overstated. we also show that most work in this area has overstated the elasticity-of-demand for toll services. taking into account quality and the appropriate elasticities, we conclude that no clear welfare gains will be achieved by raising the price of exchange service.

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the telecommunications services producer price indexes are quarterly series that measure changes over time in the prices received by telecommunications service providers for fixed telecommunications services (except internet access), mobile telecommunications services, cable, satellite and other program distribution services and fixed internet access services.

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producer price index by commodity: telecommunication, cable, and internet user services

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