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Economics as a Guide to Telecom Reform Jerry Ellig Senior Research Fellow [email_address]
What is the goal? ,[object Object],[object Object],[object Object],[object Object]
Why consumer welfare? ,[object Object],[object Object],[object Object],[object Object],[object Object]
When consumer welfare isn’t enough ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What promotes consumer welfare? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What has telecom regulation done historically? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Understanding unseen consumer costs ,[object Object],[object Object],[object Object],[object Object]
Annual effects on overall welfare Sources: See final slide. -$1.5 billion  in addition to  revenue raised Interstate long-distance access charges $144 million reduction in USF fees plus $41 million gain in welfare Texas USF reforms (2007) -$9.6 billion  in addition to  revenue raised ALL wireless add-on charges -$6.8 billion nationally Barriers to wireline video competition -$50 billion annually Delay intro of cell phones -$1.27 billion annually 10-year voice mail delay -$176 million  in addition to  revenue raised Pre-reform Texas USF charges -$1.2 billion  in addition to  revenue raised Federal USF charges
What is a competitive market in telecom? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Texas “big bang” telecom reform 2005 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
References ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Economics As a Guide to Telecom Reform

  • 1. Economics as a Guide to Telecom Reform Jerry Ellig Senior Research Fellow [email_address]
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  • 8. Annual effects on overall welfare Sources: See final slide. -$1.5 billion in addition to revenue raised Interstate long-distance access charges $144 million reduction in USF fees plus $41 million gain in welfare Texas USF reforms (2007) -$9.6 billion in addition to revenue raised ALL wireless add-on charges -$6.8 billion nationally Barriers to wireline video competition -$50 billion annually Delay intro of cell phones -$1.27 billion annually 10-year voice mail delay -$176 million in addition to revenue raised Pre-reform Texas USF charges -$1.2 billion in addition to revenue raised Federal USF charges
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