A Fox in the Hen House: An Evaluation of Bell Company Proposals to Eliminate Their Monopoly Position in Local Telecommunications Markets
9 Pages Posted: 18 Feb 2004
Date Written: September 2002
In this brief Policy Paper, the incentives of the Bell Companies to promote "real competition" by eliminating the Unbundled Network Element Platform as an entry mode are examined. As common sense dictates, the Bell Company anti Unbundled Network Element Platform message is not driven by a desire for "real competition," but an effort to shift competitive entry toward slower, less ubiquitous entry modes such as UNE Loop and facilities-based entry. The increase and protection of profits is the goal of the Bell Company, not the altruistic promotion of consumer benefits created by the rapid introduction of competition into the local exchange market. Policymakers, at least wise policymakers, should not ignore this fact.
Keywords: Telecommunications, Competition, Unbundling
JEL Classification: K23, L10, L50, L96, O33, 038
Suggested Citation: Suggested Citation