Friday, November 15, 2019

Is The Canadian Cable Television Industry a Natural Monopoly :: essays research papers

Chapter  Ã‚  Ã‚  Ã‚  Ã‚  Outline Preface  Ã‚  Ã‚  Ã‚  Ã‚   Chapter  Ã‚  Ã‚  Ã‚  Ã‚  Title  Ã‚  Ã‚  Ã‚  Ã‚  Page Preface  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Outline  Ã‚  Ã‚  Ã‚  Ã‚  1 I  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Introduction  Ã‚  Ã‚  Ã‚  Ã‚  2   Ã‚  Ã‚  Ã‚  Ã‚  A  Ã‚  Ã‚  Ã‚  Ã‚  The Canadian Cable Television Industry  Ã‚  Ã‚  Ã‚  Ã‚  2 II  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Details  Ã‚  Ã‚  Ã‚  Ã‚  3   Ã‚  Ã‚  Ã‚  Ã‚  A  Ã‚  Ã‚  Ã‚  Ã‚  Model  Ã‚  Ã‚  Ã‚  Ã‚  3   Ã‚  Ã‚  Ã‚  Ã‚  B  Ã‚  Ã‚  Ã‚  Ã‚  Data  Ã‚  Ã‚  Ã‚  Ã‚  4 III  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Externality Effect  Ã‚  Ã‚  Ã‚  Ã‚  10 III  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Comparison with Telephone Industry  Ã‚  Ã‚  Ã‚  Ã‚  12 IV  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  References  Ã‚  Ã‚  Ã‚  Ã‚  14 Table  Ã‚  Ã‚  Ã‚  Ã‚  Title  Ã‚  Ã‚  Ã‚  Ã‚  Page 1.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  2003 Market Share of Canadian Cable Companies.  Ã‚  Ã‚  Ã‚  Ã‚  2 2.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Canadian Cable Industry  Ã‚  Ã‚  Ã‚  Ã‚  5 2.2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Rogers Communications Incorporation  Ã‚  Ã‚  Ã‚  Ã‚  7 2.3  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Shaw Communications Incorporation  Ã‚  Ã‚  Ã‚  Ã‚  8 2.4  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cogeco Cable Company  Ã‚  Ã‚  Ã‚  Ã‚  9 3.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Marginal Private Benefit  Ã‚  Ã‚  Ã‚  Ã‚  11 3.2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Marginal Private Cost  Ã‚  Ã‚  Ã‚  Ã‚  11 3.3  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Demand Schedule of the market  Ã‚  Ã‚  Ã‚  Ã‚  12 Figure  Ã‚  Ã‚  Ã‚  Ã‚  Title  Ã‚  Ã‚  Ã‚  Ã‚  Page 1.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  2003 Market Share of Canadian Cable Companies.  Ã‚  Ã‚  Ã‚  Ã‚  2 2.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Conventional Depiction of Natural Monopoly  Ã‚  Ã‚  Ã‚  Ã‚  4 2.2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Measurement of Possibility of Natural Monopoly  Ã‚  Ã‚  Ã‚  Ã‚  5 2.3  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Canadian Cable Television Indusry  Ã‚  Ã‚  Ã‚  Ã‚  6 2.4  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Rogers Communications Incorporations  Ã‚  Ã‚  Ã‚  Ã‚  7 2.5  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Shaw Communications Incorporation  Ã‚  Ã‚  Ã‚  Ã‚  8 2.6  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cogeco Cable Company  Ã‚  Ã‚  Ã‚  Ã‚  10 3.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Externality Effect of Regulation of Cable Industry  Ã‚  Ã‚  Ã‚  Ã‚  12 Chapter  Ã‚  Ã‚  Ã‚  Ã‚  Introduction 1  Ã‚  Ã‚  Ã‚  Ã‚   A. THE CANADIAN CABLE TELEVISION INDUSTRY It all started back in 1981 when Vidà ©otron Ltà ©e and La Presse introduce the first electronic newspaper via cable in Montreal. One year later, The Canadian Radio-television Commission licensed Canada's first pay services and 58% of home televisions were connected to the cable television. The majority of industry members have formed an association the CCTA – Canadian Cable Televisions Association, to have a unified word when facing regulators, help promote the industry’s services. Table 1.1 and figure 1.1 show that CCTA have through its members a control over more than 70% of the Canadian cable services. Table 1.1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Market Control (2003) ROGERS   Ã‚  Ã‚  Ã‚  Ã‚  30.30% SHAW   Ã‚  Ã‚  Ã‚  Ã‚  27.20% COGECO   Ã‚  Ã‚  Ã‚  Ã‚  11.20% EASTLINK   Ã‚  Ã‚  Ã‚  Ã‚  3.20% ACCESS   Ã‚  Ã‚  Ã‚  Ã‚  1.00% MONARCH   Ã‚  Ã‚  Ã‚  Ã‚  0.80% OTHER*   Ã‚  Ã‚  Ã‚  Ã‚  26.40% TOTAL   Ã‚  Ã‚  Ã‚  Ã‚  100% *less than 50,000 customers each Figure 1.1  Ã‚  Ã‚  Ã‚  Ã‚  2003 Market share of Canadian Cable Companies Since its inception, cable television service has been subject of substantial intervention on the part of regulators in Canada. The Cable television operators are licensed by a single federal regulatory authority, the CRTC. It classifies Licensed Service Areas (LSA) based partly on the current subscription level within the LSA and partly on the quality of broadcast reception available to the service provider. The issues to be addressed in this paper are the following:   Ã‚  Ã‚  Ã‚  Ã‚  Was the enforced monopoly provision of basic cable television justified? Chapter  Ã‚  Ã‚  Ã‚  Ã‚  Details 2  Ã‚  Ã‚  Ã‚  Ã‚   A. MODEL When a monopoly occurs because it is more efficient for one firm to serve an entire market than for two or more firms to do so, because of the sort of economies of scales available in that market. A common example is water distribution, in which the main cost is laying a network of pipes to deliver water. One firm can do the job at a lower average cost per customer than two firms with competing networks of pipes. Monopolies can arise unnaturally by a firm acquiring sole ownership of a resource that is essential to the production of a good or service, or by a government granting a firm the legal right to be the sole producer. Other unnatural monopolies occur when a firm is much more efficient than its rivals for reasons other than economies of scale.

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