In many countries there is widespread concern at the level of mobile termination charges. This is... more In many countries there is widespread concern at the level of mobile termination charges. This is attributable to the bottleneck monopoly created by the Calling Party Pays (CPP) principle. It has led to increasingly severe price controls on termination charges. Regulatory experience in the three foremost such countries (UK, Australia and New Zealand) suggests that price controls are of limited effectiveness in aligning termination charges with costs, that net welfare gains from controls are small and that costs of setting controls are high.The Receiving Party Pays (RPP) principle, which applies in North America and several Asian countries, avoids the bottleneck monopoly problem. After allowing for various economic and technical average revenue (price) per call is significantly lower with RPP, average minutes of usage per subscriber are significantly higher and the mobile penetration rate is not significantly different. Handset subsidies seem to be lower in the US (with RPP) than in ...
In the last two decades many major regulatory issues in Florida have been resolved by means of st... more In the last two decades many major regulatory issues in Florida have been resolved by means of stipulated settlements between the utilities and interested parties, notably the Office of Public Counsel, instead of by the traditional method of hearings and litigation before the Public Services Commission. This paper investigates the extent, nature and effects of these stipulations in the electricity sector there. They have now largely superceded the litigated process. Their purpose is not to save costs, which are orders of magnitude less than the revenues at stake. Stipulations have brought reductions in electricity revenues worth over $3 billion, mainly during the last decade. These reductions are greater than would have otherwise occurred: about three quarters might never have occurred at all. In some cases a change in the method of rate reduction favoured industrial consumers but other customers are nonetheless likely to have benefited despite this. Some benefits were outside the s...
... In the late 1960s and early 1970s the rises in oil prices, inflation and interest rates ... A... more ... In the late 1960s and early 1970s the rises in oil prices, inflation and interest rates ... AlternativeDispute Resolution (ADR) mechanisms (sometimes including settlements) were also proposed. 7. ... and CAB), has had signal success in settling rate cases especially for gas pipelines. ...
In many countries there is widespread concern at the level of mobile termination charges. This is... more In many countries there is widespread concern at the level of mobile termination charges. This is attributable to the bottleneck monopoly created by the Calling Party Pays (CPP) principle. It has led to increasingly severe price controls on termination charges. Regulatory experience in the three foremost such countries (UK, Australia and New Zealand) suggests that price controls are of limited effectiveness in aligning termination charges with costs, that net welfare gains from controls are small and that costs of setting controls are high.The Receiving Party Pays (RPP) principle, which applies in North America and several Asian countries, avoids the bottleneck monopoly problem. After allowing for various economic and technical average revenue (price) per call is significantly lower with RPP, average minutes of usage per subscriber are significantly higher and the mobile penetration rate is not significantly different. Handset subsidies seem to be lower in the US (with RPP) than in ...
In the last two decades many major regulatory issues in Florida have been resolved by means of st... more In the last two decades many major regulatory issues in Florida have been resolved by means of stipulated settlements between the utilities and interested parties, notably the Office of Public Counsel, instead of by the traditional method of hearings and litigation before the Public Services Commission. This paper investigates the extent, nature and effects of these stipulations in the electricity sector there. They have now largely superceded the litigated process. Their purpose is not to save costs, which are orders of magnitude less than the revenues at stake. Stipulations have brought reductions in electricity revenues worth over $3 billion, mainly during the last decade. These reductions are greater than would have otherwise occurred: about three quarters might never have occurred at all. In some cases a change in the method of rate reduction favoured industrial consumers but other customers are nonetheless likely to have benefited despite this. Some benefits were outside the s...
... In the late 1960s and early 1970s the rises in oil prices, inflation and interest rates ... A... more ... In the late 1960s and early 1970s the rises in oil prices, inflation and interest rates ... AlternativeDispute Resolution (ADR) mechanisms (sometimes including settlements) were also proposed. 7. ... and CAB), has had signal success in settling rate cases especially for gas pipelines. ...
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