Benchmarking and effects of reforms in the fixed telecommunications industry: A DDF approach

Clementina Bruno and Alessandro Manello ()

Telecommunications Policy, 2015, vol. 39, issue 2, 127-139

Abstract: Our article proposes an application of the Directional Distance Function (DDF) approach to the fixed telecommunication field. In particular, we present an efficiency evaluation of European fixed telecom operators, where the DDF tool allows for asymmetric treatment of outputs characterized by a different degree of desirability: broadband lines (a market still in expansion, related to a welfare-improving service) and narrow band lines (an almost saturated market, corresponding to a “minimal” TLC service in developed countries). Finally, by means of a second stage regression, we investigate the effect on technical efficiency of set of variables representing the competitive environment, the ownership structure and the degree of vertical separation. Our results show that the assumptions embedded in the DDF model influence relevantly the technical efficiency estimates, where important potential bias can arise if the duality of outputs is ignored, with a subsequent relevant impact also on the second stage results. These findings highlight the relevance of choosing benchmarking models consistent with the features of the analysed technology and show that the DDF approach is a flexible tool able to accommodate even complex output structures.

Keywords: Efficiency; Directional Distance Function; Fixed telecommunications (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0308596114001980
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:39:y:2015:i:2:p:127-139

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

DOI: 10.1016/j.telpol.2014.12.009

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 ().