Abstract
While the decade following the divestiture of the Bell System has seen an increase in the pace of competition for large local exchange telephone companies, this competition has not had a similar impact in most rural markets. This is no particular surprise, since competition for most telecommunication services has started in urban settings. In addition, regulation has insulated smaller companies from the full impact of this developing competition.2 The next ten years, however, seem poised to expand competition into local exchange markets. While the introduction of competition in the telephone industry is generally regarded as a positive development, the future of existing rural companies is not as clear.
The views and opinions of the author do not necessarily state or reflect the views, opinions, or policies of Ameritech. An earlier version of this paper was presented on october 20, 1995 at a research seminar, called “Pricing and Regulatory Innovations under Increasing Competition,” Sponsored by Rutgers’ Center for Research in Regulated Industries. I wish to acknowledge the comments of Barb Cherry and participants at the Rutgers’ seminar. Any errors continue to be those of the authors.
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Currie, K.A. (1996). Regulation, Competition and Rural Telephone Companies. In: Crew, M.A. (eds) Pricing and Regulatory Innovations Under Increasing Competition. Topics in Regulatory Economics and Policy Series, vol 24. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6249-8_11
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