ECO 235 Economics of Telecommunication Industry Structure

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ECO 235 Economics of Telecommunication Industry
Structure

• Dr. David Loomis
• Department of Economics
• Illinois State University

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Industry Segments

• Voice
• Video
• Data

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In Each Segment

• Wireline technologies
• Wireless technologies

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Causes of Convergence

• Technology / Internet Protocol
• Telecommunications Act of 1996 (TA 96)
• Economics reduce costs, increase revenues,
  maximize profits

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4 Products that Consumers Seem to Want

• Landline voice
• High speed Internet Access
• Cable TV / Entertainment
• Wireless voice/data

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Landline Voice

• Long Distance Voice
• Local Voice

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Wireless Voice
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Video / Cable TV
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Data / Internet Access
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International