Pricing Subscriber Access to the Telephone Network

by Bridger M. Mitchell


Download Free Electronic Document

FormatFile SizeNotes
PDF file 0.5 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback14 pages $20.00 $16.00 20% Web Discount

Residential telephone subscribers pay a monthly rate for local service that is less than the cost of access — the service of being connected to the telephone network. If the current subsidy from interstate long-distance calls is eliminated, local rates would rise an average of $4 per month (at 1981 cost levels). Telephone rates should include a monthly charge equal to the marginal cost of access, but higher monthly rates for access could induce some households to do without telephones; to mitigate this problem targeted subsidies, optional rates, and restricted service plans might be developed.

This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.