The Telecommunications Act of 1996: residential rates and competition [An article from: Utilities Policy]
| Read more Review. This digital document is a journal article from Utilities Policy, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.Description:
Increases in residential local telephone rates have occurred despite the passage of the Telecommunications Act of 1996. The regulators approve rate increases because the increases are deemed necessary to eliminate implicit subsidies. This paper, however, shows that residential customers are not receiving subsidies. In fact, the majority of residential customers are paying a subsidy to the carriers. The paper provides an alternative basis for determining residential rates. Finally, it discusses the fragile nature of competition and the regulatory structure that underlies the current competitive experiment.
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