Marcellus S. Snow

Natural monopoly in INTELSAT: cost estimation and policy implications for the separate systems issue

Abstract Following a presentation of conceptual and historical preliminaries, an econometric procedure is described and carried out to estimate the extent of natural monopoly in INTELSAT. It is determined that INTELSAT exhibits the property of natural monopoly in a multi-product sense for each of sixty-five cases examined in two-year intervals from 1976 to 1984. Implications for policy toward competition with INTELSAT by private satellite systems are drawn. Finally, major considerations both for and against competition in a setting of natural monopoly are outlined, both for satellites and for space-based technologies more generally.

Regulation to deregulation: the telecommunications sector and industrialization : Evidence from the Pacific rim and basin

Evidence from the Pacific and elsewhere suggests that countries deregulate their telecommunications sectors as economic development proceeds. Theoretical considerations support this, since arguments for (against) deregulation are mostly applicable to industrialized (developing) countries. Several such arguments are surveyed. Actual instances of telecommunications deregulation in Pacific countries are also cited to confirm this hypothesis. The scarcity and simplicity of telecommunications in early development stages favour cooperative, regulated solutions; as technological progress makes services more abundant and varied, competitive, deregulated approaches become more attractive.

Evaluating Intelsat's performance and prospects : Conceptual paradigms and empirical investigations

This article summarizes recent research on the past performance and future prospects of Intelsat. In its early years discussion focused mainly on the dominant position within the organization of the USA. More recently Intelsats monopoly position has been challenged to a certain extent by direct competition, the potential of submarine fibre optic cables, the effects of domestic deregulation in member countries and others factors. The author examines five paradigms which have been proposed to account for Intelsats behaviour to date, and concludes by summarizing several recommendations for ensuring the organizations long-term financial and political viability.

Specification error: A generalized test

Abstract Savin and White [14] suggested a simultaneous test for two sources of specification error. In this paper we generalize their test to cover all four common sources of errors in specification: functional form, autocorrelated disturbances, heteroscedasticity, and missing variables. The Savin-White test, as well as the standard tests for only one source of error, are special cases of the test developed. The generalized test is applied to data in an illustrative example.