Following the mainstream applied economic literature on the production structure of the telecommunications (TLC) carriers, the paper provides an econometric estimation of the overall effects of the adoption of optical systems in junction and trunk network on the aggregate long-run costs of the existing TLC European carriers. The analysis uses data from 16 European carriers over the 1980–'92 period. The optical systems are shown to have significantly reduced the costs of the European carriers. Firms operating non-rural and high density areas have benefited especially from the adoption of optical systems. In addition, the efficiency gain related to fibre optic lines turns out to be cumulative.

The adoption of optical systems: An econometric cost model of the European telecommunications carriers

GARRONE, PAOLA MARIA
1996-01-01

Abstract

Following the mainstream applied economic literature on the production structure of the telecommunications (TLC) carriers, the paper provides an econometric estimation of the overall effects of the adoption of optical systems in junction and trunk network on the aggregate long-run costs of the existing TLC European carriers. The analysis uses data from 16 European carriers over the 1980–'92 period. The optical systems are shown to have significantly reduced the costs of the European carriers. Firms operating non-rural and high density areas have benefited especially from the adoption of optical systems. In addition, the efficiency gain related to fibre optic lines turns out to be cumulative.
optical systems; efficiency; telecommunications
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/662410
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