David N. Townsend & Associates
Communications Economics, Policy, Regulation
Communications Market and Economic Studies,
David N. Townsend & Associates conducts customized studies on specific research
topics across all aspects of Communications policy and economics. Research and analytical
studies can focus on national infratructure or policy, or industry-specific issues, and
can be designed for individual clients or under multi-client sponsorship. (Click here for representative project descriptions.)
In addition, we undertake detailed statistical modeling of telecommunications demand,
costs, networks, and markets, which forms the foundation of the analysis for many studies.
DNTA telecommunications Economic Models evaluate national or state economic infrastructure
and markets, market entry and competitive service opportunities, and consumer demand
trends, in relation to broad economic conditions.
The categories below summarize our main subjects of study and areas of expertise, and
identify examples of prior projects undertaken and
managed by David N. Townsend (both independently and through the consulting firm of
Economics and Technology, Inc.):
- Telecommunications market structure, development, impact studies
- Broad-based analysis of the underlying economic structure of national or state
telecommunications markets, including competitive potential, growth and expansion
opportunities, service maturity and evolution. Studies include fundamental cost and demand
characteristics of existing and emerging markets, service substitutability, and
macro-economic factors such as impacts of restructuring, changing demographics, income and
DNTA Economic Models employed in this type of study include macro-industry, as well as
sector and service specific cost and demand models.
- Costa Rica, Instituto Costarricense de Electricidad (ICE):
Study of Telecommunications Market Structure and Policy Options (1996)
- An analysis of the telecommunications industry market structure in Costa Rica, and
recommended options for restructuring and opening the industry.
- Iowa Utilities Board: Impact of the Iowa Communications Network on the Iowa
telecommunications industry. (1995)
- A study of the economic impact of the state-sponsored fiber optic educational network,
the ICN, upon the economic position of private telecommunications operators in the state.
- Demand analysis and forecasting studies, modeling
- Analysis of present and prospective demand for various communications services in
different markets, and under alternative economic assumptions. This type of study combines
primary research such as survey and empirical analysis, with cross-reference data from
prior experience or other markets. The studies can focus on a specific new service
introduction, or prospects for market growth and expansion across broad industry segments.
These studies also typically incorporate one or more Economic Models, which can include
estimates of income and price elasticity, impact of economic changes, and comparative
- Independent Study Report: "Communications and the Household Budget: Where will
the Markets Be?" (1995)
- A research study into consumer spending patterns and demand prospects for new
- Hungarian Telecommunications Company (HTC): Development of HTC Strategic Plan
- Contributed to the development of the HTC 5-year Strategic Plan. Conducted review of
national service demand studies and forecasts, as well as comparative elasticity
- Service and network cost studies, models
- Analytical studies and research into the cost structure of telecommunications networks,
operators, and specific services in various markets. Based upon empirical data and
comparative results, as well as review of alternative cost studies, these projects examine
such factors as: long-run incremental costs (LRIC) of individual services; economies of
scale and scope for integrated carriers; and market-wide network investment and operating
cost characteristics and forecasts.
Cost study projects are usually based upon existing or custom-designed DNTA Economic
Models, as well as review and interpretation of other industry cost models, such as the
various Benchmark Cost Models (BCM), and Bellcore cost models (e.g., SCIS).
- Canadian Cable Television Association (CCTA): Economic Model and Strategic
Analysis of the Evolution of the Canadian Cable TV Industry (1995)
- Developed an in-depth economic model of the market prospects for the Canadian cable TV
industry, including investment, operating cost, and demand forecasts over 10 years for a
wide range of service options, including telephony.
- Michigan Divestiture Research Fund: "Industry Structure and Competition
in Telecommunications Markets, An Empirical Analysis" (1988)
- Developed an industry structure computer model of the Michigan telecommunications
industry, and analyzed long-term competitive potential in various state markets.
- Comparative tariff, policy, and market analyses
- Research studies of comparative prices, regulatory policies, or market conditions across
national and international telecommunications markets. Primary research is based upon
direct contact with telecom operators and officials in different states or countries,
along with review of published data sources. Quantitative comparisons are rendered in
relevant terms, such as equivalent currencies and/or purchasing power parities.
Comparisons of policies and market conditions also reflect differing economic and
Comparative studies can also involve Economic Models, as for example the Tariff Comparison
model, which incorporate calculations of various service elements to render valid
- Independent Research Study Report:
"El Precio del Teléfono: A Comparison of Prices for Telephone Services in Latin
- Developed a tariff comparison model and database which compared telephone service
tariffs across Latin American countries, for basic local and long distance services.
- Eurodata Foundation: Consumer Telephone Services in the United States,
Multiclient Product and Pricing Study (1994)
- Conducted a research study on advanced consumer telephone services, prices and options,
in 6 different U.S. states for a group of European telecommunications operators, through
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