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Prospects for Deregulation in Telecommunications

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  • Farrell, Joseph

Abstract

The FCC and state regulators have been working hard since the 1996 passage of the Telecommunications Act to restructure regulation to make it more compatible with competition. Deregulation remains an especially complex problem for telecommunications, given such factors as its dependence on carrier-to-carrier cooperation, tendency toward a natural monopoly, the multi-dimensional aspects of competition, and the political constraint on deregulation. The paper suggests four organizing principles for deregulation: (A) accept some trade-off, given a state of competition; (B) recognize ex ante as well as ex post effects; remove stepping stones if they become deadweight; and (D) evolve away from subsidy mentality. The paper suggests some steps toward exploring the implications and possible implementation of these principles. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Farrell, Joseph, 1997. "Prospects for Deregulation in Telecommunications," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(4), pages 719-740, December.
    • Handle: RePEc:oup:indcch:v:6:y:1997:i:4:p:719-40
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    Cited by:

    1. Montgomery van Wart & Dianne Rahm & Scott Sanders, 2000. "Economic Development and Public Enterprise: The Case of Rural Iowa’s Telecommunications Utilities," Economic Development Quarterly, , vol. 14(2), pages 131-145, May.
    2. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: The fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. D. Kennet & Eric Ralph, 2007. "Efficient interconnection charges and capacity-based pricing," International Economics and Economic Policy, Springer, vol. 4(2), pages 135-158, August.
    4. Timothy Tardiff, 2007. "Changes in industry structure and technological convergence: implications for competition policy and regulation in telecommunications," International Economics and Economic Policy, Springer, vol. 4(2), pages 109-133, August.

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