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The Truth About Telecommunications Investment After the Telecommunications Act of 1996


Lawrence J. Spiwak


Phoenix Center for Advanced Legal & Economic Public Policy Studies

June 24, 2003

Phoenix Center Policy Bulletin No. 4

Abstract:     
An analysis of investment by telecommunications firms before and after the 1996 Telecommunications Act reveals substantial increases in the level of investment and capital stock for this sector following the enactment of this important legislation. There is no evidence that the 1996 Act reduced investment, and capital stock in the industry is at its historical peak. Indeed, the data shows some $267 billion in additional investment, more than $95.3 billion annually, in the five years following passage of 1996 Act. Despite recent declines in investment in the industry caused in part by the near total collapse of facilities-based CLECs, telecommunications investment remains well above historical levels.

Number of Pages in PDF File: 5

Keywords: Telecommunications, Competition, Unbundling, Investment

JEL Classification: K23, L10, L50, L96, O33, 038

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Date posted: February 18, 2004  

Suggested Citation

Spiwak, Lawrence J., The Truth About Telecommunications Investment After the Telecommunications Act of 1996 (June 24, 2003). Phoenix Center Policy Bulletin No. 4. Available at SSRN: http://ssrn.com/abstract=503364 or http://dx.doi.org/10.2139/ssrn.503364

Contact Information

Lawrence J. Spiwak (Contact Author)
Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )
5335 Wisconsin Avenue, NW
Suite 440
Washington, DC 20015
United States
202-274-0235 (Phone)
202-318-4909 (Fax)
HOME PAGE: http://www.phoenix-center.org
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