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Empirical Analysis of Entry in the Local Exchange Market: The Case of Pacific Bell

This article examines local exchange entry in SBC's California territory. Analysis is conducted based on five‐digit zip code areas. Information on economic, demographic, and regulatory variables, including prices of unbundled loops, is included in the analysis. Results of censored Poisson analy...

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Published in:Contemporary economic policy 2005-01, Vol.23 (1), p.107-115
Main Author: Roycroft, Trevor R.
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Language:English
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description This article examines local exchange entry in SBC's California territory. Analysis is conducted based on five‐digit zip code areas. Information on economic, demographic, and regulatory variables, including prices of unbundled loops, is included in the analysis. Results of censored Poisson analysis indicate that these economic, demographic, and regulatory variables play a statistically significant role in leading to higher probabilities of low levels of entry in areas where loop prices are higher, fewer large businesses exist, and costs of self‐provision are higher. (JEL L51, L96)
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subjects Case studies
Communications industry
Communications networks
Competition
Competitive local exchange carriers
Customer services
Demographics
Economic conditions
Economic policy
Exchange market
Government communications regulation
Government regulation
Laws, regulations and rules
Local area networks
Market entry
Market shares
Policy studies
Postal codes
Prices
Regulation
Small business
Stock exchanges
Studies
Telecommunication
Telecommunications industry
Telecommunications regulations
Telecommunications services industry
U.S.A
title Empirical Analysis of Entry in the Local Exchange Market: The Case of Pacific Bell
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