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US Telecommunications Today, October 2002

  • Nicholas Economides

    (Stern School of Business, New York University)

This paper examines the current conditions in the US telecommunications sector (October 2002). 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.

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File URL: http://128.118.178.162/eps/io/papers/0407/0407007.pdf
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Paper provided by EconWPA in its series Industrial Organization with number 0407007.

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Length: 22 pages
Date of creation: 14 Jul 2004
Date of revision:
Handle: RePEc:wpa:wuwpio:0407007
Note: Type of Document - pdf; pages: 22
Contact details of provider: Web page: http://128.118.178.162

References listed on IDEAS
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  1. 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.
  2. Economides, Nicholas, 1996. "The economics of networks," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 673-699, October.
  3. Nicholas Economides & Giuseppe Lopomo & Glenn Woroch, 1997. "Regulatory Pricing Policies to Neutralize Network Dominance," Industrial Organization 9612003, EconWPA.
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