The Impact of Legislative Change on the Behavior of Telecommunications Carriers

Telecommunications Policy, Vol. 29, No. 8, 2005

Posted: 16 Jan 2009

See all articles by Martha Garcia-Murillo

Martha Garcia-Murillo

Syracuse University - School of Information Studies

Ian MacInnes

Syracuse University

Date Written: October 30, 2005

Abstract

This article examines the effect of the behavior of carriers on the legal arrangements that regulate them. Using James Buchanan's theory of constitutional contract, the paper shows that weaknesses in US telecommunications law have led carriers to engage in unproductive activities that move them closer to the ''state of nature'' instead of toward a superior outcome for all parties. This paper focuses on the period before and after the Telecommunications Act of 1996, a law with such a broad scope that there were many ambiguities and contradictions. Affected parties attempted to take advantage of these to design a constitutional contract that would favor them over their rivals. The paper focuses on the interconnection aspects of the law and presents recommendations for reducing unproductive activities.

Keywords: FCC, PUC, Regulation, Legislation, Interconnection, Constitutional contract, Lobbying, Telecommunications Act of 1996

JEL Classification: H10, K23, L20, L63, L82, L86, 033

Suggested Citation

Garcia-Murillo, Martha A. and MacInnes, Ian, The Impact of Legislative Change on the Behavior of Telecommunications Carriers (October 30, 2005). Telecommunications Policy, Vol. 29, No. 8, 2005 . Available at SSRN: https://ssrn.com/abstract=1317892

Martha A. Garcia-Murillo (Contact Author)

Syracuse University - School of Information Studies ( email )

220 Hinds Hall
Syracuse, NY 13244
United States
(315) 443-1829 (Phone)
(315) 443-5806 (Fax)

Ian MacInnes

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States

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