Competition in long-distance and telecommunications equipment markets: effects of the MFJ

Article Abstract:

Several Modification of Final Judgment (MFJ) restrictions on the regional Bell operating companies (RBOCs) have already been rescinded except for the ones on long distance and equipment markets. Analysis of the long distance or interLATA (Local Access and Transport Areas) market show that it is not competitive. Such situation is not beneficial to the residential and small business users, who make up the largest section of users. The equipment market, though more competitive in comparison, is fast growing and have many new entrants, which would deter foreclosure by a single competitor. The removal of the MFJ restrictions on the RBOCS promote competition, economic efficiency as well as improve consumer welfare.

Telecommunications equipment, Communications equipment

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The regulation of vertical relationships in the US telecommunications industry

Article Abstract:

Regulatory prescriptions usually result in hidden costs which do not get quantified until the regulations are rescinded. At the time that the line-of-business restrictions by the Modification of Final Judgment (MFJ) took effect in 1984, telecommunications equipment could be divided into distinct categories. However, a decade later, advancements in semiconductor technology have blurred the vertical distinctions. The MFJ distinctions and restrictions prohibit vertical alliances which hinder further innovations and competition in telecommunication services and equipment supplies.

Finance

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Similar abstracts:

• Abstracts: BOC manufacture of telecommunications equipment: an assessment of benefits and competitive risks. The MFJ: an imperfect solution

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