Are Cost Models Useful for Telecoms Regulators in Developing Countries?

Worldwide privatization of the telecommunications industry, and the introduction of competition in the sector, together with the ever-increasing rate of technological advance in telecommunications, raise new and critical challenges for regulation. Fo matters of pricing, universal service obligations...

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Main Authors:	Benitez, Daniel A., Estache, Antonio, Kennet, D. Mark, Ruzzier, Christian A.
Format:	Publications & Research
Language:	en_US
Published:	World Bank, Washington, DC 2015
Subjects:	telecommunication industries regulatory framework competitiveness developing countries technological capacity telecommunication rates pricing reforms service fees cost effectiveness capacity building infrastructure privatization monopolies information exchange access to data aggregation alternative use area asymmetric information benchmark benchmarking benchmarks blue census block census data center centroid classification competitive markets consumers cost minimization data collection data sources decision-making democracy economic costs economic models efficient regulation employment excess profits factors of production GIS income inefficiency information asymmetries input prices interface modeling multilateral trade networks opportunity cost optimization perfect information policy decisions programs radio realism regulatory policy resource allocation simulation telecommunications telecommunications industry telecommunications services telecoms telecoms sector telephone companies telephone services trade negotiations trade policies transparency undue influence universal service universal service obligations World Trade Organization
Online Access:	http://hdl.handle.net/10986/21425

id	okr-10986-21425
recordtype	oai_dc
spelling	okr-10986-214252021-04-23T14:04:02Z Are Cost Models Useful for Telecoms Regulators in Developing Countries? Benitez, Daniel A. Estache, Antonio Kennet, D. Mark Ruzzier, Christian A. telecommunication industries regulatory framework competitiveness developing countries technological capacity telecommunication rates pricing reforms service fees cost effectiveness capacity building infrastructure privatization monopolies information exchange access to data aggregation alternative use area asymmetric information benchmark benchmarking benchmarks blue census block census data center centroid classification competitive markets consumers cost minimization data collection data sources decision-making democracy economic costs economic models efficient regulation employment excess profits factors of production GIS income inefficiency information asymmetries input prices interface modeling monopolies multilateral trade networks opportunity cost optimization perfect information policy decisions programs radio realism regulatory policy resource allocation simulation telecommunications telecommunications industry telecommunications services telecoms telecoms sector telephone companies telephone services trade negotiations trade policies transparency undue influence universal service universal service obligations World Trade Organization Worldwide privatization of the telecommunications industry, and the introduction of competition in the sector, together with the ever-increasing rate of technological advance in telecommunications, raise new and critical challenges for regulation. Fo matters of pricing, universal service obligations, and the like, one question to be answered is this: What is the efficient cost of providing the service to a certain area or type of customer? As developing countries build up their capacity to regulate their privatized infrastructure monopolies, cost models are likely to prove increasingly important in answering this question. Cost models deliver a number of benefits to a regulator willing to apply them, but they also ask for something in advance: information. Without information, the question cannot be answered. The authors introduce cost models and establish their applicability when different degrees of information are available to the regulator. They do no by running a cost model with different sets of actual data form Argentina's second largest city, and comparing results. Reliable, detailed information is generally scarce in developing countries. The authors establish the minimum information requirements for a regulator implementing a cost proxy model approach, showing that this data constraint need not be that binding. 2015-02-10T20:23:04Z 2015-02-10T20:23:04Z 2000-07 http://hdl.handle.net/10986/21425 en_US Policy Research Working Paper;No. 2384 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean ARGENTINA
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	telecommunication industries regulatory framework competitiveness developing countries technological capacity telecommunication rates pricing reforms service fees cost effectiveness capacity building infrastructure privatization monopolies information exchange access to data aggregation alternative use area asymmetric information benchmark benchmarking benchmarks blue census block census data center centroid classification competitive markets consumers cost minimization data collection data sources decision-making democracy economic costs economic models efficient regulation employment excess profits factors of production GIS income inefficiency information asymmetries input prices interface modeling monopolies multilateral trade networks opportunity cost optimization perfect information policy decisions programs radio realism regulatory policy resource allocation simulation telecommunications telecommunications industry telecommunications services telecoms telecoms sector telephone companies telephone services trade negotiations trade policies transparency undue influence universal service universal service obligations World Trade Organization
spellingShingle	telecommunication industries regulatory framework competitiveness developing countries technological capacity telecommunication rates pricing reforms service fees cost effectiveness capacity building infrastructure privatization monopolies information exchange access to data aggregation alternative use area asymmetric information benchmark benchmarking benchmarks blue census block census data center centroid classification competitive markets consumers cost minimization data collection data sources decision-making democracy economic costs economic models efficient regulation employment excess profits factors of production GIS income inefficiency information asymmetries input prices interface modeling monopolies multilateral trade networks opportunity cost optimization perfect information policy decisions programs radio realism regulatory policy resource allocation simulation telecommunications telecommunications industry telecommunications services telecoms telecoms sector telephone companies telephone services trade negotiations trade policies transparency undue influence universal service universal service obligations World Trade Organization Benitez, Daniel A. Estache, Antonio Kennet, D. Mark Ruzzier, Christian A. Are Cost Models Useful for Telecoms Regulators in Developing Countries?
geographic_facet	Latin America & Caribbean ARGENTINA
relation	Policy Research Working Paper;No. 2384
description	Worldwide privatization of the telecommunications industry, and the introduction of competition in the sector, together with the ever-increasing rate of technological advance in telecommunications, raise new and critical challenges for regulation. Fo matters of pricing, universal service obligations, and the like, one question to be answered is this: What is the efficient cost of providing the service to a certain area or type of customer? As developing countries build up their capacity to regulate their privatized infrastructure monopolies, cost models are likely to prove increasingly important in answering this question. Cost models deliver a number of benefits to a regulator willing to apply them, but they also ask for something in advance: information. Without information, the question cannot be answered. The authors introduce cost models and establish their applicability when different degrees of information are available to the regulator. They do no by running a cost model with different sets of actual data form Argentina's second largest city, and comparing results. Reliable, detailed information is generally scarce in developing countries. The authors establish the minimum information requirements for a regulator implementing a cost proxy model approach, showing that this data constraint need not be that binding.
format	Publications & Research
author	Benitez, Daniel A. Estache, Antonio Kennet, D. Mark Ruzzier, Christian A.
author_facet	Benitez, Daniel A. Estache, Antonio Kennet, D. Mark Ruzzier, Christian A.
author_sort	Benitez, Daniel A.
title	Are Cost Models Useful for Telecoms Regulators in Developing Countries?
title_short	Are Cost Models Useful for Telecoms Regulators in Developing Countries?
title_full	Are Cost Models Useful for Telecoms Regulators in Developing Countries?
title_fullStr	Are Cost Models Useful for Telecoms Regulators in Developing Countries?
title_full_unstemmed	Are Cost Models Useful for Telecoms Regulators in Developing Countries?
title_sort	are cost models useful for telecoms regulators in developing countries?
publisher	World Bank, Washington, DC
publishDate	2015
url	http://hdl.handle.net/10986/21425
_version_	1764448224669597696

Are Cost Models Useful for Telecoms Regulators in Developing Countries?

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