| 来源类型 | Article |
| 规范类型 | 评论 |
| Mandatory Unbundling, UNE-P, and the Cost of Equity | |
| J. Gregory Sidak; Allan T. Ingraham | |
| 发表日期 | 2003-02-13 |
| 出版年 | 2003 |
| 语种 | 英语 |
| 摘要 | The Telecommunications Act 1996 sought to advance competition in market for local exchange service by promoting facilities-based investment.[1] In implementing the new legislation, the Federal Communications Commission (FCC) stressed the importance of preserving the investment incentives of both the incumbent local exchange carriers (ILECs) and the competitive local exchange carriers (CLECs).[2] However, economic research has explained that forcing an ILEC to share its network with a competitor at total long-run incremental cost (TELRIC) will deter it from investing in its network. Thomas M. Jorde, J. Gregory Sidak, and David J. Teece explained in this Journal that mandatory unbundling harms ILEC investment because it increases the ILEC’s cost of equity.[3] In particular, CLECs are more likely to lease unbundled network elements (UNEs) when demand for telecommunications services is weak, because low prices for those services cannot support the high sunk costs of facilities-based investment in the short-term.[4] Alternatively, when demand for telecommunications services is strong, higher prices for those services will afford a CLEC additional revenue to build out its network.[5] Because TELRIC prices are not compensatory in economic terms, ILEC returns will suffer in times of recession and improve during an expansion.[6] When the return on an asset becomes more volatile relative to the market, an investor demands a higher premium on that stock because it has made the return on the investor’s portfolio less certain.[7] Should an ILEC’s systematic risk (commonly known as beta risk) increase in times of recession, its cost of equity would rise. Hence, the ILECH’s ability to invest in its network would diminish. Click here to read the full paper as an Adobe Acrobat PDF. |
| 主题 | Economics |
| URL | https://www.aei.org/articles/mandatory-unbundling-une-p-and-the-cost-of-equity/ |
| 来源智库 | American Enterprise Institute (United States) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/238359 |
| 推荐引用方式 GB/T 7714 | J. Gregory Sidak,Allan T. Ingraham. Mandatory Unbundling, UNE-P, and the Cost of Equity. 2003. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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