Industrial Production and Capacity Utilization - G.17
Quality-Adjusted Price Indexes for Communications Equipment Excel
Sources and Methods
Price index calculation sources and methods by product class
Product Class | Sources and Methods |
---|---|
Telephones | 1987-1997: TIA telephone unit value with 8.5 ppt bias-adjustment from 2003-2006 overlap with CTA index. 1997-2006: Fisher chain-weighted matched model index of product class unit values from CTA. 2007-last year: Matched-model index using Dell'Oro worldwide quarterly-frequency revenue and unit data for 5 types of phones, by vendor, with 6.5 ppt bias-adjustment from 2003-2006 overlap with CTA index. |
Fax machines | 1989-1996, 2007-2012: TIA average price bias-adjusted using 1996-2007 overlap (5.4 percentage points). 1996-2002: Matched-model index based on [provider name withheld] U.S. market revenue and units for four technology classes. 2002-2007: Matched-model index based on [provider name withheld] U.S. market quarterly-frequency revenue and units by model. 2007-last year: Average rate for 2009-2012 period. |
Modems | Analog 1987-1989: Matched-model index using Census Current Industrial Report annual-frequency revenue and units for 4 speed classes. 1989-1998: Doms (2005) 1998-2009: BEA computer investment deflator used as indicator. Broadband 1987-1998: N/A 1998-last year: Matched model index using Dell'Oro quarterly-frequency revenue and units, cable, DSL, and PON modems (7 technologies), by vendor. |
Message equipment & miscellanous terminals | 1987-1998: TIA ave. price of answering machines, bias-adjusted relative to 1998-2006. 1998-2006: Geomean of price indexes based on data from CTA and from [provider name withheld]. CTA index: Matched-model index for voice message systems, U.S. market revenue and units for answering devices, with and without integrated telephones, monthly-frequency data. [provider name withheld] index: matched-model index using revenue and units, worldwide market for contact center systems, 6 size classes. 2007-2012: TIA ave. price of answering machines, bias-adjusted relative to 1998-2006. 2012-last year: Ave. rate, 2007-2012. |
Data networking | 1987-1992: BEA computer investment price index 1992-1995: FRB research—annual indexes for routers, switches, and hubs. Routers: ave. rate of change for 1996-1999. Switches (1992-1996): price per port index using [provider name withheld] data bias-adjusted using Doms-Forman (2005) results. Hubs: matched-model, [provider name withheld] data—annual for world market, unit value for 7 types. 1995-2000: FRB research indexes for routers, switches, hubs reported in Doms-Forman (2005). Routers: annual-frequency hedonic index using Cisco model list prices for U.S. market and product characteristics from Cisco catalogs. Switches (1996-2000): annual-frequency hedonic index using list prices and product characteristics for models from Cisco and other companies from "Comparison Columns" reports published by [provider name withheld]. Hubs: matched-model, [provider name withheld] data—annual for world market, unit value for 7 types. [LAN card index out of scope.] 2000-latest year: FRB research indexes for routers, ethernet switches, SAN switches, wireless LAN equipment. Routers: matched-model index using Dell'Oro worldwide market quarterly-frequency data for 3 types by vendor—unit value for access (high/low), price per capacity (MBps) for high-end. Ethernet switches: matched-model index using Dell'Oro worldwide market quarterly-frequency data for 9 types by vendor—price per capacity (MBps). SAN switches: matched-model index using quarterly-frequency Dell'Oro worldwide market data for four types by vendor—price per port. WLAN data: matched-model index using quarterly-frequency Dell'Oro worldwide market data for 5 types further divided by 802.11 technology by vendor—price per unit. |
Legacy central office switching equipment | 1987-1993: Hedonic index for digital circuit switching equipment, Currie (2005). 1993-2006: Matched-model index using [provider name withheld] U.S. market annual-frequency data on three types of equipment, data on revenue and lines. 2007-2012: Matched-model index using Dell'Oro worldwide market quarterly-frequency data on revenue and channels. 2013-last year: Extended using average rate, 2007-2012. |
Business voice switching equipment | 1987-1994: Central office index used as indicator. 1994-2001: Matched-model index using [provider name withheld] worldwide market annual-frequency data on revenue and lines for 16 types of equipment. 2001-last year: Matched-model index using Dell'Oro worldwide market quarterly-frequency data on revenue and units for 15 types of equipment, revenue and units for 5 types of phones. |
