Access Pricing in Telecommunications by Organisation for Economic Co-Operation and Development

By Organisation for Economic Co-Operation and Development

Show description

Read Online or Download Access Pricing in Telecommunications PDF

Similar software: office software books

Baldrige Award Winning Quality -- 17th Edition: How to Interpret the Baldrige Criteria for Performance Excellence (Baldrige Award Winning Quality)

The Definitive advisor to studying the Baldrige Award Now in its seventeenth absolutely up-to-date variation, this quantity is the main prevalent and famous consultant to the Malcolm Baldrige nationwide caliber Award. this straightforward and accomplished source permits businesses to grasp the exhaustive standards of the nation’s major company functionality award.

Knife Song Korea (Excelsior Editions)

A tumultuous 12 months within the lifetime of a tender health practitioner through the Korean struggle.

Charts and Graphs for Microsoft(R) Office Excel 2007 (Business Solutions)

You'll create a nasty taking a look chart in Excel. This e-book teaches you how to liberate the gorgeous formatting strategies on hand to make amazing taking a look charts. the 1st part will discuss how you can come to a decision which chart style to exploit. next chapters will stroll via each one chart sort, how you can create them, tips to make the most of them, and designated ideas to be had for every chart.

Additional resources for Access Pricing in Telecommunications

Sample text

C 3. In order to maintain the correct relative levels of the final prices. Source: OECD. As mentioned earlier, in most cases, the total revenue of the monopolist must exceed the level that would result from marginal cost pricing. Applying principle 3 above gives the correct mark-up of final and access prices over marginal cost. In particular, access prices should be increased above marginal cost by an amount given by the Ramsey formula. This formula takes into account substitution effects between services and, in particular, between final services and access services.

In other words, the regulated firm must be able to trace to whom (or when or where) the corresponding final service is sold. This might not always be possible. We discuss further below the implications of the inability to price discriminate effectively at the access level. Is there a danger that the use of two-part prices at the access level will restrict competition downstream? After all, don’t two-part access prices introduce a form of increasing returns to scale downstream limiting the number of firms that can survive – perhaps even creating a downstream monopoly?

Price discrimination in access prices and final prices The following examples are intended to highlight the problems that might arise when price discrimination occurs in final prices but not in access prices. Example 1: Suppose that a telecommunications company charges a monthly fee for telephone service that depends on the class of customer. Suppose that there are two classes of customers – “residential” customers who pay $80 per month and “business” customers who pay $120 per month. The cost of providing local loops to each of these customers is $100.

Download PDF sample

Rated 4.18 of 5 – based on 7 votes