Regulating Broadband In Chile: The Debate Over Open Access

2017 words, 9 pages

Intro Sample...


UGBA101A

1. Telephone companies were given the opportunity to set their own prices unless Chile’s antitrust agency determined that there was not sufficient competition for a certain service or geographical region. As a result, the telecommunications regulatory agency, known as SUBTEL, would determine the maximum price the dominating firm could charge for the given service or region. However, firms outside of the one dominating were allowed to set any price they saw fit and could change the prices whenever they desired. The price that SUBTEL ultimately established was reliant upon assumptions of an efficient firm in the industry, such as technology and cost structures. Furthermore, SUBTEL was responsible for predicting demand for a... View More »

Body Sample...



As for new entrants, these new firms charge the same price as the monopoly does, where the dominant firm’s marginal cost = marginal revenue. While the monopoly operates at zero economic profit, the new entrants initially build networks that serve only high volume customers in areas that are less costly to wire. Thus, the new firms’ marginal cost curve is in fact lower than the incumbent’s marginal cost curve due to a difference in their cost structures. Thus, the new firms operate at an economic profit. If they were to continue to invest in their businesses and expand, they would also have a zero economic profit like the incumbent. However, because they operate at an economic profit, these new entrants have no incentive to expand. These new firms stay the size that they are, leading to a higher producer surplus and a deadweight loss to society.
This regulation is thus asymmetric because the monopoly earns zero economic profit even though they made the initial investments, while the new firms earn an economic profit and also a deadweight loss to society. The effects of this regulation are thus that there will be many new firms, causing an increase in supply. As new firms enter, supply increases, decreasing the actual market equilibrium price. Because regulation will always only just cover the economic costs of the dominant firm so they earn zero economic profit, then the new entrants will continue to earn a larger and larger economic profit, ultimately providing more of a deadweight loss to society.
3. Services-based competition takes into account that the ...

Read More

Related Essays on Regulating Broadband in Chile: The Debate Over Open Access

  • Gapanalysis Global Comm

    2139 words, 9 pages

    Introduction The telecommunications industry is ever evolving and Global Communications has failed to adapt. An industry that was characterized by local monopolies in the 1980s has seen a shift in recent years towards the global market (Cansfiled 2007). In recent years excess competition has led to a decrease in over 50% of Global Communications stock. Questionable decision making and internal communication have forced leadership to a decision of outsourcing call centers to foreign countries and a push through new products towards globalization. This paper attempts identify: The issues

    View Document »

    Speech On Religion

    2723 words, 11 pages

    The ethical issue I will be discussing is IVF, in relation to the Christian religions Catholic and Anglican. IVF is used in cases of infertility –where the woman’s fallopian tubes are absent or blocked, the men’s sperm count is low, or the couple’s infertility is unexplained. It is an assisted reproductive technology in which one or more eggs are fertilized outside a female’s body. To do this, eggs are collected from the ovaries and placed in a dish with a large number of sperm for approx. 18 hours. The eggs are then placed in a special growth medium which allows fertilizatio

    View Document »

    Special Economic Zones In India

    21349 words, 86 pages

    Introduction to Economic Zones “Export else perish “ these are the words of first Prime Minister of India Pt. Jawaharlal Nehru. India being a continent like country having 30 states, more than 1000 languages and world second largest man power having diversified natural conditions right from Rain Forests of Kerala, Ice Mountains of Himalaya, Runn of Kuch to productive land of Bramahaputra has great potentials of world class export worthy products from various industries like Agriculture, Engineering, Chemicals, Software’s, Gems and Jewellry, Pharmaceuticals, Bio technology and many more.

