Associate Professor

Syracuse University  
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Publications

If you would like a copy of any of these papers feel free to contact me at mgarciam@syr.edu

Refereed journals

García-Murillo, M. and McKnight, L., “The Effects of Internet Telephony on the Universal Service Program in the U.S. ,” Review of Network Economics Vol. 3 No.3 2005.

Abstract:

Internet phone services have grown from technical novelty to a competitive threat for traditional circuit-switched telecommunications. Using available telecommunication deployment statistics in the United States and modeling software, this paper presents two scenarios that investigate the potential impact of Internet telephony on universal service programs. They test whether the introduction of this technology and the way it could potentially be regulated would sufficiently reduce contributing carriers' revenues to threaten the viability of the Universal Service Program. We conclude that the regulatory policies developed in the past century to support universal service have been obsolesced by the innovation and creative destruction of Internet telephony.

 

García-Murillo, M., “International Broadband Deployment: The Impact of Unbundling” Communications and Strategies, Vol. 54. No. 1 March 2005.

Abstract:

T his paper shows that unbundling an incumbent’s infrastructure may
only result in a substantial improvement in broadband deployment for
middle-income countries but not for high income available statistics from
approximately 100 countries, we find that GDP per capita, population,
competition, and unbundling are all factors that can lead a carrier to provide
broadband services in a country. The logit models show that unbundling has
a significant positive impact on the availability of broadband services. The
OLS analysis indicates that GDP per capita, population size, price,
competition, the percentage of dial-up Internet users, and hosts all have
positive effects on the number of subscribers. An implication of these results
is that if a policy is to be implemented to promote broadband it should either
foster competition, through unbundling, and/or reduced prices. Efforts to
develop local content can also improve broadband adoption.

 

Garcia-Murillo, M. “Regulatory Responses to Convergence: Experiences from Four Countries,” INFO , Vol. 7, Issue1, January 2005.

Abstract:

This paper uses the theory of transaction costs as an analytical framework to analyze the regulatory convergence efforts of United Kingdom, India, Malaysia, and South Africa
countries. The purpose of the paper is to identify the factors that have moved some regulators around the world to restructure their regulatory agencies towards an integrated information and communication technology (ICT) regulator. The paper also presents the process and the challenges that five countries have experienced in their transition towards a unified agency. The cases show that these countries moved towards a converged regulator and laws to eliminate obsolete rules that were hampering investment and slowing competition in the ICT sector. The governments also wanted to eliminate some redundancies and simplify the rules used in regulating ICTs. For some countries the ICT regulator maintains traditional industry distinctions but others moved towards an issues organizing framework. The challenges included training, consultations with affected parties, changes in the law, and coping with rules that were still valid.

 

García-Murillo, M., “Efectos de las Diferencias Entre Principales y Agentes en la Armonización de las Leyes de Telecomunicaciones en Centroamérica,” Revista de Ciencias Sociales, No. 105 2005.

Abstract:

Los gobiernos Centroamericanos han tratado de crear una mayor integración de sus economías. En telecomunicaciones el objetivo es el de facilitar la inversión a través de una mayor armonización de sus leyes. Usando como marco teórico el problema del agente y el principal se hace un análisis de la legislación para determinar el nivel de independencia y autonomía que se le otorgaron a los reguladores de la región. Se encuentra que las diferencias, en cuanto a las funciones, están relacionadas a la concepción que tiene el ejecutivo acerca de la eficiencia de estas entidades comparadas con las fuerzas del mercado. Los reguladores de Nicaragua, Honduras y, hasta cierto punto Panamá, podrán transferir más fácilmente sus funciones a un agente regional. En Guatemala y El Salvador están limitados debido a que en esos países la ley les confiere funciones mínimas.

 

García-Murillo, M., & MacInnes, I. (2005). The Impact of Legislative Change on the Behavior of Telecommunications Carriers. Telecommunications Policy, 29 (8).

Abstract:

Using James Buchanan 's theory of constitutional contract, the paper shows that weaknesses in US telecommunications law have led carriers to engage in unproductive activities that move them closer to the ‘‘state of nature ''instead of toward a superior outcome for all parties. This paper focuses on the period before and after the Telecommunications Act of 1996,a law with such a broad scope that there were many ambiguities and contradictions. Affected parties attempted to take advantage of these to design a constitutional contract that would favor them over their rivals. The paper focuses on the interconnection aspects of the law and presents recommendations for reducing unproductive activities.

