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Competition, Costs, Industry Convergence, Investment, Markets (Rural,
Suburban, Urban), Services, Technology |
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Part of a series on advanced technology
deployment, Pick a Card, shows the impact of arbitrary regulatory
treatment of new services before they've been deployed. A simple model
compares three different "cost allocation" scenarios on competition and
investment. It compares two networks types (telephone and cable TV) which
use the same facilities to carry voice and video services to customers. The example illustrates the consequences of applying rules developed for a
regulated monopoly market to a market with partial competition. Results
indicate that cost allocations developed for a regulated monopoly market,
arbitrarily favor one industry over another and inhibit competition.
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