The effect of cellular service on the cost structure of a land-based telephone network

David Gabel and David Kennet ()

Telecommunications Policy, 1997, vol. 21, issue 5, 411-422

Abstract: While economies of scale and scope have been extensively studied in traditional telephone networks, thus far little academic attention has been paid to the effect of cellular communications, which is one of the most rapidly growing segments of the telecommunications system. We use LECOM--our Local Exchange Cost Optimization Model--to generate data representing an optimal telephone network before and after the introduction of a cellular network. We derive geographic data from Statistics New Zealand's meshblock data. Our cost data for network components are 'typical' North American annual costs. Our initial results suggest, somewhat intriguingly, that there may be potential gains to more widespread introduction of cells in some rural areas, particularly those characterized by customer populations clustered along major roads.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030859619700027X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:21:y:1997:i:5:p:411-422

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/bibliographic
http://www.elsevier. ... /30471/bibliographic

Access Statistics for this article

Telecommunications Policy is currently edited by Erik Bohlin

More articles in Telecommunications Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().