Asymmetric Termination Charges to Support Small Networks

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Termination charges toward newer entrants are often set asymmetrically to exceed efficient costs for telephony traffic. Such practices are said to be beneficial to consumers as well as providing competition a “leg-up”. However claims of consumer benefit are dubious at best, while infant industry arguments are no more likely to apply to telecommunications than they apply anywhere else. Appropriate forms of termination regulation are then considered.