Handbook of Telecommunications Economics

Citation

Cave, M.E., Majumdar, S.K. and Vogelsang, I. (2003), "Handbook of Telecommunications Economics", info, Vol. 5 No. 4, pp. 46-46. https://doi.org/10.1108/14636690310495265

This impressive book (with an equally impressive price!) is the first volume of three, and is also the first of two multi‐volume “handbooks” of telecommunications economics around the world (the other, from Edward Elgar, is edited by Australia’s Gary Madden and will be reviewed on these pages when it appears). This is edited by two British and one US economist, respectively, and includes the work of 24 collaborators who have provided extensive original chapters.

The Handbook appears in 15 chapters divided into three sections that follow an overview essay by the editors. Part one on “structure,” includes chapters on the development of the industry and its regulation in the USA, a survey of network effects, a discussion of customer demand analysis, a review of econometric cost functions, and the representation of technology and production. Part two on “regulation,” surveys price regulation, the theory of access pricing and interconnection, interconnection practices, and universal residential telephone service. And part three, “competition” assesses the general role of competition policy in telecommunication, competition more specifically in the long distance market, mobile telephony service competition, those expensive spectrum auctions, and local network competition.

This is an important book, part of an important, even landmark, publication. The work is solid, well‐documented, up‐to‐date, and provides a valuable assessment of where things stand in an industry undergoing both dramatic change and a fearsome economic meltdown. Some of the material here does presume a strong economic background, while other parts can be effectively used by those with other backgrounds. In any case, this is an impressive achievement, of value to readers in many countries.