The Economies of Scale and Scope of the Japanese Local Telecommunications: Basic Service vs. Advanced Service
نویسنده
چکیده
This letter will take an example from the Japanese local telecommunications industry in the 1990s and analyze the cost structures of a basic service and an advanced service, focusing on the economies of scale and scope. Here, the basic service is defined as the plain old telephone service (POTS) while the advanced service the leased circuit service. There are three points we will make: first, the economies of scale do not exist in the telephone service; second, the economies of scale exist in the leased circuit service; third, the economies of scope exist between them. Address: Takanori Ida E-mail: [email protected] Until 15/7/2002: 12A Victoria Avenue, Cambridge CB4 1EH, UK Tel&Fax: +44-1223-479465 From 16/7/2002: 12-7-104 Hattyo-nawate, Takatsuki, Osaka 569-0096, Japan
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