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OSIPTEL Working Documents Print E-mail
Thursday, 22 March 2007
OPSITEL The research division of OSIPTEL, Peru's telecom regulator, has released a new set of working documents. These documents (in Spanish) cover, from a theoretical perspective and reviewing the recent economic literature, several subjects related to fixed telephony investment projects, service access and pricing in the Peruvian economy, tariffs and their effect in the consumers, interconnection fee analysis and the role of regulation in innovation.

The working papers represent an interesting summary of the current economic literature in the field of  telecommunication services from a Peruvian perspective, that can also be useful in analyzing other markets of the Latin American and Caribbean region.

The working paper written by Kristian López, “Models of access in a context of uncertain income”, presents a theoretical frame to understand the relationship between low income or uncertain income and the fixed telephony service demand. The study shows how income uncertainty drives down household demands for services. This document is especially useful to understand the service demand of those living in poverty conditions, even in urban areas and it helps to explain the coverage gap seen in developing countries. The document also concludes that in certain households the demand for services does not grow due to income uncertainty. The working paper develops a model based on household income classification and service demand, showing the concrete consequences of income uncertainty in telephony service demand.

"Interconnection Charges among telecommunication networks, recent developments”, written by J.C. Carbajal Ponce, reviews the recent literature related with network interconnection and interconnection fees, from different perspectives. These views include the study of interconnection in a context of heterogeneous demand and with different termination prices in long distance services. The document also includes a comparison between two networks, focusing on interconnection charges when receiving calls originated from an external network.

The paper “Sales and service bundling in a top pricing scheme” by Miguel Angel Martínez Carrasco, studies the regulation of top price telephony services in Peru. This document analyzes, with a focus on Peru, bundling examples described in the present literature and how these bundling can benefit the consumers. The document presents also a model with three scenarios: a) with top prices, b) without top prices and c) with regulated and non regulated prices.

“Innovations and the role of regulations”, by Romina Alania, analyzes the regulated network industries, focusing on telecommunications, and the relevance of regulations in the innovation dynamics. 

Additional working documents (in Spanish) available from OSIPTEL's webpage:

  • “Consequences of investment decisions in Fixed Telephony Expansion Projects”, by Victor M. Torres;
  • “Top pricing, coverage and welfare”, by José Gallardo, Lennin Quiso and Miguel Martínez;
  • “Tariff instruments and their effects on the user´s welfare”, David Florián and Luis Orezzoli; and
  • “Decision modeling under uncertainty in Peru. Theoretical development”, by César Martinelli and Eugenio Miravete.