 

García-Murillo, M. and Kuerbis, B., “The Effect of Institutional Constraints on the Success of Universal Service Policies,” Telecommunications Policy (forthcoming).

Abstract:

Beginning in the late 1980s and early 1990s governments began to privatize state operators and open markets to competition. The introduction of liberalization to telecommunication markets has had well known positive effects on the sector. In reconciling the dramatic changes wrought by the liberalization process with social goals of universality of service, many countries considered revising their universal service programs. However, despite strong support for these programs, there are critics. Some scholars argue that they have not led to a substantial increase in telephone penetration. The purpose of this paper is to determine how effective in terms of network expansion these programs have been. Using data from 189 countries we conducted a regression analysis to help elucidate this debate. The statistical results indicate that universal service funds have not led to increases in the number of fixed telephone lines but they show a positive relationship with the number of public phones. Consistent with previous studies, the analysis indicates that per capita income, population size, and the size of the manufacturing and service sector positively contribute to the telecommunications infrastructure. Of the institutional variables that were included, the presence of the regulator shows positive effects on the payphone infrastructure as well as the number of employees in these agencies. Overall the research suggests that these programs have positive effects for universal access and governments are encouraged to continue them.

 

García-Murillo M., “Institutions and the adoption of electronic commerce in México,” Electronic Commerce Research Journal, Vol 4. No. 3, July 2004.

Abstract:

This paper identifies factors affecting the implementation of electronic commerce in Mexico and the solutions that companies have developed to overcome underlying obstacles. Even though there are some obvious barriers such as lack of resources, economic hardship, and poor infrastructure, there are other related factors that affect broad implementation in more subtle ways. Using theories of institutional economics and the resource-based theory of the firm as a framework of analysis, this paper focuses on the rules of behavior that have prevailed in Mexican business transactions and are likely to affect the adoption of electronic commerce applications. The paper covers infrastructure, supply, and demand factors as well as identifying the economic limitations and the institutional implications of these circumstances. It concludes that even though the economic conditions are improving it will be some time before people change their behavior to embrace electronic commerce more widely.

García-Murillo M., Annabi H., “Customer knowledge management,” Journal of the Operational Research Society, Vol. 53, No. 8, 2002.

Abstract:

Customer knowledge has received little attention in the knowledge management literature. The authors of this exploratory study argue that practices in marketing and customer relationship management have not been able to capture knowledge from customers that comes from social interactions with firm employees. The authors propose a three-step model by which corporations can obtain this knowledge. The model’s theoretical base comes from the information retrieval and socialization concepts of the knowledge management literature. The paper identifies cultural changes required to make this process successful.

García-Murillo M., “Glenview Hospital Knowledge Base” Annals Of Cases On Information Technology, Volume 5, 2003, pp.387-400.

Abstract:

This case focuses on the challenges of managing a help desk that supports computer users. There are two main technologies that the Information Center (IC) uses to provide this service: the call distributing system and the knowledge base, which is also available on the Web. The choice of technologies affected the service provided by the help desk staff. Specifically, the call distributing system was unable to provide enough information regarding the number of calls answered, dropped, and allocated among the different staff members. The hospital knowledge base, on the other hand, is created based on people’s documentation of the problem and selection of keywords, which has led to inconsistencies in the data entry. One of the management challenges for the Information Center is to foster self-help and minimize the number of requests to the IC staff. This case presents the difficulties and some of the initiatives that the IC has considered to solve these problems.

García-Murillo M., MacInnes I., “FCC organizational structure and regulatory convergence,” Telecommunications Policy. Vol. 25 Issue 6, July 2001.

Abstract:

Convergence of information industries has led to the emergence of services that cross industry boundaries. Changes in these industries have caused the organization of regulatory institutions to become inadequate. An exploratory analysis of orders issued by bureaus of the US Federal Communications Commission shows overlap in the issues on which each provides rulings. Rather than organizing into traditional industries such as common carrier, cable, and mass media, bureaus could be re-organized into functions such as oversight of rates, spectrum allocation, and universal service provision. Using theories of bureaucracy and organization, this paper proposes an explanation for the difficulties that the FCC has had in adapting to converging information industries.

