Computerization has generated dra-matic advances In
telecommunica-tions, such as mobile telephones and video
conferencing. Coupled with this are major changes in regulation, as
telephone companies face new compet-itors. States are experimenting
with new forms of utility regulation and de-regulation in order to
cope with the demands of rising competition. Here Mueller examines
in detail the results of a radical telephone regulation law.
In 1986, the state of Nebraska com-pletely discarded traditional
utility reg-ulation, deregulating rates and profits of its local
telephone companies. The Nebraska experiment has become a benchmark
for reassessing the role of state regulation In the future of
tele-communications. Using comparative data from five midwestern
states, Mueller shows how deregulation af-fected rates, investment,
infrastruc-ture modernization, and profits. He uncovers both
positive and negative results. Mueller found established telephone
companies to be basically conservative, not aggressive and
ex-pansionist, and concludes that new competition, not regulation
or deregu-lation, is transforming the telecommu-nications
industry.
This book is the first systematic em-pirical study of the
controversial Ne-braska law and its broader effects. It will be a
significant addition to the much debated issue of
telecommuni-cations deregulation. Economists, pol-icymakers, and
telecommunications managers will find in this volume a substantial
resource. According to Robert Atkinson, senior vice president of
Teleport Communications Group: "Nebraska's experiences with
telecom-munications deregulation--the good, the bad and the
ugly--need to be un-derstood by all telecommunications policymakers
across the country so that they can emulate Nebraska's suc-cesses
and avoid its mistakes. Mueller provides the roadmap."
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