Utility Entry into Telecommunications: Exactly How Serious are We?

Abstract

This Paper explores asks a very fundamental question: If meaningful, facilities-based competition and "de-regulation" for telecommunications and information services (and, a fortiori, competition and de-regulation for electricity as well) really is the end-goal of this whole "restructuring" exercise now under way, then exactly how serious are we about specifically permitting and promoting utility entry into telecommunications and information services markets? If the answer - as it should be - is affirmative, then this Paper argues that public policies should, therefore, stop erecting regulatory barriers to utility entry in the name of protecting "consumer welfare."

Keywords: Electric utilities, telecommunications, entry, barriers to entry

JEL Classification: L1, L5, L94, L96, L98, O38