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Subscriber trends

During the first years of the cellular mobile telecommunications industry, growth in terms of subscribers was modest in most countries, with a tiny fraction of the population subscribing. As we have seen, the most advanced countries for mobile telecommunications were the Scandinavian countries and the USA. It was only during the 1990s that the market for mobile telecommunications really started to take off in other countries. Figure 2.4 shows the historical evolution of the penetration rate for mobile telecommunications for the EU, the USA and Japan. The time path is an interesting sequence of leapfrogging movements among the various geographical regions. The USA was leading in terms of penetration rate until the mid-1990s, i.e. during the whole period of analogue technology, it was then overtaken by Japan, which had a short spell of leadership. The penetration rate in the EU expanded very rapidly during the second half of the 1990s and had finally overtaken the USA by the end of the...

Mailing Lists

Mailing lists broadcast messages similar to UseNet newsgroups (in fact, many mailing lists are available for reading under bit.listserv newsgroup hierarchy) but they restrict posting to subscribers only. The significant difference between mailing lists and UseNet is that the subject of discussion is even further specialized and the messages are often archived for mailing lists. Also, unlike UseNet, which does not have a central administrator, mailing lists are run by managers of mail servers and by the owners of the list, who control all aspects of information exchange and subscription. Consequently, many mailing lists are run by commercial interests. The nature of focused and controlled broadcasting through a mailing list has made it a favored marketing tool for sellers, who can mass-distribute ads and other messages to subscribers (see fig. 7.6). It seems an ideal environment, where consumers voluntarily request product information and still retain control over the channel because...

Business strategies for firms

Regulators took some time to appreciate that cost allocation mechanisms could be profoundly different between fixed and mobile networks. While fixed network infrastructure used to be based on plant and equipment that from an accounting point of view had been depreciated, mobile network infrastructure was typically new and thus carried high depreciation charges in cost accounting. This, for instance, led to regulated interconnection prices that were favourable to mobile telecommunications firms. Cost allocation mechanisms are important when it comes to establishing other aspects of interfirm compensations and how these are transferred to the users. There are two principles calling party pays (CPP) and receiving party pays (RPP). Although from a theoretical point of view RPP seems to have better characteristics for ensuring allocative efficiency, CPP has been the overwhelming success in terms of worldwide diffusion. Only a few countries, in particular the USA, actually have RPP in...

Some technology history

6 The concept of trunking may be illustrated by the following example. If a channel in a system without trunking permits access to only two or three users per channel, with a likelihood of congestion not exceeding say 10 per cent, then the total capacity of a system with twenty channels is approximately fifty users. In a network with trunking, the number of users would increase to 420, with the same probability of blocking, because a subscriber could use any free channel. This advantage is called 'trunking efficiency'. Sweden The first mobile telephone system in Europe was launched in Sweden.9 Since this can be considered as the pioneering country for mobile telecommunications in Europe a more extensive description of the technological evolution of the different phases is warranted. Unlike most other countries, Swedish Telecom decided to develop a fully automated system immediately. The Mobile telephone system A (MTA) was completed in 1952-3 and commercially launched in 1956. MTA...

The Rise And Fall Of The Economic Influence Of The Fall

The public good here is the body of doctrine. If tensions within the body of doctrine are resolved satisfactorily by its guardians then this is a pure public good as, once it has the seal of approval, all subscribers to the belief receive the benefit cp. Smith (1999) . A good example of such revisionism is the decision of the Church of England, in 1562, to reject purgatory as being not only without foundation in the Bible but repugnant to the word of God, being a mere invention of Roman Catholicism. There will thus be no problems of congestion costs from crowding in the consumption of this product innovation. They will only be excluded if they exhibit dissent. Obviously, any arbitrary set of doctrines cannot attain public good status as it might conflict with the needs of the client base as examined in the last section when we looked at product differentiation and entry and exit. So a core, that appeals to a wide range of people, has to be found in the doctrine. It is possible to find...

