Demand Modeling at Bell Canada: A Retrospective
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Bell Canada has a long and illustrious history of econometric modeling of the demand for telecommunications services. Price elasticity modeling began at Bell Canada in the late 1970’s in response to regulatory questions about the demand and revenue impacts of changes in rates for long distance services. At that time, Bell Canada, the incumbent carrier in the provinces of Ontario and Quebec, was under federal rate-of-return regulation from the Canadian Radio-Television and Telecommunications Commission (CRTC). Relatively simple Ordinary Least Squares (OLS) models based on aggregate data evolved over the years into complex point-to-point models, cross-sectional models using customer level data and discrete choice models of demand for access to the network. Unfortunately, demand modeling was discontinued entirely by the company in 1996 as part of a cost cutting program as a result of competition.
KeywordsOrdinary Little Square Price Elasticity Generalize Extreme Value Demand Modeling Ordinary Little Square Model
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