The Telecommunications Act of 1996 and its impact1
AbstractThis paper analyzes the effects on the implementation of the Telecommunications Act of 1996 ("Act") on US telecommunications markets and is based on my forthcoming book with the same title. The Act is a milestone in the history of telecommunications in the United States. Coming 12 years after the breakup of AT&T, the Act attempts to move all telecommunications markets toward competition. The Act envisions competition in all telecommunications markets, both in the markets for the various elements that comprise the telecommunications network, as well as for the final services the network creates. Building on the experience of the long distance market, which was transformed from a monopoly to an effectively competitive market over the last 12 years, the Act attempts to promote competition in the hitherto monopolized local exchange markets. The Act recognizes the telecommunications network as a network of interconnected networks. Telecommunications providers are required to interconnect with entrants at any feasible point the entrant wishes. Most importantly, the Act requires that incumbent local exchange carriers ("ILECs") (i) lease parts of their network (unbundled network elements) to competitors "at cost"; (ii) provide at a wholesale discount to competitors any service the ILEC provides; and (iii) charge reciprocal rates in termination of calls to their network and to networks of local competitors. Moreover, the Act requires that ILECs that came out of the Bell System meet a number of requirements, including a public interest test, before they may enter into the long distance market. Thus, the Act provides some safeguards against the export of ILEC monopoly power to other parts of the network. Numerous legal challenges to the Act and its implementation have been raised by the ILECs resulting in very slow implementation of the Act, and, in many cases, in no substantial implementation of the provisions of the Act. Thus, more than two year
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Japan and the World Economy.
Volume (Year): 11 (1999)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505557
Other versions of this item:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- D4 - Microeconomics - - Market Structure and Pricing
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nicholas Economides, 2004.
"Telecommunications Regulation: An Introduction,"
04-20, NET Institute, revised Aug 2004.
- Nicholas Economides, 2003. "Telecommunications Regulation: An Introduction," Working Papers 03-22, New York University, Leonard N. Stern School of Business, Department of Economics.
- Economides, Nicholas, 2003. "Telecommunications Regulation: An Introduction," Working paper 222, Regulation2point0.
- Nicholas Economides, 2004. "Telecommunications Regulation: An Introduction," Working Papers 04-10, New York University, Leonard N. Stern School of Business, Department of Economics.
- Nicholas Economides, 2004. "Telecommunications Regulation: An Introduction," Industrial Organization 0407008, EconWPA.
- Vahagn Jerbashian, 2011.
"The Telecommunications Industry and Economic Growth: How the Market Structure Matters,"
CERGE-EI Working Papers
wp431, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Vahagn Jerbashian, 2011. "The Telecommunications Industry and Economic Growth: How the Market Structure Matters," DEGIT Conference Papers c016_027, DEGIT, Dynamics, Economic Growth, and International Trade.
- Giovannetti, E., 2000.
"Interconnection, Differentiation and Bottlenecks in the Internet,"
Cambridge Working Papers in Economics
0011, Faculty of Economics, University of Cambridge.
- Giovannetti, Emanuele, 2002. "Interconnection, differentiation and bottlenecks in the Internet," Information Economics and Policy, Elsevier, vol. 14(3), pages 385-404, September.
- Bijl, P.W.J. de & Peitz, M., 2004. "Unbundling the Local Loop: One-Way Access and Imperfect Competition," Discussion Paper 2004-025, Tilburg University, Tilburg Law and Economic Center.
- Economides, Nicholas, 2003.
"Competition Policy in Network Industries: An Introduction,"
- Nicholas Economides, 2003. "Competition Policy In Network Industries:An Introduction," Working Papers 03-09, New York University, Leonard N. Stern School of Business, Department of Economics.
- Nicholas Economides, 2004. "Competition Policy In Network Industries: An Introduction," Working Papers 04-24, NET Institute, revised Jun 2004.
- Nicholas Economides, 2004. "Competition Policy In Network Industries: An Introduction," Industrial Organization 0407006, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.