ENTS 631
|
Professor Joseph P. Bailey 3419 Van Munching Hall Robert H. Smith School of Business University of Maryland jbailey@rhsmith.umd.edu phone: 301-405-2174 office hours: 1 hour before class or by appointment |
Course Information
Course DescriptionThe telecommunications and related technology industries are extraordinarily dynamic. Rapid changes in technology and exponential market growth are the norm. Accordingly, there are also changes in industry structure, competitive dynamics, and public policy. Although historically the telecommunication industry were essentially closed to competition through government grants of monopoly franchises, competition is now replacing regulation. However, this does not remove government as an important player in telecommunications and technology industries. In fact, public policy is still an important factor in shaping telecommunications. This course will focus on some of the interesting and complex questions regarding telecommunications and technology policy.The course introduces the economic tools to understand markets and competition at the at the inter-firm and industry level. This includes an identification of markets and market failure which sometimes propels the intervention of the government. Furthermore, issues of antitrust and game theory are introduced. The course then builds on the economic tools by exploring issues of telecommunications and technology policy. This includes an examination of the politics of telecommunications, the liberalization and privatization of telecommunication companies, the introduction of the Internet and electronic commerce, the issues surrounding intellectual property, and global competition and alliances. The format of the course will include lectures, class discussion, and presentations by students. In addition, the course will bring in a number of guest speakers.
Required TextsThere are two required texts for the class along with some additional readings which will be distributed in class. Since the study of telecommunications and technology policy is so dynamic, students are required to keep up with current events by reading a publication of their choice.
Optional TextsThere are a number of optional readings which will be cited or linked to this class Web page. Whenever possible, the class will try to use the resources on the Web to reduce the amount of photocopying. Finally, there are additional texts that are used repeatedly throughout this class for optional readings. Some of these texts are on reserve in McKeldin Library as indicated below.
Course RequirementsThere are three elements to the course which determine the student's grade: final paper, final exam, and class participation. The final paper will address an alliance in the telecommunications and/or technology industries which has global implications and inherent public policy issues. Some suggestions include examination of World Partners, Concert, or SBC's proposed purchase of Ameritech (because of our guest and discussion on GlobalOne, a final paper about the GlobalOne alliance will not be permitted). The Final exam will be administered during the exam week in December and will be in short answer and essay format. The exam will cover all the entire scope of the class. Finally, class participation is an important component for a successful class. Regular attendance along with proper class preparation results in a much better class discussion and higher marks for the student.
Course FeedbackI welcome any feedback from students throughout the semester regarding course content and the presentation of material. Please feel free to send me email or use the following form to send me feedback anonymously. |
Course Schedule
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
September 2, 1999 |
Introduction: Markets and Market Failure[Bailey]DescriptionThis class will provide a basic overview of the course describing the scope and philosophy of the course as well as the course requirements. The idea of a market is then introduced along with the problems of a market failure. One possible mechanism of preventing market failure--the participation of the government in a market--is described. This provides a foundation for future discussion of business and public policy. Furthermore, this class will introduce students to the idea of the stock market and will introduce the concepts of valuation and market capitalization.
Readings
Links
|
| - | |
September 9, 1999 |
Market Structure, Horizontal and Vertical Integration[Bailey]DescriptionA brief introduction of the theory of the firm is used to describe how market relationships differ from intra-firm transactions. This includes the definition of a monopoly, oligopoly, and perfect competition for a market structure. The ability of a firm to vertically or horizontally integrate themselves to achieve economies of scope and scale is discussed as a competitive strategy.
Readings
Links
|
| - | |
September 16, 1999 |
Telecommunications Liberalization and Privatization[Bailey]DescriptionThe movement of the telecommunications industry from publicly owned or regulated companies to competitive firms is described within the process of liberalization and privatization. For example, we discuss the World Trade Organization agreement to introduce competition in the global telecommunications market. Much of this movement includes an investigation of emerging economies and the role of price regulation. Therefore, we will discuss how regulators may choose to set prices of regulated telecommunication companies (e.g. rate-of-return or price caps). In this class we will go into depth with the incentives for incumbents and entrants in the telecommunication markets.
Readings
Links |
| - | |
September 23, 1999 |
Antitrust and Monopolization[Bailey]DescriptionWe will discuss the Federal Trade Commission and the Department of Justice as well as other non-US governmental bodies which enforce laws to prevent non-competitive behavior by companies. The class will discuss the Microsoft, AT&T, and IBM cases of antitrust government activity.
Readings
Links |
| - | |
September 30, 1999 |
Game Theory[Group Presentations and Bailey]DescriptionThe use of game theory is introduced to describe why some market structures change the nature of the benefits to consumers.
Readings
Links |
| - | |
October 7, 1999 |
Telecommunication Politics[Mark Crosby and Sharpe Smith, Industrial Telecommunications Association, and Bailey]
|
| - | |
October 14, 1999 |
Designing Industrial Structure for Deregulation[Dr. Judy Cardell, Federal Energy Regulatory Commission, and Dr. Jahangir Boroumand, formerly with The World Bank]DescriptionThe line that is drawn between regulated and unregulated markets continues to change as technology advances and policy changes. This class will introduce the strategies policy makers use to design market structures so they do not have to regulate them. This includes a brief introduction of what regulation and the introduction of case examples where regulation may not be necessary.
Readings
Links
|
| - | |
October 21, 1999 |
Technology Policy and International Cooperation[Marjory Blumenthal, National Research Council, and Bailey]
|
| - | |
October 28, 1999 |
Electronic Commerce and Price Discrimination[Bailey]DescriptionWe will discuss the growing importance of electronic commerce for intra- and interorganizational transactions to support a growing global economy. We will discuss setting prices for consumer product on the Internet with examples coming from early Internet markets. The ability to set prices dynamically on the Internet brings us into a discussion on the economics and competitive strategy of price discrimination.
Readings
Links
|
| - | |
November 4, 1999 |
Intellectual Property and International Trade[Rick Dunn, DARPA, and Bailey]
|
| - | |
November 11, 1999 |
Global Competition and New Technology[Bailey]DescriptionWe discuss aspects of global competition including the global diffusion of new technologies. The international settlements process and how international rates for telecommunications services can vary widely because of settlements is presented. We also describe how incumbents may prevent entry into their market as a strategy position and how the entrant may respond.
Readings
Links
|
| - | |
November 18, 1999 |
Industrial and Technology Policy[Bailey]
|
| - | |
November 25, 1999 |
|
| - | |
December 2, 1999 |
Consolidation and Global Alliances[Stu Mathison, Broadreach Associates International]DescriptionThe class addresses the ability for international partnerships to be formed among telecommunication carriers and how the alliance structures affect service offerings. The extremes of alliances include outright ownership of partners such as the SBC purchase of PacBell and proposed purchase of Ameritech. Other relationships, such as the World Partners alliance, require no equity.
Readings
Links
|
| - | |
December 9, 1999 |
Government Funding and Technology Development[Dean Howard Frank]DescriptionThe creation of technology and industrial policy by governments is very diverse. In some industries in some countries, governments form outright partnerships with industry to develop telecommunications and technology services. In other cases, the government makes a concious decision not to get involved. In this class, we explore how, when, and why governments adopt industrial and technology policy.
Readings
Links
|
| - | |
December 15, 1999 |
Final Papers Due No Later Than 3pmOptional Review Session
|
| - | |
December 16, 1999 |
Final Exam |
| - | |