Acknowledgements I would like to express my gratitude towards my supervisor Sjouke Mauw for his support in finding a suitable project, his guidance and support during the project, and his confidence. I'm also grateful to Chess iT and my company supervisor Bert Bos in particular, for giving me the opportunity to do my research there and for allowing me the freedom to choose the direction of my r...

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, t...

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