Value Investing Shines in a Declining Market

In early 1987 the shares of Telefonos de Mexico, S.A., sold for prices as low as ten cents. The company was not doing badly, and analysts were forecasting for the shares annual earnings of fifteen cents and a book value of approximately seventy-five cents in 1988. Investors seemed to focus only on the continual dilution of the stock, stemming from quarterly 6.25 percent stock dividends and from the issuance of shares to new telephone subscribers, ostensibly to fund the required capital outlays to install their phones. The market ignored virtually every criterion of value, pricing the shares at extremely low multiples of earnings and cash flow while completely disregarding book value.

The demand for telecommunication services

The horizontal axis of Figure 5.3 is the potential customers' index number (or their names indexed by a real number between zero and one). Customers indexed on the right find the service less desirable whereas potential customers indexed on the left are in greater need for this service. The horizontal curve at the level of n is called customers' density function, which shows that there are n consumers of each type x. The ray from the origin with the slope n is subscribers' cumulative distribution function (c.d.f.) which shows for each type x how many customers are there with index types between zero and x. For example, as the figure demonstrates, there are n 2 customers (half of the total population) who are types indexed on 0,1 2 .

Fund Raising Campaigns

Achieved before a public good can be provided. For example, consider the target the minimum cost of construction for a public library. Subscribers to the campaign take it in turn to make either a contribution or a pledge to contribute. Only when the target is met does the process cease. The basic question is whether such a fund-raising campaign can be successful given the possibility of free-riding.

Institutions and market structure

Electronic communication networks (ECN) also work as open limit order books. These are forms of the Alternative Trading System (ATS) and describe trading systems that bring buyers and sellers together for the electronic execution of trades. They are registered under the Securities and Exchange Commission regulation which governs special purpose trading facilities that are not exchanges. The Commission has defined an ECN as any electronic system that widely disseminates orders entered into it by the subscribers to third parties, and permits such orders to be executed in whole or in part. Subscribers to ECNs can be retail investors, institutional investors, market-makers and other broker-dealers. The definition specifically excludes internal broker-dealer orderrouting systems and crossing systems. Examples of ECNs are INET, Archipelago, BRUT and ATTN.

The new economy as a new form of coordination

As Mengerian specialists, the Internet has to improve the information of the agents whose position could be assimilated to the 'persons who have only indirect command' on some kind of good. This 'specific class of people that has a special professional interest in compiling data about the quantity of goods' is now a network composed of complementary nodes and links. This network generates externalities as the higher the value of a subscription, the larger the number of subscribers. In the same order of ideas, the network growth is fed by positive feedback effects, stemming from the existence of complementarities and intrinsically linked with network organization. The value of any item is enhanced by the increased availability of complementary goods, supply positively acts on demand through feedback effects. In other words, the feedback effects result from the existence of scale economies on the demand side If real markets were of the Walrasian kind, there would be no room for...

Product differentiation strategies in mobile telecommunications

The main concept was that the subscriber paid in advance to receive a credit for a certain amount of traffic to be consumed within a certain time frame there was no monthly fee to be paid. Moreover, upon expiry of the credit the card could still be used to receive incoming calls for a certain time period. Though there were no rental charge to be paid, pre-paid subscribers tended to have a cost per minute of calling time. However, one of the main attractive features for the user of the pre-paid card was the full control over cost.9 For the card issuer, the advantage was the absence of credit risk because the telecommunications services had been paid for in advance. This permitted the attraction of a customer basis which would otherwise have been excluded because of poor creditworthiness.10 This was particularly important in countries with less developed capital markets, where almost all transactions were on a cash basis.11 The lessened credit risk, while...

