A New Era In Telecom Regulation

Finneran, Michael
July 2004
Business Communications Review;Jul2004, Vol. 34 Issue 7, p20
Trade Publication
The article focuses on telecom regulation. Telecom regulation had become the lawyers' full employment plan; at a recent Senate Commerce Committee hearing, Charles Ferguson of the Brookings Institution noted that the telecom industry now spends more on litigation and regulation than it spends on research and development. This misdirected strategy of regulating the way to competition not only adds nothing to the national infrastructure, it has created a massive disincentive to investment in new network technologies. The idea of local service resale is to make the incumbent local exchange carriers (ILECs) provide local lines to competitors at unrealistic discounts so that those competitors can then deliver the same service to customers but charge them less. The combination of digital technology to increase efficiency and an increase in the available radio spectrum made sufficient channel capacity available, and competition took care of the price problem.


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