Local transport competition in US telecommunications

Brooks B. Albery and Peter J. Grandstaff

Telecommunications Policy, 1989, vol. 13, issue 4, 355-362

Abstract: Local transport in US telecommunications, the movement of long-distance traffic between local exchange and interexchange carriers, is becoming more competitive. The introduction of competition into regulated markets has predictable consequences such as driving prices towards costs, eliminating cross subsidies, increasing efficiency, increasing product diversity and accelerating the rate of innovation. After surveying institutional developments and alternative definitions of competition, the authors investigate the extent to which the predicted developments of deregulation are found in the case of local transport. Evidence of increasing competition is found and it is suggested that regulatory policy should take this into account.

Date: 1989
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