An Economic Approach for Evaluating a National Wireless Regulatory Framework
Phoenix Center Policy Bulletin No. 19
14 Pages Posted: 16 Nov 2007
Date Written: October 2007
In this Policy Bulletin, we provide a focused economic analysis of the welfare effect of state and local regulation on communications services and, in particular, on the wireless segment of the telecommunications industry. We find that when local regulation in one jurisdiction has sufficiently large "extra-jurisdictional" effects in other locations, overall social welfare can be reduced even if state and local governments act as efficient regulators. This finding is important because it shows that the debate over the proper regulatory framework for the wireless industry need not be driven by an assessment of which set of regulators, federal or state, is more competent. Accordingly, because state and local regulation in the wireless industry has the tendency to spill across borders, our analysis suggests that society is likely better to be off with a single, national regulatory framework for wireless services.
Keywords: wireless, Federalism, national framework, telecommunications
JEL Classification: K23, L51, L96, L98, O38,
Suggested Citation: Suggested Citation