How the value of a library is determined

The economics literature on information reproduction from journals, books, and music recordings include Novos and Waldman 1984, Johnson 1985, Liebowitz 1985, Besen 1986, and Besen and Kirby 1989, and more recently Varian 2000b. These papers model the market for legal subscribers and photocopying as the market for durable goods where photocopying is modeled as similar to a secondary market for used-durable goods. This literature shows that publishers may earn higher profits when photocopying of originals is allowed compared with the case where information is protected, and that, as a result, restrictions on photocopying may reduce total welfare. These results were obtained under the assumption that publishers can price discriminate between individual subscribers and libraries (or other types of dealers), thereby charging the libraries higher subscription rates that take into account the number of photocopies normally made from these journals. More precisely, the argument relies on the...

Legal Efforts to Protect Privacy

Limited to correcting errors and updating one's data, while information and direct marketing industries operate under a largely self-regulatory policy toward privacy, under which consumers can request that their names be removed from their database. Relying on self-regulation does not afford consumers any legal recourse to address what they regard as a blatant misuse of their information. Juno Online Services (http www.juno.com), a free e-mail service company, used to display their promise not to sell or distribute its subscribers' information, but its actual agreement reserved their right to do so. Upon confrontation by the New York attorney general's office, Juno's president affirmed its policy not to distribute personal information, saying We didn't anticipate doing it, didn't intend to do it and didn't do it. (Newsday, December 11, 1996, A51, as quoted in Edupage, a mailing list distributed by listproc educom.unc.edu).

Cable TV The effect of local monopolies

Cable TV became most popular in the early 1980s when extensive wiring of private houses took place in the United States and Europe. Unlike TV stations which broadcasted via the airwaves and earned their profit from advertising and public money, cable TV operators rely on direct fees imposed on subscribers for transmitting a bundle of TV stations to their homes.

Welfare analysis of charging regimes

In spite of all the advantages in terms of inducing economic efficiency, RPP is rarely used. Where it is, the main reasons are other than those of economic efficiency. For instance, RPP use in the US mobile telecommunications market is due to the fact mobile service subscribers do not have different codes from fixed line subscribers and thus the caller cannot see from the number whether she is dialling into a fixed or mobile system. As call charges to mobile systems are typically much higher than to fixed systems, it was considered as unfair to leave the caller uncertain whether she is calling a fixed or a mobile telephone number.

The Book in the Market Place

Wells, in a letter to Wyndham Lewis written shortly after the publication of the latter's great satire Childermass, remarked that the books that make a lasting impression, that move men's minds, are necessarily written not for the masses but the few, and how, in the future, he went on to say, will such books be written and published at all There will doubtless continue to be individual publishers who, within the limits imposed by the market, will publish books which are written neither to meet the requirements of the reviewers, those stalwart defenders of the orthodoxy of liberalism, nor the demands of the masses, but a publisher's freedom of action is far more limited now than it was in the days when Knopf could publish the American Mercury, or Faber and Faber T. S. Eliot's Criterion, which was one of the most distinguished and influential journals of its day, although it never had more than 800 subscribers. The foundations, if they would, could do something about this...

Mobile telecommunications pricing by type of service

An up-front fee is usually charged for connecting new subscribers to the network. The reason for this is to compensate for the costs the operator incurs to register a new subscriber and for the SIM card. In the early days of the industry, these charges used to be very high, but with increasing competition for new subscribers fees have declined significantly and are nowadays waived in several cases, or even negative (e.g. through promotional activities such as handset subsidies). mobile and calls to fixed telephones) identically. With further entry, mobile operators halted reductions in the prices of off-net mobile calls. As a result, off-net mobile call prices turned out to be relatively high compared with other domestic voice calls. This may be explained by the structure of the price of an off-net mobile call. The price paid by a subscriber is the value of the wholesale termination rate levied by the network being called, plus the value of the retention levied by the subscriber's own...

