What Happens When Local Phone Service is Deregulated?
Jeffrey A. Eisenach
American Enterprise Institute; NERA Economic Consulting
Kevin W. Caves
October 1, 2012
Regulation, p. 34, Fall 2012
After more than half a century of monopoly and public utility-type regulation of retail telephone rates, the United States embarked on a path of liberalization in the early 1980s. That process is now nearing completion. However, two areas of telephone service largely remain under traditional regulation: rural-area service and “basic” service. Some states, however, have moved toward deregulation in these areas as well. This paper examines the outcomes of those efforts as compared to states that maintain traditional regulation. It finds that in terms of rates and utilization, consumers in deregulated states are at least as well off as consumers in regulated states.
Number of Pages in PDF File: 8
Date posted: October 1, 2012