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Unbundling Policy in the United States Players, Outcomes and Effects

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  • Bauer, Johannes M.

Abstract

Building on attempts during the 1980s to establish principles of Open Network Architecture (ONA), unbundling obligations became a cornerstone of the framework for local competition devised by the Telecommunications Act of 1996. Several of the regulations developed by the Federal Communications Commission (FCC), including the impairment test to assess whether a network element had to be unbundled, the TELRIC pricing method, the obligation to re-bundle network elements to service platforms and the unbundling provisions for broadband networks were challenged repeatedly in court. In response to multiple defeats of earlier rules, the FCC had to refine its approach and define unbundling obligations more narrowly. Effective as of March 11th, 2005, unbundling obligations will essentially be limited to the local copper loop, dedicated interoffice transportation on routes connecting small markets, and high-capacity loops in small markets. Carriers presently using unbundled network elements that do not qualify under the new rules will have to transition to alternative solutions within 12-18 months. During this period, the FCC has set higher ceiling prices for these unbundled network elements. The Commission affirmed the elimination in 2003 of its unbundling obligations in broadband markets.

Suggested Citation

  • Bauer, Johannes M., 2005. "Unbundling Policy in the United States Players, Outcomes and Effects," MPRA Paper 2455, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2455
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Serdarević, Goran & Hunt, Matt & Ovington, Tom & Kenny, Clive, 2016. "Evidence for a Ladder of Investment in Central and Eastern European countries," Telecommunications Policy, Elsevier, vol. 40(6), pages 515-531.
    2. Stocker Volker & Knieps Guenter, 2018. "Network Neutrality Through the Lens of Network Economics," Review of Network Economics, De Gruyter, vol. 17(3), pages 115-150, September.
    3. Thomas Cortade & Edmond Baranes, 2007. "Fusions horizontales sur le marché de l'Internet," Économie et Prévision, Programme National Persée, vol. 178(2), pages 67-77.
    4. Briglauer, Wolfgang & Stocker, Volker & Stockhammer, Paul, 2019. "Ist Netzneutralität tatsächlich gut? Eine Neubewertung vor dem Hintergrund der Regulierung in den USA und in der EU sowie aktueller Forschungsergebnisse," Policy Notes 38, EcoAustria – Institute for Economic Research.
    5. 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.
    6. Gaudin, Germain & Saavedra, Claudia, 2014. "Ex ante margin squeeze tests in the telecommunications industry: What is a reasonably efficient operator?," Telecommunications Policy, Elsevier, vol. 38(2), pages 157-172.
    7. Vanberg, Margit A., 2007. "Implications of Network Convergence on Local Access Regulation in the U.S. and the EU," ZEW Discussion Papers 07-039, ZEW - Leibniz Centre for European Economic Research.
    8. Pio Baake & Brigitte Preißl (Eds.). Johannes M. Bauer & Per Björstedt & Elena Gallo & Anders Henten & Sven Lindmark & Martijn Poel & Enzo Pontarollo & Knud Erik Skouby & Jason Whalley, 2006. "Local Loop Unbundling and Bitstream Access: Regulatory Practice in Europe and the U.S," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 20, number pbk20, January.
    9. Choi, Sujin, 2011. "Facilities to service based competition, not service to facilities based, for broadband penetration: A comparative study between the United States and South Korea," Telecommunications Policy, Elsevier, vol. 35(9), pages 804-817.
    10. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2440, University Library of Munich, Germany.
    11. Bauer, Johannes M., 2022. "Toward new guardrails for the information society," Telecommunications Policy, Elsevier, vol. 46(5).
    12. Pereira, Pedro & Vareda, João, 2013. "How will telecommunications bundles impact competition and regulatory analysis?," Telecommunications Policy, Elsevier, vol. 37(6), pages 530-539.

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    More about this item

    Keywords

    Unbundling; voice; broadband;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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