Telecommunications is part of a wider industry which includes computing, information technology, films and broadcasting. It is concerned with the manufacture and supply of the means by which communication takes place within this wider group, the structure of which is illustrated in Table 1.1. This chapter presents the telecommunication economics which deserves special study, because (i) It is becoming a central component in many commercial and government processes, including finance, transport and the management of public services, (ii) The industry is dominated by powerful firms. Regulation is needed to protect consumer interests, (iii) Its economics exemplify issues, such as economies of scale, network externalities and cost allocation in a multiproduct industry, which arise in many other industries. (iv) It is widely seen as spearheading social change based on the use of new technology. Even on a minimal view it is a powerful facilitator comparable with transport and postal services.

Inspec keywords: telecommunication industry; telecommunication services

Other keywords: information technology; multiproduct industry; cost allocation; public service management; world telecommunication economics; postal services

Subjects: Telecommunication applications