Margin Squeeze in Fixed-Network Telephony Markets -- Competitive or Anticompetitive?

Margin squeeze in fixed - network telephony markets : competitive or anticompetitive ?

The Economics of Margin Squeeze∗

The paper discusses economic theories of harm for anti-competitive margin squeeze by unregulated and regulated vertically integrated firms. We review both predation and foreclosure theories, as well as the mere exploitation of upstream market power. We show that foreclosure provides an appropriate framework in the case of an unregulated firm, whereas a firm under tight wholesale regulation shou...

Should “price Squeeze” Be a Recognized Form of Anticompetitive Conduct?

Should a “price squeeze” constitute anticompetitive conduct requiring investigation under the antitrust laws? A price squeeze occurs when a vertically integrated firm supplies an input to its downstream competitors at a price that generates a profit margin so low that the competitors exit the downstream market. I ask whether it is sensible to try to use antitrust laws to prevent such conduct or...

Forecasting Capital Investment for Fixed-Telephony Network Switching Equipment in Tandem with NGN Migration Using Cobb-Douglas Model

This paper tries to estimate the capital investment required for the fixed-telephony network switching equipment as demanded by the fourth national development plan. As a first step, the Cobb-Douglas model is used as a successful demand forecasting model to estimate the demand over the target years. Then, an architectural plan is developed for the fixed-telephony switching network that takes in...

INTERNET telephony or Internet TELEPHONY?

Internet telephony (or VoIP) has been viewed in two different ways. First, some hold that it is largely similar to earlier architectural changes in the PSTN, continuing the transition from analog to circuit-switched digital and now to packet-switched transmission. Others believe that Internet telephony is primarily another Internet application that happens to interconnect with a “legacy” networ...