The Mobile Phone Revolution in Bangladesh

Bangladesh's Grameen Bank, already justly famous for its microfinance lending, has also opened the world's eyes to expanding the use of modern telecommunications technologies in the world's poorest places. Grameen Telecom went into the business of mobile phones in 1997, reaching half a million subscribers by 2003, roughly equal to the total number of landlines. It used that mainly urban base of operations to launch a village phones program, whereby a village woman borrows funds for a mobile phone that is then used throughout the village at a

Individual Corporate And Foundation Support

All of this costs a lot of money to carry out (mailing lists, direct mail solicitations, record keeping, paying for special events), but the motto is, You have to spend money to make money. In 1983 the Metropolitan Opera is reported to have employed a staff of fifty and spent 3.5 million on fund-raising. By so doing, they raised about 25 million from individuals, corporations, foundations, and government agencies.14 It is now taken for granted in the United States that fund-raising from the private sector is an important function within any nonprofit arts institution. Indeed, public agencies would probably be reluctant to make grants to a nonprofit organization that did not appear to be pulling its weight in private fund-raising.

Recent Antitrust Policy Initiatives

Americans are intimately familiar with networks such as credit card networks, telephone networks, and computer networks. The distinguishing feature of all such networks is that their value grows as customer use becomes more widespread. New telephone subscribers increase the potential number of people that one can call expanding use of the Internet increases the amount of information on the Web. Similarly, when more retail outlets, department stores, and restaurants adopt a given credit card, the value of that credit card grows for all its holders. The added value that new users add to network goods and services is called a network externality. Networks became a recent concern in antitrust policy because the Clinton Justice Department feared that if inferior networks got a decisive lead in installed base among consumers, switching costs might be sufficient to keep customers from switching to a superior standard. Switching costs might also constitute a barrier to entry in the industry...

The effect of advertisers on programming

What we now call cable television began in 1948 as a way of bringing broadcast TV signals to local markets where reception was blocked by uneven topography. The organizer of a network would build an antenna on high ground and then carry the signals along newly installed cables to the homes of subscribers.14 The industry grew slowly through the 1950s and 1960s. The importation of programming other than what could be received from broadcasters was in various ways impeded by FCC regulation, and this had the effect of limiting the attractiveness of cable to areas where broadcast reception was poor.

Case Study 181 ITV Digital terrestrial service

The licence to broadcast digital services using terrestrial transmitters was granted in 1997 to British Digital Broadcasting, a consortium of Carlton, Granada, ITV regional companies and BSkyB. BSkyB was forced to withdraw by the EU competition authorities because it operated the satellite digital system in the UK this had been started 8 years previously and already had 4 million subscribers when the new service was launched in November 1998. The service was launched as a pay TV venture. Subscribers bought a digital box to receive programmes and paid a monthly subscription, which depended upon the number of channels being rented these included sports and film channels from BSkyB. The business plan also envisaged breaking even with 2 million subscribers. The costs of the venture increased when BSkyB offered free set-top boxes, an offer matched by ON Digital. BskyB's first-mover advantage allowed it to build up a subscriber base of 4 million before ON Digital was launched. It also...

A2 The working principles of cellular telecommunications systems

Them and route calls, (3) a subscriber database, (4) a telecommunications network that connects the base stations and switches with the public telecommunications network and finally (5) a mobile subscriber terminal. These are described in more detail below. The base stations together form the radio system, or the air interface between the subscriber and the system. On top of carrying traffic, the radio system must continually monitor the position of the subscriber using signalling information so that the network can route the traffic to the base station within whose range the subscriber is located. One part of the task of the mobile switching centre (MSC) is similar to that of a fixed telecommunications exchange routing calls between subscribers. Indeed many ofthe switches used in cellular networks are derived from versions originally designed for fixed networks. However, the MSC has important additional tasks to perform. The most challenging is due to the fact that mobile...

Techniques of Interest Groups

All interest groups want to influence public opinion both to increase their memberships and to convince people of the importance of their causes. Many use direct-mail campaigns to recruit members. They target potential members by using subscriber or membership mailing lists from magazines or groups with a similar viewpoint.

