Economic Efficiency of the Deregulation of Telecommunications Market

研究成果: Article

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This paper examines the theoretical aspects of telecommunications market in Japan. The market has been developed through monopolistic supply by Nippon Telegraph and Telephone Public Corporation (NTTPC), which is now privatized and named Nippon Telegraph and Telephone Co. Ltd., (NTT). After privatization, three market competitors entered the supply of trunk line telecommunications services. They provide alternative services by leasing NTT’s terminal facilities. However, charges for long-distance calls have not been so lowered as much as were expected. Focusing on economic explanation and interpretation of the pricing of long-distance telecommunications in Japan, optimal two-part tariffs of the utility supplier faced with market contestants are designed in the context of the privatization of NTTPC, the entry of competitive firms and the innovation of relevant technology. Demand externalities, which are important for the economic analysis of telecommunications, are explicitly introduced. Optimal two-part tariffs are derived through (i) profit-maximizing, (ii) welfare maximizing, (iii) profit-constrained welfare maximizing formulae.

元の言語English
ページ(範囲)161-179
ページ数19
ジャーナルStudies in Regional Science
20
発行部数1
DOI
出版物ステータスPublished - 1989
外部発表Yes

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

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