The Potential Role of Economic Cost Models in the Regulation of Telecommunications in Developing Countries

Posted: 18 Jan 2007

See all articles by Daniel A. Benitez

Daniel A. Benitez

Universite de Toulouse; CEER-UADE

Antonio Estache

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES)

Mark Kennet

LECOM Associates, Inc.

Christian A. Ruzzier

University of San Andres (UMSA) - Department of Economics

Abstract

What is the efficient cost of providing telecommunications services to a certain area or type of customer? As developing countries build up their capacity to regulate infrastructure monopolies, cost models are likely to prove increasingly important in answering this question, but without information no real answer can be given. In this paper, we will introduce cost models and establish their applicability when different degrees of information are available to the regulator. Reliable and detailed information is generally a scarce good in developing countries, and we establish here the minimum information requirements that a regulator needs to implement a cost proxy model approach, showing that this 'data constraint' need not be that binding.

Keywords: cost models, telecommunications, information

JEL Classification: L5, L9, C8

Suggested Citation

Benitez, Daniel A. and Estache, Antonio and Kennet, D. Mark and Ruzzier, Christian A., The Potential Role of Economic Cost Models in the Regulation of Telecommunications in Developing Countries. Information Economics and Policy, Vol. 14, No. 1, pp. 21-38, 2002. Available at SSRN: https://ssrn.com/abstract=958006

Daniel A. Benitez

Universite de Toulouse ( email )

Place Anatole France
Toulouse Cedex, F-31042
France

CEER-UADE

No Address Available

Antonio Estache

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium
32 (0)2 6503838 (Phone)

D. Mark Kennet

LECOM Associates, Inc. ( email )

Rechov Tamar 17
Kiriat Tivon, 36530
Israel
+972 4 953 4164 (Phone)

Christian A. Ruzzier (Contact Author)

University of San Andres (UMSA) - Department of Economics ( email )

Vito Dumas 284
B1644BID Victoria, Buenos Aires
Argentina

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