The Welfare Costs of the Australian Telecommunications Pricing Structure

Robert Albon

The Economic Record, 1988, vol. 64, issue 2, 102-112

Abstract: Australian telecommunications pricing has developed in an environment which is uncompetitive, subject to pressures to cross‐subsidize and insufficiently cognizant of relevant costs and demands. STD and local call charges are too high and access charges too low. Compared with a structure which charged marginal usage costs and retrieved costs of subscribers' loops and overheads through access charges, the pricing structure has an estimated efficiency cost of about $240 m in 1985–86.

Date: 1988
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