13 December 2005

Importance of pricing in telecommunications

We tend to get distracted by technologies in trying to explain market events that we sometimes might forget that pricing can play a significant role. This article highlights this, as did the 1989 Telecommunications Policy article by Jill Hills, in which she used the different pricing structures in the US and the UK as a partial explanation as to the differences in telephone penetration between the two countries in the 1980s (and before).

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2 comments:

Brian said...

It is worth checking out our paper, which the CD Howe completely forgot in looking at this issue. I think they got part of the problem, but not the entire problem.

The Paper is called: Lessons for Canada: Wireless Pricing, a cross national Survey.

Unfortunately the whole paper is only for clients, but the summary is posted on thie site. It's frightening stuff.

www.seaboardgroup.com

Martin Weiss said...

Thanks, Brian. Here is the direct URL for the report summary. The figure says it all ...