Roycroft T. and García-Murillo M., “Trouble Reports as an Indicator of Service Quality,” Telecommunications Policy. Vol. 24, Issues 10-11, November 2000.

Abstract:

Network trouble reports provide a proxy measure of service quality and network reliability. This paper analyzes the influence of local competition, state-level regulation, new technologies, automation, and mergers on RBOC reports of network trouble. Service quality discrimination between residential and business customers is also analyzed. Results indicate that (1) service quality discrimination between business and residential customers in response to competition may be occurring, (2) alternative regulation plans have not led to systematic increases in network trouble, and (3) merger and technology have a consistent impact on repeat trouble.

García-Murillo, Martha and Ian MacInnes, “The impact of technological convergence on the regulation of ICT industries,” Journal of Media Management, Vol. 5 No. 1 pp. 57-67, 2002.

Abstract:

The objective of this paper is to identify alternative models of regulation that address the problems and opportunities brought about by convergence. Regulatory convergence involves bringing together previously separate industry-based regulations into a single legal and regulatory framework. Regulators need to consider different levels of and objectives for regulating sectors as well as overcome inconsistencies in regulation that result from traditional separation. These can result in regulatory arbitrage as companies try to choose the laws and bodies that most benefit them. Regulators also must deal with technological uncertainty and competition policies. There are five alternatives for regulating converging industries: status quo regulator, multi-sector regulator, ICT regulator, coordination among regulators, and minimal regulation. Each of these represents different degrees of change that can be chosen based on circumstances including: competition, path dependency, perceptions about the environment, knowledge, and power.

García-Murillo M., MacInnes I., “The impact of incentives in the Telecommunications Act of 1996 on the business behavior of carriers,” Telecommunications Policy (under review).

Abstract:

Rules are necessary to provide or shape the incentives of individuals and organizations. This is particularly true when the market leads to undesirable outcomes. The Telecommunications Act of 1996 attempted to create incentives to foster competition. Ambiguity as well as the timing of the Act has led to delays in the clarification of rules and the rapid obsolescence of the legislation. This paper presents the strategies that common carriers, cable operators, and broadcasters have adopted to try to tilt regulation in their favor, slow the entry of competitors, maintain market leadership, and expand into other segments. Some of the strategies analyzed include lobbying efforts, court challenges, lack of cooperation with new entrants, and mergers and acquisitions.

Garcia-Murillo, M. 2003, Assessing The Impact Of Internet Telephony On The Deployment Of Telecommunications Infrastructure, paper presented to NET Institute Conference at Stern/NYU, New York, NY. Available at: http://www.netinst.org/2003_conference.htm Paper under review at Information Economics and Policy

Abstract:

The purpose of this research is to determine whether Internet telephony has had a negative impact on a country's telecommunications infrastructure. Using panel data the statistical analysis shows that call-back did not have a negative effect on infrastructure and high income countries benefited from that technology. Internet telephony shows a negative impact in high and lower middle income countries but at such a small scale that governments should not be concerned. Additionally the year variables show that for all income levels infrastructure has increased which means that if this technology will show any negative effects it will be in a gradual manner and should give carriers enough time to adjust their practices.

Regulation:McKnight, L. and García-Murillo, M., "The Regulatory Treatment of Internet Telephony," New Millennium Research Council Report, 2003.
Available at: http://www.newmillenniumresearch.org/news/voip_nmrc.pdf

Abstract:

