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Even if all legal entry barriers were eliminited, telephone companies would face dim prospects for competing with cable television operators in the transport of video services, at least during this decade. This situation arises because the economic characteristics of fibre-based integrated...
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The author assesses the conflicting arguments put forward in the preceding 'position' articles by Wiley and deButts. He focuses on those points which he feels are unjustified or receive inadequate attention. These include the issues of subsidisation, possible market expansion, service...
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Continuing technological advance reinforces the conclusion in our earlier study that construction of integrated broadband networks (IBNs) consisting of fibre-to-the-home systems will not be the most promising way for local telephone companies to compete with incumbent cable television providers...
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International telecommunications facilities--both satellite and cable circuits--in the Atlantic and Pacific Ocean basins are characterized by persistent excess capacity. Although some excess is desirable to provide flexibility and protection against system failure, the problem is so great that...
Persistent link: https://www.econbiz.de/10009200082
Excess capacity in underseas cables and communications satellites may be used by their owners to deter entry by potential competitors. Because investment in capacity is an irreversible commitment, it enhances the credibility of the threat to cut prices to below cost as a 'predatory' tactic to...
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