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Do Common Carriage, Special Infrastructure, And General Purpose Technology Rationales Justify Regulating Communications Networks?

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  • Mark A. Jamison
  • Janice A. Hauge

Abstract

We address whether regulation of communications networks remains warranted. We use the concepts of public utility, common carrier, special infrastructure, and general purpose technologies to analyze this question, as such concepts typically are invoked as foundations for continued regulation of communications networks. We examine the historical development of the public utility and common carrier concepts and find that the essential features of these constructs largely do not fit communications networks today and for the foreseeable future. More recent frameworks for economic regulation also do not fit. Communications networks are not special infrastructure because they do not exhibit zero marginal costs over an appreciable range of demand and do not exhibit a differentiating amount of social demand. Communications networks appear to satisfy the conditions for general purpose technologies, but the features of these technologies that would compel economic regulation, primarily the presence of significant externalities, are lacking.

Suggested Citation

  • Mark A. Jamison & Janice A. Hauge, 2014. "Do Common Carriage, Special Infrastructure, And General Purpose Technology Rationales Justify Regulating Communications Networks?," Journal of Competition Law and Economics, Oxford University Press, vol. 10(2), pages 475-493.
    • Handle: RePEc:oup:jcomle:v:10:y:2014:i:2:p:475-493.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhu001
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    Cited by:

    1. Lehr, William & Sicker, Douglas, 2017. "Communications Act 2021," 28th European Regional ITS Conference, Passau 2017 169478, International Telecommunications Society (ITS).

    More about this item

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General

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