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Divestiture and regulatory policies : Implications for research, development and innovation in the US telecommunications industry

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  • Harris, Robert G.

Abstract

This article reviews recent changes in the structure of the US telecommunications industry and in public policies following the divestiture of AT & T, and examines their implications for R&D and innovation. A brief review of changes in the organization of R&D in the former Bell system is followed by a consideration of the effects of market structures on R&D incentives and organization. Finally the article examines the effects of the line-of-business restrictions imposed on the regional holding companies by the Modification of Final Judgment, the FCC's requirement for open network architecture, and rate-of-return regulation by state utility commissions. The central conclusion of the article is that US telecommunications policies may undermine incentives for R&D by the Bell operating companies while providing considerable incentives for them to turn to foreign manufacturers for new technology.

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  • Harris, Robert G., 1990. "Divestiture and regulatory policies : Implications for research, development and innovation in the US telecommunications industry," Telecommunications Policy, Elsevier, vol. 14(2), pages 105-124, April.
  • Handle: RePEc:eee:telpol:v:14:y:1990:i:2:p:105-124
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    Cited by:

    1. Torsten J. Gerpott, 2006. "Innovationen und Regulierung in der Telekommunikationswirtschaft," Schmalenbach Journal of Business Research, Springer, vol. 58(54), pages 133-153, January.

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