Meddling Through: Regulating Local Telephone Competition in the United States | Zendy

Robert G. Harris | Zendy; Christian Kraft | Zendy

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Meddling Through: Regulating Local Telephone Competition in the United States

Author(s) -

Robert G. Harris,

Christian Kraft

Publication year - 1997

Publication title -

the journal of economic perspectives

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 9.614

H-Index - 196

eISSN - 1944-7965

pISSN - 0895-3309

DOI - 10.1257/jep.11.4.93

Subject(s) - competition (biology) , investment (military) , business , state (computer science) , telecommunications , industrial organization , telecom infrastructure sharing , state policy , economics , market economy , economic policy , law , engineering , political science , ecology , algorithm , politics , computer science , biology , russian federation

After a brief history of telecommunication policies and the development of local competition in the United States, this paper analyzes the Telecommunications Act of 1996 and subsequent FCC and state regulatory decisions. Unfortunately, these recent policy changes have generated pervasive, intrusive regulations, undermining the objectives the Telecom Act was intended to promote: competition, innovation, and investment in telecommunications infrastructure. States should allow incumbent local carriers to rebalance their retail rates and set interconnection prices based on actual costs. Federal policymakers should reduce and liberalize regulations, allowing market forces more freedom to allocate resources and shape industry structure.

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