In this document we summarize for the FCC our views on the factors that should be considered when making regulatory decisions regarding Internet telephony in particular and other new technologies in general. Because of the complexities of the issue we do not believe that it is possible to make one general recommendation that will qualify an Internet telephony provider as a telecommunications or information carrier. The uniqueness of the service could make carriers providing these services fall in either of these categories. Ideally a comprehensive framework that includes traditional carriers should be developed. A change of this sort will require revisions in the law in the short term. Thus, we recommend a tailored approach where regulation is only implemented in crucial areas such as law enforcement, where the market is unlikely to provide a satisfactory solution, and allows the technology to develop to foster competition, which puts pressure on traditional carriers to adopt this technology. We address four areas: 1) national versus state regulation for new information and communication technologies 2) Regulatory treatment of voice over Internet Protocol service providers, or Internet Telephony Service Providers (ITSPs) 3) Regulation of Information versus telecommunication services, and 4) Social responsibility. Our general views are that 1) nationally uniform treatment of Voice over Internet Protocol is preferable, but state experimentation as a 'laboratory of democracy' may be appropriate in advance of new federal legislation for a unified 'open communication policy' whose key elements are discussed below; 2) that if and when ITSPs can be defined, they should be treated equally and equitably; 3) that the distinction between telecommunication and information services has been helpful in preventing over-regulation of innovative new technologies such as Internet Telephony, but that such a distinction may no longer be meaningful following adoption of that aforementioned, but as yet non-existent, new uniform legislatively-grounded framework for an open communication policy; and 4) that social responsibilities must be respected, and enforced, whatever technology is used for communication, including for continued recognition of the social value of the principle of universal service, or access, for which there is political consensus within the United States and other nations. Having said that, given the growth of new low-cost technologies for information and communication including for communication by Voice over Internet Protocol-based systems, the mechanisms, and costs of universal service support should be rethought as part of a broader effort to define an open communications policy for the 21st Century.

Garcia-Murillo Martha and James Pick, “Interconnection Regulation: Explaining Dominance by Incumbent in Mexico ,” Communications and Strategies. Vol. 53 No. 1 March, 2004.

Abstract:

The purpose of this paper is to determine the factors that have allowed dominant carriers to maintain their monopolies in spite of regulatory efforts to introduce competition. The paper focuses exclusively on interconnection because it is the element that allows non-dominant companies enter a market. Two existing theoretical frameworks and two others developed in this research explain the factors that have limited the ability of regulators to achieve their competition goal: (1) asymmetric information, (2) capture theory, (3) minimum compliance, and (4) legal play. After explaining the theory, the paper presents the Mexican case, the environment of liberalization arising from the 1995 federal telecommunications law, as well as regulations and court rulings that resulted from the disputes among carriers. Comparisons are drawn with the historical U.S. regulation of interconnection. The proposed theory combined with existing theories appears to provide a good but still imperfect explanation of why the incumbent carrier in Mexico maintains its monopoly status in spite of efforts to promote competition.

Other publications

García-Murillo M. The Challenges of Convergence, Geneva: ITU, 2003.

García-Murillo M. Telecomunicaciones y la Armonización de la Regulación en Centroamérica, Geneva: ITU, 2003.

Worthington R., Fife E., García-Murillo M., Harrison J., Time Warner Turner Competitive Analysis, Consulting Report, Los Angeles: Center for Telecommunications Management, 1997.

Hanley J., García-Murillo M., MacInnes I.,. Ericsson High Potential Manager Program: Competitor-Competitiveness Analysis of the Telecommunications Equipment Industry, Los Angeles: Center for Telecommunications Management, 1997.

Hanley J., Fife E., García-Murillo M., Harrison J., MacInnes I. Pereira, I., Benchmarking for Best Practices: A Performance Assessment Framework for the Global Telecommunications Industry, Los Angeles: Center for Telecommunications Management, 1996.

García-Murillo M., “Technology and Education: A Driver of Bandwidth Demand,” Center for Telecommunications Management, working paper, 1996.

García-Murillo M., “Three Fallacies of the NAFTA Debate,” The LockeSmith Review, Vol. 1, 1994, pp. 189-192.

García-Murillo M., Japanese Direct Investment in the Mexican Electronics Industry, B.A. Thesis, National Autonomous University of Mexico, 1991.

 

Unpublished manuscripts

García-Murillo M., Getting that first idea: suggestions for Ph.D. students, 2001.

García-Murillo M., The impact of free publications on the prices of fee-based publications sold on line, 2000.

García-Murillo M., Institutional development in the software industry: Intellectual property protection. Ph.D. Dissertation, University of Southern California, 1998.

García-Murillo M., Electronic commerce and market coordination, 1996

García-Murillo M., Globalization and the development of an information infrastructure, 1996

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