Telecommunication Pricing

Compares customer premises equipment bill & keep with incremental cost/cost-based pricing models. Interconnection & rate-sharing, efficient components, regulation, recommendation. Charts.

Regulators have been struggling with the problems and issues associated with monopoly pricing for decades (Ergas & Ralph, 1994, p. 10). Since the break-up of AT&T, however, the efforts to find an efficient pricing mechanism for monopolistic industries have intensified. The separation of long-distance and local telephony services led to increased interconnection operations among the providers of long-distance and local area services. With increased interconnection activity came the need to develop acceptable policies to govern rate-sharing among providers. In the contemporary period, rapid and significant …
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