Alternative transmission modes for telecommunications networks A production-theoretical approach

Since the introduction of competition in the telecommunications sector, private firms have been facing new possible choices concerning their telecommunications systems. To evaluate these possibilities the traditional microeconomic production theory proves to be helpful. Cost minimal solutions to practical problems of a new entrant in the telecommunication market, the technology of which is modelled as a production function, are presented. <!--ID=""Acknowledgements. The author wishes to thank Toralf Rustenbach, T-Mobil, for programming the iterative formulas, which are the basis of the graphical presentations in the figures of this paper, and Martin Pohl, Fachhochschule Regensburg, for his helpful comments.-->