Competition, Pricing, and Regulatory Policy in the International Telephone Industry

by Leland Johnson

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This report focuses on the characteristics of prices charged by international telecommunications carriers to their customers or "end users," and the arrangements by which carriers in separate countries compensate each other for handling portions of traffic that together permit end-to-end "retail" service. More specifically, the study examines the relationships between international telephone rates and the cost of service, the impediments to efficient pricing of telephone service, the effects of competition on prices and financial settlements among telephone carriers, and the implications for economic efficiency and government regulatory policy.

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