Flow-Through and Competition in the International Message Telephone Service Market

16 Pages Posted: 10 Sep 2004

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Date Written: September 2000

Abstract

One of the most contentious debates in modern telecommunications policy regards whether or not a regulatory mandated reductions in the per-minute costs of long distance carriers - access charges domestically and settlement rates internationally - are fully reflected in the per-minute prices for long distance calls. In this paper, we evaluate the flow through of settlement costs to international long distance prices and find strong evidence that IMTS prices are closely related to settlement costs, and that these prices fully reflect differences in settlement costs. Further, the estimated relationship between prices and settlement cost indicates, under certain assumptions, that the IMTS industry is very competitive.

Keywords: IMTS, Settlement Rates, Interational Telecommunications

JEL Classification: K23, K21, L10, L5, L50, L51, L52, L96

Suggested Citation

Ford, George S., Flow-Through and Competition in the International Message Telephone Service Market (September 2000). Available at SSRN: https://ssrn.com/abstract=587054 or http://dx.doi.org/10.2139/ssrn.587054

George S. Ford (Contact Author)

Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )

5335 Wisconsin Avenue, NW
Suite 440
Washington, DC 20015
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
41
Abstract Views
1,052
PlumX Metrics