COMPETITION BETWEEN TELECOMMUNICATIONS OPERATORS

Many observers of the telecommunications industry predict that regulat ion will soon give way to competition policy. The paper analyzes unreg ulated network competition, both in the mature and the transition phas e of the industry. It considers competition in linear or nonlinear pri ces for customers, and also considers both nondiscriminatory pricing a nd termination-based discriminatory pricing. The paper investigates wh ether freely negotiated access charges are compatible with effective c ompetition in the mature phase of the industry, and do not erect barri ers to entry in the transition towards competition. Last, it analyzes the meaning and impact of the Efficient Component Pricing Rule in the context of network competition. (C) 1997 Elsevier Science B.V.