An Econometric Analysis of the Factors that Influence the Deployment of Advanced Telecommunications Services

25 Pages Posted: 16 May 2012

See all articles by Eugene A. Floyd

Eugene A. Floyd

affiliation not provided to SSRN

David J. Gabel

City University of New York, CUNY Queens College - Department of Economics

Date Written: August 31, 2003

Abstract

This study examines the decisions of all incumbent local exchange companies (ILECs) in the United States to deploy advanced telecommunications services within each of their wire center serving areas. The advanced telecommunications services examined are packet switching, digital signal level (DS) transport, and synchronous optical network (SONET) technologies. The study is unique in its level of granularity and the set of economic determinants controlled for in the econometric analysis. By controlling for a host of firm, marketing, demand and regulatory factors, the study suggests that both Schumpeter and Schmookler were correct in that large providers are more likely to innovate and that demand matters. More importantly, by controlling for competition, the study suggests that most forms of incentive regulation - particularly indexed price caps - are not conducive to innovation as compared to rate base rate-of-return regulation (RBROR).

Suggested Citation

Floyd, Eugene A. and Gabel, David J., An Econometric Analysis of the Factors that Influence the Deployment of Advanced Telecommunications Services (August 31, 2003). TPRC 2003, Available at SSRN: https://ssrn.com/abstract=2060658

Eugene A. Floyd (Contact Author)

affiliation not provided to SSRN ( email )

David J. Gabel

City University of New York, CUNY Queens College - Department of Economics ( email )

65-30 Kissena Blvd
Flushing, NY 11367-1597
United States

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