2015 Managirail Economic

P10.10 Monopoly Monopsony Confrontation. Safecard Corporation offers a unique service. The company notifies credit card issuers after being informed that a subscriber's credit card has been lost or stolen. The Safecard service is sold to card issuers on a 1-year subscription basis. Relevant revenue and cost relations for the service are as follows

AOLTime Warner Is Playing Games with Stockholders

Just as impressive as AOL-Time Warner's commanding presence in the entertainment field is its potential for capitalizing on its recognized strengths during coming years. AOL-Time Warner is a leader in terms of embracing new entertainment-field technology. The company's state-of-the-art cable systems allow subscribers to rent movies, purchase a wide array of goods and services, and participate in game shows and consumer surveys all from the privacy of their own homes. Wide channel flexibility also gives the company the opportunity to expand pay-per-view TV offerings to meet demand from specialized market niches. In areas where cable systems have sufficient capacity, HBO subscribers are now offered a choice of programming on different channels. AOL-Time Warner also has specialized networks, like TVKO , to offer special events on a regular pay-per-view basis.

Viyi iooi P2O2 50 222

More recently, some publishers have begun to price discriminate by geography. During 1984, when the U.S. dollar was at an all-time high as compared to the English pound, many British publishers began to charge different prices to U.S. subscribers than to European subscribers. It would be expected that the U.S. demand would be more inelastic. Since the dollar price of British journals was rather low due to the exchange rate, a 10 percent increase in the U.S. price would result in a smaller percentage drop in demand than a similar increase in the British price. Thus, on grounds of profit maximization, it made sense for the British publishers to raise the prices of their journals to the group with the lower elasticity of demand the U.S. subscribers. According to a 1984 study, North American libraries were charged an average of 67 percent more for their journals than U.K. libraries, and 34 percent more than anyone else in the world.3

Empirical Studies Using the Stanford University World Bank Telecom Database

Wallsten (2001b) examines the effect of including EPs in 32 telecom privatization sales executed by 28 developing countries between 1987 and 1998. He examines the impact of EPs first on the sale price received by the government and then on the post-privatization investment levels of the telecom companies. Other things equal, he finds that granting an EP more than doubles the price a buyer will pay for a telco, and that extending the EP for additional years also significantly raises the sale price. The offsetting effect is that EPs are significantly negatively correlated with telecom investment after the sale. EPs also reduce the number of cellular phone subscribers, dampen the growth in the number of pay phones provided, and are negatively correlated with international phone traffic after the sale.

The Changing Mix of Goods and Services Offered by Telecom Providers

Mobile cellular subscribers of the mushrooming demand for telecommunications services is provided by the statistics measuring physical use. International telephone traffic almost quadrupled between 1991 and 2003 from 38 billion to 140 billion minutes while the number of personal computers in use rose more than fourfold, from 130 million to 650 million. Impressive as these compound annual growth rates (of around 11 percent) might be, however, the increased demand for cellular and Internet service was nothing short of exponential. The number of cellular phone subscribers worldwide rose from 16 million in 1991 to 1.33 billion in 2003, while the number of Internet users increased 150-fold over this time period, from 4.4 million to 650 million. Telecommunications has grown so rapidly, in fact, that Li and Xu (2002) report that telecom services alone now represent 2 to 3 percent of GDP in most countries.

A new and fastgrowing industry

A series of features makes the mobile telecommunications industry an interesting field of investigation for economists the industry is experiencing very fast market growth combined with rapid technological change regulatory design in setting market structure is playing a very important role and oligopolistic competition is unfolding under various forms. The number of subscribers to mobile networks is growing at a rapid rate on a worldwide basis, as shown in figure 1.1. During the 1990s the number of mobile subscribers worldwide increased by an annual rate of 50 per cent. An important year was 2002, when the number of world mobile subscribers for the first time exceeded the number of fixed lines. The number of mobile subscribers was close to 1.2 billion at the end of 2002, while the number of fixed lines was slightly below 1.1 billion. The year 2002 therefore established at worldwide level what had already been observed for an increasing number of countries during the previous few...

