Telecom Deregulation Advances -- But Not In U.S.

Regulation Policy

Telecom Deregulation Advances -- But Not In U.S.

United States negotiators used the Telecommunications Act of 1996 to persuade the world that global competition in telecom services was inevitable, say experts. The aim of the act was open all U.S. communications markets to competition, but other countries are moving to competition faster while the U.S. falls behind.

The World Trade Organization brokered an accord based on the Telecom Act's principles that opened markets in 69 countries representing 80 percent of world telecom revenues.

Both Europe and Japan are adopting long-run incremental costs as the standard for measuring obligations of existing local monopolies for interconnection with competitors; whereas interconnection charges are still under dispute here.

Europe and Japan are also requiring significant unbundling of services by local operating companies -- lowering costs for new entrants in the marketplace.

But U.S. courts are effectively gutting the 1996 act, which may lead our trading partners to ask for sanctions against the U.S., say observers.

Analysts say Bell operating companies should agree to the same terms domestically they are promoting internationally. And the Federal Communications Commission should leave new network technologies unencumbered by the current regulatory system.

Source: Scott Blake Harris and Peter F. Cowhey, "America, the Global Telecom Laggard," Wall Street Journal, March 6, 1998.

Home | Support Us | All Issues | Social Security | Debate Central | Contact Us
Dallas Headquarters: 12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
Washington Office: 601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
© 2001 NCPA