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<p>This thesis analyzes the economic causes for continued excess demand in the Naval Telecommunications System (NTS). It provides a framework for relating the NTS market to the market for all Naval record communications. Substitute systems for specific types of Naval messages are identified along with reasons why these systems are not used. In some cases, facsimile (FAX) or personal computer (PC) networking can substitute for the NTS. Unfortunately, most users do not have access to these systems and/or would have to use their budget to gain access to and use these systems. Using microeconomic analysis, several alternative policies to reduce excess NTS demand are discussed in this thesis. Alternatives explored include; charging prices for NTS use, introducing inefficiencies to the NTS, subsidizing all Naval record communications, and administratively denying NTS use by precedence, community, and/or time period.  For various reasons, pricing, introducing inefficiencies, and subsidizing record communications are not considered viable solutions.  Administrative denial methods may be a more viable way to reduce demand for the NTS during peak periods.
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<br>Subjects: Naval telecommunications system; Naval communications; communications; microeconomics; record communications</div>
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McClurg, Kathleen A.</div>
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