Twoway Communications and the

Increasingly, web browsers are becoming web publishers. As the number of web surfers grows, more and more of these net-travelers are putting up their own web pages to establish their points of presence. Subscribers to America Online, Inc. (http www.aol.com), can now make their own personal web pages on the access provider's web server. Today, web servers usually reside on expensive workstations because of their system requirements. But within a few

Figure 78Result of an X500 search Consumer Learning and Search

Newsgroups and mailing lists become online communities where like-minded consumers congregate and exchange information. Although messages may not For example, market surveys and focus groups are often conducted on samples that are at best incomplete. To estimate the demand for a new product, a random sample is drawn, and even when the sample universe is carefully chosen, the sample is far less desirable than a newsgroup composed of those consumers who buy similar products. These online groups can also be used to introduce new products. If there is a generally favorable review of a product, it is more than likely that others in the same group will favor that product. By providing advertising, sellers can also connect their marketing efforts with consumers' search and learning activities, which are the basis of online messaging. In this regard, a healthy growth in UseNet and mailing lists activities can be beneficial for consumers and sellers as well as researchers who constantly have...

Problems for Section 111

He pays whatever is necessary to compensate the firms for the book finding and storing services they provide. The firms are not pointless middlemen tacking on an arbitrary profit margin to each transaction. As we shall see later, competition would not allow such useless firms to survive. Mr. Murray-Smith would like to provide his own book binding service. But doing so in the specialized columns of The Clique would reduce the value of the magazine to its subscribers, professional bookmen. As usual in economics, the point is clearer if carried to an extreme. Why should not all the Mr. Murray-Smiths (all 100,000 of them) be invited to inspect the library of a recently deceased collector in Berkshire, eliminating middlemen such as lawyers, auctioneers, book dealers, bookstores Why in the case of books by authors still writing should he and his companions not each get a book in handwritten form directly from the author in Kent, eliminating middlemen such...

Unicast Broadcast and Multicast

The Internet network architecture is somewhat similar to the telephone network, but the Internet can support one-to-many (broadcast) distribution in addition to one-to-one (unicast) communication (the telephone system model). Unicasting is what was previously described relaying messages from a sender to a receiver. As figure 3.4 shows, Alice can send a message to anyone who has a unique IP address. She can also broadcast the same message by sending it to multiple recipients. An automated system of broadcasting is a mailing list server that duplicates an incoming message and sends it out to all subscribers, who can then also respond to the message by broadcasting a reply. In this sense, the Internet is also used for many-to-many broadcasting. When broadcasting, however, Alice's message occupies a lot of the Internet's bandwidth between her and all her correspondents. When the traffic consists of heavy-duty multimedia files, the existing infrastructure suffers greatly from this...

What Are Digital Products

We can, however, take this process one step further. Anything that one can send and receive over the Internet has the potential to be a digital product. Just think of all the things you can send in an email message letters and postcards, news, instructions, credit card information, product inquiries, and so on. Paper-based products of all kinds can become digital products by scanning or by changing, conceptually, the way we use those products. For example, airline, concert or baseball tickets need not be printed on paper. Instead, a ticket or the authorization for entry can be assigned, transferred, and stored digitally in a person's ID card. To make a reservation, one can log on to a web site, and make payments digitally. The ticket is then downloaded into the customer's storing device, which is scanned when boarding an airplane or entering a sports venue.

Market Based Solution to Protect Personal Information

Similarly to CyberGold, Millennium Interactive Technologies Corp. (http www.mitnet.com) proposes to forward e-mail advertising to its subscribers who get credits. Firefly (http www.ffly.com) offers various Internet services such as newsgroups, discussion groups, and chat rooms where like customers exchange product reviews and word-of-mouth information. Firefly in turn offers a specialized interaction group as a niche market to advertisers.

