A Fox in the Hen House: An Evaluation of Bell Company Proposals to Eliminate their Monopoly Position in Local Telecommunications Markets

2004 ◽  
Author(s):  
George S. Ford
2008 ◽  
Vol 7 (4) ◽  
Author(s):  
Robert W. Crandall

Alfred Kahn's book, Letting Go: Deregulating the Process of Deregulation, suggested that regulators step aside once they have set basic rules for entry into erstwhile monopolized markets. Unfortunately, communications regulators have not heeded Professor Kahn's advice. I provide an analysis of the effects of three exercises in U.S. Federal Communications Commission (FCC) regulation or "deregulation": (1) the post-1996 unbundling regime designed to facilitate entry into local telecommunications markets; (2) the continuation and extension of the high-cost "universal service" program funded by the taxation of long-distance telephony; and (3) the FCC's attempt to regulate cable television rates.


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