Deregulation and the successful introduction of competition to the market for telephone services raise the complex issue of interconnection. Incumbent telephone companies have an incentive to maximize profits by charging entrants the highest interconnection price possible. In New Zealand, the debate over the proper terms of interconnection was brought before the courts under the country's antitrust laws. The incumbent attempted to establish "the parity principle" as the standard for interconnection. As proposed in New Zealand, the parity principle would allow an unregulated monopolist to set access charges at a level sufficient to compensate it for the financial consequences of entry. Justification for this standard lies in claims that any other interconnection rule would be inefficient. Tye and Lapuerta critique these efficiency claims. They argue that the proposed rule would frustrate goals of competition, including: constraining monopoly pricing, enhancing dynamic efficiency and encouraging technological progress. The authors reject the parity principle in favor of a proposal that compensates rival networks for terminating inter-network calls on the basis of long-run incremental cost. They explain how interconnection on these terms can simultaneously promote successful competition and efficiency in the provision of telephone service.
The export option will allow you to export the current search results of the entered query to a file. Different
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By default, clicking on the export buttons will result in a download of the allowed maximum amount of items.
To select a subset of the search results, click "Selective Export" button and make a selection of the items you want to export.
The amount of items that can be exported at once is similarly restricted as the full export.
After making a selection, click one of the export format buttons. The amount of items that will be exported is indicated in the bubble next to export format.