Regulating Telecommunications : Lessons from U.S. Price Cap Experience

Price cap regulation uses a formula, set in advance, to determine the price increases for a firm's services for a period of several years. During this period, the firm may keep all the benefits of its incremental productivity gains. Customers...

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Bibliographic Details
Main Author:	Rohlfs, Jeffrey H.
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	COMPETITIVE ENVIRONMENT INFLATION MARKET SHARE PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE INCREASES PRICE LEVELS PRICE REDUCTIONS PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY QUALITY OF SERVICE SECURITIES REGULATIONS PRICE CONTROLS DEVELOPING COUNTRIES RATE OF RETURN REGULATION TELECOMMUNICATIONS
Online Access:	http://documents.worldbank.org/curated/en/1996/01/441234/regulating-telecommunications-lessons-price-cap-experience http://hdl.handle.net/10986/11639

id	okr-10986-11639
recordtype	oai_dc
spelling	okr-10986-116392021-06-14T11:04:24Z Regulating Telecommunications : Lessons from U.S. Price Cap Experience Rohlfs, Jeffrey H. COMPETITIVE ENVIRONMENT INFLATION MARKET SHARE PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE INCREASES PRICE LEVELS PRICE REDUCTIONS PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY QUALITY OF SERVICE SECURITIES REGULATIONS PRICE CONTROLS DEVELOPING COUNTRIES INFLATION PRICE CAP REGULATION RATE OF RETURN REGULATION TELECOMMUNICATIONS Price cap regulation uses a formula, set in advance, to determine the price increases for a firm's services for a period of several years. During this period, the firm may keep all the benefits of its incremental productivity gains. Customers can also benefit because the price cap formula may cause prices to rise less rapidly during the period. The sharpened incentives created may encourage the firm to offer innovative new services. After the period ends, regulators may order price reductions that reflect productivity gains during the period. This Note presents the advantages of using price cap over rate-of-return (ROR) in regulating telecommunications carriers. It reviews the U.S. experience with price caps, focusing primarily on federal regulation. It then briefly discusses the lessons of this experience for developing countries. 2012-08-13T15:36:19Z 2012-08-13T15:36:19Z 1996-01 http://documents.worldbank.org/curated/en/1996/01/441234/regulating-telecommunications-lessons-price-cap-experience http://hdl.handle.net/10986/11639 English Viewpoint: Public Policy for the Private Sector; Note No. 65 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research United States
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	COMPETITIVE ENVIRONMENT INFLATION MARKET SHARE PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE INCREASES PRICE LEVELS PRICE REDUCTIONS PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY QUALITY OF SERVICE SECURITIES REGULATIONS PRICE CONTROLS DEVELOPING COUNTRIES INFLATION PRICE CAP REGULATION RATE OF RETURN REGULATION TELECOMMUNICATIONS
spellingShingle	COMPETITIVE ENVIRONMENT INFLATION MARKET SHARE PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE INCREASES PRICE LEVELS PRICE REDUCTIONS PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY QUALITY OF SERVICE SECURITIES REGULATIONS PRICE CONTROLS DEVELOPING COUNTRIES INFLATION PRICE CAP REGULATION RATE OF RETURN REGULATION TELECOMMUNICATIONS Rohlfs, Jeffrey H. Regulating Telecommunications : Lessons from U.S. Price Cap Experience
geographic_facet	United States
relation	Viewpoint: Public Policy for the Private Sector; Note No. 65
description	Price cap regulation uses a formula, set in advance, to determine the price increases for a firm's services for a period of several years. During this period, the firm may keep all the benefits of its incremental productivity gains. Customers can also benefit because the price cap formula may cause prices to rise less rapidly during the period. The sharpened incentives created may encourage the firm to offer innovative new services. After the period ends, regulators may order price reductions that reflect productivity gains during the period. This Note presents the advantages of using price cap over rate-of-return (ROR) in regulating telecommunications carriers. It reviews the U.S. experience with price caps, focusing primarily on federal regulation. It then briefly discusses the lessons of this experience for developing countries.
format	Publications & Research :: Viewpoint
author	Rohlfs, Jeffrey H.
author_facet	Rohlfs, Jeffrey H.
author_sort	Rohlfs, Jeffrey H.
title	Regulating Telecommunications : Lessons from U.S. Price Cap Experience
title_short	Regulating Telecommunications : Lessons from U.S. Price Cap Experience
title_full	Regulating Telecommunications : Lessons from U.S. Price Cap Experience
title_fullStr	Regulating Telecommunications : Lessons from U.S. Price Cap Experience
title_full_unstemmed	Regulating Telecommunications : Lessons from U.S. Price Cap Experience
title_sort	regulating telecommunications : lessons from u.s. price cap experience
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/1996/01/441234/regulating-telecommunications-lessons-price-cap-experience http://hdl.handle.net/10986/11639
_version_	1764417466067320832

Regulating Telecommunications : Lessons from U.S. Price Cap Experience

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