The structural transformation of the Intercity Telecoms Market (ITM).
The structural transformation of the
Intercity Telecoms Market (ITM)
Some regulatory economists have long argued that the long distance telephone market (or ITM) has long since been “transformed” from natural monopoly to a structure that can efficiently accommodate several long distance providers.
What caused the transformation?
Growth of demand
The shift from coaxial cableto microwave might shiftthe cost curve from AC1 to AC2. Or itmight shift all the way to AC*
Notes on Figure 15.6 (p. 489)