International Journal of Communications Law & Policy

CALL ORIGINATION AND TERMINATION CHARGES FOR ACCESSING THE INTERNET

By Martin Cave and Peter Crowther

Download the Paper in PDF Format: IJCLP Web-Doc 1-4-1999 (also available in German and French).

Abstract

This paper examines the economic issues underlying the present structures of charges for calls to the Internet from the point of view of both the telecommunications regulatory system and the competition rules. The authors believe that challenging some of the assumptions underlying the current regulatory structure will allow regulators to take steps within the current regulatory framework which can lead to increased competition and consumer choice on the retail Internet market.This will in turn lead to lower prices for consumers and growth in penetration and use of the Internet. The paper considers the three main criteria against which the current charging regimes can be considered: optimal network usage, efficient alternative infrastructure investment, and demand led growth in the retail markets of call services and Internet service provision. The paper concludes that there are sound economic arguments in favour of changes to the current regulatory system of Internet call charges. In relation to call origination.