What’s the Hang Up? The Future of VoIP Regulation and Taxation in New Hampshire

Alice in Austria wishes to call her friend Bob in Boston, using a Boston area code to avoid charges for an international call. Using VoIP, Alice may initiate her call from any location in Austria where she may find Internet access. Once Alice connects to the Internet, she can transmit her call with the aid of a VoIP service provider, such as Skype. In order to hear and communicate with Bob, Alice can rely on a microphone and a headset that she can plug into her computer. Through VoIP, not only may Alice carry on a telephone conversation, but most service providers also allow her to record conversations and manage other information, such as voice mail. The rise of Voice over Internet Protocol (“VoIP”) services “means nothing less than the death of the traditional telephone business,” as the ability to make free calls over a high-speed Internet connection in the future “undermines the existing pricing model for telephony.” This disruptive, convergent technology is blurring the boundary between Internet services and telephone services because VoIP functions like the traditional telephone system, but travels as ones and zeros through a broadband Internet connection. As a result, the Federal Communications Commission (“FCC”) has questioned whether to classify VoIP as an information service, generally free from FCC regulation under the Telecommunications Act of 1996, or as a telecommunication service, subject to a comprehensive regulatory regime and common carrier obligations. This note discusses why most VoIP services, with the exception of phone-to-phone Internet Protocol (“IP”) telephony, should be classified as information services and, as such, should remain free from state taxation – focusing specifically on the taxation in New Hampshire. Part II focuses on the technology of VoIP and how it differs from traditional telephony. Part III discusses the distinction between information and telecommunication services in the Telecommunications Act of 1996, whether VoIP may qualify as Internet access in light of the Internet Tax Freedom Act (“ITFA”) of 1998, and the federal regulation of VoIP. Finally, Part IV addresses the debate over taxation of VoIP in New Hampshire and discusses why VoIP services should not yet be taxed by the New Hampshire Department of Revenue Administration in light of federal law and the best interests of local businesses and consumers

Econometric modelling of competition between train ticket types

INTRODUCTION The railways in Britain have a long history of using price discrimination backed up with product differentiation to significantly increase revenue over what might be obtained in an undifferentiated market. Whilst not as sophisticated as the yield management systems widely used in the airline industry, rail ticketing strategies are continually evolving, with new products emerging, unsuccessful products discontinued and gradual refinement of others. In recent years, there has been increased interest in modelling competition between different ticket types. The re-organisation of the railway industry in Great Britain has provided a greater commercial incentive to operators to price differentiate in order to maximise the revenue from their franchises. The policy of moderation of competition has allowed limited on-track competition, largely based around overlapping franchises but also with service extensions and new entrants, and this has stimulated product development and hence interest in ticket choice. Partly in response to the greater commercialisation of the railway industry, particularly where here is a degree of market power, the regulatory bodies have taken a greater interest in the range of tickets offered and their associated prices, travel restrictions and availability (SRA, 2003). This paper reports on research which was conducted as part of an update to the Passenger Demand Forecasting Handbook (PDFH), which contains a forecasting framework and recommended demand parameters that are widely used in the railway industry in Great Britain (ATOC, 2002), and as part of a project to provide the Strategic Rail Authority with evidence on cross elasticities between ticket types for use in its review of how it regulates rail fares

Tariff Rates, Offshoring and Productivity: Evidence from German and Austrian Firm-Level Data

This paper studies the impact of trade liberalization in terms of tarif cuts within the Eastern European enlargement on German and Austrian firm productivity. Unique matching of data from 1994 to 2003 suggests that tarif reductions raise parent firm productivity significantly. A ten percentage point decrease in tarif rates can lead to total factor productivity gains of up to 2 percent. The data allow distinction between three types of tarifs: output, intra-firm and input tarif rates. The size of the results strongly depends on the type of tarif and country analyzed

Policy Issues in U.S. Transportation Public-Private Partnerships: Lessons from Australia, Research Report 09-15

In this report, the authors examine Australia’s experience with transportation public-private partnerships (PPPs) and the lessons that experience holds for the use of PPPs in the United States. Australia now has decades of experience in PPP use in transportation, and has used the approach to deliver billions of dollars in project value. Although this report explores a range of issues, the authors focus on four policy issues that have been salient in the United States: (1) how the risks inherent in PPP contracts should be distributed across public and private sector partners; (2) when and how to use non-compete (or compensation) clauses in PPP contracts; (3) how concerns about monopoly power are best addressed; and (4) the role and importance of concession length. The study examines those and other questions by surveying the relevant literature on PPP international use. The authors also interviewed 23 Australian PPP experts from the academic, public and private sectors, and distilled lessons from those interviews

