Download PDF by J.J. Wheatley: World telecommunications economics

By J.J. Wheatley

ISBN-10: 0852969368

ISBN-13: 9780852969366

This booklet bridges the worlds of the economist, the engineer, the regulator and the executive. It outlines the know-how of the topic in adequate aspect to supply an knowing of the industry's economics, and provides a finished photograph of the markets into which its services are bought

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Techniques of discounted cashflow (DCF) analysis can be found in accounting text books such as Brealey and Myers [1]. The key economic input is the discount rate, which must be at least as high as the cost to the firm of borrowing new capital. British and American regulators calculate the cost of capital for the companies which they regulate. 1 Calk Calls, sometimes generically called transmissions, may carry voice (the spoken word) or data, in the form of coded on/off signals such as Introduction 9 those between computers.

Digital transmission has cost and operational advantages [1]. Costs have been falling for the electronic equipment required with evolving technology, proving an increasing cost advantage against analogue systems, and time-division multiplexing is cheaper than frequencydivision multiplexing. Multiplexing costs are of increasing importance because the carrying power of cables is rising, permitting more channels to be fitted into each. All signals are subject to corruption from background noise during transmission and the corruption rises with transmission speed.

The latter figure represents annual investments totalling about £46 bn ($74 bn). In the context of world population the three-year total comes to eight lines per 1000 people and £8 per head. The acceleration in growth and its bias towards die low income countries are striking features of the figures. In 1992, some 60 per cent of the world's exchange lines were in the hands of 17 operators in ten countries [4]. Five years later, after mergers in the USA, the same territories were held by 15 operators and comprised 58 per cent of the lines [6].

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World telecommunications economics by J.J. Wheatley


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