On the Cost Structure and the Regional Gap of the Japanese Local Telecommunications
نویسندگان
چکیده
The focus of the Japanese local telecommunications policy is moving toward how to solve the problem of the digital divide that accompanies the spread of high-speed and broadband services. This paper estimates the translog cost function of two outputs, the standard telephone service and the leased circuit service, and measures the regional gap of those stand-alone costs and incremental costs. The main point we make is that the cost gap for the leased circuit service is larger than that for the standard telephone service among NTT’s eleven regional offices. JEL classifications: L52, L96
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