    View Document »

    The Virgin Group.doc

    7112 words, 29 pages

    THE VIRGIN GROUP CASE STUDY QUESTION 1: What examples does the case give of links between Branson’s strategy for Virgin and the environment in which it operates? The Virgin Group Ltd is a group of separately run British companies with the Virgin brand under the leadership of English celebrity business tycoon Sir Richard Branson. The core business areas are travel, entertainment and lifestyle, among others. Richard Branson’s strategy comes from his deepest inner beliefs; “in principle there were no product or service boundries limiting a brand name, provided it was as

    View Document »

    A Study Of The Technological Environment Of Mobile Services Industry Of India

    5698 words, 23 pages

    Cellular System Technologies Mobile phones send and receive radio signals with any number of cell site , base stations fitted with antennas. The communication between the handset and the cell site is a stream of digital data that includes digitized audio. The technology that achieves this depends on the system which the mobile phone operator has adopted. The Common Technologies used by operators in India are GSM and CDMA. With the advent of 3G technology systems a new era in Mobile technology in India is about to be born. GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATION) GSM is a widely used

    View Document »

    Business

    4947 words, 20 pages

    The ultimate smartphone smackdown of 2008 Smart phones get smarter, more personal By Keith Shaw , Network World , 11/03/2008 http://www.networkworld.com/news/2008/110308-guide-mobility-smartphone-showdown.html?page=7 The skinny: Enterprises shouldn't automatically dismiss the iPhone for mobile workers just because it's made by Apple. The company has made an effort with the second-generation iPhone to get into the enterprise, with features such as Exchange support, remote wipe and VPN access. Whether enterprises will bite is up to the company and how stringent their policies are regarding

    View Document »

    School District Adminstration

    5222 words, 21 pages

    Capetown High School [pic] Taking a Bite out of Education!!! Cougar ISD Capetown High School 1979 Shoreside Drive Capetown, Texas 73911 Principal- Scott Thomison Assistant Principal- Guillermo Altamirano Academic Counselor- Travis Cole Athletic Director- Mike Nelson Health & Fitness- Matt Tarbutton Counselor- Emilio Luna IT- John Kenna Mascot- Sharks School Colors- Navy Blue and White Motto- Taking a Bite out of Education! Mission Statement: To provide all learners with the leadership and knowledge of today. To prepare learners for the rigors of life, today, tomo

    View Document »

    Importance Of Marketing

    1212 words, 5 pages

    Walt Disney Corporation The Walt Disney Corporation (Disney) is an entertainment conglomerate with operations in the media networks, studio entertainment, parks and resorts and consumer products. They operate in North America, Europe, Asia Pacific and South America, with the U.S. being the major market. In order for Disney to experience long term growth, they have established 3 marketing priorities: creative innovation, global expansion and application of technology. With the execution of their marketing strategies, they had a great creative year in 2005. For creative innovation, they have

    View Document »

    Corporate Social Responsibility (Csr) Necessary For Companies

    824 words, 4 pages

    UGBA10 CSR or Corporate Social Responsibility is a form of corporate self-regulation integrated into a business through the three P’s: profit, planet, and people. There are many arguments that are for and against Corporate Social Responsibility (CSR). Though the arguments go back and forth, CSR is ultimately very necessary for a corporation for it helps in the realm of marketing, PR and government regulation. Many believe that CSR can help the overall image and management of a company. Through positive PR, those in favor of CSR see it as a win-win. Through it compan

    View Document »

    Science Of The Nazca – South American Plate Boundary

    379 words, 2 pages

    The Chile Earthquake of 2010 is one geological event that was associated with the Nazca/South American Plate Boundary. The magnitude 8.8 earthquake struck at 3:34 A.M. on February 27, 2010, with an epicenter 200 miles southwest of Santiago, and a focus 22 miles below the surface of the Pacific Ocean. A 300 to 375 mile stretch of the fault had ruptured, and caused the earthquake. This fracture was caused by the stress brought on by the convergence between the Nazca and the South American Plates, and the fracture had a secondary effect of lifting a portion of seabed in the Pacific Ocean, causing

    View Document »

More Popular Essays

Research help is just moments away!