Article Abstract:
Cross subsidies for telephone services are increasingly hard to maintain as competition among telephone companies become more stiff. In the wake of this development, telephone companies, particularly those providing local residential telephone service, have started raising their rates. However, whether or not the increased rates have an impact on telephone service consumption remains unknown. To remedy this problem, the impact of the price changes on telephone service consumption and consumer welfare at the household level is studied using data from the Bureau of Labor Statistics' Survey of Consumer Expenditures.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Regulations governing the telecommunications industry have been known to create distortions because local rates that were kept below marginal cost were subsidized by interstate rates that were higher than marginal cost. However, the recent trend towards deregulation seems to have led to a decline and a convergence in the rates for long distance telephone services of the three major carriers. The long-distance rates of the three major carriers and the impact of price caps on rate differences are investigated.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The residential telephone subscription in Canada at 1994 prices showed an increase demand, with monthly basic service charges not significantly influencing subscription. Different factors affect consumers' subscription to one or more than one line, or not subscribe at all. These factors include the household's source of income, house size, prices and costs of basic necessities such as food and clothing, household location, and employment status of the household head.
User Contributions:
Comment about this article or add new information about this topic: