 Interconnection in international telecommunications: An empirical investigation of United States settlement ratesGary Madden and Scott Savage () Telecommunications Policy, 1998, vol. 22, issue 11, 953-961 Abstract: Several national governments have expressed concern at the inability of carriers to negotiate lower accounting rates. Ergas and Patterson (1991) and Frieden (1997) argue that it is only on bilateral markets with facilities-based competition at both ends that conditions favour accounting rates reductions. In the absence of facilities-based competition, Frieden also suggests that service providers, such as resellers, may provide a second best opportunity to place downward pressure on accounting rates. This study extends the work of Ergas and Patterson by developing an econometric model of settlement rate pricing. The model is estimated on data for 27 US bilateral telephone markets for the period 1985 to 1995. Parameter estimates are used to identify settlement rate determinants, and so highlight impediments to efficient international telecommunications pricing. A novel feature of the model is the inclusion of a resale market structure variable. Date: 1998 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:22:y:1998:i:11:p:953-961 Ordering information: This journal article can be ordered from Access Statistics for this article Telecommunications Policy is currently edited by Erik Bohlin More articles in Telecommunications Policy from Elsevier |
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