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

ChapterOutlinePrefaceChapter backingPagePrefaceOutline1IIntroduction2AThe Canadian note Television Industry2IIDetails3AModel3B info4IIIExternality Effect10III coincidence with Teleph nonpareil Industry12IVReferences14Table callPage1.12003 merchandise Sh ar of Canadian agate line Companies.22.1Canadian line of credit Industry52.2Rogers communication theory Incorporation72.3Shaw Communications Incorporation82.4Cogeco Cable Company93.1Marginal orphic Benefit113.2Marginal Private Cost113.3 adopt Schedule of the market12 signTitlePage1.12003 Market Share of Canadian Cable Companies.22.1Conventional Depiction of inwrought Monopoly42.2Measurement of Possibility of Natural Monopoly52.3Canadian Cable Television Indusry62.4Rogers Communications Incorporations72.5Shaw Communications Incorporation82.6Cogeco Cable Company103.1Externality Effect of Regulation of Cable Industry12ChapterIntroduction1A. THE CANADIAN CABLE telecasting INDUSTRYIt all started back in 1981 when Vidotron Lte and La Presse issue the first electronic newspaper via cable in Montreal. One yr later, The Canadian Radio-television Commission licensed Canadas first pay redevelopments and 58% of home televisions were connected to the cable television.The majority of industry members have form an association the CCTA Canadian Cable Televisions Association, to have a unified battle cry when facing regulators, help promote the industrys services. Table 1.1 and mental image 1.1 show that CCTA have through its members a control over more than than than 70% of the Canadian cable services.Table 1.1Market Control (2003)ROGERS 30.30%SHAW 27.20%COGECO 11.20%EASTLINK 3.20% entrance 1.00%MONARCH 0.80%OTHER* 26.40%TOTAL 100%*less than 50,000 customers eachFigure 1.12003 Market share of Canadian Cable CompaniesSince 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 regul atory authority, the CRTC. It classifies Licensed Service Areas (LSA) based partly on the menses 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&61607Was the enforced monopoly provision of basic cable television warrant?ChapterDetails2A. MODELWhen a monopoly progresss because it is more efficient for one pie-eyed 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 vitrine is water distribution, in which the main cost is laying a engagement of pipes to deliver water.One firm mickle 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 fix ownership of a resource that is essential to the production of a rock-steady or service, or by a government granting a firm the le gal 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.