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Table of contents (8 chapters)
Keywords
About this book
Three principal themes are developed in this book. First, there has been a coordination failure between Congress and the FCC in translating the principles embodied in the Act into practice. The authors provide evidence for this by analyzing stock market reactions to legislative and regulatory actions. This coordination failure was largely predictable, given the ambiguity in the Act, as well as conflicting jurisdictions between the FCC and the states.
Second, the Act calls for wholesale prices to be `based on cost.' Regulators adopted a costing standard (TELRIC) that provides a means to subsidize competitive entry in local telephone service markets. The ready adoption of the TELRIC standard by regulators is shown to be tied to the third theme: price cap regulation provides regulators with `insurance' against the adverse effects of competition in local telephone markets. Statistical analysis reveals that regulators in price cap states set uniformly lower unbundled network element prices (lower barriers to entry) in comparison with regulators in rate-of-return and earnings sharing states. The result is a triumph of regulatory processes over market processes - the antithesis of the purpose of the Act.
Authors and Affiliations
Bibliographic Information
Book Title: The Telecommunications Act of 1996: The “Costs” of Managed Competition
Authors: Dale E. Lehman, Dennis L. Weisman
Series Title: Topics in Regulatory Economics and Policy
DOI: https://doi.org/10.1007/978-1-4615-4315-2
Publisher: Springer New York, NY
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eBook Packages: Springer Book Archive
Copyright Information: Springer Science+Business Media New York 2000
Hardcover ISBN: 978-0-7923-7957-7Published: 30 September 2000
Softcover ISBN: 978-1-4613-6937-0Published: 02 November 2012
eBook ISBN: 978-1-4615-4315-2Published: 06 December 2012
Series ISSN: 2730-7468
Series E-ISSN: 2730-7476
Edition Number: 1
Number of Pages: X, 128
Topics: Microeconomics, Public Economics, Energy Policy, Economics and Management