Prices for long-distance voice telephony in Germany

Gert Brunekreeft and Wolfgang Gross

Telecommunications Policy, 2000, vol. 24, issue 10-11, 929-945

Abstract: This paper examines the first 16 months of competition in the German market for long-distance voice telephony on the fixed network. It concentrates on price level and price structure. Competition induced by the entry of both network operators and switch-based service providers decreased the price level substantially. Furthermore, after initial attempts to design innovative price structures, most firms gave up differentiation, and instead charged uniform prices for long-distance calls for residential customers. Moreover, the decrease in the price level seems to have induced a shift in the peak-load structure, which raises concern about the regulation of the peak-load structure of interconnection charges.

Keywords: Telecommunications; Price; discrimination; Peak-load; pricing (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (7)

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