The corporate market remains the industry's favorite. Big corporate customers are concerned mostly about the quality and reliability of their telephone calls and data delivery while being less price-sensitive than residential customers.
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Multinationals , spend heavily on telecom infrastructure and premium services like high-security private networks and videoconferencing. Network connectivity can also be provided to other telecom companies by wholesaling circuits to heavy network users like internet service providers and large corporations. In total over 5. In most other industry there are three waves between and Since deal value shrunk by From Wikipedia, the free encyclopedia. Deloitte United States. Retrieved Categories : Telecommunications economics Telecommunication industry.
Namespaces Article Talk. Views Read Edit View history. Languages Add links. Another economic research question is how to assure the financial viability of the infrastructure.
The financial balance between infrastructure, services, and users is a critical issue. The infrastructure is expensive and wants to be paid. Some of the media services are young and want to be left to grow. Users want to be served generously with free content and low-priced, flat-rate data service. Fundamental economics of competition push towards price deflation, but market power, and maybe regulation, pull in another direction.
Developing countries want to see money from communications as they did in the days of traditional telecom. Surely the other chapters of the book could have addressed these issues, which are being discussed publicly, see for example section 4 of the Summary of the ITU Open Consultation on so-called Over-the-Top OTT services. Some minor quibbles: Noam does not discuss the economic impact of adult entertainment, yet it is no doubt significant. The off-hand remark at the bottom of p. I found this to be the weakest chapter in the book. To begin with, it is mostly descriptive and contains hardly any real economic analysis.
New Handbook on Internet Economics - Media Change & Innovation - IKMZ - University of Zurich
But the descriptive part is also weak. The history on p. Since the book is about economics, surely it should have mentioned on pp. And surely it should have discussed in section In addition to not dealing with economic issues, section Section Indeed, at present, hardly anybody seriously questions the principle that offline law applies equally online. One would expect a scholarly work to do better than to cite inane political slogans meant for domestic political purposes. In particular when the citations are not used to underpin any semblance of economic analysis.
This chapter provides a solid and thorough introduction to the basics of the economics of the Internet. This chapter well presents the industrial organization of the Internet, that is, how the industry is structured economically, how its components interact economically, and how that is different from other economic sectors.
As the authors correctly state p. The chapter explains well key features such as multi-sided markets p. And it correctly points out p.
This is an excellent chapter, one of the best in the book. It explains how, because of the layered nature of the Internet, simple economic theories fail to capture its complexities. As the chapter says p. This chapter provides a sound and comprehensive description of the Internet as a network, but it does not go beyond the description to provide analyses, for example regarding regulatory issues. However, the numerous citations in the chapter do provide such analyses.
This chapter is also one of the best chapters in the book. It provides an excellent description of how value is produced on the Internet, through decentralization, diverse motivations, and separation of governance and management.
It covers, and explains the differences between, peer production, crowd-sourcing, collaborative innovation, etc. The key governance patterns in peer production are very well summarized on pp.
This chapter actually contains a significant amount of quantitative data which is not the case for most of the other chapters and provides what I would consider to be an economic analysis of the issue, namely whether, and if so how, the Internet has contributed to productivity. As the chapter points out, we lack sufficient data to analyse fully the impacts of the development of information and communication technologies since , but this chapter does make an excellent contribution to that analysis.
The discussion of two-sided markets on p. Unfortunately, however, the chapter is mostly a theoretical description: it does not refer to any actual data or provide any quantitative analysis of what is actually happening. This is another excellent chapters, one of the best in the book. I noted one missing citation to a previous analysis of key issues from the political economics point of view: Powers, Shawn M.
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But the key issues are well discussed in the chapter:. Nevertheless, the description of key online market characteristics, including that they are often two-sided, p. The description of the actual situation including litigation regarding search engines on p. The good discussion of network neutrality p.
This is an excellent introduction to the issues relating to copyright in the digital age. It provides little data but that is because, as noted on pp.
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As one would expect from its author, Ian Brown, this is an excellent discussion of the issues and, again, one of the best chapters in the book. In particular, the chapter explains well and clearly pp. This chapter provides a very good overview of the economic issues related to cybersecurity, but, like most of the other chapters, it provides very little data and thus no detailed economic analysis. However, the section on externalities fails to mention certain possible solutions, such as minimum security standards.
Minimum safety standards are imposed on many products, such as electrical appliances, automobiles, airplanes, pharmaceuticals, etc. Thus it would have been appropriate for the book to discuss the economic implications of minimum security standards.
This chapter provides a very good description, but it suffers from considering the Internet in isolation, without comparing it to other networks, in particular the fixed and mobile telephone networks. It would have been good to see a discussion and comparison of the economic drivers of innovation or lack of innovation in the two networks. And also a discussion of the economic role of the telephony signalling network, Signalling System Seven SS7 which enabled implementation of the widely used, and economically important, Short Messaging Service SMS.
In that context, it is important to note that SS7 is, as is the Internet, a connectionless packet-switched system. So what distinguishes the two networks is more than technology: indeed, economic factors such as how services are priced for end-users, interconnection regimes, etc. As explained on pp. And by some provisions in French law. Detailed references to the cited documents, and to other material relevant to platforms, are found in section 9 of my submission to the Working Group on Enhanced Cooperation.
This chapter provides a very good description of Internet interconnection, including a good discussion of the basic economic issues.
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