Changing Time Dependence

Sharing through unauthorized reproduction is a considerable deterrent to selling contents online. Thus, it is not surprising that companies who sell time-dependent information, such as news, are at the forefront of electronic commerce while copyright concerns discourage other digital product sellers. Even when products are naturally time-independent, sellers can further increase their time-dependence by putting out new, updated versions of the product. Some information services guarantee timely updates only to paid subscribers, offering outdated information freely. Besides changing the timeliness of the contents, sellers may also implement congestion-sensitive prices to reduce congestion at the local server level, and differentiate customers according to their preference for timely access. Internet-wide congestion, however, poses some problem since product sellers may not have control over delivery. Unless a seller owns their own network, product price and delivery price will have to...

Abandoning Whig History and the Search for General Positions

Legitimacy of general positions, Whig history, and notions of progress in the history of economics remain topics of debate (see Henderson, 1996 see also the discussion on history of economics readers in the August 2001 and September 2001 archives of the HES email list), some historians of economics have abandoned the attempt to assess the past in terms of the present, and opted instead for what has been called historical reconstruction (Rorty, 1984). Choosing to make the past their present, these historians of economics focus on reconstructing the meaning of texts at specific moments in time in the past (for a contribution that helped to turn historians' attention in this direction, see Weintraub, 1991).

Figures

3.14 Evolution of number of subscribers for analogue mobile telecommunications, France, 1985-1993 114 3.17 Mobile phone subscribers, Central and Eastern Europe, 3.19 Mobile telecommunications subscribers, by technologies, 3.21 Evolution of mobile telecommunications subscribers, Japan, 1982-2001 137

Figure

In 1996, America Online, Inc. (AOL), the leader in the burgeoning Internet service provider (ISP) industry, succumbed to pressure from competitors and cut its price for unlimited access to the Internet to 19.95 per month. Usage skyrocketed. Because flat-rate pricing does not penalize unlimited usage, many subscribers simply decided to leave their connection running all day and night. Because of surging popularity among novice users, long-time subscribers found themselves locked out of the AOL system. Dedicated users became especially irate when AOL kept running TV commercials and offering promotional rates to new subscribers when it was clearly unable to handle the traffic such promotions generated. Subscriber frustration turned to litigation, and AOL was hit with lawsuits charging the company with negligence and consumer fraud. Overloaded, facing lawsuits and the potential of massive defections from dissatisfied customers, AOL made a radical decision. AOL slashed marketing efforts...

Paul Davidson

We quickly discovered however, that the resources that I could muster at Rutgers University would not be sufficient to produce a journal that had a high-quality publishing appearance. I suggested that perhaps we merely mimeograph each issue of the JPKE and mail it off to subscribers that way. But Sidney would have none of this. He decided that we should make a list of people who we would offer to make members of the Board of Editors of the JPKE. Then we would write to these people indicating why we thought

Trends in cost

The main operational costs items for mobile telecommunications are network interconnection costs, maintenance costs, personnel costs and commercial costs. One can distinguish two types of operational costs costs that the firm can largely control, and costs determined by regulatory authorities and through bargaining. With respect the first type, mobile telecommunications firms are relatively well placed compared to fixed line firms. Increasing automation and centralisation of network management and customer care functions (e.g. automatic call distribution, interactive voice response systems) allow firms to become more efficient and reduce the associated operating costs. Mobile telecommunications firms have turned out to be much more efficient than fixed line operators with this respect. A rough measure of labour productivity in the sector is the number of subscriber lines per employee this was 310 for mobile telecommunications and 205 for fixed line telecommunications (average for OECD...

Cdma Tdma Gsm 1900

System in terms of providing subscriber capacity, but it was not entirely ready from a technological development point of view. TDMA had the advantage of backward compatibility with the already established D-AMPS networks, but as a technological choice it was considered as inferior with high terminal equipment prices.

