Network Interconnection with Competitive Transit
NET Institute Working Paper No. 03-5
25 Pages Posted: 6 Sep 2004
Date Written: December 2003
We examine the interaction between two interconnected networks (e.g., two LECs) and a third network (e.g., an IXC) seeking access to their customer base. The IXC could either interconnect with both LECs or interconnect with only one LEC and transit calls to the other LEC via the first LEC's network. We show that there is a wide set of cases in which competitive transit could justify partial or even complete deregulation of access to a network's customer base.
Keywords: Interconnection, access pricing, transit, telecommunication
JEL Classification: L51, L96
Suggested Citation: Suggested Citation