Choosing New Telecommunications Technologies
Tradeoffs Between Conflicting Goals
Expert InsightsPublished 1981
Tradeoffs Between Conflicting Goals
Expert InsightsPublished 1981
This paper presents a general framework to explain how tradeoffs between conflicting goals may influence the choice of new telecommunications technologies. Six goals are considered: (1) economic efficiency, (2) security and privacy, (3) reliability and quality of service, (4) industrial stability, (5) international comity, and (6) technological innovation. Results of a case study involving a new technology, communications satellites, and an old one, undersea cables, illustrate how the general framework can help explain the level, mix, and cost of new, relative to existing, technologies. Tradeoffs between goals are reflected in regulatory policies — which affect pricing and investment behavior — which in turn determines the level and mix of cables and satellites.
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