Private Surveys

There are numerous private, nongovernmental surveys published in the EMU. Probably the most highly regarded are the purchasing managers' surveys. The surveys are available for both manufacturing and services industries and are prepared by NTC Research in the United Kingdom. They are published on the first and third business days of each month, respectively. Historical data are available on a subscriber basis only. Given the lag before government data are available, these are widely followed in the financial markets as an early harbinger of things to come.

Tontine G2

A scheme, invented by Lorenzo Tonti, a Neapolitan banker, in 1653, consisting of several subscribers advancing the same amount to a borrower who pays the same amount of interest in total to all the subscribers until the survivor receives all the interest on the amount advanced. Thus if there are 100 subscribers receiving 50 each in interest, when there are only 50 left each subscriber will obtain 100 each and the survivor will receive 5,000 per annum. This popular method of raising funds in the eighteenth and nineteenth centuries was last used by the British government to raise a loan in 1789. one of the most amusing accounts of a tontine is given in Robert Louis Stevenson's short novel.

Discussions

Training was also integrated into the procedures. Written instructions are posted on a special website created for the HP experimental economics program at a minimum three days before an experiment. All subjects are recruited either through an email list or notices posted on electronic bulletin boards. Subjects who are invited to participate are required to pass a web-based quiz, usually consists of multiple choice questions, before they are allowed to take part in experiments. It is particularly important in business experiments to recruit subjects that understand the mechanics of the games.

Use Net

One way of achieving this goal is to make a newsgroup moderated by someone who approves all posted messages before forwarding them to newsgroups. To minimize a moderator's work load, intelligence agents may be used to screen messages, which is called bot moderation. Bot moderation is another application for information filtering technologies and is discussed in more detail in section 7.6. Another way to maintain control over messages is to use mailing lists.

Search this book

Figure 7.6Apple Computer Software Update mailing list. If a UseNet newsgroup is not carried by a local news server, users who have access to that news server cannot read messages posted on that newsgroup. In contrast, users can subscribe to any mailing list as long as they have e-mail accounts. However, the mailing list itself may be restricted unless it is open to subscription by all Internet users. For example, Historical Fiction Writers Group mailing list is open to all subscriptions (see fig. 7.7), meaning anyone can subscribe. But because it allows the owners to remove any subscriber, its membership can be controlled. Mailing list owners can also hide their lists from any data query, and if a list only appears on its local list server outsiders have difficulty in discovering the list and sending unwanted messages. But choosing this option makes it difficult to compile a complete database of mailing lists.

Online Learning

Consumers form groups on the net to congregate with like-minded people and exchange opinions. UseNet newsgroups divide consumers by interest into hierarchical groupings. Thus, those who are interested in computers frequent groups in the comp hierarchy while art-inclined persons participate in rec.arts groups. Further divisions of interest result in rec.arts.books for book lovers and rec.arts.books.hist-fiction for those who favor historical novels. Along with numerous mailing lists organized to address specific interests, these online communities provide sellers a window for watching consumers learn from each other. The power of word-of-mouth marketing has induced many sellers to monitor messages and, if requested, provide relevant information as dutiful members of the interest group. There is no indication that today's sellers actively analyze messages posted in these online communities. Even product-specific mailing lists managed by sellers disseminate information but do not allow...

Information Trading

In choosing which method to use, a seller of information must consider the effects of externality the more people know about the information, the more diminished its value. Admati and Pfleiderer (1986, 1990) distinguish between direct and indirect methods of selling financial information under externality. Direct sale refers to the unconditional selling of information to buyers. For example, subscribers to newsletters purchase unrestricted use of the information for any investment purpose. An indirect sale of financial information refers to a case in which a stock dealer presents buyers with a choice of stocks to buy. Buyers do not observe the information, but only the stocks chosen on the basis of the information. In the case of direct sale, buyers use the information to maximize their gains from trading the information is revealed in the market price or price movement. Admati and Pfleiderer (1986) show that a direct seller of information can increase profits or restrict the use of...

Pumping Out Your First Email List

Pumping Out Your First Email List

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