Measuring efficiencies and returns to scale of Nippon Telegraph & Telephone in production and cost analyses

Article Abstract:

A theoretical Data Envelopment Analysis framework that systematically integrates eight efficiency concepts, Scale Economies and Returns to Scale is examined. The efficiency concepts include Overall Efficiency, Overall and Scale Efficiency, Cost-Scale Efficiency, Technical Efficiency, Technical and Scale Efficiency, Production-Scale Efficiency, Allocative Efficiency, and Allocative and Scale Efficiency. The framework undertakes integration from the perspective of production and cost analyses. As an application, the eight efficiency measures and Degree of Scale Economies/Returns To Scale of the 39 annual operations of Nippon Telegraph and Telephone (NTT) are investigated. The most important observation is that NTT has maintained increasing RTS and high DSE in its 39 annual operations for the period 1953-1992.

Management, Data envelopment analysis, Economies of scale, Cost control

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A game theoretic approach to problems in telecommunication

Article Abstract:

Two problems in telecommunication, the Terrestrial Flight Telephone System and the rerouting of international telephone calls, are considered using a game theoretic approach. The two situations are modelled as coalitional games. A typical coalition game involves a player set and a characteristic function that designates to each coalition of players a real function that is to be read as the maximal profits or cost savings that the members in this colaition can achieve if they cooperate. It is demonstrated that a special class of coalitional games is generated through the situations considered and that the structure of the situations has theoretical implications. These include the coincidence of different game theoretic game concepts.

Usage, Telecommunications, Game theory, Telecommunication

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Divestiture of Nippon Telegraph and Telephone

Article Abstract:

The Japanese government's planned divestiture of Nippon Telegraph & Telephone (NT&T) in 1995 is examined. The break up of the giant telecommunications company has been a contentious industrial policy issue since 1985 when NT&T was privatized. The government's decision to divest the common carrier could have an impact on the country's telecommunications infrastructure, as well as on telecommunications and information industries all over the world. The results of the empirical study show that the company has been able to maintain cost subadditivity, but has not been a natural monopoly from 1953 through 1992. Findings also indicate that a divestiture will not generate any significant economic benefit for the Japanese consumers.

Case studies, Japan, Mergers, acquisitions and divestments, Monopolies, Corporate divestiture, Divestiture

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