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Telecommunications Regulation: An Introduction

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Author Info

  • Nicholas Economides

    (Stern School of Business, New York University)

Abstract

This paper examines the justifications, history, and practice of regulation in the US telecommunications sector. We examine the impact of technological and regulatory change on market structure and business strategy. Among others, we discuss the emergence and decline of the telecom bubble, the impact on pricing of digitization and the emergence of Internet telephony. We briefly examine the impact of the 1996 Telecommunications Act on market structure and strategy in conjunction with the history of regulation and antitrust intervention in the telecommunications sector. After discussing the impact of wireless technologies, we conclude by venturing into some short term predictions. We express concern about the derailment of the implementation of the 1996 Act by the aggressive legal tactics of the entrenched monopolists (the local exchange carriers), and we point to the real danger that the intent of Congress in passing the 1996 Act to promote competition in telecommunications will not be realized. We also discuss the wave of mergers in the Telecommunications and cable industries, the telecom meltdown of 2000-2003, and issues that arose from the triennial review by the FCC of implementation of the 1996 Act.

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File URL: http://128.118.178.162/eps/io/papers/0407/0407008.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0407008.

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Length: 45 pages
Date of creation: 14 Jul 2004
Date of revision:
Handle: RePEc:wpa:wuwpio:0407008

Note: Type of Document - pdf; pages: 45
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Web page: http://128.118.178.162

Related research

Keywords: Words: telecommunications; regulation; competition; monopoly; oligopoly; Internet; broadband; DSL; unbundling; antitrust;

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References

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  1. Nicholas Economides, 1999. "Real Options and the Costs of the Local Telecommunications Network," Working Papers 99-11, New York University, Leonard N. Stern School of Business, Department of Economics.
  2. Economides, Nicholas, 1996. "The economics of networks," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 673-699, October.
  3. Nicholas Economides, 1998. "The Telecommunication Act of 1996 and its Impact," Working Papers 98-08, New York University, Leonard N. Stern School of Business, Department of Economics.
  4. Economides, Nicholas, 1998. "The incentive for non-price discrimination by an input monopolist," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 271-284, May.
  5. Nicholas Economides & Lawrence J. White, 1995. "Access and Interconnection Pricing: How Efficient is the Efficient Component Pricing Rule?," Working Papers 95-04, New York University, Leonard N. Stern School of Business, Department of Economics.
  6. Nicholas Economides & Giuseppe Lopomo & Glenn Woroch, 1997. "Regulatory Pricing Policies to Neutralize Network Dominance," Industrial Organization 9612003, EconWPA.
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Cited by:
  1. Gabriel Godofredo Fiuza de Bragança, 2005. "A Remuneração de Redes nas Telecomunicações e a Nova Orientação a Custos: Avaliação e Perspectivas Para a Telefonia Fixa Brasileira," Discussion Papers 1104, Instituto de Pesquisa Econômica Aplicada - IPEA.

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