(How) do regulated prices affect competitive entry?

Abstract

Explores how in the USA the Telecommunications Act of 1996 was designed to usher in an era of competition in all telecommunications markets. In practice, the initial explosion of competitive local exchange carriers (CLECs) and an $87 billion publicly traded valuation has fallen instead to less than 200 CLECs and a value of only $4 billion; and has been beset by litigation over the Act and the cost standard for implementing the Act’s unbundling provisions. Reviews studies to date that attempt to determine the extent to which the prices for unbundled network elements (UNEs) have affected competitive entry into local exchange markets; presents new evidence and summarizes the effect of UNE policy on competitive entry.

Citation

Lehman, D.E. (2003), "(How) do regulated prices affect competitive entry?", info, Vol. 5 No. 4, pp. 20-27. https://doi.org/10.1108/14636690310495201