Divestiture of AT&T, shifting the operation of both British Telecom (BT) and Nippon Telegraph and Telephone (NTT) to private sector brought free competition principle in telecommunication market. The surroundings of telecommunication market are drastically changing. There are very difficult questions about why such a serious changing is occurring and what kind of impacts it brings. One of the causes of this change is the development of electronics, which began rapidly to grow after the invention of the transistor, and the advance of information processing and telecommunication technologies accompanying the development of electronics. The dispersion and agglomeration of the metropolitan areas are influenced by those innovations.
We focus our attention on the structure of telecommunication demand to predict such an influence of the telecommunication on the society.
One of the reasons to introduce the Japanese telecommunication market the free competition principle is to make the telecommunication supply more flexible. Through the flexible supply, various kinds of demand should be met. The main services supplied by NCCs (New Common Carriers), which is just beginning their businesses however, is not a really new service, but a traditional telephone service, so called old medics. Namely, this means that the telecommunication using telephone is succeedingly main media. We examine the demand for telecommunication services, especially the international telephone one originated in Japan by the econometric analysis, in order to investigate the structural change of telecommunication market through technical innovations.
Since the telephone services are voice communication between humanities, the demand structure is said to be hardly changed in the advanced information society. However, we have a doubt on the idea mentioned above, because of the following reasons.
1. Increasing data-communication, which does not use data-network, such as facsimile transmission and personal computer communication using acoustic coupler.
2. Changing of the price system due to the free competioion.
3. Change of the price and income elasticities accompanying the change of the role of information.
4. Substituting and complementing the new services for telephone service.
We intend to prove these hypotheses. Furthermore by the proved results, we intend to estimate the impact of the telecommunications and its technologies on the socio-economical system.
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