BOC manufacture of telecommunications equipment: an assessment of benefits and competitive risks

Article Abstract:

The removal of the Modification of Final Judgment (MFJ) restrictions on the regional Bell operating companies (RBOCs) in the manufacture of equipment for telecommunications would benefit consumers. Deregulation would likely result in new and improved products as well as a more efficient methods of production. The RBOCs' technical knowledge and skill, acquaintance with consumer needs and financial resources are the sources for such consumer benefits. Highly effective regulations that can detect anticompetitive and inefficient behavior have already been developed to prevent such actions so these would not likely occur and offset the benefits.

Communications Equipment, Telecommunications Equipment, Communications Equipment Manufacturing, Telecommunications systems

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The competitive effects of line-of-business restrictions in telecommunications

Article Abstract:

The conditions that motivated the imposition of restrictions on the regional Bell operating companies (RBOCs) have changed fundamentally. Such changes are due to regulations that reduced incentives for shift costing as well as monitored and improved prevention of discrimination in provisions for network access. Analysis of trends in prices also show that the chance of cost shifting does not have much significance in 1995. Under these conditions, eliminating the remaining line-of-business restrictions would benefit the consumers rather than raise anticompetition in the industry.

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The MFJ: an imperfect solution

Article Abstract:

The Modification of Final Judgment (MJF) was promulgated to introduce and maintain competition in several markets of telecommunication where regulations through competition would be tenable. This was based on the belief that a divestiture and restriction policy was the only way for competition to grow. At the time of its inception, the MFJ was the best alternative. It answered the problem of cutting through the FCC barriers, but it did not, still is and will not be able to solve the cross-subsidy problem as regulation will always lag behind technological and market boundaries.

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