The effect of enhanced competition on the equity values of the regional Bell operating companies

Article Abstract:

Two developments in the local communications market have created great possibilities of new strong competitors for the regional Bell operating companies. One of these is the Federal Communications Commission (FCC) regulatory decisions that facilitate competitive entry or the application of new technologies to local communications market. Such technologies include linking fiber-optic networks with local exchange networks and wireless communication service options for local calls. The other development is the strategic expansion of AT&T, MCI and Time-Warner into the local market. The overall result of these development is a decline in the aggregate value of the RBOCs.

Finance, Telecommunications services industry, Regional Bell Operating Companies

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Deterring predation in telecommunications: are line-of-business restraints needed?

Article Abstract:

The Modification of Final Judgment (MFJ) line-of-business restraints is supposed to be a deterrent to predation in the telecommunications industry. The regional Bell operating companies (RBOCs) have been banned from providing interLATA (Local Access and Transport Area) services and from manufacturing telecommunications equipment. The restrictions are supposed to prevent them from practicing predatory pricing. Studies have revealed that this is highly unlikely, assuming that price-caps or other incentive-based regulations would be implemented and equal access would be enforced.

Analysis, Laws, regulations and rules, Deregulation, Telecommunications, Telecommunication policy, Telecommunications policy, Telecommunication

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Similar abstracts:

• Abstracts: Competition in long-distance and telecommunications equipment markets: effects of the MFJ. The regulation of vertical relationships in the US telecommunications industry
• Abstracts: Expanded competitiveness and regulatory safeguards in local telecommunications markets. Realignment in telecommunications

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