Local loop transmission equipment | 1987-1993: Central office index used as indicator. 1993-1998: Matched-model index using [provider name withheld] worldwide market annual frequency data on revenue and units for 17 product types. 1998-last year: Matched-model index using Dell'Oro worldwide market quarterly-frequency data on revenue and ports for 7 product types, by vendor. |
Fiber optic long-haul transmission equipment | 1987-1993: Central office index used as indicator. 1993-1998: Research index from Doms (2005). 1998-last year: Matched-model index using Dell'Oro worldwide market quarterly-frequency data on revenue and capacity for 4 product types (switch, SONET, DWDM longhaul, WDM metro), by vendor. |
Legacy long-haul transmission equipment | 1987-1995: Central office index used as indicator 1996-last year: 1/2 the growth rate of the fiber transmission index. |
Cell phones | 1983-1990: Hausman (1995) ave. rate, -16.9 percent. 1990-1995: Matched-model index using price listings from Radio Shack catalogs for 12 models. 1995-2002: Matched-model index using [provider name withheld] U.S. market annual-frequency revenue and units, 16 types. 2002-2006: Hedonic price index using quarterly-frequency data, Watanabe (2010). 2006-2009: Ave. rate, 2003-2006 2009-2014: Matched-model price index using used cell phone prices from Phoneraiser, adjusted for depreciation. 2014-2016: Ave. rate 2011-2014 |
Cellular network equipment | 1987-1992: Ave. rate 1984-2016 2000-last year: Matched-model index using Dell'Oro worldwide market quarterly-frequency revenue and for 5 channel access technologies by 3 size classes, by vendor |
Satellites | 1987-2010: FRB research index based on price per unit of transmission capacity using data from Futron and TSE. See Byrne and Corrado (2015). 2010-last year: Ave. rate, 2000-2010 |
Satellite network equipment | 1987-last year: 1/2 growth rate of cellular networking equipment price index. |
Miscellaneous/other wireless equipment | 1987-last year: 1/2 growth rate of cellular networking equipment price index. |
Studio & broadcast equipment | 1987-1993: Geomean of (1) BOJ producer price index for video production equipment and (2) 1/4 telecommunications cost index (see Byrne and Corrado (2016). 1993-last year: Geomean of (1) BOJ producer price index for video production equipment and (2) 1/2 growth rate of cellular networking equipment price index. |
Intercom systems | 1987-last year: BLS producer price index. |
Alarm systems | 1987-last year: BLS producer price index. |
Traffic signal equipment | 1987-last year: BLS producer price index. |
Abbreviations
Abbreviation | Definition |
---|---|
Futron | Futron, Inc. |
BEA | U.S. Bureau of Economic Analysis. |
BLS | U.S. Bureau of Labor Statistics. |
BOJ | Bank of Japan. |
Census | U.S. Census Bureau. |
CTA | Consumer Technology Association, formerly known as Consumer Electronics Association. |
Dell'Oro | Dell'Oro Group, Inc. |
FRB | Board of Governors of the Federal Reserve System. |
Phoneraiser | Phoneraiser.com. |
TIA | Telecommunications Industry Association. |
TSE | The Satellite Encyclopedia. |
References
Byrne, David M., and Carol A. Corrado. (2017) "ICT Services and their Prices: What do they tell us about Productivity and Technology." International Productivity Monitor (29, forthcoming)
Byrne, David M., and Carol A. Corrado. (2015) "Prices for communications equipment: Rewriting the record." Available at: https://www.federalreserve.gov/econresdata/feds/2015/files/2015069pap.pdf
Currie, Kent A. "Hedonic Prices for Digital Circuit Switching Equipment: 1980-1998", working paper.
Doms, Mark, and Chris Forman. (2005) "Prices for local area network equipment." Information Economics and Policy 17, no. 3: 365-388.
Doms, Mark. (2005) "Communications Equipment: What Has Happened to Prices?." In Measuring Capital in the New Economy, pp. 323-362. University of Chicago Press.
Flamm, Kenneth. (1989) "Technological advance and costs: computers versus communications." Changing the rules: Technological change, international competition, and regulation in communications: 13-61.
Gordon, Robert J. (2007) The Measurement of Durable Goods Prices. University of Chicago Press.
Grimm, Bruce T. (1997) “Quality-Adjusted Price Indexes for Digital Telephone Switches.” Memorandum (Bureau of Economic Analysis, May 20).
Hausman, Jerry. (1999) "Cellular telephone, new products, and the CPI." Journal of Business & Economic Statistics 17, no. 2: 188-194.
Watanabe, Naoki, Ryo Nakajima, and Takanori Ida. (2010) "Quality-adjusted prices of Japanese mobile phone handsets and carriers’ strategies." Review of Industrial Organization 36, no. 4: 391-412.