A Careful Examination of the Live Nation-Ticketmaster Merger

As great admirers of The Boss and as fans of live entertainment, we share in the popular dismay over rising ticket prices for live performances. But we have been asked as antitrust scholars to examine the proposed merger of Live Nation and Ticketmaster, and we do so with the objectivity and honesty called for by The Boss’s quotes above. The proposed merger has been the target of aggressive attacks from several industry commentators and popular figures, but the legal and policy question is whether the transaction is at odds with the nation’s antitrust laws. One primary source of concern to critics is that Ticketmaster and Live Nation are two leading providers of ticket distribution services, and these critics argue that the merged entity would have a combined market share that is presumptively anticompetitive. We observe, however, that this transaction is taking place within a rapidly changing industry. The spread of Internet technologies has transformed the entertainment industry, and along with it the ticket distribution business such that a reliance on market shares based on historical sales is misleading. A growing number of venues, aided by a competitive bidding process that creates moments of focused competition, can now acquire the requisite capabilities to distribute tickets to their own events and can thus easily forgo reliance upon providers of outsourced distribution services. If self-distribution is an available and attractive option for venues, as it appears to be, then it is unlikely that even a monopolist provider of fully outsourced ticketing services could exercise market power. Ultimately, a proper assessment of the horizontal effects of this merger would have to weigh heavily the emerging role of Internet technologies in this dynamic business and the industry-wide trend towards self-distribution. The second category of arguments by critics opposing the merger rests on claims that vertical aspects of the transaction would produce anticompetitive effects. Indeed, Ticketmaster’s and Live Nation’s core businesses are in successive markets, and thus the proposed transaction is primarily a vertical merger, but there is broad agreement among economists and antitrust authorities that vertical mergers rarely introduce competitive concerns and are usually driven by efficiency motivations. This wealth of academic scholarship, which is reflected in current antitrust law, has not - from our vantage point - been properly incorporated into the public dialogue concerning the proposed merger. To the contrary, critics articulate concerns, including the fears that the merger would lead to the leveraging of market power and the foreclosure of downstream competition, that are refuted by accepted scholarship. Moreover, there are a number of specific efficiencies that, consistent with economic and organizational theory, are likely to emerge from a Live Nation-Ticketmaster merger and would be unlikely but for the companies’ integration. For these reasons, we submit this analysis in an effort to inform the debate with current economic and legal scholarship

Experiences of Various Forms of Commercial Partnerships in Indian Railways

This paper brings out issues of governance between the Ministry of Railways and various service delivering commercial entities under the Ministry. Some of this is accentuated by both the ministerial and administrative powers vested in the same body, namely the Railway Board. We examine a set of eight case situations, wherein there has been an attempt to focus on a commercial approach. However, the extent of success/failure is varied. A study of these cases brings out the potential of improving railway infrastructure under a governance framework of (i) distancing the ministerial role from the commercial activity, (ii) increased private participation, (iii) improving transparency, contestability and competition, and (iv) appropriate regulations We describe salient features of each of the cases, with comments from the perspective of commercial viability. A concluding section brings out some of the key concepts which would be relevant for such commercial partnerships in the future. At a broader level, given the budgetary constraints, under exploited potential of the IRs assets and service possibilities, lack of commercially oriented professional and accountable management, such commercial partnerships have implicitly been accepted (by both the central government and the top management of IR) as the way forward.

A policy response to the e-commerce revolution: the case of betting taxation in the UK

Several environmental changes in the 1990s – including the introduction of a national lottery, the rise of Internet gambling, and the reduction of trade barriers within the EU – induced the UK government to initiate a large-scale review of betting duty. As a result of this review, the government recently announced a significant reduction in betting taxes. They also decided to replace the current general betting duty (GBD), levied as a proportion of betting stakes, with a gross profits tax (GPT), based on the net revenue of bookmakers. We examine the economic rationale behind these decisions and demonstrate how these tax changes have broad implications regarding optimal levels of taxation for other sources of government revenue

Mobile Value Added Services: A Business Growth Opportunity for Women Entrepreneurs

Examines the potential for mobile value-added services adoption by women entrepreneurs in Egypt, Nigeria, and Indonesia in expanding their micro businesses; challenges, such as access to digital channels; and the need for services tailored to women