Advertisement

Review of Industrial Organization

, Volume 8, Issue 4, pp 465–472 | Cite as

Telephone company ownership of rural cable television companies

  • Stanford L. Levin
  • John B. Meisel
Article

Abstract

In rural communities, cable companies owned by telephone companies supply basic service at a lower price than comparable cable companies not owned by telephone companies. The lower price (approximately $1.20 per month) appears to be due to lower costs and economies of scope rather than to any anti-competitive actions or cross subsidies. In addition, the monthly price of basic service is positively related to the total number of channels contained in basic service and, in particular, to the number of major channels contained in the basic package. The evidence also suggests that customers purchase basic service to gain access to pay channels.

Key words

Cable television telephone companies economies of scope 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Crandall, Robert (1990) ‘Regulation, Competition, and Cable Performance’, prepared for Tele-Communications, Inc.Google Scholar
  2. Dertouzos, James N. and Steven S. Wildman (1990) ‘Competitive Effects of Broadcast Signals on Cable’, prepared for The National Cable Television Association.Google Scholar
  3. Factbook, The Networks for the Nineties, Cable 1990, Part I, Washington, DC: Warren Publishing, Inc., 1990Google Scholar
  4. Hazlett, Thomas W. (1986) ‘Competition v. Franchise Monopoly in Cable Television’,Contemporary Policy Issues,80, pp. 80–97.Google Scholar
  5. Huber, Peter W. (1987)The Geodesic Network. Washington, DC: U. S. Department of Justice.Google Scholar
  6. Levin, Stanford L., and John B. Meisel (1991) ‘Cable Television and Competition’,Telecommunications Policy, December, pp. 519–528.Google Scholar
  7. ‘Opastco President Urges FCC to Raise Rural Exemption to Telco/Cable TV Cross-Ownership’,Telecommunications Reports, April 15, 1991, p. 39.Google Scholar
  8. U. S. Department of Commerce and Bureau of the Census (1988)A Statistical Abstract Supplement, County and City Data Book. Table B, pp. 16–600.Google Scholar

Copyright information

© Kluwer Academic Publishers 1993

Authors and Affiliations

  • Stanford L. Levin
    • 1
  • John B. Meisel
    • 1
  1. 1.Department of EconomicsSouthern Illinois University at EdwardsvilleEdwardsvilleUSA

Personalised recommendations